Aevis Victoria SA (AEVS) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Aevis Victoria SA conference call regarding the publication of the 2023 annual results. [Operator Instructions] Let me now turn the floor over to your host, Antoine Hubert.

Hello, ladies and gentlemen. Welcome to this presentation of our annual results 2023. I will start with an overview. So we continue to create value. We have a record hospitality revenue this year. We strengthen also the management and fundamental integrated care milestone. So Healthcare segment, we did a capital increase with Visana Beteiligungen, which confirmed the significant value creation achieved at Swiss Medical Network level. The Hospitality segment, MRH Switzerland, so Michel Reybier Hospitality Switzerland, strong improvement in the positioning of the group of hotels that we can see then in the numbers. Real estate portfolio, we also increase the value due to a lot of construction -- investment in construction. So we expand the floor in both portfolio, Healthcare and Hotel infrastructure. We did strengthen the group executive management with Fabrice Zumbrunnen, who is going to be CEO starting 1st May, 2024, is a highly experienced man as the CEO, is already active in the group through the Board of Director of Swiss Medical Network and MRH Switzerland since June '23. We also appointed, we announced this morning, Michel Keusch as the CFO and CIO, so Chief Financial Officer and Chief Investment Officer, who will start on the 1st, June 2024. Myself, I will make the transition until next general shareholder meeting in '25, and I will be proposed as Chairman of the Board at this time. Also Severine Van der Schueren, who is the Chief Administrative Officer, enters in senior management of the company. The Hospitality segment with another record year. We did 10.3% growth in '23. We had a very strong increase in the average run rate from 2019 before COVID to now. So CHF 412 in '19, CHF 559 in '23. This number is slightly diluted by the new hotels that we acquired in '23. Swiss Medical Network, as I said, we have this new integrated care VIVA health plan with Visana. It went live in Reseau de l'Arc as of 1st January, 2024. It's based on the full capitation model and focused on health care rather than sick care. The VIVA health plan has been approved by the BAG, the Bundesamt fur Gesundheit in 2023 and now can be deployed in further region in Switzerland. The sum-of-the-parts of Aevis' participation has increased. We are giving here an indicative net asset value that has been increased by 17 times since 2011. We take 2011 as a start date because that's the date where Michel Reybier entered as a co-shareholder. And we started this very strong development in both sectors, Healthcare and Hospitality. Healthcare integrated care, broadened shareholder base, contracts with all insurance partners, and we also implemented restructuring measures that are necessary to maintain the margins. The Swiss Medical Network launch the first true integrated care organization with canton Berne and the Visana. It's a very strategic partnership with this leading insurance group. We have contracts with all insurance partner in Switzerland. So Swiss Medical Network has a contract with absolutely all insurance. And we implement restructuring measures since October last year to adapt to the market challenge, so inflation, raising costs and energy price. The other Healthcare participation are the TCS Swiss Ambulance Rescue that was a few years ago 100% subsidiary of Aevis. We are now a minority shareholder with 40%. 60% are in the hand of Touring Club Suisse. Still we -- since we have this partnership, we have developed Swiss Ambulance Rescue in Switzerland. It's now the biggest rescue organization -- brand rescue organization in Switzerland, and we have a very important pipeline which is currently under development. The Genolier Innovation Hub, we -- so the construction is completed, or almost completed. We already started to have the first user. GE Healthcare and Accuray have already taken their place in this Genolier Innovation Hub. And also our investment in Well and Benecura to a digital initiative are steadily growing well as -- now more than 260,000 users in Switzerland, which makes the most successful digital health hub in Switzerland. So we create significant value in 2023, and we confirmed our strategy. Hospitality value drivers. So we have repositioned in luxury. We have a positive momentum in Switzerland for tourism. We have a scalable platform and by MRH Switzerland as -- I'd say record revenue in 2023 with more than CHF 170 million turnover. We are still working on further improvement in positioning of the hotel, especially the 2 main destinations, Zermatt and Interlaken. We have strong brands and excellent reputation within the industry with Michel Reybier Hospitality. Batgroup investment, Batgroup has made a record revenue in 2023, CHF 34.1 million with the first quarter with positive EBITDA. Batgroup is a -- as I say, startup, but we reached a breakeven in the fourth quarter of '23. Batgroup did also the acquisition of Putzfrau [indiscernible] in 2023, that was the Swiss/German competitors, Batgroup. And Batgroup is continuing this organic growth with a strong focus on Switzerland. Infrastructure. So Swiss Hotel Properties, we have invested in new package in Zermatt. We bought a second package from Credit Suisse Hospitality Fund, which is located on the same area as the first packet we bought. We are capitalizing on land development opportunities, and we did a strategic property acquisition, and we probably also are going to make some divestments. We have a very good debt management and diversification -- geographic diversification of the portfolio. By Swiss Hotel Property, the focus is on Zermatt and the Interlaken. There's still a huge potential. And on Infracore, we are implementing comprehensive energy and water efficiency program in all the properties. Deal activities. So we did strong M&A activity with Visana Beteiligungen AG, who becomes a shareholder of Swiss Medical Network, is a capital increase of CHF 150 million. They own now 11.1% of Swiss Medical Network. And also, as I say, Swiss Hotel Property bought second packet from Credit Suisse Hospitality in Zermatt. We have a pipeline, especially on the Healthcare side to develop further the integrated care. The new executive management. So with the size of Aevis, now we needed to strengthen the management also to ensure the stability and sustainability of the company. We are very happy to announce the new CEO, Fabrice Zumbrunnen, who was a former Migros CEO. He played a key role in shaping Migros Healthcare strategy with Medgate, and he has a very comprehensive knowledge of the service sector and consumer need. He is also highly skilled in strategic business development. Our new CFO/CIO, Michel Keusch is a former -- is a Senior Investment Manager at Bellevue Asset Management. He did manage a fund that has Aevis participation since 2013. So he knows our company very well from outside. He was a very strong follower of the company, and he has a very strong competency in strategy and financial analysis and valuation and investment banking transaction. He will focus on conscious capitalism and sustainability concept. Myself, as I said, I will stay until next AGM, so in 2025, and then will be candidate as the Chairman of the Board. And also Severine Van der Schueren, who is in the group since 2008, first as a Secretary General and then Chief Administrative Officer, is completing this senior management. Aevis 2.0, that will be the task of the new management, to continue and implement the vision that we have in Aevis. So in 2023, we confirm the valuation of our participation. We strengthened the management. We implement some cost measures -- cost-cutting measures. We have a pipeline of investment for further development. And beginning in 2024, we have a very strong figure in the first months in both Hospitality and Healthcare sector in -- all over the world, so -- all over the company. The interest rate environment is normalizing. So we will take profit from this normalization to implement more long-term financing. And we expect 2024 to be a successful year with an increased deal activity and further value creation. The Healthcare segment, Swiss Medical Network. First with 80%, it's an investment from Aevis. We own 80%. It's a leading group of hospitals, but also the leader in integrated care in Switzerland with 21 hospital and 60 medical center. We did 79,000 intervention, a little more than 4,000 employees, 2,300 physicians. They're mostly independent physicians, more than 700,000 outpatient admission, 1,471 beds, and we reached this year at 16.5% EBITDAR margin. The result of this Hospital segment. So '22 has been normalized. We exclude the Reseau de l'Arc, which has been deconsolidated from Swiss Medical Network in December 2022. So we have a stable turnover in the perimeter with CHF 768 million turnover. Medical services, that doctor fees increased a little bit. The net revenue is slightly down. EBITDAR margin decreased from 20% to 16.5%. Rental expenses are stable. The EBITDA decreased from CHF 61 million to CHF 34.8 million. The decrease of profitability is mainly due to inflationary pressure, material, energy, rent a little bit, but material energy, that's quite material. Energy costs are -- were in '23, CHF 6 million over the former year. So we have a fixed price for energy until end of '25 and then it will decrease. We also, of course, had a significant interest rate increase. We are mostly -- we were mostly financed in [indiscernible]. So it has cost us few million in 2023 and now it's decreasing with the new trend in the interest rate. Countermeasure. We take countermeasure in Swiss Medical Network. So we are currently renegotiating base rate and tariff with the insurance. The problem in this industry is that the rates are fixed. They are not linked to inflation. And the cost, the wages, the rent are indexed on the Swiss price index. So we have to renegotiate the base rate. It's a global trend in Switzerland. It's not only us. I mean, public hospital are also struggling with cost. So there will be an increase in these rates in the next month or the year. Production and equipment. Of course, we are constantly discussing. We are a supplier to optimize the prices of material. We want also to harmonize within all our hospitals to try to reduce the number of suppliers. We reduced the use of temporary staff. The staffing in Healthcare is difficult, mostly in region like Zurich. All the hospitals are using temporary staff and temporary agency, which drive important costs. So we reduce drastically the use of this temporary staff. We also did the optimization of the personnel allocation and the first reduction of 50 full-time equivalent. There was no layoff. It's only with the natural fluctuation that we are reducing that. There are further reductions at our plan. We plan to reduce 50 full-time equivalent further until the next quarter. We also work on reduction of the average length of stay. The margin in Healthcare are mainly the first 2 days when we do the procedure, the operation. So by reducing the average length of stay, we are increasing the margin and we are also increasing the capacity. So we did reduce in pilot project in [ hospital bill ], the average length of stay by 2 days and increased the margin by 20%. And also we are working on actively deleveraging and lowering overall net debt and financing expenses. The first month of 2024 are showing positive effect of all the measures. So margin in 2022 were 20%, in 2023 decreased to 16.5%. We are back now to 18.2%, and we plan to reach 20% at the end of this semester. Integrated care. So since 2015 we are working on integrated care. 2015 was the first public-private partnership with canton Berne. We invest in the radiology of Hopital de St. Imier that create a very strong link between us and the canton Berne through this Hopital de St. Imier. Then we developed further with Hopital de Moutier. In 2018, we started developing the idea to establish integrated care organization in Switzerland with Kaiser Permanente as a role model. We started discussion just before COVID with potential partner. We stopped the discussion during COVID because it was quite difficult to speak about the future during this pandemic. In 2022 -- in October 2022, we signed with Visana Beteiligungen an agreement to be a founding partner of the Reseau de l'Arc alongside the canton Berne and Swiss Medical Network. In 2023, Visana Beteiligungen become also a shareholder of Swiss Medical Network to jointly drive the implementation of shared vision of integrated care. And in 2024, the VIVA health plan has its first member and went live in the Reseau de l'Arc. I will -- so this project, Reseau de l'Arc has been followed by Fabrice Zumbrunnen since June 2023. So I will hand over to Fabrice to explain you in detail the Reseau de l'Arc.

Thank you, Antoine. Hello, everyone. Nice to be with you for this call. Let's try to explain shortly what we are doing in this region. In fact, we have a very broad offer of services -- health services with hospitals, outpatient centers, even psychological facilities, elderly care homes, radiology pharmacy and something very important for us, we have our own hospital at [ home and care ] at home organization. Our goal is, as Antoine say, to have an integrated care solution. We think that we have something unique to offer and it's reality from the first January of this year, and we have until now and -- learned a lot about our processes, and we are quite convinced that we will be able to have a very positive impact on costs, but also on quality. As you know, in the Health sector, we are organized in the main silos. And our goal is to be focused on the customer journey, or the patient journey. I say customer journey because we speak of members. These are members. If you can show the next slide, please, Antoine. So -- and the reason is that in a capitation model, you have money for every patient, and you can ask yourself what are the measures that we have to take, what are the right sources. And for the first time, you can -- we can integrate the question of prevention. So to make the right measure -- the right decision for our members. And it's very fascinating just to observe that for many of our members, it's the first time, but they are asked what you can do and also know what they can do for their own health. And we think that we have a huge, huge potential and we are able to reduce the length of stay for many chronic patients and the first results are very encouraging. Next slide, please. Okay. It's your part. Maybe if I can emphasize that we learn every day. And in fact, not just our members are willing to become new offers, but we see that it has a very positive effect on the whole organization of our Reseau de l'Arc. We have 1,500 members and can say is it a lot or -- not so many people. In fact, in these regions we have 50,000 inhabitants and only 10,000 have changed the insurance model. That is to say that 50% of the people in the 3 regions have chosen a new product. And it's a very interesting first step. And we are now trying to enlarge our footprint with many collaborations with other physicians, with outpatient center, which don't belong to Reseau de l'Arc, but it's very important because we will reach more members the next year. So very encouraging, and we are preparing the next regions. That's all for my part. Antoine?

Thank you, Fabrice. So the next slide. We did organizational restructuring in -- within Swiss Medical Network to allow also to develop this integrated care. As you know, for integrated care we need to have primary care, so doctor's office, group practice, radiology, diagnostic, maybe even pharmacy. To be able to structure that, we separate the group Swiss Medical Network in 2 sub-holdings. So Swiss Medical Network will be holding for hospital and clinic only, so for everything which is inpatient and we create a second sub-holding, SMN Ambulatory Services SA, where we will have all the medical center, the primary care and also all the accessory activities that are necessary. That's only an internal modification. But the 2 activities are slightly different, also working with different tariffication. As you know, hospital working with the DRG system and Ambulatory is working mostly with TARMED and now the new TARDOC, which is also only for ambulatory. It does not change anything to the shareholding. So 80% Aevis, 8.9% MPT and 11.1% Visana. Hospital outlook. So we will continue to invest for this integrated care, as I say. We have an acquisition pipeline for primary care. We are focusing on primary care for our acquisition. And also we are working on efficiency and employee program. In Healthcare, we also have this Genolier Innovation Hub. So the Genolier -- on the Genolier Healthcare campus, the construction work of Genolier Innovation Hub has been completed in Q1, but still we need to finish the garden on the roof. There are some internal construction still needed. Inauguration of this Genolier Innovation Hub is planned for September 2024, but the first tenant have already moved in. Accuray and GE Healthcare are the 2 first tenants that moved in. It will be a hub for health care company that want to work alongside our doctors and patients in a real health care environment. The idea is to create dynamic and collaborative environment between those companies. We will offer infrastructure and services. So a conference center with 300 seat conference room, also education room and research and development infrastructure. The idea is to have a true novel transfer between researchers, clinicians and the real world. So as soon as possible to be able to use that for the patient. The Hospitality segment. We have now 11 hotels, 1 in U.K., 10 in Switzerland. Average room rate in 2023 was CHF 559. It has been slightly diluted with 2 new small hotel: Tascherhof in Tasch; and Adula in Flims. Around 1,000 employees in hospitality. The number of employees is changing along the season. We have more than 1,170 rooms in operation, did 291,000 overnight stay and 10.3% revenue growth in 2023. Since 2014, so we regularly increased revenue and profitability with, of course, a bump during the COVID period, so 2021 with a strong decrease of the profitability. And now we have a stable profitability around 21%, 20%. The slight decrease in '23 is due to the addition of these 2, Tascherhof and Adula in 2023. Maybe some case study. So we took over Victoria-Jungfrau in 2014. Within Victoria-Jungfrau there was the Victoria-Jungfrau Grand Hotel & Spa, and that is in Interlaken and Zurich. So we -- the Victoria-Jungfrau had a 8-year CapEx cycle because we renovate all the room. We also have now a new outdoor pool area in the back of the hotel since last summer. We did launch also a very big Kids Club for every age, 269 square meter. We also opened a small gourmet restaurant Radius with 17 points, [ GaultMillau ]. We achieved the highest revenue in its history in 2023 with more than CHF 46.5 million turnover. And since 2014, we increased the average room rate from CHF 356 to CHF 653 last year. La Reserve Eden au Lac. We did operate La Reserve without investing from 2014 to 2017. In 2017, La Reserve Eden au Lac has been closed. So -- Eden au Lac has been closed and reopened in 2020 under La Reserve brand. Of course, 2020, 2021 were difficult years with COVID. Now, since '22 and '23, the hotel is working very well. We increased the turnover from CHF 7 million to CHF 19 million last year -- CHF 19.5 million, and the average room rate was CHF 391 in 2017 and reached CHF 1,128 in 2023. There is only 40 rooms in the La Reserve Eden au Lac, so that's why we can reach so high average room rate. The outlook in Hospitality. We will continue to harmonize the standing and the process of our hotels in line with the MRH strategy. We will have a very strategic acquisition approach and mostly in abroad because we want to extend the international footprint of La Reserve. To retain the best employees, it's very important to be able to give them the opportunity to have also experience abroad if we don't want to lose them for Hilton, Four Seasons or such international brand. Zermatt has a very high potential. We will still do further improvement in the F&B offering and the hotel positioning. We have 4 hotels in Zermatt: Petit Cervin; the Mont Cervin Palace; the Monte Rosa; and the Schweizerhof. And we are going to create high-end service residents. We own more than 20 apartments in Zermatt that will be refurbished and then serviced by La Reserve and put on the market in 2025. The real estate portfolio. We start with Swiss Hotel Properties, so 100% investment of Aevis. The market value of hotel properties is CHF 858 million. 27 properties has CHF 24.2 million revenue. Out of the CHF 24.2 million revenue, a little more than CHF 3 million is from third-parties, so retail space. We -- in Zermatt, we have [indiscernible] as a tenant. We have several brands also. We opened Loro Piana in Zermatt, was very successful this winter season. It was supposed to be a pop up, but it will be a definitive implantation of Loro Piana. With less than 50% LTV in Swiss Hotel Properties, a total of 131,000 square meter rental surface, and we have a 30,000 square meter land that we can develop further. The portfolio is La Reserve Eden au Lac in Zurich, Victoria-Jungfrau, Hotel Adula in Flims, Hotel Mont Cervin, AlpenGold in Davos, Schweizerhof in Zermatt, Petit Cervin in Zermatt, Monte Rosa, L'Oscar, Schweizerhof, I already said, Tascherhof in Tasch and the land is located in Zermatt, Tasch, Interlaken, Crans Montana and Kusnacht. We only have a prime location and what's missing is also L'Oscar in London. L'Oscar is located in -- next to Covent Garden in Holborn. There is no CapEx backlog in our hotel, except for the 2 last acquisitions, Hotel Adula and Tascherhof. But all the hotels are in a very good shape and with a rental agreement -- long-term rental agreement with MRH Switzerland. 40% of the portfolio value is in Zermatt, 31% in Interlaken, 11% Zurich, 10% that was London, Flims and other. We have a solid equity basis, slightly increased from 40.5% to 41%. LTV is 47.1%. We also had steady growth in the rental income due to a rotation in the retail. We replace some retailer with more high-end retailer with higher rent. And so we are still -- we have still a lot of potential. Infracore. We own 30% of Infracore and 50% of voting rights. Portfolio is CHF 1.3 billion, 47 properties, including the development project at CHF 59.6 million revenue, CHF 56.8 million EBITDA, a total of 206,000 square meter. We increased the footprint with the construction of, for instance, the Genolier Innovation Hub. The LTV is under 50% also. This is our portfolio with the last addition, the Genolier Innovation Hub. Infracore is a leading health care infrastructure platform. And I think that with the positive interest rate, we will have opportunity also to grow in the public market because the public hospital has been able to finance their investment with very low rates in the past, but this period is over. So there will be a market opportunity for Infracore. We also worked a lot of decarbonization, and we want to decrease the ecological footprint and focusing on energy management and savings. By canton, we are in terms of Vaud 28%; Zurich 20%; Geneva 17.5%; Ticino, 12.6%; and [ Valais ], Fribourg, Aargau, Solothurn, Bern, Schaffhausen and Neuchatel. The increase from 2018 from CHF 852 million market value to CHF 1.3 billion is due to increase of the square meter, the footprint. It's not an increase in the price per square meter, but an increase of the number of square meters. Also 40.5% equity, LTV, 48% and a very stable rental income. The rental income will increase in the next year with the Genolier Innovation Hub, who will produce the full rent potential after 3 years. Outlook in infrastructure. We want to sell some non-core assets. Like we have Hangar on the Sion Airport. We have some also apartments where doctors are located. So we will sell some non-core assets. We will build up this service apartment offering, starting with Zermatt. But the service apartment is something that we aim to develop further in other cities. And we will for Infracore make a capital increase in the short-term to be able to take opportunity in the public hospital market this year and next year. The group performance, so the statutory key figures. Total income in '23 is only CHF 15 million. That's the dividend income from infrastructure. So we make a net loss at the statutory level of CHF 8 million. We have a total asset of CHF 800 million. That's the book value of the assets. The market value of the asset are over CHF 2 billion. Interest-bearing debt is CHF 143 million. And the total equity is CHF 549 million. Income statement. The consolidated income statement is not very representative in an investment company since we have a lot of also minority investments. We decreased the revenue due to deconsolidation of Reseau de l'Arc and no M&A transaction that affect the P&L. So the consolidated turnover is CHF 953 million, net CHF 833 million after a deduction of the medical fees, the doctor's fees. EBITDAR, CHF 119 million, 14.4%. EBITDA, CHF 40 million. And after depreciation and amortization we are in Swiss GAAP. We are not in IFRS. So we depreciate and amortize. We don't do impairment like in IFRS and so we have a negative EBIT of CHF 21.5 million. Balance sheet. Total equity is CHF 538 million. The total balance sheet is slightly same as last year with CHF 1.8 billion. 29% equity and 54% leverage ratio. So for the conclusion, I'm going to hand over to Fabrice again, who's going to drive the company since the 1st May, '24. And for my part, I thank you, and we will take questions after Fabrice's conclusion.

Thank you, Antoine. So I'm really looking forward to become the CEO of Aevis Victoria. But I think it's very important for you to know that as a Board member of Swiss Medical Network on one side and as a Board member of Michel Reybier Hospitality, I had the pleasure to be in touch with all managers of the group. I know every project, thanks -- close collaboration with Antoine Hubert on one time and with Michel Reybier. That is to say that it won't be an observation phase with the official start in May. And I'm already part of -- if I take the example of the cost measure that we already implemented. So it's very important for me that there is a continuity on one side, very close collaboration with Antoine with the clear goal that we want to reach better results in the Health sector. It is important for me to precise that we have made very important investments, Genolier Innovation Hub and in our integrated care project, it costed something, but it's -- on this base that we will reach new levels. For the rest, the strategy outlook is rather continuity. So we'll still -- we think, but there are many investment opportunities, but only in the field that are important for us. I would like to mention that our ambition, it's not just about brick-and-mortar, but about digitization of the integrated care model. It's the reason why our participations in Well and in Benecura are particularly important for us. For example, we have an own app for our VIVA members. It's something that we create value. We are quite confident of this because we are convinced that for the rest of the Health sector as business, there is only this integrated care way, and we would like to be not only the first one, but to be at -- a pioneer in that phase, in that field. So we are really looking forward to develop our projects, but it's something also very important for me to work very -- in very close way with our main shareholders. And I am looking forward to answer your questions. And as I said, we have a very promising start in this year and -- but we know that we have other measures that we have to implement and in order to reach the results or the margin that we had in the past. Thank you for your listening or your attention. And I think that's now the start of the Q&A part. Thank you.

Thank you, Fabrice.

[Operator Instructions] And the first question comes from Baptiste de Leudeville, Kepler Cheuvreux.

My first question is on the -- well, on the topic of net and financing. You have around CHF 1 billion debt sitting on the balance sheet. I would like to -- is it possible to have the composition of this debt according to holding and the companies? And I would like also to know if there is any covenants on the debt of Swiss Medical Networks? And what are your targets in terms of LTV for the infrastructure businesses, for me to more assess the risk on that? That's the first question. You can answer it and then I will follow up on the other questions, if you like.

Yes. Thank you, Baptiste. So in the infrastructure companies, so both Infracore and Swiss Hotel Properties, Infracore is not consolidated. Swiss Hotel Properties is consolidated. In both companies, we have less than 50% LTV. So based on the total portfolio, that means for Swiss Healthcare Properties, we have some CHF 430 million mortgages debt. Then we have CHF 250 million, we have this revolving credit at Swiss Medical Network. It's maximum CHF 250 million. We also have leasing at Swiss Medical Network level. So total CHF 300 million. The net debt that Swiss Medical Network at the end of 2023 was around CHF 160 million. At the holding level, we have CHF 100 million -- we had CHF 110 million bank debt at the end of 2023. And that's it. So that's the composition of the debt. And the Infracore debt is not consolidated and correspond to this 47% or 48% of the portfolio.

And regarding -- you say you're still in the investment phase. You want to continue to invest. You see market opportunities in different -- in several fields. You also need to implement globally in Switzerland your integrated care model. So I mean, what is -- what's going to be the way for deleveraging? I understand that's -- well, the first obvious way would be further deconsolidation of your participation in Swiss Medical Network. Can -- I mean in the next [ few ] years, can you confirm that?

Yes. So as we said, as Aevis we want to be mostly focusing on large minority shareholding. So we plan to decrease our shareholding in Swiss Medical Network from 80% now to some 40% in the 3 next year. It's going to be done with a strategic investor, as we did with Visana. We don't want a pure finance investor. We really want long-term investor in health care. So we plan to slightly decrease our participation. Also, the financing in Swiss Medical Network will be in the ambulatory service with more equity. We will have partners that will invest in this branch, SMN Ambulatory Service, strategic partner like a provider or a subcontractor. So that's for the Healthcare branch. And we do not exclude also further capital increase as we did last year with Visana Beteiligungen. So probably in the next 3 years it's going to be a mix in primary [ emission ] at Swiss Medical Network and secondary placement, that means capital increase and also Aevis selling some share. We are in discussion with several potential strategic partner for this. On the hotel level, as we said, we focus on consolidating what we have now. We will make some divestments, especially on -- with the land. We are not going to build all the land that we have at Swiss Hotel Properties. So we are developing projects, and we are going to sell the land with the project. Also, the service apartment, we plan to sell this service apartment. So in Zermatt, we know that there is a very strong demand for such products. So that's how we are going to finance. And also, we do not exclude to make a capital increase at the holding level. Of course, we will not do that at the current share price because we think that it's heavily underestimated. And so it would be done only when the share price will -- closer than the net asset value of the sum-of-the-part of the company.

And last question on dividends. You will not -- you do not intend to pay out dividends this year, if I'm not mistaken? Should we expect that you will stop to pay -- you will pause -- you will stop to pay at least on probably for the next, let's say, 2-3 years' dividends?

We paused for this year. So for sure, with the higher interest rate, we want to keep the most cash possible within the company. And we will analyze the situation further. So the idea is not to pause for several years. It's to pause as long as it's needed to be in a strong position. We will focus also this year with now the new interest rate curve to have longer maturity in the financing, in the mortgages. By instance, we started already in December '23 to fix some mortgages. We fixed in -- by Infracore, we fixed some mortgages on 7-year at 1.7% in December. Then in January, the interest rate -- long-term interest rates went up. And now since the Swiss National Bank at the rate they are descending. So we will move further to have more long-term interest rate to be on the safe side.

At the moment, there seem to be no further questions. [Operator Instructions] There are no further questions from the audience. So I would like to hand the floor back for closing remarks.

So thank you very much for your attention. And as you have seen, we will be more person involved in the management. So we will be more than happy to make a one-to-one meeting with the interested parties. So me and Fabrice, we are already available since now, even if formerly Fabrice is starting on the 1st May, is in the Board of Directors of the 2 main subsidiaries, so he can also talk. And of course, Michel Keusch will be available since the 1st June, 2023 -- '24 to also have meetings with potential investor, existing investors, and we want to really increase the relationship with our investors, with the market in the following months. We will also organize Capital Day -- Capital Markets Day probably in this fall in Genolier Innovation Hub. Thank you, everybody, and have a nice day. I'm looking forward for further contact. Thank you.