Ladies and gentlemen, welcome to the Infracore SA Half Year Results 2026 conference call. I am Moritz, the conference call operator. I would like to remind you that all participants will be in the listen only mode, and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and one on your telephone. Participants in the webcast can ask written questions through the Q&A button in the bottom left corner of their screen. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Eric Frey, CEO. Please go ahead, sir.
Good afternoon, ladies and gentlemen, and thank you for joining us today. I am Eric Frey, the Chief Executive Officer of Infracore, and I am joined by our CFO, Nicolas Schmid. It is a real pleasure to welcome you. That was a special moment for us. It is our first result presentation as a listed company. We will both be happy to take your questions after the presentation. Infracore is the Switzerland leading hospital real estate specialist. We have a specialized platform with 49 property in 20 prime number location in Switzerland, also in the 11 canton in the three language region from Switzerland. Also, at end of July 2026, the portfolio value is CHF 1.5 billion. We have a net [LT4] for end July after IPO for 34%. We expected annualize year an FFO year for 7%.
The portfolio is very diversified with high quality property well situated in the best locations. The highlight in the first half year 2026 is first the initial public offering, IPO. Infracore successfully completed the IPO on 19 July 2026, which marked the beginning of a new era in Infracore history. Gross proceeds for IPO amounted to CHF 200 million, and the proceeds will be used to finance the sale and leaseback pipeline and development project. The second point is the acquisition of the See-Spital. The acquisition was completed on 2 July 2026, and it is an important milestone in Infracore history. It is also the first sale and leaseback transaction with the public hospital. The See-Spital will continue its medical operation under a long-term lease agreement.
Now, on the strong financial performance for the first half year 2026 is an income rental up 5.3% compared to last year. EBITDA up 3.6% with an EBITDA margin of 90.4%. The portfolio value, when I mentioned before, rose to CHF 1.53 billion after the acquisition of the hospital. Now, I give the place to Nicolas to have more information about the financial statement.
Yeah. Thank you very much, Eric, and good day also my side. It's also a pleasure for me to welcome you on our first ever conference call as a stock listed company. Let's start with the financial income statement. As Eric just mentioned, we have a quite strong performance in the first half of 2026, with revenues reaching nearly CHF 36 million, and that's up 1.8% or 5.3% compared to prior year. It's mainly driven by prior year acquisitions, completed constructions, rental increases from staggered rental contracts, as well as indexations. Meanwhile, our cost base remains stable, in terms of the real estate expenses, but also in terms of the other operating costs. Our EBITDA reached a new all-time high of CHF 32.4 million, equaling a EBITDA margin of 90.4%.
When we exclude the extraordinary items from a loss of a sale of a non-core property, the EBITDA will be at CHF 33.1 million or 92.1%, which is even a higher margin compared to 2025. You have to keep in mind here that we haven't done revaluation of our property. We did that on an annual basis in the past, but from 2027 on, we will do, as other stock listed companies, evaluation every half a year and also in the half year report then. When we go down the EBIT margin, after the EBIT, we have the depreciations, which remained unchanged compared to prior year.
The financial result, which was a bit lower the expense to a lower roughly CHF 200,000, and that's mainly due to a bit lower volume of roughly CHF 80 million, an average weighted volume, and also lower interest rates of roughly five basis points. Income taxes, they are in line with prior year. Currently, we do have a average tax rate on group level of roughly 15%, and that gives us the profit for the period of CHF 22.8 million, which is up 5.5% or CHF 1.2 million. The free funds from operations, they are at CHF 23.6 million, or also up 3.5%, or CHF 800,000 compared to prior year. I would like to talk now a bit about the breakdown of our rental income, how it evolved over the year compared to the prior year.
We have the rental income from prior year, which was at CHF 34 million. Then we have the acquisitions, which occurred in 2025. That's the acquisition of Spital Zofingen in April. We have now in 2026, six months coming in from Zofingen instead of three months last year, which have an impact of roughly CHF 700,000. Then we have the segregations from contracts, because we do have some contracts in place with staggered rental increases, which will reach the contractual rent over the upcoming years. There we have Zofingen as well, as well as the Generali Innovation Hub and the extension in Zurich at the moment, which do account CHF 4.6 million of deviation. Then we have the completed transactions. We completed several transactions, constructions in late 2025.
That is mainly in the canton of Ticino, the extension of Clinica Ars Medica in Gravesano, for example, or a medical center in Bellinzona. That altogether summed up of roughly CHF 900,000 as additional rental income compared to prior year. Then we have the indexations. As you know, we do have most of our rent contracts are indexed, and on an annual basis, we do adjust the rental income on the Swiss Consumer Price Index. Then we have some other third-party changes that are mainly third-party tenants in Geneva, for example, which have had a positive impact there as well. Then on the other side, we had some disposals in 2025, which now no longer contribute revenue to our income statement. That was the two annex buildings in Sion.
One was a medical center, Gare 27, and then a hangar at the airport of Sion, which was previously used from Air-Glaciers for medical services as well. That altogether leads in this 5.3% increase in our rental income to CHF 35.9 million in 2026. Now let us take a look at how our free funds from operations yield has evolved. You can see there in the chart on the left side of the screen, the total revenue, and then the annualized yield on operating gross value, and that is at the moment at 5.5%. This gross asset value does include the investment properties as well as also clinical impact, which is currently in development projects. Then we do deduct the rental expenses as well as the other operating expenses and to get the EBITDAR of CHF 32.4 million.
That is even an annualized yield of 4.9% to the gross asset value. When we now deducting the loss on disposal I just mentioned, as well as the financial result and the current income taxes, we do get the FFO of CHF 23.6 million. That is an annualized yield over the net asset value or the shareholders equity as at the 30th of June of 7%. That is the breakdown of the free funds from operations. Now I would like to talk a bit about the balance sheet. As you know, as Eric mentioned, our IPO was at July the 9th, so just right after the half year.
That is the reason why we do also publish this year extraordinary, the balance sheet as at the end of July, to give you a picture post IPO and also post the acquisition of See-Spital, because we believe that the pictures changed quite significantly in terms of the balance sheet after the IPO, and that is the reason why we do also publish that. So let us begin with the asset side, and there for sure, the most important part are the investment properties. There we compare to prior year, at the end of December, we had the sales of two non-core assets in [Polaton] as well as in Sorengo. That is in the canton of Ticino. Those two occurred in June 2026, just prior to the IPO.
And then also just prior to the IPO at the beginning of July, we had the acquisition of See-Spital in Horgen, which was at CHF 112 million. Then we have the investment properties at the end of July, which amount to in total of CHF 1.53 billion. Cash and cash equivalents, for sure, due to the IPO, with the proceeds from the IPO, our cash balance is significantly higher compared to June and also compared to December 2025. That is mainly due to the fact that we have not yet used the proceeds to acquire the planned sale and leaseback transactions. On the other side of the balance sheet, you can see that the shareholder's equity is really strong. We did have, even before the IPO, an equity ratio of nearly 44%, and then after the IPO, the equity ratio was now over 50%, with 50.5%.
When we take a look at the NAV per share, or the shareholder's equity per share, as at the end of July, with CHF 56.66 per share, we see that we do have currently a discount to our stock price of roughly 12% compared to stock price as it was the day before yesterday. So that is a 12% discount we are having at the moment when we compare to our balance sheet, the net asset value in our balance sheet. When we take a closer look at the liabilities now, we see that our financial costs remain low, and we do also have a very broad diversification when it comes to the different lenders. We do currently have 14 different lenders, and that is different banks as well as other institutions.
We do work together with all major banks in Switzerland, like UBS, Raiffeisen, and also many canton banks, which do know the local business at its best. You can see also in the chart that we do not have any lenders risk because the largest lender does count only for 22% of the entire financial liabilities. When we take a look at all of the different financial debt structure, we have mostly mortgages, which are secured by our real estate. Then some smaller debt, but that is not that material. Then we have the net financial liability, as you can see in the chart. It is post IPO. It is now at CHF 520 million, and at the end of June, we were at CHF 604 million.
That gives us a net loan to value of 42.8% at the end of June, which is significantly lower already than we had at the end of December with 44.5%. Due to the IPO proceeds now, our LTV even more decreased to now 34.1%. You can see also the average interest rates remained nearly unchanged. At the end of July, our average interest rate on third-party debt amounts to 1.6%. To finish things up in terms of our financials, I would like to talk now a bit about our financial outlook. With the current portfolio in place, including the See-Spital acquisition which we did, as I said, in July 2026, the sale of Obach Park, as well as Villa Meridiana in Sorengo.
And without any other acquisitions or divestments, we plan to achieve a rental income of CHF 74 million, which is significantly higher compared to prior years. It is roughly CHF 8 million higher than prior year. And also the free funds from operations, we are expecting at the moment CHF 47 million at free funds from operations. And our board of directors do expect a distribution for 2026, which will be in between CHF 45 million to CHF 46.7 million. And that would imply a current dividend yield of more than 6% to our current share price as we had it yesterday evening. I would like to just talk about also some drivers for future potential growth. There are three things we have to keep in mind here. First of all, is the organic rental growth.
As I said before, we do have contracts in place with staggered rents that they will contribute to some organic growth in the future. Furthermore, we do have still ongoing constructions, which will lead into rent increase or new rental contracts when they are completed. Then last but not least, also the annual indexations according to the Swiss Consumer Price Index. Then we do have our development pipeline. With the different projects in our balance sheet, as well as also some others which are not yet in the balance sheet. We do have a pipeline of, in total, CHF 149 million in the balance sheet. Then last but not least, is the external acquisitions. With the sale and leaseback transactions we do plan, we do have in our pipeline, we can soon achieve further rental income growth.
That is it from the financial perspective, and now I am giving the word back to Eric for an update on the business.
Thank you, Nicolas. The highlight of the business update is, first, the sale and leaseback transaction with the public hospital, See-Spital in Horgen, we have made in Mont [inaudible]. Also, the vacancy rate will remain really low. Last year, in 2025, 1.3%, and this year, as of here, 1.2%. But also the WAULT for 28.6 years. It is important, WAULT with our lease contract we have. The new highly attractive tenant is also an important point. It is the new lease with the Kantonsspital Winterthur, in the place for the Lindberg property in Winterthur to significantly reduce, after the 1st October, the tenant risk and to diversify the tenant portfolio. Furthermore, we have also, when I say before, Infracore is characterized by high quality portfolio in attractive location with the long-term index rent.
And we have also these quality locations who have appraisal controls and valued from valuation for the independent appraisal, Wüest Partner, and this confirms the quality base for our portfolio from Infracore. I give now the word to Nicolas about the data for owned property.
Yes, thank you, Eric. As Eric just mentioned, we do have a portfolio which is really well diversified, also when it comes to the region, as well as when it comes to the market value by property. You can see there in this chart some of our top 10 properties we do have, and you see that over the regions, our portfolio is well diversified across all Switzerland. Also when it comes to the market value, the largest property, that is Clinique Genève in Geneva, does count only for 13% of our entire market value, and all the rest is then split to all the other properties. You can also see that our properties are in top-notch locations. We are not in the suburbs. We are really in the heart of the cities. Our properties are, for example, in Zürich, in Zürichberg, in Solothurn.
It is right next to the famous old town, and also in Geneva, we are in the Champel district. In the canton of Ticino, we are in the best quarters in those cities, like with SeaView, et cetera. What you can see also in the chart in the bottom of the screen, we can see that those hospitals are hospitals since a long time. They have a long-lasting history and have been continuously renovated, mostly by the tenant. Due to the core and shell lease structure, most of these costs are borne by the tenant. Due to the fact that the tenant is overseen by public authorities like Swissmedic, it is in its best interest to keep the property in the best quality.
Therefore, most of our properties really have no CapEx backlog at all, and are in a top-notch location and also in a top-notch quality at the end. Overall, it can be said that we do have a highly diversified portfolio across all Switzerland, everything in attractive locations in very good quality. Now I will give the word back to Eric to talk a bit about our business model, because as we are newly stock listed, we would like to take the opportunity to also talk a bit about our business model and how it will evolve with the sale and leaseback transactions in the future.
Thank you, Nicolas. Our business model is very valid of long-term contract. The benefit of the partnership between Infracore is of one side, of the OpCo side, the hospital operator, who have today, in Switzerland, some difficulty to refinance his building. We see here a possibility to help the operator to finance the building. With them, with access to the capital, the operator have the possibility to modernize the hospital to make expansion, development, acquisition, but also invest in the IT and optimize for the daily business. On the other side, the PropCo, Infracore, as a landlord, have a strong expected in renovation and optimization, and they can give to the shareholder a stable and predictable leasing income with an attractive yield, as Nicolas said before. It will preserve the value and we help also to be diversifying the whole finance.
The benefit is really based off both parties. They give the flexibility for the operator to develop his concept. On the other side, they bring a new model in Switzerland. We are really new in Switzerland, but not in Europe or in other parts of the world. We have now a case study for sale and leaseback, and this case study is the transaction with the See-Spital. The See-Spital first is a campus, and we have the possibility to acquire this campus. It was redeveloped recently, completely full modernization with no significant CapEx backlog. It is our listed regional computer hospitals of the left shore of the Lake Zürich. It is a hospital where it is very established in the region, and we serve more than 130,000 residents and have a strong integration in the municipality, and it is very deeply embedded in the cantonal healthcare planning.
The advantage for See-Spital was clearly to pay back the CHF 100 million bond, which was maturity in July 2026. To help the See-Spital to have a better liquidity reserve and to focus on the healthcare as core competence. For Infracore, we have now a long-term contract with CPI index lease, generating a stable rental income, and it will force Infracore specialist owner of healthcare real estate in Swiss healthcare real estate. It is really a proof of concept with the See-Spital. It was the first bucket for the foundation for 12 municipality. Now we have only as Infracore, we are the landlord for this building today. We see this case study really as first, but not the last as a transaction we will do the next time. Another case study was the tenant diversification we do with the KSW, the Kantonsspital Winterthur.
It is one of Switzerland's largest canton hospital, bucket in the canton Zürich. It is an existing canton hospital who have the necessity to make more space to increase the demand for healthcare service, specifically in elderly care. The advantage for the KSW was to additional space in close proximity for the existing campus, and to have not the necessity to build a new building and also to take off Lindberg Hospital and organize it as geriatric clinic hospital. We have the same advantage like the See-Spital, a long-term lease, CPI indexed lease for generating a stable rental income. It is our public sector tenant with implicit state guarantee, so they reduce the tenant default risk and potentially supporting a lower discount rate with a positive impact on the real estate evaluation.
Now to summarize Infracore for the future, I want to explain what is the possibility effectively to develop the portfolio from Infracore. Now we have in Switzerland 275 hospitals. But the target for Infracore is 139 roughly hospitals, because these excluded all university hospital, birthing center, psychiatric clinic, and rehabilitation clinic. We are looking for the mid-size regional hospital and with the focus clearly of acute hospital, with the opportunity also outpatient center, although other healthcare buildings. But principally, the regional acute hospital is our target. And the investment property needs to be really embedded in the region, deeply embedded in the region, and have all the canton validation and need for the canton in this region. Furthermore, we have all the financial profit very important. But Nicolas can give us some targets, what we need and what we expected if we buy a new hospital.
Yeah, sure. Thanks, Eric. What's really important when it comes to acquiring new hospital is, as Eric said, the location, the status of the property, how the operator works, whether he's really operating the property in a good way. And then last but not least, all the financial perspective. We do a close due diligence from the operator and also in work together with Wüest Partner, all the due diligence of the property itself. And then when it comes to the negotiations of the rental contract, we do have a clear target in mind, and one is the rent cover ratio. It should be at least two times the rent. So EBITDAR should be at least two times the rent. And then afterwards, gross yield. The gross yield should exceed 5% in the contractual rent at the end.
And those two targets at the end, they do define the price we are willing to pay for such transaction. And yeah, that's it. And these are all the investment criteria we have in place, and that with this, we believe we can find the targets in the market, which are attractive for us and also for our shareholders at the end. So, and that concludes our presentation, and we are now open for Q&A. Thank you very much for your attention.
Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Anyone who has a question may press star and one at this time. One moment for the first question, please. And the first question comes from Aaron Guy from Citi. Please go ahead.
Yeah. Hi, everybody. Thanks for the presentation. I wonder if you could just provide a little bit more color on the acquisition market. I know it's been not so long since you IPO'd, obviously, but any update and color on how discussions are going to buy more assets? Has the See-Spital deal sparked more conversations, for example, with public hospitals, and whether you continue to see the motivation for hospitals to sell to you continuing at the moment?
Today, the pipeline is so that we have different contact and different deeper discussion and also deep proposal, but it's very confidential at the moment. We need to say that the complexity in this discussion is between the different, for example, municipality or foundations, doctors, or different part for the shareholder, for this opportunity. It's very difficult to give a schedule, so what come and when come the acquisition.
Okay. Understood. Just following on from that, in terms of looking at the full year property valuation, not wanting to get an exact number out of you, but in terms of just thinking, are you expecting, given everything you know at the moment, for property values to be slightly up, slightly down or broadly flat, given the information we have at the moment, even though there's bits left to run in the year?
Although, again, it's something which Wüest Partner has to do because Wüest Partner does the valuations, et cetera. We do expect that it might be flat and even a bit some increases, a bit of expected, I would say.
Okay. Understood. Just one final one from me. The 6% revenue is obviously pretty attractive relative to other peers at the moment. Within that guidance range of CHF 2.95 to CHF 3.05 per share, what are the key earnings levers that you see in the second half, and any other considerations that the board are going to look at to determine whether you might be at the bottom end or the top end of that range?
It depends on the pipeline, for example, and also the fact that whether we have to have a development project, for example, in place, which could evolve, which could be profitable also in the future for Infracore. When there is something in place which we can do, then we have already a contract signed, for example, for possible development project, then it might be at the lower end. When there isn't something in place like this, then it might be at the high end. But that's, again, something that the board needs to decide when the final figures are out.
Okay. Understood. Thank you very much.
The next question comes from Anne-Chantal Risold from Octavian AG. Please go ahead.
Yes. Good afternoon, everyone. I have some question on the balance sheet. First is on the, if you look at the H1, your receivable, which also include the shareholder the loan you give to your shareholder significantly increase at the end of June, was to nearly CHF 80 million, with a CHF 65 million loan that you give to shareholder, which was much lower at Q1. Then we see that it went down in July, probably roughly around CHF 24 million. But was it not the idea that you would close after the IPO, that you would close both the loan that you give to your shareholder and as well the loan that you receive from the shareholder? And can you confirm that the CHF 55 million that you received has been repaid by the end of July? That's for one question. The second one was on the dividend payment.
I see that you expect to pay your dividend CHF 40 million for the year 2025 in September. Is it planned that going forward you pay your dividend only in Q3, or is it a one-off this time because of the transaction? And maybe again, also a bit more on the pipeline of sale and leaseback transaction back around the IPO you had mentioned you had the two opportunity. One, yes, See-Spital has been completed, and then you were mentioning a potential larger transaction. So maybe could you comment on how this is developing and the current state on this?
Okay. Thank you very much for these three questions. I will take the first two ones, I guess. First of all, to the balance sheet. Debt receivable from the cash flow, you have to keep in mind that on June the 30th, we were not yet listed. And we have already received then, at this time, some proceeds for financing the See-Spital transaction. And that's then due to the fact that we do have in the group of AEVIS some cash concentration in place, the money was transferred, and then right afterwards back to us to finance the See-Spital transaction.
That's the reason why it was up, and then you can see also in the balance sheet of the end of July, you see that the other receivables are then significantly down again to the ordinary levels as they were before, like for example, at the end of December 2025. And when it comes to those repayments of those shareholder loans, as said on both balance sheet sides, I can confirm that the CHF 55 million have been repaid, as it has been disclosed in the prospectus. And then the active side on the cash flow, the asset side, that is planned that AEVIS will repay the remaining amount. It has been decreased over the last couple of weeks, and it will be repaid in the next couple of weeks at the end.
It will be at the end of December it will be fully repaid, and I guess at the moment I expect that the repayment will be done in the next couple of weeks. The second question was regarding dividends. You have to keep in mind that we have only had two of three shareholders before the IPO, and it's a common procedure when you're not listed that you do the dividend payments, for example, in summer or sometimes during the year. That's the reason why we have planned it for the 1st of September. In the future it will be the other way, as we will no longer be like this. It will be paid as usual, as it is usual for all the stock listed companies shortly after the general assembly has decided over the dividend. To the third question.
Yes. Thank you for your question. I have the same answer like before. Clearly, we are working on diverse discussion and opportunity, but it's really difficult to say more. What we can say, if we have something to inform, we will make an ad hoc communication at this moment. At the moment it's very difficult to say more because the discussions are ongoing.
Thank you.
We currently have no more questions on the phone, so I would like to hand the conference back over.
Thank you. We have received the written questions from Joel Knupp from ZKB, who asks, "In your Q1 2026 report, you revised your rental income guidance for 2026 upwards from CHF 71 million to CHF 74 million. At the same time, you revised your free funds of operations guidance for 2026 downwards from above CHF 48 million to approximately CHF 47 million. What developments led to this upward revision in top line and downward revision in free funds from operations?
Yeah. Thank you very much for this question. Yeah, first of all, to the top line. We for sure have now a clear picture on how the year will evolve. In the first quarter, you have to keep in mind that we haven't had the clear view about this transaction of See-Spital, for example, about how the rent will be. Furthermore, also, Kantonsspital Winterthur, that was also still in negotiations a bit during that time. In addition, we also had the thing that we were also in discussion regarding those two sales I mentioned before, which have been done before the IPO, and that was due to the IPO we did that because of Lex Koller, for example, for Villa Meridiana in particular, and that's the reason why we now have a way clearer view over our top line.
When it comes to the free funds from operations, the small adjustment there compared to the first quarter is mainly due to some clear view as well, as at the end, it's a bit of a rounding because it's CHF 1 million, and that's more or less a bit of a rounding because we do now have way more clear picture. Also, it comes in terms of the costs, for example, because as you know, we do have now a payroll in place and that changes all of it. We do have also some costs which are related to stock listed company, have some different costs which you don't have as a non-listed company, and that altogether marks up in those very small revision, but at the end, it's more or less a rounding.
Then we have a second question from Joel Knupp. In financial year 2025, losses from rent reductions amounted to CHF 3.2 million. In H1 2026, losses from rent reductions were only CHF 0.1 million. Where does this decrease come from? Or put differently, why are losses from rent reductions only shown in the full year results and only marginally shown in the half year results?
Yeah. That question is related actually to the prior year, because in prior year, the CHF 3.2 million, they mainly came from three rent reductions we granted to three different hospitals at the amount of CHF 3 million. These rent reductions were granted due to major construction work which has been done on those places. For example, as I've mentioned before, the extension in the Canton of Ticino with Clinica Ars Medica. That is a huge extension, which as you can see in our breakdown of the revenue, will contribute quite a bit of a revenue in the future. That has disturbed the operations of the hospital quite significantly in terms of noise and also in terms of the construction works, et cetera, and all the things that are coming referred if we're doing construction at the end.
That's the reason why we have granted those rent reductions at the amount of CHF 3 million to those three clinics at the end. The ones we have, which is left the CHF 200,000 and the CHF 99,000 something for this half year. These are normal rent reductions which have been granted to different parties at the end.
Joel Knupp is also asking how the statement, the existing major shareholders, MPT and AEVIS, remain invested, has to be understood. Does that mean that none of those parties will exit their position following the end of the six months restriction period in January 2027? Are there any guarantees tied to this statement?
We can't talk for our shareholders for sure. What I can tell you is the following, that both parties have mentioned it on different occasions. AEVIS, for example, on many occasions in the last couple of months, that they are not willing to sell the shares. So does MPT. They are both very happy with this investment, and it has gave them, in the past, quite well dividends, paybacks. I don't think, from my personal view, is that neither AEVIS nor MPT will exit Infracore in the next couple of years. Because for both, it's really a key investment. It is one for AEVIS and also for MPT. When I talk with the guys from MPT, they mention Infracore's properties always as their two crown jewels at the end in their portfolio.
I don't really believe that they will exit this investment in the near or even the mid-future.
The same applies.
Then another question from Joel Knupp from ZKB. Assuming Swiss Medical Network acquires Clinica Ars Medica, what role would Infracore play in the deal? Could a sale and leaseback between Swiss Medical Network and Infracore follow, or would Infracore and Swiss Medical Network prefer to keep this deal separate?
We, as Infracore, stay neutral. We have, as a specialist in infrastructure hospital, we are neutral, and we are here to help a transaction. If all points, Nicolas summarized before, have accepted for us, then we will help. But we are not looking for one or the other tenant. Important is the quality for the location, the quality for the tenant, and the finance economic aspect were really important for us, and we stay so neutral.
Then the last question from Joel Knupp for the moment. Since you are talking about an attractive valuation of the Horgen campus, do you expect valuation gain from the sale and leaseback transaction of See-Spital Horgen?
That is something which has to be seen by Wüest Partner at the end. I believe that there is some potential in place there for the mid-future, as in the midterm again, because as we have mentioned on other occasions, we have there a quite attractive valuation that is also said in this presentation. Also when it comes to the yield, it is also with at the end of the contractual end at 5.7%, and that is quite attractive. I do believe that in the future when everything evolves there, we will see also some upward valuations there.
That is all the written questions for the time being. We give back to the operator for questions from the call.
Yes, we do have one more question by phone coming from [Ozan O.] from Baader Alpha Value. Please go ahead.
Yeah. Hello. Thank you for taking the questions. First, the question is about the LTV ratio, and the reconciliation of potential opportunities financing on top of pipeline financing in the future. The question is, according to the near 35% of LTV ratio currently, at which point you would consider a maximum at your current methodology for the LTV ratio? Would it be 42%, 45% before landing back to 40% in the near future?
At the beginning, the line was a bit interrupted, but your question was the how high.
Maximum LTV ratio. Yeah.
The highest possible LTV ratio. For sure.
Yeah.
The highest possible LTV ratio is roughly in the high 40s, I would say. But we haven't been there in the last couple of years so far. I think that when we are in the 45% region, that's the top level there.
Okay. Thank you for that. The second is, how was this See-Spital financed, through the percentage of debt or capital on your side, please?
See-Spital Finance.
See-Spital Finance. We do have a club financing, with two cantonal banks, which are involved in this transaction.
Okay. Great. And one more about maintenance cash out, including CapEx and OpEx. Would you please reiterate the figure of 0% to 5% per annum of the full gross asset value? Was it the right figure?
Yeah, that's the figure we have communicated in the past. Yes.
Okay. And the bulk is including in the P&L, right?
No. At the end, what you have to keep in mind here is two things. With the core and shell lease structure, Infracore does, at the end, only pay the insurance fee of the property, as well as the income tax, as well as the real estate taxes, pardon. And real estate taxes only occur in Switzerland, since it's a cantonal tax, only in certain cantons. For example, in Zurich, where See-Spital is located, we do not have a real estate tax. So the costs there are lower than in other cantons. So at the end, it's only the real estate insurance fees. And then we do pay only a very small amount of maintenance fees for the different locations. And there we are talking about a few hundred thousand Swiss franc per year for the entire portfolio.
That is mainly, for example, for the elevator, the normally service fees, et cetera, and the cleaning for façade, for example, something like this. As I have mentioned, it is really quite minor. Then you have the 0.5% we have mentioned in the past. It is mainly maintenance, it is CapEx, which is then activated onto the property and is also reflected in the valuations of Wüest Partner already. That means, for example, a replacement of windows, because that is something which has to be paid by Infracore because it is the core of the façade as well as the windows and the heating system, for example, that is on the balance sheet of Infracore. That is also already reflected in the valuations of Wüest Partner. For example, let us make a short example. We do have in the valuations that the windows need to be replaced in 2030.
When we do that in 2030 at the exact same cost as it is in the valuation, due to the fact that it is a DCF valuation, center is paribus, the value of the property will increase by exactly that amount we have invested. That is what we meant with those CapEx. They fluctuate during the years. Because for example, windows, you do not need to replace that often. Maybe sometimes in one year, you have to replace the windows for a larger clinic, then next you have to do nothing when it comes to such investments. Then the year after, you do, for example, some heating system replacements, which then also last for 20+ years at the end. That is what we have meant with the 0.5% of CapEx.
They are really activable onto the balance sheet and also have an impact on the market value of the properties.
Okay. One more about Lindberg. Did the change in the new tenant, will change the potential tenant of the CHF 30 million CapEx to be done for assisted living project?
That is two different projects at the end. What we have here is the fact that the new tenant, Kantonsspital Winterthur, they have the option that when we would do that, they could buy those plots there. That is possible. The idea there is that currently we are also looking into it, that we do sell it before it really is constructed. That is also an option to a company which is specialized in such elderly care and assisted living facilities.
There are currently no more questions on the telephone.
There is one more question from Joel Knupp from ZKB, who is asking how much rental potential in million CHF is left from future staggered rent increases as of now. Is this not a part of losses from rent reductions?
No, it is not part of losses from rent reductions. Those are loss from rent reductions are really only losses from current rents, and we do grant a rent reduction. For example, when we do grant a rent reduction to a doctor because of the fact that his doctor's office is renovated, for example, for three months, then we obviously do get a rent reduction. When it comes to those staggered rental increases, there is still some potential on it. I would say it is roughly at. Just let me quickly check that because just to keep in that I do not give you a wrong number here. Just one sec. Or maybe we can answer this question later on. But I would say it is roughly about CHF 4 million-CHF 5 million at the end. It is more.
It is more than CHF 5 million-CHF 6 million at the end.
There are no more written questions for the time being, and as I can say, also no
That is correct. As there are no further questions, I would like now to turn the conference back over to Eric Frey for any closing remarks.
Thank you for your attention and for your interest on our company. We stay with Nicolas Schmid to your disposal if you have any other question and you need to see more or to have more information about the company. We thank us for, you have something else?
Yeah, just regarding last question. I just did the calculations because my Excel was a bit stopping. It is based on the current contracts we have in place over the next couple of years. It is CHF 5.6 million of additional standard rental increases, which will be coming in the next couple of years. There we are talking about roughly four to five years. Five years, sorry. Five years. In the next five years, it will be CHF 5.6 million. That is spread over the coming years. So it Yeah.
Perfect. Thank you very much, Nicolas, for this last answer. We thank all for your attention. We hope you have a good afternoon. Thank you.
Ladies and gentlemen, the conference is now over. Thank you for joining. Have a pleasant day. Goodbye.