PSP Swiss Property (PSPN) Q2 2024 earnings summary

Executive summary

• EBITDA for H1 2024 reached CHF 152.3 million, up 1.2% year-over-year, with full-year EBITDA guidance confirmed at CHF 300 million.

• Net income rose 103.2% year-over-year to CHF 156.3 million, mainly due to portfolio revaluation gains and property sales.

• Rental income increased 7.9% to CHF 176.2 million, reflecting portfolio growth and low vacancy.

• Portfolio value reached CHF 9.7 billion, with NAV per share at CHF 113.35, up 1.9% since December 2023.

• Vacancy rate improved to 4.0%, with a year-end target below 4%.

Financial highlights

• Total operating income was CHF 235 million, supported by a CHF 44.7 million valuation gain and CHF 11.3 million property sales gain from six asset disposals at an average 16% premium to book.

• EBITDA margin exceeded 84%, reflecting cost discipline and a stable expense base.

• Net financial expenses increased to CHF 16.6 million, with average cost of debt at 0.95%–1.02%.

• EPS reached CHF 3.41, while adjusted EPS was CHF 2.48.

• Share price rose 15.4% year-over-year to CHF 115.30.

Outlook and guidance

• Full-year 2024 EBITDA guidance reaffirmed at CHF 300 million.

• Vacancy rate guidance for 2024 remains below 4%.

• Expects higher rental income in 2024, supported by acquisitions, indexation, and completed projects.

• Dividend policy aims for steady annual increases, supported by rising operating results.

• No major rent indexation changes expected in H2; inflation for 2024 projected at 1.2%.