PSP Swiss Property (PSPN) Q3 2024 earnings summary

Executive summary

• Portfolio value reached CHF 9.7bn, up 1.1% from December 2023, with 152 investment properties and 10 sites/projects.

• Rental income for Q1–Q3 2024 rose 5.8% year-over-year to CHF 262.0m; like-for-like rental growth at 3.7%.

• Net profit increased 45.4% year-over-year to CHF 225.9m, driven by portfolio appreciation of CHF 61.4m.

• Vacancy rate improved to 3.6% (from 4.0% in H1 2024), with year-end 2024 expected at 3.5%.

• Green finance fully implemented; all debt capital linked to sustainability criteria, with all bonds reclassified as green bonds.

Financial highlights

• EBITDA excluding gains/losses on real estate investments for Q1–Q3 2024 was CHF 229.0m, up 0.9% year-over-year; EBITDA margin at 84.4%-84.9%.

• Net income excluding gains/losses on real estate investments fell 19.2% to CHF 170.3m; EPS excl. A-RE at CHF 3.71.

• NAV per share increased 1.7% to CHF 114.76; NAV before deferred taxes CHF 135.89.

• Dividend of CHF 3.85 per share paid in April 2024.

• Net valuation gains of CHF 61.4m in Q1–Q3 2024, reversing prior year losses.

Outlook and guidance

• 2024 EBITDA (excl. fair value changes) confirmed at CHF 300m (2023: CHF 297.7m).

• Year-end 2024 vacancy rate forecast updated to 3.5% (previously below 4%).

• Expects continued solid demand for high-quality properties in central locations, especially Zurich and Geneva.

• Rental growth for next year expected to be similar, with indexation contributing about 1%.

• Aims to steadily increase operating result and dividend payments.