Swiss Prime Site Stock

Welcome to the Swiss Prime Site Half Year 2026 Earnings Conference. The presentation will be followed by a Q&A session. [Operator Instructions]. I will now hand over to your host, Marcel Kucher, CEO of Swiss Prime Site.

A very warm welcome here from the 35th floor on Prime Tower. Very warm welcome in the name of Anastasius Tschopp who is here with me Martina Moosmann, and we also have Karin Voigt here, our CIO for our own portfolio. What we're going to do today is we'll have a short presentation on our half year results through 2026, followed then by Q&A. And then afterwards, we let you go into a beautiful day here in Zurich.

To start with the key messages. Overall, we had a successful first year 2026 with a very strong operating performance, and we continue to see attractive growth momentum. We see that in our own portfolio with a strong leasing momentum. Most importantly, Alto Pont-Rouge is now fully leased with a strong demand at Fraumünsterpost, we are still finishing up the renovation driven by AI companies and major lease extensions here at the Prime Tower and other campuses across our portfolio.

Second element here, we achieved very important development milestones. The first one here for sure is the Maag halls in Zurich, but also Otelfingen, and I'll talk more about that later on.

Further, the portfolio quality enhanced through the disposals of CHF 167 million of smaller, mostly retail assets. Those were 5 assets, which we already sold last year, but they closed now in the first half of 2026.

Despite those sales, our rental income was up 2.2%. Including the sales, it would have been more or less double it, 4.5%, driven in particular by prior year acquisitions from our capital increase, the positive lease reversion and developments that are going online. Like-for-like growth stood on a real basis, roughly unchanged at 1.3%, including inflation, it was at 1.4%, showing kind of the low impact the current low inflation environment has on our rents.

And finally, portfolio value exceeded for the first time in our history, CHF 14 billion. That's up 0.6%, and that is despite the disposals that I just mentioned before. CHF 148 million of revaluation gains driven mostly by the rental growth I mentioned, by cost discipline and 2 bps lower discount rates, CHF 148 million represent roughly a 1.1% revaluation on last year's final results.

On the asset management side, very positive momentum that we see here with a record new money of almost CHF 1 billion, CHF 950 million to be precise, lifting up our AUMs to CHF 14.8 billion. And as I mentioned, this demonstrating the continued strong growth momentum. Those CHF 1 billion in net new money was composed by 3 elements.

The first one was CHF 0.3 billion in total capital increases from our product of Akara and IFC, CHF 0.2 billion of drawdowns of commitments from Fundamenta product as well as then an acquisition of a new mandate, major Swiss pension fund of CHF 0.4 billion and somewhat reduced by the disposal of CHF 0.3 billion, CHF 300 million of promotions, which were finished and hence, left the AUM of our asset management business.

Together with the underlying kind of income that drove revenues up 5.2% with a higher AUM and the sustained transaction activities. We'll talk more about that in a minute. And given the further cost discipline with, in particular, efficiency gains that we could reach EBITDA margin slightly increased to 65%.

And the last element on the Swiss Prime Site Group, we refinanced our outstanding convertible bond at a 0% interest rate for 6 years and a very attractive initial conversion price of almost CHF 180, helping to reduce our average cost of debt to roughly 83 bps for the half year.

Then you'll see here in a minute in more detail, Martina Moosmann joined us as new Group CFO and hence, completing our Executive Board meeting as of April 15. And the last one, not the least, but the very important one, we are now among the top 10 most sustainable real estate firms worldwide with a rating upgrade of ISS stocks ESG ratio to B- from C+ last year, making us very proud to be among the top 10 property firms worldwide.

Some elements on the numbers. Operating leverage drives our profitability. I mentioned most of them here. Rental income is up 2.2%, 1.4% on a like-for-like basis despite the sales that I mentioned. Fee income, 5.2% up to CHF 40 million, and that leaves us with an EBITDA contribution, which is up almost 5% to CHF 209 million roughly and the net profit of CHF 165.7 million, up 6%. More importantly, even FFO I per share, up 2.4% to CHF 2.15, a record level in our history and EPS per share also up roughly 5% at CHF 2.07.

Having said that, we confirm our guidance for all the 4 elements that we said. On the FFO I, we do expect that we end up at the upper range of the CHF 4.25 to CHF 4.30 range that we guided already in February.

Before we dive into the details on the finances, let me give you a little bit of background on the environment that we're operating here in Switzerland. I want to do that along 4 dimensions. First one, transactions. The Swiss market in general is a very supportive and constructive market given the very robust economy that we have in Switzerland, there's still available growth that we can provide here in the GDP as well as obviously, our low interest and inflation environment that continues to support the real estate market. We see, hence, a large number of transactions, which is a positive element.

On the other hand, we also see further yield compression here. So finding the right real estate at attractive rates is continuing to be a challenge. Hence, for us, the conclusion is we need to be disciplined going forward in such a strong market. And obviously, given our size and the continued growth that we have through our portfolio, we can also do that. On the letting side, we see strong momentum. I mentioned a number of the elements in Geneva, but also here in Zurich already.

We see, in particular, of course, the demand for office space on the high-quality, very centrally located locations that is thriving. And we also see that supported by some structural trends supported by AI, which we believe will reinforce this shift. Rent levels also remain where we planned them to be. And in some cases, we could even get higher rents than also our valuator expected. That is the part that you see reflected then in the valuations. That brings me to the third element, the valuation.

We also have here, obviously, the positive and constructive environment with a low inflation rate and the low interest, fostering a good environment within Switzerland. Both the nominal and the real discount rate, you see compressed in Switzerland, not only for our own portfolio, but we also, as I mentioned before, see that in the transactions. And you also see it in the disposal gains that we had with about 4.2% gain versus the book value at the end of the year, hence, confirming the attractive investment environment in Switzerland.

And last but not least, fund flows. I mentioned the record inflow of almost CHF 1 billion before. That is also driven by the attractive environment that we have given our interest rates, but also by the pressure of, in particular, pension funds to invest their money inflows into stable yielding assets. And hence, we see an elevated allocation to real estate, in particular, residential real estate, which benefits our asset management business here. So here, again, continued focus on growing our asset management franchise as we have done in the first half year. With those introductory remarks, I will hand over to Martina to provide you with more details on the first half year from a financial perspective.

Thank you, Marcel. It's my great pleasure to be here and to present Swiss Prime Site's first half 2026 numbers to you, in particular, since they're really strong. Our dual strategy continues to translate to sustainable numbers. In our real estate portfolio, we focus on investing in commercial buildings in prime locations. In our second leg, the Asset Management segment, we invest predominantly in residential properties for institutional investors.

In the first half 2026, we grew revenues in both businesses and coupled with our cost discipline across the platform, we landed a higher operating profit. Let's dive in. On Slide 8, we break down we break down the revenues, the top line for you.

Rental income from our properties, our dominant source of income came in at CHF 231 million, a nice 2.2% growth compared to the first half last year. The drivers were successful renewals with existing tenants, first-time lettings of completed developments as well as acquisitions from last year, somewhat offset by the sale of 5 properties as part of our continued capital recycling strategy execution. Let me give you a few examples for lease extensions. Here in the Prime Tower building, we were able to extend leases with significant existing tenants like Homburger after 15 years for another 15 years. This not only underpins the quality of our buildings, but also our focus on the positive experience working on Swiss Prime Site campuses. In Geneva, Marcel already mentioned that we fully let Alto Pont-Rouge building and with JPMorgan, we were able to attract a sizable new tenant for the group.

On the Asset Management business, we grew 5.2% to CHF 40 million. This reflects the sustained demand from institutional investors. The earnings composition is a healthy balance of recurring fees and increased asset under management and transaction-based commissions. On a comparable basis, the operating income for the group increased by 3.4% and stands at CHF 270 million as of June 30. Comparable in this context means excluding the effects of the discontinued retail operation as well as other Jelmoli-related income that was still included in the first half of 2025.

Our operating expenses on a comparable basis contracted by 3.4% and stood at CHF 64 million. This illustrates our focus on costs and the effect of efficiency gains throughout our scalable platform.

When we turn to Slide 10, where we wrap up. We have already looked at operating income and expenses. This leaves revaluations as the remaining building block for our earnings. On an IFRS basis, the appraisal by Wüest Partner arrived at an increase of CHF 148 million. As Marcel already mentioned, this is 1.1%.

No surprises on the drivers, rental growth, low operating costs as well as a 2 basis point lower discount rate. Adding the higher top line, lower costs and the revaluation gain, we were able to grow EBIT by a remarkable 20%. Our EBITDA of rounded CHF 208 million represents an increase of 4.4% over the same period last year. This is excluding revaluations and sales, a strong demonstration of our resilient business model and operating power.

Wrapping up the group numbers on Slide 11. FFO I, our main KPI for operating performance increased by 2.4% to CHF 2.15 per share. This reflects our operating leverage, higher earnings as well as lower financing costs. The issuance of the 0% convertible in combination with the early redemption of the deep in the money convertible supports our guidance for the full year at the upper end of the communicated range of CHF 4.25 to CHF 4.30 per share.

Now let's dive a bit deeper into the segments, starting with the rent walk, our dominant source of income, which we show on Slide 12. Compared to last year, I start left to right. Compared to last year, we sold 13 properties with a corresponding rental income of CHF 4.5 million. A similar number of buildings, including Jelmoli, are undergoing redevelopment and are temporarily offline. In the same period, we added CHF 6.4 million from the acquisitions last year, 4 buildings in total and successfully let new buildings yielding CHF 3.8 million.

Organically, we achieved additional CHF 2.4 million from existing properties through rent reversion, thereof only a small contribution from indexations. Marcel already talked quite a bit about the like-for-like where we currently, without indexation stand at 1.3 -- sorry, without inflation stand at 1.3%.

Now we move on from our real estate to the second pillar, the asset management business. Driven by continued strong capital inflows, almost CHF 1 billion in the first half, our overall asset management fees increased to CHF 40 million, a 5.2% growth, which is more than double what we're seeing on the real estate business side, confirming Swiss Prime Site Solutions positions as the group's growth engine. Management and transaction fees were up 9% and 8%, respectively, with 71% thereof recurring income. Again, the resilience of our earnings base remained high despite the elevated transaction activity that we see, and we expect more to come in the second half. At the same time, our focus on costs and efficiency gains allowed us to benefit from further economies of scale across the whole platform for the group. Personnel costs in the Asset Management segment were down 16% and real estate costs lower by 6%. As a result, the EBITDA is up 9% to CHF 26 million for the first half, and the EBITDA margin stands at 65%, which is a 2.1 percentage point increase compared to last year.

Moving to the balance sheet on Slide 14, where we walk the balance sheet numbers. Since year-end, we sold 5 properties for a fair value of rounded CHF 167 million. Those were mostly in secondary cities and are part of our portfolio consolidation and quality improvement, optimizing size and location of our assets, 127 altogether at June 30. Marcel will give you more tangible insights in some of the buildings in just a minute.

We invested close to CHF 100 million in our ongoing development projects, mainly Jelmoli, Fraumünsterpost and Yond. The work on those is progressing in line with plan. On a personal note, and for those of you who will join us at the Capital Markets Day, for me, it's always a highlight to visit one of the buildings and the construction site and have the smell of concrete and wood, and I trust you'll enjoy that with us.

Our appraisers, Wüest Partner, derived a valuation result of CHF 152 million for the first half, where the building blocks are a significantly lower property management costs due to a new master agreement that we closed, higher signed rental agreements and of course, the 2 basis point decline in average discount rate also helped us with the valuation.

For the first time, the aggregate portfolio value hit CHF 14 billion, which is an increase of 0.6% since year-end. I will conclude my comments with the liability portfolio, which is one of my focus areas in my role here.

Swiss Prime Site -- how do I go back? Okay. Swiss Prime Site diversified financing base continues to be well positioned to support our growth ambition in line with the Moody's A3 parameters, something that's important to us. We managed to lower our average interest rate to 83 basis points, which is year-on-year an 11 basis point decline. And we also were able to slightly extend the average maturity to 4 years.

Based on my almost 3 decades of perspective on funding markets, I label this very attractive. Mainly due to the dividend payment in March, LTV of 39.9% is slightly elevated above guidance. We're confident to be back below the 39% by year-end. Please also note that last year's LTV included the not yet deployed capital increase we did in the first half. Our funding pockets are diversified with sizable committed syndicated loan facilities, a growing debt capital markets franchise across Swiss franc, euro and convertible markets, complemented by efficient short-term programs.

The temporarily increased utilization of our unsecured loan facilities that you see in the numbers here includes partial funding of bond maturities as well as dividend funding.

As of June 30, we have dry powder in excess of CHF 700 million from our committed credit lines. Within our well-established Swiss franc bond market franchise, we issued 2 green bonds in the first half, CHF 130 million with a 6-year tenor and CHF 100 million with 7 years to maturity, extending our maturity profile at attractive spread levels. In March, we issued a CHF 350 million 0 coupon convertible and concurrently redeemed the deep in the money CHF 275 million convertible. The transaction locked in significantly lower interest costs. We spoke about that already. And we also set the redemption in cash, thereby avoiding dilution.

The 0 coupon saw strong investor appetite, was heavily oversubscribed and multiple investors from the old convertible flipped into the new one, which illustrates the continued capital market support for Swiss Prime Site.

As of July 14, the old convertible is completely redeemed. So that is history. And with this, I stop and hand back to Marcel.

Thank you so much. For the last remaining couple of pages before we turn to Q&A, I would love to deep dive a little bit into the business and give you some more updates on our properties and our portfolio. Let's start with an overview page on our locations, the composition of our portfolio as well as the quality of our buildings. As you can see, we are continuing to focus on the core Swiss cities with close to 60% now invested in Zurich, roughly 20% in the Lake Geneva area with a large proportion, obviously, in Geneva itself and the remaining in Lausanne, then Basel and followed by Bern.

The sale of the properties that we have already mentioned now before, the 5 properties further kind of focused us on these 4 prime Swiss locations. The sale also changed slightly the portfolio composition. You see we have a slight increase of roughly 1% in the office focus, as we mentioned before, sold mostly in the secondary location retail. And hence, that comes at an expense of the retail allocation, which is now slightly below the 20%.

And finally, and we're very proud on that, our quality of our buildings, we are now 100% pretty much rounded at least in the best locations of Switzerland, given the last 5 sales that we did, 88% are in the top quadrant, so best quality of the building and best quality of the location. And for 12%, we can still work on the quality of the building, and that's what our development focus is focusing on. I mentioned the lease momentum already before and the improved vacancy.

We are on an operational perspective, currently at a vacancy level of 3.2%. We have roughly 0.5% of our portfolio that we leave empty because those are earmarked for further developments going forward, giving us an overall 3.7% vacancy rate with a guidance that we will end up slightly lower at the year-end.

We mentioned some of the new tenants already, in particular, in Alto Pont-Rouge, in Fraumünsterpost, where we see very strong demand, in particular, from global leading AI companies. 50% of the office space is already let here. And for the rest, we have very strong demands, including some LOIs, again, as I mentioned, mostly from technology companies with a strong AI focus, showing that we can also benefit from that trend here, in particular, in Zurich, where a lot of the global AI companies are building up further capacity and expertise.

And finally, an interesting one. You might have seen that in the newspaper is for the remaining part of the Stücki Park, we are planning to reposition that part into a mixed-use office/operational element and signed a respective contract with the Swiss customs. So the Swiss Eidgenossenschaft, that would then fill up the remaining of Stücki Park and complete kind of the redevelopment that we did over the last couple of years.

We also talked at the contract extensions. Most importantly, here, Homburger, one of the first tenants for Prime Tower will stay another 15 years in the Prime Tower, which we're very proud of to host such a reputable law company here. And as Martina mentioned before, underscoring kind of the attractiveness of our campuses in Zurich and beyond. We're also proud that we have Medartis extend its rent in Stücki Park in Basel and also with Swisscom, we could extend several of the leases and are in discussion for several others going forward.

That drives the average WAULT to a record high for us, 5.7 years, showing kind of the long-term approach that we're taking and our tenants are taking.

Some words on our developments, and I will only focus here on these 2 as we will show the remainder during our Capital Markets Day in live and color. The first one is here, the Maag site. We communicated a couple of weeks ago that we signed an LOI with the University of Zurich with the goal of having here a very large and interesting cultural destination at the Prime Tower area with the Museum of Natural History taking the place as of 2032, 2033 roughly time frame.

We are working hard currently on doing all the preparatory work so that we can start with the building permit. We do expect investments of roughly CHF 60 million that should start somewhere in the end of 2029. And as I said, hand over then to the university should be end of 2031 and leaving the university another 1.5 to 2 years to do their fit-outs in order to really complete this into Museum. We do believe this is going to be a major milestone not only for the Maag site here and the entire Prime Tower campus, but also for Zurich -- it's one of the museums that attracts most people, currently more than 0.5 million. And given that the potential here for the university is to more than double its space, we expect to have even more people spread around the day, really making this whole campus even more lively than it already is.

A second one that we're very proud of is we were able to attract Hitachi Energy, one of the leading technology companies in Switzerland to choose the Otelfingen site as their future base for the production in Switzerland, where they will consolidate several locations by 2030. In the full kind of extension, we expect roughly 1,200 employees there, and they will use more than 70,000 of usable floor space, including the heritage protected building. You see that here, the large middle building here that used to be the former distribution center of Jelmoli when Jelmoli was still a large Swiss group. You also see some new builds in the back. So that includes also some space that is available on the site still to build really specific buildings for Hitachi Energy and their construction needs.

And given the specificity of those buildings, we felt we are no longer the optimal owner for the building. And hence, 2 days ago, signed a sale contract with Hitachi Energy. We'll hand over the building roughly at the end of '27, subject to the building permit so that Hitachi can then immediately start working on the new builds before they move in. This is a major milestone because it does provide this site a new life for the next 50 years, and we're very proud to be able to work together with Hitachi Energy to achieve that.

As I mentioned, going back to maybe one step, the others are progressing on plan. That is, in particular, of course, Jelmoli, but also Fraumünsterpost, which is slated to open beginning of next year as well as the Yond construction where we expect to close kind of the core construction end of the year and then starting the internal kind of fit-outs as of next year, being able to open that roughly in 2028, beginning of 2028.

We will show all of these sites during our Capital Markets Day live and in color, as I mentioned, so we will provide some more details on that and where we stand in terms of timing and cost in October. Two pages on our Solutions business. This is the page that you know where we basically see the 3 pillars within solutions, so the Discretionary Management, Fiduciary Management as well as Bespoke Client Solutions that we offer.

As you can see, we grew in all 3 of them. roughly at the same rate, CHF 0.2 billion on the discretionary side, in particular, with new acquisitions for Akara fund, for IFC fund.

CHF 0.2 billion on the fiduciary side, in particular, with new investments on SPA and the Fundamenta foundations. And finally, as I mentioned before, we won a new mandate of a large Swiss pension fund in the advisory business, adding roughly CHF 400 million to our AUM and that more than offset kind of the promotions that left our AUMs given that they were finalized and handed over to the new owners.

We mentioned that before, but you see kind of the growth rate that we can deliver organically of roughly CHF 1 billion per year. We are well on track to deliver that also in 2026 with roughly CHF 0.5 billion for the first half year 2026.

Part of the capital increase and part of the capital inflow that we have is not yet invested. That's why there is a difference between the CHF 1 billion and CHF 500 million that you see here. So we have enough firepower for the remainder of the year and expect hence to reach the CHF 1 billion in growth by the end of 2026.

On the right-hand side, you see the capital increases and inflows. So here again, we're talking about the new money, the CHF 500 million roughly in addition to the CHF 400 million that we gained from mandates, this new pension fund. Several new capital increases are in the pipeline or are already ongoing, so that we expect this year to end with probably more than CHF 1.3 billion, CHF 1.4 billion in net new money by the end of 2026. Again, not everything will be invested by that. Some of the elements we will leave us with firepower for the next year.

Last page on the asset management side. We continue to see very stable fees that we can charge that you see the roughly 16 bps on the recurring, on the nonrecurring parts. So these are mostly transaction elements in here and capital increases and you see the roughly 40 bps on the recurring part. You see a slight decrease. This is not because we see pricing pressure in the market, but rather we did some larger transactions and had some cliff pricing models where we share part of the increased efficiencies with our clients, which we believe is the right way to do.

And you see the cost efficiency gains that we had on the right side with our cost ratio coming to an overall and record low of 35%, underpinning here, again, the significant economies of scale that we see in the business and we can also reap.

That leaves us only with the outlook before we turn to Q&A. As we mentioned before, we will -- we confirm all of our targets. So from right to left, we will increase our AUM by more than CHF 1 billion for 2026 in the Asset Management business. We will end up at less than 3.7% in vacancies in our own real estate. The LTV, as Martina mentioned before, will end up as last year below 39%. And on the FFO guidance, most important element, of course, also then as a basis for the dividend for next year. We are very confident that we will end up at the upper range of the guidance that we gave in February. So closer to the CHF 4.30 than the CHF 4.25 lower range.

That leaves us with a final page. We are the leading real estate platform in Switzerland built to deliver through the cycle. We do that through a resilient platform with the 2 pillars, very consistent delivery where we can benefit from the economies of scale. We see the operating momentum with a visible upside, 5% on the asset management side, 2.2% without the sales, 4.5% with our own real estate and we have a clear path to future value creation.

We'll provide more details on that, including visits of the 3 sites that I mentioned before on our Capital Markets Day live here in Zurich in person on October 26 in Fraumünsterpost, which will provide you with a very good view of this fantastic building and where we currently stand in terms of the construction.

With that, I would close and hand over for any questions that you might have, which we're very happy to answer, as I mentioned before, we also have Anastasius Tschopp here on the asset management side, and we have Karin, which you don't see in the picture here for any more detailed questions on our own real estate portfolio.

[Operator Instructions]

Our first question will come from Ken Kagerer with ZKB.

I would have 4 questions. The first one is regarding the lease expiry profile. Do you have any larger contracts becoming due in 2027? And what would that mean for vacancies? Could you remain on those levels? Or do you expect even a further decrease? Or could you give some light on that topic, please?

No major lease expiries coming up, and we expect to be on the lower level that we guided also for the next year.

Okay. The second one is with regards to the outlook for the external asset manager. Especially as it becomes more and more difficult to find assets to invest in, do you think you need to go and grow abroad more actively? Or do you think you can still continue to find enough assets to ensure further growth of the platform?

We will provide an update with kind of longer-term view during our Capital Markets Day. But our guidance that we gave in terms of growing CHF 1 billion in assets focused on Switzerland, of course, I think, continues to hold. In terms of how to find assets in this difficult market, I maybe hand over quickly to Anastasius, who can shed some light on that. Is that so difficult? Do you still find assets?

Yes, I will do that. Thank you, Ken, for this question. We are very positive. Our pipes are full in each product. So -- we closed some deals the last weeks, and we will close the next couple of months, a lot of deals. So we are really positive for each product.

Just to give you some light on that, we did transactions of CHF 850 million in the first half. As you know, second half is typically significantly stronger. And hence, we are positive to also be able to find those right assets. How many of them do you do off-market currently? And how many go through brokers?

Currently, 30% of this is off-market deals with our great network here in Switzerland.

Yes, roughly 30%. Okay.

This brings me to the third question, debt maturity profile. I've seen in '29 and '30, you have CHF 1 billion and CHF 1.6 billion due. Could you just tell us what your strategy is with regards to those rather large amounts?

Those are related to our syndicated loan facilities with a broad syndicate of banks. And as you see when you turn to Slide 16, you have the CHF 700 million dry powder I mentioned earlier is essentially the unused part, the currently unused part of those credit facilities. So we will take a very close look and are already taking a close look how much do we want to refinance in which market to have that rolling of the syndicated loan facilities in an optimized way for the group.

So far, maybe adding to that, we have no indications that the banks would not be interested in rolling those. On the contrary, from the majority of the banks, we understand they would be interested in doing more. Hence, yes, this is something we need to actively approach, obviously, but nothing that puts any worries on us at this point.

Excellent. Thank you very much. And this brings me to the last question, which is also referring to financing. Could you outline how much the total cost of the convertible was, i.e., the delta of the initial face value and the final redemption amount of the convertible bond?

We have -- when you look at our financial statements on Page 35, we lay out the detailed table of the financing expenses included in our first half numbers. And there are several line items where the convertible bond hit the P&L. The largest one is CHF 73 million -- CHF 73 million, which includes the bond floor and the embedded derivative in the convertible, which upon the redemption, we realized. And the second part, making up the CHF 84 million that we mentioned in the financial review is future financing expenses for the years '27 and onwards that, of course, by redeeming a bond, we had to release.

I've seen that. I mean I've read this in the annual report. myself. The question was more what is the delta between what you received and what you had to pay back for the convertible in total, i.e., adding up all the half year results up to now.

It's roughly CHF 180 million.

Our next question comes from Ana Escalante with Morgan Stanley.

Can you hear me?

Absolutely wonderful. Good morning, Ana.

Great. So my question is on disposals because I think that in February, you mentioned that you intended to reduce the planned disposals of around CHF 130 million per annum, and yet you signed CHF 170 million approximately in the first half. Was this more kind of opportunistic? Or did you receive some unsolicited approaches? What drove the amount of disposals that you signed year-to-date?

Yes. All of those deals that we did now, we signed last year. So part of it that we disposed now was the asset swap, which we did, where we swapped the building on Bahnhofstrasse, so this very prime building against 2 buildings in secondary locations, which now were actually executed. So that was the large part. It was roughly CHF 120 million. The remaining part were 2 smaller shopping centers, which we also signed last year, but which only closed now in the first half.

We did not sign any additional sales in the first half year. And we are -- with one object we are in the market currently. This is something we mentioned also a couple of times. It's a fantastic former Swisscom building in Geneva, where we were able to get a building permit to convert it into residential apartments. And as we don't do apartments and residential, this is hence going to leave our portfolio, does currently not have any top line. It's empty by now for a new investor, it's ready to start construction, but we're not planning to do that, but leave that kind of to the new investor. That might come for the remaining of the year, depending a little bit on the timing and of the right of first refusal that in Geneva, the Canton has, so the city.

Super clear -- and maybe if I can follow up a bit on that. As you mentioned, what you sold was mainly retail assets that I assume were sold at a higher yield than the average for your portfolio. And I appreciate that you will provide more details on capital allocation at your CMD, but how are you currently thinking about redeploying the proceeds from disposals to fund, partly fund the acquisitions from last year, pending CapEx in the pipeline, a mix of both? Or are you seeing any other opportunities in the market?

Yes. Again, for the large part, it's a switch. So it's an asset swap. So for reasons, again, that had to do with first right of refusals of some cities here in Switzerland. We couldn't do it at the same time. So we closed kind of the receiving end. We got the building here at Bahnhofstrasse, in Zurich, we got it already last year. Now we kind of closed the loop and sold the 2 buildings.

But that was part of the asset swap, hence, also no cash flow here because we swapped the 2 assets. For the smaller part of the transaction, hence, the retail, the 2 small shopping centers. Yes, we did receive that, but we mostly invested in the current environment into our own construction.

Martina mentioned that before, we invested roughly CHF 100 million in our own development pipeline. And this is certainly something that will continue, but we will use the fund flows from kind of the disposals for our own pipeline, where we see attractive yields that are higher than what we could get on the market.

Nevertheless, we are obviously always keep an eye open on the market. For those elements that are in competition, so where you have JLL or CBRE, et cetera, leading a process, we had to realize that this is not at yield levels that will be attractive to us. There were quite some buildings in the market, but at compressed yields where we passed. However, there are from now and then, as we did last year, off-market transactions, and we do certainly have an open eye on that in terms of how we can redeploy that capital.

Our next question comes from John Vuong with Van Lanschot Kempen.

We're having trouble getting audio from John. So I'm going to move to the next question. We'll come back to you. Our next question is from Paul May with Barclays.

Well, actually 4 questions, but hope they should be relatively quick. Just on the like-for-like rental growth, obviously been slowing from the half year to the full year then to the first half this year, which I think mainly due to indexation coming down. I think you've highlighted for the first time, apologies if it's not the first time, the 10% reversion in the portfolio. Just wondered over what time period do you plan to capture that 10%? And if you can give some color on how that reversion has changed over the last, say, full year and since the year-end -- sorry, over the last year and since the year-end would be great.

Thank you so much. Look, we have a WAULT, an average WAULT. That's what I usually try to kind of put the expectations. We have a WAULT currently of close to 6 years, 5.7 years. You have an implicit WAULT, which is a little bit longer because some of our tenants still have options where they can extend their rent at the prevailing rate. So together, I'd say roughly 7 years of an implicit WAULT, including those options. Now if you divide the 10% reversionary potential that we have, and it's not going to be fully even, of course, distributed, but say, roughly even distributed. you can expect divided by 7%, roughly 1.4% in real kind of reversion that we can capture every year. Might be some fluctuations depending on which contract and when.

But on average, that should roughly pan out. And if you look back, this is pretty much what we got over the last 2 years, 3 years in terms of real reversion. On top of that, obviously, is indexation. That's a little bit out of our hands and comes with some benefits as well, obviously, on the refinancing side and on the revaluation side. But on top of that is obviously the indexation that came down significantly, as you pointed out, given that we are basically in a -- at least for the first half year, 0 inflation environment in Switzerland, came up a little bit now following the war in Iran. So currently probably at 0.5%, 0.6%. So you can expect some of that we will be able to capture for the second half and maybe a little bit more than in the next year.

Just on how that reversion has changed over the last year or half year?

I think it's been relatively stable, but always mentioning that we always capture every year, but it still remains at 10%. So we can pretty much -- whatever we capture, we see that we can add that to the reversionary potential. So keeping that relatively stable at those 10%.

Perfect. Second one is just wondering why you don't disclose net debt to EBITDA. And apologies if you do, and I've missed it my first time paging through the accounts, but I just wonder why you don't disclose them.

We disclose it in the details. But I know this is a number that many analysts use, obviously, to compare also across Europe. The problem with this measure for us is we are operating in a very low interest environment and hence, in a low yield environment. And this is one of the numbers that is very much driven by the environment that you're operating in. And hence, we see that with Moody's, for example, we see that with others. you have to kind of put that into perspective in relation to our yields that we get here in Switzerland, given our yield environment so that this is a number that we do not push. It's in the 11x range roughly. But again, you have to put that in relation to the level where we are in terms of our yields here that we can get in Switzerland.

Then similarly leveraged question, but not necessarily net debt to EBIDTA. Just within the asset management business, what level of leverage is typically used within those funds?

Anastasius, do you want to?

Mostly 30% in the funds related. So we couldn't do 40% or 50%. It's only 30%.

The investors here, and this might be different from other asset management businesses, the investors here are pension funds and the investment horizon is long. I always say they are looking for 30 years investment horizon. And the main goal of our investors here, which are predominantly 90% investment foundations, investment pension funds is to deploy the capital. Hence, they don't want too high leverage. This is not a private equity business where you want them 10, 15, whatever 20x IRR -- of percent IRR. This is a long-term investment business that we do for our pension funds. Hence it is regulated by the Swiss authorities that we cannot exceed 1/3, 33%. But we actually see from the pension funds, they want it to be even lower because their aim is to deploy capital and not for us to kind of leverage this up. Hence, within those constraints, we typically operate between 25% and 30% for the majority of the product.

The average, yes.

And just on the pension fund goal, is it generally recurring cash flow that they're looking for as well rather than necessarily lots of capital appreciation if they're looking over that really long-term.

100%. And that's why you see also the focus on residential because obviously, with this residential focus, you have atomized counterparty risk, you have in Switzerland, 0-point-something vacancy rate. So for them, this provides the security that this is recurring cash flow, and that's what they're interested in, not so much the capital appreciation. We have some smaller products, the promotions that we mentioned before. This is typically where we do new builds and sell it as individual condominiums. Here, it's different, but that is a very small part of our overall portfolio.

Perfect. And sorry, the last one, the asset focus probably explains a lot of it, but I just wondered in terms of managing any conflicts of interest between your own portfolio and the asset management business, how is that typically managed? And if there was -- if you both want an asset, how does it get decided as to where that asset end up falling?

Excellent question. The first answer you already gave yourself, we typically do not want the same asset. We focus on the 4 cities that I mentioned before, 5, if you separate Geneva and Lausanne. And within those cities on the best locations, best buildings, core locations, hence, having relatively low yields, of course, given the quality of the assets and the quality of the location. The pension fund -- the asset management business with the pension fund focus, they focus on residential, 70% roughly is residential of the assets, so 0 potential conflict of interest here. The remaining one, I usually use the term is a yield enhancer, what they do in commercial. So if you have a 3% yielding real estate portfolio with residential focus, you don't want to add kind of another 3% yield on the commercial side, but they're looking then for secondary locations, secondary buildings that enhances a little bit the relatively low yields that they get from the residential side. Hence, no conflict here.

Now in addition to that, I think this is the strategy part and the focus part in terms of our portfolio should not happen any conflict of interest. In addition to that, you have an organizational element. And that not only applies to the 2 divisions, our own portfolio and the asset management, but it also applies within the asset management. We do have separate teams for every type of investor that are doing our sales and acquisitions.

So we have a separate team here that do transactions, acquisition and sales for our own portfolio. And we have 2 or 3 separate teams that do acquisition and sales on the asset management side. Why do we do that? We do believe and that is what our customers tell us, our clients tell us that it is very important that you have somebody that really cares about your portfolio and only focuses on your portfolio. Hence, we have not done what many of the banks do where you have a centralized acquisition team and then they kind of rotate it internally, but we have separate teams. They have Chinese walls. They don't talk to each other. And if in the very low likelihood that we would be interested in 2 of the products in the same property, we will put in 2 offers. And then whoever had a better idea will win.

Our next question comes from Matteo Lindauer with Vontobel.

All right. Looks like we're having some audio issues from Matteo. I'll go ahead and move on to John Vuong with Van Lanschot Kempen.

I was just looking at the FFO 1 outlook. So I was looking at the run rate for H1 and also expected growth in H2 for AUM and then taking into consideration the full effect of the convertible refi. The outlook still screens to provide a margin of safety. So I was just wondering whether that's for H2 anything weighing on the top line or whether there's any exceptional costs that you're expecting?

John, I would say nothing exceptional that we're expecting, but we want to keep providing details to our Capital Markets Day in 2 months. We will then also extend the guidance, which currently ends at '28 to 2030, and we want to do that in one go. Hence, we're very confident to reach the upper end with an update to follow in 2 months.

Okay. That's clear. And then just on the asset management costs. Looking at the other operating expenses, it grew almost as much as the declines in personnel costs. Could you provide a bit more color on this? There has been a shift in classification of costs? Or are there one-offs in other operating costs?

No, they're not one-off, but we provide development and construction services for a significant part of the asset management business now out of a service unit. And hence, it shifted from the direct personnel costs into kind of intercompany charges. That helps us to provide kind of the best services to all of our properties and buildings. And you see that reflected now in the P&L by the shift from personnel costs into inter-company-related costs, so to speak.

If you go into the segment reporting, you see it because we show it here as intercompany. And you see here the more details, but that is the factual basis for that, why that happened.

Our next question is from Matteo Lindauer. We're not getting any audio from Matteo. So I will move on to Alexander Totomanov with Green Street.

Two for me today. In your like-for-like NOI growth breakdown, Geneva is a standout at 7.2%. You mentioned the JPM lease at Alto Pont-Rouge. But by my estimates, that should take it -- that should make about 2/3 of the total. I was of the impression that the Globus leases were re-signed at current rental level. I assume that's not the driver. What's driving the residual growth?

No, it's not the driver. Part of it is that we started to really one step back. Before we signed kind of the new Globus rents, the idea was that we would renovate the Globus building. We mentioned that during our last Capital Markets Day in Geneva, where we looked at still 2 options. Now with the extension of the Globus lease, we decided to push that back by roughly 10 years and started to re-lease some of the floor space that we already emptied before.

So part of that is this. And the second part, you mentioned already is is the JPMorgan lease, which started in April, I think.

And 1 more follow-up question relating to growth. Earlier this week, your peer reported strong performance on the same metric in Zurich. I think like-for-like growth was, what, 2%. You reported 0.7%. I was just wondering if that's a function of your expiring and negotiated leases for the first half or something else?

Not sure I got this fully. I mean, again, our like-for-like growth, and this is what I can comment on, is in line with our long-term kind of expectations where we have this 10% reversionary potential divided by the 7 years I explained before.

So on a real basis, roughly 1.3%, 1.4% On a year, adding, of course, to that, any indexation, et cetera, or lower vacancies that might add to that. The rest of the question, I'm not 100% sure I fully understood.

Me neither. Can you repeat, Alex?

Yes, I was just trying to compare the performance that was reported earlier this week by PSP Swiss Property in Zurich, which was slightly higher than what you reported. I was just wondering whether the reason was potentially fewer expiring leases in Zurich? But I assume that's it.

I can't really comment on PSP's numbers, but we see strong momentum with our own portfolio.

Any other questions gentlemen. If you're being shy of course, you can also do that in German, no question -- no problem here. We would -- of course, any questions can be asked in German. [Foreign Language].

Ladies and gentlemen, that was the last question. I'll now hand back to Marcel for any closing remarks.

So thank you very much for your time and interest in Swiss Prime Site, the leading real estate platform in Switzerland. with the 2 pillars that provide stability, coupled with growth. And we're looking very much forward to seeing hopefully all of you during our Capital Markets Day on October 26 in the beautifully renovated Fraumünsterpost on the shore of River Limmat here in the center of Zurich. Thank you so much. Have a wonderful day, and we'll see you in October.

Thanks. Ladies and gentlemen, the conference is now over. You may leave the call.

Welcome to the Swiss Prime Site Full Year 2025 Earnings Conference. [Operator Instructions]

I will now hand you over to your host, Marcel Kucher.

A very warm welcome to everyone on the screens. Welcome to Swiss Prime Site here on the 34th floor of Prime Tower in the heart of Zurich. It's a great pleasure to have you here. I'm here joined by Anastasius Tschopp today. He's the Deputy CEO of our group and also the CEO of Swiss Prime Site Solutions, and he will talk later a little bit more about our asset management operations.

Before we start with the numbers and the actual result, let us step back a little bit and look at where we stand today.

Over the last couple of years, we have been building on our Swiss Real Estate platform with the two legs of our own property portfolio and the asset management.

And today, we stand here very proud of what our platform has become. Over the past years, we have built not only this platform, but we have built it in a very synergetic way, that performs very strongly, and we'll show you today why this is the case and where this comes from. And more importantly, it also performs very synergistically across the cycle, building on the resilient Swiss economy.

In today's cycle, we benefit from a very supportive financial conditions with record inflows of new capital. We have seen this in particular in our asset management with more than CHF 1 billion new money and a record high of CHF 14.3 billion in assets, driven by a very, very strong organic growth.

We have also seen that in terms of the transactions that we could do, all the acquisitions that we could do, in particular, in the asset management in the residential area, where we have a structural undersupply here in Switzerland, like in many other countries as well.

On the other side, and managing through the cycles with our own property portfolio, we have delivered development over the last couple of years, more than CHF 40 million in top line. And we have hence been very important part of building high-quality buildings here in Switzerland for the commercial sector.

Again, this year, we have shown that also in the cycle with low rates and less inflation, we can drive like-for-like growth with a very, very strong 2% growth for this year. And hence, our platform is a true flywheel, creating momentum that reinforces itself and together and building on the strong foundations we will continue to thrive in the Swiss economy.

And with that, more strategic outlook. We want to go into kind of the key elements that we want to present today. You see here all the details, but I want to summarize that into four key takeaways that I think you should remember once you leave this room.

The first one is, we are growing. We are growing with a 2% like-for-like growth in our own portfolio. We have reduced our vacancy to 3.7%, a record low for Swiss Prime Site, showing how strong we perform in all of our properties.

And we're also growing in the asset management sector. You've seen 18% top line growth last year. So very strong momentum all organic and fueled by the strong capital markets that we see.

That will bring me to the second point. We are attracting new capital. We have done a capital increase for Swiss Prime Site in spring of last year, CHF 300 million, which are fully invested today. We have been able to attract CHF 1 billion in new money, an absolute record high for Swiss Prime Site Solutions in our asset management division. And we have been able to apply that in very attractive acquisitions throughout our -- the two segments.

That brings me to the third one. We are investing. We have truly built a platform that has access to the most attractive transactions in Switzerland. Having done more than CHF 550 million in acquisitions for our own portfolio. And in addition to that, CHF 1.7 billion in acquisitions and transactions in the asset management sector, getting really access to the right transactions even in a market that is very flourishing.

And fourth key takeaway, we are becoming more profitable and efficient. And you see that in a 3% up from a comparable EBITDA, up to CHF 408 million for that year. We see it in a more than 30% growth in the profit for Swiss Prime Site Solutions. And you see it also in the dividend proposal that we make, which is CHF 0.05 higher than in the previous year. So we're also sharing that benefit with our shareholders.

Going from these key highlights, let me step back a little bit and look at this key elements here, how that performs in key financial figures. You've seen that in the press release and in our presentation, we have a slight decrease in the rental income only due to the fact that Jelmoli building went offline together with a couple of other buildings where we lost about CHF 14 million in top line last year. On a like-for-like basis, as I mentioned before, we have seen a very strong increase of 2%.

In the asset management business, as I mentioned before, a record level of almost CHF 85 million in top line, 18% growth over last year, mostly driven by the organic growth and the money that we could attract to a small degree, about 1/10 of that driven by the full year consolidation of fundamental, which we acquired in April of 2024.

EBITDA consolidated on a like-for-like basis 3.4%. As I mentioned before, in absolute numbers, minus 1.2%. But given the lower interest, in particular, as well as lower taxes, that translates into a profit before revaluation and sales of 1.3% to an also attractive level of almost CHF 320 million.

On a per share basis, that translates into CHF 4.22 unchanged over the last year in terms of FFO I per share, FFO II per share we see an increase of 6% to CHF 4.17 and an EPRA NTA that is up 2% to CHF 101.40, underlying the very attractive real estate that we have, which also have seen a very positive revaluation last year.

On what type of market do we achieve these results? And I think I want to leave you with four key elements here. The first one is on the transactions. We have seen last year a very high level of activity on the base of a very broad institutional buyer space. This has been not only the case in residential, but also in the commercial. We see yield compression in many of these respects. And we see, in particular, also an increasing number of larger assets being on the market which is attractive for us as a commercial player with our own portfolio.

Second key takeaway that I want to leave you with is we have a continued polarization in the demand on the letting side. We see a huge demand for additional space in the core segments where we are, which means in the inner cities, this is where life is where people like to be, where people like to work. And that is contrasted by probably significantly less activity, a little bit further outside which is becoming more challenging what we see.

The third key takeaway is on the valuations. We've seen for ourselves an increase in valuation of 1.7%, roughly translated into some CHF 220 million. And we see that across the board with discount rates going a little bit lower, but also the effects that we see from the positive growth in rental income on a like-for-like basis, which have an impact, obviously, on the valuations.

In terms of our own book, we have been able to do our sales with roughly 5% profit, which is exactly where you want to be -- being at the market, but obviously on the conservative side in terms of the valuation.

And finally, fund flows. We've seen a record year for ourselves. I mentioned that before, altogether, CHF 1.3 billion across our platform, CHF 300 million for our own capital increase in February and roughly CHF 1 billion in new assets for the asset management.

Pension flows is an important element for that. We see here large inflows from the pension flows, and we also see higher allocations to real estate, which is supporting the entire market.

Now for the next couple of minutes, let me dive a little bit deeper into the P&L and any individual results that we have from a finance perspective.

Let me start with the top line and with the resilient rental income and the strong asset management growth that I've mentioned before. We've seen real estate income from rental decreased by 1.4%, as I mentioned before, that was all due to the fact that Jelmoli went offline together with Fraumunsterpost had an impact of roughly CHF 14 million, and you see that we were able to compensate most of that with our own growth, like-for-like growth as well as the acquisitions to a smaller extent.

Second element I wanted to mention is the asset management, 18% plus over the last year, a record level of CHF 84 million roughly in top line. This is all due to the further increase of the funding flows that we have seen and then hence, the transaction that we could do following that. And to a very small degree, also on the full-time consolidation of the fundamental for the full year, as I mentioned before.

That is contrasted obviously by the last elements that we see from our focus on the pure real estate platform with now rental income from retail only at CHF 10 million, which is the last 2 months that we've seen for Jelmoli. And also the other income coming down significantly, which was also related to the retail business.

Hence, overall, about 17% lower total operating income, but what is more important to me, because this is all what we wanted to do with the focus on our real estate business on a comparable basis. Hence, excluding the effects that you have through the closing of Jelmoli, we have been able to grow 2.6% over the entire platform to a level of CHF 540 million for the last year.

If we flip the side and look at our cost base, we see a similar positive picture with a huge drop in the operating expense. However, the majority of that is due to the fact that we continued -- discontinued the operations of our department store. And hence, again, I would to look at the lowest number here, so at the lower -- number at the bottom here where we have been on a comparable basis, hence, excluding all the effects that we have from closing the department store, a lower cost base of 2.8%, showing how much we can drive synergies across the platform.

One of the key elements for that will be the real estate costs. You've seen before, the absolute number in terms of rental income reduced by roughly 1.4%. We have been able to decrease the cost of real estate of 5.4%, and that shows we've become much more efficient here and this focus on the buildings in these core locations on the slightly larger buildings that we have been pursuing over the last couple of years has also a positive effect here in terms of the efficiency and the cost ratio.

Now if you bring this together, then we see that the positive revaluations that I've mentioned before, I will go into details a little bit later on this where this came from, then coupled also with the sales from properties where we had a gain of roughly 5% over the last value, leaving us with an EBITDA in absolute terms of roughly unchanged, CHF 410 million. But again, for me, the more important takeaway here is the number at the bottom. So, on a comparable basis, so excluding kind of the last time effect that we have from our Jelmoli operations, we see in a comparable increase of the EBITDA of 3.4%. And hence, again, amplifying what I've mentioned before here, the strength of the platform and how we can become more efficient going forward.

Now, if you go further down from EBITDA on an FFO basis and the EPRA NTA here, we keep an unchanged Funds From Operations I from per share of CHF 4.22. In absolute numbers, you see that we see an increase of 3.2% here. But given the higher number of shares, this translates then in an unchanged number of CHF 4.22, showing that we have been adding value to our capital increase already in day 1 of the capital being employed, and this will only become better over the next years.

On the intrinsic value per share. Here, you see a 2% increase comes to a large degree, from the revaluation effect that we have seen and a slight reduction in leverage, which I mentioned in a minute. So, what I want to do now is provide you a little bit more details on the two key drivers on the top line and then a couple of pages on the balance sheet as well.

Let's start with the top line and obviously, the most important element is our rental income. You see here the composition on how we end up with the roughly CHF 455 million. We had seen last year in 2024, really strong sales with a strong tail end here. We sold in 2024, CHF 330 million, really focusing our portfolio on our key locations and on the key cities in Switzerland. Now this obviously had an impact then in 2025 in terms of the top line. And you've seen from that sales, we also sold about CHF 15.7 million in top line.

Then what is very important to us and the key focus is what can we do with our existing portfolio. You see that here in blue, with an increase of roughly CHF 8 million, and that translates and you see this here in more detail in the 2% like-for-like growth with roughly 1.6% coming from real like-for-like growth, speaking from really changes in the underlying rent and in the rental contracts that we could actually sign coupled together with a further vacancy reductions, which has an impact on like-for-like of 4.3%.

A small number still comes from indexation, 0.4%, and I would expect that to stay at that level given that we have pretty much zero inflation here in Switzerland or even come down a little bit further.

Then the redevelopments, I mentioned that before. This is mostly Jelmoli, but also some elements of Fraumunsterpost. These are the buildings that went offline, temporarily offline. I think that's an important addition to that. We will renovate them, and I'll provide you more details on that when they will go online again in just a minute.

The acquisitions that we did, the CHF 550 million that we acquired had not yet a full effect, given that a large part of it was only closed in December and the rest April and August. Hence, you will see much more impact of that going forward. In 2025, we had an impact of roughly CHF 5 million coming from that. And then we still have the completion of new builds, which is roughly CHF 9 million which, to a large degree, translates to Alto Pont-Rouge in Geneva as well as the buildings in JED in Schlieren, as well as in BERN 131.

A word on the asset management side as well. How do the 18% realized that we've seen in top line growth last year. You see here the management fees have been growing by roughly 15%. So these are the underlying fees that have a very recurring character. The same recurring character is on the construction development side, slight reduction, given the fact that last year, we completed a little bit less construction than we did before. And then obviously, on the non-recurring side, on the transaction side, that is the mirror of the high net new money that we could attract of the CHF 1 billion, which were invested in about 120 transactions. As I mentioned before, CHF 1.7 billion roughly in transaction volume that we did in the asset management.

An important figure for us is, we want to build here a stable asset management operation that mirrors kind of the stability that we have on the real estate side. And hence, an important number for us is that we remain at roughly 2/3 of recurring fees, and that was also a case in last year despite the very positive market at 66% recurring income.

What you can also see here in the numbers is the cost base has been stable or even decreasing slightly. You see that in particular here on the personnel cost, which are the most important cost base, these are the elements that we can still can benefit from the integration of Fundamenta. We mentioned back then that we expect some CHF 8 million in synergies, and we have now been able to fully realize those. And you see that in the number here that EBITDA grew by significantly more than the top line, 31% exemplifying here the stability and in particular, also the scale effects that we have. That translates into an EBITDA margin, which we believe is very attractive of about 66%, so about 2/3 percent, and hence, shows the power again of our platform and doing things together.

Two words on the balance sheet. The first one is obviously on our real estate portfolio, which has reached new heights with about CHF 13.9 billion, so almost approaching the CHF 14 billion mark. We started with roughly CHF 13 billion. We talked about the sales. I will provide some more details on that just in a minute, of CHF 130 million, then the CHF 550 million acquisitions that I mentioned before. Total investments in our developments was CHF 222 million with a strong focus, obviously, on YOND and Jelmoli. And then the valuation result that we mentioned before of the 1.8% roughly, providing us then with a total of CHF 13.9 billion.

Maybe one word on the revaluation. We've seen given the strength of the Swiss market, a slight reduction in discount factor in real terms about 2 bps, in absolute terms, a little bit more, because our valuators also reduced the expectations on the inflation by 25 bps. The latter has practically no impact on us, given that we have a very large share of our property being fully indexed. Hence, we can pass on any indexation and any inflation.

The latter one does have an impact. And hence, you see it's probably about 50-50 in terms of the revaluation result in terms of what we -- what stems from the discount factor reduction and what stems from the like-for-like growth and exceeding here the expectations our valuators had in terms of the closings of new contracts.

And then the last element on the balance sheet is our financing, two pages on that. We have been able for the last year to place almost CHF 800 million in new financings. And for us, as a very important highlight, we were able to access the Eurobond market for the first time. We placed in September, a EUR 500 million Eurobond at a very attractive spread, roughly mimicking the spreads that we could reach here in Switzerland.

What was very supporting for that placement and made us really feel good about this market is, we were able to attract EUR 4.3 billion in demand at that interest rates that we had. So we had an oversubscription of about 8x, which is very high even for the euro market and shows just the incredible strength of our name and of our platform in Switzerland, but also abroad.

Despite the fact that we have a large degree of our financing with fixed interest rate. You see that here at 86%. We have been able to reduce the average interest rate significantly from about 1.1% that we had in the previous year to 0.94% if we are precise that is, we believe, a very attractive as well.

Overall, given the financing level that we have here, that translates into an LTV net for the Real Estate segment of 38.1%, which is slight reduction of 0.2 percentage points over the last year.

Well, we continue is that we have a very broad set of potential financing opportunities and that Eurobond only added to that, to make sure that in any position, we are always able to refinance ourselves. You see that here, about 50% is financed through unsecured bonds, 40% of that is roughly in the Swiss market, 10% is in the euro market. We have still access to the convertible bond markets. We have very good partnerships with our core banks, 13 banks in Switzerland for the unsecured loans, and we continue to have the secured loans with the insurance companies of about 11% of our overall portfolio.

Moody's rating A3 stable, and that provides us with this access that we just mentioned before.

In terms of the liquidity, we have a very high liquidity reserve of CHF 1.1 billion roughly. This is fully committed, so we can exit it at any time. And that provides us with enough liquidity over the next couple of years. So we don't have to go to the market, but we will, of course, access the market in order to stay an active player here.

That's for the numbers and for the financial numbers. Let me spend a couple of minutes now to dive a little bit into more details of our portfolio, before I hand over then to Anastasius to provide some more details on the asset management side.

Let's start with the overview. And given the acquisitions that we did this year as well as the disposals, we have strengthened further our position in our core markets. So we have now close to 60% of our portfolio, in Central Zurich area, about 20% in the Lake Geneva area, with the two strong hubs in Geneva itself as well as in Lausanne for us and about 12% in Basel in the northwestern part. We have further reduced the number of properties despite the acquisitions that we did, and we are currently at 132 million properties, which relates into an average size of our properties of around CHF 100 million, which we feel very comfortable with going forward. And we already talked about the property portfolio of close to CHF 14 billion.

In terms of the use, we have further strengthened our office segment, which we strongly believe in, in the core markets that I mentioned before and in the prime locations that I mentioned before with close to 50% currently, 20% retail and then the rest is spread between infrastructure, logistics, which also includes labs for us, hotel, gastronomy and a slightly reduced share of Assisted Living, which are mostly the Tertianum we have.

We're still very proud of the diversification of our tenant base. We have about 2,000 tenants, with 50% spread among the top 30 tenants. Our three largest tenants still remain the same with Tertianum slightly reduced at a little bit over 5%, Swisscom at roughly 5% and Globus slightly reduced also at close to 5%. I'll talk about Globus in just a minute.

Where you see this beautifully, the focus that we have taken over the last couple of years in this matrix, which is provided by our evaluator, Wuest & Partner, where we have over the last couple of years, if you compare this to 4, 5 years ago, really been able to put a really, really strong focus. More than 99% is in these highest brackets in terms of quality of the locations, and close to 90% is also in the highest bracket in terms of quality of the building, and that has been a significant shift and the basis for the strong like-for-like growth that we could achieve.

I'll show you some pictures on the acquisition, so let's skip that. But you also see where we sold properties. This is still not in the core elements that I mentioned before. So we sold properties Aarau, Biel, Augst, Buchs and Brugg with a strong element on two segments.

The first one was Retail, where we're still reducing in particular, in these non-core locations. And the second one was developments, where we felt that the best one is residential going forward. So what we typically do is in order to capture the value as we develop it up to the point where it has a building permit and then sell it to somebody who has a core focus on residential.

Now talking about the acquisition and the fantastic buildings that we were able to acquire. And fantastically enough. It starts here from the left to the right, not only in terms of location, but also in terms of timing. We started the year in April with the acquisition of the Place des Alpes in Geneva, from SGS, just last week. SGS opened its new headquarters in Baar, which have been beautifully renovated in our building. And hence, this was a truly beneficial transaction on both sides. We were able to acquire this beautiful building. You see with unobstructed view to the Lake of Geneva, and SPS was able to find the new headquarters in the canton of Zug as they wanted.

We are currently in very advanced discussion with tenants, focuses on a single tenant again, which we hope to be able to close in the next couple of months. But we also have alternative discussions on a multi-tenant solution. Typically, we would look at two tenants, which should move in later this year.

Then on Prilly, in Lausanne, key tenants here: SAP, Ruag, really strong technology tenants. We have long contracts of almost 20 years. This is a brand-new building to the highest elements, not only in terms of architecture, but also in terms of fit-out and sustainability. We are right at the very busy new station of Prilly and also right at the new station of the tramway, which will open later this year.

Zurich-West, we have a little bit too much fog. Otherwise, you could see it from here, the headquarters of the Swiss Stock Exchange just down here, the road. Key tenant is the Swiss Stock Exchange. It's currently a single-tenant building, but already built in a way for a multi-tenant, so that we have full flexibility going forward.

And then the last one, which we could close as part of an asset swap was in Bahnhofstrasse at Zurich, a beautiful building. And we being the absolute best owner, given that this was originally one building where we owned the first part already. This is the ones that know Bahnhofstrasse, where the Swatch Store is in. And now we added kind of the second part of that building, which provides us with many more opportunities going forward, in terms of efficiency and efficient use and space that we can offer. Fully let with key tenant rituals.

If you calculate all this, and then it includes kind of the asset swap that we did in Bahnhofstrasse, you see a net yield of roughly 3.7%, which we believe is very attractive given the quality of the buildings and obviously, is highly accretive given where our actual yield is. Hence, very attractive acquisitions that we could do over the last year.

One word on vacancy. You see here, if you just look at the graph, lowest ever, 3.7%. We could, in particular, sign a couple of new leases like SGS, like Banque Cantonale de Geneve, TurbinenBrau, and a couple of major extensions, EY just down here as one of our key tenants here on the Prime Tower campus, but also with the canton of Zurich, an attractive building in Oerlikon as well as the extension of Globus. I'll mention that a little bit more detail in just a minute.

The 3.7% have an underlying 3.2%, which is operational vacancy and then 0.5% for strategic development. What does that mean? Those are floor spaces that we do not actively market currently because we start to empty a building so that we can do the future redevelopment. So with an underlying say vacancy of 3.2%, which is also a record low in the history of Swiss Prime Site.

One word on WAULT. You see here a very even spread of the WAULT, pretty much everyone -- everything is 10%. That has a significant change over the last period. We increased our average WAULT by almost 0.5 year to 5.3 years, mostly driven by the extensions of EY, that we mentioned before, and Globus. On the Globus, I think we mentioned that during the half year already, we have a staggered extension agreement where we have 7 years for Lucerne and 8 years for Lausanne and then the 10 years for Geneva, which then also flattens kind of the profile going outwards.

Then a question that usually comes, "Are you nervous about the 9% that is on the short term?" I say absolutely not. On the opposite. I look very much forward to that. We have been in good and advanced discussions with the majority of the tenants in here. And the reason why I think this is positive is because in vast majority of the cases, we see here a very positive potential for higher rents when we entered kind of the next agreement phase. Hence, no worries on that side from our perspective.

Now, let me spend a couple of minutes on our three ongoing development projects. Obviously, the most important one being Jelmoli. Just a little bit, what's the current status here. We have started construction in April pretty much right after we closed the department store operations end of February. Obviously, the first stage in the construction is that you start to demolish, kind of lay open the underground structure, and that is pretty much finished by now. Part of that was also a removal of hazardous material just to provide you a little bit of an impression of the complexity of the building.

The building is not actually one building, but it's four main buildings and 11 buildings, if you look also at kind of connecting buildings, together. Now everything is open, and we've taken out the opportunity over the next 2, 2.5 years to really bring this entire building, kind of, to the next century, where we will not only convert it into the office part in the upper floors, but also really address the structural elements and really catapult it into a new area.

Overall, investment is going to be roughly CHF 210 million. We can be pretty sure on that by now, because we have agreed on a channel contract in September. And we expect a staggered completion starting in summer 2028. On the rental side, obviously, we still have roughly 50% pre-let. We are in very advanced discussions with some tenants. These are really top-tier tenants. We also have signed LOIs for two floors, of the remaining office floors and we see really good demand here for those.

As I mentioned before, summer of '28 staggered completion date, in particular, for the offices. Hence, we are a little bit early for the real marketing efforts, and you see this here, the active marketing will start now in summer or late after the summer of this year, but kind of the premarketing, the effect, we are already very positive on that one.

Second one, a snapshot is YOND Campus. Also here, we have just signed a contract with a general contractor. Investment volume remains at CHF 150 million, yielding from that, about CHF 8 million in additional top line. So you see it's also a very attractive yield on cost from this project. We have been able to sign a number of contracts already for that. One that I really like is part from Zuriwerk Foundation, which provides a real new hub here also for inclusion. The Turbinenbrau, so we continue kind of the addition of the building of brewing water leakers and now also beer in that area and a number of other signatures are pending. And hence, we are very happy in terms of how the marketing works.

Also here, we have a staggered completion as of 2028. We have currently completed the garage, so the underground parking and now, we are now start building the YOND 3 construction. This is the main kind of new building. It's about 85% of the entire new development with the YOND 2, then following later on once we have also reached here our target level in terms of pre-letting.

Last snapshot, Fraumunsterpost, the building in the middle of Zurich that everyone knows. Currently, we are doing a refurbishing here, bringing it also into the next century and of about CHF 30 million. Complete in here will be summer of next year. Will, in particular, have a focus on all the sustainability elements, on the heating elements, on the insulation elements, et cetera, with a sustainability certificate that we expect of BREEAM In-Use are very good. We are in advanced discussions with a number of tenants of about 2/3 of the floor space and expect that by the time this is completed, we should also have 80% plus let as usual with our buildings. And that is on track for the completion, as I mentioned here before.

Two pages on sustainability, which remains a focus of ours. And I want to mention here four elements that are important to us and to me personally. The first one is, we continue with our certification process. We have pretty much everything certified in our portfolio that is certifiable. So excluding some parking spaces, et cetera. We have now 40% of our top-tier buildings that are eligible for our Green Finance Framework and that is only buildings that have a Good or Very Good or Platinum rating. We're working on that, that this will continue and the certification gives us a very strong indication on what we need to work on, and that's why this is attractive for us, not only to provide you as investors with the full transparency but also for us to provide us with an additional element of inputs on what we need to work on.

A real key element that we achieved last year, and I want to jump here one page is another 10% year-on-year advancement in terms of the CO2 reduction path. You can see here, this is our linear target that we had to 2040 CO2 neutrality. We are well on track here. We are, in fact, advanced on track, and we could add here another year with a huge milestone with a further 10% reduction weather adjusted, by the way, which is important, because we do not benefit from a, say, mild winter, but we adjust for that, so that it's really comparable.

Some of the key elements that we do here is obviously heating replacements and energy modernization. We also continue to work on the Green Leases here, which means we work together with our tenants in order to make sure that not only we reduce our energy consumption, but also our tenants work together with us, and we signed these in Green Leases. We work on the improvement of the energy mix and obviously, to wherever we can district heating mix, et cetera, and then obviously, the building shells, which is an important element, as I mentioned before, with Fraumunsterpost, for example, or also Globus, Jelmoli, where we focus on that as well in the renovation path.

Let me go back. On two other elements, which is the circular economy element, which is a key element as well for us. In terms of our focus area, we have completed the Bern 131 project, which is a true lighthouse in that respect. You see here the embodied emissions is 7.3 kilograms. The ambitions as per the circular economy charter is close to 12 kilos. So we have been significantly below the already super low kind of ambition that we have taken for our charter.

How did we do that? Well, it's mostly wooden construction with some concrete to reinforce it. We focus here on Swiss wood. So it's not wood from anywhere, but it's Swiss wood. And then obviously, the entire building is covered with photovoltaic cells so that the building actually produces more energy than what it consumes.

And finally, because we want to have this really all encompassing, we have the Green Finance Framework where we refinanced almost CHF 800 million last year, under the Green Finance Framework. And for that, we build on what I mentioned before, our certificates in terms of Good and Very Good buildings that can only be eligible to the Green Finance Framework.

So, with this, I would hand over to Anastasius for some additional words on the asset management part.

Thank you, Marcel. Dear ladies and gentlemen, a warm welcome from my side. The next few of minutes, I will give you some details about the Swiss Prime Site Solution results 2025. As Marcel Kucher mentioned before, we grew 2025 with CHF 1 billion assets under management. We raised CHF 1 billion new money. This is more than 2023 and 2024 together. Our Real Estate transaction volume, 2025 was CHF 1.75 billion. From all these deals were 30% of market deals. So we have really good networks in Switzerland.

Now I will show you the three sub pillars of the asset management part. On the left-hand side, you can see our fund management. In this fund management, we raised CHF 430 million new equity in 2025. Another highlight was our IPO with the Investment Fund Commercial in December 2025 with a premium from 10%.

In the middle, you can see the sub-pillar Wealth Management or Asset Management, the products there, the investment foundation, SPR or the Fundamenta Investment Foundation. In this part, we raised CHF 590 million new equity. And another highlight in this part was we extended the contract with Fundamenta Investment Foundation by 3 years to 2029.

On the right-hand side, you can see our Real Estate Advisory sub-pillar. In this sub-pillar, we gained a new mandate by around about CHF 400 million.

Swiss Prime Site Solutions are the biggest independent Real Estate Asset Manager in Switzerland. Only banks and insurance companies in Switzerland are larger than us. But they have an own book of equity, we do not have that. We have more than 2,700 clients. 600 clients of this 2,700 are pension funds. Our main focus in our products, to invest 60% is Living -- housing.

The last slide from my side and the key takeaways for you, the pension fund system in Switzerland are very strong. They have to invest CHF 17 billion every year, around about 23% goes in Real Estate. So around about CHF 4 billion or CHF 5 billion every year. Our market share is 12% to 15%. So we think that we can raise every year CHF 600 million to CHF 700 million new equity.

We have a net immigration in Switzerland by around about 100,000 people. And the interest rates are low or going down. So you can see, the business case for Swiss Prime Site Solutions is really stable. As Marcel Kucher has mentioned before, our recurring fees are 65% the last year, and we think it will go on with this number.

For growth to CHF 60 billion assets under management, as we have as target to 2027, we can benefit from the economy of scale again.

Thank you for your attention, and now I hand back to Marcel.

Thanks, Anastasius. So there's only one thing to say for me. What is the outlook? So we expect the attractive Swiss market to continue. And hence, we want to provide the guidance for next year for an FFO that further improves to CHF 4.25 to CHF 4.30 on a per share basis. We will do that with a very disciplined financing policy and remain with our LTV below 39%. We do see further potential to improve our vacancy and hence guide that we will be lower than this year, so lower than the 3.7%.

And as Anastasius just mentioned, we see continued growth opportunities for Swiss Prime Site Solutions with an additional addition of CHF 1 billion AUM also for 2026.

Hence, a positive outlook. And with that, that was it from our side, and we would hand over to questions.

I think we start here, who would have thought. We start here in the room and then hand over to potential questions that we have on our stream. We do this in English today because on the stream, we have many people that are English speaking. And we realized that the simultaneous translation was not always that easy. If you feel more comfortable in asking a question in German, that's no problem. Just please do that, and then we'll try to translate as good as I can.

So, where do we start? With you. Perfect, Matteo.

Matteo, Vontobel. I have a question on Slide 22, regarding the active portfolio management. Could you tell us how large is the amount that you would still say capital recycling is possible? And why did you tell in December that you will scale back the sales? Has it to do with the market environment or did not the buyer come as you wished for?

Yes. All right. Happy to do that. Let's start with the second one. It had nothing to do with the market. I mean, the market is super strong, and we've seen that with 5% profit that we make. We will also, this year, see a number of additional transactions that we partly signed already last year. That is, in particular, the second half of the asset swap, which will only happen in 2026, because these are in cantons where the communities have a first right of refusal. So there is a gap between, kind of, when you can close that. So we expect that to close somewhere in April or something like that, for the second part.

So no, this has absolutely nothing to do with the market. For us, it was important that we provide transparency that we will keep a number of the buildings in our portfolio, as we have now with the capital increase, more equity and hence a little bit more flexibility.

And your first question was around whether we can further kind of suppress that in the top quadrant. Was that the question?

Like what's...

The number of buildings are...

And in francs.

Okay. Well, for this year, my expectation will be that we will continue to sell about CHF 250 million worth of buildings. As I mentioned before, a part was already signed last year, so about CHF 150 million was already signed last year, which will now be closed in 2026, and we have a number of additional buildings that we have in the pipeline.

I think, the focus of capital recycling shifts a little bit into more, say, a regular portfolio optimization. I think with what we have done over the last 5 years, we have really concentrated our portfolio in where we wanted to be. But given the size of our portfolio, we always see opportunities where we believe we are a better owner than somebody else, or within our portfolio where we see another owner be the better owner than us.

That has a lot to do also with repositioning of buildings. I mentioned that before, we always have a look also with our commercial buildings, whether they would be suited for residential. And if that is the case, then we would develop it up to a certain level, typically building permit and cost certainty with the contractor general and then sell it on the market.

One more question on the asset swap of the Bahnhofstrasse. What's the net yield of the building?

In Bahnhofstrasse, I think it's 2.7%, roughly.

Yes. Ken?

Ken Kagerer, ZKB. My first question is to Anastasius Tschopp. And -- Okay. Whilst I see the fact that it's very easy or it seems to be very easy to raise cash in the current environment, I'm a bit more worried about the way how to deploy this cash into 2026, especially when we know that more than CHF 9 billion were raised last year and you plan to raise another CHF 1 billion and the others are also seem to be also very active.

So, now comes the question. How do you want to deploy the money with good acquisitions on the direct market at the correct yield without diluting either the payout ratio or the quality of your existing products under management?

Thanks for your question. No. We have a good pipeline for all products. We have some transaction done in January, good transaction and our pipeline are full for the next 4, 5 months. And we are sure we can hold the quality and the performance in the product.

Just a small add-on for you. The fundamental contract was extended, was just mentioned. Can I expect that the margins or the costs stayed flat?

Yes.

Okay. The next question is on Jelmoli. I've just checked the full year presentation '22, and the Capital Markets Day presentation '23. And in '22, it was mentioned that the renovation costs should be above CHF 100 million. At the Capital Markets Day, it was mentioned that the renovation cost should be CHF 130 million. And when I remember correctly, Rene was very firm that this is a number he can stick to. And now I have read that we see CHF 210 million.

Now comes the question. First, is the rooftop included or not already? And secondly, what has happened with the increase in the cost and what has happened, especially to the yield expectation on the construction cost?

Yes. Happy to do that. And yes, this is the entire building, including the roof. We will have a restaurant on the roof, we will have spaces on the roof for our office tenants that they can use, and that is part of this cost. The entire roof, but that was always the case, we'll only be able to use in '33 or something like that, because we will have the until then -- until we can connect to cool city. And we, up until then meet part of the roof or the coolers, for the cooling system. But, that was always the case. That is nothing new.

In terms of the cost, that we have. I think now we can be firm on that. We signed a contract. We have obviously built back everything that is internally. So, we're now back to the bone and the structure of the building. And in the course of doing so, we decided that in part, it makes sense to do a little bit more, that has elements in the atrium where we believe we can add additional floor space and make existing floor space more attractive and bringing more light in it, but that is also a parts of where we will further support the structural elements.

Given the increase in rent that we see and where we are also are with the LOIs that we signed, we see purely on cost -- on yield on cost about 4%. And if you add to that, the losses that Jelmoli did over the last couple of years, you'll be more in an area of 7%, 8%. So both numbers, even just the 4%, we do believe in a location like Bahnhofstrasse is super attractive. And hence, yes, this is going to be a very valuable addition to our portfolio going forward.

This brings me to my third and last question. What would need to happen for you to do another capital increase in 2026?

Well, for us, the most important thing is that it needs to be accretive. And it should be accretive quickly, not in 5 years' time and with a lot of hope. And the last year capital increase, I think, was at an attractive timing because we've seen end of '24 falling interest rates. And hence, we increased our capital in a phase of falling interest rates where we still could benefit from attractive acquisitions as these falling interest rates were not yet fully reflected in the prices.

And I do believe you need to see these opportunities that allow us to grow our portfolio in an accretive way, that will make us then to do another capital increase. And as soon as we see those opportunities, I think we've shown that we are quick to act on that.

And do you see any opportunities now?

That we'll answer once we see them.

Holger Frisch, ZKB. A question -- on the half year presentation, you presented a slide with the investment volume for SPS of about CHF 1.3 billion, broken down in CHF 200 million invested, CHF 100 million committed and CHF 1 billion open. Could you provide us with an update on the current number and the breakdown?

Yes. The number has not significantly changed. We thought it is more useful to talk about the projects that we're currently working on. As you can see, these are roughly the numbers in terms of commitment. So the CHF 200 million, the CHF 150 million, the CHF 30 million, together, CHF 380 million or the CHF 390 million, of which about CHF 70 million to CHF 80 million is already built. So we have a slight increase in terms of the commitment, obviously, because now we signed the general contract on YOND as well as Jelmoli.

The overall number has not significantly changed, but this includes kind of conversions that will only take place in a number of years. Most prominently, if you look at Geneva, now we extended the contract with Globus by 10 years. So that means the conversion project that we developed here, we still want to do it. But realistically, we'll only do it in 10 years. Hence, some of the elements moved a little bit further out.

Then second question would be on the maturity of the financial liabilities, this went down to 3.9 years, which is the lowest for the last 10 years, I think. So do you feel comfortable with that level now? Or do you have any plans to increase the maturity? And then maybe on the maturing bond of CHF 350 million in May, what are your refinancing discussions?

Yes. Okay. A number of elements on that. Why is the majority coming down a little bit? This has mostly to do with the unsecured loan that we have with the CHF 13. And that contract still runs about 4 years, part of it 5 years. And hence, it is too early now to renegotiate that. We will do that, say, 2 years before it actually matures roughly. And hence, you'll probably see that it comes down a little bit further.

Does that worry us? No. Because it's a clear maturity pipeline that we have here. We have built up now many opportunities on how we can refinance, not the least the one in the euro market, where we have seen very attractive opportunities going forward. All the rest is roughly in the same range. You've seen the euro financing where we did roughly 6 years. Or you've also seen the one that we did in January of last year at roughly the same rate.

With the upcoming majority, we already did the floater end of last year, which was part of that refinancing. The rest you see we have plenty of line that we could use. Obviously, we also reserve the right to do an additional bond refinancing, which -- where we see very attractive conditions currently.

And one last question on the WAULT of about 5.3 years now. Could you break down the WAULT for the different types of use like office and retail and so on?

I don't have it here by-heart. We can provide it later on, but my gut feeling is, given that retail is only 20% by now of our portfolio, it should not have a significant difference. The large part of our retail, our co-op stores and Globus, of course, now -- and hence, you've seen here just the extension, hence, should be roughly in line. But if you want a precise number, I would have to check. I don't have that on by heart.

Yes. Matteo and then Andrea.

A quick question on Jelmoli at the Capital Markets Day in Geneva this spring, I thought the beginning of going live again is in 2028 at the beginning. Now you said at mid of 2028. Why is there this delay?

With what I mentioned before, where we will probably do a little bit more than we originally envisioned, because we believe this is beneficial to the building and the rental income that we can generate, we need to build that. And hence, the current plan, and we are very confident now that we can stick to this plan given that construction is now in full swing. And in particular, the building is empty now. So if you walk through the building currently, you see all the walls are dismantled. You see all the structural elements. So we are really very much focused now to rebuild the building, as I mentioned before.

Since the mic is here. Tommaso Operto, UBS. Question on reversion. Since inflation is as low as it is, focus will be on reversion. So could you update what the reversion potential is for the portfolio in general and then specifically also for this new couple of acquisitions that you made?

Yes. On average, I think the simple answer is it's about 10% of the reversionary potential. We do have about 5 years WAULT, as we've seen before. We have probably an implicit WAULT, which is a little bit longer given that some of our tenants still have options where they can extend at the same conditions. So taking the 10% and divide it by maybe 6 or something like that, that yields you around 1.4%, which we have now consistently been delivering in terms of real conversion. We're working hard on that. We're doing all sorts of things in terms of how we do community management, what services we provide to our tenants.

If you look here in the Prime Tower, if you've been to the elevator, you see all sorts of services on the screens that we have. We have cars here, where pretty much the entire Prime Tower campus takes part of it. We have bikes and all that make tenants more sticky, because they really like it, and that is helpful for us going forward. So we try, obviously, to exceed expectations that Wuest & Partner has.

And you see that in the revaluation. I mentioned before, roughly 50% comes from the underlying higher contracts that we could close. And we expect and we work hard on that. You will continue to see that going forward.

And for the new properties?

For the new properties, some of them come with a long contract. I mentioned Lausanne with a long contract. In terms of the Place des Alpes, which is the one that is -- that we are reletting. We are very positive that it's going to be in the mid-double-digit numbers in terms of what we undersigned and where we will end up now in terms of reversionary potential. We see that this attractive space with a beautiful building, old one and new one with an unobstructed view to Lake to Geneva is really attractive in the market, and hence, we're positive on the revaluation that we get there.

So, a double-digit percent increase? Or what's the double-digit, Okay.

Yes.

And then on the CFO transition, let's expect that you wouldn't be the only one.

Okay. Key message is, I will not do a double job. So that is the key message. We want to take this very seriously. We want to do a thorough evaluation if you talk to headhunters, that takes 4 to 6 months, and that time spend will be, do roughly say, in March, and we're working towards that.

Andrea? Just behind you.

Andrea Martel, NZZ. I have a question about Fraumunsterpost. Are you just redoing the offices on top, because Lidl hasn't open.

Lidl is still open. Lidl remains open and is open, but we're doing the entire office part. And the key element here is on the heating system, on the cooling system, et cetera, where we will go full green. Insulation is part of it with the windows. Obviously, this is a protected building. And we want to transform it in a way so that it's fit for the next 50 years plus. We've seen very good demand so far and really top-tier tenants, where we're in the progress -- in the process here of hopefully signing them up so that they will move in when it's ready in a 1.5 years roughly.

It's a recurring question that always comes up, but is there any update on Mullerstrasse for Google tenant?

Look, Google made an announcement. It was quite prominent in the newspaper. I think it was October last year, where they kind of committed to Zurich. All we hear is that they're now further reducing the workforce. On the contrary, it seems, at least from the outside, that they're transferring some of the development on their AI engine here to Zurich. In that announcement, it was also said by Google that Mullerstrasse is a key element of their strategy. Hence, we have no indications whatsoever from Google that they don't want to keep it, and that's the current update.

Just one follow-up on the double-digit percent increase for Place des Alpes you mentioned before. That's including CapEx or just as it is?

The CapEx is not going to be huge. Because the majority of the CapEx that we're going to do that is tenant fit out. Obviously, you need to do some CapEx if we separate it and have a multi-tenant, but that should also translate in higher per square meter prices. So it's roughly the same. But we are not going to -- we're not going to invest there hundreds of million. This building is in a very good shape. It has a modern heating system. It has a modern insulation system. And the CapEx that needs to be done is mostly around fit out, which will be done in conjunction with the tenure.

All right. Then let's switch to virtual. We can come back here to the room if there are more questions. Are there any questions on the web -- from the website?

[Operator Instructions] Our first question comes from Ana Escalante with Morgan Stanley.

I have a couple of questions, please. The first one is on your vacancy guidance. So as you said, you are -- you ended 2025 in record lows. And you said that you see further potential for declines. How low do you think it is possible to go from here?

Look, I mean, as we mentioned here, we have an underlying vacancy of about 3.2%, excluding the one which we call strategic vacancy, which we do because we are renovating building. We do see a potential that we'll bring this down further. Maybe even slightly below 3%. But obviously, it has a natural end at one point in time, you do have some turnover. You want some turnover in fact, because of the reversionary potential that we do have. But for the time being, over the next couple of, say, years, probably at least 1 to 2 years, we still see further potential to reduce our vacancy and we're working on that.

And then my second question is on acquisitions, both for the own portfolio and for the asset management business. So for the own portfolio, if we look at the guidance that you gave in the Capital Markets Day, it looks like you have already fulfilled all the acquisitions pipeline. So any further updates on that? Will you try to recycle further capital into acquisitions? Or do you think you are pretty much done and maybe just the occasional strategic opportunistic acquisition?

And for the asset management business, would you consider growing outside of Switzerland, given the amount of capital that you've raised, would you consider doing a bit more in Germany, for example, that you're already there?

All right. In terms of acquisitions, I mean, we are already -- we are always screening the market. And I think that is very important because we are active managers. Hence, we have to actively manage our portfolio. Hence, we are always in the market. There is no need on that to be on the selling side, because as we mentioned now a couple of times, we have been able to move our portfolio in the right quadrant, so in the place where we want to be, where we see the highest opportunities in terms of like-for-like growth and value accretion.

Having said that, we do have a number of properties which are currently under development where we see residential as the best use. So, we will sell those and that will free up capital that we can invest then in new acquisitions. So it's not a static portfolio, but we work with it on a daily basis and want to realize opportunities when we see them.

And in terms of going abroad, we are in Germany, yes, we have roughly CHF 1 billion in Germany. We are constantly evaluating the market there. See, a little bit of a light on the horizon currently over the last compared to the last couple of years, but we'll have to further evaluate on that, and we'll provide you with an update. If you see more opportunity than to say organic growth going forward.

Our next question comes from Steven Boumans with ABN AMRO ODDO BHF.

I have two. So one, could you please quantify in how many acquisition processes you are for your own portfolio today and how that compares to around this time last year?

Sorry, I can't. But in -- we are in -- let's put it like that, in an attractive number of -- an attractive value number, we are in -- we are evaluating, but we always do that. But I cannot provide you with more detail, I'm sorry.

Okay. Well, and to try and maybe your question. What percentage of non-recurring asset management fees do you assume for '26 and '27?

Our focus here is that we stay at the minimum of this 2/3 that we currently have as recurring fees. Hence, about 1/3 could potentially be non-recurring fees given the opportunities that we see within the market currently that we see that as a realistic that we stay below that 1/3. The 1/3 we realized last year was in a market where, as Anastasius mentioned, we did record -- we did attract record new money, and we were still able to stay at the 66%. Hence, that is the clear focus. We mentioned right in the beginning, the stability, coupled with the plus, with the growth. And that's a key element, obviously, in that, that we keep that ratio.

We currently have no further questions from the webinar.

Wonderful. Then we have an additional question here from Ken in the room.

Thank you. It's again for Anastasius. Would you be willing to share with us the EBITDA margin of the German business?

We don't disclose. I think the -- what I can disclose, it's profitable. We're not losing money.

On EBITDA level or what level do you think?

On any level that you want to mention. I think that's an element that we worked on over the last couple of years. It's not yet at the same EBITDA margin that we have here in Switzerland, but it's now at an attractive level, which is sustainable.

When you say not yet, do you expect it to ever reach those levels and on what basis?

Let's do Germany in a different part. We'll plan another Capital Markets Day, and then we'll provide some additional elements on that. But yes, what we currently see is that Germany is recovering slightly, and we want to be there to take opportunity if that materializes.

Wonderful. And thank you so much for your interest for coming here. It's been a great pleasure to host you here. We see now the fog is a little bit lighter. So you have a little bit more of the view. And with now all the participants that are here in the room invite you one floor up, to 35th floor, where we have some light refreshments prepared and continue the good discussions. For everyone on the webcast, thank you so much for your interest in Swiss Prime Site and wish you a wonderful day. Thanks.