PSP Swiss Property (PSPN) Q4 2024 earnings summary

Executive summary

• Focus remains on CBD locations in Zurich and Geneva, emphasizing value-add projects and opportunistic growth to maximize shareholder value.

• Portfolio value increased to CHF 9.8bn, up 2.1% from December 2023, with 154 investment and 7 development properties.

• Net income rose 80.6% year-over-year to CHF 374.9m, while adjusted net income (excl. A-RE) fell 31.7% to CHF 231.8m.

• Rental income grew 5.4% to CHF 350 million, and vacancy rate improved to 3.2% from 3.6% at end-2023.

• Sustainability initiatives advanced, with all debt capital now linked to green criteria and net zero target by 2050.

Financial highlights

• Rental income reached CHF 350 million, up 5.4% year-over-year, driven by acquisitions and reclassification of development projects.

• EBITDA excl. A-RE increased 2.4% to CHF 304.9m; EBITDA margin at 83.9%.

• Realized CHF 14.1 million gain from sale of seven non-core assets at a 14% premium to external value.

• Valuation gains totaled CHF 171 million, mainly from letting successes and market rent adjustments.

• Like-for-like rental growth at 3.6% for 2024; expected to be 1.5% in 2025.

Outlook and guidance

• EBITDA guidance for 2025 is approximately CHF 300 million, expected to be the second-best in company history.

• Vacancy rate guided at 3.5% for 2025.

• Dividend proposed to increase by CHF 0.05, continuing a trend of annual increases.

• Distribution proposed at CHF 3.90 per share.

• Like-for-like rental growth expected at 1.5% for 2025.