Swiss Prime Site Aktie

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.

[Interpreted] Good morning here at the Prime Tower or online, anywhere -- from anywhere in Switzerland or the rest of the world. Warm welcome to our media press conference for the first 6 months. So what message will you take with you today? Well, it won't just be a message for those who are here today, but also the Aperol. But what am I trying to say? There are 2 things that we will take with you. First of all, that we have been able to increase the FFO I in an environment in the context of closing Jelmoli and also making several acquisitions that we've been able to compensate for. So that's the main message and FFO I is the cash figure that ultimately is responsible for the dividend.

And the second piece of information is that the market trusts this company. We have been able to raise CHF 840 million new fresh capital, [ CHF 540 million ] was asset and the capital increase. And we would like to thank everyone for this, and this is the start of this conference. And this kind of confidence is not a matter of course. So key issue -- topics of the first 6 months of this year, I'm not going to read out everything, but let's start with the strategy. You all know the strategy is clear. Closure of Jelmoli at the end of February, which means that the 2 pillars, direct real estate and commercial real estate. And the second pillar is asset management.

Some secondary locations are also part of the portfolio, but it's primarily residential asset management, and that makes us unique, particularly after the integration of Fundamenta. So we're not just talking about commercial real estate, but also about residential real estate. And so what are the highlights of our portfolio? Despite the sales last year and some of them were essential, we grew to CHF 13.3 billion, revaluations of CHF 102 million, and those are mainly due to new rentals. The like-for-like growth was 2.2%. So that's a very attractive like-for-like growth.

We were able to purchase 2 properties. The first one in Geneva was in the first 6 months. The one in Lausanne was actually communicated last week, not quite in the first half of the year. But nevertheless, these are very important first acquisitions from the capital increase. We also sold some properties to the tune of CHF 70 million, 6 noncore properties as we call them. And those were achieved 4.1% over fair value. And this shows that we have an excellent portfolio, but it also shows that we are evaluating very well. So our evaluation seem to be correct, proven by the fact that we are able to sell above fair value.

The second slide here now concerns the operative -- operational performance. The like-for-like growth was 2.2%, as I mentioned, and the major part due to new rental contracts. And on the whole, we lost a little in rental income, CHF 17 million to be precise, temporarily due to the refurbishments, not just of Jelmoli, but also Fraumünsterpost and Talacker so that rental income will return. And I also saw that some of you said that the rental income is not quite as expected. And well, actually, we have been announcing this for 2 years that this would happen with the closure of the Jelmoli, but everyone was still surprised. Anyway, we were able to largely compensate for this.

And you can see where, which is with the increase in asset management by 41%. The vacancy rate is about 4.0%. And we expect that we will have a vacancy rate of 3.8% by the end of the year. And let me say a few words about this vacancy rate, which is maybe not so obvious. We increased -- or we improved the vacancy rate like-for-like. And this made a contribution to these positive revaluations, better rental contracts and lower costs, but the reason why it is increasing a little is because the new projects such as Alto Pont-Rouge and JED have been added to the portfolio.

I have tried to explain this several times. These new projects are usually not fully rented out at the time that they are added to the portfolio. So maybe they're rented out at 80%. And this automatically leads to a higher vacancy rate compared with a company that does not do project development. This explains why the vacancy rate has increased but will go down again towards the end of the year, but the like-for-like vacancy rate has decreased, and that's the message you need to take with you. We've been able to sign new attractive rental contracts and fill the gap. So all of this led to a stable EBITDA, largely at the level of the previous year. The capital increase of CHF 300 million already was aimed at a pipeline. So 50% was invested in acquisitions in Geneva and Lausanne, and we also have further acquisitions in the pipeline.

And we were able to -- the net yield is 4% in the 2 investments. The LTV was at 38.4%. The end of 2024, it was 38.3%. But -- and actually at the mid of 2024, it was above 39%. And this level is now despite the payout of the dividend in the first half year. This always has an effect on the LTV in the first 6 months of the year. And the most important figure is the increase of the FFO I by 3.4% in the first 6 months of this year. I'm not going to discuss all of the figures here, just the ones that I haven't discussed yet. One is the fees, which means the asset management fees, CHF 38 million. This is an increase of almost 41% compared to last year. And this is also an increase of net asset value by 2% to CHF 102 million round it up.

So this first 6 months has been very successful. This doesn't always look like that on the surface, but there's a lot of work behind it in order to compensate the lack in rental income due to the new projects, and we've been able to add projects to the portfolio. We reduced vacancies, we reduced costs and we did excellent financing activities, and that has led to this excellent result. Now a couple of words on the market transactions. Let me start on the left, transactions. The transaction market is doing well compared to a year ago. We are seeing a lot of transactions just for our portfolio.

Just looking at Swiss Prime side, we have CHF 600 million transactions in asset management in the first 6 months. And we bought properties for the number of CHF 200 million. That's -- and that was transactions worth CHF 870 million. And so there is a transaction market that is very healthy and that is going well. And we're not the only ones. There are a lot of international investors that have done capital increases, and that capital needs to be invested now, of course. And what else are we seeing?

Well, sales and leaseback transactions, we've done 2. The second one was a classical sale and leaseback on the property in Lausanne. The first was semi-classical because we didn't lease in the same location, but in a different building, but the idea behind it was the same. So the transaction market is working well. Now let's talk about rental income. The demand remains high, and we can see that here and then when we do -- when we are able to achieve rental contracts above market rates, then this shows that we have excellent locations and that the demand for those locations remains strong.

And so what are the effects of the funds in the U.S.? Of course, we looked at this with respect to our portfolio. Our tenants are service providers. So we do not rent out to exporting companies, who are affected by the tariffs temporarily. Of course, we're hoping for this to change again. But our tenants are service providers who are not affected immediately. Of course, whether this will have an effect in the years to come, I can't tell, obviously. But at the moment, things are doing -- look good, and we are able to receive the leases on time. Last point, valuations. I already mentioned revaluations based on better rental income, lower like-for-like vacancy rates and a reduction of property costs.

And so the question is of whether we can look at both commercial and residential properties, and there was a gap here. But if you now look at the discount rates for commercial real estate, there's hardly any change, but there was change in residential real estate with a clear reduction of discount rates, both nominal and real discount rates with significant increased valuations and the effects that it has on the asset management.

And now it's over to the figures from Marcel.

[Interpreted] Thank you very much, René, and a cordial welcome to you to -- on this not very sunny day at Prime Tower. I'll take about 10 minutes to lift the mood with our figures, and beginning with income. I'm not going to begin at the top, but at the bottom of this table. From my point of view, this is the relevant figure for you to take home today. I'm talking about the adjusted operating income, adjusted for Jelmoli, makes sense in this first half year. Jelmoli closed its operations at the end of February. So it's not surprising that we have less income there. And this is the relevant figure.

As far as I'm concerned, we have just under 2% more operating income in the first half year. attributable to asset management and our rental income, beginning with rental income, as René said, we had very strong underlying like-for-like growth of 2.2%, and I'll be giving you more detail about this later on. In absolute terms, we're slightly below that, 2.8% -- minus 2.8%, about 2/3 of the loss of rental income was compensated for. I think this is a strong performance, and I'll be giving more details about this later on.

For asset management, it's been mentioned briefly, very strong growth by 41% -- just under 41% due to 3 components. On the one hand, higher average AUMs as we demonstrated, went up to CHF 13.7 billion at the end of the first half year. Secondly, higher capital increases and the ensuing transactions. Capital increases on the basis for new money to be invested in properties. This almost doubled or more or less doubled compared to the previous year. And the third component is fundamental, the acquisition we made last April -- April of last year. Of course, we have the full half year included here compared to the previous year, where it was in -- for only 3 months. So much for income.

Let me move on to the other side, expenses. And again, I propose to begin at the bottom. Again, here, significant components in absolute terms, of course, are due to the closure of Jelmoli's operations at the end of February and the personnel costs and other costs is considerably lower than the previous years. And despite the higher operating income that we achieved, as outlined, operating expenses were reduced. And in my mind, this is really a strong figure because we had Fundamenta with about 60 people that we took over and consolidated for the entire half year, not only for 4 months.

And yet, we managed to reduce operating expenses because we have about CHF 4 million of synergies in asset management or in the group from the sale of -- from the acquisition of Fundamenta and thus reduce the entire cost ratio. Second component I would like to highlight is the top line, real estate costs, which was reduced significantly by around 8%, which is due to 2 reasons. On the one hand, it's due to our strong focus on the team on where to be more efficient in using our resources. And on the other hand, it's the result of portfolio adjustments that we made in recent time.

We tended to take smaller properties and sell them, which produced a higher cost ratio. And you can impressively see this in this figure that we reduced by around 8%. I'll be giving you more details about this. We have a plus/minus stable operating profit of 0.9% lower than the previous year as a combination of the 2 figures I mentioned before, revaluations, I'll be talking about in the next few charts. And then, of course, this year, we're moving on from operating profit to FFO and profit. So focus on the table that you can hopefully read here the 2 important components that have changed. On the one hand, you can see the cost-effective interest expense -- cash effective interest expenses that were reduced. And this reflects that we have reached a certain peak as far as our financing cost is concerned.

We will see that average financing cost has fallen by about 13 bps compared to the previous year, which reflects, I believe, the end of our transformation on the financing side. We are now betting on a financing portfolio that is highly efficient across the various cycles, and that has helped us to fully benefit from the lower interest rates. On the other hand, you can see a decrease in taxes. We did a good job in the first half year in this regard, with some tax administrations. We made new agreements that meant that in the future, our tax load will be slightly lower and in the first half year. This is reflected, as you can see here.

In total, this gives us an increase of around 6.5% of FFO increase in absolute figures, and we have had a higher number of shares on the basis of the shares -- of share -- it's a plus of 3.4% to CHF 2.10 in the first half year. The intrinsic value of our share rose by around 2%. We're talking about the first half year, that's to be borne in mind. So the first half year includes dividend payout, and yet we have a rise of 1.9% over the previous year. Now I'd like to give you more details for real estate and asset management. Let's begin with real estate.

The development of rental income is shown here. We showed this chart in the past. The difference to what we're having here is this is the consolidated level. You can see the split as we're having it at consolidated level. In the past, it was a bit more complicated, as a large part of the income was from Jelmoli, and there was a difference between the segment's view and the consolidated view, given that Jelmoli will now be externally let or does not generate any rental income. This should improve comparability and readability.

Now you can see the composition of CHF 17 million that was capital recycling, but around CHF 8 million sales that primarily occurred in the second half year of 2024 are now having effect on the rents and the larger block is around CHF 9 million of redevelopments composed of CHF 6 million to CHF 6.5 million due to Jelmoli, the third-party lettings that we had and the other CHF 2.5 million to CHF 3 million is due to Fraumünsterpost and Talacker. This is very temporary. Talacker will go online again in September. October is fully let currently and Fraumünsterpost will go online at the end of 2026.

And Jelmoli, as we communicated several times, will be online 2027 with clearly higher rents compared to the ones that we lost. More than -- this was compensated for more than 2/3, as we've mentioned before, due to smart planning, as René mentioned, around CHF 5 million from new objects, new projects, Alto Pont-Rouge and JED, the new construction at JED, Schlieren, then Basel, Stücki Park, that have contributed to this. CHF 1.2 million is the acquisitions, particularly Geneva that are having an effect already partially. And the important part here is how much can be generated from our portfolio, around CHF 4 million from the existing properties. Now this adds up to the 2.2% EPRA like-for-like growth, which we mentioned before.

The bottom part, 1.4% on real rents is important to us. Why is it important? There are really 2 things to read out from this. First of all, the portfolio is in the right place. If you're in the right place, it's difficult to generate like-for-like growth. And you're close enough to tenants, close enough to the market. I think with 1.4%, we can demonstrate we're very close to tenants. It's, by the way, the same figure as we had last year. The absolute figure of 2.2% is slightly lower because inflation is lower. So the indexing component went down and the real component is a little higher than 2023 and the same as 2024 and shows the consistency that we're having in the portfolio.

René mentioned it a minute ago on a like-for-like basis, our vacancy rate decreased. It was mentioned, a decrease of 2.9% if we work out new developments, and we can see that in the EPRA like-for-like growth, positive figure from the reduction of vacancy rate. Next, on asset management, we are giving you a little more transparency where the fees are coming from very strong growth in underlying fees, management fees on the one hand and construction development and other fees. All of those fees are recurring.

They're not transaction dependent, average growth of 27%, 28% in these 2 areas. That's the big volume of fees. For the nonrecurring fees, I mentioned it before, we doubled -- more or less doubled issues and you can see it went up to around CHF 11 million for the nonrecurring fees. This clearly adds up to more than 2/3 of recurring fees or recurring income. And if you look at them, only the management fees in itself show a clear gap to costs, around CHF 14 million of costs. So this shows the stability of our business models, as it's operated by Prime Solutions. EBITDA rose by 64%, and we benefited from the synergies.

Clearly, the ones that I mentioned before, the EBITDA margin increased to around 63%, increased by around 8%. A few words on the balance sheet. The key part of our balance sheet is our portfolio. You can see the portfolio composition here and how we come up from CHF 13.5 billion to CHF 13.3 billion. You can see the purchases and the investments in our major developments, in particular, BERN 131 and some leftovers from JED sticky part, but the large part is, of course, the new projects, in particular, Jelmoli and YOND. And then we have the CHF 105 million valuation result.

You can see at the bottom, just about 2/3 of the valuation result is not due to discount rate changes, but is self-generated like-for-like growth or like-for-like reduction of vacancy and good renewals that we had. Around 33%, 34% is due to valuations. We can see the assumptions that Wüest & Partner made. Expectations have lowered slightly as far as inflation is concerned from 1.25% to 1%. So there is a relatively considerable reduction of the nominal discount rate and the larger lever is the real discount rate, which remained the same more or less or went down by 1 bp, if you look at it a little more closely.

Two more charts on financing. I mentioned it a minute ago, very briefly, we are broadly financed, and we are actually where we got started or wanted to be 4 years ago. And we have convertible and -- unsecured bonds, convertible bonds, secured mortgages and unsecured loans in the Swiss market. You can see the average maturities, more or less stable. We want to be around 4.5 years. We kept that stable. The average interest rate, which shows the turning around in the interest rate development for the first time that I've been presenting. We are below 1%, 0.98%, which is a clear reduction over what we saw last year at 1.1%.

Just to answer the question that will be asked, if we did any new financing, we would be slightly below what we are having in terms of average interest rate, but certainly no higher interest rates than this. And perhaps another figure I haven't mentioned LTV in the half year period is slightly higher usually because you only have a half year of profit, but they have paid out the dividend. But we're currently very comfortable with what we're having there with LTV at 38.4% to use it and to maintain stability at the same time.

And in conclusion, perhaps a word about maturities. The average is 4.2 years. We have a larger maturity this year in unsecured loans, private placements actually that we prolonged CHF 120 million at 0.17%. As you can see, there are highly appealing opportunities. The CHF 250 million is a bond that will mature in September. For the next 24 months, we want to make sure that we don't have to go to the capital market or other sources just for reasons of stability and safe planning with our liquidity reserves of just under CHF 1 billion. I think this is -- we're very comfortable there so much as far as finances are concerned. Let me hand it back to René.

[Interpreted] So now let's look at the individual segments. Starting with the portfolio. I don't need to explain the different locations across Switzerland. You've seen it before. What's important now is that we still have 137 properties, and that shows how capital upcycling should be done by selling and then investing the cash into developments with a better -- at a better location. We have expanded our exposure in the French speaking part of Switzerland. And as I already mentioned, this is Lausanne [indiscernible] will one day become one. And that's an interesting region. And it's also a region which is where we are seeing transport investments in transport infrastructure. So that's interesting.

The more you position yourself, the more you can then benefit from future developments in terms of property fair values. So this is the portfolio distribution. We already mentioned that after the Jelmoli transformation, we now have almost 50% in offices, sales 20%. Let me remind you, in 2009, we purchased the Jelmoli property portfolio. And there we had a retail share of 35%. So we've done a lot of work to reduce that rate.

I think if you have retail in a prime location, it should be between 18% and 20%. That's what we think is a good measure. And also around 50% offices is also a good rate in our opinion. And then on the right, you can see our various tenants. I'll mention Globus in a moment. And now here, the portfolio upcycling. You know this quadrant in the top right-hand corner. And I would like to thank those who've made it easy for us because we have sold Oftringen, Romanel and Dietikon. These are places that many people won't even know by name. And then we invested in Geneva, Lausanne, Bern, and that's exactly the kind of thing that we want to see. That's a typical capital upcycling.

The area shown in red is our pipeline for sales, plus/minus 1% of total volume. So that will be approximately CHF 130 million. That is going to be sold this year and next year. And then the upcycling strategy will be concluded. And that means that all of our properties will be in quadrants 1 or 4. Vacancies, well, we've heard a lot about it. We currently have 4%. And by the end of the year, we're going to be below 3.8%. We have some major new tenants that are shown here and some major contract extensions amongst them with Ernst & Young. I'm mentioning this because there are direct neighbors here on the Heerbrugg along the rail line.

And so here, this is our acquisition in Lausanne-West. You will see that there's a new train station and the new ice rink of the HC Lausanne, new flats are being built. So there's a lot going on here. It's a thriving location that is going to continue to thrive. By the end of 2026, the tramline will be opened. And then the last step is going to be to connect Renens as well. So this is a promising 4% net yield, and we already have 15 very renowned tenants already. And this slide is always interesting, and it's particularly interesting today.

Now the WAULT is almost 5 years, and let me just point out that the 17% that are going to run out or reach the end of the end of '26 also include Globus. And I have good news here because we have agreed with Globus to continue operating all 3 locations or actually 4 because Oftringen is also one of them, which is not just Globus, but also their location. So it's actually 4 locations, but 3 sales locations. And the second piece of good news is that the contracts are going to be remodeled, and I think both parties will benefit. The future contracts for the 3 locations are not going to have the same duration because this is always a problem.

So Geneva is going to be extended by 10 years with a fixed-term contract, Lausanne by 8 years and Lucerne by 7 years. So 10 years for Geneva, always counting from the 1st of January 2027 because the current contracts are still valid until the end of '26. So from the 1st of January '27, 10 years for Geneva, 8 years for Lausanne and 7 years for Lucerne. And that doesn't mean that there won't be an extension after that, but we just wanted some kind of staggering in the terms. And the third piece of good news is that the negotiations concerning the necessary adjustments of the rental contracts are ongoing and nearing conclusion. So that's my news on Globus.

And apart from that, the slide is what you're used to. Now this is a more interesting slide here for you. You can see the Fraumünsterpost on the left-hand side is going to be concluded next year, proper refurbished. And then BERN 131 has now been completed. Some tenants have already started occupying the buildings such as Zurich Insurance. And then Destination Jelmoli in Zurich. You will see that the investments are not CHF 130 million, but CHF 150 million now. So we've been able to hedge that better. And now the current status is that whether we would be able to ease the old burdens and now we have the new security and then for the construction site on the 1st of September, work is going to start. And that's where -- when the refurbishment is going to start properly.

Then the YOND Campus in Zurich, this is a continuation of the YOND project that is already completed, the 4 properties here. And now we are continuing the development project with almost 50% degree of letting with Züriwerk as a tenant, amongst others. And then a smaller project from Basel, Steinenvorstadt, where we have just recently submitted the construction application. We are going to continue to communicate our sustainability strategy in more detail again at the end of the year. But let me just say that we are going to be at net zero at the end of 2040, and we're still working on this actively. And we're certainly one of the most active companies in terms of circular economy. And so this is going to change the entire business approach.

Let me always give you the example. If you have a material that you need for a construction project, this requires energy to produce. And if you can reuse it after 50 years for another 50 years, it doesn't take a genius to work out that this help save a lot of energy. And that's why the circular economy is so important. And then also to give you additional information, BERN 131 is being built with wood from the Canton of Bern. It's not because that's where I'm from, but it's simply because often local wood can be sourced, but local wood does not mean that it's Swiss wood. Local wood could also come from Germany, Austria or the Czech Republic.

The only criterion is whether that type of tree is also growth in Switzerland. So here, we actually used wood that actually grew in Bern. So now here, asset management. I don't think I need to explain any more about this slide. We have these 3 pillars, fund management, asset management and real estate advisory. We now have assets under management of the CHF 13.7 billion and CHF 540 million of new capital in the first 6 months. And as you can see, if you look at the CHF 540 million, this is almost the same level as in the total of 2024. That means that we have almost reached our objective for the entire year.

Now here, the income and cost performance, CHF 138 million have already been shown. And let me just point out again, and Marcel said this, too, if you look at all of the recurring fees shown on Slide 14, in additional to the management fees and the development fees, if you add all that -- because each of those products also have their own business plan for the properties, and that means that if you add all of those, this will bring you to CHF 27.3 million recurring fees. And then with all of the costs, that's CHF 14 million. And so if you now look at the entire recurring fees, that is 200% of the costs, and that makes this business so stable and robust.

And of course, we have a lot of synergies within the corporation that we can use within the structure and on these platforms. Now the outlook. This is the last slide for today. So first of all, the vacancies are going to be below 3.8% by the end of the year, not much below that, if you're asking, then the LTV below 39%. After 6 months, it was 38.4%. So the LTV is going to be below 39%. And assets under management. I said that it's going to be tangibly above CHF 14 billion. And so tangibly was a question of what this means. And so to define this, this means between CHF 14 billion and CHF 14.5 billion.

And then the FFO I, as we published in the media release, is going to be at the upper end of the guidance. And that means that formally the guidance has been confirmed. And material means that you have -- we now have more shares than we had in February when the guidance was issued. So that's a material improvement of the guidance, even though formally it's the same. So that was just my comment.

And I think now we can start with your question -- or let me just say, overall, [indiscernible] ill and I've been missing him, but he's here now. But let me just say one question after another, we'll start in the room, and then we'll also take questions online. And of course, here with me, Anastasius Tschopp for asset management questions, Urs Baumann for anything to do with developments and Karin Voigt for the portfolio. So now let's go.

[Interpreted] Thank you. The first group of questions relates to Slide 25. Well, it was mentioned that by the end of '26, Globus will account for a large part of the maturities. Now you're in negotiations, of course. Can you make a statement about the level of rents and the investments required and the counterparty risk? Who is going to be the counterparties? Is it companies or is it a group of companies? And what about the rental deposits?

[Interpreted] Well, that's a very long question. Given the current negotiations, I cannot comment on everything. We assume that the fair values of the properties remain the same. That's as much as I can say. Now how this will be expressed in rental agreements? We are currently negotiating, but we want to maintain fair value constant.

[Interpreted] Now remaining with this slide of the 17%, if you deduct 4.8%, you still end up with 12%. The question is, where could the vacancy rate be next year if you have a lot of maturities? And what are the discussions that you're having? Can we assume that we'll be below 4%?

[Interpreted] Well, I'll pass it over to Karin in a moment. My medium-term goal for vacancies is 3.0, medium term. Now over to Karin.

[Interpreted] Well, we're not going to generate vacancies. We are actively working on reletting and the modifications that are going on are looking positive. So the question is not going to go up.

This brings me to the second question on Slide 24. Looking at the picture, it's relatively easy to find out what property this is. Thank you very much. Question is, who is the counterparty for the rental contracts? Is it one single or is it several counterparties. If it was only one, how about the default risk?

[Interpreted] Well, we are talking about one single counterparty currently. But if anything goes wrong, we can take over the 15 -- 10 rental agreements directly. Thank you. Next question.

How will you proceed on the Maag premises?

[Interpreted] Well, for the Maag premises, I think you were able to read it. The court approved the objections, and we are currently thinking of taking it to the next level. I think September 11 is the deadline. There is a court holiday at the moment and we keep hearing. Well, could we perhaps move on to the Lacaton and Vassal project. And those who are loyal with the ones who object, I can say we are not going to do that. We have a plan B. We're going to go back to the plan B, but we're certainly not going to move on with the other object that we haven't settled for. So anyone else in the room to ask a question? You all have the same questions as Ken have?

[Interpreted] Holger Frisch from Zürcher Kantonalbank. Question on transactions. Two transactions were made in the first half year. How about the other transactions that were in the pipeline at the Capital Markets Day?

[Interpreted] Well, they continue to be in the pipeline. We're not exclusive in all regards. That's why I cannot really comment on that. But we would assume that the second part of the capital raises, including outside capital, we issued CHF 200 million of the CHF 300 million, and we would like to invest as much again. We are confident that we will be able to do that. And it should be invested by the end of the first half year of 2026 when full rental income will be visible from 2027. So we're still working on the basis of the pipeline including projects in the French-speaking part of Switzerland, but not only.

[Interpreted] And then I saw that there were 3 properties up for sale, which you reclassified as existing properties. What were they -- what properties were they? And what were the reasons for you to decide not to sell them?

[Interpreted] Well, we didn't decide not to sell them, but we are showing the probability within the next 12 months. And all 3 of them depend on certain approvals -- construction approvals that we need to get because we're talking about modifications that will no longer fit our portfolio, but are highly value accretive. So we're not assuming that we'll be managing to sell them within 12 months, but maybe 15 months.

[Interpreted] My final question on Jelmoli. On the annual results, investment costs were announced to be CHF 130 million, but now they're CHF 150 million. Is it due to legacies?

[Interpreted] Well, it's much simpler to build a new property, I can tell you. I can tell you exactly how much it costs. But for refurbishments or modifications, well, you need to bear in mind that there were 5 stages and there are walls and you don't know where you have pollutants that you need to clean up. So we've found out in the meantime, and we have the final figure referring to that. And then there are static effects. Ever since we took over Jelmoli, earthquake standards have increased. So you dismantle all the pillars and then the statics experts will come in and measure and tell you where you need to reinforce because of possible earthquakes. No one will accept a fixed price on that basis because no one can really estimate the situation. That's the reason why we have an addition of CHF 20 million. Any more questions from the hall?

We had one question from Eleanor Frew from Barclays. She had trouble dialing and she had a couple of questions. I will read them out, one after the other, narrowing guidance to the upper end. But given analyzing H1 FFO I takes full year above guidance. Why not increase? Can you walk us through H2 impact that gives lower FFO per share?

[Interpreted] Well, fundamentally, you cannot simply double the figures. There are some seasonality effects included. And if we look at our guidance, we are not far away from doubling. Of course, we do more detailed calculations than doubling. So that's our guidance. But at the upper end of it.

Second question was Pont-Rouge. Is the 80% letting in line with our expectations? Can you give some more color on the interest you see? And does the guidance assume 100% letting?

[Interpreted] Shall I give the first answer? We would actually be at 90%, but still are at 80%. Why? The FlowBank had a problem because there were instructions from authorities that FlowBank couldn't continue with this business, but we are reletting that, and we would assume that by the end of the year, we'll be at around 95%. Is that in agreement with my expectations? I think we are about 1 year too late, to be very honest. I thought it would be quicker to let in Geneva. And yet, it's absolutely the right place to be for the future, but it took 1 year more, and we had the FlowBank issue. But I would assume that we're almost fully let by the end of the year. Karin, do you disagree?

[Interpreted] And we are seeing an increased interest, let me add. In the past weeks and months, we had many requests coming in. We concluded 7 new agreements, which -- with companies moving in, in the second half of the year. So we're confident we'll be ending up where René mentioned by the end of the year.

Perfect. And then third question was partially answered. Has the capital deployment taking longer than expected? Why so? Is there more competition?

[Interpreted] Well, maybe I can say this. All of the transactions that we have done were in our pipeline in January. So we saw that, a, these are sale and leaseback transactions, which often turn out to be more complex in negotiation. Sometimes there was a tenant who wants to stay on, but everybody had to have their own interest. So we are also expecting that we will also be able to come to conclusions with the other cities, even though negotiations take somewhat longer.

So here, Ken has another question.

[Interpreted] 2 questions, 2 small questions. The first one concerns Google as a tenant. Have they started preparing the building? Are there any potential alternative new tenants in the building?

[Interpreted] Well, Google remain, they pay their lease, and they have not returned it. Unlike many others, they don't intend to either. They have not started building work -- internal building work yet, but of course, we can't lease it to anyone else.

[Interpreted] So the last question concerns the strategic contribution of asset management in the medium term. If I understand you correctly, the current contribution as it has recently risen from 7% to 12% EBITDA. How much more are you expecting this to increase? Or in other words, what is a reasonable contribution outside of the real property portfolio?

[Interpreted] Well, we discussed this in detail at the Capital Markets Day. And so I would say that in the next 3 to 5 years, we will be between 10% and 15%. This year, we had a special situation because we had very strong growth in asset management and the growth in property portfolio not being so strong in the first 6 months because we're still working on individual projects. But with full deployment and the implementations of the construction projects, this is going to balance things out a little. So we're going to be in that range. Well, we're both growing -- both parts are growing actually.

[Interpreted] Well, maybe also remind you of our medium-term objectives, 2 of them. By the end of '27, we want CHF 16 billion to CHF 17 billion assets under management with an EBITDA contribution of CHF 75 million. And as far as the real estate AG is the rental income by 2028 objective, and this shows our trajectory. And so the business in -- of our asset management is very stable, and we're very close to the market, of course.

Our asset management of CHF 27 billion is able to give us opportunities for sales or acquisitions in the real estate sector. So these are -- basically, these help -- these 2 areas help each other a bit, and that's a good thing. So that was the answer to the question nobody asked. Are there any questions -- any further questions here in the room? Do you have one?

We have one question coming from the English telephone line from [ Vinci Ilia ] Ilia from Kempen.

I think I had a question guidance, but that should have been asked already. Then on SPS Solutions, if I look at the slide, you reported recurring fees of 41 bps, if I'm not mistaken. If I look at '24 full year, that's 49 bps. So I just wanted to get a view, is there some seasonality? Or is there a structural difference as well?

And then second question on the transaction in Lausanne. If I look at your slides from the CMD, you were guiding for an over CHF 200 million transaction. So I just wanted to hear where the gap comes from?

[Interpreted] Would you like to answer that?

[Interpreted] So let's start with the [ EBIT ]. So the second half year is usually a little stronger also on the recurring side. Typically, construction volume is stronger in the second half of the year. So there's no structural difference. This is more of a seasonal effect, and that is why we always do a comparison with the previous year and the same period of the previous year. And that shows that we are -- this is quite stable, this 41%.

And once again, we're going to see the same effect at the end of this year. That is just a seasonal fluctuation. And then concerning the acquisition pipeline, we stick with our acquisition targets, and there are no changes. And just all the discussions also at the Capital Markets Day continue to be valid. And the only thing that I didn't say is that, of course, when we have a transaction, we also need tenants in place, and that usually takes a little longer than we would hope for.

[Interpreted] And since I have this slide here, EBITDA, anyone who does asset management knows that normally the last quarter is the most interesting or the most attractive quarter. So you can certainly double this figure and add 10%. And then you can see more or less where we'll end up at the end of the year.

[Interpreted] Just a follow-up question on Lausanne. You said that you were looking at a property of more than CHF 200 million, rental income of CHF 7.5 million. Is this a different property?

[Interpreted] No, it's the same one, but we decided to correct the CHF 200 million down a little. The part that we bought, these are 2 finger docks and those are all rented out already. And that is why -- and this is also Ken's question. So if these tenants can be taken over and if you have a structure that is already prepared for these existing tenants. It's much easier to replace any tenant that may leave. So we thought that this was the most interesting part, and that is why.

Okay. Now back to Ken.

[Interpreted] [indiscernible] There's a question by an investor.

[Interpreted] So we know the tenants, not just by name, we know what they do. And as of today, no impact by the tariffs. And if you ask me personally, for my personal view, I think it's going to continue like that. There won't be an impact unless Switzerland suffers an economic downturn as a whole. And if then that will lead to a different environment. But the tariffs themselves, there is no impact.

Is there -- are there any more questions? In that case, thank you very much. Also being here in person, it's always fun to speak to people in person. And so now we would like to invite you to join us for Aperol on the 35th floor. And thank you once again for your interest, and have a great day.

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]