1H26: Swiss Prime Site delivers a strong operating result and sustained growth; FFO I of CHF 2.15 per share (+2.4%)

Marcel Kucher, CEO of Swiss Prime Site: “The first half of 2026 confirms Swiss Prime Site’s strong market position. We signed major contracts with new and existing tenants at attractive conditions, continued to focus our portfolio on prime locations and reached important milestones in the development of the Prime Tower Site and in Otelfingen. In Asset Management, we achieved a record result with almost CHF 1 billion of new money. This positive development is also reflected by our strong operating result. With FFO I of CHF 2.15 per share, we are on track and expect to generate a full year result at the upper end of the range that we communicated in February. We will present our long-term strategic priorities and outline where we see opportunities at our Capital Markets Day in Zurich at the end of October.”

Significant increase in Group profit and further operational progress

Swiss Prime Site grew its net profit by 17.2% to CHF 192.5 million in the first half of 2026. Funds from operations (FFO I) increased by 2.4% year on year to CHF 2.15 per share.

Operating performance in the first half of the year underscored the growth potential and profitability of Swiss Prime Site’s two-pillar business model. Consolidated operating income on a comparable basis, i.e. primarily excluding Jelmoli, rose by 3.4% to CHF 270.3 million, while comparable operating expenses decreased by 3.4% to CHF 64.4 million. Operating profit (EBITDA) excluding revaluation gains and gains on the disposal of properties therefore rose by 4.6% to CHF 208.7 million in the first half of 2026.

Financial expenses increased from CHF 97.0 million in the prior-year period to CHF 113.9 million due to a one-off valuation adjustment that was mainly related to the embedded derivative in the convertible bond that was refinanced in February 2026, prior to maturity. The lower average interest rate partly offset this effect. Tax expenses rose from CHF 40.0 million in the prior-year period to CHF 54.6 million due to higher deferred taxes as a result of upward portfolio revaluations.

Higher rental income from properties and continued low vacancy rate

In the first six months of 2026, rental income from own properties rose by 2.2% to CHF 230.6 million. This increase was driven by new leases following building modifications and renovations, as well as lease extensions at higher rents and acquisitions carried out in the prior year. The disposal of properties already announced in 2025 limited the rise in rental income.

On an EPRA like-for-like basis, rental income grew by 1.4%, mainly reflecting new leases or lease extensions at higher rents. In real terms, EPRA like-for-like rent increased by 1.3%. Indexing and the lower vacancy rate jointly accounted for 0.1% of growth.

Higher rents reflect the systematic optimisation of the portfolio as part of the capital recycling strategy, as well as robust demand for office and commercial space on prime sites, and they underscore the quality of Swiss Prime Site’s own property portfolio.

At the end of June 2026, the vacancy rate remained at 3.7%, unchanged compared to the end of 2025. The weighted average unexpired lease term (WAULT) was 5.7 years at the end of June 2026, compared to 5.3 years at the end of 2025.

Value of property portfolio exceeds CHF 14 billion for the first time despite disposals

The value of Swiss Prime Site’s own property portfolio increased by 0.6% to CHF 14’005 million at the end of June 2026 compared to the end of 2025. It thus exceeded the CHF 14 billion mark for the first time.

Revaluation gains increased to CHF 148 million in the first half of 2026 from CHF 102.0 million in the prior-year period. This was mainly driven by sustained reductions in property management costs, leases agreed at higher rents and a reduction in the average discount rate of 2 basis points due to the attractive market environment.

As part of the capital recycling strategy, Swiss Prime Site disposed of five properties in the first half of 2026. The total value of those properties was CHF 166.9 million; a gain of CHF 6.9 million was recorded compared to fair value. The disposals consisted primarily of smaller shopping centres in secondary locations, further increasing the average quality of the portfolio. At the end of June 2026, 99% of all properties owned by Swiss Prime Site were located in top locations in Switzerland according to the property valuation company Wüest Partner.

In terms of development projects, Swiss Prime Site reached two important milestones in the first half of 2026. Hitachi Energy chose Otelfingen as the location for its new central production facilities in Switzerland. There are plans to construct new buildings on previously unused plots of land and to fully regenerate the former Jelmoli logistics building. Swiss Prime Site will closely oversee the development project and will sell the site to Hitachi Energy once planning permission has been granted (expected at the end of 2027). A sales contract was signed in mid-August.

Swiss Prime Site also took a significant step with regard to the Prime Tower Site in Zurich West by signing a Letter of Intent with the University of Zurich concerning the leasing of the Maag halls by the Natural History Museum. It is thus discontinuing the “Maaglive” project and, going forward, will focus on further developing the Maag site as a cultural centre for Zurich West and on preserving and extensively renovating the historic Maag halls.

The existing construction projects at Fraumünsterpost, YOND Campus and Destination Jelmoli in Zurich progressed as planned.

At the end of June 2026, the number of properties in the portfolio was 127, compared to 132 properties at the end of 2025. 

Asset Management records good growth in income and a strong inflow of new money

In the first half of 2026, Swiss Prime Site’s Asset Management business area, Swiss Prime Site Solutions, continued to benefit from its strong market position and the high demand for real estate investments among Swiss institutional investors and it once again generated significant growth.

Real estate assets under management rose to CHF 14.8 billion at the end of June 2026, compared to CHF 14.3 billion at the end of 2025, reflecting broad-based growth across the range of funds and services.

New money reached a record CHF 0.95 billion in the reporting period, compared to CHF 0.62 billion in the prior-year period.

In the first half of 2026, capital increases totalling almost CHF 0.3 billion were carried out and an additional CHF 0.2 billion of capital commitments were drawn down. New investors accounted for around one-third of the capital increases, with existing clients contributing around two-thirds, confirming Swiss Prime Site Solutions’ strong market position.  

At the start of January, a pension fund also transferred the management of its property portfolio with a value of more than CHF 0.4 billion to Swiss Prime Site Solutions.

During the reporting period, Swiss Prime Site Solutions disposed of development projects (promotions) with a value of around CHF 0.3 billion that had been successfully completed; these projects are therefore no longer included in assets under management.

In the first half of 2026, Asset Management generated operating income of CHF 40.0 million, an increase of 5.2% year on year. This growth was mainly driven by higher real estate assets under management as well as higher transaction-related income from the strong inflow of new money. More than two-thirds of this income was recurring – mainly comprising management fees – and just under one-third was non-recurring, primarily consisting of purchase and sales commission as well as distribution fees.

Overall, 31 transactions with a total volume of around CHF 0.7 billion were completed in the past six months. This represents a record transaction volume and compares to CHF 0.6 billion in the prior-year period.

At the same time, costs decreased by 1.0% to CHF 14.0 million. As a result, operating profit (EBITDA) rose by 8.9% to CHF 26.0 million in the first half of 2026.

Solid and broadly diversified financing structure

Swiss Prime Site has a strong credit rating as well as a solid and broadly diversified financing structure. At mid-2026, its unused, contractually guaranteed financing lines totalled CHF 0.7 billion (CHF 1.1 billion at the end of 2025). Together with cash and cash equivalents, these financing lines give it a very high level of operational and financial flexibility. In this context, Swiss Prime Site refinanced a convertible bond prior to maturity in 2030 by issuing a new CHF 350 million non-interest-bearing convertible bond. The attractive terms and the fact that the bond was strongly oversubscribed underscore the capital market’s confidence in Swiss Prime Site. In addition, Swiss Prime Site issued two bonds denominated in Swiss francs at attractive conditions in the first half of 2026. As a result, the average term to maturity of the financing rose slightly to 4.0 years, compared to 3.9 years at the end of 2025.

Due to the continued low interest rate environment, refinancing costs decreased further compared to the prior-year period. The average interest rate in the first half of 2026 was 0.83%, compared to 0.98% in the first half of 2025 and 0.94% for the full year 2025.

The loan-to-value ratio (LTV) of the property portfolio was 39.9%, reflecting seasonal factors due to the dividend payout. This compared to 38.1% at the end of 2025. Swiss Prime Site expects the LTV to fall below 39% again over the course of the year.

Progress in the area of sustainability

Swiss Prime Site also achieved clear progress in the area of sustainability in the first half of 2026. Its systematic focus on the initiatives it has launched – including in the areas of renewable energy supply and solar power generation – led to a further reduction in the CO₂ intensity of its property portfolio. At the same time, ISS STOXX increased the ESG rating for Swiss Prime Site from C+ to B-. In terms of sustainability performance, Swiss Prime Site now ranks among the top 10% of the around 400 property firms worldwide that are rated by ISS.

Outlook for 2026 confirmed

Swiss Prime Site expects rental income to increase and the property portfolio’s vacancy rate to decrease for the full year 2026, in line with previous guidance. For the Asset Management business, Swiss Prime Site is maintaining its organic AuM growth target of around CHF 1.0 billion per year. 

The operating result (FFO I) is expected to be at the upper end of the range of CHF 4.25 to CHF 4.30 per share that was communicated at the end of February.

The LTV is expected to fall below 39% again over the course of the year, thus offsetting the seasonal effect of the dividend payout in the first half of 2026.