ANNUAL REPORT 2018

ANNUAL REPORT 2018

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Let­ter to share­hol­ders

«2018 was a suc­cess­ful finan­ci­al year for the ent­i­re Group.»

Foto Hans Peter Wehrli - Präsident des Verwaltungsrats Swiss Prime Site

Prof. em. Dr. Hans Peter Wehr­li, Chair­man of the Board of Direc­tors

Let­ter to share­hol­ders

Foto Hans Peter Wehrli - Präsident des Verwaltungsrats Swiss Prime Site

Prof. em. Dr. Hans Peter Wehr­li, Chair­man of the Board of Direc­tors

«2018 was a suc­cess­ful finan­ci­al year for the ent­i­re Group.»

Facts and figu­res

1214

mil­li­on CHF ope­ra­ting inco­me
+5.1% year-on-year

310.9

mil­li­on CHF pro­fit
+1.8% year-on-year

3.80

CHF divi­dend
unch­an­ged year-on-year

2018 was a suc­cess­ful finan­ci­al year for Swiss Prime Site. Ope­ra­ting inco­me rose by 5.1% to CHF 1 214.1 mil­li­on, with growth in both the real estate and Ser­vices seg­ments. Pro­fit increa­sed by 1.8% to CHF 310.9 mil­li­on, and inclu­ded reva­lua­ti­on gains in invest­ment pro­per­ties of CHF 67.6 mil­li­on.

6295

employees
+6.5% year-on-year

4513

women
+1.7% year-on-year

449

app­ren­ti­ces
+11.4% year-on-year

At the end of 2018, the Swiss Prime Site Group had 6 295 employees across all group com­pa­nies of which around 75% were fema­le and 25% male. To ensu­re a sus­tainab­le flow of know­ledge and indu­stry exper­ti­se, trai­ning and deve­lop­ment will be prio­ri­ti­sed.

Poten­ti­al

2.0

bil­li­on CHF pro­ject pipe­line
−4.8% year-on-year

1.6

mil­li­on m2 ren­tal space
−0.5% year-on-year

4.8

per­cent vacan­cy rate
−7.7% year-on-year

The total value of the deve­lop­ment pipe­line is CHF 2.0 bil­li­on and, tog­e­ther with a port­fo­lio of 190 pro­per­ties and 1.6 mil­li­on m2 of ren­tal space, offers signi­fi­cant future poten­ti­al.

Facts and figu­res

1214

mil­li­on CHF ope­ra­ting inco­me
+5.1% year-on-year

310.9

mil­li­on CHF pro­fit
+1.8% year-on-year

3.80

CHF divi­dend
unch­an­ged year-on-year

2018 was a suc­cess­ful finan­ci­al year for Swiss Prime Site. Ope­ra­ting inco­me rose by 5.1% to CHF 1 214.1 mil­li­on, with growth in both the real estate and Ser­vices seg­ments. Pro­fit increa­sed by 1.8% to CHF 310.9 mil­li­on, and inclu­ded reva­lua­ti­on gains in invest­ment pro­per­ties of CHF 67.6 mil­li­on.

Peop­le

6295

employees
+6.5% year-on-year

4513

women
+1.7% year-on-year

449

app­ren­ti­ces
+11.4% year-on-year

At the end of 2018, the Swiss Prime Site Group had 6 295 employees across all group com­pa­nies of which around 75% were fema­le and 25% male. To ensu­re a sus­tainab­le flow of know­ledge and indu­stry exper­ti­se, trai­ning and deve­lop­ment will be prio­ri­ti­sed.

Poten­ti­al

2.0

bil­li­on CHF pro­ject pipe­line
−4.8% year-on-year

1.6

mil­li­on m2 ren­tal space
−0.5% year-on-year

4.8

per­cent vacan­cy rate
−7.7% year-on-year

The total value of the deve­lop­ment pipe­line is CHF 2.0 bil­li­on and, tog­e­ther with a port­fo­lio of 190 pro­per­ties and 1.6 mil­li­on m2 of ren­tal space, offers signi­fi­cant future poten­ti­al.

René Zahnd, CEO Swiss Prime Site

In the inter­view, CEO René Zahnd out­lines the key figu­res and high­lights of the 2018 finan­ci­al year.

«We see gre­at poten­ti­al in deve­lop­ment pro­jects in par­ti­cu­lar»

Swiss Prime Site clo­sed out the 2018 finan­ci­al year with favoura­ble results. Both the core real estate busi­ness and the Ser­vices seg­ment con­tri­but­ed to this plea­sing result. The port­fo­lio of exi­sting pro­per­ties was opti­mi­sed by acqui­si­ti­ons and divest­ment. In addi­ti­on, the pro­ject pipe­line was imple­men­ted accord­ing to plan and aug­men­ted with new pro­jects. Tech­no­lo­gi­cal chan­ges were prio­ri­ti­sed in the group com­pa­nies in the Ser­vices seg­ment. The pro­gress achie­ved will make the busi­ness models of the ver­ti­cal­ly inte­gra­ted real estate-rela­ted busi­ness are­as signi­fi­cant­ly more robust for the future. Sus­tainab­le growth and long-term suc­cess are of para­mount rele­van­ce to the ent­i­re manage­ment team, and in par­ti­cu­lar to René Zahnd, CEO of Swiss Prime Site.

«We see gre­at poten­ti­al in deve­lop­ment pro­jects in par­ti­cu­lar»
René Zahnd, CEO Swiss Prime Site

In the inter­view, CEO René Zahnd out­lines the key figu­res and high­lights of the 2018 finan­ci­al year.

Swiss Prime Site clo­sed out the 2018 finan­ci­al year with favoura­ble results. Both the core real estate busi­ness and the Ser­vices seg­ment con­tri­but­ed to this plea­sing result. The port­fo­lio of exi­sting pro­per­ties was opti­mi­sed by acqui­si­ti­ons and divest­ment. In addi­ti­on, the pro­ject pipe­line was imple­men­ted accord­ing to plan and aug­men­ted with new pro­jects. Tech­no­lo­gi­cal chan­ges were prio­ri­ti­sed in the group com­pa­nies in the Ser­vices seg­ment. The pro­gress achie­ved will make the busi­ness models of the ver­ti­cal­ly inte­gra­ted real estate-rela­ted busi­ness are­as signi­fi­cant­ly more robust for the future. Sus­tainab­le growth and long-term suc­cess are of para­mount rele­van­ce to the ent­i­re manage­ment team, and in par­ti­cu­lar to René Zahnd, CEO of Swiss Prime Site.

Our stra­te­gy

Invest­ments and focus

Swiss Prime Site Group’s objec­tive is aimed at achie­ving con­stant growth and a sus­tainab­le trend in pro­fi­ta­bi­li­ty. To rea­li­se this goal, the Com­pa­ny has exe­cut­ed sub­stan­ti­al invest­ments in the core Real Estate busi­ness. First-class pro­per­ties with attrac­tive yields loca­ted in Switz­er­land are regar­ded as the focal point of this stra­te­gy. With an 43% sha­re in the port­fo­lio of over CHF 11 bil­li­on, Zurich is cur­r­ent­ly the most important stra­te­gic regi­on. The regi­on around the Lake Gene­va basin is also expe­ri­en­cing strong growth. Swiss Prime Site focu­ses on com­mer­ci­al-use are­as and units, uti­li­sing in-house exper­ti­se to sus­tainab­ly deve­lop, repo­si­ti­on and moder­ni­se pro­per­ties and sites.

Ear­nings diver­si­fi­ca­ti­on and syn­er­gies

Exi­sting real estate-rela­ted busi­ness fields are being expan­ded in order to fur­ther streng­t­hen diver­si­fi­ca­ti­on of the busi­ness model. Swiss Prime Site cur­r­ent­ly boasts attrac­tive group com­pa­nies with Win­ca­sa. Ter­tia­num, Jel­mo­li and Swiss Prime Site Solu­ti­ons. The­se group com­pa­nies pro­vi­de ser­vices for the Group as well as for third par­ties that are hea­vi­ly in demand on the mar­ket, against the back­drop of the core Real Estate busi­ness. The goals are focu­sed on signi­fi­cant­ly boo­sting the con­tri­bu­ti­ons to reve­nues and ope­ra­ting inco­me in addi­ti­on to enhan­cing the syn­er­gies wit­hin the Group and indi­vi­du­al group com­pa­nies.

Inno­va­ti­on and sus­tai­na­bi­li­ty

As Switzerland’s lar­gest listed real estate com­pa­ny, Swiss Prime Site aims to be a lea­der in the realm of inno­va­tions. Hence, the Com­pa­ny has crea­ted posi­ti­ons at the Group level and in the indi­vi­du­al group com­pa­nies that are exclu­si­ve­ly enga­ged in deve­lo­ping inno­va­ti­ve tech­no­lo­gies, tech­ni­ques and pro­ces­ses. The objec­tive is direc­ted at equip­ping the Group for facing future chal­len­ges and chan­ging mar­kets – par­ti­cu­lar­ly amid times of dis­rup­ti­ve tran­si­ti­ons. The key fac­tors inclu­de sus­tai­na­bi­li­ty, in addi­ti­on to inno­va­ti­on and digi­ta­li­sa­ti­on. In all the­se aspects, con­scious sus­tai­na­bi­li­ty-ori­en­ted manage­ment ensu­res the future via­bi­li­ty and suc­cess of the Com­pa­ny.

Invest­ments and focus

Swiss Prime Site Group’s objec­tive is aimed at achie­ving con­stant growth and a sus­tainab­le trend in pro­fi­ta­bi­li­ty. To rea­li­se this goal, the Com­pa­ny has exe­cut­ed sub­stan­ti­al invest­ments in the core Real Estate busi­ness. First-class pro­per­ties with attrac­tive yields loca­ted in Switz­er­land are regar­ded as the focal point of this stra­te­gy. With an 43% sha­re in the port­fo­lio of over CHF 11 bil­li­on, Zurich is cur­r­ent­ly the most important stra­te­gic regi­on. The regi­on around the Lake Gene­va basin is also expe­ri­en­cing strong growth. Swiss Prime Site focu­ses on com­mer­ci­al-use are­as and units, uti­li­sing in-house exper­ti­se to sus­tainab­ly deve­lop, repo­si­ti­on and moder­ni­se pro­per­ties and sites.

Ear­nings diver­si­fi­ca­ti­on and syn­er­gies

Exi­sting real estate-rela­ted busi­ness fields are being expan­ded in order to fur­ther streng­t­hen diver­si­fi­ca­ti­on of the busi­ness model. Swiss Prime Site cur­r­ent­ly boasts attrac­tive group com­pa­nies with Win­ca­sa. Ter­tia­num, Jel­mo­li and Swiss Prime Site Solu­ti­ons. The­se group com­pa­nies pro­vi­de ser­vices for the Group as well as for third par­ties that are hea­vi­ly in demand on the mar­ket, against the back­drop of the core Real Estate busi­ness. The goals are focu­sed on signi­fi­cant­ly boo­sting the con­tri­bu­ti­ons to reve­nues and ope­ra­ting inco­me in addi­ti­on to enhan­cing the syn­er­gies wit­hin the Group and indi­vi­du­al group com­pa­nies.

Inno­va­ti­on and sus­tai­na­bi­li­ty

As Switzerland’s lar­gest listed real estate com­pa­ny, Swiss Prime Site aims to be a lea­der in the realm of inno­va­tions. Hence, the Com­pa­ny has crea­ted posi­ti­ons at the Group level and in the indi­vi­du­al group com­pa­nies that are exclu­si­ve­ly enga­ged in deve­lo­ping inno­va­ti­ve tech­no­lo­gies, tech­ni­ques and pro­ces­ses. The objec­tive is direc­ted at equip­ping the Group for facing future chal­len­ges and chan­ging mar­kets – par­ti­cu­lar­ly amid times of dis­rup­ti­ve tran­si­ti­ons. The key fac­tors inclu­de sus­tai­na­bi­li­ty, in addi­ti­on to inno­va­ti­on and digi­ta­li­sa­ti­on. In all the­se aspects, con­scious sus­tai­na­bi­li­ty-ori­en­ted manage­ment ensu­res the future via­bi­li­ty and suc­cess of the Com­pa­ny.

2019
tar­gets

≤5%

Vacan­cy rate

±45%

Equi­ty ratio

6–8%

Return on equi­ty

Busi­ness model

Swiss Prime Site’s busi­ness model focu­ses on desi­gning and rea­li­sing spaces that com­ple­ment and inter­act with one ano­t­her, crea­ting living spaces in which peop­le feel com­for­ta­ble and can work effec­tively in a con­struc­tive envi­ron­ment. The objec­tives of this busi­ness model are long-term value genera­ti­on and expan­si­on of the pro­per­ty port­fo­lio.

Find out more

The ver­ti­cal­ly inte­gra­ted group com­pa­nies of Swiss Prime Site con­sti­tu­te inte­gral parts and the foun­da­ti­on of the busi­ness model. The value crea­ti­on pro­ces­ses of Swiss Prime Site Immo­bi­li­en, Win­ca­sa, Ter­tia­num, Jel­mo­li and Swiss Prime Site Solu­ti­ons are inten­tio­nal­ly desi­gned to go beyond the inte­gral levels of the busi­ness model and ther­e­by gene­ra­te important con­tri­bu­ti­ons to the long-term suc­cess of the Group.

Find out more

Real estate port­fo­lio

Swiss Prime Site pos­ses­ses a port­fo­lio of high-qua­li­ty pro­per­ties with good value reten­ti­on in prime loca­ti­ons. The­se are chief­ly desi­gned to accom­mo­da­te com­mer­ci­al enter­pri­ses and ser­vice com­pa­nies. The majo­ri­ty of the pro­per­ties are loca­ted in Ger­man-speaking Switz­er­land. Ano­t­her focus regi­on is Gene­va.

Pro­ject pipe­line

One of Swiss Prime Site’s strengths is its abi­li­ty to deve­lop its own pro­jects. This paves the way for the com­pa­ny to ope­ra­te with a high degree of inde­pen­dence from mar­ket cycles. The invest­ment volu­me (inclu­ding land) of Swiss Prime Site’s pro­ject pipe­line amounts to around CHF 2 bil­li­on as at the end of 2018.

Real estate port­fo­lio

Swiss Prime Site pos­ses­ses a port­fo­lio of high-qua­li­ty pro­per­ties with good value reten­ti­on in prime loca­ti­ons. The­se are chief­ly desi­gned to accom­mo­da­te com­mer­ci­al enter­pri­ses and ser­vice com­pa­nies. The majo­ri­ty of the pro­per­ties are loca­ted in Ger­man-speaking Switz­er­land. Ano­t­her focus regi­on is Gene­va.

Pro­ject pipe­line

One of Swiss Prime Site’s strengths is its abi­li­ty to deve­lop its own pro­jects. This paves the way for the com­pa­ny to ope­ra­te with a high degree of inde­pen­dence from mar­ket cycles. The invest­ment volu­me (inclu­ding land) of Swiss Prime Site’s pro­ject pipe­line amounts to around CHF 2 bil­li­on as at the end of 2018.

Busi­ness Insights

Sights set on the tar­get

,
What can a com­pa­ny like Swiss Prime Site do to sup­port inter­na­tio­nal cli­ma­te poli­cy and achie­ve the UN two-degree tar­get, which has been rati­fied by Switz­er­land? This is a questi­on that will occu­py the Group’s com­pa­ny Win­ca­sa …
Pont-Rouge in Lancy, Swiss Prime Site

A new stan­dard at the best loca­ti­on

,
Sus­tainab­le buil­ding is one of the key aspi­ra­ti­ons of Swiss Prime Site Immo­bi­li­en. As a result, the com­pa­ny is focu­sing more stron­gly on the Swiss Sus­tainab­le Buil­ding Stan­dard (SNBS) when it comes to future con­struc­tion pro­jects. The com­mer­ci­al com­plex …

Minor chan­ges with major effects

,
The let­ter we all get once a year detail­ing «ancil­la­ry cost accounts» is anything but ancil­la­ry for Swiss Prime Site Immo­bi­li­en. It doesn’t just pre­sent signi­fi­cant costs for ten­ants or the com­pa­ny its­elf, it also reflects the envi­ron­men­tal impact…

Upstream

,
Any com­pa­ny, such as Swiss Prime Site, that makes a com­mit­ment to sus­tai­na­bi­li­ty must also be very spe­ci­fic in its imple­men­ta­ti­on; for instan­ce, a reduc­tion in CO2 emis­si­ons. This is why the real estate deve­lop­ment com­pa­ny …

A Jel­mo­li­an in body and soul

,
Mor­ten Jen­sen has been Head of Faci­li­ty Manage­ment at Jel­mo­li for more than a quar­ter of a cen­tu­ry. He took us on a tour of the laby­rinth of rooms under the histo­ric depart­ment store and show­ed us what’s invol­ved in kee­ping a …

«You always need a good team.»

,
Sin­ce August, Swiss Prime Site Solu­ti­ons has had a new CEO – and Ana­sta­si­us Tschopp has had a new mis­si­on. We met the 39-year old from Lucer­ne for a chat about sca­le, team sports and his choice to sim­ply hang up his boots.

A vil­la­ge for the Stücki Park

,
Giant leaps are being made towards the future in Basel’s Stücki Park. Ope­ning of the new «Vil­la­ge in Stücki Park» is plan­ned for the end of Octo­ber. The Vil­la­ge will form a place for peop­le to meet. We met the manage­ment and pro­ject …

Trans­for­ma­ti­on – with no ifs, ands or buts

,
A posi­ti­on devo­ted to «digi­tal trans­for­ma­ti­on» can in the inte­rim be found in near­ly every medi­um-sized orga­ni­sa­ti­on, most­ly as a mem­ber of manage­ment. Accord­ing to CEO Oli­ver Hof­mann, such an orga­ni­sa­ti­on would be the wrong approach for Win­ca­sa. San­dro Princi­pe …

Well done: Custo­mer loyal­ty at the Jel­mo­li Mar­ket Grill

,
The name of Jel­mo­li stands for the famous pre­mi­um depart­ment store at Zurich’s best address, and thus for a uni­que shop­ping expe­ri­ence. Not (yet) so well known: One can also enjoy unusual­ly good food …

Think tank with rail link

,
Whe­re the mas­si­ve prin­ting pres­ses of Switzerland’s illu­s­trious NZZ news­pa­per used to turn, space is cur­r­ent­ly being crea­ted for 2 000 work­places in the engi­nee­ring, tech­no­lo­gy and Indu­stry 4.0 sec­tors. A stroll …

Schön­burg gives Bern Brei­ten­rain a new lea­se of life

,
In a prime loca­ti­on in Bern’s Brei­ten­rain quar­ter, Swiss Prime Site Immo­bi­li­en is trans­forming the for­mer postal head­quar­ters into a new cent­re that will impro­ve the qua­li­ty of life in the neigh­bour­hood.

Assi­sted living moves cent­re sta­ge

,
It was not all that long ago that care homes used to be some­what soul­less places, which local muni­ci­pa­li­ties ten­ded to build in more remo­te loca­ti­ons, often at the edge of a forest. While their eld­er­ly resi­dents …