EPIC Suisse (EPIC) H1 2024 earnings summary

Executive summary

• Rental income for H1 2024 was CHF 32.6 million, nearly unchanged from H1 2023's CHF 32.9 million, reflecting stable operations after prior growth phases.

• Reported vacancy rate remained low at 4.8% in H1 2024, slightly up from 4.4% in H1 2023, with a long WAULT of 7.9 years.

• Real estate portfolio value rose by 2.8% to CHF 1.58 billion, driven by investments in developments and a net unrealised revaluation gain of CHF 8.7 million.

• EBITDA excluding revaluation was CHF 26.1 million, marginally down from CHF 26.5 million in H1 2023.

• Delivered solid results in H1 2024, consolidating prior growth and advancing development projects, with a focus on maintaining healthy fundamentals for future expansion.

Financial highlights

• Net gain from property revaluation was CHF 8.7 million in H1 2024, compared to a loss of CHF 5.9 million in H1 2023.

• Profit including revaluation effects doubled to CHF 22.9 million (H1 2023: CHF 11.2 million); profit excluding revaluation effects was CHF 19.9 million (down 4.5% year-over-year).

• Net operating income (NOI) was CHF 30.3 million, with NOI margin above 90%.

• Net rental income yield of properties in operation was 4.5% (H1 2023: 4.6%).

• Earnings per share including revaluation effects rose to CHF 2.22 (H1 2023: CHF 1.09).

• Dividend per share increased to CHF 3.10, yielding 4.7%.

Outlook and guidance

• Full-year 2024 net rental income is expected to remain robust and in line with the previous year, assuming no material adverse impacts.

• Next significant rental income uplift anticipated from lettings at PULSE and Campus Leman (Building C) developments.