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    SPSN   CH0008038389

SWISS PRIME SITE AG

(SPSN)
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EQS-Adhoc : Swiss Prime Site: successful business year despite pandemic

02/25/2021 | 01:04am EDT
EQS Group-Ad-hoc: Swiss Prime Site AG / Key word(s): Annual Results 
Swiss Prime Site: successful business year despite pandemic 
25-Feb-2021 / 07:00 CET/CEST 
Release of an ad hoc announcement pursuant to Art. 53 KR 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
PRESS RELEASE 
Olten, 25 February 2021 
  . Strengthening the equity ratio to 47.8% and reduction of the LTV to 41.9% 
  . High revaluation gains of CHF 203.4 million 
  . Decrease of vacancy rate from 5.4% in H1 2020 to 5.1% 
  . Confirmation of medium-term targets and attractive dividend yield of 3.9% 
The pandemic had a major social and economic impact in 2020, one that was felt by both the Swiss real estate sector and 
the Swiss Prime Site Group. However, despite the challenging situation, the Company still managed to meet many of its 
targeted goals and achieve good results in the end. In 2020, Swiss Prime Site generated an operating income of CHF 
792.9 million [CHF 1 258.8 million]. The deviation is mainly attributable to the sale of the group company Tertianum on 
28 February 2020. The operating result (EBIT) was CHF 762.3 million [CHF 628.3 million]. The strong increase is due to 
the profit from the sale of Tertianum, which amounted to CHF 204.2 million. EBIT for the core Real Estate business 
amounted to CHF 555.0 million [CHF 572.9 million]. This included revaluation gains of CHF 203.4 million in the property 
portfolio at a fair value of CHF 12.3 billion [CHF 11.8 billion]. The Services segment generated EBIT of CHF 207.3 
million [CHF 55.5 million]. This increase is explained by the previously mentioned sale of Tertianum. The result at 
profit level was CHF 610.4 million [CHF 608.5 million]. In contrast to the previous year, this value only includes a 
marginal positive tax effect of CHF 7.1 million [CHF 172.5 million] from the reversal of deferred tax liabilities 
arising from cantonal reductions in tax rates. Excluding revaluations and all deferred taxes, profit rose to CHF 476.6 
million [CHF 315.7 million]. In all, Swiss Prime Site boosted its equity ratio to 47.8% [44.4%] and reduced leverage, 
thereby significantly strengthening the balance sheet. 
Operating income 
Swiss Prime Site generated operating income of CHF 792.9 million [CHF 1 258.8 million] in 2020. The difference in 
comparison to the previous year is mostly attributable to the sale and deconsolidation of the group company Tertianum 
on 28 February 2020. 
In a challenging market environment, the Real Estate segment generated rental income of CHF 431.0 million (-1.4%). On a 
like-for-like basis, there was a fall of 3.7%. This takes into account a CHF 12.7 million reduction in income caused by 
the effects of the coronavirus pandemic. Around CHF 4 million of this figure was due to lower than planned 
turnover-linked and parking rents, and around CHF 9 million was attributable to the rent waivers granted. Operating 
income came in at CHF 482.9 million [CHF 519.5 million]. Despite the difficult market conditions, it was possible to 
bring vacancies in the portfolio back down to 5.1% [4.7%] after they had risen to 5.4% in the first half of 2020. The 
property portfolio grew by CHF 557.2 million (+4.7%) to CHF 12.3 billion. This increase was due to revaluation gains 
and the completion of the Company's own project developments. At 3.2% [3.5%], the net yield on the real estate 
portfolio is at an attractive level in the market for prime properties. 
The Services segment generated operating income of CHF 378.2 million [CHF 828.4 million]. In comparison to the previous 
year, this only includes two months of results for Tertianum, which largely explains the difference. Capital increases 
enabled Swiss Prime Site Solutions to generate new funds totalling CHF 160 million for its client Swiss Prime 
Investment Foundation and thereby finance some attractive transactions. Income from asset management amounted to CHF 
13.1 million [CHF 13.5 million]. Wincasa generated income from real estate services amounting to CHF 146.2 million [CHF 
148.1 million]. With the digital rental agreement, the transformation of the group company's business model began to 
bear fruit. Jelmoli was heavily affected by the government-imposed lockdown in March, April and May. It was also hit 
hard by the partial restriction of Sunday shopping in the fourth quarter, which is traditionally the busiest period of 
the year for retailers. Income from retail was CHF 110.6 million, down by a considerable 13.4% on the previous year. 
Operating result (EBIT) 
In 2020, Swiss Prime Site increased its operating result (EBIT) by a considerable margin of 21.3% to CHF 762.3 million 
[CHF 628.3 million]. Income from the sale of Tertianum contributed substantially to this rise. 
The core Real Estate business generated EBIT of CHF 555.0 million [CHF 572.9 million]. The 3.1% difference to the 
previous year was attributable to the impact of the coronavirus crisis. On the one hand, rental income dropped by some 
CHF 13 million as a result of the pandemic. On the other hand, the costs involved in handling tenant enquiries 
increased. The operating result includes net revaluation gains of CHF 203.4 million [CHF 204.4 million]. The major part 
of these gains, CHF 164.5 million, relates to existing properties. Projects under construction made up the remaining 
CHF 38.9 million. The average real discount rate as at 31 December 2020 was 2.91%, 15 basis points lower than at the 
end of 2019. Excluding revaluations, the Real Estate segment generated EBIT of CHF 351.6 million [CHF 368.4 million]. 
The pro rata pre-tax profits from sold development projects (Espace Tourbillon and Weltpost Park) and the sale of 
existing property in Berne and Zurich during the year contributed a total of CHF 36.1 million [CHF 37.6 million] to the 
result. 
The Services segment generated EBIT of CHF 207.3 million [CHF 55.5 million]. The significant increase is attributable 
to the profit of CHF 204.2 million from the sale of Tertianum. At CHF 375.0 million [CHF 771.9 million], the operating 
expenses of the Service segment for 2020 were down significantly, due to lower personnel costs following the sale of 
Tertianum. 
Profit 
Swiss Prime Site generated a profit of CHF 610.4 million [CHF 608.5 million] in 2020. In contrast to the previous year, 
this value only includes a marginal positive tax effect of CHF 7.1 million [CHF 172.5 million] from the reversal of 
deferred tax liabilities arising from cantonal reductions in tax rates. Excluding revaluations and all deferred taxes, 
profits rose significantly to CHF 476.6 million [CHF 315.7 million]. This figure takes into account the profit of CHF 
204.2 million resulting from the sale of Tertianum. Financial expenses were reduced to CHF 60.5 million [CHF 70.7 
million] through the new and sustainable refinancing. EPS (earnings per share) was CHF 8.04 [CHF 8.00]. Excluding 
revaluations and all deferred taxes, EPS was CHF 6.27 [CHF 4.14]. 
Balance sheet 
In the fourth quarter of 2020, Swiss Prime Site successfully issued a green bond with a value of CHF 300 million, a 
term of nine years and a coupon of 0.65%. Due to attractive refinancing, the weighted average residual term to maturity 
of interest-bearing financial liabilities increased significantly to 4.8 years [4.2 years] and the interest rate on 
financial liabilites fell to 1.1% [1.2%]. In comparison to the somewhat lower net yield of 3.2% [3.5%] on the property 
portfolio, this implies a very attractive interest rate spread of 2.1% [2.3%]. The sale of Tertianum led to a cash 
inflow of CHF 600.4 million and a total profit of CHF 508.7 million. Of this figure, CHF 304.5 million was a return of 
goodwill recorded directly in the equity and CHF 204.2 million was recorded as profit of the sale in EBIT. In addition, 
conversions of convertible bonds resulted in a marginal increase in shares issued to 75 970 364 [2019: 75 946 349] and 
thus a slight rise in equity by CHF 2.4 million. These effects led to a clear increase in the equity ratio to 47.8% 
[44.4%] and a reduction in the loan-to-value ratio of the property portfolio to 41.9% [45.7%]. NAV after deferred taxes 
rose significantly to CHF 80.11 per share (+11.5%). This takes into account the dividend payout of CHF 3.80 per share 
in April 2020. Swiss Prime Site generated a return on equity of 10.6% [11.5%]. Due to the profit of sale, this was 
significantly higher than the company's long-term target of 6 - 8%. 
Outlook 
For the 2021 financial year and beyond, the management of Swiss Prime Site expects market opportunities for office 
floor space to remain sound. This assessment for Switzerland is based on the shortest commuter times in Europe, an 
occupancy rate for office floor space that was adapted to new working models even before the pandemic and the need for 
more distancing and common areas. The situation for retail remains challenging. Here, Swiss Prime Site expects 
continued positive demand for bricks-and-mortar retail in good locations. The retail space portfolio is primarily 
situated in premium locations. If the general situation for tourism returns to normal in the medium term, there will be 
good opportunities once again for hotels and events. In view of the development projects that were completed in 2020 
and are largely fully let, Swiss Prime Site expects rental income to rise in 2021, subject to unforeseeable upheaval 
linked to the coronavirus pandemic. The portfolio vacancy rate will be reduced to below 5%. On a medium-term horizon, 
Swiss Prime Site is standing by the targets communicated in October 2020. 
Sustainability and CO[2] reduction pathway 
Swiss Prime Site's property portfolio contains high-quality property and locations. The portfolio as a whole also has a 
good sustainability balance sheet. To optimise this further, targeted measures are being taken and investments made as 
part of Swiss Prime Site's CO[2] reduction pathway. The aim is to continuously improve resource consumption and achieve 

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Financials
Sales 2021 856 M 925 M 925 M
Net income 2021 427 M 461 M 461 M
Net Debt 2021 5 162 M 5 582 M 5 582 M
P/E ratio 2021 16,7x
Yield 2021 3,58%
Capitalization 7 054 M 7 623 M 7 627 M
EV / Sales 2021 14,3x
EV / Sales 2022 15,1x
Nbr of Employees 1 455
Free-Float 99,8%
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Number of Analysts 6
Last Close Price 92,85 CHF
Average target price 98,80 CHF
Spread / Average Target 6,41%
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Managers and Directors
RenÚ Zahnd Chief Executive Officer
Markus Meier Chief Financial Officer
Ton BŘchner Chairman-Supervisory Board
Christopher Michael Chambers Member-Supervisory Board
Mario F. Seris Vice Chairman-Supervisory Board