Good morning, ladies and gentlemen, and welcome to the AEVIS VICTORIA conference call regarding the publication of the 2023 annual results. At this time, all participants have been placed on listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Antoine Hubert.
Hello, ladies and gentlemen. Welcome to this presentation of our annual results 2023. I will start with an overview. We continue to create value. We have a record hospitality revenue this year. We strengthened also the management and the fundamental integrated care milestone. Healthcare segment, we did a capital increase with Visana Beteiligungen AG, which confirmed the significant value creation achieved at Swiss Medical Network level. The hospitality segment, MRH Switzerland AG, Michel Reybier Hospitality Switzerland, strong improvement in the positioning of the group of hotels that we can see in the numbers. Real estate portfolio, we also increased the value due to a lot of investment in construction. We expand the floor in both portfolio healthcare and hotel infrastructure. We did strengthen the group executive management with Fabrice Zumbrunnen, who is going to be Chief Executive Officer starting first May 2024.
As a highly experienced man, as a Chief Executive Officer, he's already active in the group through the board of directors of Swiss Medical Network and MRH Switzerland since June 2023. We also appointed, we announced this morning, Michel Keusch as a Chief Financial Officer and Chief Investment Officer, so Chief Financial Officer and Chief Investment Officer, will start on the first June 2024. Myself, I will make the transition until next general shareholder meeting in 2025, I will be proposed as Chairman of the Board at this time. Also, Séverine van der Schueren, who's Chief Administrative Officer, enters in senior management of the company. The hospitality segment with another record year. We did 10.3% growth in 2023. We had a very strong increase in the average room rate from 2019 before COVID to now. CHF 412 in 2019, CHF 559 in 2023.
This number is slightly diluted by the new hotel that we acquired in 2023. Swiss Medical Network, as I said, we have this new integrated care, VIVA Health Plan, with Visana. It went live in Reuss-Urn-Glarus as of first January 2024. It's based on a full capitation model and focus on healthcare rather than sick care. The VIVA Health Plan has been approved by the BAG, the Bundesamt für Gesundheit, in 2023 and now can be deployed in a further region in Switzerland. The sum of the parts of AEVIS participation has increased. We are giving here an indicative net asset value that has been increased by 17 x since 2011. We take 2011 as a start date because that's the date where Michel Reybier entered as a co-shareholder, and we started this very strong development in both sector, healthcare and hospitality.
Healthcare integrated care p artner shareholder base contract with all insurance partners, and we also implemented restructuring measures that are necessary to maintain the margins. The Swiss Medical Network launched the first true integrated care organization with Canton Bern and Visana. It's a very strategic partnership with this leading insurance group. We have contract with all insurance partner in Switzerland, so Swiss Medical Network has a contract with absolutely all insurance. We implement restructuring measure since October last year to adapt to the market challenge, so inflation, raising cost, and energy price. The other healthcare participation are the TCS Swiss Air-Rescue. That was a few years ago, 100% subsidiary of AEVIS. We are now minority shareholder with 40%. 60% are in the hand of Touring Club Suisse. Still, since we have this partnership, we have developed Swiss Air-Rescue in Switzerland. It's now the biggest rescue organization, ground rescue organization in Switzerland.
We have a very important pipeline, which is currently under development. The Genolier Innovation Hub, the construction is completed or almost completed. We already started to have the first user, GE HealthCare and Accuray have already taken their place in the Genolier Innovation Hub. Also our investment in Well and Benecura, two digital initiatives, are steadily growing. Well has now more than 260,000 users in Switzerland, which makes the most successful digital health app in Switzerland. We create significant value in 2023, and we confirmed our strategy. Hospitality value drivers. We have repositioned in luxury. We have a positive momentum in Switzerland for tourism. We have a scalable platform and by MRH Switzerland, as I say, a record revenue in 2023 with more than CHF 170 million turnover.
We are still working on further improvement in positioning of the hotels and especially the two main destinations, Zermatt and Interlaken. We have strong brands and excellent reputation within the industry with Michel Reybier Hospitality. Batgroup investment. Batgroup has made a record revenue in 2023, CHF 34.1 million, with the first quarter with positive EBITDA. Batgroup is, as I say, startup, we reached a break-even in the fourth quarter of 2023. Batgroup did also the acquisition of Putzfrau.ch in 2023. That was the Swiss-German competitor of Batgroup. Batgroup is continuing this organic growth with a strong focus on Switzerland. Infrastructure. Swiss Hotel Properties, we have invested in a new package in Zermatt. We bought a second package from Credit Suisse Real Estate Fund Hospitality, which is located on the same area as the first package we bought.
We are capitalizing on land development opportunities. We did a strategic property acquisition. We probably also are going to make some divestment. We have a very good debt management and geographic diversification of the portfolio. By Swiss Hotel Properties SA, the focus is on Zermatt and Interlaken. There's still a huge potential. On Infracore, we are implementing a comprehensive energy and water efficiency program in all the properties. Deal activity. We did strong M&A activity with Visana Beteiligungen AG, who becomes a shareholder of Swiss Medical Network with a capital increase of CHF 150 million. They own now 11.1% of Swiss Medical Network. Also, as I say, Swiss Hotel Properties SA bought a second package from Credit Suisse Real Estate Fund Hospitality in Zermatt. We have a pipeline, especially on the healthcare side, to develop further the integrated care. The new executive management.
With the size of AEVIS now, we needed to strengthen the management also to ensure the stability and the sustainability of the company. We are very happy to announce the new Chief Executive Officer, Fabrice Zumbrunnen. He was a former Migros Chief Executive Officer. He played a key role in shaping Migros healthcare strategy with Medbase, and he has a very comprehensive knowledge of the service sector and consumer needs. He's also highly skilled in strategic business development. A new Chief Financial Officer, Chief Investment Officer, Michel Keusch, he's a senior investment manager at Bellevue Asset Management. He did manage a fund that has AEVIS participation since 2013, so he knows our company very well from outside. He was a very strong follower of the company. He has a very strong competency in strategy and financial analysis and valuation and investment banking transaction. He will focus on conscious capitalism and sustainability concept.
Myself, as I said, I will stay until next AGM, so in 2025, and then will be candidate as the chairman of the board. Also Séverine van der Schueren, who's in the group since 2008, first as a secretary general and then Chief Administrative Officer, is completing this senior management. AEVIS 2.0, that will be the task of the new management to continue and implement the vision that we have in AEVIS. In 2023, we confirmed the valuation of our participation. We strengthened the management. We implement some cost-cutting measure. We have a pipeline of investment for further development. Beginning 2024, we have very strong figure in the first month in both hospitality and the healthcare sector all over the world, so all over the company. The interest rate environment is normalizing, we will take profit from this normalization to implement more long-term financing.
We expect 2024 to be a successful year with an increased deal activity and further value creation. The healthcare segment, Swiss Medical Network, first with 80%, it's an investment from AEVIS. We own 80%. It's a leading group of hospital, but also the leader in integrated care in Switzerland. We have 21 hospital and 60 medical center. We did 79,000 intervention, a little more than 4,000 employee, 2,300 physician, they're mostly independent physician, more than 700,000 outpatient admission, 1,471 beds, and we reached this year, 16.5% EBITDA margin. The result of this hospital segment for 2022 has been normalized. We exclude the Réseau de l'Arc, which has been deconsolidated from Swiss Medical Network in December 2022. We have a stable turnover in the perimeter with CHF 768 million turnover. Medical services, that's doctor fees, increases a little bit since the net revenue is slightly down.
EBITDA margin decreased from 20% - 16.5%. Rental expense are stable. The EBITDA decreased from CHF 61 million to CHF 34.8 million. The decrease of profitability is mainly due to inflationary pressure. Material, energy, rent a little bit. Material energy, that's quite material. Energy cost were in 2023, CHF 6 million over the former year. We have a fixed price for energy until end of 2025, and then it will decrease. We also, of course, had a significant interest rate increase. We were mostly financed in the SARON. It has cost us a few million CHF in 2023, and now it's decreasing with a new trend in the interest rate. Countermeasure, we take a countermeasure at Swiss Medical Network. We are currently renegotiating base rate and tariff with the insurance. The problem in this industry is that the rates are fixed. They are not linked to inflation.
The cost, the wages, the rent are indexed on the Swiss price index. We have to renegotiate the base rate. It's a global trend in Switzerland. It's not only us. Public hospital are also struggling with cost. There will be an increase in these rates in the next months of the year. Production and equipment, of course, we are constantly discussing with our supplier to optimize the prices of material. We want also to harmonize within all our hospitals to try to reduce the number of suppliers. We reduce the use of temporary staff. The staffing in healthcare is difficult, mostly in region like Zurich. All the hospital are using temporary staff and temporary agency, which drive important costs. We reduce drastically the use of the temporary staff. We also did the optimization of the personnel allocation and the first reduction of 50 full-time equivalent.
There was no layoff. It's only with the natural fluctuation that we are reducing that. There are further reductions that are planned. We plan to reduce 50 full-time equivalent further until the next quarter. We also work on the reduction of the average length of stay. The margin in healthcare are mainly the first two days when we do the procedure, the operation. By reducing the average length of stay, we are increasing the margin, and we are also increasing the capacity. We did reduce in a pilot project in Rapperswil, the average length of stay by two days and increase the margin by 20%. Also we are working on actively deleveraging and lowering overall net debt and financing expenses. The first months of 2024 are showing positive effects of all the measures. Margin in 2022 were 20%, in 2023 decreased to 16.5%.
We are back now to 18.2%, and we plan to reach 20% at the end of the semester. Integrated care. Since 2015, we are working on integrated care. 2015 was the first public-private partnership with the Canton of Bern. We invest in the radiology of Hôpital de Saint-Imier that create a very strong link between us and the Canton of Bern through this Hôpital de Saint-Imier. We developed further with Hôpital de Moutier. In 2018, we start developing the idea to establish integrated care organization in Switzerland with Kaiser Permanente as a role model. We started discussion just before COVID with potential partner. We stopped the discussion during COVID because it was quite difficult to speak about the future during this pandemic.
In October 2022, we signed with Visana Vitality Group, an agreement to be a founding partner of the Résodac alongside Canton of Bern and Swiss Medical Network. In 2023, Visana Vitality Group become also a shareholder of Swiss Medical Network to jointly drive the implementation of shared vision of integrated care. In 2024, the Viva Health Plan as its first member and went live in the Résodac. This project, Résodac, has been followed by Fabrice Zumbrunnen since June 2023. I will hand over to Fabrice to explain you in detail the Résodac.
Thank you, Antoine. Hello, everyone. Nice to be with you for this call. Let's try to explain shortly what we are doing in this region. In fact, we have a very broad offer of services, lab services with hospitals, outpatient centers, even psychological facilities, elderly care homes, radiology, pharmacy, and something very important for us, we have our own hospital at home and care at home organization. Our goal is, as Antoine said, to have an integrated care solution. We think that we have something unique to offer, and it's reality now from the 1st January of this year. We have until now learned a lot about our processes, and we are quite convinced that we will be able to have a very positive impact on cost, but also on quality.
As you know, in the health sector, we are organized in many silos. Our goal is to be focused on the customer journey or the patient journey. I say customer journey because we speak of Viva members. You can show the next slide, please, Antoine. The reason is that in a capitation model, you have money for every patient. You can ask yourself what are the measures that we have to take? What are the right choices? For the first time, we can integrate the question of prevention. To make the right measure, the right decision for our members. It's very fascinating just to observe that for many of our members, it's the first time that they are asked what you can do. Also now what they can do for their own health.
We think that we have a huge potential and we are able to reduce the length of stay for many chronic patients. The first results are very encouraging. Next slide, please. Okay. Maybe I can present that we learn every day, in fact, not just our members are willing to become new authors, but we see that it has a very positive effect on the whole organization of our Réseau de l'Arc. We have 1,500 members, you can say, is it a lot or not so many people? In fact, in these regions, we have 50,000 inhabitants, only 10,000 have changed the insurance model. That is to say that 50% of the people in this region have chosen a new product. It's a very interesting first step.
We are now trying to enlarge our footprint with many collaborations with other physicians, with outpatient center which don't belong to Réseau de l'Arc. It's very important because we will reach more members the next year. Very encouraging, and we are preparing the next regions. That's all for my part, Antoine.
Thank you, Fabrice. The next slide, we did organizational restructuring within Swiss Medical Network to allow also to develop this integrated care. As you know, for integrated care, we need to have primary care. Doctors' office, group practice, radiology, diagnostic, maybe even pharmacy. To be able to structure that, we separate the group Swiss Medical Network in two sub-holdings. Swiss Medical Network will be a holding for hospital and clinic only. For everything which is inpatient.
We create a second sub-holding, SMN Ambulatory Services SA, where we will have all the medical center, the primary care, and also all the accessory activities that are necessary. That's only an internal modification, but the two activities are slightly different. Also working with different tariffication. As you know, the hospital working with the DRG system, and ambulatory is working mostly with TARMED, and then now the new TARDOC, which is also only for ambulatory. It does not change anything to the shareholding. 80% AEVIS, 8.9% MPT, and 11.1% Visana. Hospital outlook. We will continue to invest for this integrated care, as I say. We have an acquisition pipeline for primary care. We are focusing on primary care for our acquisition, and also we are working on efficiency and employees program. In healthcare, we also have this Genolier Innovation Hub on the Genolier Healthcare Campus.
The construction work of Genolier Innovation Hub has been completed in Q1. Still we need to finish the garden on the roof. There are some internal construction still needed. Inauguration of this Genolier Innovation Hub is planned for September 2024. The first tenant has already moved in. Accuray and GE HealthCare are the two first tenants that moved in. It will be a hub for healthcare companies that want to work alongside our doctors and patients in a real healthcare environment. The idea is to create a dynamic and collaborative environment between both companies.
We will offer infrastructure and services, so a conference center with 300 seats, a conference room, also education room, and research and development infrastructure. The idea is to have a true know-how transfer between researchers, clinicians, and the real world, so as soon as possible to be able to use that for the patient. The hospitality segment is we have now 11 hotels, one in U.K., 10 in Switzerland. Average room rate in 2023 was CHF 559. It has been slightly diluted with two new small hotel, Pescherhof in Disentis and Hotel Adula in Flims. Around 1,000 employees in hospitality. The number of employees is changing along the seasons. We have more than 1,170 rooms in operation with 291,000 overnight stay and 10.3% revenue growth in 2023.
Since 2014, we regularly increased the revenue and the profitability with, of course, a bump during the COVID period, 2021, with a strong decrease of the profitability. Now we have a stable profitability around 21%, 20%. The slight decrease in 2023 is due to the addition of these two, Pescherhof and Adula in 2023. Maybe some case studies. We took over Victoria-Jungfrau in 2014. Within Victoria-Jungfrau, there was the Victoria-Jungfrau Grand Hotel & Spa and La Réserve Eden au Lac Zurich. The Victoria-Jungfrau had an eight-year CapEx cycle because we renovate all the rooms. We also have now a new outdoor pool area in the back of the hotel since last summer. We did launch also a very big kids club for every age, 269 sq m.
We also opened a small gourmet restaurant, Radius, with 70 points at Gault&Millau. We achieved the highest revenue in its history in 2023 with more than CHF 46.5 million turnover. Since 2014, we increased the average room rate from CHF 356 to CHF 653 last year. La Réserve Eden au Lac, we did operate La Réserve without investing from 2014 to 2017. In 2017, La Réserve Eden au Lac has been closed. Eden au Lac has been closed and reopened in 2020 under La Réserve brand. Of course, 2020, 2021 were difficult years with COVID. Since 2022 and 2023, the hotel is working very well. We increased the turnover from CHF 7 million to CHF 19 million last year, CHF 19.5 million, and the average room rate was CHF 1,291 in 2017 and has reached CHF 1,128 in 2023.
There is only 40 rooms in the La Réserve Eden au Lac, that's why we can reach a so high average room rate. The outlook in hospitality, we will continue to harmonize the standing and the process of our hotels in line with the MRH strategy. We will have a very strategic acquisition approach and mostly abroad, because we want to extend the international footprint of La Réserve. To retain the best employees, it's very important to be able to give them the opportunity to have also experience abroad if we don't want to lose them for Hilton, Four Seasons or such international brands. Zermatt has a very high potential. We will still do further improvement in the F&B offering and the hotel positioning. We have four hotels in Zermatt, Le Petit Cervin, the Mont Cervin Palace, the Hotel Monte Rosa, and the Hotel Schweizerhof.
We are going to create a high-end service residence. We own more than 20 apartments in Zermatt that will be refurbished and then serviced by La Réserve and put on the market in 2025. The real estate portfolio, we start with three hotel properties, 100% investment of AEVIS. The market value of hotel properties is CHF 858 million, 27 properties has CHF 24.2 million revenue. Out of the CHF 24.2 million revenue, a little more than CHF 3 million is from third parties or retail space. In Zermatt, we have Minghu as a tenant. We have several brands also. We opened Loro Piana in Zermatt, was very successful this winter season. It was supposed to be a pop-up, but it will be a definitive implantation of Loro Piana.
We have less than 50% LTV in Swiss Hotel Properties, a total of 131,000 sq m rental surface. We have 30,000 sq m land that we can develop further. The portfolio is La Réserve Eden au Lac Zurich, Victoria-Jungfrau, Hotel Adula in Flims, Mont Cervin Palace, AlpenGold Hotel in Davos, Hotel Schweizerhof in Zermatt, Hotel Belvédère in Zermatt, Hotel Monte Rosa, L'Oscar, Hotel Schweizerhof, as already said, Täscherhof in Täsch. The land is located in Zermatt, Täsch, Interlaken, Crans-Montana, and Küsnacht. We only have a prime location. What's missing is also L'Oscar in London. L'Oscar is located next to Covent Garden in Holborn. There's no CapEx backlog in our hotel except for the two last acquisitions, Hotel Adula and Täscherhof. All the hotels are in a very good shape and with long-term rental agreement with MRH Switzerland.
40% of the portfolio value is in Zermatt, 21% in Interlaken, 11% Zurich, 10% Davos, London, Flims, and other. We have a solid equity base, slightly increased from 40.5 to 41%. LTV is 47.1. We also had steady growth in the rental income due to rotation in the retail. We replaced some retailer with a more high-end retailer with higher rent, and so we have still a lot of potential. Infracore, we own 30% of Infracore and 50% of voting rights. The portfolio is CHF 1.3 billion, 47 properties, including the development project. It's CHF 59.6 million revenue, CHF 56.8 EBITDA. A total of 206,000 sq m. We increased the footprint with the construction of, for instance, the Genolier Innovation Hub. The LTV is under 50% also. This is our portfolio with the last addition, the Genolier Innovation Hub.
Infracore is a leading healthcare infrastructure platform. I think that with the positive interest rate, we will have opportunity also to grow in the public market because the public hospital have been able to finance their investment with very low rates in the past, but this period is over. There will be market opportunity for Infracore. We also work a lot of decarbonization, and we want to decrease the ecological footprint and focusing on energy management and saving. By canton, we are in canton Vaud, 28%, Zurich 20%, Geneva 17.5%, Ticino 12.6%, and Valais, Fribourg, Aargau, Solothurn, Bern, Schaffhausen, and Neuchâtel. An increase from 2018 from CHF 852 million market value to CHF 1.3 billion is due to increase of the square meter, the footprint. It's not an increase in the price per square meter, but an increase of the number of square meters.
40.5% equity, LTV 48%, and a very stable rental income. The rental income will increase in the next year with the Genolier Innovation Hub, who will produce the full rent potential after three year. Outlook in infrastructure, we want to sell some non-core assets, like we have a hangar on the Sion Airport. We have some also apartments where doctors are located. We will sell some non-core assets. We will build up this service department offering, starting with Domat/Ems. The service department is something that we aim to develop further in other cities. We will, for Infracore, make a capital increase in the short term to be able to take the opportunity in the public hospital market this year, next year. The group performance, the statutory key figure, total income in 2023 is only CHF 15 million. That's all the dividend income from infrastructure.
We make a net loss at the statutory level of CHF 8 million. We have a total asset of CHF 800 million. That's the book value of the asset. The market value of the asset are over CHF 2 billion. Interest-bearing debt is CHF 143 million. Total equity is CHF 549 million. Income statement. The consolidated income statement is not very representative in an investment company since we have a lot of also minority investment. We decreased the revenue due to the consolidation of Réseau de l'Arc and no M&A transaction that affect the P&L. The consolidated turnover is CHF 953 million, net CHF 833 million after the deduction of the medical fees, the doctor fees. EBITDA, CHF 119 million, 14.4%, EBITDA CHF 40 million and after depreciation and amortization, we are in Swiss GAAP, we are not in IFRS, so we depreciate and amortize.
We don't do impairment like in IFRS. We have a negative EBITDA of CHF 21.5 million. Balance sheet, total equity is CHF 538 million. Total balance sheet is slightly same as last year with CHF 1.8 billion. 29% equity and 54% leverage ratio. For the conclusion, I'm going to hand over to Fabrice again, who's going to drive the company since the 1st May 2024. For my part, I thank you and we will take question after Fabrice completion.
Thank you, Antoine. I'm really looking forward to become CEO of AEVIS VICTORIA. I think it's very important for you to know that as a board member of Swiss Medical Network on one side and as a board member of Michel Reybier Hospitality, I have the pleasure to be in touch with all managers of the group. I know every project, thanks close collaboration with Antoine Hubert on one side and with Michel Reybier. That is to say that it won't be an observation phase with the official start in May, and I'm already part of, if I take the example of the cost measure that were already implemented. It's very important for me that there is a continuity on one side, very close collaboration with Antoine, with the clear goal that we want to reach better results in the health sector.
It is important for me to precise that we have made very important investments, Genolier Innovation Hub and in our integrated care project. It got into something that it's on this base that we will reach new levels. For the rest, the strategy auto update, it's rather continuity, we think that there are many investment opportunities, but only in the field that are important for us. I would like to mention that our ambition, it's not just about bricks and mortar, but about the digitalization of the integrated care model. It's the reason why our participations in Well and in Benecura are particularly important for us. For example, we have an own app for our VIVA members. It's something that will create value.
We are quite convinced of this because we are convinced that for the rest of the health sector and business, there is on this integrated care way, and we would like to be not only the first one, but to have a pioneer role in that field. We are really looking forward to develop our projects. It's something also very important for me to work very in a very close way with our main shareholders, and I'm looking forward to answer your questions. As I said, we have a very promising start in this year, and that we know that we have other measure that we have to implement and in order to reach the results or the margin that we had in the past. Thank you for your listening or your attention, and I think that's now the start of the Q&A part. Thank you.
Thank you, Fabrice.
Sorry.
Ladies and gentlemen, if you would like to ask a question, please press nine and star on your telephone keypad. The first question comes from Baptiste de Leudeville, Kepler Cheuvreux . Please go ahead.
Hello, Fabrice. Hello, everyone. Thank you for the presentation. My first question is on the topic of debt and financing. You have around CHF 1 billion debt sitting on the balance sheet. It's possible to have a decomposition of this debt according to holding and the companies? I would like also to know if there is any covenants on the debts of Swiss Medical Network, and what are your targets in terms of LTV for the infrastructure businesses for me to more assess the risk on that. That's the first question. You can answer it, and I will follow up with other questions if you like.
Yes. Thank you, Baptiste. In the infrastructure company, both Infracore and Swiss Healthcare Property. Infracore is not consolidated, Swiss Healthcare Property is consolidated. In both company, we have less than 50% LTV. Based on the total portfolio, that means for Swiss Healthcare Property, we have some CHF 430 million mortgages debt. We have CHF 250. We have this revolving credit at Swiss Medical Network. It's a maximum CHF 250. We also have leasing at the Swiss Medical Network level, a total CHF 300 million. The net debt at Swiss Medical Network at the end of 2023 was around CHF 160 million. At the holding level, we had CHF 110 million bank debt at the end of 2023. That's it. That's the decomposition of the debt. The Infracore debt is not consolidated and correspond to this 47 or 48% of the portfolio.
Thank you. Regarding, you say you're still in investment phase. You want to continue to invest. You see market opportunities in different several fields. You also need to implement globally in Switzerland your integrated care model. What's going to be the way for deleveraging? I understand that while the first obvious way would be a further deconsolidation of your participation in Swiss Medical Network in the next years. Can you confirm that?
Yeah. As we said, as AEVIS, we want to be mostly focusing on large minority shareholding. We plan to decrease our shareholding in Swiss Medical Network from 80% now to some 40% in the three next year. It's going to be done with a strategic investor, as we did with Visana. We don't want a pure finance investor.
Long-term investor in healthcare. We plan to slightly decrease our participation. Also, the financing in Swiss Medical Network will be in the ambulatory service with more equity. We will have a partner that will invest in this branch, SMN Ambulatory Services, strategic partner, like a provider or a subcontractor, t hat's for the healthcare branch. We do not exclude also further capital increase as we did last year with Villars appetite group. Probably in the next three years, it's going to be a mix in a primary emission at Swiss Medical Network and secondary placement. That means capital increase and also AEVIS selling some shares. We are in discussion with several potential strategic partner for this. On the hotel level, as we said, we focus on consolidating what we have now. We will make some assessments, especially with the land.
We are not going to build all the land that we have at Swiss Hotel Properties SA. We are developing project, and we are going to sell the land with the project. Also, the service apartment, we plan to sell this service apartment. In Zermatt, we know that there is a very strong demand for such product. That's how we are going to finance. Also, we do not exclude to make a capital increase at the holding level. Of course, we will not do that at the current share price because we think that it's heavily underestimated. It would be done only when the share price will closer than the net asset value, the sum of the parts of the company.
Thank you. Last question on dividends. You do not intend to pay off dividends this year, if I'm not mistaken. Should we expect that you will stop to pay at least temporarily for the next, let's say, two, three years, dividends?
We pause for this year. For sure, with the higher interest rate, we want to keep the most cash possible within the company, and we will analyze the situation further. The idea is not to pause for several years, it's to pause as long as it's needed to be in a strong position. We will focus also this year with now the new interest rate curve to have longer maturity in the financing, in the mortgages. For instance, we started already in December 2023 to fix some mortgages. By Infracore, we fixed some mortgages on seven years at 1.7% in December. In January, the long-term interest rate went up. Now since the Swiss National Bank cut the rate, they are descending. We will move further to have more long-term interest rate to be on the safe side.
Thank you.
At the moment, there seem to be no further questions. There are no further questions from the audience, so I would like to hand the floor back for closing remarks.
Thank you very much for your attention, and as you've seen, we will be more person involved in the management. We will be more than happy to make a one-to-one meeting with interested parties. Me and Fabrice, we are already available, since now, even if formally, Fabrice is starting on the 1st May. He's in the board of director of the two main subsidiaries, so he can also talk. Of course, Michel Keusch will be available since the 1st June 2024 to also have meetings with potential investor, existing investor. We want to really increase the relationship with our investor, with the market in the following months. We will also organize a capital market day, probably in the fall in the Genolier Innovation Hub. Thank you, everybody, and have a nice day. I'm looking forward for further contact. Thank you.
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