In the 2025 financial year, Swiss Prime Site successfully completed the strategic realignment that we initiated several years ago. The repositioning of the Jelmoli building, and the associated closure of the department store’s operations at the end of February 2025, reflect our decision to clearly focus our business model on our real estate activities. Today, we are the leading independent real estate company in Switzerland, combining our extensive expertise in the Swiss real estate market with our unique skills. Focusing solely on two segments – our own real estate and asset management – not only gives us a clear strategic direction but will also help us to concentrate on our core competencies and to fully exploit our growth potential.

«Today, we are the leading independent real estate ­company
in Switzerland, combining our extensive expertise in the Swiss
real estate market with our unique skills.»

The successful execution of our capital increase in February 2025 demonstrates that we are also systematically implementing our growth strategy in our core business of directly held real estate. Over the course of the year, this allowed us to purchase three office properties in prime locations that represent ideal additions to our portfolio and will further strengthen it. These properties have already increased in value and generated income for our shareholders in the first year since they were acquired.

Despite the temporary loss of significant rental income due to the renovation of the Jelmoli building and other properties, the rental income from our property portfolio remained almost stable. We achieved this through the generation of additional income, highlighting Swiss Prime Site’s strength and resilience. The second pillar of our business, Asset Management, not only benefited from the favourable market environment with low interest rates but has also firmly established itself as the largest independent provider, enjoying a high level of credibility in the market. As a result, we gained market share and attracted record new money of CHF 1 billion, with our assets under management increasing to over CHF 14 billion for the first time at year-end 2025.

Swiss Prime Site further increased its cash earnings (funds from operations; FFO I) in absolute terms. At CHF 4.22 per share, FFO I was stable year on year and was also well above our target range of CHF 4.10 to CHF 4.15 per share for the 2025 financial year. We will therefore propose an increased dividend of CHF 3.50 per share to the Annual General Meeting on 12 March 2026.

In operational terms, we can thus look back on a strong year in which we delivered a pleasing performance. In addition, the operating environment remains stable, even if it is marked by slightly higher levels of volatility: While economic activity in Switzerland cooled in the wake of uncertain and unstable global developments, the Swiss economy has once again proved robust. However, uncertainty usually has a detrimental effect on the economic climate. We are seeing companies rethinking major investments in production capacity in Switzerland – whether in terms of timing or scale. Nevertheless, exports fell less significantly than expected in the second half of the year and – crucially for us – the service sectors are performing much better than manufacturing.

In the rental market, regional differences are becoming more pronounced and micro-locations with special usage types in clusters are growing in importance. While vacancies in prime locations remain low and rents are rising, we are seeing weaker demand in outlying regions. It is precisely in view of this situation that our sharper focus on prime central locations in recent years has proved effective. We are still seeing strong demand for our properties and a willingness on the part of tenants to pay attractive prices for high-quality space. This is reflected by a record low vacancy rate of 3.7% in the past year.

Global macroeconomic uncertainty also led to increased capital inflows into the stable Swiss real estate market, which has become even more attractive than fixed income investments thanks to low interest rates. At the same time, low vacancies and stable income made the residential segment, in particular, the preferred area of investment for institutional investors.

We also benefited from the stability of the Swiss real estate market as an issuer. In September 2025, we very successfully issued a EUR 500 million straight bond in the euro area – becoming the first Swiss real estate company to do so. The high level of demand, which saw the bond eight-times oversubscribed, not only underlines our strong credit rating but also shows the market’s confidence in our attractive business model. By gaining access to the extremely broad and deep euro market, we have significantly diversified our sources of financing and further reduced potential risks.

Despite global trends, sustainability remains an important element of our business strategy. We once again made great progress in the delivery of our sustainability strategy in 2025, particularly in reducing our carbon footprint. To drive further progress in this area, we are working intensively with other players in our industry to develop a framework for Scope 3 emissions in the real estate sector.

After ten years in office, we said farewell to our CEO René Zahnd at the end of 2025. René led our company through a period of profound change and he was instrumental in Swiss Prime Site’s successful repositioning as a focused real estate company. On behalf of the entire Board of Directors, I would like to thank him for his many years of tireless and successful service and to wish him all the best for the future.

«Following the successful realignment of the Group and our decision
to focus on our core segments – our own real estate and asset management −
e want to make decisive use of the diverse growth opportunities in these areas.»

We found the ideal successor to René within our company: Marcel Kucher has been appointed as the new CEO of Swiss Prime Site. He has been CFO and a key member of the Executive Board since July 2021, helping to drive our strategic repositioning. I am therefore convinced that Marcel, together with Anastasius Tschopp as a further member of the Executive Board and CEO of our Asset Management business, will not only provide continuity and stability but will also ensure that we successfully pursue our growth strategy as well as providing strong impetus for the future. The search for Marcel Kucher’s successor is underway and a new CFO will be announced in due course.

As Chairman of the Board of Directors, I am committed to regularly engaging in an open dialogue with all our stakeholders. We strive to take shareholder feedback into account wherever possible. Against this backdrop, we adjusted our remuneration system last year to place an even greater emphasis on the achievement of long-term success. You can find further details about this topic in the Compensation Report that forms part of this Annual Report.

I am convinced that we are strategically very well positioned for the future and I look forward to continuing on our current path together with my colleagues on the Board of Directors, our management team and all our employees. Following the Group’s successful realignment and our decision to focus on our core segments – our own real estate and asset management − we want to make decisive use of the diverse growth opportunities in these areas. With a solid platform and a dedicated team, we are ideally positioned to reach our goals and achieve further growth.

On behalf of the Board of Directors, I would like to thank you, our shareholders, as well as our customers for your trust and loyalty. Our employees work with our partners every day to create long-term value for all our stakeholders. I therefore also wish to express my gratitude to them for their hard work and efforts, which are essential for our success.

Swiss Prime Site delivered a strong operational performance and stable funds from operations (FFO I) per share in the 2025 financial year. Rental income in the Real Estate segment proved highly resilient, with only a slight decline despite the closure of Jelmoli and other major building modifications. The Asset Management segment benefited from an attractive market environment with strong investor appetite, resulting in a record inflow of new money and double-digit earnings growth.

In the 2025 financial year, the closure of Jelmoli in February, as planned, marked the successful conclusion of our strategic efforts to focus our activities on the real estate business. By concentrating on the two core segments – Real Estate and Asset Management − Swiss Prime Site has gained a clear profile and established itself in the market as a leading pure-play real estate company.

This sharper focus has enabled us to simplify our business model and to harness synergies. The strong operational development of our business and our growth in the 2025 financial year show that we are on the right track. With capital increases of approximately CHF 1.3 billion and a transaction volume of around CHF 2.4 billion, we have set new records across the Group. This is an impressive indication of the speed and agility with which we, as a Group, can react when we identify market opportunities that can benefit our investors.

Cash earnings (funds from operations, FFO I) rose by 3.2% year on year to CHF 336.3 million in 2025. FFO I per share remained stable year on year at CHF 4.22 and was significantly above our guidance range of CHF 4.10 to CHF 4.15 for the 2025 financial year. This increase was primarily driven by our attractive like-for-like growth and ongoing cost control.

Due to our strong operational and financial performance, a dividend increase of CHF 0.05 to CHF 3.50 per share will be proposed to the Annual General Meeting on 12 March 2026. This corresponds to a payout ratio of over 80% of FFO I.

Following a temporary increase in mid-2025, the vacancy rate had fallen to a new record low of 3.7% by the end of the year (previous year: 3.8%). The weighted ­average unexpired lease term (WAULT) increased to 5.3 years as at the end of 2025, exceeding the previous year’s figure of 4.8 years. The main drivers of this positive development were the extension of the rental contract with EY at Hardbrücke in Zurich by 10 years and the extension of rental contracts with Globus at three locations: Geneva (by 10 years), Lausanne (by 8 years) and Lucerne (by 7 years).

On the cost side, real estate expenses declined to CHF 62.5 million, compared to CHF 66.1 million in the previous year. However, personnel costs in the Real Estate segment increased by around 13.6% compared to 2024 (primarily due to the completion of the insourcing process initiated two years ago), and other operating expenses declined by 0.8%. Overall, operating expenses in the Real Estate segment fell by 2.4% year on year to CHF 94.2 million. The cost ratio, measured against the EPRA cost ratio, was 18.0%, compared to 17.3% in the previous year. This compares to the medium-term EPRA cost ratio target of less than 16% by the end of 2028.

The operating result before depreciation and amortisation in the Real Estate segment increased by 15.1% to CHF 590.3 million. The increase was mainly driven by higher revaluation gains compared to the previous year.

Further increase in property portfolio value and continued active portfolio management

As at the end of 2025, the value of the portfolio in the Real Estate segment rose by 6.6% to CHF 13.9 billion. This increase in value is primarily due to targeted purchases of properties and to value-enhancing investments, as well as positive revaluation effects. The main drivers of the revaluation gains were higher rents for new rental contracts or lease extensions and the reduction in the average discount rate by 27 basis points to 3.77% (as determined by the independent valuer). This reduction reflects the strong momentum in the Swiss real estate market at present.

The funds raised in the February 2025 capital increase in the amount of CHF 300 million were invested in full by the end of the year in value-enhancing investments, as planned. The returns generated were significantly higher than the average portfolio returns. In specific terms, we acquired the former headquarters of SGS on Place des Alpes in Geneva. In Lausanne, we bought a multi-use office building near Prilly railway station in August and the headquarters of SIX Swiss Exchange in Zurich-West in December. We also succeeded in consolidating properties in a prime location on Zurich’s Bahnhofstrasse through an asset swap involving two properties in non-focus regions. These transactions underscore our focus on top-quality, centrally located office properties and show that we can make attractive, value-enhancing purchases even in a competitive market.

As part of the ongoing optimisation of our portfolio, we sold ten properties last year with a total market value of CHF 129.1 million. Taking these sales as well as purchases into account, the total number of properties as at the end of 2025 fell to 132, compared to 139 in the previous year. These sales mainly involved smaller properties, primarily in the retail sector, as well as a number of project developments where offices were converted into residential spaces. The aim was to sharpen our strategic focus on larger commercial properties in central locations as part of our capital recycling strategy.

This is where we see the most exciting rental potential. Consequently, we have increasingly focused our portfolio on these locations in recent years.

At the same time, we invested in pioneering development projects in Zurich in particular, including the extension to the YOND Cam-pus, the modification of the Jelmoli building and the renovation of the historic Fraumünsterpost building and the Talacker property.

Strong growth in Asset Management

Asset Management successfully continued on its growth path in the last financial year. Assets under management grew to CHF 14.3 billion at year-end, compared to CHF 13.3 billion at the end of 2024. The main drivers of this increase were record new issues and new money totalling CHF 1 billion. Demand was strong across the entire product range – not only because of the current attractive interest rate environment for real estate investments but also due to the compelling returns and investment focus of our products.

Of particular note is the development of our three flagship products: Swiss Prime Investment Foundation (SPIF), Akara Swiss Diver-sity Property Fund PK (ADPK) and the Funda­menta Group Investment Foundation, which focuses almost exclusively on residential property. In 2025, five capital in­­creases were executed for these products, with a total of CHF 756 million of new capital subscriptions from investors. Some of these funds were profitably invested later in 2025, and there is a healthy pipeline of further purchases.

We also pursue an active capital recycling strategy in most fund vehicles – like with our own portfolio – meaning that we sell properties where we see limited scope for value creation in order to free up funds that can be invested in purchases or developments. This improves the performance of the product and provides additional returns for us as an asset manager.

We also reached an important milestone in December 2025 with the successful listing of our latest investment product – the commercial fund SPSS IFC – ideally positioning this attractive vehicle for further growth. The fund was included in the «SXI Real Estate Broad» and «SXI Real Estate Funds Broad» indices in December, which makes it attractive to other groups of investors.

Operating income in Asset Management increased by 18.1% year on year to CHF 83.6 million. The Group’s prudent approach is reflected in the fact that around two-thirds of revenue comes from recurring income in the form of management fees, and only one-third comes from transaction-related income such as buying and selling commission or distribution fees. Overall, transactions with a total volume of around CHF 1.7 billion were carried out in the past year.

With the first full-year integration of the Fundamenta Group, the Asset Management segment has firmly established itself as the leading independent asset manager for real estate solutions in Switzerland.

As a result of the full integration of the Fundamenta Group and strong organic growth, further synergies and economies of scale were achieved in the reporting year. Operating expenses in Asset Management slightly declined to CHF 32.8 million year on year and operating profit (EBITDA) increased by 30.7% to CHF 54.9 million with an EBITDA margin of 66%, compared to 59% in the previous year.

Stable profit from operating activities

Swiss Prime Site generated Group-level operating income of CHF 553.4 million in the 2025 financial year, compared to CHF 663.4 million in the previous year. This decline is almost entirely attributable to the closure of Jelmoli in February 2025, when income from the retail business ceased. Excluding this effect, comparable operating income amounted to CHF 537.0 million, compared to CHF 523.5 million, representing growth of 2.6%.

At the same time, operating expenses decreased significantly – in particular due to the elimination of costs related to Jelmoli and additional efficiency gains in property management. Operating expenses declined by 42.3% to CHF 148.2 million year on year and by 2.8% on an adjusted basis excluding Jelmoli.

Operating profit (EBITDA), adjusted for revaluation effects and contributions from property disposals, amounted to CHF 410.1 million in 2025, only slightly below the previous year’s figure of CHF 415.1 million.

Thanks to lower financing costs and optimised tax expenses, consolidated net profit rose from CHF 382.5 million to CHF 382.5 million, an increase of 6.2%. Earnings per share including revaluation effects were CHF 4.79, compared to CHF 4.67 in the previous year. Excluding these effects, earnings per share were CHF 3.96, compared to CHF 3.78 in the previous year.

Broady diversified financing at attractive conditions

Swiss Prime Site has a strong equity base, large liquidity reserves and broadly diversified sources of financing. The solid and conservative nature of Swiss Prime Site’s financing structure was confirmed in 2025 when it was once again assigned a A3 rating by Moody’s.

In the Real Estate segment, the loan-to-value (LTV) ratio was 38.1% at year-end, compared to 38.3% in the previous year. Interest-bearing borrowed capital excluding lease liabilities amounted to CHF 5.6 billion as at the balance sheet date, compared to CHF 5.3 billion in the previous year. The average term to maturity of the financing was 3.9 years, compared to 4.3 years.

The increase in financing liabilities was mainly due to the growth of the portfolio as a result of property purchases, with further debt raised in addition to shareholders’ equity to maintain leverage. As part of our prudent financing strategy, we have further diversified our sources of financing and have made our capital base even more robust. In September 2025, we successfully issued a EUR 500 million Eurobond for the first time – on terms equivalent to those in the Swiss domestic market. The fact that the bond was heavily oversubscribed (EUR 4.3 billion in just three hours) at attractive terms underscores the trust that investors have in Swiss Prime Site and the high quality of our property portfolio.

We continued to move ahead with our long-term financing strategy in the 2025 financial year. We issued a total of CHF 777 million in the form of green bonds and succeeded in allocating the entire volume to new green acquisitions and to ongoing conversion ­projects.

Thanks to the current low interest rate environment and the risk-conscious variable component of financing, average financing costs fell significantly compared to the previous year. The average interest rate was 0.94%, compared to 1.10% the previous year.

Optimistic outlook for 2026 financial year

Swiss Prime Site is optimistic about the outlook for the 2026 financial year and expects conditions to remain favourable for the Swiss real estate market. Low interest rates in Switzerland provide attractive financing conditions, and in the absence of alternative investment opportunities of comparable value, demand for real estate is likely to remain high next year, supporting prices. In addition, the stable Swiss real estate market is perceived as a safe haven against the backdrop of ongoing geopolitical uncertainty, attracting institutional investors in particular.

Swiss Prime Site’s Asset Management segment is the main beneficiary of these market conditions. With a comprehensive, broadly diversified range of products and services, it offers private and institutional investors the opportunity to invest in residential and commercial real estate with attractive fixed returns. In the medium term, Swiss Prime Site aims to increase assets under management to more than CHF 16 billion by the end of 2027 and to generate EBITDA of more than CHF 75 million.

The company expects rental income in the Real Estate segment to rise significantly in 2026. The purchases made in 2025 will increase rental income by a total of around CHF 17 million. 

The strengthening of our capital base will also allow for a slight reduction in planned property sales as part of our ongoing capital recycling strategy. As a result, Swiss Prime Site now expects to see a direct and indirect increase in rental income of almost CHF 20 million as a result of the capital increase beginning in 2026. In addition, vacancies are expected to continue to decline slightly. The medium-term goal of achieving rental income of CHF 500 million by 2028 is already within reach.

At Group level, the operating result is expected to increase further in the 2026 financial year. Swiss Prime Site also expects FFO I per share of between CHF 4.25 and CHF 4.30. As is the case each year, we are therefore aiming to distribute a stable or increased dividend. At the same time, we are targeting a stable debt ratio of less than 39%, and our risk appetite remains unchanged.