Our business model and integrated value generation creates added value for our stakeholders and generates long-term growth and economic benefits.
As part of the business plan and budgeting process, group objectives and their parameters are broken down into the individual group companies. The group companies can then define additional objectives and measures and assign them to the relevant areas of action. These individual objectives also contribute towards the overall group objectives.The business plan is revised each year and in some cases includes scenario analyses. These examine the potential development of the business in light of various economic and regulatory changes. The business plan and outlook must be approved by the Board of Directors.
The rating agency Moody’s assigns an A3 long-term issuer rating to Swiss Prime Site with a stable outlook. The rating received confirms the strong creditworthiness and strategic orientation of the Swiss Prime Site Group.
In 2021 Swiss Prime Site concluded a deal with 11 Swiss banking institutions for two unsecured credit facilities with an amount of CHF 2.6 billion. This development will increase the proportion of properties not secured by mortgages in our entire portfolio from just under 30 percent to more than 80 percent and will ensure that the vast majority of the providers of borrowed capital are treated equally. Not only will there be significant savings in ongoing interest costs, but it improves the financial agility and makes the balance sheet considerably more flexible. Since the end of 2021, the credit margins agreed in loan agreements with banks have been linked to the ISS ESG rating, meaning that the ESG performance directly affects the rate of interest to be paid.
The rating agency Moody’s assigns an A3 long-term issuer rating to Swiss Prime Site with a stable outlook. The rating received confirms the strong creditworthiness and strategic orientation of the Swiss Prime Site Group.
In autumn 2020, Swiss Prime Site launched the firstGreen Bond in in accordance with the criteria of the Green Bond Framework specially drawn up for that purpose. The issue met with widespread interest from institutional investors and the market. This enabled Swiss Prime Site to achieve attractive long-term refinancing, while at the same time further diversifying their financing structure. In 2021 Swiss Prime Site issued a second green bond totalling CHF 300 million, doubling the sums invested in sustainable real estate. These bonds support the sustainability efforts of both Swiss Prime Site and the investors.
We discuss existing rental agreements with tenants in a timely manner before the end of the tenancy and extends them wherever possible. Renovation and refitting work is coordinated with the terms of leases so that it can be carried out when premises are not in use.
In 2021, many tenants were affected by the impact of COVID-19. The asset management team at Swiss Prime Site Immobilien maintained intensive, direct contact with the companies during this exceptional situation and processed their requests for rent reductions or extensions. Swiss Prime Site implemented individual assessments and measures to help mitigate the financial difficulties faced by its customers, enabling it to prevent any additional vacancies and even improve the vacancy rate compared with the previous year.
