Swiss Prime Site made good progress in 2018 in its core business and the vertically integrated real estate-related business fields. Robust economic performance and stable business conditions on the Swiss capital market allowed us to continue to implement our strategy according to plan.
2018 was a successful financial year for the entire group. Our results at all levels reflected the goals we had set ourselves. Operating income increased by 5.1% to CHF 1’214.1 million. It is gratifying to note that growth was underpinned by both the Real Estate and Services segments. Profits rose by 1.8% to CHF 310.9 million. This includes profits of CHF 67.6 million from revaluation of investment properties. In addition, important transactions allowed us to increase the value of the portfolio to CHF 11.2 billion. We also made important progress within our development pipeline. In Geneva both of our important urban development projects, «Espace Tourbillon» and «Alto Pont-Rouge», are making very good headway. The modification of the «Schönburg» building has progressed, enabling staged hand-over to tenants this year. In Basel, the former Stücki shopping centre is currently experiencing a repositioning as an attractive mixed-used site with high demand for floorspace for laboratories, offices, research and health. In Zurich, we have begun work on the modification of a large site in Schlieren, which is designed as an important hub for knowledge transfer, entrepreneurship and innovation. The acquisition of the «West-Log» project in Zurich as an urban logistics property with great future potential represented a significant enhancement to our pipeline. In the real estate-related business fields, we are investing in digitalisation and expansion, thereby strengthening our individual business models.
In short, we are happy with the past financial year, and we are optimistic about the coming year. I would like to thank you, our valued customers and partners, for your trust and support. My thanks also go to all employees across the entire Swiss Prime Site Group, the Executive Board and my colleagues on the Board of Directors.
Hans Peter Wehrli
Chairman of the Board of Directors