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1. Company Snapshot

1.a. Company Description

Swiss Prime Site AG, a real estate company, engages in buying and selling, managing, and developing investment properties in Switzerland.The company operates in two segments, Real Estate and Services.The Real Estate segment purchases, sells, leases, and develops properties.


The Services segment engages in the real estate related service and retail and asset management business.Swiss Prime Site AG was founded in 1999 and is headquartered in Olten, Switzerland.

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1.b. Last Insights on SPSN

Swiss Prime Site AG's recent performance was buoyed by a record low vacancy rate, as highlighted in its Full Year 2025 Earnings Call. The company's asset management segment also exhibited significant growth. Despite challenges in rental income and renovation costs, the firm's robust operational metrics are a positive indicator. With 51% ownership by retail investors and 49% by institutions, key decisions are influenced by a broad shareholder base. A share buyback program could further enhance shareholder value by reducing outstanding shares.

1.c. Company Highlights

2. Swiss Prime Site's Strong FY 2025 Earnings Driven by Resilient Economy and Supportive Financial Conditions

Swiss Prime Site reported a robust financial performance in FY 2025, with rental income decreasing by 1.4% due to the closure of Jelmoli and Fraumunsterpost, while asset management revenues grew by 18% to a record CHF 84 million. Operating expenses decreased by 17%, driven by the discontinuation of department store operations, resulting in a 3.4% increase in EBITDA to CHF 410 million on a comparable basis. EPS remained unchanged at CHF 4.22, but FFO I per share increased by 3.2% in absolute numbers. The actual EPS came out at CHF 1.85, beating estimates of CHF 1.46.

Publication Date: Feb -09

📋 Highlights
  • Asset Management Growth: Achieved 18% top-line growth to CHF 84 million, driven by CHF 1.7 billion in transactions.
  • Financial Leverage Reduction: Secured EUR 500 million Eurobond at 0.94% interest rate, achieving 38.1% LTV net for the Real Estate segment.
  • Portfolio Valuation Expansion: Real estate portfolio valued at CHF 13.9 billion, up from CHF 13 billion, exceeding growth targets.
  • Operational Efficiency: EBITDA rose 3.4% to CHF 410 million, with a 30% profit surge in Swiss Prime Site Solutions.
  • Market Position Strengthening: 60% of portfolio concentrated in Central Zurich, 30% market share in Swiss real estate deals, and 3.7% record-low vacancy rate.

Segmental Performance

The company's asset management division saw significant growth, with CHF 1 billion in new money and a record CHF 14.3 billion in assets under management. The real estate portfolio was valued at CHF 13.9 billion, with a significant increase in value driven by positive growth in rental income and lower discount rates. Marcel Kucher mentioned that the revaluation result was 50-50 in terms of discount factor reduction and like-for-like growth.

Valuation and Outlook

Swiss Prime Site's valuation metrics indicate a relatively high P/E Ratio of 28.21 and P/B Ratio of 1.53, suggesting that the market has already priced in some of the company's growth prospects. However, with a dividend yield of 2.57%, the stock remains attractive to income investors. The company's guidance for next year's FFO is expected to improve to CHF 4.25 to CHF 4.30 on a per-share basis, with analysts estimating revenue growth at 4.2%.

Operational Highlights

The company's operational performance was marked by a record low vacancy rate of 3.7%, with an underlying 3.2% operational vacancy and 0.5% for strategic development. The average WAULT increased by almost 0.5 year to 5.3 years, driven by extensions of EY and Globus. Swiss Prime Site is also making progress in its sustainability initiatives, with a 10% year-on-year advancement in terms of CO2 reduction and a certification process underway.

Growth Opportunities

The company is well-positioned to capitalize on growth opportunities, with a strong pipeline of potential acquisitions and a robust asset management platform. Marcel Kucher mentioned that they are looking to deploy the raised cash into good acquisitions on the direct market at the correct yield without diluting the payout ratio or the quality of existing products. With a net yield of roughly 3.7% and a high liquidity reserve of CHF 1.1 billion, the company is poised for continued success.

3. NewsRoom

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Concerns Surrounding Swiss Prime Site's (VTX:SPSN) Performance

Feb -13

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Swiss Prime Site AG (WBO:SPSN) Full Year 2025 Earnings Call Highlights: Record Low Vacancy and ...

Feb -07

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Swiss Prime Site AG (VTX:SPSN) most popular amongst retail investors who own 51% of the shares, institutions hold 49%

Dec -18

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Is Swiss Prime Site AG's (VTX:SPSN) Stock On A Downtrend As A Result Of Its Poor Financials?

Sep -25

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Swiss Prime Site (VTX:SPSN) Strong Profits May Be Masking Some Underlying Issues

Aug -29

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Broker Revenue Forecasts For Swiss Prime Site AG (VTX:SPSN) Are Surging Higher

Aug -27

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Swiss Prime Site First Half 2025 Earnings: EPS: CHF2.07 (vs CHF2.14 in 1H 2024)

Aug -23

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While institutions own 48% of Swiss Prime Site AG (VTX:SPSN), individual investors are its largest shareholders with 52% ownership

Jul -10

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.61%)

6. Segments

Real Estate

Expected Growth: 3.5%

Swiss Prime Site AG's Real Estate segment is poised for growth driven by Switzerland's stable economy, increasing demand for high-quality properties, and the company's strategic focus on acquiring and developing prime assets, ensuring steady rental income and capital appreciation.

Retail

Expected Growth: 3.5%

Swiss Prime Site AG's retail segment is expected to grow driven by increasing demand for omnichannel retail experiences, rising e-commerce penetration, and strategic location of properties in high-traffic areas, attracting a diverse range of businesses.

Eliminations

Expected Growth: 3.5%

Swiss Prime Site AG's elimination of non-core assets is expected to drive growth through increased focus on core business activities, improved operational efficiency, and enhanced resource allocation, leading to a forecasted CAGR of 3.5%.

Asset Management

Expected Growth: 4.5%

Swiss Prime Site AG's Asset Management is poised for growth driven by increasing demand for real estate investment solutions, rising property values, and a strong track record of optimizing returns for investors.

Corporate & Shared Services

Expected Growth: 5.5%

The Corporate & Shared Services segment of Swiss Prime Site AG is expected to grow driven by increasing demand for centralized support functions, such as HR, IT, and finance, to optimize business operations and improve efficiency.

7. Detailed Products

Real Estate

Swiss Prime Site AG's real estate segment offers a diverse portfolio of high-quality properties, including office buildings, retail spaces, and residential units, primarily located in Switzerland.

Real Estate Services

The company provides a range of real estate services, including property management, facility management, and real estate consulting, to support property owners and tenants.

Retail and Commercial Centers

Swiss Prime Site AG develops and operates retail and commercial centers, offering a unique shopping and leisure experience to customers.

Hotel and Hospitality

The company's hotel and hospitality segment comprises a portfolio of high-end hotels and resorts, offering luxurious accommodations and exceptional service.

Development and Construction

Swiss Prime Site AG's development and construction segment focuses on the development of new properties and the renovation of existing ones, ensuring high-quality and sustainable buildings.

8. Swiss Prime Site AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Swiss Prime Site AG is medium due to the availability of alternative real estate investment options, such as direct property investments or other real estate investment trusts.

Bargaining Power Of Customers

The bargaining power of customers for Swiss Prime Site AG is low due to the company's diversified tenant base and long-term lease agreements, which reduce the dependence on individual tenants.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Swiss Prime Site AG is medium due to the company's dependence on a few large construction companies and material suppliers, but the company's scale and reputation help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants for Swiss Prime Site AG is low due to the high barriers to entry in the Swiss real estate market, including the need for significant capital and expertise.

Intensity Of Rivalry

The intensity of rivalry for Swiss Prime Site AG is high due to the competitive nature of the Swiss real estate market, with several large players competing for tenants and investment opportunities.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.41%
Debt Cost 4.24%
Equity Weight 54.59%
Equity Cost 6.26%
WACC 5.34%
Leverage 83.19%

11. Quality Control: Swiss Prime Site AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Inwit

A-Score: 6.1/10

Value: 4.0

Growth: 7.2

Quality: 6.3

Yield: 8.8

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Shurgard

A-Score: 5.8/10

Value: 5.8

Growth: 4.9

Quality: 8.0

Yield: 6.2

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Swiss Prime Site

A-Score: 5.5/10

Value: 1.9

Growth: 2.1

Quality: 5.7

Yield: 5.6

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Scout24

A-Score: 5.5/10

Value: 1.6

Growth: 6.8

Quality: 8.6

Yield: 2.5

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
CA Immobilien

A-Score: 5.5/10

Value: 4.1

Growth: 2.3

Quality: 5.5

Yield: 8.8

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
CPI Property Group

A-Score: 4.1/10

Value: 4.5

Growth: 6.0

Quality: 3.3

Yield: 0.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

137.9$

Current Price

137.9$

Potential

-0.00%

Expected Cash-Flows