(Financial) services Real estate group Swiss Prime Site earns more in the first half of the year

Swiss Prime Site made operational progress in the first half of the year. The bottom line was a significantly higher net profit.

According to figures released on Thursday, the largest listed Swiss real estate group increased rental income by 6 percent to CHF 232.0 million in the first half of 2024. New construction projects in Zurich, Basel and Geneva contributed to this. The vacancy rate has also fallen.

SPS also set higher rents for new lettings and re-lettings. Accordingly, the operating profit (EBITDA) of the real estate segment rose by a good 7 percent to just under 200 million. Meanwhile, profit before revaluations was only half as high at CHF 151.2 million, after the sale of Wincasa in particular had had a positive impact in the previous year.

Revaluation of the portfolio

Following a devaluation of the SPS portfolio of CHF 99 million in the previous year, there was now a revaluation of CHF 30 million. Including revaluations, the profit thus rose to CHF 164.7 million from CHF 65.9 million in the previous year.

The increase is due exclusively to operational improvements such as higher new rental agreements, lower vacancy rates and lower property costs, as SPS emphasizes.

Overall, the value of the properties increased by CHF 73 million to CHF 13.2 billion compared to the end of 2023 due to a combination of valuation adjustments, sales and investments in developments. The vacancy rate is stated at 3.6 percent.

With these figures, SPS has exceeded analysts' expectations. Investors jumped on the bandwagon in early trading, with the shares gaining 1.1 percent to 91.85 francs shortly after the opening.