PSP Swiss Property : Quarterly report Q1 2024

Quarterly report Q1

 2024

2

Quarterly report Q1 2024 PSP Swiss Property

3

4

Contents

6 Key figures

1. Q1 2024 report

1. Portfolio summary

1. Financial statements

1. Additional information

1. Contacts and important dates
2. Customer care

Contents 5

Key figures

Key financial figures		Unit	2023		Q1 2023	Q1 2024			+/-1
Rental income		CHF 1 000	331 905	81 135	89 182			9.9 %
EPRA like-for-like change	%	5.1		4.0		6.6	2
Net changes in fair value of real estate investments		CHF 1 000	- 161 261	0		31 210
Income from property sales (inventories)		CHF 1 000	14 012	938		568
Income from property sales (investment properties)		CHF 1 000	910		910		0
Total other income		CHF 1 000	7 000	628		555
Net income		CHF 1 000	207 595	57 024	80 990			42.0 %
Net income excluding gains/losses on real estate investments3		CHF 1 000	339 213	56 283	56 615			0.6 %
Ebitda excluding gains/losses on real estate investments3		CHF 1 000	297 742	69 901	76 722			9.8 %
Ebitda margin	%		84.4		84.5		85.0
Total assets		CHF 1 000	9 786 900			9 726 094			- 0.6 %
Shareholders' equity		CHF 1 000	5 220 722			5 302 390			1.6 %
Equity ratio	%		53.3				54.5
Return on equity	%		4.0				6.2
Interest-bearing debt		CHF 1 000	3 465 833			3 315 731			- 4.3 %
Interest-bearing debt in % of total assets	%		35.44			34.1
Portfolio key figures
Number of investment properties		Number	162				162
Carrying value investment properties		CHF 1 000	9 046 911			9 081 137			0.4 %
Implied yield, gross5	%	3.6	3.7		3.9
Implied yield, net5	%	3.2	3.3		3.5
Vacancy rate (CHF)5, 6	%	3.6			4.1
Number of sites and development properties		Number	11				10
Carrying value sites and development properties		CHF 1 000	560 582			566 194			1.0 %
Headcount
Employees		Number	101				98
Full-time equivalents		Number	90				87
Per share figures
Earnings per share (EPS)7		CHF	4.53	1.24		1.77			42.0 %
EPS excluding gains/losses on real estate investments3, 7		CHF	7.40	1.23		1.23			0.6 %
EPRA EPS7		CHF	7.17	1.21		1.23			1.3 %
Distribution per share		CHF	3.858	n.a.	n.a.
Net asset value per share (NAV)9		CHF	113.82			115.60			1.6 %
NAV per share before deduction of deferred taxes9		CHF	134.48				136.53			1.5 %
EPRA NRV9		CHF	137.10			139.18			1.5 %
Share price end of period		CHF	117.60				118.20			0.5 %

1. Change to previous year's period 1 January to 31 March 2023 or to carrying value as of 31 December 2023 as applicable.
2. Adjusted for two one-off effects: 3.3%.
3. See definition on page 42, note 9.
4. Excluding debt capital invested as fixed-term deposit totalling CHF 100 million: 34.7 %.
5. For investment properties.
6. Equals the lost rental income in % of the potential rent, as per reporting date.
7. Based on average number of outstanding shares.
8. For the 2023 business year. Cash payment was made on 10 April 2024.
9. Based on number of outstanding shares.

6 Key figures

Real estate portfolio

	9.1	9.4	9.6	9.6
8.6
3.0 %	3.8 %	3.0 %	3.6 %	4.1 %
2020	2021	2022	2023	Q1 2024

Portfolio value in CHF billion

Vacancy rate in %

Ebitda
278.8	293.8	297.7
			69.9	76.7
83.0%	83.9%	84.4%	84.5%	85.0%
2021	2022	2023	Q1 2023	Q1 2024

Ebitda excl. gains/losses on

real estate investments in CHF million

Ebitda margin in %

Shareholders' equity

	5.0	5.2	5.2	5.3
4.6
	12.4 %
6.5%		6.5 %	%	6.2%
			4.0
2020	2021	2022	2023	Q1 2024

Shareholders' equity in CHF billion

Return on equity in %

Composition of net income

373.9

	94.2
		339.2
221.1	235.7
			0.7	24.4
			56.3	56.6
		-131.6
2021	2022	2023	Q1 2023	Q1 2024

Net income excl. gains/losses on

real estate investments in CHF million

Contribution gains/losses on

real estate investments in CHF million

Key figures

7

Q1 2024 report

Our focus on top properties in top locations is proving itself: We achieved another solid business performance in Q1 2024.

Dear Shareholders and Readers

Business development

In our most important market segments, particularly in the business centres of Zurich and Geneva, the letting market for office and retail space remained intact in Q1 2024. As a result, the vacancy rate at the end of Q1 2024 was kept low at 4.1 % (end of 2023: 3.6 %).

In the reporting period, we successfully continued our ongoing construction projects. By the end of 2024, we will complete the two projects in Zurich "Füsslistrasse" and "The12" as well as the one at "Hochstrasse" in Basel; after completion, these properties will be reclassified into the investment portfolio.

We did not buy or sell any investment properties in Q1 2024. At the "Residenza Parco Lago" development in Paradiso, we sold the last unit.

We are pleased with our business development, and we are happy to report another strong operational result.

Operating profit (Ebitda excluding gains/losses on real estate investments) increased by CHF 6.8 million or 9.8% to CHF 76.7 million (Q1 2023: CHF 69.9 million). Not least due to our strict cost discipline, we achieved again a high Ebitda margin of 85.0 % (Q1 2023: 84.5 %).

8 Q1 2024 report

Swiss market environment

Letting market, office and retail

Our portfolio reflects a sub-segment of the commercial property market in Switzer­ land: quality properties in central locations in the main economic centres. As mentioned above, the demand for attractive rental space remained intact in this seg- ment, especially in the city centres of Zurich and Geneva. By contrast, the market for older office properties in B and C locations and non-food retail space in secondary locations remained challenging.

Investment market

The transaction market for attractive properties in good city-centre locations also hardly changed in terms of prices and initial yields in the reporting period. The asking yields for such investment opportunities remain low despite the higher interest rates.

Investors still prefer properties with high cash flow visibility.

However, investors are demanding higher returns than in the past for properties in peripheral locations and for properties with poor sustainability profiles.

Q1 2024 report

9

Consolidated quarterly results

Rental income increased by CHF 8.0 million or 9.9% to CHF 89.2 million in the reporting period (Q1 2023: CHF 81.1 million).

The operating result, i. e. net income excluding gains/losses on real estate investments1, increased by CHF 0.3 million or 0.6% to CHF 56.6 million (Q1 2023: CHF 56.3 million). The above-mentioned increase in rental income had a positive impact on earnings. On the other hand, higher operating expenses (+ CHF 0.7 million) and, in particular, higher financing costs (+ CHF 4.4 million) had a negative impact. However, it should be noted that financing costs were still low in relative terms, with an average cost of debt over the last four quarters of 0.85 % (Q1 2023: 0.41 %).

Earnings per share excluding gains/losses on real estate investments, which form the basis for the dividend distribution, amounted to CHF 1.23 (Q1 2023: CHF 1.23).

Net profit reached CHF 81.0 million (Q1 2023: CHF 57.0 million). The increase by CHF 24.0 million or 42.0 % was due in particular to the portfolio appreciation of CHF 31.2 million (Q1 2023: no appreciation or devaluation). Earnings per share amounted to CHF 1.77 (Q1 2023: CHF 1.24).

Equity per share (net asset value; NAV) amounted to CHF 115.60 at the end of Q1 2024 (end of 2023: CHF 113.82). NAV before deduction of deferred taxes totalled CHF 136.53 (end of 2023: CHF 134.48).

1 See definition on page 42, note 9.

10 Q1 2024 report