Quarterly report Q1
2024
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Quarterly report Q1 2024 PSP Swiss Property
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Contents
6 Key figures
- Q1 2024 report
- Portfolio summary
- Financial statements
- Additional information
- Contacts and important dates
- 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 % | |||||||
- Change to previous year's period 1 January to 31 March 2023 or to carrying value as of 31 December 2023 as applicable.
- Adjusted for two one-off effects: 3.3%.
- See definition on page 42, note 9.
- Excluding debt capital invested as fixed-term deposit totalling CHF 100 million: 34.7 %.
- For investment properties.
- Equals the lost rental income in % of the potential rent, as per reporting date.
- Based on average number of outstanding shares.
- For the 2023 business year. Cash payment was made on 10 April 2024.
- 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 %).
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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.
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PSP Swiss Property AG published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 04:36:08 UTC.