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07.05.2024 06:31:08 - dpa-AFX: EQS-Adhoc: PSP Swiss Property achieves solid operating results and improves the ebitda guidance for the 2024 business year. (english)
PSP Swiss Property achieves solid operating results and improves the ebitda
guidance for the 2024 business year.
PSP Swiss Property AG / Key word(s): Quarter Results
PSP Swiss Property achieves solid operating results and improves the ebitda
guidance for the 2024 business year.
07-May-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Quarterly results as per 31 March 2024
Real estate market
PSP Swiss Property's portfolio reflects a sub-segment of the commercial
property market in Switzerland: quality properties in central locations in
the main economic centres. The demand for attractive rental space remained
intact in this segment, 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.
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. However, investors are demanding
higher returns than in the past for properties in peripheral locations and
for properties with poor sustainability profiles.
Real estate portfolio
At the end of Q1 2024, the value of the real estate portfolio was CHF 9.6
billion (end of 2023: CHF 9.6 billion), the vacancy rate was 4.1% (end of
2023: 3.6%). The portfolio included 162 investment properties. In addition,
there were two sites and eight development projects. No investment
properties were bought or sold in the reporting period. The last residential
unit in the 'Residenza Parco Lago' development in Lugano/Paradiso was sold
for CHF 3.5 million. No development projects were bought or sold.
An internal value analysis as at the end of March 2024 led to a revaluation
by the independent external valuation expert totalling CHF 31.2 million. The
revaluation was based on property-specific factors of the investment
properties Bahnhofstrasse 28a / Waaggasse 6, Bahnhofstrasse 66 and
Waisenhausstrasse 2, 4 / Bahnhofquai 7 (all in Zurich) and the development
project at Hochstrasse 16 / Pfeffingerstrasse 5 in Basel.
Of the lease contracts maturing in 2024 (CHF 31.3 million), 14% were open at
the end of Q1 2024. The wault (weighted average unexpired lease term) of the
total portfolio was 4.8 years at the end of Q1 2024. The wault of the ten
largest tenants, contributing 25% to the rental income, was 5.5 years.
Consolidated quarterly results
Rental income was up by CHF 8.0 million or 9.9% to CHF 89.2 million (Q1
2023: CHF 81.1 million). The following factors in particular had a positive
impact on rental income compared to the previous year's period: the
'Westpark' office property in Zurich-West purchased mid-2023 (CHF +2.2
million), turnover-linked rent of a single tenant (CHF +1.3 million),
one-off effect (CHF +1.3 million), indexation (CHF +1.1 million).
Like-for-like, rental income was up 6.6%; adjusted for two one-off effects
mentioned above (turnover-linked rent of a single tenant and one-off
effect), like-for-like growth amounted to 3.3%.
The operating result, i.e. net income excluding gains/losses on real estate
investments, 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 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 to the portfolio
appreciation of CHF 31.2 million mentioned above (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).
Capital structure
With total equity of CHF 5.302 billion at the end of March 2024 -
corresponding to an equity ratio of 54.5% - the equity base remains strong
(end of 2023: CHF 5.221 billion or 53.3%). Interest-bearing debt capital
amounted to CHF 3.316 billion or 34.1% of total assets (end of 2023: CHF
3.466 billion or 35.4%). At the end of March 2024, the passing average cost
of debt was 1.01% (end of 2023: 0.91%). The average fixed interest rate was
4.0 years (end of 2023: 3.9 years).
At the time of publication of this report, PSP Swiss Property had CHF 0.975
billion in open credit facilities, of which CHF 0.675 billion were
committed.
PSP Swiss Property has an Issuer Rating A3 and a Senior Unsecured Rating A3
(outlook stable) from Moody's.
Sustainability - Green Bond Report
In November 2022, the Green Bond Framework was introduced and presented.
Detailed information on its implementation can be found in the Green Bond
Report (2nd edition) published on 7 May 2024 which is available at
www.psp.info. The Green Bond Report is published annually as part of the Q1
publication.
Subsequent events
Based on the resolution of the Annual General Meeting on 4 April 2024, a
payment of an ordinary dividend of CHF 3.85 gross per share (totalling CHF
176.6 million) was made on 10 April 2024 (previous year: CHF 3.80 gross per
share totalling CHF 174.3 million).
On 10 April 2024, a 1.65 % bond (green bond, all-in 1.691 %, spread of 52
basis points) with a volume of CHF 100 million and a maturity in October
2032 was issued.
Outlook
In the market segment relevant to PSP Swiss Property, especially in the
economic centres Zurich and Geneva, demand for office and retail space is
expected to remain intact. The Berne letting market remains stable, whereas
the market in Basel is more difficult.
Rental income in the 2024 business year is expected to be higher than in
2023. This is in part due to the indexation of rental agreements. There will
also be additional income from turnover-linked leases which recovered after
the corona pandemic. Furthermore, additional rental income from new lettings
in the development projects is expected. Income from the sale of development
projects and condominiums is expected to decrease compared to last year,
while operating costs will remain stable. Financial expenses will increase
compared to 2023.
Ebitda excluding gains/losses on real estate investments is now expected to
be CHF 300 million for the 2024 financial year (previous guidance: above CHF
295 million; 2023: CHF 297.7 million). The vacancy rate is still expected to
be below 4% at the end of 2024 (end of 2023: 3.6%).
Kennzahlen
==========
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 'Net income excluding gains/losses on real estate investments' corresponds
to the net income excluding net changes in fair value of the real estate
investments, net income on sales of investment properties and all of the
related taxes. Income from the sale of properties which were developed by
the Company itself is, however, included in the 'net income excluding
gains/losses on real estate investments'.
4 Excluding debt capital of CHF 100 million invested as a short-term
fixed-term deposit: 34.7%.
5 Based on average number of outstanding shares.
6 For the 2023 business year. Cash payment was made on 10 April 2024.
7 Based on number of outstanding shares.
Further information
Giacomo Balzarini, CEO · Phone +41 (0)44 625 59 59 · Mobile +41 (0)79 207 32
40
Vasco Cecchini, CCO & Head IR · Phone +41 (0)44 625 57 23 · Mobile +41 (0)79
650 84 32
Report and presentation are available on
www.psp.info/en/downloads
Today, 9:30am (CET): Conference call
Pre-registering (required) here.
PSP Swiss Property - leading Swiss real estate company
PSP Swiss Property owns a real estate portfolio of CHF 9.6 billion in
Switzerland's main economic areas; its market capitalisation amounts to CHF
5.3 billion. The 98 employees are based in Basel, Geneva, Zug and Zurich.
PSP Swiss Property has been listed on the SIX Swiss Exchange since March
2000 (symbol: PSPN, security number: 1829415, ISIN CH0018294154).
News Source: PSP Swiss Property AG
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End of Inside Information
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End of Announcement EQS News Service
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1896937 07-May-2024 CET/CEST
guidance for the 2024 business year.
PSP Swiss Property AG / Key word(s): Quarter Results
PSP Swiss Property achieves solid operating results and improves the ebitda
guidance for the 2024 business year.
07-May-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Quarterly results as per 31 March 2024
* At the end of Q1 2024, the real estate portfolio had a value of CHF 9.6
billion and a vacancy of 4.1% (end of 2023: CHF 9.6 billion; 3.6%).
* Equity was CHF 5.3 billion, corresponding to an equity ratio of 54.5%
(end of 2023: CHF 5.2 billion; 53.3%).
* Rental income increased by 9.9% to CHF 89.2 million (Q1 2023: CHF 81.1
million).
* The operating result, i.e., net income excluding gains/losses on real
estate investments, grew by 0.6% to CHF 56.6 million (Q1 2023: CHF 56.3
million).
* Improved guidance: ebitda excluding gains/losses on real estate
investments for the 2024 financial year is now expected to be CHF 300
million (previous guidance: above CHF 295 million).
Real estate market
PSP Swiss Property's portfolio reflects a sub-segment of the commercial
property market in Switzerland: quality properties in central locations in
the main economic centres. The demand for attractive rental space remained
intact in this segment, 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.
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. However, investors are demanding
higher returns than in the past for properties in peripheral locations and
for properties with poor sustainability profiles.
Real estate portfolio
At the end of Q1 2024, the value of the real estate portfolio was CHF 9.6
billion (end of 2023: CHF 9.6 billion), the vacancy rate was 4.1% (end of
2023: 3.6%). The portfolio included 162 investment properties. In addition,
there were two sites and eight development projects. No investment
properties were bought or sold in the reporting period. The last residential
unit in the 'Residenza Parco Lago' development in Lugano/Paradiso was sold
for CHF 3.5 million. No development projects were bought or sold.
An internal value analysis as at the end of March 2024 led to a revaluation
by the independent external valuation expert totalling CHF 31.2 million. The
revaluation was based on property-specific factors of the investment
properties Bahnhofstrasse 28a / Waaggasse 6, Bahnhofstrasse 66 and
Waisenhausstrasse 2, 4 / Bahnhofquai 7 (all in Zurich) and the development
project at Hochstrasse 16 / Pfeffingerstrasse 5 in Basel.
Of the lease contracts maturing in 2024 (CHF 31.3 million), 14% were open at
the end of Q1 2024. The wault (weighted average unexpired lease term) of the
total portfolio was 4.8 years at the end of Q1 2024. The wault of the ten
largest tenants, contributing 25% to the rental income, was 5.5 years.
Consolidated quarterly results
Rental income was up by CHF 8.0 million or 9.9% to CHF 89.2 million (Q1
2023: CHF 81.1 million). The following factors in particular had a positive
impact on rental income compared to the previous year's period: the
'Westpark' office property in Zurich-West purchased mid-2023 (CHF +2.2
million), turnover-linked rent of a single tenant (CHF +1.3 million),
one-off effect (CHF +1.3 million), indexation (CHF +1.1 million).
Like-for-like, rental income was up 6.6%; adjusted for two one-off effects
mentioned above (turnover-linked rent of a single tenant and one-off
effect), like-for-like growth amounted to 3.3%.
The operating result, i.e. net income excluding gains/losses on real estate
investments, 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 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 to the portfolio
appreciation of CHF 31.2 million mentioned above (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).
Capital structure
With total equity of CHF 5.302 billion at the end of March 2024 -
corresponding to an equity ratio of 54.5% - the equity base remains strong
(end of 2023: CHF 5.221 billion or 53.3%). Interest-bearing debt capital
amounted to CHF 3.316 billion or 34.1% of total assets (end of 2023: CHF
3.466 billion or 35.4%). At the end of March 2024, the passing average cost
of debt was 1.01% (end of 2023: 0.91%). The average fixed interest rate was
4.0 years (end of 2023: 3.9 years).
At the time of publication of this report, PSP Swiss Property had CHF 0.975
billion in open credit facilities, of which CHF 0.675 billion were
committed.
PSP Swiss Property has an Issuer Rating A3 and a Senior Unsecured Rating A3
(outlook stable) from Moody's.
Sustainability - Green Bond Report
In November 2022, the Green Bond Framework was introduced and presented.
Detailed information on its implementation can be found in the Green Bond
Report (2nd edition) published on 7 May 2024 which is available at
www.psp.info. The Green Bond Report is published annually as part of the Q1
publication.
Subsequent events
Based on the resolution of the Annual General Meeting on 4 April 2024, a
payment of an ordinary dividend of CHF 3.85 gross per share (totalling CHF
176.6 million) was made on 10 April 2024 (previous year: CHF 3.80 gross per
share totalling CHF 174.3 million).
On 10 April 2024, a 1.65 % bond (green bond, all-in 1.691 %, spread of 52
basis points) with a volume of CHF 100 million and a maturity in October
2032 was issued.
Outlook
In the market segment relevant to PSP Swiss Property, especially in the
economic centres Zurich and Geneva, demand for office and retail space is
expected to remain intact. The Berne letting market remains stable, whereas
the market in Basel is more difficult.
Rental income in the 2024 business year is expected to be higher than in
2023. This is in part due to the indexation of rental agreements. There will
also be additional income from turnover-linked leases which recovered after
the corona pandemic. Furthermore, additional rental income from new lettings
in the development projects is expected. Income from the sale of development
projects and condominiums is expected to decrease compared to last year,
while operating costs will remain stable. Financial expenses will increase
compared to 2023.
Ebitda excluding gains/losses on real estate investments is now expected to
be CHF 300 million for the 2024 financial year (previous guidance: above CHF
295 million; 2023: CHF 297.7 million). The vacancy rate is still expected to
be below 4% at the end of 2024 (end of 2023: 3.6%).
Kennzahlen
==========
Key financial figures Unit 2023 Q1 Q1 +/--
2023 2024 1
Rental income CHF 1 331 81 89 182 9.9-
000 905 135 %
EPRA like-for-like change % 5.1 4.0 6.62
Net changes fair value real estate CHF 1 -161 0 31 210
investments 000 261
Income from property sales CHF 1 14 012 938 568
(inventories) 000
Income from property sales CHF 1 910 910 0
(investment properties) 000
Total other income CHF 1 7 000 628 555
000
Net income CHF 1 207 57 80 990 42.-
000 595 024 0%
Net income excl. real estate gains3 CHF 1 339 56 56 615 0.6-
000 213 283 %
Ebitda excl. real estate gains CHF 1 297 69 76 722 9.8-
000 742 901 %
Ebitda margin % 84.4 84.5 85.0
Total assets CHF 1 9 786 9 726 -0.-
000 900 094 6%
Shareholders' equity CHF 1 5 220 5 302 1.6-
000 722 390 %
Equity ratio % 53.3 54.5
Return on equity % 4.0 6.2
Interest-bearing debt CHF 1 3 465 3 315 -4.-
000 833 731 3%
Interest-bearing debt in % of total % 35.44 34.1
assets
Portfolio key figures
Number of investment properties Number 162 162
Carrying value investment CHF 1 9 046 9 081 0.4-
properties 000 911 137 %
Implied yield, gross % 3.6 3.9
Implied yield, net % 3.2 3.5
Vacancy rate (CHF) % 3.6 4.1
Number of sites and development Number 11 10
properties
Carrying value sites and CHF 1 560 566 1.0-
development properties 000 582 194 %
Headcount
Employees/FTE Number 101/90 98/87
Per share figures
Earnings per share (EPS)5 CHF 4.53 1.24 1.77 42.-
0%
EPS excl. real estate gains5 CHF 7.40 1.23 1.23 0.6-
%
EPRA EPS5 CHF 7.17 1.21 1.23 1.3-
%
Distribution per share CHF 3.856 n.a. n.a.
Net asset value per share (NAV)7 CHF 113.82 115.60 1.6-
%
NAV before deduction of deferred CHF 134.48 136.53 1.5-
taxes7 %
EPRA NRV7 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 'Net income excluding gains/losses on real estate investments' corresponds
to the net income excluding net changes in fair value of the real estate
investments, net income on sales of investment properties and all of the
related taxes. Income from the sale of properties which were developed by
the Company itself is, however, included in the 'net income excluding
gains/losses on real estate investments'.
4 Excluding debt capital of CHF 100 million invested as a short-term
fixed-term deposit: 34.7%.
5 Based on average number of outstanding shares.
6 For the 2023 business year. Cash payment was made on 10 April 2024.
7 Based on number of outstanding shares.
Further information
Giacomo Balzarini, CEO · Phone +41 (0)44 625 59 59 · Mobile +41 (0)79 207 32
40
Vasco Cecchini, CCO & Head IR · Phone +41 (0)44 625 57 23 · Mobile +41 (0)79
650 84 32
Report and presentation are available on
www.psp.info/en/downloads
Today, 9:30am (CET): Conference call
Pre-registering (required) here.
Agenda
Publication H1 2024 · 20 August 2024
Publication Q1-Q3 2024 · 12 November 2024
Publication FY 2024 · 25 February 2025
Annual General Meeting 2025 · 3 April 2025
Publication Q1 2025 · 13 May 2025
Publication H1 2025 · 19 August 2025
Publication Q1-Q3 2025 · 11 November 2025
PSP Swiss Property - leading Swiss real estate company
PSP Swiss Property owns a real estate portfolio of CHF 9.6 billion in
Switzerland's main economic areas; its market capitalisation amounts to CHF
5.3 billion. The 98 employees are based in Basel, Geneva, Zug and Zurich.
PSP Swiss Property has been listed on the SIX Swiss Exchange since March
2000 (symbol: PSPN, security number: 1829415, ISIN CH0018294154).
News Source: PSP Swiss Property AG
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End of Inside Information
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Language: English
Company: PSP Swiss Property AG
Kolinplatz 2
6300 Zug
Switzerland
Phone: +41417280404
Fax: +41417280409
E-mail: info@psp.info
Internet: www.psp.info
ISIN: CH0018294154
Valor: 1829415
Listed: SIX Swiss Exchange
EQS News ID: 1896937
End of Announcement EQS News Service
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1896937 07-May-2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
PSP N | A0CA16 | Schweiz | 117,200 | 05.07.24 22:05:00 | -0,200 | -0,17% | 115,000 | 118,000 | 117,700 | 117,200 |
