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 an inno­va­ti­on lea­der. 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 an inno­va­ti­on lea­der. 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

Mar­kets

Swiss Prime Site Group ope­ra­tes in the Swiss real estate mar­ket with its core busi­ness. The most signi­fi­cant influ­en­cing fac­tors for the Com­pa­ny inclu­de the ren­tal, tran­sac­tions and capi­tal mar­kets. Other important impul­ses emana­te from the natio­nal retail tra­de as well as the demand for seni­or ser­vices.

+7%

average annu­al per­for­mance (total return) of the Swiss Prime Site AG
sha­re from listing in 2000 to the end of 2018.

Ren­tal mar­ket

From June 2017 to June 2018, around 63 000 posi­ti­ons were crea­ted in the ser­vices sec­tor, gene­ra­ting increa­sing demand for office space. Demand deve­lo­ped at a dyna­mic pace, in par­ti­cu­lar in the major cen­tres important for Swiss Prime Site such as Zurich and Basel, and signi­fi­cant ren­tal con­tracts were fina­li­sed. The mar­ket for retail floor space remai­ned chal­len­ging. Bricks and mor­tar stores, and in par­ti­cu­lar shop­ping cen­tres, are facing strong com­pe­ti­ti­on from e-com­mer­ce. Swiss Prime Site bene­fits from hol­ding pro­per­ties in high-traf­fic cen­tral loca­ti­ons that enjoy strong demand. This made it pos­si­ble to sign fol­low-up lea­ses, in some cases at hig­her rent pri­ces, for floor space that had beco­me avail­ab­le. Given that the demand for the urban micro-dis­tri­bu­ti­on of goods is likely to increa­se, this will open up addi­tio­nal oppor­tu­nities for Swiss Prime Site. The Com­pa­ny sees gre­at oppor­tu­nities in urban logi­stics and is alrea­dy inve­sting in two very pro­mi­sing pro­jects in Gene­va and Zurich.

 

Tran­sac­tions mar­ket

In recent years, the strong demand for invest­ment pro­per­ties has resul­ted in signi­fi­cant increa­ses in the value of exi­sting pro­per­ties, accom­pa­nied by com­pres­si­on of yields on the tran­sac­tions mar­ket. Over the past year, the yields on prime office and retail pro­per­ties have sta­bi­li­sed at a low level. Swiss Prime Site made use of the con­si­dera­ble inte­rest in invest­ment pro­per­ties, achie­ving pro­fi­ta­ble sales such as the sale of resi­den­ti­al pro­per­ties at «Welt­post Park» in Ber­ne. The Com­pa­ny also inve­sted in its own real estate deve­lop­ment pro­jects, which, unli­ke the embatt­led tran­sac­tions mar­ket, per­form above-average net yields of around 5%. Swiss Prime Site’s nume­rous pro­jects in the area of assi­sted living (resi­den­ti­al and ger­ia­tric care cen­tres) are also satis­fy­ing the sus­tai­ned demand for the ser­vices of group com­pa­ny Ter­tia­num.

 

Capi­tal mar­ket

Both direct and indi­rect real estate invest­ments con­ti­nue to pro­fit from high inve­stor demand. Swiss Prime Site took advan­ta­ge of the favoura­ble mar­ket cli­ma­te in the late sum­mer of 2018 for a capi­tal increa­se total­ling around CHF 331 mil­li­on. The plea­sing sub­scrip­ti­on result of over 98% con­fir­med the attrac­tiveness of Swiss Prime Site sha­res. In addi­ti­on, a con­ver­ti­ble and a fixed inte­rest bond were pla­ced in 2018, with pro­ce­eds of the issue total­ling CHF 490 mil­li­on. For its part, Swiss Prime Invest­ment Foun­da­ti­on, the assets of which are mana­ged through Swiss Prime Site Solu­ti­ons, under­took a suc­cess­ful sha­re issue in the amount of CHF 221 mil­li­on. This demon­stra­tes the sus­tai­ned demand from pen­si­on funds for ser­vices in the field of real estate asset manage­ment. While the Swiss Prime Site sha­re out­per­for­med in the first half of 2018 as a result, in the second half of the year rising bond returns in the US and addi­tio­nal capi­tal increa­ses in Switz­er­land led to con­trac­tions in the Swiss real estate sha­re sec­tor. With an average annu­al per­for­mance (total return) of around 7% sin­ce listing, Swiss Prime Site sha­res have gene­ra­ted more attrac­tive returns than the sec­tor and the mar­ket on average.

 

Ren­tal mar­ket

 

From June 2017 to June 2018, around 63 000 posi­ti­ons were crea­ted in the ser­vices sec­tor, gene­ra­ting increa­sing demand for office space. Demand deve­lo­ped at a dyna­mic pace, in par­ti­cu­lar in the major cen­tres important for Swiss Prime Site such as Zurich and Basel, and signi­fi­cant ren­tal con­tracts were fina­li­sed. The mar­ket for retail floor space remai­ned chal­len­ging. Bricks and mor­tar stores, and in par­ti­cu­lar shop­ping cen­tres, are facing strong com­pe­ti­ti­on from e-com­mer­ce. Swiss Prime Site bene­fits from hol­ding pro­per­ties in high-traf­fic cen­tral loca­ti­ons that enjoy strong demand. This made it pos­si­ble to sign fol­low-up lea­ses, in some cases at hig­her rent pri­ces, for floor space that had beco­me avail­ab­le. Given that the demand for the urban micro-dis­tri­bu­ti­on of goods is likely to increa­se, this will open up addi­tio­nal oppor­tu­nities for Swiss Prime Site. The Com­pa­ny sees gre­at oppor­tu­nities in urban logi­stics and is alrea­dy inve­sting in two very pro­mi­sing pro­jects in Gene­va and Zurich.

Tran­sac­tions mar­ket

 

In recent years, the strong demand for invest­ment pro­per­ties has resul­ted in signi­fi­cant increa­ses in the value of exi­sting pro­per­ties, accom­pa­nied by com­pres­si­on of yields on the tran­sac­tions mar­ket. Over the past year, the yields on prime office and retail pro­per­ties have sta­bi­li­sed at a low level. Swiss Prime Site made use of the con­si­dera­ble inte­rest in invest­ment pro­per­ties, achie­ving pro­fi­ta­ble sales such as the sale of resi­den­ti­al pro­per­ties at «Welt­post Park» in Ber­ne. The Com­pa­ny also inve­sted in its own real estate deve­lop­ment pro­jects, which, unli­ke the embatt­led tran­sac­tions mar­ket, per­form above-average net yields of around 5%. Swiss Prime Site’s nume­rous pro­jects in the area of assi­sted living (resi­den­ti­al and ger­ia­tric care cen­tres) are also satis­fy­ing the sus­tai­ned demand for the ser­vices of group com­pa­ny Ter­tia­num.

Capi­tal mar­ket

 

Both direct and indi­rect real estate invest­ments con­ti­nue to pro­fit from high inve­stor demand. Swiss Prime Site took advan­ta­ge of the favoura­ble mar­ket cli­ma­te in the late sum­mer of 2018 for a capi­tal increa­se total­ling around CHF 331 mil­li­on. The plea­sing sub­scrip­ti­on result of over 98% con­fir­med the attrac­tiveness of Swiss Prime Site sha­res. In addi­ti­on, a con­ver­ti­ble and a fixed inte­rest bond were pla­ced in 2018, with pro­ce­eds of the issue total­ling CHF 490 mil­li­on. For its part, Swiss Prime Invest­ment Foun­da­ti­on, the assets of which are mana­ged through Swiss Prime Site Solu­ti­ons, under­took a suc­cess­ful sha­re issue in the amount of CHF 221 mil­li­on. This demon­stra­tes the sus­tai­ned demand from pen­si­on funds for ser­vices in the field of real estate asset manage­ment. While the Swiss Prime Site sha­re out­per­for­med in the first half of 2018 as a result, in the second half of the year rising bond returns in the US and addi­tio­nal capi­tal increa­ses in Switz­er­land led to con­trac­tions in the Swiss real estate sha­re sec­tor. With an average annu­al per­for­mance (total return) of around 7% sin­ce listing, Swiss Prime Site sha­res have gene­ra­ted more attrac­tive returns than the sec­tor and the mar­ket on average.

Risk Manage­ment

Swiss Prime Site places signi­fi­cant empha­sis on its approach toward oppor­tu­nities as well as risks and has the­re­fo­re imple­men­ted a syste­ma­tic and con­ti­nuous risk manage­ment pro­cess. The goals of that pro­cess are to screen stra­te­gies and ope­ra­tio­nal activi­ties for oppor­tu­nities and thre­ats, assess the risks that are iden­ti­fied and take appro­pria­te mea­su­res to con­trol the­se risks.

At the same time, the focal point is direc­ted at ade­qua­te­ly miti­ga­ting any rele­vant poten­ti­al los­ses, as well as con­scious­ly seiz­ing oppor­tu­nities. Risk manage­ment the­re­fo­re pro­vi­des a signi­fi­cant con­tri­bu­ti­on to the con­ti­nui­ty and suc­cess­ful deve­lop­ment of the Com­pa­ny. Risk manage­ment is an ongo­ing pro­cess in which all of the Company’s employees are basi­cal­ly invol­ved. Respon­si­bi­li­ty is allo­ca­ted to the various bodies of the respec­tive com­pa­ny, such as the Board of Direc­tors and Exe­cu­ti­ve Board, as appro­pria­te to their level. The princi­ples and pro­ces­ses of risk manage­ment are set out in sepa­ra­te regu­la­ti­ons.

The fol­lo­wing bodies or posi­ti­ons are invol­ved in the pro­cess:

  • Board of Direc­tors
  • Audit Com­mit­tee of the Board of Direc­tors
  • Mem­bers of exe­cu­ti­ve manage­ment
  • Inter­nal risk manage­ment
  • Inter­nal audit

The over­view shows the Swiss Prime Site risk manage­ment pro­cess.

The types of risks spe­ci­fied below are addres­sed by means of appro­pria­te selec­tion and diver­si­fi­ca­ti­on of pro­per­ties and ten­ants, adjust­ments of the lea­se expi­ry pro­fi­le, con­struc­tion mea­su­res, assuran­ces of finan­ce, an appro­pria­te debt ratio, and regu­lar moni­to­ring of pro­ces­ses and pro­ce­du­res.

  • Spe­ci­fic real estate risks
  • Envi­ron­men­tal and cli­ma­te risks
  • Risks asso­cia­ted with con­struc­tion activi­ties
  • Mar­ket risk and diver­si­fi­ca­ti­on
  • Valua­ti­on risks
  • Credit, refi­nan­cing and liqui­di­ty risks
  • Risks in the Ser­vices seg­ment
  • Regu­la­to­ry and fis­cal risks
  • Risks asso­cia­ted with liti­ga­ti­on

Risk Manage­ment

Swiss Prime Site places signi­fi­cant empha­sis on its approach toward oppor­tu­nities as well as risks and has the­re­fo­re imple­men­ted a syste­ma­tic and con­ti­nuous risk manage­ment pro­cess. The goals of that pro­cess are to screen stra­te­gies and ope­ra­tio­nal activi­ties for oppor­tu­nities and thre­ats, assess the risks that are iden­ti­fied and take appro­pria­te mea­su­res to con­trol the­se risks.

At the same time, the focal point is direc­ted at ade­qua­te­ly miti­ga­ting any rele­vant poten­ti­al los­ses, as well as con­scious­ly seiz­ing oppor­tu­nities. Risk manage­ment the­re­fo­re pro­vi­des a signi­fi­cant con­tri­bu­ti­on to the con­ti­nui­ty and suc­cess­ful deve­lop­ment of the Com­pa­ny. Risk manage­ment is an ongo­ing pro­cess in which all of the Company’s employees are basi­cal­ly invol­ved. Respon­si­bi­li­ty is allo­ca­ted to the various bodies of the respec­tive com­pa­ny, such as the Board of Direc­tors and Exe­cu­ti­ve Board, as appro­pria­te to their level. The princi­ples and pro­ces­ses of risk manage­ment are set out in sepa­ra­te regu­la­ti­ons.

The over­view shows the Swiss Prime Site risk manage­ment pro­cess.

The fol­lo­wing bodies or posi­ti­ons are invol­ved in the pro­cess:

  • Board of Direc­tors
  • Audit Com­mit­tee of the Board of Direc­tors
  • Mem­bers of exe­cu­ti­ve manage­ment
  • Inter­nal risk manage­ment
  • Inter­nal audit

The types of risks spe­ci­fied below are addres­sed by means of appro­pria­te selec­tion and diver­si­fi­ca­ti­on of pro­per­ties and ten­ants, adjust­ments of the lea­se expi­ry pro­fi­le, con­struc­tion mea­su­res, assuran­ces of finan­ce, an appro­pria­te debt ratio, and regu­lar moni­to­ring of pro­ces­ses and pro­ce­du­res.

  • Spe­ci­fic real estate risks
  • Envi­ron­men­tal and cli­ma­te risks
  • Risks asso­cia­ted with con­struc­tion activi­ties
  • Mar­ket risk and diver­si­fi­ca­ti­on
  • Valua­ti­on risks
  • Credit, refi­nan­cing and liqui­di­ty risks
  • Risks in the Ser­vices seg­ment
  • Regu­la­to­ry and fis­cal risks
  • Risks asso­cia­ted with liti­ga­ti­on

Inte­gra­ted added value

Finan­ci­al capi­tal

1214

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

11204

CHF mil­li­on Port­fo­lio value
+5.4% year-on-year

Incor­po­ra­tes all the finan­ci­al resour­ces that can be uti­li­sed to deve­lop and ren­der pro­ducts and ser­vices. In addi­ti­on to inco­me from ope­ra­ting activi­ties, this inclu­des funds released from tar­ge­ted divest­ment and funds rai­sed on the capi­tal mar­kets.

By group com­pa­nies

Swiss Prime Site Group Swiss Prime Site Immo­bi­li­en Win­ca­sa Ter­tia­num Jel­mo­li Swiss Prime Site Solu­ti­ons
Inco­me (seg­ments) CHF mil­li­on 1214 509 144 397 131 8.5
Invest­ments in trai­ning and deve­lop­ment mea­su­red against total pay­roll % 0.90 0.82 1.01 0.85 0.99 0.46

Selec­ted key figu­res for the Group and indi­vi­du­al group com­pa­nies

Phy­si­cal capi­tal

190

Pro­per­ties
+1.1% year-on-year

1.6

mil­li­on m2 floor space
-0.5% year-on-year

4.8

% vacan­cy rate
-7.7% year-on-year

For us, this poten­ti­al is in the form of real estate and other phy­si­cal­ly con­struc­ted pro­per­ties. In addi­ti­on to its deve­lo­ped, uti­li­sed, ren­ted or sold real estate, Swiss Prime Site’s phy­si­cal capi­tal com­pri­ses all invest­ments that can be lever­aged as a pro­duct or ser­vice.

Selec­ted key figu­res for the Group and indi­vi­du­al group com­pa­nies

Intel­lec­tu­al capi­tal

515

Ana­ly­sed trend signals
+71.7% year-on-year

12

Inno­va­ti­on pro­jects
-60% year-on-year

Ongo­ing deve­lop­ment of exper­ti­se wit­hin an orga­ni­sa­ti­on and pro­duc­tive coope­ra­ti­on with part­ners gene­ra­tes intan­gi­ble assets such as patents, trade­marks, soft­ware, rights and licen­ces. Systems and pro­ces­ses that deri­ve from the­se assets crea­te spe­ci­fic com­pe­ti­ti­ve advan­ta­ges in exi­sting mar­kets and actively help to cap­tu­re future poten­ti­al.

Selec­ted key figu­res for the Group and indi­vi­du­al group com­pa­nies

Human capi­tal

6295

employees
+6.5% year-on-year

25.86

% fluc­tua­ti­on rate
+19.3% year-on-year

4.97

% absen­tee rate
+16.1% year-on-year

Human capi­tal encom­pas­ses all the know­ledge, skills and expe­ri­ence of employees that is nee­ded to bring our pro­ducts and ser­vices to the mar­ket. The moti­va­ti­on and inno­va­ti­ve spi­rit of the peop­le who work for Swiss Prime Site is intrin­si­cal­ly lin­ked to the imple­men­ta­ti­on of our stra­te­gy and the suc­cess­ful sale of our pro­ducts and ser­vices.

By group com­pa­nies

Swiss Prime Site Group Swiss Prime Site Immo­bi­li­en Win­ca­sa Ter­tia­num Jel­mo­li Swiss Prime Site Solu­ti­ons
Employees num­ber 6295 59 920 4679 628 9
Fluc­tua­ti­on rate % 25.86 8.33 21.51 26.64 28.40 0.00
Absen­tee rate % 4.97 0.94 2.17 5.65 4.50 0.33

Selec­ted key figu­res for the Group and indi­vi­du­al group com­pa­nies

Rela­ti­onship capi­tal

10584

Num­ber of regi­ste­red share­hol­ders
+1.2% year-on-year

100

% accep­tan­ce of agen­da items AGM
unch­an­ged year-on-year

Rep­res­ents the net­work value of all sta­ke­hol­der and cli­ent rela­ti­onships. Sharing com­mon objec­tives and values and crea­ting a solid foun­da­ti­on of trust is a strong basis on which to exchan­ge valu­able infor­ma­ti­on. Forming rela­ti­onships is key to buil­ding repu­ta­ti­on and crea­ting brand value.

Selec­ted key figu­res for the Group and indi­vi­du­al group com­pa­nies

Natu­ral capi­tal

62852.6

Ener­gy con­sump­ti­on MWh
-6.2% year-on-year

6888

CO2 emis­si­ons (Scope 1, 2, 3) tCO2e
-22.1% year-on-year

551946

Water con­sump­ti­on m3
+13.6% year-on-year

Envi­ron­men­tal resour­ces from rene­wa­ble and non-rene­wa­ble sources nee­ded now and in the future to ren­der ser­vices. Mana­ging soil, ener­gy and water resour­ces respon­si­b­ly is a major prio­ri­ty for activi­ties across our real estate busi­ness.

By group com­pa­nies

Swiss Prime Site Group Swiss Prime Site Immo­bi­li­en Win­ca­sa Ter­tia­num Jel­mo­li Swiss Prime Site Solu­ti­ons
Natu­ral capi­tal (Ser­vices)
Ener­gy con­sump­ti­on MWh 62852.6 373.5 3776.4 49261.2 9397.2 44.3
CO2 emis­si­ons (Scope 1, 2, 3) tCO2e 6888 33.8 502 5908 440 4
COinten­si­ty per m2 kg CO2-eq/m2 13.8 16.46 20.79  13.55 12 16.5
COinten­si­ty per FTE kg CO2-eq/FTE 1360.5 642.6 647.7 1582.8 887.1 615.4
Water con­sump­ti­on m3 551946 945 17465 499961 33448 127.2

Selec­ted key figu­res for the Group and indi­vi­du­al group com­pa­nies