Swiss Prime Site lifts FFO in H1 2025, rental income dips on projects

Published 21/08/2025, 06:36
© Reuters

Investing.com -- Swiss Prime Site AG (SIX:SPSN) on Thursday reported higher funds from operations in the first half of 2025, with FFO I rising 6.4% to CHF 166.5 million. 

On a per share basis, FFO I increased 3.4% to CHF 2.10, compared with CHF 2.03 a year earlier, despite a larger number of shares following a CHF 300 million capital increase in February.

Total (EPA:TTEF) operating income fell 13% to CHF 276.3 million from CHF 317.4 million in the prior-year period. 

Rental income declined 2.8% to CHF 225.5 million, reflecting temporary impacts from redevelopment projects including Destination Jelmoli, Fraumünsterpost and Talackerstrasse, as well as property sales in late 2024. 

On a like-for-like basis, rental income rose 2.2%. Retail income dropped sharply to CHF 11.4 million from CHF 55.9 million, as Jelmoli was closed at the end of February.

Asset management income increased 41% to CHF 38 million, driven by higher average assets under management of CHF 13.7 billion and capital raises of CHF 540 million. 

The full-period consolidation of Fundamenta contributed to the rise. EBITDA in the segment rose 64% to CHF 23.9 million.

EBITDA before revaluations and sales remained broadly stable at CHF 199.5 million, compared with CHF 201.3 million a year earlier. 

Group EBIT advanced 30% to CHF 301.2 million, supported by CHF 102 million in revaluation gains, mainly from new lettings and lower property costs.

Swiss Prime Site reported a property portfolio valued at CHF 13.3 billion at the end of June, up from CHF 13.1 billion at year-end 2024. 

Six properties were sold for CHF 70 million at prices averaging more than 4% above fair value, while acquisitions included prime assets in Geneva and Lausanne. The vacancy rate stood at 4%, compared with 3.8% at the end of 2024.

The company maintained a loan-to-value ratio of 38.4%, little changed from 38.3% at year-end. Liquidity was just under CHF 1 billion, supplemented by CHF 913 million in unused, contractually committed credit lines.

Swiss Prime Site confirmed its full-year guidance, targeting FFO I of CHF 4.10 to CHF 4.15 per share and a loan-to-value ratio below 39%.

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