EPIC Suisse AG / CH0516131684
21.08.2024 - 06:45:16EPIC Suisse AG reports solid results for the first half-year 2024 with ongoing development projects running according to plan
| EPIC Suisse AG / Key word(s): Half Year Results 21-Aug-2024 / 06:45 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Media release - Ad hoc announcement pursuant to Art. 53 LR Zurich, 21 August 2024 Rental income in line with previous year period at CHF 32.6 million in H1 2024 (CHF 32.9 million in H1 2023) Vacancy rate at 4.8% for H1 2024 (4.4% for H1 2023) Continued long WAULT of 7.9 years as at 30 June 2024 (8.1 years as at 31 December 2023) Unrealised revaluation gain of CHF 8.7 million in H1 2024 with all sectors contributing to the revaluation uplift (unrealised revaluation loss of CHF 5.9 million in H1 2023) EBITDA including revaluation of properties amounted to CHF 34.8 million in H1 2024 (CHF 20.7 million in H1 2023) and, excluding revaluation of properties, to CHF 26.1 million (CHF 26.5 million in H1 2023) Value of the real estate portfolio increased by 2.8% to CHF 1’578.3 million as at 30 June 2024, primarily due to the advancement of the ongoing development projects (CHF 1’535.5 million as at 31 December 2023) Solid equity ratio of 49.3% Ongoing development projects, PULSE and Campus Leman (Building C), progressing according to expectations First rental contracts in our development project PULSE signed one year ahead of completion of construction and 3 floors out of 6 already pre-let in Campus Leman (Building C) EPIC Suisse AG (SIX: EPIC) (the “Company” or “EPIC Suisse”) published today solid results for the first half of 2024 and positive updates on its two ongoing development projects, PULSE in Cheseaux-sur-Lausanne and Campus Leman (Building C) in Morges, both of which are scheduled for completion by the first half of 2025. Stable rental income and vacancies Following the substantial growth of over 6% in net rental income in fiscal year 2023 compared to the financial year 2022, the rental income from real estate properties in the first half-year 2024 amounted to CHF 32.6 million, remaining as expected in line with the level in the previous comparable period (CHF 32.9 million in H1 2023). The net annualised rental income yield of properties in operation stayed at an attractive level of 4.5% for the first six months of 2024 (4.6% in H1 2023). Real estate portfolio valued at CHF 1’578.3 million The construction of the two development projects under way (PULSE and Campus Leman (Building C)) is progressing according to expectations and their capital expenditures were the main contributing factor to the 2.8% value increase of the real estate portfolio to CHF 1’578.3 million (CHF 1’535.5 million as at 31 December 2023). In addition, all sectors contributed to the portfolio total revaluation uplift of CHF 8.7 million, with the principal driver being the developments’ advancement. The real discount rates applied as at 30 June 2024 resulted in a weighted average of 3.39%, equivalent to the one of 31 December 2023. The WAULT as at 30 June 2024 remained long at 7.9 years (8.1 years as at 31 December 2023), notwithstanding the passing of time effect of 0.5 years. Profitability EBITDA (including revaluation of properties) amounted to CHF 34.8 million for the first half of 2024 (CHF 20.7 million in H1 2023), and to CHF 26.1 million when excluding the revaluation of properties (CHF 26.5 million in H1 2023). Profit (including revaluation effects) reached CHF 22.9 million for the first half-year 2024 versus CHF 11.2 million for the previous comparable period. Profit (excluding revaluation of properties and derivatives and related deferred taxes as well as any related foreign exchange effects) amounted to CHF 19.9 million (CHF 20.9 million in H1 2023), reflecting principally a moderate increase in financing costs and a minor decrease in total income. Good progress on development projects The PULSE project is running on time and EPIC Suisse is very pleased to have already signed first significant rental contracts amounting to CHF 1.6 million[1] with contractual maturities of 10 years[2], almost one year ahead of the project’s completion. The new leases represent about 21% of the total annual rent target of CHF 7.5 million previously communicated by the Company. The leases were signed with (i) Thermo Fisher Scientific (Ecublens) SARL (part of Thermo Fisher Scientific Inc. NYSE: TMO) which will move their local operations to PULSE, (ii) Kidelis SA, a subsidiary of Eldora SA, one of Switzerland’s leading restaurant chains with over 300 restaurants, and (iii) an operator for a crèche facility primarily for children of the PULSE tenants’ employees working on site. Further interest by other potential future tenants is also encouraging. Construction of Campus Leman (Building C) is also expected to be completed in the first half of 2025, and the anchor tenant Incyte has committed to an additional floor in the building from its previously committed two floors, out of the building’s six floors. We are also encouraged by the ongoing discussions with other potential tenants who are showing interest in taking some areas in the building. Sound capital base As at 30 June 2024, the group’s equity stands at CHF 795.7 million with a net asset value per share of CHF 77.02 (CHF 804.9 million and CHF 77.92 respectively as at 31 December 2023). An increased dividend of CHF 3.10 per share was distributed to the shareholders on 8 May 2024 (CHF 3.00 previously), corresponding to a dividend yield of 4.7% based on the share price as at 31 December 2023. The weighted average interest rate on mortgage-secured bank loans stayed low at 1.3% as at 30 June 2024, while their weighted average residual maturity stood at 4.3 years (1.3% and 4.5 years as at 31 December 2023, respectively). Outlook Assuming no materially adverse changes on our operations going forward, EPIC Suisse confirms a robust net rental income level for the full year 2024 in line with the previous year. We expect the lettings in our developments, PULSE and Campus Leman (Building C), to bring the next sizeable uplift in rental income. ______________________ [1] Excluding any rent-free periods or any other incentives [2] Excluding any early breaks or optionsFor selected key figures, please refer to the appendix of this press release as well as to the Half-Year Report 2024 for further information and a glossary of alternative performance measures (on page 50 of the report). Contact information Valérie Scholtes, CFO, EPIC Suisse AG, Phone: +41 44 388 81 00, E-mail: investors@epic.ch Reporting The Half-Year Report 2024 is available on the Company’s website under Media & Investors – Financial Reports: https://ir.epic.ch/en/financial-reports/ About EPIC Suisse AG EPIC Suisse AG is a Swiss real estate company with a high-quality property portfolio of CHF 1.6 billion in market value. It has a sizeable development pipeline and a strong track record in sourcing, acquiring, (re)developing and actively managing commercial properties in Switzerland. EPIC’s investment properties are mainly located in Switzerland's major economic hubs, specifically the Lake Geneva Region and the Zurich Economic Area. Listed on SIX Swiss Exchange since May 2022 (SIX ticker symbol EPIC; Swiss Security Number (Valorennummer) 51613168; ISIN number CH0516131684). More information: www.epic.ch
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| Language: | English |
| Company: | EPIC Suisse AG |
| Seefeldstrasse 5a | |
| 8008 Zürich | |
| Switzerland | |
| Phone: | 044 388 81 00 |
| E-mail: | info@epic.ch |
| Internet: | www.epic.ch |
| ISIN: | CH0516131684 |
| Valor: | 51613168 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1971531 |
| End of Announcement | EQS News Service |
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