Swiss Prime Site expects full-year FFO at top end after H1 growth

Swiss Prime Site anticipates reaching the upper range of its full-year FFO projections after a strong first-half performance. The company reported a 2.4% increase in funds from operations to 2.15 Swiss francs per share. Net profit surged 17.2% to 192.5 million francs, while consolidated operating income on a comparable basis rose 3.4% to 270.3 million francs.

Rental income from properties grew 2.2% to 230.6 million francs, fueled by new leases, lease extensions, and acquisitions. The vacancy rate remained steady at 3.7%. Financial expenses climbed to 113.9 million francs due to a one-time valuation adjustment. The property portfolio's value increased 0.6% to 14 billion francs, surpassing the 14 billion franc threshold for the first time.

Disposals of five properties generated a gain of 6.9 million francs. Asset management income grew 5.2% to 40 million francs, with assets under management reaching 14.8 billion francs. The company's loan-to-value ratio rose to 39.9%, expected to drop below 39% during the year. CEO Marcel Kucher stated that the FFO of CHF 2.15 per share puts the company on track for a full-year result at the upper end of its projected range.