Post on 31-Jul-2020
H1RESULTS 201817 August 2018
Agenda
Key Facts and Figures 3
Financial Results H1 2018 7
Portfolio and Vacancy Rate 14
Capital Structure 20
Development Sites and Projects 23
Subsequent Events 35
Outlook 37
Annex 39
© PSP Swiss Property I Page 2
Property Portfolio (June 2018)
© PSP Swiss Property I Page 3
Portfolio value CHF 7.3 bn Zurich 56% CHF 4.1 bn
Geneva 12% CHF 0.9 bn
Lausanne 5% CHF 0.4 bn
Basel 9% CHF 0.7 bn
Bern 4% CHF 0.3 bn
Other locations 6%CHF 0.4 bn
Development sites and projects 8% CHF 0.6 bn
In total, 166 investment properties, plus: 4 sites: “Residenza Parco Lago”, Paradiso; Löwenbräu site, Zurich; “Salmenpark”, Rheinfelden; Wädenswil site.7 projects: “Rue Saint-Martin”, Lausanne; “Hardturm-/Förrlibuckstrasse”, Zurich; “Bahnhofquai/-platz”, Zurich;
“Orion”, Zurich; “Rue du Marché”, Geneva; “Spiegel”, Köniz; “Bahnhofareal”, Rheinfelden.
Current Market Environment
Swiss market environment Improving business sentiment; an increasing number of companies is considering expansion
and relocation plans; increasing number of start-ups
Office rents stabilising on average at about the current levels; lease incentives remain important
Signs of enhanced demand in Zurich CBD and Zurich West, one of our main markets
Selective improvement of demand in Geneva
Outskirts of main cities, peripheral regions and smaller agglomerations: ongoing pressure on rents and incentives
Yield compression for prime assets expected to slow down
Economic outlook for Switzerland1 2018 2019GDP 2.4% 2.0%Inflation 1.0%Unemployment 2.6%1 Source: SECO, June 2018.
© PSP Swiss Property I Page 4
Main Developments
© PSP Swiss Property I Page 5
Real estate portfolio Portfolio value CHF 7.3bn (up 4.2% compared with December 2017) Disposal of Av. des Morgines 8/10, Petit-Lancy for CHF 55m (i.e. 4.5% above latest valuation) In process of selling, Bernerstr. Süd 167/169, Zurich and a development project in
Rheinfelden, “Bahnhofareal” (expected in Q3 2018) Stabilisation of rent levels across the portfolio
Vacancy and rental situation Vacancy rate of 6.8%, of which 1%-points due to renovations Of all 2018 maturities (CHF 29.1m), 87% renewed Expected vacancy year-end 2018; new < 6% (compared to around 7.5% guided in May 2018)
Financing Passing average interest rate 0.92% on 30 June 2018 Low leverage with an adjusted LTV of 33.4% CHF 850m committed unused credit lines as per today Moody’s: Issuer Rating A3 (outlook stable) Fitch: Senior Unsecured Rating A- (outlook stable)
Agenda
Key Facts and Figures 3
Financial Results H1 2018 7
Portfolio and Vacancy Rate 14
Capital Structure 20
Development Sites and Projects 23
Subsequent Events 35
Outlook 37
Annex 39
© PSP Swiss Property I Page 6
Consolidated, in CHF m 2015 2016 20171 H1 20171 H1 2018 ∆
Ebitda excl. ∆-RE2 232.7 241.6 242.2 114.5 117.7 2.8%Net income excl. ∆-RE2 161.3 172.5 177.7 80.1 85.6 6.8%Net income 187.7 134.9 256.9 94.2 158.3 68.0%Rental income 275.1 276.3 272.5 136.4 138.7 1.7%
Per share, in CHF 2015 2016 20171 H1 20171 H1 2018 ∆
EPS 4.09 2.94 5.60 2.05 3.45 68.0%EPS excl. ∆-RE2 3.52 3.76 3.87 1.75 1.87 6.8%
NAV 84.38 84.30 86.96 87.17 0.2%3
NAV before deferred taxes 100.83 100.95 104.22 105.14 0.9%3
Share price 88.00 88.00 92.35 92.00 -0.4%3
Distribution 3.30 3.35 3.404
1 Restated due to IFRS 15, Revenue from Contracts with Customers (recognition of revenues relating to condominium sales). Relevant FY17 P/L positionsaffected: EBITDA excl. ∆-RE2 was CHF 242.8m; net income excl. ∆-RE2 was CHF 178.3m; EPS excl. ∆-RE2 was CHF 3.89.
2 Excl. ∆-RE: excluding net changes in fair value of the real estate investments, realised income on sales of investment properties andall of the related taxes. Income from the sale of properties, which were developed by the Company itself, is included.
3 Compared to year-end 2017.4 Ordinary dividend, paid on 11 April 2018.
© PSP Swiss Property I Page 7
Key Figures
Consolidated Income
(CHF 1’000) 2015 2016 20171 H1 20171 H1 2018 ∆
Rental income 275’063 276’316 272’454 136’364 138’688 1.7%2
Valuation gains 33’791 - 50’208 83’253 17’739 91’524Prop. sales revenues (condominiums) 3’259 14’224 19’614 1’501 1’683Property sales (investment properties) 1’374 1’354 627 308 2’346Income from associated companies 10 10 4 2 13Capitalised own services 2’977 3’973 2’646 1’299 3’272Other income 1’6013 2’3084 2’3935 1’9586 1’7467
Total operating income 318’075 247’976 380’991 159’171 239’271 50.3%
1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Like-for-like rental change 0.2%.3 Of which CHF 1.5m VAT-opting-in effect.4 Of which CHF 2.3m VAT-opting-in effect.5 Of which CHF 2.3m VAT-opting-in effect.6 Of which CHF 1.9m VAT-opting-in effect.7 Of which CHF 0.8m VAT-opting-in effect.
© PSP Swiss Property I Page 8
Consolidated Expenses
(CHF 1’000) 2015 2016 20171 H1 20171 H1 2018 ∆
Properties’ operating expenses - 11’2712 - 12’258 - 11’796 - 5’772 - 6’188 7.2%Properties’ maintenance/renovation - 14’626 - 14’817 - 16’920 - 8’057 - 8’155 1.2%Personnel expenses - 17’7263 - 20’468 - 19’242 - 9’524 - 10’4904 10.1%Fees to subcontractors - 47 - 49 - 48 - 24 - 21General and administrative expenses - 7’517 - 7’737 - 7’059 - 3’384 - 3’638 7.5%Impairment properties - 874 - 913 0 0 0Depreciation - 716 - 726 - 828 - 382 - 506Total operating expenses - 52’776 - 56’970 - 55’892 - 27’143 - 28’998 6.8%
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1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Positive P&L impact of CHF 1.1m property tax refunds in Geneva (non-repeat).3 Positive P&L impact (IAS 19 revised, defined benefit pension plans) of CHF 1.2m (non-repeat).4 Increase mainly due to new pension scheme applied in H1 2018.
Consolidated Results
(CHF 1’000) 2015 2016 20171 H1 20171 H1 2018 ∆
Profit before financial expenses 265’298 191’006 325’099 132’028 210’273 59.3%Net financial expenses - 29’035 - 26’430 - 24’370 - 13’052 - 11’531 -11.7%
Profit before taxes 236’263 164’577 300’730 118’976 198’742 67.0%Taxes - 48’537 - 29’710 - 43’8402 - 24’7593 - 40’4684
Net income 187’726 134’867 256’890 94’217 158’274 68.0%Net income excl. ∆-RE1 161’287 172’548 177’738 80’135 85’601 6.8%
© PSP Swiss Property I Page 10
1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Of which CHF 17.5m current and CHF 26.4m deferred. The relatively low deferred taxes relate to the release in Q3 2017 of deferred capital gain taxes
in the Canton of VD in the magnitude of CHF 17m. The underlying tax rate has been reduced from 21.7% to 13.6%.3 Of which CHF 10.2m current and CHF 14.6m deferred.4 Of which CHF 9.7m current and CHF 30.8m deferred.5 Excl. ∆-RE: excluding net changes in fair value of the real estate investments, realised income on sales of investment properties and all of the related
taxes. Income from the sale of properties, which were developed by the Company itself, is included.
Per Share Distribution (in CHF)
1.001.25
1.501.65
1.982.10
2.202.40
2.502.70
2.803.00
3.20 3.25 3.25 3.30 3.35 3.40
0
1
2
3
4
For business year 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
*
Y-t-y growth n.a. 25.0% 20.0% 10.0% 20.0% 6.0% 4.8% 9.1% 4.2% 8.0% 3.7% 7.1% 6.7% 1.6% 0.0% 1.5% 1.5% 1.5%
Payout ratio** 45.5% 52.1% 57.0% 53.6% 71.2% 76.9% 78.0% 86.3% 85.0% 82.7% 84.8% 86.5% 88.9% 85.8% 88.1% 93.8% 89.1% 87.9%
Payout yield*** 2.6% 3.9% 4.0% 3.8% 4.0% 3.7% 3.1% 4.2% 4.7% 4.6% 3.7% 3.8% 3.7% 4.3% 3.8% 3.8% 3.8% 3.7%
* Ordinary dividend, paid on 11 April 2018.** Payout / EPS excl. ∆-RE (FY 2017: CHF 3.87).*** Payout / share-price year-end (Dec. 2017: CHF 92.35).
© PSP Swiss Property I Page 11
Performance since PSP IPO, 7.3.2000 (total return: dividends reinvested)PSP SXI RE rebased FTSE/EPRA Europe TR Index SPI SMI369.4% 163.8% 233.1% 117.9% 180.4%
Source: Bloomberg, 16.8.2018
© PSP Swiss Property I Page 12
Total Return (7.3.2000 – 15.8.2018)
Agenda
© PSP Swiss Property I Page 13
Key Facts and Figures 3
Financial Results H1 2018 7
Portfolio and Vacancy Rate 14
Capital Structure 20
Development Sites and Projects 23
Subsequent Events 35
Outlook 37
Annex 39
6.894 6.908 6.947 6.954 7.046 7.272 7.343
9.1%8.7% 8.3% 8.2% 8.5%
6.8%
0%
2%
4%
6%
8%
10%
12%
0
1
2
3
4
5
6
7
8
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
9.3%
9.7%
7.5%
Portfolio and Vacancy Rate
Real estate portfolio value in CHF bn.
Vacancy rate in % (CHF).
Vacancy rate excl. investment properties reclassified to developments in Q4 2016: Lausanne, Rue Saint-Martin 7, 0.4%-points.
Vacancy rate excl. development reclassified to investment properties in Q1 2018: Basel, Grosspeter Tower, 1.0%-points.
© PSP Swiss Property I Page 14
PropertiesVacancy
(sqm)*Vacancy
rateActions taken / status
Grosspeter Tower, Basel 5’384 35.6% New leases signed; reduction below 10% expected
Route des Arsenaux 41, Fribourg 5’485 48.2% Sale and letting in progress
Peter Merian-Str. 88/90, Basel 3’943 29.6% New lease signed; fully let
Richtistrasse 5, Wallisellen 4’213 54.3% Mandate with SPG; www.richtipark.ch
Salmencenter, Rheinfelden 4’579 18.9% Further reduction expected
Rue du Grand-Chêne 2, Lausanne 1’700 67.2% Advanced negotiations; mandate with CBRE
Gurtenbrauerei 10-92, Wabern b. Bern 7’680 54.0% 2’200 sqm lease starting Q4 2018
Rue des Bains 31bis, 33, 35, Geneva 2’350 19.0% Partly under renovation; letting in progress
Gerbergasse 5, Zurich 1’487 45.7% Partly under renovation; mandate with SPG
Bahnhofplatz 2, Biel/Bienne 3’780 20.5% New lease signed; further reduction expected
Total investment portfolio 76’584 6.8%
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Largest Vacancies (June 2018)
* Ranked by rental value (CHF) of the vacancy.
Improvement since Q1 2018 Deterioration since Q1 2018
(Legal termination option by tenants)Expiry Profile of Leases (June 2018)
73% of the Q3-Q4 2018 maturities (CHF 13.5m) are renewed.
27% of the Q3-Q4 2018 maturities are still open.
87% of all 2018 maturities (CHF 29.1m) are renewed as per end of June 2018.
NL: Contracts not limited in time, but subject to notice.
5%
11%11%
15%16%
12%
1%
10%
4%
1%
10%
6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028+ NL
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Changes in Fair Value (June 2018)
(CHF m) 2012 2013 2014 2015 2016 2017 H1 2018Existing portfolio 263.5 120.52 4.6 33.9 -43.5 83.3 95.4 Acquisitions / first-time valuation 3.41 7.63 1.24 - 0.15 - 6.76 0 -3.97
Total net changes in fair value 266.9 128.1 5.8 33.8 - 50.2 83.3 91.5
1 From the acquisition of a single property (Locarno, Via Respini 7/9, spa development project).
2 Of which CHF 43.1m from first time adoption IFRS 13.
3 From the acquisition of a single property (Geneva/Cologny, Port Noir, spa development project).
4 From the acquisition of a single property (Basle, Peter Merian-Str. 88/90).
5 From the acquisition of a single property (Urdorf, Heinrich-Stutz-Str. 23/25).
6 From the acquisition of a single property (Zurich, Hardturmstr. 101, 103, 105 / Förrlibuckstr. 30).
7 From the acquisition of nine properties (Edmond de Rothschild (Suisse) S.A. portfolio) in Q1 2018.
© PSP Swiss Property I Page 17
2013
2014
2015
2016
2017
H1
2018
Weighted Ø discount rate 4.91%* 4.81%* 4.57%* 3.82** 3.62%** 3.55%**1
Nominal Discount Rate
Area Minimum Maximum Weighted ØZurich 2.6% 5.2% 3.5%Geneva 2.7% 4.8% 3.5%Basel 3.1% 3.9% 3.7%Bern 3.0% 4.6% 3.5%Lausanne 2.9% 4.5% 3.6%Other locations 3.2% 5.5% 4.3%All areas 2.6% 5.5% 3.6%**
* Nominal discount rate includes 1.0% annual inflation.** Nominal discount rate includes 0.5% annual inflation.
Valuation done by Wüest Partner.**1 Excl. the acquired Edmond de Rothschild portfolio and the completed “Grosspeter Tower” in Basel: 3.57%.
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Changes in Fair Value: Discount Rates (June 2018)
Agenda
© PSP Swiss Property I Page 19
Key Facts and Figures 3
Financial Results H1 2018 7
Portfolio and Vacancy Rate 14
Capital Structure 20
Development Sites and Projects 23
Subsequent Events 35
Outlook 37
Annex 39
Debt
Diversified and stable lender portfolio 10 domestic banks and 1 syndicated loan (with 14 Swiss Cantonal banks)
High visibility on debt maturity profile Average loan maturity of 3.0 years
Negotiation of loans expiring in 2019 started and partially done
CHF 850m unused committed credit lines as per today
Rating Moody’s: Issuer Rating A3 (outlook stable)
Fitch: Senior Unsecured Rating A- (outlook stable)
© PSP Swiss Property I Page 20
Capital Structure
Money values in CHF m 2014 2015 2016 20171 H1 2018 ∆
Shareholders‘ equity 3’840.8 3’870.5 3’866.8 3’988.6 3’998.5 0.2%- % of total assets 57.5% 57.0% 54.9% 54.0% 53.2%
Deferred tax liabilities (net) 726.0 754.5 763.7 792.0 823.8- % of total assets 10.9% 11.1% 10.8% 10.7% 11.0%
Interest-bearing debt 1’928.7 1’969.0 2’248.4 2’491.1 2’590.7 4.0%- % of total assets 28.9% 29.0% 31.9% 33.7% 34.5%2
- Loans, unsecured 1’360.0 1’300.0 1’280.0 1’300.0 1’200.0- Bonds 568.7 669.0 968.4 1’191.1 1’390.7- % long-term 100.0% 87.3% 100.0% 100.0% 95.4%
Net financial expenses 30.7 29.0 26.4 24.4 11.5- Ø interest rate 1.76% 1.70% 1.42% 1.16% 1.02%3
Interest coverage ratio 7.8 x 8.0 x 9.1 x 10.0 x 10.2 xFixed interest rate > 1 year 83.9% 79.7% 96.4% 96.0% 91.5%Ø fixed-interest period in years 3.9 3.4 4.3 3.6 3.4
1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Adjusted LTV of 33.4% (31 Dec. 2017: 31.2%): excl. debt of CHF 125m (31 Dec. 2017: CHF 275m) related to temporary fixed-term deposits.3 Reflects the average interest rate over the past four quarters. As per 30 June 2018, the passing average rate was 0.92% (31 Dec. 2017: 0.99%).
© PSP Swiss Property I Page 21
Agenda
© PSP Swiss Property I Page 22
Key Facts and Figures 3
Financial Results H1 2018 7
Portfolio and Vacancy Rate 14
Capital Structure 20
Development Sites and Projects 23
Subsequent Events 35
Outlook 37
Annex 39
Project Pipeline
© PSP Swiss Property I Page 23
CHF 319m to invest going forward
Lausanne „Rue Saint Martin“
Zurich „Hardturmstrasse/Förrlibuckstrasse“
Zurich „Bahnhofquai/-platz“
Paradiso „Parco Lago“
Geneva „Rue du Marché“
Zurich „Orion“
2015 2016 2017 2018 2019 2020 2021 2022
CHF 13m
CHF 65m
CHF 30m
CHF 80m
CHF 55m
CHF 130m
4 sites
7 projects
1
6/2/3
45
CHF 33m
1
2
3
5
6
4
Project«Hardturmstrasse / Förrlibuckstrasse» Zurich
Under renovation Completion end of 2018 / beginning of 2019
Total renovation of existing building
Investment sum approx. CHF 65m (thereof CHF 53.3m spent at H1 2018)
80% let
In discussions for letting the remaining space
www.hardturmstrasse161.ch/en
© PSP Swiss Property I Page 24
Visualisations
Project«Hardturmstrasse / Förrlibuckstrasse» Zurich (cont.)
Letting split
© PSP Swiss Property I Page 25
Westhive: next generation Co-working
Telecommunication, 24%
Medtech, 10%
IT, 7%
Government, 7%Energy, 6%
Financial services, 5%
Co-working, 5%
Other, 16%
Vacant, 20%
Project «Bahnhofquai/-platz» Zurich (1/2)
Under renovationTotal renovation (3 stages, investment sum approx. CHF 100m)
Stage 1: Bahnhofplatz 1, Bahnhofquai 9/11/15
Completion end of 2019
Investment sum approx. CHF 55m(thereof CHF 12.5m spent at H1 2018)
Long-term lease signed in April 2018 withanchor tenant No18 (premium co-working brandof IWG, International Workplace Group)
95% pre-let
© PSP Swiss Property I Page 26
Project «Bahnhofquai/-platz» Zurich (2/2)
Under renovationStage 2: Waisenhausstr. 2/4, Bahnhofquai 7 Completion end of 2021 Investment sum approx. CHF 33m
(thereof CHF 7.2m spent at H1 2018) Long-term lease signed in February 2018
with anchor tenant Ruby Hotel & Resorts (concept called “Lean Luxury, 210 rooms, opening scheduled for early 2021)
90% pre-let Remaining space will be let to a restaurant,
high demand, contest in process
Stage 3:
Bahnhofplatz 2
Under review
Construction period tbd
Investment sum approx. CHF 12m
© PSP Swiss Property I Page 27
Visualisation
«Residenza Parco Lago» Paradiso
Under construction Completion beginning of 2020, all units to be sold
Conversion of existing site (former brewery)
New building with mixed use (approx. 13’000 m2): mainly residential units & some office and retail area
Investment sum approx. CHF 80m (thereof CHF 11.8m spent at H1 2018)
We expect 25% of the units to be sold by end of 2018
www.parcolagoparadiso.ch
© PSP Swiss Property I Page 28
Visualisation
Project «Rue du Marché» Geneva
© PSP Swiss Property I Page 29
Under construction Total renovation, completion 2020 Investment sum approx. CHF 30m
(thereof CHF 5.5m spent at H1 2018) Anchor tenant: citizenM (international boutique
hotel group) 70% pre-let Strong demand for remaining high street retail space CBRE appointed as letting agent
Visualisations
In planning Förrlibuckstr. 178/180, Hardturmstr. 181/183/185 to be replaced by a modern office building
Investment sum approx. CHF 130m (construction 2018 - 2021), thereof CHF 13.8m spent at H1 2018
CBRE appointed as letting agent
In final discussions with an anchor tenant for 45% of the surface
Project «Orion» Zurich
© PSP Swiss Property I Page 30
Project «Hardturmstrasse / Förrlibuckstrasse»
Project «Orion»
Project «Orion» Zurich (cont.)
© PSP Swiss Property I Page 31
Current situation
Project outline
© PSP Swiss Property I Page 32
Project «Orion» Zurich, Visualisation (cont.)
Visualisations
CAPEX Potential rental
income3Pre-let
in %
(CHF m)
expected2018-2023
2018 2019 2020-2023
Project “Rue du Marché”, Geneva1 31.1 5.3 15.0 10.7 ~ 5.5 70%
Project “Rue Saint-Martin”, Lausanne1 3.7 2.5 1.2 0 ~ 1.5 45%
“Residenza Parco Lago”, Paradiso1 67.9 14.4 38.4 15.0 - -
Project “Hardturm-/F’buckstr.”, Zurich1 21.2 3.2 7.0 11.0 ~ 7.6 80%
Project “Bahnhofquai/-platz”, Zurich1, 2 81.8 5.1 30.1 46.5 ~ 11.9 90%4
Project “Orion”, Zurich1 113.4 12.9 38.0 62.5 ~ 8.5 0%
Total development sites 319.0 43.4 129.8 145.8 ~ 35.05
thereof committed 38.6 n.a. n.a.
Total investment portfolio 17.0 n.a. n.a.
© PSP Swiss Property I Page 33
Capex and Potential Rental Income Overview
1 Under construction/renovation.2 In planning.3 Potential rental income after completion assuming full letting.
5 Of which CHF 6.8m passing rental income already earned as of 30 June 2018.4 Relating to properties Zurich, Bahnhofplatz 1, Bahnhofquai 9/11/15 and Waisenhausstrasse 2/4, Bahnhofquai 7.
Agenda
© PSP Swiss Property I Page 34
Key Facts and Figures 3
Financial Results H1 2018 7
Portfolio and Vacancy Rate 14
Capital Structure 20
Development Sites and Projects 23
Subsequent Events 35
Outlook 37
Annex 39
Subsequent Events
© PSP Swiss Property I Page 35
Bern, Zeughausstrasse 26 Purchase of land relating to existing land lease
Price: CHF 7.9m
Date: 31 July 2018
Agenda
© PSP Swiss Property I Page 36
Key Facts and Figures 3
Financial Results H1 2018 7
Portfolio and Vacancy Rate 14
Capital Structure 20
Development Sites and Projects 23
Subsequent Events 35
Outlook 37
Annex 39
Outlook 2018
Consolidated EBITDA (excl. changes in fair value), new guidance CHF 240m
Vacancy rate portfolio (year-end), new guidance < 6.0%
© PSP Swiss Property I Page 37
Agenda
© PSP Swiss Property I Page 38
Key Facts and Figures 3
Financial Results H1 2018 7
Portfolio and Vacancy Rate 14
Capital Structure 20
Development Sites and Projects 23
Subsequent Events 35
Outlook 37
Annex 39
Board of Directors and Executive Board
Board of Directors Luciano Gabriel, 1953, Chairman
Corinne Denzler, 1966, Member Adrian Dudle, 1965, Member Peter Forstmoser, 1943, Member
Nathan Hetz, 1952, Member
Josef Stadler, 1963, Member
Aviram Wertheim, 1958, Member
Executive Board Giacomo Balzarini, 1968, CEO/CFO
Martin Heggli, 1977, COO
Adrian Murer, 1974, CIO
© PSP Swiss Property I Page 39
Number of employees: 93 (FTE 88)* Number of caretakers: 25
Property ManagementReal Estate Investments
Construction (19)
Asset Management (4)
Projects / Digitalisation (1)
Finance / Operations
Zurich Office (18, 14*)
Geneva Office (7, 5*)
Olten Office (10, 6*)
Accounting / Treasury (9)
Analysis / Reporting (1)
Executive Board (3)
Trading (2)
© PSP Swiss Property I Page 40
Property Marketing (4)
IT (5)
Tax / Controlling (1)
Banking, Capital MarketCorporate Communications & IR (2)Legal (4)HR (1)Secretariat (1)
Group Overview (30 June 2018)
Services (1)
Strategy
Switzerland only
Commercial properties only
Acquisitions to be justified by price and operational logic Risk-conscious financing policy
Priority
Optimising profitability of existing portfolio Ensuring long-term attractiveness of assets Organic growth Sites development Repositioning of assets to best use
Assessing acquisition opportunities and corporate deals
PSP Strategy
© PSP Swiss Property I Page 41
Why Investing in PSP?
Company
Premium portfolio with limited downside risk Transparent business model
Pure Swiss play
Properties with further optimisation potential
Financial flexibility to take advantage of market opportunities
Acquisition/integration experience
Sustainability (economic, ecological, social)
Share
Liquid stock
Attractive payout yield Broadly diversified shareholder structure
© PSP Swiss Property I Page 42
Shareholder Base (30 June 2018)
Largest shareholder Alony Hetz: 12.21% Chase Nominees Ltd.: 7.51% BlackRock, Inc.: 5.86%1
UBS Fund Management (Switzerland) AG: 3.06%2
T. Rowe Price Associates, Inc.: 3.04%3
Credit Suisse Funds AG: 3.01%4
Number of registered shareholders: 4’692- Individuals: 4’051 (9% of registered shares)- Legal entities: 641(91% of registered shares)
1 As per notification 2 September 2017.
2 As per notification 13 July 2017.
3 As per notification 8 October 2015.
4 As per notification 14 February 2018.
CH, 43%
Israel, 12%
UK, 11%
France / BeNeLux, 5%
Other, 2%
Non-registered, 28%
© PSP Swiss Property I Page 43
Ebitda excl. ∆-RE in CHF m.
Ebitda margin in %.
Ebitda
232.7 241.6 242.2
114.5 117.7
82.0% 81.3% 81.5% 81.1% 80.5%
50%
55%
60%
65%
70%
75%
80%
85%
0
50
100
150
200
250
300
2015 2016 2017 H1 2017 H1 2018
© PSP Swiss Property I Page 44
FY17 & H1 17: restated due to IFRS 15, Revenue from Contracts with Customers.
Net income excl. ∆-RE in CHF m.
Contribution of ∆-RE in CHF m.
Net Income Components
161.3 172.5 177.7
80.1 85.6
26.4
-37.7
79.2
14.1
72.7
-100
-50
0
50
100
150
200
250
300
2015 2016 2017 H1 2017 H1 2018
© PSP Swiss Property I Page 45
FY17 & H1 17: restated due to IFRS 15, Revenue from Contracts with Customers.
EPS in CHF.
EPS excl. ∆-RE in CHF.
EPS
4.09
2.94
5.60
2.05
3.453.523.76 3.87
1.75 1.87
0
1
2
3
4
5
6
2015 2016 2017 H1 2017 H1 2018
© PSP Swiss Property I Page 46
FY17 & H1 17: restated due to IFRS 15, Revenue from Contracts with Customers.
NAV + Cumulative Dividend per Share
NAV per share in CHF.
Payout in CHF, cumulative (allocation according to payment date).
42.21
47.2450.58 51.02 51.80 53.28
56.2559.71
61.8364.95
68.87
75.28
80.4883.70 83.74 84.38 84.30
86.96 87.17
0.00
1.00
2.253.75 5.40
7.389.48
11.6814.08
16.58
19.28
22.08
25.08
28.2831.53
34.78 38.08
41.4344.83
0
20
40
60
80
100
120
140
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018
© PSP Swiss Property I Page 47
NAV per share in CHF.
Share price in CHF.
NAV vs. Share Price
83.74 84.38 84.30 86.96 87.1785.80 88.00 88.0092.35 92.00
0
10
20
30
40
50
60
70
80
90
100
2014 2015 2016 2017 H1 2018
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EPRA Performance Measures
1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Excl. direct vacancy costs.
20171 H1 20171 H1 2018(CHF or %) EPRA PSP EPRA PSP EPRA PSPA. EPS 3.54 5.60 1.72 1.75 1.82 1.87
B. NAV 105.26 104.22 101.61 100.22 106.21 105.14
C. NNNAV 86.92 86.96 86.54 83.23 87.48 87.17
D. “topped-up” NIY 3.5 3.5 3.5 3.6 3.5 3.5
E. Vacancy rate 8.1 8.2 8.5 8.7 6.7 6.8
F. Cost ratio2 18.1 15.0 17.5 14.3 18.3 15.6
G. Like-for-like rental change -1.1 n.a. -2.1 n.a. 0.2 n.a.
H. Capex in CHF 1’000 102’227 n.a. 49’975 n.a. 255’015 n.a.
© PSP Swiss Property I Page 49
Portfolio Key Figures
Numbers of properties
Rentalincome
in CHF m
Revaluation in CHF m
Value in CHF m
Net yield in %
Vacancy in %
Zurich H1 2018 82 80.7 35.8 4’091.8 3.5 4.8FY 2017 82 162.7 19.5 4’036.1 3.5 6.4
Geneva H1 2018 20 16.1 13.0 871.9 3.2 4.7FY 2017 16 26.4 16.7 760.9 2.7 17.7
Basel H1 2018 15 13.6 6.1 668.4 3.6 11.8FY 2017 14 24.8 12.8 544.9 4.0 2.3
Bern H1 2018 13 6.6 1.7 294.7 3.7 8.4FY 2017 13 12.8 6.4 292.6 3.6 10.0
Lausanne H1 2018 15 8.6 7.5 376.3 3.9 11.3FY 2017 14 17.3 5.5 355.3 4.2 6.4
Others H1 2018 21 10.4 -6.0 426.9 4.1 12.9FY 2017 18 19.5 15.1 394.2 4.1 14.8
Sites H1 2018 11 3.5 33.5 612.5 n.a. n.a.FY 2017 12 10.4 7.3 661.9 n.a. n.a.
Total H1 2018 177 139.5 91.5 7’342.5 3.5 6.8FY 2017 169 273.9 83.3 7’045.8 3.5 8.2
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Rent by Use
Office, 63%
Retail, 16%
Parking, 5%
Gastronomy, 4%
Other, 11%
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Rent by Type of Tenants
Retail, 19%
Services, 18%
Telecommunication, 12%Financial Services, 12%
Technology, 9%
Gastronomy, 8%
Government, 6%
Other, 17%
© PSP Swiss Property I Page 52
Largest Tenants
Swisscom, 10%Google, 4%
E.d.Rothschild, 2%
Swiss Post, 2%
Bär & Karrer, 2%
Next five largest, 9%
Other, 70%
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Ecological Sustainability
Organisation Responsibility: 3 employees (1 asset management, 1 constructions, 1 property management)
Implementation: constructions, property management, facility management
Key environmental key indicators (specific figure/m2) in 2017 (2016) Heating in kWh: 74.51 (70.55)
Electricity in kWh: 21.77 (22.25) COe2 output (heating and electricity) in kg: 12.52 (12.98)
Water consumption in m3: 0.486 (0.495)
Specific emissions reduced by 40% since launch of sustainability programme in 2010
Since 2015, reporting according to EPRA sBPR
EPRA Gold Award, September 2017
© PSP Swiss Property I Page 54
No. Property1 Rue de Sébeillon 2, Lausanne2 Bahnhofstrasse 10/Börsenstr. 18, Zurich3 Baslerstrasse 44, Olten4 Löwenstrasse 16, Zurich5 Barfüsserplatz 10, Basel6 Theaterstrasse 22, Zurich7 Route des Acacias 50, 52, Carouge GE8 Laupenstrasse 18/18a, Bern9 Goethestrasse 24, Zurich10 Bahnhofstrasse 66, Zurich
1 - 10: Examples of improvements due to investments (2008-2018)
Source: Wüest Partner, June 2018.
© PSP Swiss Property I Page 55
Portfolio Grid
Zurich Area
© PSP Swiss Property I Page 56Bahnhofstr. 28a
Bahnhofstr. 81
Brandschenkestr. 90
Bahnhofstr. 66
Seefeldstr. 123
Uraniastr. 9
Bahnhofstr. 10
Bahnhofstr. 39
Bahnhofplatz 9
Zurich
= Investment properties= Sites and development projects
Geneva Area
© PSP Swiss Property I Page 57
Rue Richard-Wagner 6
Rue des Bains 31/33/35
R.d. Acacias 50/52
Rue de la Gabelle 6
Place du Molard 7
Cours de Rive 13/15
Rue de la Fontaine 5
Rue de la Corraterie 24/26
Geneva
= Investment properties= Development project
Basel Area
© PSP Swiss Property I Page 58
Marktplatz 30/30a
Barfüsserplatz 10
Steinentorberg 8/12
Kirschgartenstr. 12/14
Peter Merian-Str. 88/90
Freie Strasse 38
St. Alban-Anlage 46
Grosspeterstr. 18/20
Dornacherstr. 210
Basel
= Investment properties
Bern Area
© PSP Swiss Property I Page 59
Bollwerk 15
Laupenstrasse 18/18a
Eigerstrasse 2
Seilerstrasse 8
Zeughausgasse 26/28
Kramgasse 49
Kramgasse 78
Spitalgasse 9
Bern
= Investment properties
Lausanne Area
© PSP Swiss Property I Page 60
Rue de Sébeillon 2
Avenue de Sévelin 54
Avenue de Sévelin 40
Avenue de Cour 135
Rue Saint Martin 7
Rue du Pont 22
Place Saint-François 5
Place Saint-François 15
Lausanne
= Investment properties= Development project
Giacomo Balzarini CEOPhone +41 (0)44 625 59 59Mobile +41 (0)79 207 32 40giacomo.balzarini@psp.info
Vasco Cecchini Corporate Communications & IRPhone +41 (0)44 625 57 23Mobile +41 (0)79 650 84 32vasco.cecchini@psp.info
Contacts
© PSP Swiss Property I Page 61
Disclaimer
None of the information in this presentation constitutes an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. None of the securities of the Company referred to in this presentation have been or will be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or under the applicable securities laws of any state or other jurisdiction of the United States.
© PSP Swiss Property I Page 62