“I am pleased with our solid operating performance in 2023 in both segments. In the Services segment we were able to increase revenues while maintaining a remarkable EBIT margin. Our decision in autumn 2021 to sell a portfolio of eleven properties in order to reduce our LTV has proved to be excellent. Our even stronger balance sheet provides a solid foundation for our future growth. Vacancy rates have continued to come down. With record levels of immigration to Switzerland and continued high demand due to the ongoing low level of construction activity, the housing shortage is expected to worsen, particularly in the hotspots of Geneva and Lausanne. Despite the economic uncertainties, we have been successful in terms of rent increases. The lower valuation of our portfolio due to higher interest rates is market-driven and does not affect the fundamental performance or quality of our portfolio.

The economic data available for Switzerland suggest that a property market crisis is unlikely. Inflation rates are easing and interest rates are expected to be cut in the course of this year. The property market in the Lake Geneva region is complex and constantly evolving. The shortage of housing is one of the highest in Switzerland.

In an environment where the industry has had to adjust to higher capital costs and lower valuations, we have created value in both our segments. I am very pleased with these results.

I would like to thank all our colleagues for their passion and commitment. It is what drives the success of our growth strategy every day.”