HALF-YEAR RESULT 2015 Swiss Finance & Property Investment AG Swiss Finance & Property AG 1
AGENDA Current Market Environment Swiss Finance & Property Investment AG Portfolio Financial Statements Outlook Second Half 2015 Swiss Finance & Property AG 2
CURRENT MARKET ENVIRONMENT (1/2) Economic Situation The economy in Europe has passed its low point Growth varies sharply according to region Low-interest rate policy is being continued by the ECB for the foreseeable future Declining strength of the franc Increases in prices and interest should take place slowly without significantly negative effects on the property market Swiss Finance & Property AG 3
CURRENT MARKET ENVIRONMENT (2/2) Sectors Residential Continuing high demand Office Structural optimisations of tenants to date and a number of new properties result in a significant over-supply in urban areas. Retail - A mix of record-high rentals in high street locations with simultaneous major competition from the Internet and neighbouring countries requires discerning considerations in the individual case. Swiss Finance & Property AG 4
AGENDA Current Market Environment Swiss Finance & Property Investment AG Portfolio Financial Statements Outlook Second Half 2015 Swiss Finance & Property AG 5
SWISS FINANCE & PROPERTY INVESTMENT AG Focus on Swiss property with strong cash flow and enhancement potential in the long term Geographic concentration of the portfolio on the urban areas of Zurich and Basel and taking advantage of opportunities in other locations Long-term growth due to exploiting unrealized value potential through active management Swiss Finance & Property AG 6
MOST IMPORTANT EVENTS IN THE 1st HALF OF 2015 Acquisitions Acquisition of four properties in Basel Portfolio adjustments Sale of a property in Yverdon and three in Bern Developments Project in Limmatstrasse 65 in Zurich completed Ongoing project in Witikonerstrasse 15 in Zurich Project started in Steinenvorstadt 67 in Basel Vacancies as of the reporting date Total vacancy rate dropped to 7.91% (2014: 9.35%) Third-party finance management Interest-rate duration to 7.82 years (PY: 9.57%) reduced to an average interest rate of 1.31% (PY: 1.43%) Swiss Finance & Property AG 7
AGENDA Current Market Environment Swiss Finance & Property Investment AG Portfolio Financial Statements Outlook Second Half 2015 Swiss Finance & Property AG 8
TRANSACTIONS IN THE 1st HALF OF 2015 ACQUISITIONS Riehenstr. 157 / Rosentalstr. 50-52, Basel CHF 13.7 million Binningerstr. 11, Basel CHF 2.9 million Gerbergasse 48, Basel CHF 8.8 million Binningerstr. 15, Basel CHF 7.75 million CHF 33.15 million April May June July August SALES Seftigenstr. 47, Bern CHF 3.1 million Rathausgasse 72, Bern CHF 8.25 million Rue du Lac 49, Yverdon CHF 9.15 million Gotenstrasse 21, Bern CHF 4.3 million CHF 24.80 million There was no loss in income due to the timing of investments and divestitures. Swiss Finance & Property AG 9
ACQUISITIONS (1/4) Riehenstrasse 157 / Rosentalstrasse 50-52, Basel Start as at 01.05.2015 44 apartments, 4 office and 2 commercial properties Purchase price CHF 13.70 million Market value CHF 14.82 million Net yield on market value 4.44% Swiss Finance & Property AG 10
ACQUISITIONS (2/4) Gerbergasse 48, Basel Start as at 01.06.2015 Office and sales space Purchase price CHF 8.80 million Market value CHF 9.41 million Net yield on market value 3.75% Swiss Finance & Property AG 11
ACQUISITIONS (3/4) Binningerstrasse 11, Basel Start as at 01.06.2015 6 apartments, 1 office, 2 shops and 1 studio Purchase price CHF 2.90 million Market value CHF 4.00 million Net yield on market value 2.51% Swiss Finance & Property AG 12
ACQUISITIONS (4/4) Binningerstrasse 15, Basel Start as at 30.06.2015 9 apartments, office and gastronomy properties Purchase price CHF 7.75 million Market value CHF 7.75 million Net yield on market value 3.82% Swiss Finance & Property AG 13
SALES Property Trans fer of owners hip Market v alue in C HF S elling pric e in C HF Trans ac tion profit in C HF 1 in % C urrent rent G ros s return Bern, S eftigenstrasse 47 01.06.2015 2'945'000 3'100'000 155'000 5% 168'815 5.4% Bern, Rathausgasse 72 01.06.2015 7'875'000 8'250'000 375'000 5% 411'701 5.0% Bern, G otenstrasse 21 30.06.2015 3'581'000 4'300'000 719'000 20% 256'232 6.0% Yverdon, Rue du Lac 30.06.2015 8'657'000 9'150'000 493'000 6% 515'838 5.6% TOTAL 23'058'000 24'800'000 1'742'000 8% 1'352'586 5.5% 1 Earnings before taxes Swiss Finance & Property AG 14
COMPLETED PROJECT Limmatstrasse 65 Project status Completion1. HY 2015 Rental 97.4% of areas rented out Market value before renovation CHF 13,450,000 Building costs CHF 2,500,000 Market value after renovation 1 CHF 16,760,000 Value creation CHF 810,000 1 According to Wüest & Partner AG Swiss Finance & Property AG 15
ONGOING PROJECTS (1/3) Parco d Oro, Ascona Creation of 13 condominiums and 34 parking spaces Marketing started in April 2014 9 apartments have been sold Swiss Finance & Property AG 16
ONGOING PROJECTS (2/3) Witikonerstrasse 15, Zurich Project status Completion in autumn 2015 Market value before renovation CHF 29,690,000 Building costs CHF 9,850,000 Market value after renovation 1 CHF 41,660,000 Value creation CHF 2,120,000 1 According to Wüest & Partner AG Swiss Finance & Property AG 17
ONGOING PROJECTS (3/3) Steinenvorstadt 67, Basel Project status Planning application submitted Market value before renovation CHF 14,000,000 Building costs, estimated CHF 3,500,000 Market value after renovation 1 CHF 18,090,000 Value creation CHF 590,000 1 According to Wüest & Partner AG Swiss Finance & Property AG 18
ONGOING PROJECTS Projects under construction Ascona, Parco D Oro New construction Zürich, Witikonerstrasse 15 Renovation / Addition of a storey / Conversion Basel, Steinenvorstadt 67 Renovation/ Repositioning Development horizon/amount invested 2nd HY 2016 2015 CHF 10.0m CHF 4.5m CHF 0.4m CHF 3.1m Planned CAPEX Various investments CHF 7.5m Total CHF 14.9m CHF 10.6m Swiss Finance & Property AG 19
VACANCY RATES 2011 TO 2015 The vacancy rate as of the reporting date dropped from 9.35% to 7.91% compared to the previous year Swiss Finance & Property AG 20
VACANCY RATE OF EXISTING PROPERTIES AS AT 30.06.2015 The vacancy rate of existing properties as of the reporting date dropped to 7.91% due to the renting out of completed projects (preceding period: 9.35%) The 3 highest vacancy rates are a result of properties in which renovations of the rented areas are currently taking place or were taking place. Swiss Finance & Property AG 21
WEIGHTED MATURITY OF RENT AGREEMENTS FOR COMMERCIAL PROPERTIES The share of long-term rental agreements of commercial properties has significantly increased due to successful re-rentals and extensions to agreements. Swiss Finance & Property AG 22
PORTFOLIO STRUCTURE AS AT 30.06.2015 Swiss Finance & Property AG 23
PROPERTY AND LOCATION QUALITY Source: Wüest & Partner Swiss Finance & Property AG 24
KEY PORTFOLIO FIGURES 30.06.2015 31 DEC 2014 Number of properties Units 41 41 Total of property portfolio CHF 1,000 439,217 410,361 Gross return % 4.96 4.98 Weighted real discount rate of portfolio valuation % 3.75 3.89 Weighted nominal discount rate of portfolio valuation % 4.78 4.93 Vacancy rate at end of period % 7.91 9.35 Other portfolio properties Vacancy rate at end of period % 7.91 9.35 Development-related Vacancy rate at end of period % - Current vacancy for the reporting period % 15.54 10.56 Swiss Finance & Property AG 25
AGENDA Current Market Environment Swiss Finance & Property Investment AG Portfolio Financial Statements Outlook Second Half 2015 Swiss Finance & Property AG 26
FINANCIAL KPIs Increase in operating profit after revaluation of CHF +11,164 thousand Earnings per share (EPS) excl. revaluation increased to CHF 2.67 (+39%) Net asset value (NAV) increased to CHF 82.77 (+1.8%) Restructuring external financing: Closing out of swaps and Assumption of fixed mortgage loans Swiss Finance & Property AG 27
OPERATING INCOME Increase in operating profit after revaluation of CHF +11,164 thousand Higher revaluation effects of properties CHF +8,994 thousand Proceeds from the sale of investment properties CHF +1,196 thousand POC Project proceeds from Parco d Oro CHF +752 thousand Increase in property income of CHF 184 thousand Swiss Finance & Property AG 28
OPERATING COSTS Slight increase in operating costs of CHF - 35 thousand: Higher maintenance expense CHF -107 thousand Lower administration expense CHF +136 thousand Swiss Finance & Property AG 29
FINANCIAL INCOME Financial income affected by the restructuring of the financing: Closing out of existing SWAPS with reverse swaps and conclusion of fixed mortgage loans in the amount of CHF 127.8 million Interest income from reverse swaps CHF +469 thousand Positive valuation effects of swap CHF +1,890 thousand A fixed mortgage loan of CHF 90 million was measured at fair value; one-off financial income of CHF 6,948 thousand Swiss Finance & Property AG 30
FINANCIAL EXPENSE The financial expense is affected by the restructuring Increase in interest expenses CHF -502 thousand compared to the same period in the preceding year One-off swap losses as of 21 January 2015 CHF -6,733 thousand Write-off over remaining term of swap losses as of 21 January 2015 CHF -393 thousand Amortisation of fair value measurement of fixed mortgage loan according to amortised cost CHF -297 thousand Swiss Finance & Property AG 31
OTHER ITEMS Angaben in 01.01. - 30.06.2015 01.01. - 30.06.2014 Veränderung in % Betriebsergebnis (EBIT) CHF 1 000 19'036 7'906 140.78 EBIT-Marge % 86.72 73.30 18.31 Finanzergebnis (netto) CHF 1 000-32 -1'409-97.73 Gewinn vor Steuern (EBT) CHF 1 000 19'003 6'497 192.49 Steuern CHF 1 000-4'150-1'393 197.92 Reingewinn inkl. Neubewertungseffekte CHF 1 000 14'853 5'103 191.06 Reingewinn exkl. Neubewertungseffekte CHF 1 000 6'648 4'796 38.62 EBIT increased by CHF 11,130 thousand Profit excluding revaluation effects increased by CHF 1,852 thousand The EBIT margin increased by 18.31% in comparison to 30 June 2014 Swiss Finance & Property AG 32
PERFORMANCE OF PORTFOLIO +7% Swiss Finance & Property AG 33
FINANCING STRUCTURE Slight increase in debt ratio from 56.37% to 58.54% Lower interest rate duration of 7.82 years (prior year: 9.57 years) Decrease in the average interest rate from 1.43% to 1.31% Swiss Finance & Property AG 34
PERFORMANCE OF EQUITY +3% Swiss Finance & Property AG 35
OTHER KEY BALACE SHEET FIGURES Swiss Finance & Property AG 36
KEY FIGURES PER SHARE Angaben in 01.01. - 30.06.2015 01.01. - 30.06.2014 Veränderung in % Gewinn pro Aktie (EPS) à CHF 34.65/ CHF 37.85 nominal inkl. Neubewertung CHF 5.95 2.05 190.24 Gewinn pro Aktie (EPS) à CHF 34.65/ CHF 37.85 nominal exkl. Neubewertung CHF 2.67 1.92 39.06 Angaben in 30.06.2015 31.12.2014 Veränderung in % Net asset value (NAV) pro Aktie à CHF 34.65/ CHF 37.85 nach latenten Steuern CHF 82.77 80.30 3.08 Net asset value (NAV) pro Aktie à CHF 34.65/ CHF 37.85 vor latenten Steuern CHF 90.37 86.33 4.68 Net asset value (NAV) pro Aktie à CHF 34.65/ CHF 37.85 vor Bewertungseffekten derivativer Finanzinstrumente und Hypotheken CHF 88.96 85.84 3.63 Aktienkurs CHF 83.00 83.00 - Prämie (+) / Discount (-) gegenüber NAV % 0.28 3.36-91.67 Increase in EPS excl. revaluation effects by +39% Increase in NAV since 31 December 2014 CHF +2.47 (+3.08%) Swiss Finance & Property AG 37
AGENDA Current Market Environment Swiss Finance & Property Investment AG Portfolio Financial Statements Outlook Second Half 2015 Swiss Finance & Property AG 38
OUTLOOK 2ND HALF OF 2015 The project at Witikonerstrasse 15 in Zurich is being completed New rent agreements with an annual volume of income of CHF 480,000.00 are expected to be concluded We continue to focus on the marketing of Klausstrasse 4 in Zurich Sale of the remaining apartments in the Parco d Oro project Further transactions that will strengthen the strategic alignment of SFPI AG to the centres of Basel & Zurich are planned Active review of opportunities in the promotions segment Swiss Finance & Property AG 39
THANK YOU FOR YOUR ATTENTION Swiss Finance & Property AG 40
DISCLAIMER The information in this document is confidential and may not be disclosed to any other person without our prior approval. This presentation does not constitute a prospectus in the sense of Art. 652a or Art. 1156 of the Swiss Code of Obligations or Art. 50 of the Swiss Investment Fund Act. This document is a product of Swiss Finance & Property and is not research. We have prepared this document based upon information that we believe to be reliable but we make no representation or warranty, express or implied, that it is accurate, complete or up to date and accept no liability, other than for fraudulent misrepresentation, if it is not. Any proposed terms in this document are indicative only and remain subject to contract. Nothing in this document shall constitute or form part of any legal agreement, or any offer to sell or the solicitation of any offer to buy any securities. Investments in funds should only be undertaken following a thorough study of the latest corresponding sales prospectus, the fund regulations, and the basic legal information that these regulations contain. Past performance does not guarantee or indicate current or future value or earnings. The performance shown does not take account of any commissions and costs charged when subscribing and redeeming units. Swiss Finance & Property does not provide legal, accounting or tax advice. You must obtain your own independent advice on any legal, tax or accounting issues relating to these materials or any decision to undertake any of the actions, investments or transactions discussed or recommended herein. We may from time to time have positions in, and buy or sell, securities and investmens identicial or related to those mentioned in this document and may possess or have access to non-public information relating to matters referred to in this document which we do not intend to disclose. No person shall be treated as a client of Swiss Finance & Property, or be entitled to the protections afforded to clients of Swiss Finance & Property, solely by virtue of having received this document. Neither this document or any copy thereof may be sent to or taken into the United States or distributed in the United States or to any US persons. Copyright 2003 2015 Swiss Finance & Property Investment AG. All rights reserved. Swiss Finance & Property AG 41
OFFICES & CONTACTS Swiss Finance & Property Investment AG Seefeldstrasse 275 CH-8008 Zürich Phone +41 (0)43 344 61 31 Fax +41 (0)43 344 61 30 info@sfpi.ch www.sfpi.ch Swiss Finance & Property AG 42