In its 25th year, Swiss Prime Site (SPS) — the company behind prominent Zurich properties like the Prime Tower and the Jelmoli building — has delivered a solid result.

Revenue saw an uptick compared to the same period last year, increasing from 307.6 million francs to 317.4 million francs. A notable highlight was the substantial 6 percent growth in rental income from properties, which rose to 232.0 million francs.

Fundamenta acquired

Revenue from asset management, which Swiss Prime Site operates through its subsidiary Swiss Prime Site Solutions, also grew from 22.1 to 27.0 million francs. According to the company's communication, in addition to organic growth, the acquisition of Fundamenta, the cross-border company founded by David and Javier Garcia, contributed to this increase for the first time this spring (as reported by finews.com).

At the same time, operating expenses were reduced from 231.4 to 119.6 million francs.

Operating profit of 231.5 million francs

As a result, operating profit amounted to 231.5 million francs compared to just 95.7 million in the same period last year. Additionally, SPS recorded valuation gains of around 30.4 million francs on its real estate in the first six months of the current year. In the same period last year, there had been a loss of 98.8 million francs.

Does this mean that shareholders can look forward to significantly higher profits? Only to a limited extent. Despite Swiss Prime Site presenting strong numbers at the operational level, the profit for shareholders is slightly lower than in the first half of 2023: 167.7 million versus 215.5 million in the previous year.

Despite this, shareholders will receive less money

This is explained by two M&A transactions: the sale of Wincasa in the first half of 2023 and the purchase of Fundamenta in the first half of 2024. In the income statement of the 2024 half-year report, SPS lists a «profit after income taxes from discontinued operations» amounting to 149.6 million francs for the period January to June 2023. This includes «the contribution to profit and the gain from the sale of discontinued operations.»

At the end of March 2023, SPS sold Wincasa, a company primarily involved in the management of residential properties, to Implenia, which resulted in a non-operational book profit of around 140 million francs. Such income was absent in the first half of 2024, but there were expenses related to the acquisition of Fundamenta.

«Defensive risk profile­»

SPS Chairman Toni Büchner and CEO René Zahnd are optimistic about the second half of the year. This optimism is supported by the handover of several major properties to new tenants, such as Stücki Park in Basel and the move of Tertianum into Paradiso-Lugano.

Further revenue growth is also expected in asset management, driven by a «very defensive risk profile.» In the first half of the year, «around 80 percent of revenues come from recurring fees, meaning they are not dependent on transactions.»