Swiss Prime Site Stock

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Prime Site Capital Markets Day 2026. [Operator Instructions] I will now hand over to your host, Marcel Kucher, CEO of Swiss Prime Site. Thank you.

A very warm welcome. On this fantastic day, if you look outside here in Zurich, for those of you who are on the screens, with a fantastic turnout. It's very impressive to look at this. And I believe we have some fantastic messages as well for you today. So we're going to have a very full day today, and this is what we're planning to do. We start here with a short management presentation, followed by Q&A. We can do this both from the web as well as here, obviously, in the crowd. We will then have a visit of Fraumunsterpost. This is the location where we are. We'll talk a little bit about it in a minute on where we are and what this building makes it so special.

And then we'll have a short walk over to FlexOffice where we show off our managed office services as we provide them now as part of the group. We'll also have lunch there. It's going to be a fantastic flying lunch Afterwards, in the afternoon, we'll visit the Jelmoli construction site. It's really impressive to see how deep we go in terms of the structural work there and what this all entails. We will then continue to YOND Campus and finally come together here at the [indiscernible] with a special tram that will transport us at around 5:00 p.m. for those of you who will join us through the end.

The presentation we're giving Anastasius, Martina and myself will be structured as follows. So we'll start very briefly about SPS as a glance. And to no surprise for you, this is who we are. Swiss Prime Site, one integrated platform, two complementary pillars, and it's all real estate. As you know, we're combined roughly CHF 30 billion in assets under management, pretty much evenly split between our own Real Estate business with some CHF 14 billion and close to CHF 15 billion Asset Management business.

The big distinction is that the own Real Estate portfolio focuses on prime commercial real estate exclusively, while in the Asset Management, we focus on residential and the commercial part are typically yield enhances speaking of in the secondary locations and smaller buildings what we have. Another big differentiator is the difference between capital heavy, which provides the stability and the core foundation of our business in the Real Estate division with about 5% return on equity, and the capital-light business where we invest very little to no money with then roughly 25% plus return on equity. And all that is based on the very resilient Swiss economy, and I'll be talking about that in just a minute.

As you know, we've come a long way over the last 5 years in terms of our portfolio. We have been really focusing on this pure-play real estate for the last 4, 5 years in transformation. And I'm very pleased to say that the first half of 2026 was the first year where we only had real estate revenues, about 15% stem from the Asset Management and about 85% hence from our own portfolio, and we'll talk about how that will continue in the future. One thing I want to spend a little bit of time on to start with is the Swiss economy. And I must say, when we did this chart with the respective graphs, I was really impressed again on how well Switzerland is doing. And I think this is really something you can't reiterate enough the stability of the Swiss economy.

We have here 4 key indicators, but you can do that in many more. The first one being here, the employment growth. And it's always Switzerland is the dark one. EU as a comparison is a light one. And you see a significantly higher employment growth, which, of course, helps us as a large office provider, but also as a residential provider if you compare that to the EU. Even more impressive is you see here, if you base it to 2,000, we end up roughly at 135% of that. But if you look at the GDP growth, again, we base it for 2,000 at 100. We are more than 165 currently, speaking of that we not only increase our GDP by increasing population, but in addition to that, on a per capita basis, we also increase our GDP.

And again, look at how EU is performing compared to that. And the final one, and of course, very important for real estate is inflation and as a consequence of that policy rates and prime yields that you can see here on the last 2 graphs. Inflation in Switzerland is just peaking, and I really have to do that in [indiscernible] at 1%. If you look at the forecast of the Swiss National Bank, it will come back down a little bit towards year-end and then stabilize at around 0.8% for the next 2 years. If you compare that to EU, where we're currently at 3.8%, expecting at 3.6% maybe year-end and then pretty much on a flat basis going forward.

And that, of course, has important implications for real estate and for the policy rates. We're in Switzerland here at 0% and you all know what has been happening in the EU with the respective rate hikes over the last couple of years. And this basis -- this resilient basis of our Swiss economy is translating itself into a continued demand for real estate in our country. That shows across the 4 important dimensions. The first one being transactions, we really see a very good year. We're probably going to have a record year in terms of transactions in Switzerland, very strong investor demand, obviously driven by the spread that the real estate industry can generate and kind of the prime yields that you would get from a government bond or for alternative investments, primarily being driven by residential.

But given that yields are really low here, you see some spillover effects into the commercial space as well. Hence, you see further yield compression pretty much throughout the band, and there is no sign of that slowing down, at least we don't see it in our data that we get. Second is lettings. The positive going of our economy, the still growing population also has a very positive effect on the letting. I'll give you updated guidance for the end of the year, but maybe that in advance, we see a lower and probably the lowest vacancy rate at Swiss Prime Site forever since the 25 years that we are in business, and that is pretty much a result of this flight to quality and the demand, in particular, in these prime locations that we are focusing on.

An additional element, is we see this convenience as a big trend. You see it probably in your daily life in terms of how you eat, in terms of how you do vacation, in terms of how you go shopping, but we also see it in real estate. And this convenience element has an important effect because we see more and more demand from our large tenants to a convenient office location as well and a convenient office in particular. By convenient office, I mean they want to have a fully serviced office more and more. You see it in London, where the trend started, but you see it also swapping into Switzerland, which is hence why we today announced the acquisition of FlexOffice. We'll talk about that in a minute.

And the third element that we see here is a stronger and stronger demand on the health side. This again is a real megatrend, we believe, longevity and all the elements, and we see that here in terms of the demand for space as well. Financing, we talked about that briefly in terms of that we are still at 0%. Obviously, that provides very attractive financing positions. Those of you who are in the bond market in Switzerland have seen that this year, we've had a record year in terms of new emissions. We've seen large American companies coming into Switzerland, taking part of that attractive market. And yet it's not a crowding out of us.

We also have been -- have the opportunity, and we see that continuously with other real estate companies as well, where you get that very attractive spreads between 60 and 90 bps, depending a little bit on the length and on the security that you provide. Policy rates still at 0%, as I mentioned before. We do see in the swaps an expectation that there might be a hike, maybe even 2 going forward. But relative to what we see in the world, I think that is still with very limited upward pressure given also our inflation rates. And finally, fund flows, Anastasius will talk more about that, very strong flows still by institutional investors that allocate a significant part of their money into real estate and a very stable one. We'll talk about that in a second.

So on this backdrop and on a very good Q3 of this year, we feel very comfortable now to raise the guidance that we give for the remaining of the 2026 year. We do that by rising it by CHF 0.05 on the FFO I per share now being between CHF 4.30 and CHF 4.35. And honestly, my gut feeling would say it would be on the middle part, maybe even a little bit on the higher part of that if we continue the fourth quarter like we did in the third quarter. We're confirming our LTV below 39%. As I mentioned before, we now see an extremely good letting situation where we expect a vacancy rate of 3.5% previously from 3.7% for the remaining of the year.

And also on the AUMs, we talked about the money inflows and Anastasius will give more details. We are raising here the guidance from CHF 1 billion to CHF 1.2 billion for the end of the year. So that will be roughly CHF 15.5 billion AUMs for the Asset Management business for the remainder of the year. So far in the past. So let's focus on the future because the rest of the Capital Markets Day is going to be on the future. Where do we want to go with Swiss Prime Site over the next 5 years? First of all, we are building on the strong foundation that we have on our 2 pillars with the priority of generating resilient growth going forward.

In Real Estate, this will mostly focus on a continued capital upcycling in order to make sure that we further prime our already very prime portfolio and in particular, help us to capture reversionary potential that we see in the market and in our portfolio. On the development side, we are laser-focused on delivering our construction work that is ongoing, plus we will announce today 3 more developments or rather refurbishments and I think an important element for us going forward this year, we are aiming at a 1% to 1.5% yield spread. Yield spread, I mean in the sense of compared to what we could get doing an acquisition of a standing building. That should compensate for the slightly higher risk and make it very attractive in terms of our overall yield that our portfolio provides.

And finally, we have a number of elements where we want to capture new demand trends. I talked a little bit about the megatrends just before. In particular, this will center for us around managed offices and health and the focus of it is to generate an accelerated like-for-like rental growth going forward. On the Asset Management side, our 3 priorities are capturing the 50% market share of pension fund -- of new pension fund allocation. So new allocations of the pension funds, leverage the outsourcing trend. We have been very lucky to win a number of new pension funds in our discretionary mandate solutions, and we'll continue to focus on that going forward.

And then we also want to selectively launch new products and strengthen our platform in Germany, where we do see attractive opportunities going forward. All of this is based on our platform leverage. And when I say platform leverage, I mean, 3 things. First of all, our economies of scale, as I mentioned before, we are now combined about CHF 30 billion in assets under management. Then given the size we have and the scale and the different products that we offer, we do believe we have access to the best people in the industry. So obviously, we want to leverage those and benefit from the great workforce of ours.

And finally, and we'll talk about that in the last section of today. We have a couple of interesting things that we can share on data, proprietary data and AI, which we believe will help us grow going forward. Translating those into the ambitions for 2030 -- sorry, means the following. On the financial targets on the group, we want to grow our FFO per share by 15% compared to the now raised guidance. On the LTV side, we want to maintain our A3 rating. This is very important to us. And hence, we want to maintain our LTV below 39% or even more important, I do believe, is an ICR, an interest coverage ratio of well above 6x.

On the operational targets, we are targeting CHF 530 million on the rental income side from our standing portfolio at around 3% vacancy rate. As we are further priming, we also see an opportunity to further reduce the vacancy rate. And hence, our ambition will be to bring that roughly down to 33%. Much lower, it's probably difficult given that you have some fluctuations, but that's a clear ambition of ours. On the Asset Management side, we want to aim CHF 130 million top line, of which 70% is recurring. The 70% is important to us because it underscores the stability of this asset management as well.

And then that is on the base of CHF 23 billion assets under management. I think with this ambition, we set a long-term strategy, and we want to go into the details now a little bit on how we want to achieve it. Let me first begin with the portfolio strategy and development update of our own portfolio. So basically, the 3 elements that I mentioned before. I think I can go above that relatively quickly. It repeats our ambition. It repeats the strategic priority. And obviously, we're building on our key strengths of having the prime portfolio in Switzerland.

And let me talk a little bit about this prime portfolio in Switzerland because when I talk to investors and many of you, then I think a lot of the discussion when we talk about our change in our portfolio over the last couple of years was focused on what I showed before. So closure of Jelmoli, sale of Wincasa, et cetera. I think probably the even larger transformation of our portfolio happened to our Real Estate portfolio. And I want to show you a couple of figures now going forward, what we have done and why we believe we can continue to do that in the future. First is a split of where we are in terms of locations.

We focus on Zurich, Geneva, Basel and a little bit of Bern. This is our core locations. This is the strong locations in Switzerland. This is where the economy is happening. In terms of portfolio split by use, it's about 50% is office, followed by retail and then followed by a number of smaller elements, in particular, infrastructure, as we call it, logistics and then also our hotel business. As we mentioned before, close to 0 residential. These are only maybe if you have of a housekeeper kind of an apartment on the rooftop.

And in terms of tenants, we have our top tenants, top-tier tenants, and you see a number of them, in particular, those that we have recently gone into new contracts or extended our contracts among them, JPMorgan, Lonza, Homburger, EY, et cetera. But now into this portfolio transformation. We've shown this chart before, but I still believe it is impressive and shows what we have been doing over the last couple of years. When I started about 5 years ago, we had close to 190 properties across Switzerland. You see those on the left-hand side of the picture above here.

Today, we're standing at roughly 125. So we have a significant reduction in the number of properties, and we only have them in the top locations. You see this here. This is a matrix we usually get from our valuators, with partner, and you see it here for June 2026, where we are 99% of our portfolio is now in the top location, 99% of our portfolio is in the top location. I want to show you pretty much the same picture, but it gives an even better view on how we transformed our portfolio over the last couple of years on the next page. This is proximity to the next intercity train station. You see it here in 2020, and you see it in 2026. And I think just looking at it, you don't have to kind of fully understand the picture.

But just looking at, you see 2 things. The first one is you see significantly less of these small dots. What we have been doing is we mostly sold buildings below CHF 20 million, so the really small ones where we are certainly not the best owner. The second thing is that you see is now this is much closer to the center. Overall, over these years from '25 to '26, we have increased with the same methodology, the proximity by almost 20% -- and we want to continue on that path because -- and this leads me to the next one, it's really yielding the expected results. And I want to show you results on 4 elements. The first one being here on the left-hand side, like-for-like rental growth, which over the last 5 years increased from 0.8%, and you see it pretty much on a steady increase to expected 1.6% this year.

This is real like-for-like, so excluding indexation and excluding kind of vacancy reduction. This is really the underlying like-for-like growth, not benefiting from inflation or something like that. This is what our portfolio generate. And I think it's a very impressive number having pretty much doubled this over the last 5 years. And even better, we didn't do it at the expense of increasing our vacancy, but we, at the same time, also decreased our vacancy by more than 1/3, which is now, as we said, a record low of 3.5%.

You also see it, if you look at the average contracted rent per square meter, where we grew it in the office by about 13% and on the retail side by pretty much double that 26%. Why is that the case? We have mostly sold small retail assets. A large part of those small below CHF 20 million assets were retail assets, and we focused here our retail portfolio also more on the prime retail. That's what we see dramatically here in the numbers where we grew that by more than 1/4.

And finally, what it also does focusing on larger assets, more centrally located assets, it reduces your cost. And you see here, we reduced our cost by more than 20% over the last couple of years. So that's why we say we will continue with our asset upcycling or capital upcycling because it yields really the respective results and builds the basis for our like-for-like growth going forward. Second element is delivering on our developments. We have here the developments that are currently under construction. Let me just very briefly go through them because we will visit most of them going forward.

But obviously, if you're here in Fraumunsterpost, as you can see, we are just finishing up investing about CHF 30 million, mostly in the fit-out and the technology here. So we will have a clean heating system using lake water going forward, should be done roughly January of this 2027 when we hand over to the tenant. The building is going to be 100% AI building, which I think is very cool because we have this fantastic combination of a building that was built somewhere in the 1800s with the most modern technology that you can have.

Unfortunately, we're not allowed to talk about the concrete names of our tenants. But as you all know them, these are among the major players in that field. Alpes 1 wasn't on the list so far. This is the acquisition that we did from SGS. We eventually got the building permit from the city of Geneva. So we are now building. It's not going to be a huge investment. It's about CHF 15 million, in particular to make it multi-tenant. Even though we don't need it anymore by now, we have signed rental agreements and an LOI for 100% of the building. It's going to be, on the one hand, a managed office part and the larger part is in the professional service area.

What I really like about this is a 7% return on investment. And when we talk about return on investment here, we mean incremental yield on incremental investment. So incremental rental income that we did not have before we took the CapEx measure that relative to the CapEx. And I think that 7% is a really good number. YOND, we're going to see. So I'm not going to talk too much about it, and Jelmoli will bring a separate site. So we'll talk about that as well. But you see for all of them, if you compare to, say, market yields, if you were to buy in that location, a new building, a standing building that is rented, we are roughly 1.5% plus higher in terms of the incremental yield.

Here's our pipeline going forward. So we want to continue on that. As you can see from here, we will probably slightly more focus on refurbishments, larger refurbishments, and actually new developments. This will help us also to achieve this target of 1% to 1.5% incremental yield. The next ones that we're going to start is going to be in Stucki Park in Basel, where those of you who have been in the shopping center lately know that the upper floor is pretty much empty since 20 years. We now have a tenant. We will convert it into an office space, and that will be pure incremental space and pure incremental top line that we have. 85% is signed the LOI.

On maaglive, we informed independently already at half year, no update on that. We are working on the planning. So 100% at the University of Zurich. And then we are working on 2 interesting elements. One is in Geneva, Centre Carouge, where we'll -- we are currently developing a mixed-use extension. and refurbishment of the building investing roughly CHF 60 million to CHF 80 million. And the same is true in Zurich Oerlikon here, Zurich 11, where we're also developing a mixed-use refurbishment of the building, investing about CHF 50 million roughly going forward, and that should start somewhere in '29. So this gives you a little bit more perspective on how much capital we will allocate going forward.

As soon as planning is a little bit more advanced, we can give you then, of course, the respective yields on this. One word on Jelmoli. For those of you who will be here in Zurich in the afternoon, we're obviously going to visit the construction site. You'll see it's a heavy construction site. This is not like here. We are doing heavy structural work here.

This is also the reason why we see an additional time here and increased cost base, but that's it, we believe from now. We have now 95% contracted in terms of the value of the work that we do, excluding here its fit-out, which we haven't done. So once we go on the construction side in the afternoon, you will see that we do much more of the structural work than we anticipated in the beginning. And unfortunately, this is very expensive work. We'll talk more about that in the afternoon.

Having said this, we are still having on the same basis, as I mentioned before, incremental yield on incremental cost, a 3.3% yield on the investment, which is in a building, I look at our valuator here in the center of Zurich, probably currently yielding 2%, still roughly in this space that I mentioned before, 1% to 1.5% higher than what you would get for an acquisition in such a great location as it is.

Last element here is the structural demand that we are seeing. And -- what we see here in Zurich increasingly is the convenience element that I mentioned before that companies choose, in particular, say, for about 50 to 100 people, employees here in Zurich. They don't want to deal with the heating. They don't want to deal with the cooling. They don't want to deal with the reception or the wastewater or water in general, electricity or Internet, et cetera, they want to plug and play office.

And we're talking here not about small start-ups, et cetera, but we're talking about the large global firms. We'll see a few of them when we have lunch here at FlexOffice in Zurich. This is a trend that has been ongoing for a significant while in London and is now coming here to the continent. You see here a number of figures for London, 582% growth over the last 5 years of this managed office segment. It's about 8% of overall stock in London. Now that is overall on the city of London in the flexible part. And the majority of that is managed office. So it's not individual small tenants, et cetera.

It's not desk sharing these type of things. It's really large corporates that want to have everything managed. For Zurich, the estimates are about 1% to 2% of the market currently, so we can quadruple that. However, the vast majority focuses on the CBD. So in the CBD, it's probably 5%. This is our own estimate. Over the city of Zurich, this is an estimate Wuest & Partner did. It's about 1% to 2% and the market is growing quickly. We see currently about 15% growth per year, and we believe this will accelerate if we see the inquiries that we get from our different tenants. So the demand is prime location, minimal upfront CapEx, turnkey solutions. I don't want to deal about anything experience.

And this doesn't need to be fully flexible, but instead of the 10 years, I might have 5-year contracts. So it provides a little bit of a higher flexibility than it otherwise would. And this is the reason based on this structural demand change, which we see that we also have announced this morning the acquisition of the remaining outstanding share of FlexOffice. FlexOffice is the #2 in this market with about expected CHF 20 million in top line last year, has 11 locations in Switzerland, a little bit more than 20 employees that they do this with and they will become part of Swiss Prime Site going forward. We will not report it separately. It will be part of our Real Estate division, and we will report it as such.

The offering and the reason why we believe this is really adding value to our tenants is the highlighted part, the managed offices. So we are not focusing on the fully flexed. We already have the classic lease. This is the managed office part where we provide with the same tenants that we have in our own classic leases, we provide a fully managed. And we believe it's going to be both interesting because we can reach significantly higher yields there, but as well because it's going to be a pipeline for us. For example, the tenant that takes about half of the building here is currently a tenant that FlexOffice in a managed service solution or an alternative example is when Action, the retail chain entered Switzerland, they started with a managed office solution in Messeturm in Basel.

Today, they occupied own offices again in Messeturm as a classic lease. So it's not only a provision for companies that want it, but it's also an entry point for some of the larger tenants, which we believe makes it really super attractive. We signed last week. We will close it probably on the 1st of November. There's still a number of closing conditions pending, but it should be done by about November 1. The last element that I want to quickly mention is the Health segment. I mentioned that before, it's one of the megatrends wherever you go.

Those of you, I see a number of familiar faces who have been to Monthey or the Swiss Real Estate days. The vast majority was around demographics. So this is all about the demographics because it's got an increased focus on longevity, on the well-being, mental health, all of those elements, and we see a significant demand for that. No worries, we're not going to buy hospitals. This is typically a type of use that we do in office buildings. So nothing special in terms of the building, maybe a little bit more water, but nothing that really has any significant CapEx as a result. It's more a question on how you focus in terms of the sales of the marketing and these elements.

And we've been quite successful over the last couple of months already. We currently, and we'll show that as of going forward, have about 7% in the health segment. Of this is about 4.5% is Tertianum. The other 2.5% are kind of other uses in the health one. I'm going to show you an example of that. The interesting thing is it's not only a megatrend and the huge demand that we see with some special requirements that you need to focus some special approaches and ways on how to approach it, but we also see a higher willingness to pay up to 20% as we put it here on the chart. And in line of that, just 2 examples on what we already did. The first one is we signed an interesting lease in Schlieren, general practitioner clinic, 700 square meters of existing office space at a very attractive lease.

You see here kind of -- this is from another practice of the same provider. It's going to be a very high-class fit-out that they will put in there. It's going to be a general practitioner, as I mentioned before, in a previous office space. Very attractive terms for both of us. And the second thing is we also last week acquired a new building in Basel, close to Aeschenplatz. That 40% of that building is health related. The rest is it's an office space, and I think that does both 2 things.

First of all, it adds to our Aeschenplatz cluster here, right in the center of Basel in the core locations. It's fully let and it adds to this attractive health cluster. Very interesting yields as we see here, significantly above 4% net yield that we could do. It's a fully off-market transaction, and it's expected to close on December 1 of this year. This was it in terms of our own portfolio.

So, I will hand over to Anastasius in terms of a quick update on asset management.

Thank you, Marcel. Dear ladies and gentlemen, a warm welcome from my side. In the next few minutes, I have broken -- I'm going to give you an overview of Swiss Prime Site Solutions. I have broken down this presentation in 3 points. First point is about the market position of Swiss Prime Site Solutions. The second point about our 3 sub-pillars and the last point is about the opportunities for the future.

Let me start with the market position of Swiss Prime Site Solutions. As Marcel Kucher mentioned before, we have 2 strong pillars in our group. The first pillar is the Swiss Prime Site Immobilien and the second pillar is the Swiss Prime Site Solutions, the real estate asset management. Swiss Solutions is the leading independent real estate asset manager in Switzerland with around about CHF 14.8 billion assets under management. Our target to 2030 is to have CHF 23 billion assets under management with around about 70% recurring fees. More than 2,600 clients are invested in our 7 products. 650 clients are pension funds. This is around about 50% of all pension funds in Switzerland. The main investment focus of Swiss Prime Solutions is residential with around about 60%.

Now let me go through to our 3 sub-pillars. On the left-hand side, you see the sub-pillar fund management with around about CHF 4.6 billion assets under management. In this sub-pillar, for example, we have the product Akara Diversity PK or the Investment Fund Commercial. We raised CHF 280 million in new equity and increased our assets under management by CHF 200 million in the first 9 months 2026. The second sub-pillar in the middle of this chart is the wealth management with around about CHF 7.5 billion assets under management. For example, the Foundation Swiss Prime or the Foundation Fundamenta. We raised in this section CHF 200 million new equity and assets under management by CHF 200 million in the first 9 months 2026.

What I would outline here, we extend the contract with the Foundation Swiss Prime on 5 years to 2031.

And finally, on the right-hand side, the third -- the mandate pillar, so that CHF 2.7 billion assets under management, for example, ASGA or BASF. In this sector, we have gained a new mandate about CHF 400 million. So you can see on all 3 sub-pillars, we grew the last 9 months. So it's a strong sub-pillars of the Swiss Prime Site Solution section.

In the first 9 months 2026, we grew from CHF 14.3 billion to CHF 14.8 billion assets under management. Only banks and insurance companies with their own equity portfolio larger than us. We raised approximately CHF 1 billion in new equity. This is a record for our company with future capital raise of around about CHF 300 million expected by the year-end. The transaction volume has reached approximately CHF 1 billion to date. This is a market share from around about 10%. You can see it on the right side on this page.

Now let me explain how the pension fund system works in Switzerland. Around about 4.8 million active employees and employers pay into the system every year. This is not optional. It is a requirement. Around about 900,000 people are retired in Switzerland. The pension fund must therefore invest net contribution of CHF 70 billion new equity per year that they can pay the pensioners' pension. The real estate sector is a safe and long-term investment for the pension fund. From the yearly net contribution, CHF 70 billion, pension funds invest approximately 23% or CHF 4 billion to CHF 5 billion on average in the real estate market.

Our opportunity for the future and what I mentioned before, our target is to raise around about 15% of this CHF 70 billion net contribution, CHF 4 million to CHF 5 million. So that's around about CHF 700 million should be our market share of new equity from the pension fund market every year. With the leverage effect by 30%, we will grow around about CHF 1 billion per year in this sector. As the pension funds increasingly outsource professional portfolio management, significant opportunities can emerge for our mandates division. That was the third pillar on the right side. We're very confident that we will be able to bring mandates on board in 2027 and the years after. We see some potential in the French part of Switzerland and new products, maybe new club deals. But we also see some opportunities to expand our already profitable asset management business in Germany.

Summary, Swiss Prime Site Solutions is a strong and stable business case. We have more than 70% recurring fees. That means asset management fees or construction fees. Only 30% are not recurring. That means the transaction fees. EBITDA margin is higher than 65%, and we will grow around about CHF 1.5 billion assets under management every year to reach our target in 2030 with CHF 23 billion assets under management with 70% recurring fees.

Thank you for your attention. And now I hand over to Martina Moosmann.

Thank you, Anastasius. It's my pleasure to be here today. A warm welcome also from my side. One platform, 2 distinct businesses, all Real Estate. That's what we are. Before I translate the strategic priorities that Marcel and Anastasius have just elaborated, let me briefly summarize.

In the Real Estate segment, our focus remains on capturing -- on capital upcycling and capturing rent reversion, delivering on our ongoing and planned developments, I assume this is the highlight why many of you made it here today to see the construction sites behind all those numbers. And then this morning's announcement of the acquisition of FlexOffice underpins our drive to capture new demand trends. On the asset management side, we aim to grow with the Swiss market, aiming a 15% market share in equity raisings. We continue to put a strong focus on further expanding our bespoke mandates from pension funds capturing the outsourcing trend. And further, we selectively complement our offering with new products as well as growing our profitable yet small German franchise.

Size matters. The SPS platform with 200 ambitious colleagues is boosted by tailor-made AI capabilities, enabling us to flexibly scale and quickly adjust. Closest to my heart in this context is finding the sweet spot between our prudent balance sheet management and establishing profitable growth. More on that in just a few moments. In the years ahead, our focus will be strategy execution. We will do it the proven SPS way.

Let me walk you now through how the 2030 ambition translates into numbers. For full year '26, we expect the FFO I of CHF 4.30 to CHF 4.35, likely towards the mid or upper end of that range and an LTV below 39%. Operationally, vacancy should come in around 3.5% and AUMs will grow by about CHF 1.2 billion, a significant increase across multiple products and laying the strong foundation for the years ahead.

Before we turn to the longer-term ambition, a few words on planning assumptions. We very diligently follow economic developments and prevailing market conditions in Switzerland, but also in the rest of the world out there. Our ambition reflects a prudent balance sheet approach. That means that currently, we foresee the possibility of 2 interest rate hikes in the next 2 years. And also, we're not banking on further valuation uplifts. Under those premises, our FFO I, which is our leading KPI, is expected to grow 15%-plus with 2026 guidance as a baseline, meaning we should be able to reach a close to 5 handle by 2030.

Even with our model possibility of an interest rate step in '27 and potentially in '28, our interest coverage ratio would still be above 6x, and we will manage LTV below 39%. The operating targets for our 2 pillars are CHF 530-plus million in rental income with a vacancy of around 3% in the Real Estate segment. And for Asset Management, we target CHF 23 billion with fees of CHF 130 million total, thereof roughly 70% recurring. Now the 30% nonrecurring fees in Asset Management are transaction driven. In other words, the materialization of those fees is somewhat binary.

Let me now walk you through the main P&L drivers, starting with costs. One platform, 2 distinct businesses. Scale is a key driver for both segments as is our focus on costs and efficiency. The downward trending lines in both our businesses over the past years visualize this better than I could do in words. In our Real Estate segment, the capital recycling towards bigger objects and campuses contributes to the decline as does the shift to less cost-intensive assets with our undeterred operational focus.

In the Asset Management segment, as with any asset management business, the marginal cost per CHF 1 billion AUM goes down. As we will see in just a few minutes, the smart usage of data and AI allows us to amplify the work of our real estate professionals across the entire platform. Both pillars share resources and align processes wherever it makes sense for us. Examples are finance, including the funding and the tax function, IT, HR, while we keep a dedicated team catering to the needs of our bespoke client needs -- client groups, I'm sorry, for that.

So on the next slide, I'm going to show you a bit more detail on the real estate segment, starting left to right. Like-for-like growth, that's our daily business, optimizing the potential of our existing buildings through a bundle of levers with rent reversion being a key component. We shared some of the examples at our half year results. And of course, there's also some indexation. The combination will add around CHF 30 million annual income over the planning horizon. For transactions, we base our ambition on a slightly negative balance between acquisitions and sales. There are attractive opportunities out there like the one in Basel that Marcel just shared that we signed last week. But the transaction market is highly competitive, and we will be very selective on opportunities to follow, definitely not compromising on the return.

On a net basis, we expect CHF 35 million from developments, the ones that Marcel showed and the biggest ones you're going to see over the course of today. You heard a gross number of CHF 50 million from Marcel. I show you a CHF 35 million number. The difference is being some buildings going temporarily offline because of refurbishments. The stage completion of Jelmoli and YOND, including the tenant fit-outs and subsequent move-ins takes time with the full rental cash flow kicking in, in 2030. Last but definitely not least, we aspire to add at least CHF 15 million from our new products, managed office with the acquisition of FlexOffice being the most significant one there.

Now let's look at the walk for asset management. We will further build on our proven track record managing real estate assets for pension funds. Aspiring a 15% market share, this will translate to fee income of about 25 -- additional fee income of about CHF 25 million by 2030. Then growing our successful mandates business will be supported by the observed trend from pension funds to outsource the management of their real estate portfolio to dedicated experts, which is typically not their core business, but it's ours. Remember, we're all real estate.

And the third pillar of fee growth will come from selective expansion of products in Switzerland as well as growing our profitable but currently still small franchise in Germany. How will we fund all that growth amid potentially rising interest rates and a strong commitment to keep our balance sheet prudent. Our liability portfolio is well diversified with complementary funding sources across long-term mortgages, syndicated bank loans, bank facilities and multiple pockets of capital market funding. Our guiding principle is an LTV below 39%. Even with the model possibility of interest rate steps in '27 and '28, our ICR will still be above 6x. I said that before, but I can't say it often enough. Assuming interest rates don't move, and I would be happy to be proven wrong here, the ICR multiple would, of course, stay in the 8x region that we are today.

Unused credit lines of CHF 700 million allow us to approach the refinancing of our '27 maturities, roughly CHF 450 million without time pressure. That's a good position to be in. We diligently follow the economic developments. And therefore, our plan A is to return to the euro market after our inaugural issuance 12 months ago, but we have several options available for us. We will manage our balance sheet to maintain the LTV levels commensurate with our A3 rating and are well prepared to maneuver the volatile market environment.

Allow me at this point to introduce Christian Hepp to you, our new Head of Corporate Finance, Treasury and Investor Relations. And together with him, he joined on October 1, so in a steep learning curve, together with him, we will fine-tune the market approach in the coming weeks and months.

And with this, I would like to wrap up the financial part of our ambition. Our earnings power measured by funds from operations is expected to grow 15% by 2030. So from the CHF 4.30 to CHF 4.35 today. We aspire to get to a 5% number. Our ambition accommodates the potential of 2 interest rate steps. The growth in both our segments along the discussed strategic priorities, combined with our focus on efficiency across the platform and increased leverage from data and AI provides a resilient foundation for that. With about 5% contribution to FFO growth from our asset management business, the share of asset management is expected to further grow from around 15% currently. We also confirm our stated dividend payout guidance from 80% to 90% of FFO I.

And with this, I conclude the CFO comments on our strategic Ambition 20 2030. But I got 2 more points I quickly want to make. As of 2027, we will report our income statement following IFRS 18. We will provide you the pro formas for '26 in February. That should give you enough time to adjust your models. And then as always, we are among the first ones to report full year numbers. February 5 is full year. But already, please mark July 22 for the half year since we're also going to accelerate the reporting of our half year numbers.

With that, back to Marcel.

Thank you so much. So that pretty much completes the strategic update and the aspirations, but we have one more thing. And that one more thing is very close to my heart and to Anastasius' heart and to Martina's heart. We really believe we are in a fantastic position, and this is not just TikTok, we'll show you what we did over the last couple of years in order to benefit from data and AI. And why is this important?

First of all, we are in an outstanding position to use this. As you can see here, we have CHF 28 billion in assets currently. We'll grow that over the next couple of years to probably close to CHF 40 billion. So that gives us a very large view on what's happening in Switzerland, a major view. We see 2,500 transactions a year. We all log them all in the same database with all the data that we can have to it, including location, the price that we got that happened and the expected yields. We have an extensive tenant base, 10,000 tenants plus across all the segments and across all Switzerland. And we have deep real estate experience.

And all of this, we have live real time. We see every minute, every transaction that's happening. We see every minute, every new contract that we sign in any of our divisions. What we worked over the last 2 years, we started with this exactly 2 years ago. We built what we call a lake, where all of this data flows together. Currently, what we have in our data lake, and you can see it here, is an integrated cloud native and what is most important, governed database. Governed means everyone only sees within our group sees what he's allowed to see, what he would see anyway otherwise without the AI.

And we are putting in there information from all the transactions, as I mentioned before. We have one database for all of our divisions. They're all separated in terms of what they see, but in terms of how we can actually look at it and extract the data, it's all integrated. From a transaction valuations, tenant interactions, property and sustainability reporting, including live energy data we have from most of our buildings, all of our ERP data, all of our accounting data, HR data, everything in one database that we can use. And we have an AI-enabled workforce. Since about 9 months, we're doing regular trainings and updates. We have user groups on AI and all those elements.

And what it creates is live market insights. We have a differentiated client experience. We'll talk about this. So we aim to provide the best client experience that you can have, including new products, and we'll show off one of them in just a minute, additional value add for our products and in particular, of course, for our investors.

This centers across 3 elements. The first one and always the most important one is customer. So AI for us is not cost reduction. Not at all. AI for us is enhanced tenant experience. We will launch the first products on that early next year and investor value add, and I'll show you what is in the pilot currently and that some investors are already using. Second one is decision quality and speed. I'll show you a quick demo on how this works currently. But that is the most important element probably in it. We are much faster. We can look at much more transactions, and we are much better in terms of taking the decision, putting the right price, identifying potential risks, et cetera.

And then, of course, what follows from that is best best-in-class productivity. As I mentioned before, this is not in the center. And -- we do this on the back of that we have been working on this for a very long time. Since 2023, we canceled all the contracts where we provide data to third-party providers. That includes MSCI, that includes any consolidator of data. That includes even our valuators where we have in the contract a rule that they're not allowed to use our data for anything else. That includes our property managers with the same contract. So we have been protecting our data since about 3 years now.

Then we worked on the data lake, as I mentioned before, and business-led innovations. Since August of this year, we have more agents in our group than we have employees. And that is not, as I mentioned before, not to reduce the number of employees, but to provide better decisions, better services to our tenant. And we have now a dedicated AI factory with 10 employees, data engineers, AI specialists, et cetera, that provide really, really cool elements.

I want to show off 2 of them of what we did. The first one is, as I mentioned before, we do a transaction in Switzerland about every second day as a group, a sale or an acquisition. In order to do that, we do an enormous amount of due diligence work. As I mentioned before, we see about 2,500 transactions a year. So far or up to a couple of years, you did the due diligent paper-based, of course, that long ago, took you 40 hours. Now mostly what people do is we do it obviously searchable. You get an electronic data room. still a day of work, and now we do it automated 4 hours, human validation. It's 10x faster, much better decision and it's scalable across all of our products.

And I want to show you quickly how that looks. We wanted to do a real-time demo, but then given that we are on the construction side and that all of these things, we did a video, but it's exactly what it is. This is our asset workspace. As you can see, this is live. This is not something we have some crazy ideas about. This is not a mockup. This is live. And we have 3 superagents here. So; super-agent Carla, super-agent Dennis and super-agent Avera. They all do different things. What we're going to show off today is Carla, which is acquisitions.

So basically, what you do here is you take the data room that you get and you have Carla analyze it and then you work with Carla in order to come to a decision on whether you see any potential problems with that. Dennis is on the portfolio side, helps you with portfolio optimization, helps you with ideas on where you can work on the cost, where you can work on the top line, all including of our vast own database. And Avera is working on reporting and analytics, working, again, with our data to show you where compared to the data that we have from the same region, we see options, we see possibilities, we see improvement, we see improvement potential. But here comes Carla. If that works.

So this is not cut. This is Carla. So we do a red-flag due diligence here. We show off here only the tenant database. Otherwise, it's too complex. It takes you roughly 60 seconds for a portfolio to analyze. So it's not that. And what you see here is it goes through all the kind of contracts. These are all fake contracts that you go here. You see kind of the different contracts that they looked at. You see here the different colors and where you see potential issues. This is German, unfortunately, but it basically says it tells you kind of the type of problems that you might have and the risk and obviously, everything is super detailed.

So it jumps directly to the part in the contract where they identified that issue. You can, of course, then, once you work with that, you can ask Carla to summarize this in terms of, okay, now what are my biggest risks potentially here? And you see here, Carla is working on that. So these are the 3 contracts that you have where you see a major issue here with the 30 days notice if the CHF 9.5 million fit-out loan is not compensated or any potential other elements. You can also work with external data here. So what probably a lot of people do that acquire assets, they quickly check what is in the market, go on Homegate, go on any of those contracts.

So here -- what I say here, compare that to any offers that you currently see in the market. Carla is quickly working on that, and you see what it does or she does. When it summarizes here, you see kind of it is in the line of what you have. If you go further down, we see kind of the offers that she analyzed from ImmoScout, from Homegate, from Flatfox, and you saw how long it took, not even 30 second, 20 seconds that we can do that. And this is a small part of what Carla does in order to help us to come to the best solution, and we are the only one that can do that because we have CHF 30 billion in assets, and we have all the data in one database.

I want to show you another example because this is our internal element. You will never see that. But the other one, you might. And the other one is when we -- when we talk about reporting and Martina just talked about being faster and providing you kind of our financial information earlier. But so far, this is still the same than it was 20 or 30 years ago. No, it's no longer printed, but it's electronic, but you get a long report and you have to work through this and you have to do your analysis, et cetera. And what we try to do here is an AI-powered real estate interaction that is personalized with your portfolio that you invest in us. So it's life insights, it's interactive and it provides a super cool experience. And let me quickly show you how that works.

[Presentation]

This is live with 5 pilot investors so far. The feedback is flabbergasting. It's tremendously good. This gives you, for the first time, an opportunity to work with our data to interactively have ideas, check it with others, have it simulate elements whatever you want and that on the proven back of the real numbers that we can provide from Swiss Prime. We will start with the asset management with this. Eventually, we'll bring it to all of our investors, and these are just 2 of the elements that we currently work on in our AI factory.

So that leaves me with a summary. Yes, a little bit too long. But here's our strategy of what we're going to do going forward. We continue on our capital upcycling, making our great portfolio even greater going forward, all in the sense of capturing the reversion potential that we have. We're working on our developments and refurbishments with an aim to gaining yield spread of 1% to 1.5%. And finally, I think we've proven today that we are fast in capturing up with potential demand trends, including kind of the trend to convenience and outsourcing with managed offices.

On the asset management side, we have a clear goal to capture 15% market share of kind of the new allocations of Swiss pension funds. We want to leverage on the outsourcing trends where we gain new mandates with our large pension fund system, and we will selectively launch new products. You will see that over the last time and strengthen our German platform, all built on our great platform and AI-enabled platform. And these are the ambitions for next year and 2030. FFO I CHF 0.05 up from CHF 4.30 to CHF 4.35, LTV -- sorry, 15% over the next 5 years through 2030. LTV remains at below 39% for the year-end, about 8x ICR, including potential increases in the rates, we will still stay at a comfortable 6x up and hence, comfortably in the A3 rating. On the operational targets by 2030, CHF 530 million in the rental income, around 3% vacancy with an updated target for 2026 of 3.5%. And on the Asset Management side, CHF 130 million fee income, of which 70% is recurring, underscoring kind of the stability of the business with an AUM of CHF 23 billion, building on the updated again here guidance for 2026 of CHF 15.5 billion and this is with Prime Site.

So what we're going to do now is we can do Q&A because we, at least the majority, I hope, will spend the rest of the day with us. We thought we will start online if there are any questions. And hence, I don't know how that works, but I hope we can have potentially online questions to start with.

[Operator Instructions] Currently, there are no virtual questions. So I'll hand back to Marcel for questions in the room.

Good. I thought there might be some questions here in the room. Let's start here in the front that might be easier.

Ana Escalante from Morgan Stanley. So my first question is on your 3% vacancy guidance. I think at the moment, you have like operational vacancy of just above 3% with 0.5 point of strategic vacancy. Is that guidance kind of comprising both of them? And therefore, you're assuming that your operational vacancy will go towards below 3%? And is this kind of a new paradigm for Swiss real estate? Or this is just a result of your portfolio becoming more prime and therefore, that vacancy going lower just due to a change in the mix?

Thank you for the question. It's probably a combination of the elements. The first one is by even becoming more prime, I think that will help because we see this clear flight to quality in terms of our tenants, and we expect this to continue going forward. On the other hand, we also see that our overall development volume will probably come slightly down going forward. You've seen the developments that we announced, if you compare them with the ones that are under construction at this point. So this is slightly lower, hence, that also means we'll probably have a slightly lower structural vacancy due to our strategic vacancy due to construction work. But yes, we do believe this is an overall vacancy number, so including everything, and we do believe that this is manageable going forward, yes.

Then another question on your funding. As you said, you are now releasing a little bit the developments, but still you have certain CapEx requirements going on. Could you quantify them a little bit, maybe a guidance of CapEx per annum and how you're going to fund that on whether that 39% LTV guidance, what kind of valuation or revaluation assumptions are underlying in that guidance?

On the CapEx, of course, on a portfolio of CHF 14 billion, naturally, you have CapEx. I mean we've shown you, call it, the out of the ordinary CapEx type range for the remainder of the portfolio, assuming somewhere in low triple digit, just below triple digit per annum. If you compare that with the CHF 14 billion, that probably gives you a good assumption on what we do just on maintenance with refurbishments shown separately as you on the larger one, as you saw on the slide.

Altogether, we'll probably stay in the CHF 200 million over the next 3 to 4 years until the larger ones are gone, and then that will come down maybe by CHF 50 million or something like that going forward. And the funding is the continuous capital up cycling, as we mentioned before. That's why Martina said, on the whole acquisition and sales base, it's probably going to have a slightly negative impact on the top line, which is why we sell to invest both in our development most in forefront because they have super attractive yields and anything that we can -- that we don't invest in our then we look on the market opportunistically, as Martina mentioned before.

And then my last question is on Germany. You're saying that you'd like to grow your platform there. I understand that, that means that you'd like to raise more capital, raise more funds and expand your asset management platform there. Does that mean also that you are looking to increase your investment in Germany or in German residential and how you assess the current kind of risk that is starting in Berlin and could potentially expand to the rest of the market?

Look, I mean, as everywhere in our asset management, we don't invest our own money. This is a pure service business. We have not a single Swiss franc, neither in our Swiss funds nor in our foreign funds or Germany. And we're not going to change on that. So that is an element. When we say we see opportunities in Germany, we mean currently, the market is certainly not on a peak, and that provides, on the other hand, opportunities to invest. We see attractive investment opportunities for our clients. We also see some demand on that. Obviously, overall, this is not super high, but there is demand. in Germany, plus you would also not exclude maybe to do an M&A transaction. That is part of that.

And then obviously, for M&A transaction, given the current market environment, it is, in fact, quite attractive. But this is going to be small. So I don't expect here a multimillion element that we do is going to be small, if anything at all, but we're looking both at organic and inorganic elements here.

Ken?

Ken Kagerer of ZKB. The first question, when will the pickup in new assets under management happen? Is it front-end or back-end loaded? Currently, I was assuming a more than CHF 1 billion increase per annum driven also by the currently very strong market environment. What interest rate environment are you assuming until 2030? And what is the associated risk? The 23% real estate allocation of pension funds could, in my opinion, change in a rising interest rate environment. And seeing the limited target operating leverage utilization into the future, do you need M&A growth abroad to reach these targets? And now I think you answered the second -- the last part of the question partially. You said you will only take a small M&A at most, right?

Yes. This is not M&A driven. If anything, M&A might have a small part into that. But this is organically driven. And what Anastasius quickly mentioned before is that we see this continued growth of CHF 1 billion to CHF 1.2 billion organically. This is what we're going to do this year. In addition to that, we see a significantly stronger focus more than ever of pension funds in outsourcing their kind of real estate management. And we won a large contract that will come into effect next year. That is not part of this CHF 1 billion. This CHF 1 billion is the normal organic part, as Anastasius showed, part of the allocations that you have in the pension funds.

And look, going forward, who knows what the interest rate is going to do. Martina explained the basis for this is that we see 2 hikes.

Potentially.

Potentially, then this will still work out. If you do 2 hikes, if that were to happen, then you still have an attractive spread between real estate and say, government bonds of 2% to 2.5% still. And hence, in our view, there's no reason why pension funds shouldn't continue to invest in real estate.

So basically, you assume an unchanged interest rate environment, correct?

This is based on the current environment, including the possibility of 2 rate hikes and anything that we believe could follow that. Anything else given the interest rate forecast of the National Bank, the inflation forecast of the National Bank, et cetera, would according to us not make sense currently.

My second question, does the target yield spread of more than 1% to 1.5% mean we will see a massive value uplift with the completion of the Jelmoli building? And what would happen if your -- with your yield spread target if market discount rates would change into the future?

Well, we'll see. We have to ask our valuators on whether we see a value uplift. But in general, obviously, if you are 1% to 1.5% above market yields, then it should result in an uplift once you're done your development. But I think what it more does, it's a guidance for us on what type of developments we do, where we invest our money and how to make sure that our capital allocation is value adding to our product. And since Karin took over, we have already changed a number of our developments. We've shown now kind of the next phase that's going online where this was a clear element in deciding which ones to go push forward so that we at least have this 1% to 1.5%.

Maybe an easy one at the end. What could be the impact of the tough changes around the currently discussed changes around Lex Koller for your 2 businesses?

An easy one. Thank you, Ken. Well, you've been to Bern so I've been on the stage there. Look, I've been talking to many politicians lately, including Baume-Schneider in Switzerland. I'm still very positive. But in the end, the rational arguments will prevail. This is not helping the shortage on apartments and not at all, given the small part that is only affected by any potential change.

On the other hand, it might have significant negative impact that I think nobody wants. So in that respect, yes, it's politics. We are actively engaged. But eventually, in Switzerland, reason prevails, and I'm very convinced that this will be the case here as well.

Matteo Lindauer of Vontobel. I've got a question on the asset management business. You talked a lot about in the past about the EBITDA contribution of CHF 75 million from the asset management by 2027. No word on this today. Do you have any message on this?

Let me take that as the CFO. I think when you look across the world, asset management businesses are driven by assets under management. So our guidance is on top line, the fee derived by the assets under management. We will, of course, report EBITDA, but will not outside of the reporting dates, give targets or guidance on EBITDA. Anastasius has mentioned that the margin of 65-plus percent will remain intact, and I think we'll leave the guidance there.

Nothing to add.

We will no longer guide on EBITDA of the individual divisions. We quickly talked about that before. We have now an integrated business model with the 2 divisions. And hence, our focus is on driving the CHF 4.30 to close to CHF 5. But we'll continue to report all the details. And this doesn't mean that we're not reaching it that we're no longer reporting on it in the guidance. We will report, of course, unchanged in terms of the segment reporting, but we're no longer guiding on it.

It's Tom Rothaeusler from Deutsche Bank. Just one question on the Swiss residential market. Maybe you can provide some update here because it's rather relevant for your asset management growth ambitions basically. We hear that the market seems like rather peakish. I think there are also some initiatives to -- for more regulation. Any update would be useful here.

Yes. We have great immigration. So the last 5 or 10 years, I think it would be also in the future. So the demand would be high. And the asset management part is not only the residential part. So we have also 40% in office or logistics or other parts. So -- but I think for us, we have foundations like Swiss Prime or Foundation Fundamenta. Also we have funds. So we can play both sides. So if there more regulation, maybe it could be better for the asset management side, maybe of the foundation side. Maybe it's a little bit not so good for the foundation for the funds. But yes, I think with these 3 sub-pillars, we are really good in the market. We have a really good standing in the market. And also, it's more regulation, maybe we can get more mandates in the future from the pension funds directly. So I think our market position, residential, office, logistics, we're really, really confident for the future.

And maybe on the residential part, look, most of these regulations in Switzerland are on a cantonal level on a state level. And we have 2 states that are city states. This is Geneva and Basel. Both of them have introduced regulations. The rest are not city states. And we had a vote in Zurich in summer of this year, pretty much to do something similar, even a little bit less regulated than in Basel was voted down by 60% plus.

So in that respect, we're confident that in terms of the regulation, this is probably about it because for the remainder, you need a canton that is not only a city, which obviously are rather on the left side typically as everywhere. And hence, we don't necessarily see that.

And maybe the last thing, more regulation doesn't mean lower yields on the contrary, typically. So obviously, if you have capital and you want to allocate it and you want to allocate it to a location where you have maybe a little bit more regulatory complexity, let's put it that typically capital requires a higher yield for that. And that's pretty much what we are seeing. That's why we're also still investing in Geneva. Basel is more complicated because the regulation is newer. But in Geneva, you have an established regulation. As a commercial company, you can deal with those as long as you know what the environment are. And as I mentioned before, yields are typically not lower.

Yes. And the business case for Swiss Prime Site Solutions is only A location. So we have B and C location for the residential part, and that's good for us.

Tommaso Operto, UBS. So I have 3 questions. First one on the CHF 530 million rental income target. You took in the bridge '25 as a base, but in '25, you are quite active on the acquisition side. So it's around CHF 17 million or so, if I remember correctly, of annualized rental income. Is that part of the like-for-like? Or is it part of the development or additional upside? Where does that fit in?

In the like-for-like.

Like-for-like. And then on the asset management part, a quick follow-up actually, Matteo's question...

Sorry. I'm sorry. I thought I can be smart, but that didn't work.

So on the Asset Management business, you mentioned recurring income should increase, but my guess is that it's going to be a lower-margin business, right, with transaction-related business being higher margin. So -- is that kind of just offsetting the cost benefits you're having and we can assume kind of stable margins going forward? Or what would the mix impact be there?

That's a little bit of mix, but we are really stable on the recurring fees. With the growth of the funds or foundation, we go a little bit down or were decreasing a little bit the asset management fees, but with the volume and with the new contracts that we have, so we will stable be on the recurring fees. On the nonrecurring fees, yes, we are in the market. So we have transaction, we have capital increases. We are really confident that we will reach this target.

And in general, no. I mean you've seen we are currently at 35% cost ratio. And the forecast that we do here or kind of the ambition that we give here is 33% cost ratio. So no, cost ratio goes down further.

Yes. And we can profit from the AI you see it before. So the economy of scale will a big part be in the Swiss Prime Site solutions for the future.

And last question on FlexOffice. Do you -- can you give an indication on what kind of transaction multiple you paid for...

No, but it's in -- but the overall number is in the low double-digit Swiss franc million, very low, very low, just about double digit.

Just an add-on question on FlexOffice. You're guiding for a doubling of revenue by 2030 from the CHF 20 million that the companies are generating right now. Could you share some thoughts on the profitability of that business going forward currently and going forward?

Yes. Look, I mean, typically, what we see if we do -- if you -- 9 of the 11 locations are Swiss Prime Site locations that FlexOffice operates. So we have a very good comparison in terms of what we can generate on our own, taking, for example, Bahnhofstrasse, which we have had in the market. And then once we put the same location with the same offices, with the same fit-out through FlexOffice in a managed solution case. And what you typically see is you double to 2.5x the top line. So what we've seen in Bahnhofstrasse now currently is prices on a square meter basis between CHF 2,400 and CHF 2,600 compared to, say, CHF 1,000, which is already typically a good price for an office space in Bahnhofstrasse.

Now obviously, you have costs associated to that, increased cost. So I think bottom line, you see between 60% and 80% higher bottom line. And that's also the reason why we think this is super attractive. And this is funny enough numbers, we visited all 3 London office players, all 3 of them, the large ones, the public ones, all 3 of them have their own Flex division or the Managed Services division and all 3 of them report pretty much the same figures, 2 to 2.5x top line, 60% to 80% higher bottom line. That's also what we experienced through FlexOffice if we look through it. So in that respect, it's both driving top line on the one hand, and it's driving bottom line on the other hand. But most importantly, it's a demand that we get from our tenants.

Great. And then another question on the properties that you're currently looking at for potential sale. You said you are targeting of selling properties of market value below CHF 20 million. So could you remind us how many properties they are in your portfolio? What would be the...

The small dots. It's not only that. I mean, yes, that is one of the elements and most of the properties that we sold were those relatively small properties, but it's also others. Ultimately, we sell properties if we don't see an attractive like-for-like growth opportunity anymore. That's what it is, plus the small ones where we just got the best owner. But it can also be -- we are -- with one property in the market, you know that. This is a development. It's a former Swiss Prime Site in Geneva, where we did the development, the best use is residential and that just doesn't fit with our pure commercial focus, and hence, we're in the market with that property as well. So it might be different reasons, size where we don't see kind of the future reversionary potential anymore or that we develop because that is the best use case for that particular location and that particular building. And then we sell if that should happen to be residential, for example.

John Vuong from Kempen. I just want to zoom in on Germany. Is this going to be just residential? Or are you also looking into commercial real estate? And what's the rationale behind growing into Germany? Is that demand driven by your customers? Or have you just outgrown Switzerland in terms of low-hanging fruit?

No, no. We have not outgrown Switzerland. As Anastasius showed before, we can still grow here. But we do have an attractive platform in Germany. Germany is profitable. It's actually quite profitable. We see other profitable players in Germany. We do get requests from our, in particular, say, German or European investors to become a little bit larger because we are on the smaller side, so to speak, for a partner, in particular, when we're talking about the second trend that we mentioned here as well, the outsourcing, which you see in a similar basis in Germany, we're a little bit too small. We believe you have to double, maybe triple in size in order to be large enough to be seen as a stable partner, even given that they have the backing of Swiss Prime Site on a local basis.

And in terms of what this needs to be, currently, I'd say it's all institutional money. First of all, that is the most important thing. We're not planning to do anything in kind of the private environment. So the clear continued focus on institutional money. And then in terms of the assets, realistically, I don't see commercial assets or say, office assets currently as a focus. There is some interesting subsegments in logistics, for example, and maybe light industrial and residential is something we really know in Germany. But there's no restriction on that. We'll see what the demand is from our investors.

Sorry, just to follow up on that, the institutional money that you're going to manage, that's all going to be Swiss also?

Switzerland currently doesn't make a lot of sense, given where the yields are in Germany, if we go for good quality, given what the refinancing costs are, given what the Swiss franc does, that's not the case. No. We have probably right now, Anastasius correct me, 1/3 is local investors, so German investors and maybe 2/3 are Swiss investors. So the focus is clearly to growing the local investors and not the Swiss ones. If there are Swiss ones, some of them want it because of diversification of their portfolio, then of course, they're super happy, and we continue to do that. We just recently closed a number of rounds for new investments from Swiss pension funds. But I think as a general trend, I feel more skepticism than excitement.

It's [ Alex Totomanov ] from Green Street. One question on Alexander Totomanov. I think last time we looked at the CapEx spend, that was CHF 210 million at maybe the full year. I don't think there was an update at the half year. We are now looking at CHF 243 million from memory. I was left the impression that was all signed back at the full year, seeing some new things emerged. But I was just wondering, at the time, I calculated that you would have cost on cost of about 3%. Now you're saying 3.3%. To get to the 3% at the full year, I think I was already kind of looking at rents for the office portion above CHF 1,000 given that the lease is already signed for the retail. Just wondering what kind of rents are you underwriting for the 3.3% like it must be CHF 1,100.

No, no, no, it's not. We have not changed that. We also have not changed the top line. The top line assumption is still CHF 33 million, as we pointed out. And yes, it's going to be the prime office space in Zurich, and we're still expecting this CHF 900 million to CHF 1,000 that we did in the past. Yes, we have an increase by CHF 35 million. That's absolutely correct. The last update that we gave on that was in February. We didn't really give an update in August because we had the Capital Markets Day upcoming. And yes, it's more foundation work, but the planning is done now. You'll see it on the construction side, pretty much the foundation work. We're very well advanced. And now we have not only kind of the frame contract with Implenia, but also Implenia has their subcontractors to 95% are contracted.

And hence, we feel we are now close to stability. It has also not changed, say, over the last 2 quarters in terms of our estimates. We're stable here now. We have pretty much seen everything and the planning is finalized. You'll see it on the construction side, the entire building is open now. And hence, we're confident that it will remain on that element.

The 3.3%, as I mentioned before, that is for us the investment that we did or kind of the decision to close Jelmoli and convert it into a multi-use. That is special to the others because it includes operational elements into that, that incurred recurring losses, so to speak, which are included in this 3.3%. So for us, this is the decision to close, including all the costs that we had to close Jelmoli, the cost to refurbish the building and then kind of the bottom line impact, so to speak, of the new building. That is the 3.3%.

Ken Kagerer, again. I have a purely theoretical question now.

I'm not sure we're the right ones to answer that.

Okay. If a real estate company owns a FlexOffice provider and doesn't show the profitability of this FlexOffice provider in theory, they could show almost any vacancy rate, correct? And we wouldn't know if this is a feasible letting or not for the FlexOffice provider.

No, you would know because we show -- we have to -- this is intercompany. We have to show kind of in our top line that we show, we show the top line of FlexOffice as well. We eliminate the income...

No, of course, but the margin, the profitability, so you could do more. This real estate company could theoretically hide vacancy rates if they lease it out to a FlexOffice provider.

We look through, just like we did with Jelmoli, the same thing. It's all look through.

Yes. Maybe 2 more questions because we are 1 minute 17 over time, and we need to get going. Otherwise, we can't look at this beautiful building here and the others. I have one here and then one here in the back, and then we'll be around for the rest of the day, and then we can ask all the remaining questions.

Can you share your thoughts on equity-funded acquisitions? Does it make sense currently in the current environment to use the equity market as a way to fund new deals?

Yes. Look, I mean, probably for most of the players, not because in Switzerland, the majority of the players trade roughly at NAV in Switzerland. And then on the other hand, you see and we mentioned that in the beginning, relatively low yields that you currently get because the market is active and hence, you don't necessarily see that. So typically, I'd say no. The last time we did an equity increase was into a situation of falling interest rates. And I think in hindsight, absolutely tracking perfect. Because when you see the falling interest rates, that will typically half a year, 1 year later translate into also lower yields, and this is exactly what you see. And if you are fast enough or at the beginning of such a cycle, then you can benefit from the revaluation afterwards.

Now we have the opposite. We have increasing interest rates, if anything, maybe flat, maybe in a tendency, probably a little bit of an upward pressure. So this generally doesn't sound like the right environment. Now having said that, we trade at 20% premium. And should there be, for whatever reason, the right asset because of a special situation, we would, of course, look at that. But generally, I'd say it's not the right environment to do that.

And then the last question, please. 3 minutes, 23 over as this nice screen tells me.

Just on the managed offices, you mentioned the rents. But if we talk about yields, and you mentioned the U.K. companies as well. And I believe in the U.K., the valuers in terms of the managed offices, they value around 80% of the NOI using kind of a traditional yield and 20% services at 8%, 9% yield. So in Switzerland, how do you -- how do the valuers...

We'll have to figure out that. But for the time being, it's a relatively small part of our portfolio. We mentioned that even on 2027, it's about CHF 10 million in profit in top line increases. So it's a relatively small part. So don't expect here a significant uplift. But in general, we do believe if we manage to get a higher rent and also a higher net income on that, it should have a reflection in the valuation, at least after a certain time when you prove that this is not a one-off contract, but this is a stable business, which FlexOffice has proven. They're in business since 2015. So they have a long track record and experience. But don't expect major uplift here. But if anything, it should have a positive impact, yes.

So with that, we come to the next point. Any other questions, of course, we are always here for the entire day. And we would now split into groups. You got this fantastic fully included managed tech. This is what kind of food you get for lunch. No. It's going to be the 3 groups that we split into now. You see the respective numbers and colors behind. So please follow your group. Otherwise, with too many, we can't go through a construction site with almost 60 people. So please follow your group. You can leave all the stuff here. It's going to be safe. So no worries will come back here before then we walk over to FlexOffice for lunch.

And with that, thank you so much for coming. It was a great pleasure to welcome you here in this beautiful Fraumunsterpost. Thank you so much on the screens. We are very pleased that you are interested in following our company and our exciting developments. We are Swiss Prime Site. Thank you.

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.