Swiss Prime Site reported a 5.1% increase in earnings per share to CHF 2.07 for the first half of 2026, while raising its full-year funds from operations guidance to the upper end of CHF 4.25-4.30 per share. The real estate portfolio’s value exceeded CHF 14 billion for the first time, reaching CHF 14.005 billion as of June 30.
Funds from operations per share rose 2.4% year-over-year to CHF 2.15, supported by a 2.2% increase in rental income to CHF 230.6 million and a 5.2% rise in asset management fee income to CHF 40.0 million. Comparable operating income grew 3.4% to CHF 270.3 million, while EBITDA excluding revaluations and sales increased 4.6% to CHF 208.7 million. Net profit advanced 6.0% to CHF 165.7 million.
The company’s asset management platform expanded its assets under management by 3.5% to CHF 14.8 billion, driven by record capital inflows of CHF 952 million, including CHF 521 million in new money and CHF 431 million from new mandates. Recurring income accounted for 71% of total asset management income, with EBITDA up 9% to CHF 26.0 million and margins improving to 65.0% from 62.9%. Organic AuM growth is targeted at CHF 1 billion for 2026.
Swiss Prime Site’s development pipeline saw CHF 100 million in investments during H1, including the Fraumünsterpost refurbishment in central Zurich, where 55% of the 8,590 square meter property is pre-let. The YOND Campus, targeting industrial and life-sciences tenants, is 50% pre-let with a total investment of approximately CHF 150 million. The Maag site in Zurich secured a letter of intent with the University of Zurich for the relocation of the Natural History Museum, involving an investment of around CHF 60 million.
The company refinanced a convertible bond at 0% interest for six years and reduced its average cost of debt to 83 basis points from 94 basis points. Net loan-to-value stood at 39.9% as of June 30, temporarily above the target of below 39% due to dividend timing. Liquidity totaled CHF 725 million in unused credit lines and CHF 265 million in cash.
Swiss Prime Site’s portfolio is now concentrated in 127 properties, with 88% of fair value in the highest-quality quadrant. Office space accounts for 51% of rental income, followed by residential at 19% and logistics at 9%. Vacancy rates improved to 3.7%, while the weighted average unexpired lease term increased to 5.7 years. The company’s ESG rating was upgraded to B- by ISS STOXX, placing it in the top 10% of global property firms.
