Great. Thank you. A warm welcome to all of those here at the PRIME tower and of course also to all of you who have joined us online from home or from another office. I would also like to welcome the colleagues from the Board who are here today. And I'm particularly pleased to introduce our new CFO, Marcel Courcher.
Let me just start with a few highlights. What did we do in the 1st 6 months? Well, we were able to grow in construction, 1.1%, increase in the property portfolio and 6.7% for Swiss Prime Science Solutions, which has now led us to CHF 3,200,000,000. And another important point is the decrease of vacancies, which was one of our objectives that we mentioned at the beginning of the year. We wanted to decrease below 5%, and we've achieved that.
Our current vacancy rate is 4.7%, which is a decrease of 0.4% compared with the end of last year. Compared with mid-twenty 20, we had when we had a vacancy rate of 5.4%, we have improved by 0.7%. In terms of square meters, that means that we have reduced vacancies of around 10,000 square meters. Financing, well, we still have a very strong equity ratio of 47.3%. And don't get the dividend payout of €255,000,000 which took place in March.
LTV is at 42% with a tendency to move further south, so to speak. And that is also one of our medium term objectives. The results are going to be presented in more detail by Marcel Kucher, including Tertianum and also excluding Tertianum. And so these are three items that have changed considerably. The profit from the sale of Telsianum, which is not going to be incurred this year.
That's one element that has changed. And then we also have The sales from assisted living, which is the care business, which has changed. And I think if you know our structure, you can quite easily understand the change here. And then there's been another change, which is rentals, rent income from Tatiana for the apartments for from older people who have rented apartments from TESIONEON, which incurred rents that were also included in our top line before. So Marcel Courcher is going to explain how this now can be presented.
So we're deducting those items. And then looking at the comparison of operative performance, we can see an increase of 6% to EUR 212,000,000 42.3 percent to EUR 163,500,000 in terms of profit. In 2021, we were still impacted by the COVID pandemic. And as we heard, we are not quite out of the woods here yet. We So rent waivers of CHF 3,100,000 in 2021 and Also, some sales decreases based on Sales related contract from parking, which amounted to €2,400,000 which brings us to a total of €5,500,000 This was mainly based on hotels, particularly city hotels, which have sales related components.
The rent income in the 1st 6 months was very positive, 98% in rent collection. And that shows that the measures taken by the government have been successful and that our tenants we're able to resort to a very strong internal balance. So that was the introduction on my part. I am going to come back later with an outlook. And now it's over to Maso Cuha.
Thank you for the friendly welcome. I'm happy to be here In my new capacity as a CFO for the 1st year, presenting the first half year figures to you, I'm Particularly pleased to see some well known faces in the auditorium. We're looking back on very strong figures in the first half year, which I would like to give you Some details about. Ronnides Arndt mentioned it before. One of the key components is which makes like for like comparison A little difficult, and we want you to see the underlying operating development.
So let's begin with the operating income. As Rene said before, we've got Assisted Living that didn't apply anymore in the first half year of twenty Q1, and we have $11,000,000 of rent that Tercian took in That is no longer there for on a like for like basis. We are based on operating income of around 341 €1,000,000 on a like for like basis, and we increased it by a respectable 6.3 percent to around €360,000,000 All components contributed to this letting, an increase of around 2% on a like for like basis From €209,000,000 to €213,000,000 Development has been rather strong, especially with our project in Geneva. Real Estate Surfaces, more or less flat, bearing in mind that there is some seasonality depending on the how you calculate the auxiliary costs, but the situation has remained relatively even and flat. Retail, very gratifying, an increase in excess of 5%.
I'll say more about this later despite Several weeks of lockdown for the entire retail business and gastronomy restaurants were affected for a longer period of time, which shall cause more loss. And yet, we have growth of more than 5% and quite impressive growth of 7 point £5,000,000 in the asset management business, which is a plus of almost 60%. We'll give you more details about that in a minute. This positive increase on the revenue side was reflected very powerfully in EBIT and EBIT margin over on the right hand side. Again, you need to adjust that, the €204,000,000 of sales proceeds in the first half year of twenty twenty and for the 2 months of contribution from Tocyanum.
So on a like for like basis, we're at CHF154,500,000 which was increased by almost 37% to CHF 211 CHF 1,000,000, half of it, around half of it is attributable to proceeds from sale and the other half due to underlying or operating performance in the first half year. I'll show you more about this later on. Moving on to profit without revaluations and deferred taxes, The positive effect here is even larger, which is due to more favorable financing terms. Financing rate went down from 1% to 0.9% and the expenditure we had caused a more considerable increase. And finally, return on equity, A great leap there, especially on a like for like basis, bringing us to 8.5%.
Our guidance was between 6% 8% due to our strong operating figures, we are at the upper end of our guidance range. And compared to the previous year, We had a strong operating improvement. These were some of the highlights. Let me hand it back to Renee for more details, and I'll be back in a minute.
Thank you. So that was the comparison of 2020 2020 1 half year results. And now we have some deep dives in our business. Let's start with Real Estate Business. We spoke about vacancy rates earlier.
We were able to reduce those by 10,000 square meters. And the total that we were able to let or re let in the first half of twenty twenty one was 47,000 square meters, some at higher rates. We've already communicated that Google is going to be the new anchor tenant of the redevelopment project at Mullerstrasse in Zurich. And we Also have some successful rentals in Isle de Paris Rouge with CMS and West Hyve as anchor tenants. And we also have some additional reservations and expressions of interest, which will lead us to a very high vacancy to rate.
And well, 10 days ago, we were able to sign a new Rental contract with Lonza for our project in Stuki. So another building of the finger dogs that we have been able to rent out. What about sales, we were able to purchase an attractive plot in Zurich for logistics use. We'll get back to that later. In terms of purchasing existing buildings, we are Somewhat conservative at the moment, just we recently made an offer for property nearby.
And we just wanted to pay half of what was eventually paid for the property. So if that would be yield of 1.7% net. And Needless to say that that's not interesting to us, and that is why we will continue to invest into our own developments. We have sold another property in Zurich Stadelhofen. It was strictly speaking one property that we sold in 2 parts.
1 was sold at the end of 20 20. And now we have sold the 2nd part, and that will be in the books of 2021. We've also sold another building in Plond Le Wat in Geneva, namely Building E, which we sold to Hans Wilsor Foundation. Building A is currently now sold in condominium ownership. And here, we have a rate of 85% already.
So now here's a bit of an overview because maybe it was a little confusing. And here you can see 2,070 Building C was sold to Hans Wilsdorf Foundation C and D, in fact. And in March this year, we sold Building E. Building A is being sold in condominiums, And we have currently sold 85% of that, and Building B at the center here is going to be kept in our portfolio for Letting. Now, The property portfolio is summarized here.
First of all, our like for like rental income has been increased, as Marcelo mentioned earlier. And the revaluations are also interesting, not the 144 this year. But when we Started a year ago, retail bashing, office bashing, all these things were happening and there was a negative revaluation. And at the end of 2020, we were up at EUR 200,000,000 again. So that was a difference of a 0.25 €1,000,000,000 for the same portfolio over the space of just 6 months.
That's just That goes to show how crazy the COVID situation was. And the market then recovered towards the end of the year. You may remember that in July or August when we sold the lot center retail building at an attractive rate. This gave some impetus to the transaction market and returned us to the pre COVID level. Now comparing this with the 2nd lockdown.
Well, during the 1st lockdown, the market was in turmoil. There were no transactions. Nothing was happening. And during the 2nd lockdown, however, There were no effects at all. Transactions continued.
Some were even able to achieve higher prices. So the market adjusted and got used to the situation. There was no turmoil anymore. And this is also reflected in the revaluation of EUR 144,000,000. And of course, the net yield on property is very positive, which continues to be 3.2%.
Despite the upwards revaluation, the net yield remained the same. And this was due to the reduction of the discount rate, primarily from office buildings in prime locations, I think once again you can say location, location, location. The better the location, the higher the potential for a positive revaluation. I've already mentioned the Vacancy rates, I'm not going to say any more about that now. It will come as no surprise That's our properties are still in the same location as they were a year ago.
But let me just remind you that In the medium term, we wanted to make some changes to the use types. We wanted to shift retail to 20% by increasing office and logistics infrastructure. I'm showing this slide to show you that we have compensated already. Infrastructure has risen from 6% to 9%. And this also includes the Building E in Plan Liewat, which is also a logistics building even though it looks like an office building.
West Long is also a logistics building. So we are following our strategy and implementing our strategy towards more office and more logistics space. During COVID, we weren't able to sell retail space. I think that is obvious. Now let's take a look at the profile of rental contracts, the maturities.
The Median maturity is 6 years. And these expiry dates are evenly distributed over the next few years. 82% were of those contracts that's about to Expires were extended already in 2021, and 31 of those due to expire in 2022 have also already been extended. So we are not going to have any big changes here. So we're certainly on track.
So now, I will talk about our Development business a little later, but Let me now concentrate on Services and start by Asset Management. On the left hand side, you can see Very clearly, the growth rates that we have achieved, This is due to the assets managed by Swiss Prime Side Solutions. We are currently at 3 point
EUR
2,000,000,000, EUR 2,800,000,000. The main client is the Swiss Prime Investment Foundations. And the remaining assets are for smaller direct clients. We have a development pipeline here of approximately EUR 400,000,000. And now taking a look at the results of the foundation.
And so far, I would like to congratulate them and congratulate their asset managers. Reducing the vacancy rate to 3 point 3% is a record low. Best results ever, well communicated by the foundation. So that certainly is an excellent situation. Now taking a look across the border into the rest of Europe, The first product, SPIFF Living Plus, has been very successful.
This is assisted living Abroad is the 1st international product of the foundation. More are in development. And the second one is certainly going to be communicated in the second half of this year. I was hoping to be able to show you the FINMA document for the approval Of the application of fund management and fund products, I haven't got it quite yet, but we have been told that it's underway. And that means that we will be able to start with the first product in the Q4 of this year, and we're confident it will be well received in the market.
We've also managed to attract additional new clients. I can't mention the names yet, but these are clients we want to grow, who will bring in a volume between €600,000,000 €1,000,000,000 So Asset Management is a growth driver within the organization, and it's only just starting out. So Now one more thing you all know about Leuenhof in Switzerland, And it is the most beautiful building on Bahnhofstrasse apart from the Yale Mollie building. Of course, I need to say that. And well, before the foundation took over the building, the potential was €10,000,000 And then the total rental potential was labeled at €12,000,000 And Today, the asset management team has managed to bring that up by 16% above the potential.
That is a great achievement. And by the way, they did that on their own without marketers. And so additional tenants were attracted. Rental contracts So we're signed for several years. Now the entire building has been rented out.
So congratulations to the team. That was really an excellent job. So that's on asset management. You may have noticed that you don't Have any information on Winqaza and Yalmori in your documentation? Well, I'll say a few words about it.
Well, Winqaza, as we already mentioned, is relatively flat. We are on budget, but Let me tell you that we are now in the last major year of digital investments. And the investments into digital infrastructure are going to lead to a digital win Casa for the mass business, residential business. And it will lead to the concentration of management on on commercial properties. The effect is going to be the following.
Next year, we will be able to achieve an EBIT margin of 12%. I'm very positive about that. And that is the objective 12% to 15% EBIT margin from managed win Casa business. So we are on the same level as last year, this year. That's the way it was planned.
And then next year, we should be able to see the effects of the investments into the digital infrastructure backbone. And where Yalmori is concerned, well, we already mentioned the higher sales despite the 2nd lockdown. Well, don't forget the 2nd lockdown was shorter than the first one. That's not quite true. Fact is the full lockdown is shorter, 6 6 weeks are not 8 weeks, but let's not forget that restaurants were closed for 10 weeks.
So for them, the lockdown lasted longer. And this is important because there are 11 restaurants or gastronomy sites at the Al Moli, which also attract visitors. And so the increase in sales is particularly impressive. And this was because we were able to increase the conversion rate. That means more customers coming to the shop are actually buying customers, not just trying to get out of the rain.
And those customers who buy also buy more. So this is the sale per customer. And both of those items were increased. And they were not just higher than last year, but also higher than in 2019. Team.
And so we are optimistic that we are on the right track here with the Almori. I will talk about that a little more at the end of the year. So much about the services. Now before Talking about the projects, let me just briefly talk about ESG. Just the most important points, stakeholders.
Well, we already mentioned rent waivers. And In September, we're going to have a 3rd stakeholder dialogue that we're very much looking forward to, and we have invited Dimitri. We have invited the tenants, those tenants who are going to end up paying. And we look forward to the discussion with those tenants. And of course, one question is going to be how we're going to deal with sales based rental rates and also whether there's any logical connection between this, whether maybe the as an owner, we could also have part of the sales via an e business.
So these are very interesting questions and of course also very controversial. So we look forward to a lively discussion on that. We also did an employee survey in the 1st part of the year with a very high rate of participation of approximately 80%. And we this has shown that my employees are very, very motivated in all areas. Finance, well, you know about the green bonds, which generated EUR 600,000,000 from within 8 weeks until February 2021 with a very interesting coupon.
So that is to show that sustainability is a topic that is going to stay, that is here to stay and maybe even become more important. I think we're very well positioned for that. We are ready. We have already communicated our objective to have a carbon neutral portfolio by 2,040, and we're going to achieve that. Of course, that is going to require certain investments, as you will see in the CapEx requirements that we've entered into the portfolio.
But carbon neutrality is not just Scope 1 and 3, but 1, 2, 3. So please compare this With other, it's Scope 1, Scope 2 or Scope 3. We are going for scopes 1, 2, 3. And another topic is the increase of deployment of vertical take systems on our roofs, ideally across 40 sites in our portfolio. Infrastructure is, of course, also related to ecology.
We've already mentioned Mueller Tras and the Google project. Well, Murostrasse is about the circular economy. It's about the idea of this circular economy. And the idea is that All materials that are used are documented in a list And this material has a price and a value. And this has to be included When you build a building, you have to make sure that you don't use foam because you can't dismantle that at the end of the building's live, but we want to have everything recyclable in terms of a circular economy.
That means that we will never again have to pay for demolitions. So, of course, we won't have to pay demolition companies because they will be able to use the material and reuse the material that it comes from these demolitions. This is a great idea for the environment, And it also means that construction technology has to change a little And the value of a property at the end of its life cycle will also be affected by this. And then the last bullet point here, innovation. Let me just mention new work and also healthy buildings.
These are 2 Programs that we've introduced, tenants know not just don't just want secure buildings with secure access, but they also want healthy buildings. For example, in terms of ventilation, as maybe you noticed when came up in the lift here today. We have that here. So that's something that's certainly going to increase in importance. And so all of that I don't have to mention everything here, but we are also rolling out our e charging stations and now we're rolling our photovoltaic systems.
And we are also Going to go for 2 certifications, the SNBS, that's the standard for sustainable building Switzerland. It's a very interesting standard. And we are also going to apply for the BRIM certificate, which is an international certificate, which will help us in valuations and be evaluated in terms of sustainability. So now 3 more slides on projects. I've already mentioned that we are going to continue to concentrate on our own developments and because this is where you can achieve the yield.
So we're very pleased with our project here. Let me start with those under construction. They're all on schedule and with a high occupancy rate. The first one on the left is Tazianan building in Monte. And then you can see on the time axis how this changes a little bit.
And the end date, the project execution is the year where we will take over the building, Schuky Park 1 and 2. Compared with our previous presentations, we only had Schuylkill Park 1 under construction. But now due to the additional rental contract with Lonza, we have been able to start Construction on 2 more buildings. 1 is almost finished and 2 is now under construction. Alte Pan Rouge, this is an office building directly on the new CEVA line.
We have 21 percent already under rental contracts and we also have reservations of 50 is now on ground level, so we still have a couple of years left to for the remaining 50% rental contracts. And then we also have Paradiso and Zurich Molla Strasse. So those were our projects under construction. Now on to the planned projects, which is only part of our portfolio. On the left hand side, you can judge 2, the new build, it hasn't started yet.
We are currently it's currently being marketed. And the We are planning to start next year. So you can see here that it is in building and zoning regulations. So we can plan without having to apply for special development approvals. Next one is Chezyanam and Alton.
We now have the Design plan, the final design plan and the building application has been submitted. So we are expecting to get approval within a month, which will be are valid immediately. And so we may even be able to start construction a little sooner than shown here on the table. Mark Life in Zurich, we spoke about that last at the end of last year. The project is on schedule.
Sausteil is the €8,000,000 property that we bought this year. And those of you Who knows Zurich will know that the pink building to the left of it is the new ZSC stadium. And then we also the Westlog Logistics building is just right to the Saar style. So Obviously, this is also going to be another Logistics building. Rheingasse in Augst in Basel and here we have Already received authorization of the zone plan and 2 stage study commission is in progress.
This is we received the approval for building from the Myriad Foundation. It's a very interesting new project. And We are expecting €11,500,000 rental income for Dreisbitz in Munchenstein. So those are our planned projects. Now onto the slide that we are particularly proud of.
Let's start with the column in the middle. Now of the projects that we announced a few years ago, we have already quite a lot of them as part of our portfolio. And we had a pipeline of £2,000,000 then, and we still have a pipeline of £2,000,000 How do we do that? Those are projects that primarily come from our own properties, so buildings that we already owned. We only bought one project, Aasta, as I just mentioned, at €18,000,000 But until now, we've always said that we have We now have €104,000,000 additional rental percent.
And so we have now EUR 1,460,000,000 in the development pipeline, EUR €360,000,000 are still in the reserves. That means that we have that simply means that we haven't started the project in any concrete terms. So this has always been our objective. We have generated additional developments from our own portfolio, which will also generate, of course, additional rental income. So now back to the figures with Marcel.
Thank you very much. I'll be pleased to show you more about the positive developments that Rene mentioned and their impact on key figures. You saw these figures before. I won't dwell on them any longer. It's the same figures.
I'll give you more details about individual Components of them. Let's begin with operating income. There are 4 components With the of mentioning, on the one hand, we've got the impact of COVID at €3,100,000 which is rather modest For us, almost all our tenant inquiries were brought to a positive Settlement, we were confronted with around 250 requests and found Agreements with those tenants that led to rent waivers in the amount of $3,100,000,000 Rene mentioned it before. Add to this, an estimated A loss of turnover rents of $2,400,000 compared to 2019, primarily due to Loss of car park income because there was less frequency and, of course, less frequency in restaurants, not in retail, where Sales was very good. Rental income grew by 2.2% At a like for like growth of 0.5%.
EPRA figures are slightly different. EPRA is without COVID and the like for like is always going back for 2 years. So the properties that were transferred to our Portfolio are excluded here. EPRA only accounts for around 80% of our portfolio. And as Rene showed you before, we transferred some of [SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Properties into our portfolio in recent years, so like for like, is only short term and positive growth is 0 point 5% driven by the reduction of vacancies from 0.4% to 0.7% and from 5.4% to 4.7% year on year.
Asset Management, we mentioned that before. Strong Performance in Asset Management with a plus of 56% on income and an even Stronger impact of +85 percent in EBIT. This is a strong growth business that generates great revenue and disproportionately High profit and Rene mentioned we're assuming that this will be the same in the future. This It's only the beginning as you have just heard. And to conclude with retail, we have positive trends there.
A plus of 5.3 percent on income despite the lockdown. Rene mentioned that on a like for like basis for July and Ljellmoly, without the additional sales at the airport, we have growth of 8% compared to 2019, which impressively shows that retail in prime locations is doing well, is working well even in times of COVID-nineteen. When CASRA is not in there, not because we need to report anything badly, but it's been constant and that's why we're not showing it to you. Nope. Going into the details of like for like and rental income in particular, you can see here the reconciliation we had from 2020 to 2021.
First of all, the difference of $11,000,000 which we mentioned before. These are the components that were dropped with the sale of Tocyanum and accounted for 11,000,000. Then the Sales that you see here, the strong impact from modifications and modernizations and completion of Projects and the €3,100,000 of COVID-nineteen related impact. The €1,100,000,000 is really the 0.5% of like for like, this is the change on the portfolio. Now I have to give you a CFO chart with lots of figures, of course.
I won't Going through the details of all of them, you have the 3 columns reported in 2020, then like for like excluding tertiary for 2020 and our first half year in 2021. Going down from operating income to profit, the first figure I'd like to highlight is Revaluation of EUR 144,500,000 compared to the EUR 47,000,000 in the last half year in First half year in 2020, from the point of view of the CFO, let me mention that the €145,000,000 of revaluation were achieved to the constant net yield of 3.2. In other words, we earned that ourselves. Because we increased revenue, adjusted for cost and net yield remain constant. Then we've got profit from sale of investment properties, which we communicated, Espasteur Bignon, As Rene mentioned, with the one building and the one at Stadelhofen of around 36,000,000.
And finally, A figure I would like to comment on is operating expenditure on a like for like basis of €193,000,000 ended up at €188,000,000 2 components. Responsible for that, the strong cost focus We had the constant cost base on which we generated additional revenue. And on the other hand, this also includes depreciation we had in last year on expected loss of rents, which were not in the top line, not all of them. The first half year of twenty twenty, we had provisions for losses, which we don't require anymore. So we have Completed all the requests and everything has gone down to the into the revenue.
A final comment on this Page on financial expenditure. You can see the figures here, a reduction by £6,000,000 from £29,000,000 to £23,000,000 on the basis of better re Financing achieved in the market and lower interest rates on them on these amounts. Moving on to the balance sheet, the assets. The largest item there is our Real Estate portfolio. Obviously, you can see how it performed in the first half year based on the fair value at the end of 2020.
Moving on to the fair value At the end of the first half year of twenty twenty one, you will call the last Capital Markets Day when we said we're going to focus on Profit densification rather than growth of our portfolio, and you can see nicely what this means in practice. Looking at the two figures, €140,000,000 of sales and then investments, and if you add this up, the order of magnitude of around €40,000,000 you can see that the portfolio has more or less remained the same. But at €36,000,000 of sales proceeds that we generated because with our own developments, we were able to maintain the portfolio. Thus, We're able to streamline the portfolio at appealing sales proceeds. So this gives us Capital Recycling, that is shown here impressively in the first half year.
I mentioned already the Rest of it, 3.2 percent of net yields on our investment properties. Moving on to the other side of the balance sheet, Financing, you can see that we've remained constant by below the line as far as financing Structure is concerned, there was a slight shift towards more unsecured components, in particular bonds, which I think is a shift that will perhaps be a little stronger, a little more powerful in future with more flexibility. And we are going to take out financing in the Capital Markets, and you can see that we Issued a green bond and increased 2 bonds in the first half year at 0.375 percent of interest compared to 0.9% as a on borrowed capital. So there is a huge potential there as you can see. 5 0.1 years of duration, we're on the positive side.
We've got good certainty and visibility in terms of Financing. Going down to the equity ratio on the balance sheet, The development has been flat. As you can see here, we're slightly above the year end figure, but we have paid out the dividend in the first half year of €255,000,000 and earned everything back with the €275,000,000 of profit, which made sure return on equity has remained flat, 47%, 48%, very stable and exceeding the objective that we set for ourselves. Return on equity at 8.4%. I've mentioned that before.
Like for like, excluding the unique sales proceeds, This is a strong increase in excess of 6 percentage points and exceeding the range that we have communicated. And finally, 2 EPRA figures, adjusted EPRA EPS on the one hand, and adjusted because that's what EPRA wants. If developments are part of your operating business, you need to show that we are showing adjusted EPRA EPS primarily with a great increase of 19 in percent over the previous year. And I would like to introduce a figure that is not Very usual, very standard in Switzerland, but I've seen that in many analysts report funds for operations, FFO, which is fairly standard in a European setting, just to show you what the cash profit is. And I'm showing it here at €1.90 per share.
Of course, we can discuss about its I'm positioned in detail, but this goes to show you how much cash we generate as a company that does not include Sales, FFO 1 that is without sales of properties but including the normal developing business, which we consider part of our regular business. In conclusion, EPRA NTA is one of the figures that shows many reports as a benchmark For the intrinsic value of the stock, we increased that by 1% from 95% to A little more than 96%. So this is the basis we can expect for performance, Share price performance in Switzerland, you'd probably have to add 10% of a positive component. So I think SPS stocks have a great Potential. Let me hand it back to Rene for some, expectations and an outlook.
Thank you, Marcel. Let me take you back to the chart that we showed you in presenting the figures of 2020, the guidance was for an increase in rental income on a like for like basis and reduction of the vacancy rate and we then introduced a new dividend calculation, where do we stand today? What can we say on But where do we stand in terms of outlook? Well, for the second half of the year, by The end of 2021, we expect further growth of assets under management, AUM. There's no specific guidance on that, though.
And then We expect stable development of vacancy. We don't want to go down to 4.7% to go back up to 5% again. We Assume that vacancies will remain below 5% in the long run and that will be stable between 4.6 4.8%. So we're not doing badly with the 4.7% that apply currently. I think 4% is feasible.
We shouldn't rest on our laurels. There is potential in vacancies that we need to skim off in the long run. In terms of financing, we certainly want to have more unencumbered assets which is one of our medium term objectives, which we're going to pursue, in particular with Marcekucher. We expect further revaluation gains by the end of the year. Yes, we do expect that in the amount of Well, I'm not a prophet, but I would assume that $100,000,000 would be feasible.
Could be more than that always assuming that we won't have another lockdown which would surprise So under the proviso of not having another lockdown, Of things remaining the same as they are today, there'll be more revaluation gains by the end of the year. COVID-nineteen impact will be rather moderate if there's no further lockdown. And you all heard about the ruling in the first instance where a tenant filed a complaint about the rent that was not owed, his rent that was not owed and The ruling was against it, so that would help us if there is another lockdown because there's always a risk Trade off whether you can win a case or not. And I think the ruling is well founded. It didn't refer only specifically to the COVID-nineteen situation but to Roman law, rebus exantibus.
In other words, Can you ask for a reduction of rent if external circumstances have changed dramatically? And the court looked into the matter and said the lockdown situation was rather moderate, which would not mean there was a strong discrepancy between the agreement, rental agreement made and the current situation, and that ought to help us. Now whether this will stand Through all the instances of legislation we don't know of jurisdiction, we don't really know. Before I move on to further outlooks, in particular about office and retail space, let me mention one point I would like to correct. It wouldn't really be ambitions.
I have AVP here, and they wrote about the services segment that in the medium term, And EBIT contribution from Services was expected to be at €30,000,000 That's wrong. €50,000,000 is the correct figure. Just to mention that, 30 from Asset Management and 20 from Wincarcer and a flat result from Yellmoly. That's The expectations we have and I personally have for the Services segment of 2025. Now just a few words on the outlook.
I talked about office space already, but working from home, that's, of course, Day to day subject matter in the headlines and what we believe is that Switzerland will not be the same as some of the surrounding countries. The Switzerland has the Shortest commuters times in Europe, we do not have mega cities. We do not have mega buildings. We have part time work. We are familiar with part time work, which is important psychologically.
We're used to having people work Part time. So when planning for office space, we've been planning with an occupancy rate of 0.7%, A maximum of 0.7 percent of the workforce actually has a fixed Workplace. So we've always assumed that some people will work from home even before COVID-nineteen and that Mobile work is admissible. Mobile work means you can work from home or on the road. And we Do we expect compensation of surface area?
Those who will go to work will expect to get a little more surface area and also to withdraw to with inside a building. And Sorry to say so but most people expect to have a sexy office. It's got the offices has got to offer something appealing and space for interaction with colleagues and of course good locations will be helpful They will be POI, point of interest. People, employees will expect when moving the building that So there's something going on around the building. So these locations will remain appealing.
They will be further upgraded. So when you have office space somewhere out in the sticks, it may be a little difficult, but we are very positive As far as the office based market is concerned, employees like to go back to the office for an exchange with other employees and there's many things you can't do working from home this clear applies for new joiners and I'm firmly convinced I'm not all that old, but you can tell me what you like. Working from home is not efficient in the long run. Full stop. In the first lockdown, everyone was pleased to simply be able to log on, But that's not efficient yet.
So I'm convinced in terms of Switzerland that good office locations will not suffer from the trend towards working from home in the long run. And that trend will not be as market as in other countries. On retail, stationery retail, brick and mortar retail is not dead as we have seen. Of course, There's increasing pressure from online retail, which will not decrease, but rather increase. But there's also the situation that brick and mortar retail will be able to generate more sales as we're seeing In the case of El Moli, more and more offices, more and more businesses want to move to Cities, Lidl for instance is doing so in Bern.
Things you wouldn't have thought possible a short time ago. Who had the first little in a city that was us by the way it looks a little nicer here than in Bern Then there is IKEA suddenly wants to be in the city. We saw it outside in Leesach in Breitenbach Always high frequency locations. The high frequency locations always have a future. So we are positive on that.
And with The people we have on the team, we can manage almost everything. So my outlook is certainly positive as far as the remaining months in this year is concerned. So let's take a breath now. We're at the end of our presentation. Let's begin with The questions, can we get it organized as such?
We have may have questions coming in through the phone. I don't want to have chaos here, so let's begin with questions from the audience here and I will pass on the questions to colleagues who are here should they refer to Details I cannot answer, and we will then, following that, take questions coming in through the phone. Yes, begin let's begin here in the hall.
Good morning, Pasco Doy from Stifel. You spoke about upwards valuation. Where have there been any downwards revaluations in the portfolio. And the second question on as per Solutions, you were very Now optimistic about the growth this year and next year. You are now at 1 point euros 2,000,000,000 you mentioned euros 4,000,000,000 by the end of the year during the Capital Markets Day.
Is that objective still achievable? Are you still going for it? And then on Espasteur Bien, the sale of Building A, would that be an option? And comment on your capital recycling approach. It sounds a little Like everything is going very well, all the properties, which may become A problem in terms of sustainability can be solved at a profit or as a valuation increase in order to finance newer sustainable projects.
But is that a sustainable model? Currently, buyers are looking for investments, but you are selling those buildings for a reason, either because the value too low or whether that be of because there is no future prospects of the property. So those were four questions. 1, Espaite d'Orbillon, Building B. Building A is condominium.
Building B, can we imagine to sell it? Well, you should never say never. If the price is right, maybe. As you can see, we have been able to replenish our development pipeline from our own portfolios. So it's today, the Building B is included in the rental income as it stands.
If we were to sell it, we would, of course, deduct the rental income. But then, of course, we would have the sales
proceed.
It's not impossible. And now the question on capital recycling, would you like to answer that, Marcel? Yes. A pleasure. Yes, we feel that it's sustainable.
We can see that our yield is much Higher based on our developments, you can see that our valuations are higher from when they come from developments. And So they grow in line with the development. And you can also see the kind of scope we're talking about here whereas €140,000,000 in the first half year based on the portfolio of 12.5 €1,000,000,000 that's certainly sustainable. And what about those buildings that you are selling? From what I understand, you are including the better buildings into your portfolio and older buildings are, as well, the first They are probably not those that you want to keep within your portfolio.
Well, I can answer that. Well, that has nothing to do with sustainability. It has to do with the size of the buildings. These are rather small buildings by comparison, and we wouldn't buy them anymore. And that's why it made sense to divest here.
And of course, new buildings have to be extra sustainable. They should not just use produce CO2, but actually they should be plus energy buildings producing more energy than they consume. That's the objective. And in terms of existing buildings, it would be easy to sell everything that's negative and therefore have a good climate balance sheet. But We have started replacing gas and oil heating and such like.
And now Let me stick with AMs. And then our objective is, in the medium term, to have EUR 7,000,000,000 with an EBIT of EUR 30,000,000. That's the objective. We are going to achieve it. At the Capital Markets Day, we already included the project development pipeline, that's a EUR 400,000,000 because we said that we don't have to buy that.
We just haven't developed it yet, but it's in the pipeline. And that's why we arrived at that figure. But Anastasios can maybe say a few more words about it. Yes, the EUR 4,000,000,000 Where we have growth projected for SPO, Swiss, there's going to be another issuance. And many clients and new clients' assets are expected.
We have also launched our International business and of course we can't have an effect on we can't influence FINMA as we heard that we still have to wait a few days And then we can launch that too. So we can expect the portfolio, to be our portfolios which will bring us to the €4,000,000,000 or maybe even beyond by the end of the year. Thank you very much, Anastasios. Now I will let me just add. It is not our attention to transfer real estate to solutions.
That was just a onetime project. That was the starting portfolio. But we're not we have Additional properties that we've been able to acquire, but that was unique. That's not going to happen again in the future. It is possible that maybe individual portfolios will also be offered.
And now a question about the negative revaluations. Yes, let me just add. Maybe just first about the of revaluations, which include the CapEx measures that we have taken and that we are planning. Yes, there have been Some negative revaluations in terms of points, but these were small retail B OR C locations. Thank you.
I also have 4 questions, just like the previous speaker. The first one on the Maturity profile, we heard another real estate company yesterday who said that they have an imminent extension of maturities for 2023, 50 by 50%. What about you? Have you Are there any problems projected for 2023? Any potential vacancies?
You spoke about the medium term goal of 4% vacancies, can you exclude going beyond the 5% in the next couple of years? Okay. So that's just one question for now. Martin? We are currently working on that strategy.
What we can say today is that we expect that there won't be any major vacancies for 2023. There are renewals of contracts and new contracts, but Everything that we've included in the strategy means that that's going to be as shown earlier. The second question is a little bit more detailed. The valuation on the Yalmir House of Brands as a real estate, can you say anything about how this developed over the course of the pandemic? Actually positive.
It's been a positive valuation. And this just shows our prime locations are always seen as positive. I think it was €10,000,000, right? It's not mentioned earlier. Those were the C locations.
But in the A locations, there was actually a positive revaluation of properties. The third question concerns COVID. What is to be expected for the second half of 2021 based on what we know today. And have you switched any of the rental contracts to sales based Back to sales based ones, no, we haven't. We haven't changed the structure.
And what to expect for the second half of the year, always working on the assumption that there won't be another lockdown. I would say on top of the €5,500,000,000 now another €3,000,000 That would be the expectation. And the last question on the strategy. Tensianum has now been sold. Can we expect additional streamlining of this portfolio?
Or is that not what you're going for well, anything is conceivable, but the strategic Decision has to be not to do so. So we can see this well, in 20, We stand by the Services segment and conceivable well, anything is conceivable, but the strategy says no. Are there any questions, an additional question from the room? First of all, on the like for like, development of rents, So income is a little negative, and it's the same with most of your competitors. So based on current negotiations, what are your expectations for the future here?
As you said correctly, like for like is negative. It's less negative than last year. This contains the COVID effects. And the second part As I mentioned is that looking back 23 months and so we only included about 80% of our portfolio in the like for like comparison. Everything that went online in the last couple of years is not included.
So our like for like is a year over year and it is 0.5% positive. So you can look at it in a more positive light. We have a large effect of more than BRL 4,000,000 from renovations. 25% of them are smaller ongoing projects that were presented separately and that can also be accounted for like for like. Anything that's, of course, larger projects will be shown.
And that leads us to 0.5% to 1% that we consider to be like for like. But this somewhat negative development is will continue over the next 2 years? Well, yes, it's strongly driven by the COVID effects. And the new properties have contributed to the positive growth. And but EPRA are always 24 months behind.
And so you can expect a positive development for this year compared with last year. So the negative is less negative than it was last year. And service edits are no longer being published, But I thought that there was a clear we would get some clear indications. But maybe I have to ask a direct question. Is the profitability at Winqaza positive?
I'm sure it's probably not as positive as what you expected in the first half of the year. Well, I can answer both questions. So what's important here, next year, 12% EBIT margin. That's the objective. And this year, We are going to close at the end of the year by approximately €12,000,000 EBITDA like last year, identical to last year.
Because the reports said that it is clear for Solutions. And Yalholly is the negative minimum, and the total is minus 4%. So either Yal Moli is very close to the previous year or when Casa is below the previous year. Well, I always calculate at the end of the year, euros 12,000,000 Nual Casa. What's the difference based on?
Well, you have to consider That's the ancillary costs. There's a huge potential within Winqaza, which is included in the accounts in July. And that is why we can confirm that we're at the same level as Previous year, this is for Wincarza. And the Almale is going to lose less considerably less than 2020 provided there's not another lockdown. And the 50% reserve for the project in Geneva is not included in the revaluations for the 1st 6 months of this year, correct?
So if this was realized, this would make up a large part of the EUR 100,000,000 plus revaluations for the second half. Is that correct? Yes. And now a bit of a provocation at the end. Now looking at the project pipeline, and I can see like at the end, AUGUST and Munchenstein, the latest projects, Is that the result of the Swiss real estate market, which no longer has a lot of opportunities in the centers?
Does Swiss Prime side now also have to is it forced to move into the agglomeration? Well, thank you for this question. I'm happy to answer that. Well, Munchenstein, it sounds like a small place, but The 11,500,000 is the Canton is going to be the tenant, and that's the plan. So This is, of course, attractive in Augs, Basel, Land.
And this was just a great deal. That was a great The question or as whether we're going to move out into the sticks, the answer to that is no. But it always depends on the use case. If you have a logistics location, it doesn't have to be within the city center. It will have to be further out.
But in response to your question, the answer is no. These were just 2 opportunities.
Any further questions from the auditorium here? Yes, please. Quick follow-up question about Solutions. The approval of fund products is there Or virtually there. What volumes can we expect not for this year but next What are your expectations in this regard?
Well, let me add. If you take the Capital Markets Chart, you saw we aim for €2,000,000,000 by 2025, and we can confirm that objective. Yes, please. The question on the rental agreements that you negotiated 20 21 that expire 2021, 2022. Can you comment on the terms?
Any concessions made to tenants? Well, the largest parts of the agreements were concluded on the same terms, and any concessions were compensated more than compensated by increases. And LTV, you announced there's a trend Going down. Can you tell us more about the medium term objective for LTV? Well, Renee alluded to it.
We're at 42% currently. I think going down another 2% would certainly be a medium term trend to be expected. Well, I think let's move on to questions from the community. Any questions Coming in, I think we've got to give them a minute or a few moments to set The connections up. There don't seem to be any questions.
Well, Mr. Fry, did you have a question? Well, I'd like to know about the 0.5 that you're calculating. Is this due to the slightly increased rents at the end of the day? Or And I would also like to know whether there are people working at Gjellmoly Airport and Leuenhof.
How far away would that be from your 1.7? Well, as the results are so good. Well, on Leuhold first, That was a complement for the Swiss Prime Solutions asset manager. The Leuenhof, as you know, is Swiss Prime Investment Foundation, so I cannot comment on that. All I wanted to say was I want to complement the managing team of the Investment Foundation to achieve that result.
Well, the 0.5, I showed you the breakdown before. It included reduction of vacancies, increases of rents, Maybe new types of use because you have maybe retail space added to office space or vice versa. So these are the effects. And then your question about the Yalmoli at the airport. Well, thank God there are people at the airport.
We have a positive development there. Well, there is an impact on the El Moli and Airside. Finally, we can see that the increasing number of flights contributes to increases in sales. We're not all that dependent on the development of flights, the number of bytes, but there is an increasing number of frequency. Airside is in line with Frequencies communicated by the airport, they hope by the end of the year to be back to 50% of pre COVID-nineteen levels.
In Airside, we can feel the impact directly. 2 flights more and this has a direct impact on our sales. In circle, well, the question is who are the clients there. It's not the passengers, but it's People that we expect from the local area, employees, the airport, more frequency, more employees at work. And then, of course, all the employees working at the circle directly.
The airport has almost fully led office space but people haven't moved in that it's not helpful most of them are still working from home so there will be more momentum when people start coming back to the office. One final question from the audience. Well, the mandatory one to the new CFO. How did you perceive work, positive negative terms in your new capacity? Well, I've only had positive surprises, of course.
No. To be honest, I feel very comfortable. We have a great team, especially in the financial field, which I know best. So no negative surprises, definitely. Well, thank you, Marcel.
We had practiced for this question, of course. Well, thank you very much for coming. Everyone physically here is invited to join us One level up for refreshments, and I'm looking forward to having physical exchange rather than remote only. It's Great fun seeing faces again. And trying to Make a joke, you do get reactions with physical presence.
So thank you very much for your kind attention.