Swiss Prime Site Ag U/Adr

Welcome to the Swiss Prime Site Half-Year 2026 Earnings Conference.

The presentation will be followed by a Q&A session. For those of you who have joined the Zoom webinar, you can use the raise hand function at the bottom of your Zoom screen at any time to join the queue to ask a question, and you'll be called upon during the Q&A session. I'll now hand over to your host, Marcel Kuecher, CEO of Swiss Prime Site.

A very warm welcome here from the 34th floor on Prime Tower. A very warm welcome in the name of Anastasios Chopp, who's here with me, Martina Mosman, and we also have Karin Vogt here, our CIO for our own portfolio. What we're going to do today is we'll have a short presentation on our half-year results through 2026, followed then by Q&A. And then afterwards, we let you go into a beautiful day here in Zurich. To start with, the key messages. Overall, we had a successful first year, 2026, with a very strong operating performance, and we continue to see attractive growth momentum. We see that in our own portfolio with a strong leasing momentum. Most importantly, Alto Port Rouge is now fully leased. With a strong demand at Fra Munster Post, we are still finishing up the renovation, driven by AI companies and major lease extensions here at the Prime Tower and other campuses across our portfolio. Second element here, we achieved very important development milestones. The first one here, for sure, is the mock halls in Zurich, but also Alte Fing, and I'll talk more about that later on. Further, the portfolio quality enhanced through the disposals of 167 million of smaller, mostly retail assets. Those were five assets which we already sold last year, but they closed now in the first half of 2026. Despite those sales, our rental income was up 2.2%. Including the sales, it would have been more or less double it, 4.5%, driven in particular by prior year acquisitions from our capital increase, the positive lease reversion and development that are going online. Like-for-like growth stood on a real basis, roughly unchanged at 1.3%, including inflation. It was at 1.4%, showing kind of the low impact the current low inflation environment has on our rents. And finally, portfolio value exceeded for the first time in our history, 14 billion. That's up 0.6%. And that is despite the disposals that I just mentioned before. 148 million of revaluation gains, driven mostly by the rental growth I mentioned, by cost discipline. and 2bibs slower discount rates, 148 million represent roughly a 1.1% revaluation on last year's final results. On the asset management side, very positive momentum that we see here with a record new money of almost 1 billion Swiss francs, 950 to be precise, lifting up our AUMs to 14.8 billion. And as I mentioned, demonstrating the continued strong growth momentum. Those billion in net new money was composed by three elements. The first one was 0.3 billion in total capital increases from our product of ACARA and IFC. 0.2 billion of drawdowns of commitments from fundamental products, as well as then an acquisition of a new mandate, a major Swiss pension fund of 0.4 billion. and somewhat reduced by the disposal of 0.3 billion 300 million of promotions which were finished and hence left the AUM of our asset management business. together with the underlying kind of income that drove revenues up 5.2% with the higher AUM and the sustained transaction activities. We'll talk more about that in a minute. And given the further cost discipline, with in particular efficiency gains, that we could reach EBITDA margins slightly increased to 65%. And the last element on the Swiss Prime Site Group, we refinanced our outstanding convertible bond at the 0% interest rates for six years and a very attractive initial conversion price of almost 180 Swiss francs, helping to reduce our average cost of debt to roughly 83 bps for the half year. then you'll see her in a minute in more detail Martina Mosman joined us as new Group CFO and hence you know completing our Executive Board Meeting as of April 15th and the last one not the least but the very important one we are now among the top 10 most sustainable real estate firms worldwide with a rating upgrade of ISS stocks ESG ratio to be minus from C plus last year, making us very proud to be among the top 10 property firms worldwide. Some elements on the numbers. Operating leverage drives our profitability. I mentioned most of them here. Rental income is up 2.2%, at 1.4% on a like-for-like basis, despite the sales that I mentioned. Fee income, 5.2%, up to 40 million. And that leaves us with an EBITDA contribution, which is up almost 5% to 209 million, roughly. and the net profit of 165.7 million, up 6%. More importantly, even FFO1 per share, up 2.4% to 2.15, a record level in our history, and EPS per share also up roughly 5% at 2.07%. Having said that, we confirm our guidance for all the four elements that we said. On the FFO1, we do expect that we end up at the upper range of the 425 to 430 range that we guided already in February. Before we dive into the details on the finances, let me give you a little bit of background on the environment that we're operating here in Switzerland. I want to do that along four dimensions. First one, transactions. The Swiss market in general is a very supportive and constructive market, given the very robust economy that we have in Switzerland, the still available growth that we can provide here in and GDP, as well as obviously our low interest and inflation environment that continues to support the real estate market. We see hence a large number of transactions, which is a positive element. On the other hand, we also see further yield compression here. So finding the right real estate at attractive rates is continuing to be a challenge. Hence, for us, the conclusion is we need to be disciplined going forward in such a strong market. And obviously, given our size and the continued growth that we have through our portfolio, we can also do that. On the letting side, we see strong momentum. I mentioned a number of the elements in Geneva, but also here in Zurich already. We see in particular, of course, the demand for office space on the high quality, very centrally located locations that is thriving. And we also see that supported by some structural trends supported by AI, which we believe will reinforce this shift. Rent levels also remain where we planned them to be. And in some cases, we could even get higher rents than also our evaluator expected. That is the part that you see reflected then in the V-valuations. That brings me to the third element, the valuation. We also have here, obviously, the positive and constructive environment with a low inflation rate and the low interest, fostering a good environment within Switzerland. Both the nominal and the real discounts rate you see compressed in Switzerland, not only for our own portfolio, but we also, as I mentioned before, see that in the transactions. And you also see it in the disposal gains that we had with about 4.2% gain versus the book value at the end of the year, hence confirming the attractive investment environment in Switzerland. And last but not least, fund flows. I mentioned the record inflow of almost 1 billion before. That is also driven by the attractive environment that we have given our interest rates, but also by the pressure of, in particular, pension funds to invest their money inflows into stable yielding assets. And hence, we see an elevated allocation to real estate, in particular, residential real estate, which benefits our asset management business here. So here again, continued focus on growing our asset management franchise as we have done in the first half year. With those introductory remarks, I will hand over to Martina to provide you with more details on the first half year from a financial perspective.