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 more than doubled to CHF 156.3 million, driven by CHF 44.7 million in revaluation gains and property sales.

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

• Portfolio value reached CHF 9.7 billion, with 157 investment properties and 8 projects.

• Acquired a prime Geneva property for CHF 58 million and sold six secondary assets for CHF 82.5 million, exceeding valuations.

Financial highlights

• Total operating income was CHF 235 million, supported by CHF 44.7 million in valuation gains and CHF 11.3 million in property sales gains.

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

• Net income excluding revaluation gains fell 24.5% to CHF 113.6 million, impacted by lower deferred tax releases.

• NAV per share at period-end was CHF 113.35, up 1.9% since December 2023.

• 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%.