Q2 2026 Swiss Prime Site AG Earnings Call

August 20, 2026

Speaker #1: 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.

Operator: 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 Kucher, CEO of Swiss Prime Site.

Speaker #1: I'll now hand over to your host, Marcel Kucher, CEO of Swiss Prime Site.

Marcel Kucher: A very warm welcome here from the 31st floor on Prime Tower. Very warm welcome in the name of Anastasios Tschopp, who's here with me, Martina Moosmann, and we also have Karin Voigt here, our CIO for our own portfolio. What we're going to do today is we'll have a short presentation on our H1 results through 2026, followed then by Q&A. 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 Pont-Rouge is now fully leased.

Speaker #2: A very warm welcome here from the 34th floor on Prime Tower. I'm very warm welcome in the name of Anastasios Chop, who's here with me, Martina Mosman, and we also have Karin Vogt here, our CIO for our own portfolio.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: We see that in our own portfolio with a strong leasing momentum, most importantly Alto Boruge is now fully leased, with a strong demand that from Münsterpost we're still finishing up the renovation driven by AI companies, and major lease extensions here at the Prime Tower and other campuses across our portfolio.

Marcel Kucher: With a strong demand at Fraumünsterpost, 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 Markthalle in Zurich, but also Alping and I'll talk more about that later on. Further, the portfolio quality enhanced through the disposals of CHF 167 million of smaller, mostly retail assets. Those were five assets which we already sold last year, but they closed now in the H1 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.

Speaker #2: Second element here we achieved a very important development milestone, the first one here for sure is the Markhaus in Zurich, but also Altolfing and I'll talk more about that later on.

Speaker #2: 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.

Speaker #2: 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 a prior year acquisitions from our capital increase, depositive lease reversion and development that are going online.

Speaker #2: 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.

Marcel Kucher: Like-for-like growth stood on a real basis, roughly unchanged at 1.3%. Including inflation, it was at 1.4%, showing the low impact the current low inflation environment has on our rents. Finally, portfolio value exceeded for the first time in our history, CHF 14 billion. That's up 0.6%. That is despite the disposals that I just mentioned before. CHF 148 million of revaluation gains, driven mostly by the rental growth I mentioned, by cost discipline and two bits lower discount rates. CHF 148 million represent roughly 1.1% revaluation on last year's final result. On the asset management side, very positive momentum that we see here with a record net new money of almost CHF 1 billion, 950 to be precise, lifting up our AUMs to CHF 14.8 billion. As I mentioned, demonstrating the continued strong growth momentum. Those billion in net new money was composed by three elements.

Speaker #2: 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.

Speaker #2: 180 48 million of revaluation gains, driven mostly by the rental growth I mentioned, by cost discipline and two bibs slower discount rates, 148 million represent roughly 1.1% revaluation on last year's final results.

Speaker #2: 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, you know this demonstrating the continued strong growth momentum.

Speaker #2: 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 Aqara and IFC, 0.2 billion of drawdowns of commitments from fundamental products, as well as then an acquisition of a new mandate, 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.

Marcel Kucher: The first one was CHF 0.3 billion in total capital increases from our product of Akara and IFC. CHF 0.2 billion of drawdowns of commitments from Fundamenta products, as well as then an acquisition of a new mandate, a major Swiss pension fund of CHF 0.4 billion, and somewhat reduced by the disposal of CHF 0.3 billion, 300 million of promotions, which were finished and hence left the AUM of our asset management business. Together with the underlying income that drove revenues up 5.2% with a higher AUM and the sustained transaction activities. We will talk more about that in a minute. Given the further cost discipline, with in particular efficiency gains, that we could reach EBITDA margin slightly increased to 65%. The last element on the Swiss Prime Site group.

Speaker #2: Together with the underlying kind of income that drove revenues up 5.2%, with a higher AUM and a 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 margin slightly increased to 65%.

Speaker #2: And the last element on the Swiss Prime Site group, we refinanced our outstanding convertible bond at the 0% interest rate for 6 years and at very attractive initial conversion price of almost 180 Swiss francs, helping to reduce our average cost of debt to roughly 83 bibs for the half year.

Marcel Kucher: We refinanced our outstanding convertible bond at the 0% interest rates for six years, and a very attractive initial conversion price of almost CHF 180, helping to reduce our average cost of debt to roughly 83 basis points for the H1. You will see her in a minute in more detail. Martina Moosmann joins us as new group CFO, and hence, completing our executive board meeting as of 15 April. 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 ESG ratio to B- from C+ 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.

Speaker #2: Then you'll see here 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.

Speaker #2: 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+ last year, making us very proud to be among the top 10 property firms worldwide.

Speaker #2: 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.

Marcel Kucher: 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 CHF 40 million. That leaves us with an EBITDA contribution, which is up almost 5% to roughly CHF 209 million, and the net profit of CHF 165.7 million up 6%. More importantly, even FFO1 per share up 2.4% to CHF 2.15, a record level in our history. EPS per share also up roughly 5% at CHF 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 CHF 425 to CHF 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 are operating here in Switzerland.

Speaker #2: 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%.

Speaker #2: More importantly, even FFO1 per share up 2.4% to 2 francs 15, a record level in our history, and EPS per share also up roughly 5% at 207.

Speaker #2: 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 2, the 425 to 430 range that we guided already in February.

Speaker #2: 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.

Speaker #2: 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 GDP, as well as obviously our low interest and inflation environment that continues to support the real estate market.

Marcel Kucher: 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. There is still available growth that we can provide here in 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. Obviously given our size and the continued growth that we have through our portfolio, we can also do that. On the lettings side, we see strong momentum.

Speaker #2: 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 adds attractive rates is continuing to be a challenge.

Speaker #2: Hence, for us, the conclusion is, you know, 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.

Speaker #2: 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.

Marcel Kucher: 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. 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 revaluations. That brings me to the third element, the valuation. We also have here, obviously the positive and constructive environment with the low inflation rate and the low interest, fostering a good environment within Switzerland.

Speaker #2: And we also see that supported by some structural trends supported by AI, which we believe will, you know, reinforce this shift. Rent levels also remain where we planned them to be, and in some cases we could even, you know, get higher rents than also our valuator expected that is the part that you see reflected then in the valuations.

Speaker #2: That brings me to the third element, the valuation. We also have here obviously the positive and constructive environment with the low inflation rate and the low interests, fostering a good environment within Switzerland.

Marcel Kucher: Both the nominal and the real discount rate you see compressed in Switzerland, not only for our own portfolio, but we also, as I mentioned before, see that in the transactions. 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. Last but not least, fund flows. I mentioned the record inflow of almost CHF 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. Hence we see an elevated allocation to real estate, in particular residential real estate, which benefits our asset management business here.

Speaker #2: Both the nominal and the real discount rates 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.

Speaker #2: 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.

Speaker #2: 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 benefit our asset management business here.

Speaker #2: So here again, you know, 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.

Marcel Kucher: Here again, continued focus on growing our asset management franchise as we have done with the H1. With those introductory remarks, I will hand over to Martina to provide you with more details on the H1 from a financial perspective.

Speaker #1: Thank you, Marcel. It's my great pleasure to be here and to present Swiss Prime Site's first half 2026 numbers to you. In particular, since they're really strong.

Martina Moosmann: Thank you, Marcel. It's my great pleasure to be here and to present Swiss Prime Site's H1 2026 numbers to you, in particular, since they are really strong. Our dual strategy continues to translate to sustainable numbers. In our real estate portfolio, we focus on investing in commercial buildings in prime locations. In our second leg, the asset management segment, we invest predominantly in residential properties for institutional investors. In the H1 2026, we grew revenues in both businesses, and coupled with our cost discipline across the platform, we landed a higher operating profit. Let's dive in. On slide 8, we break down the revenues, the top line for you. Rental income from our properties, our dominant source of income came in at CHF 231 million, a nice 2.2% growth compared to the H1 last year.

Speaker #1: Our dual strategy continues to translate to sustainable numbers. In our real estate portfolio, we focus on investing in commercial buildings in prime locations. In our second leg, the asset management segment, we invest predominantly in residential properties for institutional investors.

Speaker #1: In the first half 2026, we grew revenues in both businesses and coupled with our cost discipline across the platform, we landed a higher operating profit.

Speaker #1: Let's dive in. On slide 8, we break down the revenues, the top line for you. Rental income from our properties our dominant source of income came in at 231 million, a nice 2.2% growth compared to the first half last year.

Speaker #1: The drivers were successful renewals with existing tenants, first-time lettings of completed developments, as well as acquisitions from last year. Somewhat offset by the sale of five properties as part of our continued capital recycling strategy execution.

Martina Moosmann: The drivers were successful renewals with existing tenants, first time lettings of completed developments, as well as acquisitions from last year. Somewhat offset by the sale of 5 properties as part of our continued capital recycling strategy execution. Let me give you a few examples for lease extensions. Here in the Prime Tower building, we were able to extend leases with significant existing tenants like Homburger after 15 years for another 15 years. This not only underpins the quality of our buildings, but also our focus on the positive experience working on Swiss Prime Site campuses. In Geneva, Marcel already mentioned that we fully let Alto Pont-Rouge building, and with JPMorgan, we were able to attract a sizable new tenant for the group. On the asset management business, we grew 5.2% to CHF 40 million. This reflects the sustained demand from institutional investors.

Speaker #1: Let me give you a few examples for these extensions. Here in the Prime Tower building, we were able to extend leases with significant existing tenants like Homburger, after 15 years for another 15 years.

Speaker #1: This not only underpins the quality of our buildings, but also our focus on the positive experience working on Swiss Prime Site campuses. In Geneva, Marcel already mentioned that we fully let Alton Pont Rouge building and with JP Morgan were able to attract a sizable new tenant for the group.

Speaker #1: On the asset management business, we grew 5.2% to 40 million. This reflects the sustained demand from institutional investors. The earnings composition is a healthy balance of recurring fees, an increased asset under management, and transaction-based commissions.

Martina Moosmann: The earnings composition is a healthy balance of recurring fees and increased Assets Under Management, and transaction-based commissions. On a comparable basis, the operating income for the group increased by 3.4% and stands at CHF 270 million as of 30 June. Comparable in this context means excluding the effects of the discontinued retail operation, as well as other Jelmoli related income that was still included in the H1 2025. Our operating expenses, on a comparable basis, contracted by 3.4% and stood at CHF 64 million. This illustrates our focus on costs and the effect of efficiency gains throughout our scalable platform. When we turn to slide 10, where we wrap up. We have already looked at operating income and expenses. This leaves revaluations as the remaining building block for our earnings. On an IFRS basis, the appraisal by Wüest Partner arrived at an increase of CHF 148 million.

Speaker #1: On a comparable basis, the operating income for the group increased by 3.4% and stands at 270 million as of June 30. Comparable in this context means excluding the effects of the discontinued retail operation as well as other Yell-Molly related income that was still included in the first half of 2025.

Speaker #1: Our operating expenses on a comparable basis contracted by 3.4% and stood at 64 million. This illustrates our focus on costs and the effect of efficiency gains throughout our scalable platform.

Speaker #1: When we turn to slide 10, where we wrap up, we have already looked at operating income and expenses. This leaves revaluations as the remaining building block for our earnings.

Speaker #1: On an IFRS basis, the appraisal by Wüst & Partner arrived at an increase of 148 million. As Marcel already mentioned, this is 1.1%. No surprises on the drivers.

Martina Moosmann: As Marcel already mentioned, this is 1.1%. No surprises on the drivers. Rental growth, low operating costs, as well as a 2 basis point lower discount rate. Adding the higher top line, lower costs, and the revaluation gain, we were able to grow EBIT by remarkable 20%. Our EBITDA of around CHF 208 million represents an increase of 4.4% over the same period last year. This is excluding revaluations and sales, a strong demonstration of our resilient business model and operating power. Wrapping up the group numbers on slide 11. FFO1, our main KPI for operating performance, increased by 2.4% to CHF 2.15 per share. This reflects our operating leverage, higher earnings, as well as lower financing costs.

Speaker #1: Rental growth, low operating costs, as well as a two basis point lower discount rate. Adding the higher top line, lower costs, and the revaluation gain, we were able to grow EBIT by remarkable 20%.

Speaker #1: Our EBITDA of rounded 208 million represents an increase of 4.4% over the same period last year. This is excluding revaluations and sales, a strong demonstration of our resilient business model and operating power.

Speaker #1: Wrapping up the group numbers, on slide 11, FFO1, our main KPI for operating performance increased by 2.4% to 2 francs 15 per share. This reflects our operating leverage higher earnings as well as lower financing costs.

Speaker #1: The issuance of the 0% convertible in combination with the early redemption of the deep in the money convertible supports our guidance for the full year at the upper end of the communicated range of 4.25 to 4.30 per share.

Martina Moosmann: The issuance of the 0% convertible, in combination with the early redemption of the deep in-the-money convertible, supports our guidance for the full year at the upper end of the communicated range of CHF 4.25 to CHF 4.30 per share. Now, let's dive a bit deeper into the segments, starting with the rent walk, our dominant source of income, which we show on slide 12. I start left to right. Compared to last year, we sold 13 properties with a corresponding rental income of CHF 4.5 million. A similar number of buildings, including Jelmoli, are undergoing redevelopment and are temporarily offline. In the same period, we added CHF 6.4 million from the acquisitions last year, 4 buildings in total, and successfully let new buildings yielding CHF 3.8 million. Organically, we achieved additional CHF 2.4 million from existing properties through rent reversion. Thereof, only a small contribution from indexations.

Speaker #1: Now let's dive a bit deeper into the segments starting with the rent walk, our dominant source of income which we show on slide 12.

Speaker #1: Compared to last year, I start left to right. Compared to last year, we sold 13 properties with a corresponding rental income of 4.5 million.

Speaker #1: A similar number of buildings including Yell-Molly are undergoing redevelopment and are temporarily offline. In the same period, we added 6.4 million from the acquisitions last year, four buildings in total, and successfully let new buildings yielding 3.8 million.

Speaker #1: Organically, we achieved additional 2.4 million from existing properties through rent reversion thereof only a small contribution from indexations. Marcel already talked quite a bit about the like for like where we currently without indexations stand at 1.3, sorry, without inflation stand at 1.3%.

Martina Moosmann: Marcel already talked quite a bit about the like-for-like, where we currently, without inflation, stand at 1.3%. Now, we move on from our real estate to the second pillar, the asset management business. Driven by continued strong capital inflows, almost CHF 1 billion in the H1, our overall asset management fees increased to CHF 40 million, a 5.2% growth. This is more than double what we are seeing on the real estate business side, confirming Swiss Prime Site Solutions positions as the group's growth engine. Management and transaction fees were up 9% and 8% respectively, with 71% thereof recurring income. Again, the resilience of our earnings base remained high despite the elevated transaction activity that we see, and we expect more to come in the H2.

Speaker #1: Now we move on from our real estate to the second pillar, the asset management business. Driven by continued strong capital inflows, almost 1 billion in the first half, our overall asset management fees increased to 40 million, a 5.2% growth.

Speaker #1: Which is more than double what we're seeing on the real estate business side, confirming Swiss Prime Site Solutions' position as the group's growth engine.

Speaker #1: Management and transaction fees were up 9% and 8% respectively, with 71% thereof recurring income. Again, the resilience of our earnings base remained high despite the elevated transaction activity that we see.

Speaker #1: And we expect more to come in the second half. At the same time, our focus on costs and efficiency gains allowed us to benefit from further economies of scale across the whole platform for the group.

Martina Moosmann: At the same time, our focus on costs and efficiency gains allowed us to benefit from further economies of scale across the whole platform for the group. Personnel costs in the asset management segment were down 16%, and real estate costs lower by 6%. As a result, the EBITDA is up 9% to CHF 26 million for the H1, and the EBITDA margin stands at 65%, which is a 2.1 percentage point increase compared to last year. Moving to the balance sheet on slide 14, where we walk the balance sheet numbers. Since year-end, we sold five properties for a fair value of around CHF 867 million. Those were mostly in secondary cities and are part of our portfolio consolidation and quality improvement, optimizing size and location of our assets, 127 altogether at 30 June. Marcel will give you more tangible insights in some of the buildings in just a minute.

Speaker #1: Personal costs and the asset management segment were down 16% and real estate costs lower by 6%. As a result, the EBITDA is up 9% to 26 million for the first half and the EBITDA margin stands at 65%, which is a 2.1 percentage point increase compared to last year.

Speaker #1: Moving to the balance sheet, on slide 14, where we walk the balance sheet numbers. Since year end, we sold five properties for a fair value of rounded 167 million.

Speaker #1: Those were mostly in secondary cities and are part of our portfolio consolidation and quality improvement optimizing size and location of our assets. 127 altogether at June 30.

Speaker #1: Marcel will give you more tangible insights in some of the buildings in just a minute. We invested close to 100 million in our ongoing development projects, mainly Yell-Molly from Münsterpost and Jont.

Martina Moosmann: We invested close to CHF 100 million in our ongoing development projects, mainly Jelmoli, Fraumünsterpost, and Yond. The work on those is progressing in line with plan. On a personal note, and for those of you who will join us at the Capital Markets Day, for me, it is always a highlight to visit one of the buildings and the construction site and have the smell of concrete and wood, and I trust you will enjoy that with us. Our appraisers, Wüest Partner, derived a valuation result of CHF 152 million for the H1, where the building blocks are a significantly lower property management cost due to a new master agreement that we closed, higher signed rental agreements, and of course, the two basis point decline in average discount rate also helped us with the valuation.

Speaker #1: The work on those is progressing in line with plan. On a personal note, and for those of you who will join us at the capital markets day, for me it's always a highlight to visit one of the buildings and the construction site and have the smell of concrete and wood.

Speaker #1: And I trust you'll enjoy that. With us. Our appraisers, Wüst & Partner, derived a valuation result of 152 million for the first half, where the building blocks are a significantly lower property management cost due to a new master agreement that we closed.

Speaker #1: Higher signed rental agreements and of course the two basis point decline in average discount rate also helped us with the valuation. For the first time, the aggregate portfolio value hit 14 billion, which is an increase of 0.6% since year end.

Martina Moosmann: For the first time, the aggregate portfolio value hit CHF 14 billion, which is an increase of 0.6% since year-end. I will conclude my comments with the liability portfolio, which is one of my focus areas in my role here. Swiss Prime Site. Oh, one too much. How do I go back? Okay. Swiss Prime Site diversified financing base continues to be well-positioned to support our growth ambition in line with the Moody's A3 parameters, something that is important to us. We managed to lower our average interest rate to 83 basis points, which is year-on-year an 11 basis point decline. And we also were able to slightly extend the average maturity to four years. Based on my almost three decades of perspective on funding markets, I label this very attractive. Mainly due to the dividend payment in March, LTV of 39.9% is slightly elevated above guidance.

Speaker #1: I will conclude my comments with the liability portfolio, which is one of my focus areas in my role here. Swiss Prime Site How do I go back?

Speaker #1: Okay. Swiss Prime Site diversified financing base continues to be well positioned to support our growth ambition in line with the Moody's A3 parameters. Something that's important to us.

Speaker #1: We managed to lower our average interest rate to 83 basis points, which is year on year an 11 basis point decline. And we also were able to slightly extend the average maturity to four years.

Speaker #1: Based on my almost three decades of perspective on funding markets, I label this very attractive. Mainly due to the dividend payment in March, LTV of 39.9% is slightly elevated above guidance.

Martina Moosmann: We are confident to be back below 39% by year-end. Please also note that last year's LTV included the not yet deployed capital increase we did in the H1. Our funding pockets are diversified with sizable committed syndicated loan facilities, a growing debt capital markets franchise across Swiss franc, euro, and convertible markets, complemented by efficient short-term programs. The temporarily increased utilization of our unsecured loan facilities that you see in the numbers here, includes partial funding of bond maturities as well as dividend funding. As of 30 June, we have dry powder in excess of CHF 700 million from our committed credit lines. Within our well-established Swiss franc bond market franchise, we issued two green bonds in the H1, CHF 130 million with a six-year tenor and CHF 100 million with seven years to maturity, extending our maturity profile at attractive spread levels.

Speaker #1: We're confident to be back below the 39% by year end. Please also note that last year's LTV included the not yet deployed capital increase we did in the first half.

Speaker #1: Our funding pockets are diversified with sizable committed syndicated loan facilities. A growing debt capital markets franchise across Swiss Frank, Euro, and convertible markets. Complemented by efficient short-term programs.

Speaker #1: The temporarily increased utilization of our unsecured loan facilities that you see in the numbers here includes partial funding of bond maturities as well as dividend funding.

Speaker #1: As of June 30, we have dry powder in excess of 700 million from our committed credit lines. Within our well-established Swiss Frank bond market franchise, we issued two green bonds in the first half, 130 million with a six-year tenure and 100 million with seven years to maturity.

Speaker #1: Extending our maturity profile at attractive spread levels. In March, we issued a 350 million zero coupon convertible and concurrently redeemed the deep in the money 275 million convertible, the transaction locked in significantly lower interest costs.

Martina Moosmann: In March, we issued a CHF 350 million zero coupon convertible and concurrently redeemed the deep in the money CHF 275 million convertible. The transaction locked in significantly lower interest costs. We spoke about that already. We also settled the redemption in cash, thereby avoiding dilution. The zero coupon saw strong investor appetite, was heavily oversubscribed, and multiple investors from the old convertible flipped into the new one, which illustrates the continued capital market support for Swiss Prime Site. As of 14 July, the old convertible is completely redeemed, so that is history. With this, I stop and hand back to Marcel.

Speaker #1: We spoke about that already. And we also settled the redemption in cash, thereby avoiding dilution. The zero coupon saw strong investor appetite. Was heavily oversubscribed.

Speaker #1: And multiple investors from the old convertible flipped into the new one, which illustrates the continued capital market support for Swiss Prime Site. As of July 14th, the old convertible is completely redeemed.

Speaker #1: So that is history. And with this, I stop and hand back to Marcel.

Speaker #2: Thank you so much. For the last remaining couple of pages before we turn to Q&A, I would love to deep dive a little bit into the business and give you some more updates on our properties.

Marcel Kucher: Thank you so much. For the last remaining couple of pages before we turn to Q&A, I would love to deep dive a little bit into the business and give you some more updates on our properties and our portfolio. Let's start with an overview page on our locations, the composition of our portfolio, as well as the quality of our buildings. As you can see, we are continuing to focus on the core Swiss cities with close to 60% now invested in Zurich, roughly 20% in the Lake Geneva area, with a large proportion, obviously, in Geneva itself and the remaining in Lausanne, then Basel, and followed by Bern. The sale of the properties that we have already mentioned now before, the five properties further focused us on these four prime Swiss locations. The sale also changed slightly the portfolio composition.

Speaker #2: And our portfolio. Let's start with an overview page. On our locations, the composition of our portfolio as well as the quality of our buildings.

Speaker #2: As you can see, we are continuing to focus on the course with cities, with close to 60% now invested in Zurich, roughly 20% in the Lake Geneva area with a large proportion obviously in Geneva itself and the remaining in Lausanne.

Speaker #2: Then Basel and followed by Bern. The sale of the properties that we have already mentioned now before the five properties further kind of focused us on these four primes with locations.

Speaker #2: The sale also changed slightly the portfolio composition. You see we have a slight increase of roughly 1% in the office focus as we mentioned before.

Marcel Kucher: You see we have a slight increase of roughly 1% in the office focus, as we mentioned before, sold mostly in the secondary location retail. Hence that comes at an expense of the retail allocation, which is now slightly below 20%. Finally, and we are very proud on that, our quality of our buildings. We are now 100%, pretty much, rounded at least, in the best locations of Switzerland. Given the last five sales that we did, 88% are in the top quadrant. So best quality of the building and best quality of the location. For 12%, we can still work on the quality of the building, and that's what our development focus is focusing on. I mentioned the lease momentum already before and the improved vacancy. We are on an operational perspective currently at a vacancy rate level of 3.2%.

Speaker #2: Sold mostly in the secondary location retail and hence that comes at an expense of the retail allocation, which is now slightly between below the 20%.

Speaker #2: And finally, and we're very proud on that, our quality of our buildings we are now 100% pretty much rounded at least. In the best locations of Switzerland, given the last five sales that we did, 88% are in the top quadrant.

Speaker #2: So best quality of the building and best quality of the location. And for 12%, we can still work on the quality of the building.

Speaker #2: And that's what our development focus is focusing on. I mentioned the lease momentum already before. And the improved vacancy we are on an operational perspective currently at an vacancy level of 3.2%.

Speaker #2: We have roughly 0.5% of our portfolio that we leave empty because those are earmarked for further developments. Going forward, giving us an overall 3.7% vacancy rate with a guidance that we will end up slightly lower at year end.

Marcel Kucher: We have roughly 0.5% of our portfolio that we leave empty because those are earmarked for further developments going forward. Giving us an overall 3.7% vacancy rate with a guidance that we will end up slightly lower at the year-end. We mentioned some of the new tenants already, in particular in Alto Pont-Rouge, in Fraumünsterpost where we see very strong demand, in particular from global leading AI companies. 50% of the office space is already let here, and for the rest we have very strong demands, including some LOIs. Again, as I mentioned, mostly from technology companies with a strong AI focus, showing that we can also benefit from that trend here, in particular in Zurich, where a lot of the global AI companies are building up further capacity and expertise.

Speaker #2: We mentioned some of the new tenants already in particular in Altobon Rouge. In Framünsterpost, where we see very strong demand in particular from global leading AI companies.

Speaker #2: 50% of the office space is already led here and for the rest we have very strong demands including some LOIs again as I mentioned mostly from technology companies with a strong AI focus.

Speaker #2: Showing that we can also benefit from that trend here in particular in Zurich where a lot of the global AI companies are building up further capacity and expertise.

Speaker #2: And finally, an interesting one you might have seen that in the newspaper is for the remaining part of the sticky park we are planning to reposition that part into a mixed use office slash operational element and assigned respective contract with the Swiss customs.

Marcel Kucher: Finally, an interesting one you might have seen that in the newspaper, is for the remaining part of the Stücki Park. We are planning to reposition that part into a mixed-use office/operational element and signed a respective contract with the Federal Office for Customs and Border Security. The Federal Office for Customs and Border Security would then fill up the remaining of Stücki Park and complete the redevelopment that we did over the last couple of years. We also talked at the contract extensions. Most importantly here, Homburger, one of the first tenants for Prime Tower, will stay another 15 years in the Prime Tower, which we're very proud of to host such a reputable law company here. As Martina mentioned before, underscoring the attractiveness of our campuses in Zurich and beyond.

Speaker #2: So the Swiss Eidgenossenschaft that would then fill up the remaining of sticky park and complete kind of the redevelopment that we did over the last couple of years.

Speaker #2: We also talked at the contract extensions most importantly here Homburg one of the first tenants for Prime Tower will stay another 15 years. In the Prime Tower which we're very proud of to host such an reputable law company here.

Speaker #2: And as Martina mentioned before underscoring kind of the attractiveness of our campuses in Zurich and beyond. We are also proud that we have Medartis extend its rent in sticky park in Basel and also with Swisscom we could extend several of the leases on our discussion for several others going forward.

Marcel Kucher: We're also proud that we have Midartis extend its rent in Stücki Park in Basel, and also with Swisscom we could extend several of the leases and are in discussion for several others going forward. That drives the average WALT to a record high for us, 5.7 years, showing the long-term approach that we're taking and our tenants are taking. Some words on our developments, and I will only focus here on these two as we will show the remainder during our Capital Markets Day in life and color. The first one is here, the MOX site. We communicated a couple of weeks ago that we signed an LOI with the University of Zurich with the goal of having here a very large and interesting cultural destination at the Prime Tower area with a Museum of Natural History taking the place as of 2033, 2032, 2033, roughly timeframe.

Speaker #2: That drives the average Walt to a record high for us 5.7 years showing kind of the long-term approach that we're taking and our tenants are taking.

Speaker #2: Some words on our developments and I will only focus here on these two as we will show the remainder during our capital markets day in live and color.

Speaker #2: The first one is here the Marksite we communicated a couple of weeks ago that we signed an LOI with the University of Zurich with the goal of having here a very large and interesting cultural destination.

Speaker #2: At the Prime Tower area with the Museum of Natural History taking the place as of 2023, 2033, 2032, 2033 roughly timeframe. We are working hard currently on doing all the preparatory works so that we can start with the building permit.

Marcel Kucher: We are working hard currently on doing all the preparatory work so that we can start with the building permit. We do expect investments of roughly CHF 60 million. That should start somewhere in the end of 2029. As I said, handover then to the university should be end of 2031. Leaving the university another one and a half to two years to do their fit outs in order to completely complete this into a museum. We do believe this is going to be a major milestone not only for the MOX site here and the entire Prime Tower campus, but also for Zurich. It's one of the museums that attracts most people, currently more than half a million.

Speaker #2: We do expect investments of roughly 60 million that should start somewhere in the end of 2029. And as I said handover then to the university should be end of 2031 and leaving the university another one and a half to two years to do their fit out in order to complete this into a museum.

Speaker #2: We do believe this is going to be a major milestone not only for the Marksite here and the entire Prime Tower campus but also for Zurich.

Speaker #2: It's one of the museums that attracts most people currently more than half a million and given that the potential here for the university is to more than double its space we expect to have even more people spread around the day really making this whole campus even more lively than it already is.

Marcel Kucher: Given that the potential here for the University of Zurich is to more than double its space, we expect to have even more people spread around the day, really making this whole campus even more lively than it already is. A second one that we are very proud of is we were able to attract Hitachi Energy, one of the leading technology companies in Switzerland, to choose the Oerlikon site as their future base for the production in Switzerland, where they will consolidate several locations by 2030. In the full extension, we expect roughly 1,200 employees there, and they will use more than 70,000 of usable floor space, including the heritage-protected building. You see that here, the large middle building here, that used to be the former distribution center of Jelmoli when Jelmoli was still a large Swiss group. You also see some new builds in the back.

Speaker #2: A second one that we're very proud of is we were able to attract Hitachi Energy one of the leading technology companies in Switzerland to choose the Ottelfingen site as their future base for the production in Switzerland.

Speaker #2: Where they will consolidate several locations by 2030. In the full kind of extension we expect roughly 1,200 employees there and they will use more than 70,000 of usable floor space including the heritage protected building you see that here the large middle building here that used to be the former distribution center of Yale Moly when Yale Moly was still a large Swiss group.

Speaker #2: You also see some new builds in the back so that includes also some space that is available on the site still to build really specific buildings for Hitachi Energy and their construction needs.

Marcel Kucher: That includes also some space that is available on the side still to build really specific buildings for Hitachi Energy and their construction needs. Given the specificity of those buildings, we felt we are no longer the optimal owner for the building, and hence, 2 days ago, signed a sale contract with Hitachi Energy. We will hand over the building roughly at the end of 2027, subject to the building permit, so that Hitachi can then immediately start working on the new builds before they move in. This is a major milestone because it does provide this site a new life for the next 50 years, and we are very proud to be able to work together with Hitachi Energy to achieve that. As I mentioned, going back maybe one step, the others are progressing on plan.

Speaker #2: And given the specificity of those buildings we felt we are no longer the optimal owner for the building and hence two days ago signed sale contract with Hitachi Energy.

Speaker #2: We'll hand over the building roughly at the end of 2027 subject to the building permit so that Hitachi can then immediately start working on the new builds before they move in.

Speaker #2: This is a major milestone because it does provide this site a new life for the next 50 years. And they're very proud to be able to work together with Hitachi Energy to achieve that.

Speaker #2: As I mentioned going back maybe one step the others are progressing on plan that is in particular of course Yale Moly but also from Münsterpost those slate to open beginning of next year as well as the Jond construction where we expect to close kind of the core construction end of the year and then starting the internal kind of fit out as of next year.

Marcel Kucher: That is, in particular, of course, Jelmoli, but also Fraumünsterpost, that was slate to open beginning of next year, as well as the Yond construction, where we expect to close the core construction end of the year, and then starting the internal fit-outs as of next year. Being able to open that roughly in 2028, beginning of 2028. We will show all of these sites during our Capital Markets Day live and in color, as I mentioned, so we will provide some more details on that and where we stand in terms of timing and cost in October. Two pages on our solutions business. This is the page that you know, where we basically see the three pillars within solutions. So the discretionary management, the fiduciary management, as well as bespoke client solutions that we offer.

Speaker #2: Being able to open that roughly in 2028 beginning of 2028. We will show all of these sites during our capital markets day live and in color as I mentioned so we'll provide some more details on that and where we stand in terms of timing and cost in October.

Speaker #2: Two pages on our solutions business. This is the page that you know where we basically see the three pillars within solutions so the discretionary management as fiduciary management as well as bespoke client solutions that we offer as you can see we grew in all three of them roughly at the same rate 0.2 billion on the discretionary side in particular with new acquisitions for Aqara fund for IFC fund.

Marcel Kucher: As you can see, we grew in all three of them, roughly at the same rate. CHF 0.2 billion on the discretionary side, in particular with new acquisitions for Akara Fund, for IFC Fund. CHF 0.2 billion on the fiduciary side, in particular with new investments on Swiss Prime Anlagestiftung and from the Fundamenta Group foundations. Finally, as I mentioned before, we won a new mandate of a large Swiss pension fund in the advisory business, adding roughly CHF 400 million to our AUM, and that more than offset the promotions that left our AUMs, given that they were finalized and handed over to the new owners. We mentioned that before, but you see the growth rate that we can deliver organically of roughly CHF 1 billion per year. We are well on track to deliver that also in 2026, with roughly CHF 0.5 billion for the H1 2026.

Speaker #2: 0.2 billion on the fiduciary side in particular with new investments on SPA and fundamental foundations. And finally as I mentioned before we want a new mandate of a large Swiss pension fund in the advisory business adding a roughly 400 million to our AUM and that more than offset kind of the promotions that left our AUMs given that they were finalized and handed over to the new owners.

Speaker #2: We mentioned that before but you see kind of the growth rate that we can deliver organically of roughly 1 billion per year. We are well on track to deliver that also in 2026 with roughly a half a billion for the first half year 2026.

Speaker #2: Part of the capital increase and part of the capital inflow that we have is not yet invested. That's why there's a difference between the 1 billion and the 500 million that you see here.

Marcel Kucher: Part of the capital increase and part of the capital inflow that we have is not yet invested. That is why there is a difference between the CHF 1 billion and the CHF 500 million that you see here. We have enough firepower for the remainder of the year. I expect, hence, to reach the CHF 1 billion in growth by the end of 2026. On the right-hand side, you see the capital increases and inflows. Here again, we are talking about the new money, the CHF 500 million, roughly, in addition to the CHF 400 million that we gained from the mandates, this new pension fund. Several new capital increases are in the pipeline or are already ongoing, so that we expect the year to end with probably more than CHF 1.3, CHF 1.4 billion in net new money by the end of 2026. Again, not everything will be invested by that.

Speaker #2: So we have enough firepower for the remainder of the year and expect hence to reach the 1 billion in growth by the end of the 2026.

Speaker #2: On the right hand side you see the capital increases and inflows. So here again we're talking about the new money the 500 million roughly in addition to the 400 million that we gained from the mandates.

Speaker #2: This new pension fund several new capital increases are in the pipeline or aren't already ongoing. So that we expect this year to end with probably more than 1.3 1.4 billion in net new money by the end of 2026.

Speaker #2: Again not everything will be invested by that. Some of the elements we will leave us with firepower for the next year. Last page on the asset management side we continue to see very stable fees that we can that we can charge you see the roughly 16 bips on the non-recurring on the non-recurring part.

Marcel Kucher: Some of the elements will leave us with firepower for the next year. Last page on the asset management side, we continue to see very stable fees that we can charge. You see the roughly 16 basis points on the non-recurring part. These are mostly transaction elements in here and capital increases. You see the roughly 40 basis points on the recurring part. You see a slight decrease. This is not because we see pricing pressure in the market, but rather we did some larger transactions and hence had some cliff pricing models, where we share part of the increased efficiencies with our clients, which we believe is the right way to do.

Speaker #2: So these are mostly transaction elements in here and capital increases and you see the roughly 40 bips on the recurring part. You see a slight decrease.

Speaker #2: This is not because we see pricing pressure in the market but rather we did some larger transactions and hence had some cliff pricing models where we share part of the increased efficiencies with our clients which we believe is the right way to do.

Speaker #2: And you see the cost efficiency gains that we had on the on the right side with our cost ratio coming to an overall and record low low of 35% underpinning here again the significant economies of scale that we see in the business and that we can also reap.

Marcel Kucher: You see the cost efficiency gains that we had on the right side with our cost ratio coming to an overall and record low of 35%, underpinning here, again, the significant economies of scale that we see in the business and that we can also reap. That leaves us only with the outlook before we turn to Q&A. As we mentioned before, we confirm all of our targets. From right to left, we will increase our AUMs by more than CHF 1 billion for 2026 in the asset management business. We will end up at less than 3.7% in vacancies in our own real estate. The LTV, as Martina mentioned before, will end up as last year, below 39%.

Speaker #2: That leaves us only with the outlook before we turn to Q&A. As we mentioned before we will confirm all of our targets so from right to left we will increase our AUMs by more than 1 billion for 2026 in the asset management business.

Speaker #2: We will end up at less than 3.7% in vacancies in our own real estate. The LTV as Martina mentioned before will end up as last year below 39%.

Speaker #2: And on the FFO guidance most important element of course also then as a basis for the dividend for next year we are very confident that we'll end up at the upper range of the guidance that we gave in February so closer to the 430 than the 425 lower range.

Marcel Kucher: On the FFO guidance, most important element, of course, also then as a basis for the dividend for next year, we are very confident that we will end up at the upper range of the guidance that we gave in February. So closer to the CHF 430 than the CHF 425 or lower range. That leaves us with a final page. We are the leading real estate platform in Switzerland, built to deliver through the cycle. We do that through a resilient platform with the two pillars, very consistent delivery where we can benefit from the economies of scale. We see the operating momentum with the visible upside 5% on the asset management side, 2.2% without the sales, 4.5% with our own real estate, and we have a clear path to future value creation.

Speaker #2: That leaves us with a final page we are the leading real estate platform in Switzerland built to deliver through the cycle. We do that through a resilient platform with the two pillars very consistent delivery where we can benefit from the economies of scale we see the operating momentum with the visible upside 5% on the asset management side 2.2% without the sales 4.5% with our own real estate and we have a clear path to future value creation.

Speaker #2: We'll provide more details on that including visits of the three sites that I mentioned before on our capital markets day live here in Zurich in person on October 26th in Frau Münsterpost which will provide you with a very good view of this fantastic building and where we currently stand in terms of the construction.

Marcel Kucher: We will provide more details on that, including visits of the three sites that I mentioned before on our Capital Markets Day live here in Zurich, in person on 26 October, in Fraumünsterpost, which will provide you with a very good view of this fantastic building and where we currently stand in terms of the construction. With that, I would close and hand over for any questions that you might have, which we are very happy to answer. As I mentioned before, we also have Anastasios Tschopp here on the asset management side, and we have Karin, which you do not see in the picture here, for any more detailed questions on our own real estate portfolio.

Speaker #2: With that I would close and hand over for any questions that you might have which we're very happy to answer as I mentioned before we also have Anastasius Chop here on the asset management side and we have Karin which you don't see in the picture here for any more detailed questions on our own real estate portfolio.

Speaker #1: Thank you. We will now begin the Q&A. If you'd like to ask a question from the Zoom webinar please use the raise hand function which can be found at the bottom of your Zoom screen.

Operator: Thank you. We will now begin the Q&A. If you would like to ask a question from the Zoom webinar, please use the raise hand function, which can be found at the bottom of your Zoom screen. Once called upon, please unmute your audio and ask your question. Our first question will come from Ken Kagerer with Zürcher Kantonalbank. Please press star six to unmute your line. Hi, Ken. Please press star six to unmute your phone line.

Speaker #1: Once called upon please unmute your audio and ask your question. Our first question will come from Ken Kagura with ZKB. Please press star mute or star six to unmute your line.

Speaker #1: Hi Ken please press star six to unmute your phone line.

Speaker #3: Hello.

Ken Kagerer: Hello?

Speaker #2: Yes. Hi Ken.

Marcel Kucher: Yes. Hi, Ken.

Ken Kagerer: Okay. Excellent. Good morning, everyone. I would have four questions. The first one is regarding the lease expiry profile. Do you have any larger contracts becoming due in 2027? What would that mean for vacancies? Could you remain on those levels? Do you expect even a further decrease? Could you give us some light on that topic, please?

Speaker #3: Okay. Excellent. Good morning everyone. I would have four questions. The first one is regarding the lease expiry profile. Do you have any larger contracts becoming due in 2027 and what would that mean for vacancies?

Speaker #3: Could you remain on those levels or do you expect even a further decrease or could you give some light on that topic please?

Speaker #2: No major no major lease expiry is coming up and we expect to be on the lower level that we guided also for the next year.

Marcel Kucher: No major lease expiry is coming up. We expect to be on the lower level that we guided, also for the next year.

Speaker #3: Okay thank you. The second one is with regards to the outlook for the external asset manager. Especially as it becomes more and more difficult to find assets to invest in.

Ken Kagerer: Okay. Thank you. The second one is with regards to the outlook for the external asset manager. Especially as it becomes more and more difficult to find assets to invest in, do you think you need to go and grow abroad more actively? Or do you think you can still continue to find enough assets to ensure further growth of the platform?

Speaker #3: Do you think you need to go and grow abroad more actively or do you think you can still continue to find enough assets to ensure further growth of the platform?

Speaker #2: We will provide an update with kind of longer term view during our capital markets day. But our guidance that we gave in terms of growing 1 billion in assets focused on Switzerland of course I think continues to hold.

Marcel Kucher: We will provide an update with a longer-term view during our Capital Markets Day. Our guidance that we gave in terms of growing 1 billion in assets focused on Switzerland, of course, I think continues to hold. In terms of how to find assets in this difficult market, I maybe hand over quickly to Anastasios, who can shed some light on that. Is that so difficult? Do you still find assets?

Speaker #2: In terms of how to find assets in these difficult market I maybe hand over quickly to Anastasius. You can shed some light on that.

Speaker #2: Is that so difficult? Do you still find assets?

Speaker #3: Yeah I will do that. Thank you Ken for this question. We are really positive our pipes are full in each product so we close some deals the last weeks and we will close the next couple of months.

Anastasius Tschopp: Yeah. I will do that. Thank you, Ken, for this question. We are really positive. Our pipes are full in each product, so we closed some deals the last weeks, and we will close the next couple of months, a lot of deals. So we are really positive for each product, yeah.

Speaker #3: A lot of deals so we are really positive for each product.

Speaker #2: Just to give you some light on that we did transactions of 850 million in the first in the first half as you know. Second half is typically significantly stronger.

Marcel Kucher: Just to give you some light on that. We did transactions of CHF 850 million in the H1. As you know, H2 is typically significantly stronger. Hence, we are positive to also be able to find those right assets. How many of them do you do off-market currently? How much go through brokers?

Speaker #2: And hence we are positive to also be able to find those right assets. How many of them do you do off market currently and how many go through brokers?

Anastasius Tschopp: Currently, 30% of this is off-market deals with our great networking here in Switzerland.

Speaker #3: Currently 30% of this is off market deals with our great networking here in Switzerland. Yeah.

Speaker #2: Roughly 30%. Okay.

Marcel Kucher: Roughly 30%. Okay.

Speaker #3: Thank you Anastasius. This brings me to the third question. Debt maturity profile. I've seen in 29 and 30 you have 1 billion and 1.6 billion due.

Ken Kagerer: Thank you, Anastasios. This brings me to the third question. Debt maturity profile. I have seen in 2029 and 2030 you have CHF 1 billion and CHF 1.6 billion due. Could you just tell us what your strategy is with regards to those rather large amounts?

Speaker #3: Could you just tell us what your strategy is with regards to those rather large amounts? Those are related to our syndicated loan facilities with a broad syndicate of banks.

Martina Moosmann: Yeah. Those are related to our syndicated loan facilities with a broad syndicate of banks. As you see when you turn to slide 16, you have the CHF 700 dry powder I mentioned earlier is essentially the currently unused part of those credit facilities. We will take a very close look, and are already taking a close look, how much do we want to refinance in which market to have that rolling of the syndicated loan facilities in an optimized way for the group.

Speaker #3: And as you see when you turn to slide 16 you have the 700 dry powder I mentioned earlier is essentially the unused part. The currently unused part of those credit facilities.

Speaker #3: So we will take a very close look and are already taking a close look how much do we want to refinance in which market to have that rolling of the syndicated loan facilities in an optimized way for the group.

Speaker #2: So far maybe adding to that we have no indications that the banks would not be interested in rolling those on the contrary from the majority of the banks we understand they would be interested in doing more.

Marcel Kucher: So far, maybe adding to that, we have no indications that the banks would not be interested in rolling those. On the contrary, from the majority of the banks, we understand they would be interested in doing more. Hence, yes, this is something we need to actively approach, obviously. But nothing that puts any worries on us at this point.

Speaker #2: Hence yes this is something we need to actively approach obviously but nothing that puts us any worries on us at this point.

Speaker #3: Excellent. Thank you very much. And this brings me to the last question which is also referring to financing. Could you outline how much the total cost of the convertible was i.e. the delta of the initial face value and the final redemption amount of the convertible bond?

Ken Kagerer: Excellent. Thank you very much. This brings me to the last question, which is also referring to financing. Could you outline how much the total cost of the convertible was, i.e., the delta of the initial face value and the final redemption amount of the convertible bond? Thank you.

Speaker #3: Thank you. We have when you look at our financial statements on page 35 we lay out the detailed table of the financing expenses included in our first half numbers.

Martina Moosmann: When you look at our financial statements, on page 35, we lay out the detailed table of the financing expenses included in our H1 numbers. There are several line items where the convertible bond hit the P&L. The largest one is CHF 73 million, which includes the bond floor and the embedded derivative in the convertible, which upon the redemption we realized. The second part, making up the CHF 84 million that we mentioned in the financial review, is future financing expenses for the years 2027 and onward. That, of course, by redeeming a bond, we had to release.

Speaker #3: And there are several line items where the convertible bond hit the P&L. The largest one is 73 million which includes the bond floor and the embedded derivative in the convertible which upon the redemption we realized.

Speaker #3: And the second part making up the 84 million that we mentioned in the financial review is future financing expenses for the years 27 and onward.

Speaker #3: That of course by redeeming a bond we had to release. I've seen that. Thank you very much. I mean I've read these in the annual report myself.

Ken Kagerer: I have seen that. Thank you very much. I have read this in the annual report myself. The question was more, what is the delta between what you received and what you had to pay back for the convertible in total, i.e., adding up all the H1 results up to now?

Speaker #3: The question was more what is the delta between what you received and what you had to pay back for the convertible in total i.e. adding up all the half-year results up to now.

Marcel Kucher: It is roughly CHF 180 million.

Speaker #2: It's roughly 180 million.

Speaker #3: Thank you very much.

Ken Kagerer: Thank you very much.

Speaker #1: Thank you. Our next question comes from Anna Escalante with Morgan Stanley. Please unmute your line to ask your question.

Operator: Thank you. Our next question comes from Ana Escalante with Morgan Stanley. Please unmute your line to ask your question.

Speaker #4: Hello good morning. Can you hear me?

Ana Escalante: Hello. Good morning. Can you hear me?

Speaker #2: Absolutely. Wonderful. Good morning Anna.

Marcel Kucher: Absolutely wonderful. Good morning, Ana.

Speaker #4: Great. Thank you. So my question is on disposals. Because I think that in February you mentioned that you intended to reduce the planned disposals of around 130 million per annum.

Ana Escalante: Great. Thank you. My question is on disposals, because I think that in February you mentioned that you intended to reduce the planned disposals of around CHF 130 million per annum, yet you signed CHF 170 million approximately in the H1. Was this more opportunistic, or did you receive some unsolicited approaches? What drove the amount of disposals that you signed year to date?

Speaker #4: Yet you signed 170 approximately in the first half. Was this more kind of opportunistic or did you receive some unsolicited approaches? What drove the amount of disposals that you signed year to date?

Speaker #2: Yeah. All of those disposals that we did now we signed last year. So part of it that we dispose now was the asset swap which we did where we swapped the building on Bahnhofstrasse so this very prime building against two buildings in secondary locations which now or actually executed so that was the large part.

Marcel Kucher: Well, all of those disposals that we did now, we signed last year. Part of it that we disposed now was the asset swap, which we did, where we swapped the building on Bahnhofstrasse, so this very prime building, against two buildings in secondary locations, which now were actually executed. That was the large part. It was roughly CHF 120 million. The remaining part were two smaller shopping centers, which we also signed last year, which only closed now in the H1. We did not sign any additional sales in the H1. With one object, we are in the market currently. This is something we mentioned also a couple of times. It is a fantastic former Swisscom building in Geneva, where we were able to get a building permit to convert it into residential apartments.

Speaker #2: It was roughly 120 million. The remaining part were two smaller shopping centers which we also signed last year. But we only closed now in the first half.

Speaker #2: We did not sign any additional sales that in the first half year. And we are with one project we are in the market currently.

Speaker #2: This is something we mentioned also a couple of times it's a fantastic former Swisscom building in Geneva where we were able to get a building permit to convert it into residential apartments.

Speaker #2: And as we don't do apartments and residential this is hence going to leave our portfolio does currently not have any top line it's empty by now for a new investor it's ready to start construction.

Marcel Kucher: And as we do not do apartments and residential, this is hence going to leave our portfolio. It does currently not have any top line. It is empty by now. For a new investor, it is ready to start construction. We are not planning to do that, but leave that to the new investor that might come for the remaining of the year, depending a little bit on the timing and of the right of first refusal that in Geneva, the canton has, so the city.

Speaker #2: But we're not planning to do that but leave that kind of to the new investor. That might come for the remaining of the year.

Speaker #2: Depending a little bit on the timing and of the right of first refusal that in Geneva the Canton has. So the city.

Ana Escalante: Super clear. Thank you. Thank you very much. And maybe if I can follow up a bit on that.

Speaker #4: Super clear. Thank you. Thank you very much. And maybe if I can follow up a bit on that. As you mentioned what you sold was mainly retail assets but I assume were sold at a higher yield than the average for your portfolio.

Marcel Kucher: Sure.

Ana Escalante: As you mentioned, what you sold was mainly retail assets that I assume were sold at a higher yield than the average for your portfolio. I appreciate that you will provide more details on capital allocation at your CMD. But how are you currently thinking about redeploying the proceeds from disposals? Is that to partly fund the acquisitions from last year, pending CapEx on the pipeline, a mix of both, or are you seeing any other opportunities in the market?

Speaker #4: And I appreciate that you would provide more details on capital allocation at your CMD but how are you currently thinking about redeploying the proceeds from disposals?

Speaker #4: But to fund partly fund the acquisitions from last year pending capex on the pipeline a mix of both or are you seeing any other opportunities in the market?

Speaker #2: Yeah. Again for the large part it's a switch. So it's an asset swap. So for reasons again that had to do with first right of refusals of some cities here in Switzerland we couldn't do it at the same time.

Marcel Kucher: Well, again, for the large part, it is a switch. So it is an asset swap. For reasons, again, that had to do with first right of refusals of some cities here in Switzerland, we could not do it at the same time. So we closed the receiving end. We got the building here at Bahnhofstrasse in Zurich. We got it already last year, and now we kind of closed the loop and sold the two buildings. But that was part of the asset swap. Hence, also no cash flow here because we swapped the two assets. For the smaller part of the transactions, hence the retail, two small shopping centers. Yes, we did receive that, but we mostly invested in the current environment into our own construction. And Martina mentioned that before.

Speaker #2: So we closed kind of the receiving end. We got the building here at Bahnhofstrasse in Zurich. We got it already last year and now we kind of closed the loop and sold the two buildings but that was part of the asset swap.

Speaker #2: Hence also no cash flow here because we swapped the two assets. For the smaller part of the transactions hence the retail the small two small shopping centers yes we did receive that but we mostly invested in the current environment into our own construction.

Speaker #2: Martina mentioned that before we invested roughly 100 million in our own development pipeline and this is certainly something that will continue that we will use the fund flows from kind of the deposed disposals for our own pipeline where we see attractive yields that are higher than what we could get on the market.

Marcel Kucher: We invested roughly CHF 100 million in our own development pipeline, and this is certainly something that will continue, that we will use the fund flows from the disposals for our own pipeline, where we see attractive yields that are higher than what we could get on the market. Nevertheless, we obviously always keep an eye open on the market. For those elements that are in competition, so where you have JLL or CBRE, leading a process, we had to realize that this is not at yield levels that would be attractive to us. There were quite some buildings in the market, but at compressed yields where we passed. However, there are from now and then, as we did last year, off market transactions, and we certainly have an open eye on that in terms of how we can redeploy that capital.

Speaker #2: Nevertheless we are obviously always keep an eye open on the market. For those elements that are in competition so where you have JLL or CBRE etc.

Speaker #2: leading a process we had to realize that this is not a yield levels that will be attractive to us. There were quite some buildings in the market but at compressed yields where we passed however there are from now and then as we did last year off market transactions and we do certainly have an open eye on that in terms of how we can redeploy that capital.

Speaker #4: Perfect. Thank you so much.

Ana Escalante: Perfect. Thank you so much.

Operator: Our next question comes from John Wang with Van Lanschot Kempen. Please unmute to ask your question.

Speaker #1: Our next question comes from John Vuang with London Shop Campaign. Please unmute to ask your question.

Speaker #2: Hey John how are you?

Marcel Kucher: Hey, John. How are you?

Speaker #1: John I can see you unmuted. Please go ahead with your question. We're having trouble getting audio from John so I'm going to move to the next question.

Operator: John, I can see you are unmuted. Please go ahead with your question. We are having trouble getting audio from John, so I am going to move to the next question. We will come back to you. Our next question is from Paul May with Barclays. Please unmute to ask your question.

Speaker #1: We'll come back to you. Our next question is from Paul May with Barclays. Please unmute to question.

Speaker #5: Hi guys. Hope you can hear me. Well actually not. Four questions but hopefully they should be relatively quick. Just on the like-for-like rental growth obviously been slowing from the half year to the full year then to the first half this year.

Paul May: Hi, guys. Hopefully you can hear me quite well. Actually, I got four questions, but hopefully they should be relatively quick. Just on the like-for-like rental growth, it has obviously been slowing from the H1 to the full year then to the H1 this year, which I think mainly is due to indexation coming down. I think you have highlighted for the first time, apologies if it is not the first time, the 10% reversion in the portfolio. Just wondered over what time period you plan to capture that 10%, and if you could give some color on how that reversion has changed over the last, say, full year and since the year end. So over the last year and since the year end would be great.

Speaker #5: Which I think mainly due to indexation coming down. I think you've highlighted for the first time apologies it's not the first time the 10% reversion.

Speaker #5: In the portfolio just wondered over what time period you plan to capture that 10% and if you give some color on how that reversion has changed over the last say full year and since the year end.

Speaker #5: So over the last year and since the year end would be great.

Speaker #2: Thank you so much. Look we have a walled an average walled that's what I usually try to kind of put the expectations. We have a walled currently of close to six years 5.7 years.

Marcel Kucher: Thank you so much. Look, we have a WALT, an average WALT. That is what I usually try to put the expectations. We have a WALT currently of close to six years, 5.7 years. We have an implicit WALT, which is a little bit longer because some of our tenants still have options where they can extend their rent at the prevailing rate. So together, I would say roughly seven years of an implicit WALT, including those options. Now, if you divide the 10% reversionary potential that we have, and it is not going to be fully even, of course, distributed, but say roughly even distributed, you can expect 10 divided by seven, roughly 1.4% in real reversion that we can capture every year. It might be some fluctuations depending on which contract and when, but on average, that should roughly pan out.

Speaker #2: We have an implicit walled which is a little bit longer because some of our tenants still have options where they can extend their rent at the prevailing rate.

Speaker #2: So together I'd say roughly seven years of an implicit walled including those options. Now if you divide the 10% reversionary potential that we have and it's not going to be fully even of course distributed but say roughly even distributed you can expect 10 divided by 7 roughly 1.4% in real kind of reversion that we can capture every year.

Speaker #2: Might be some fluctuations depending on which contract and when but on average that should roughly pan out. And if you look back this is pretty much what we got over the last two years, three years in terms of real reversion.

Marcel Kucher: If you look back, this is pretty much what we got over the last two years, three years in terms of real reversion. On top of that, obviously, is indexation. That is a little bit out of our hands, and comes with some benefits as well, obviously on the refinancing side and on the revaluation side. But on top of that is obviously the indexation that came down significantly, as you pointed out, given that we are basically in a, at least for the H1, zero inflation environment in Switzerland. It came up a little bit now following the war in Iran. So currently probably at 0.5, 0.6. So you can expect some of that we will be able to capture for the H2, and maybe a little bit more than in the next year.

Speaker #2: On top of that obviously is indexation. That's a little bit out of our hands. And comes with some benefits as well. Obviously on the refinancing side and on the revaluation side.

Speaker #2: But on top of that is obviously the indexation that came down significantly as you pointed out given that we are basically in a at least for the first half year zero inflation environment in Switzerland.

Speaker #2: Came up a little bit now following the war in Iran. So currently probably at 0.5, 0.6. So you can expect some of that we will be able to capture for the second half and maybe a little bit more than in the next year.

Paul May: Just on how that reversion has changed over the last year or H1.

Speaker #5: Just on how that reversion has changed over the last year or half year?

Marcel Kucher: I think it has been relatively stable. But always mentioning that we always capture every year, but it still remains at 10%. We can pretty much, whatever we capture, we see that we can add that to the reversionary potential. So keeping that relatively stable at those 10%.

Speaker #2: I think it's been relatively stable but always mentioning that we always capture every year but it's still remains at 10%. So we can pretty much whatever we capture we see that we can add that to the reversionary potential.

Speaker #2: So keeping that relatively stable at those 10%.

Speaker #5: Perfect. Second one is just wondered why you don't disclose net debt to EBITDA and apology if you do and I've missed it. It's obviously my first time going through the accounts but just wondered why you don't disclose one.

Paul May: Okay. Second one is just wondered why you do not disclose net debt to EBITDA. And apologies if you do and I have missed it. This is my first time going through the accounts, but just wondered why you do not disclose one.

Speaker #2: We disclose it in the details. But I know this is a number that many analysts use. Obviously to compare also across Europe. The problem with this measure for us is we are operating in a very low interest environment and hence in a low the numbers that is very much driven by the environment that you're operating in.

Marcel Kucher: We disclose it in the details.

Paul May: Okay.

Marcel Kucher: But I know this is a number that many analysts use, obviously to compare also across Europe. The problem with this measure for us is we are operating in a very low interest environment and hence in a low yield environment. This is one of the numbers that is very much driven by the environment that you are operating in. Hence, we see that with Moody's, for example. We see that with others. You have to put that into perspective and in relation to our yields that we get here in Switzerland, given our yield environment. So this is a number that I would push. It is in the 11 times range, roughly. But again, you have to put that in relation to the level where we are in terms of our yields here that we can get in Switzerland.

Speaker #2: And hence we see that with Moody's for example we see that with others you have to kind of put that into perspective and in relation to our yields that we get here in Switzerland given our yield environment.

Speaker #2: So that this is a number that we do not push. It's in the 11 times range roughly but again you have to put that in relation to the level where we are in terms of our yields here that we can get in Switzerland.

Paul May: Then similarly leveraged question, but not necessarily net to EBITDA. Just within the asset management business, what level of leverage is typically used within those funds?

Speaker #5: And similarly leverage question but answering that is EBITDA. Just within the asset management business what level of leverage is typically used within those funds?

Speaker #2: I must ask you do you want to mostly 30% in the funds regulated. So we couldn't do 40 or 50%. It's only 30%. The investors here and this might be different from other asset management businesses.

Anastasius Tschopp: I must ask you, do you want to. Mostly 30% in the funds regulated. So we could not do 40% or 50%. It is only 30%.

Marcel Kucher: The investors here, and this might be different from other asset management businesses. The investors here are pension funds, and the investment horizon is long. I always say they are looking for 30 years investment horizon. The main goal of our investors here, which are predominantly 90% investment foundations, investment pension funds, is to deploy the capital. Hence, they do not want too high leverage. This is not a private equity business, where you want 10, 15, whatever, 20 times IRR or percent IRR. This is a long-term investment business that we do for our pension funds. Hence, it is regulated by the Swiss authorities that they cannot exceed one third, 33%.

Speaker #2: The investors here are pension funds and the investment horizon is long. I always say they are looking for 30 years investment horizon. And the main goal of our investors here which are predominantly 90% investment foundations, investment pension funds is to deploy the capital hence they don't want too high leverage this is not a private equity business where you want them 10, 15, whatever 20 times IRR or percent IRR.

Speaker #2: This is a long-term investment business that we do for our pension funds. Hence it is regulated by the Swiss authorities that they cannot exceed one third 33%.

John Zuan: Yeah.

Speaker #2: But what we actually see from the pension funds they want it to be even lower because their aim is to deploy capital. And not for us to kind of leverage this up.

Marcel Kucher: But what we actually see from the pension funds, they want it to be even lower.

John Zuan: Yeah.

Marcel Kucher: Because their aim is to deploy capital and not for us to leverage this up. Hence, within those constraints, we typically operate between 25 and 30 for the majority of the products.

Speaker #2: Hence within those constraints we typically operate between 25 and 30 for the majority of the products.

Speaker #5: Leverage yeah. And just on the pension fund goal is it generally recurring cash flow that they're looking for as well rather than necessarily lots of capital appreciation if they're looking over that really long term horizon?

John Zuan: Yeah. Leverage. Yeah.

Paul May: And just on the pension fund goal, is it generally recurring cash flow that they're looking for as well, rather than necessarily lots of capital appreciation if they're looking over that really long-term horizon?

Marcel Kucher: 100%. That is why you see also the focus on residential. Because obviously with this residential focus, you have atomized counterparty risk. You have, in Switzerland, 0 point something vacancy rate. So for them, this provides the security that this is recurring cash flow. That is what they are interested in, not so much the capital appreciation. We have some smaller products. The promotions that we mentioned before, this is typically where we do new builds and sell it as individual condominiums. Here it is different. That is a very small part of our overall portfolio.

Speaker #2: 100%. 100%. And that's why you see also the focus on residential because obviously with this residential focus you have atomized counterparty risk. You have in Switzerland 0 point something vacancy rate.

Speaker #2: So for them this provides the security that this is recurring cash flow. And that's what they're interested in. Not so much the capital appreciation.

Speaker #2: We have some smaller products the promotions that we mentioned before this is typically where we do new builds and sell it as individual condominiums.

Speaker #2: Here it's different but that is a very small part of our overall portfolio.

Speaker #5: Perfect. And sorry the last one. The asset focus probably explains a lot of it but just wondered in terms of managing any conflicts of interest between your own portfolio and the asset management business how does that typically manage and there was a if you both want an asset how does it get decided as to where that asset ends up falling?

Paul May: Perfect. Sorry, the last one. The asset focus probably explains a lot of it, but just wondered, in terms of managing any conflicts of interest between your own portfolio and the asset management business, how is that typically managed? If you both want an asset, how does it get decided as to where that asset ends up falling?

Speaker #2: Excellent question. The first answer you already gave yourself we typically do not want the same asset. We focus on the four cities that I mentioned before.

Marcel Kucher: Excellent question. The first answer you already gave yourself. We typically do not want the same asset. We focus on the four cities that I mentioned before. Five, if you separate Geneva and Lausanne. Within those cities, on the best locations, best buildings, core locations. Hence, having relatively low yields, of course, given the quality of the assets and the quality of the location. The asset management business with the pension fund focus, they focus on residential. 70%, roughly, is residential of the assets. So zero potential conflict of interest here. The remaining one, I usually use the term, is a yield enhancer, what they do in commercial. So if you have a 3% yielding real estate portfolio with a residential focus, you do not want to add another 3% yield on the commercial side.

Speaker #2: Five if you separate Geneva and Lausanne. And within those cities on the best locations best buildings core locations hence having relatively low yields of course given the quality of the assets and the quality of the location.

Speaker #2: The pension fund the asset management business with the pension fund focus they focus on residential 70% roughly is residential of the assets. So zero potential conflict of interest here.

Speaker #2: The remaining one I usually use the term is a yield enhancer what they do in commercial. So if you have a 3% yielding real estate portfolio with residential focus you don't want to add kind of another 3% yield on the commercial side but they're looking then for secondary locations secondary buildings that enhances a little bit the relatively low yields that they get from the residential side.

Marcel Kucher: They are looking then for secondary locations, secondary buildings, that enhances a little bit the relatively low yields that they get from the residential side. Hence, no conflict here. In addition to that, I think this is the strategy part and the focus part in terms of our portfolio, should not happen any conflict of interest. In addition to that, we have an organizational element. That not only applies to the two divisions, our own portfolio and the asset management, but it also applies within the asset management. We do have separate teams for every type of investor that are doing our sales and acquisitions. So we have a separate team here that do transactions, so acquisition and sales for our own portfolio. We have three separate teams that do acquisition and sales on the asset management side. Why do we do that?

Speaker #2: Hence no conflict here. Now in addition to that I think this is the strategy part and the focus part in terms of our portfolio should not happen any conflict of interest.

Speaker #2: In addition to that we have an organizational element. And that not only applies to the two divisions our own portfolio and the asset management but it also applies within the asset management.

Speaker #2: We do have separate teams for every type of investor. That are doing our sales and acquisitions. So we have a separate team here that do transactions or acquisition and sales for our own portfolio.

Speaker #2: And we have two or three separate teams that do acquisition and sales on the asset management side. Why do we do that? We do believe and that is what our customers tell us our clients tell us that it is very important that you have somebody that really cares about your portfolio and only focuses on your portfolio.

Marcel Kucher: We do believe, and that is what our customers tell us, our clients tell us, that it is very important that you have somebody that really cares about your portfolio and only focuses on your portfolio. Hence, we have not done what many of the banks do, where you have a centralized acquisition team, and then they rotate it internally. But we have separate teams. They have Chinese walls. They do not talk to each other. And if in the very low likelihood that we would be interested in two of the products in the same property, we will put in two offers, and then whoever had the better idea will win.

Speaker #2: Hence we have not done what many of the banks do where you have a centralized acquisition team and then they kind of rotate it internally but we have separate teams.

Speaker #2: They have Chinese walls. They don't talk to each other. And if in the very low likelihood that we would be interested in two the two of the products in the same property we would put in two offers.

Speaker #2: And then whoever had the better idea will win.

Speaker #5: Perfect. Thank you very much.

Paul May: Thank you very much.

Speaker #1: Our next question comes from Mateo Lindauer. We'll move on to that. Please unmute to ask your question. Mateo please press star six to unmute your line.

Operator: Our next question comes from Matteo Lindauer with Vontobel. Please unmute to ask your question. Matteo, please press star six to unmute your line. Hi, Matteo, we can see that you are unmuted. Please go ahead with your question. All right. Looks like we are having some audio issues from Matteo. I will go ahead and move on to John Zuan with Van Lanschot Kempen. Please go ahead with your question.

Speaker #1: Hi Mateo we can see that you're unmuted. Please go ahead with your question. All right. Looking like we're having some audio issues from Mateo.

Speaker #1: I'll go ahead and move on to John Guan with. Fun lunch camper. Please go ahead with your question.

Speaker #5: Hi good morning. Hope you can.

John Zuan: Hi. Good morning. Hope you can-

Marcel Kucher: Hey, John. How are you?

Speaker #2: Hey John can you hear me now? Absolutely. Loud and clear.

John Zuan: hear me now.

Marcel Kucher: Absolutely. Loud and clear.

Speaker #5: Perfect. I was just looking at the FFO one outlook. So I was looking at the run rate for H1 and also expected growth in H2 for AUM.

John Zuan: Perfect. I was just looking at the FFO1 outlook. I was looking at the run rate for H1 and also expected growth in H2 for AUM. Then taking into consideration the full effect of the convertible refi, the outlook still screens to provide a margin of safety. I was just wondering whether, for H2, anything weighing on the top line or whether there is any exceptional cost that you are expecting?

Speaker #5: And then taking into consideration the full effect of the convertible refi. The outlook still screens to provide a margin of safety. So I was just wondering whether there's for H2 anything weighing on the top line or whether there's any exceptional cost that you're expecting.

Speaker #3: John I would say nothing exceptional that we're expecting. But we want to keep providing details to our capital markets day in two months. We will then also extend the guidance which currently ends at 28 to 2030 and we want to do that in one go.

Martina Moosmann: John, I would say nothing exceptional that we're expecting, but we want to keep providing details to our Capital Markets Day in 2 months. We will then also extend the guidance, which currently ends at 2028 to 2030, and we want to do that in one go. Hence, we're very confident to reach the upper end with an update to follow in 2 months.

Speaker #3: Hence we're very confident to reach the upper end with an update to follow in two months.

Speaker #5: Okay. That's clear. Thank you. And then just on the asset management cost looking at the other operating expenses it grew almost as much as the decline in personnel cost.

John Zuan: Okay. That's clear. Thank you. On the asset management costs, looking at the other operating expenses, it grew almost as much as the declines in personnel costs. Could you provide a bit more color on this? Has that been a shift in classification of costs or are there one-offs in other operating costs?

Speaker #5: Could you provide a bit more color on this? That's been a shift in classification of costs or are there one-offs in other operating costs?

Speaker #2: No they're not one-off. But we provide development and construction services for a significant part of the asset management business now out of a service unit.

Marcel Kucher: No, they're not one-off. But we provide development and construction services for a significant part of the asset management business now out of a service unit. Hence, it shifted from direct personnel costs into company charges. That helps us to provide the best services to all of our properties and buildings. You see that reflected now in the P&L by this shift from personal cost into company related cost, so to speak. If you go into the segment reporting, you see it because we show it here, I think, the company. You see here the more details, but that is the factual basis for that, why that happened.

Speaker #2: And hence it shifted from direct personnel cost into kind of into company charges. That helps us to provide kind of the best services to all of our properties and buildings.

Speaker #2: And you see that reflected now in the P&L by this shift from personal cost into company related cost. So to speak. If you go into the segment reporting you see it because we show it here as intercompany.

Speaker #2: And you see here the more details but that is the factual basis for that. Why that happened.

Speaker #5: Okay. That's clear. Thank you.

John Zuan: Okay. That's clear. Thank you.

Operator: Our next question will come from Matteo Lindauer. Please press star 6 to unmute your line. Hi, Matteo, you are unmuted. Please go ahead with your question. Unfortunately, we are not getting any audio from Matteo, so I will move on to Alexander Tafman with Green Street. Please unmute to ask your question.

Speaker #1: Our next question will come from Mateo Lindauer. Please press star mute to star six to unmute your line. Hi Mateo you are unmuted. Please go ahead with your question.

Speaker #1: Unfortunately we're not getting any audio from Mateo. So I will move on to Alexander to attend with Green Street. Please unmute to ask your question.

Alexander Tafman: Hello, everyone. Thank you for taking my questions. Two for me today. In your like-for-like growth breakdown, Geneva does stand out at 7.2%. You mentioned the JPMorgan lease at Alto Pont-Rouge. By my estimates, that should make up about two-thirds of the total. I was left with the impression that the Globus leases were resigned at current rental levels, so I assume that is not the driver. What is driving the residual growth?

Speaker #4: Good morning. Thank you for taking my questions. Two for me today. In your lifelike energy growth breakdown you need to stand out at 7.3%.

Speaker #4: You mentioned the JPMB set out to point to Rouge. But I'm estimates that should take it that should make about two thirds of the total.

Speaker #4: I was left with the impression that the global leases were resigned at current rental levels. So I assume that's not the driver. What's driving the residual growth?

Speaker #2: No it's not the driver. Part of it is that we started to really one step back. Before we signed kind of the new globus rents the idea was that we would renovate the globus building.

Marcel Kucher: No, it is not the driver. One step back. Before we signed the new Globus rents, the idea was that we would renovate the Globus building. We mentioned that during our last Capital Markets Day in Geneva, where we looked at still two options. Now with the extension of the Globus lease, we decided to push that back by roughly 10 years and started to re-lease some of the floor space that we already emptied before. So part of that is this, and the second part you mentioned already is the JPMorgan lease, which started in April, I think. Yes.

Speaker #2: We mentioned that during our last capital markets day in Geneva where we looked at still two options. Now with the extension of the globus lead we decided to push that back by roughly 10 years and started to release some of the floor space that we already emptied before.

Speaker #2: So part of that is this. And the second part you mentioned already is the JP Morgan lease. Which started in April I think. Yes.

Alexander Tafman: Great. Thank you. One more question related to above. Earlier this week, your peer reported strong performance on the same metric in Zurich. I think like-for-like growth was about 2%. You reported 0.7%. I was just wondering if that is a function of fewer expiring and negotiated leases for the H1 or something else.

Speaker #4: Great. Thank you. And one more follow up question related to the above. Earlier this week your peer reported strong performance on the same metric in Zurich.

Speaker #4: I think lifelike growth was about 2%. You reported 0.7. I was just wondering if that's a function of your expiring and negotiated leases for the first half or something else?

Speaker #2: I'm not sure. I got this fully. I mean again our lifelike growth and this is what I can comment on is in line with our long term kind of expectations.

Marcel Kucher: Not sure I got this fully. Again, our like-for-like growth, and this is what I can comment on, is in line with our long-term kind of expectations, where we have this 10% reversionary potential divided by the seven years I explained before. So on a real basis, roughly 1.3%, 1.4% on a year, adding, of course, to that any indexation, et cetera, or lower vacancies that might add to that. The rest of the question, I am not 100% sure whether I fully understood.

Speaker #2: Where we have this 10% reversionary potential divided by the seven years I explained before. So on a real basis roughly 1.3 1.4%. On a year adding of course to that any indexation etc.

Speaker #2: or lower vacancies. That might add to that. The rest of the question I'm not 100% sure whether I fully understood.

Martina Moosmann: Sorry. Me neither.

Speaker #4: Sorry.

Speaker #3: We need our time. Can you repeat Alex?

Martina Moosmann: I was just trying to compare the-

Martina Moosmann: Can you repeat, Alex?

Speaker #4: Yeah. I was just trying to compare the performance that was reported earlier this week by this property in Zurich which was slightly higher than what you reported.

Alexander Tafman: Yeah, I was just trying to compare the performance that was reported earlier this week by PSP Swiss Property in Zurich, which was slightly higher than was reported. I was just wondering whether the reason was potentially fewer expiring leases in Zurich. I assume that is it.

Speaker #4: I was just wondering whether the reason was essentially fewer expiring leases in Zurich. But I assume that's it.

Marcel Kucher: I cannot really comment on PSP's numbers, but we see strong momentum with our own portfolio.

Speaker #2: I can't really comment on PSP's numbers. But we see strong momentum with our own portfolio.

Alexander Tafman: Great. Thank you very much.

Speaker #4: Great. Thank you very much.

Speaker #2: Thank you. Any other questions?

Marcel Kucher: Thank you. Any other questions? I mean,

Speaker #1: Ladies and gentlemen.

Operator: Ladies and gentlemen.

Marcel Kucher: If you are being shy, of course you can also.

Speaker #2: If you're being shy of course you can also. You can also do that in German. No question. No problem here. We would of course any questions can be asked in German.

Operator: Of course.

Marcel Kucher: You can also do that in German. No problem here. Of course, any questions can be asked in German.

Speaker #2: Jede Frage kann natürlich auch auf Deutsch gestellt werden.

Operator: Ladies and gentlemen, that was the last question. I will now hand back to Marcel Kucher for any closing remarks.

Speaker #1: Ladies and gentlemen that was the last question. I'll now hand back to Marcel Kucher for any closing remarks.

Speaker #2: So thank you very much for your time and interest in Swiss Prime Site. The leading real estate platform in Switzerland. With the two pillars that provide stability coupled with growth.

Marcel Kucher: Thank you very much for your time and interest in Swiss Prime Site, the leading real estate platform in Switzerland with the two pillars that provide stability coupled with growth. We are looking very much forward to seeing hopefully all of you during our Capital Markets Day on 26 October in the beautifully renovated Fraumünsterpost on the shore of River Limmat here in the center of Zurich. Thank you so much. Have a wonderful day, and we will see you in October. Thanks.

Speaker #2: And we're looking very much forward to seeing hopefully all of you and during our capital markets day on October 26th in the beautifully renovated Fra Münsterpost on the shore of River Limmat here in the center of Zurich.

Speaker #2: Thank you so much. Have a wonderful day and we'll see you in October. Thanks.

Operator: Ladies and gentlemen, the conference is now over. You may leave the call.

Browse all earnings call transcripts

Q2 2026 Swiss Prime Site AG Earnings Call

Request TrialDemo

Swiss Prime Site

Earnings