Swiss Prime Site Boosts 2026 FFO Outlook, Targets Over 15% Growth by 2030

Swiss property group Swiss Prime Site on Monday raised its 2026 outlook for a key profitability metric, citing a strong third quarter and positive market conditions in its prime locations. The company also announced new long-term growth targets through 2030, underpinned by strategic acquisitions in the healthcare and flexible office sectors.

Upgraded Financial Targets

Swiss Prime Site increased its forecast for Funds from Operations (FFO I) per share for 2026 to a range of CHF 4.30 to CHF 4.35. This is an upward revision from the previous guidance of CHF 4.25 to CHF 4.30, which was confirmed in August. FFO is a widely used performance measure in the real estate sector, representing the cash flow from a company's operations.

Looking further ahead, the company is targeting more than 15% growth in FFO I per share by 2030, measured against its updated 2026 forecast. The company noted these long-term targets assume current financing market expectations and no changes in regulation. Other updated targets include:

• 2026 Vacancy Rate: Expected to be around 3.5%, an improvement from the previous guidance of below 3.7%.
• 2026 Assets Under Management (AUM): Now forecast to grow by approximately CHF 1.2 billion, up from a CHF 1.0 billion target.
• 2030 AUM: Targeted to exceed CHF 23 billion.
• 2030 Income: Aims for rental income of over CHF 530 million and fee income of more than CHF 130 million.

Strategic Acquisitions and Expansion

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To support its growth ambitions, Swiss Prime Site is expanding its portfolio. The company announced it has acquired the remaining shares in co-working provider FlexOffice, increasing its stake from 33% to 100%. FlexOffice, which holds an estimated 20% share of the Swiss flexible office market, is expected to generate revenue of more than CHF 20 million in 2027.

The real estate group is also increasing its focus on the healthcare sector, aiming to raise its exposure from 7% at present to around 10% by 2030. As part of this strategy, it has acquired a property in Basel with a net yield of over 4%, where healthcare tenants occupy 40% of the space. The deal is expected to close on December 1.

Outlook for Investors

The company's dividend policy remains unchanged, with a stated target of paying out 80% to 90% of FFO I to shareholders. The revised guidance and strategic initiatives signal management's confidence in its core real estate portfolio and its ability to generate growth through targeted expansion into resilient and developing property segments.