PSP Swiss Property AG · SIX:PSPN
PSP Swiss Property — Q3 2014 Earnings Presentation
65 slides from PSP Swiss Property's earnings presentation, Nov 14, 2014
Slide 1: Q1-3 Results
Q1-3 RESULTS 14 November 2014
Slide 2: Agenda
Agenda Key Facts and Figures 3 Portfolio and Vacancy Rate 10 Financial Results Q1-3 2014 14 Capital Structure 20 Development Sites & Projects 23 Outlook 34 Annex 36 © PSP Swiss Property I Page 2
Slide 3: Current Market Environment
Current Market Environment Swiss market environment Stable prime office rents for well maintained buildings; higher lease incentives and longer lease-up times; continuously strong interest for high street retail space Growing supply in Zurich intensifies competition; vacancy rates are generally
Slide 4: Main Developments
Main Developments Real estate portfolio Portfolio value CHF 6.6bn (1.4% compared with December 2013) Stable rents across the portfolio, however with selectively more lease incentives and longer lease-up times Sale of one non-core property in Zurich for CHF 10.6m (23.7% above latest valuation)
Slide 5: Property Portfolio (September 2014)
Property Portfolio (September 2014) Portfolio value CHF 6.6 bn 1. Zurich 59% CHF 3.9 bn 2. Geneva 14% CHF 0.9 bn 3. Basel 7% CHF 0.5 bn 4. Bern 4% CHF 0.2 bn 5. Lausanne 5% CHF 0.3 bn Other locations 5% CHF 0.3 bn Sites & development properties 6% CHF 0.4 bn In total, PSP owns and manages 161 proper
Slide 6: Key Figures
Key Figures Consolidated, in CHF m 2011 2012 2013 Q1-3 13 Q1-3 14 ' Ebitda excl. -RE 232.5 238.3 242.5 187.3 181.5 -3.1% Net income excl. -RE 149.0 161.4 173.6 135.0 129.5 -4.1% Net income 404.0 368.4 271.0 208.5 138.9 -33.4% ROE (net income) 13.0% 10.6% 7.2% 7.4% 4.8% Per share, in CHF 2011 2012 20
Slide 7: Per Share Distribution (in CHF)
Per Share Distribution (in CHF) 4 3.20 3.25 3.00 3 2.80 2.70 2.50 2.40 2.20 2.10 1.98 2 1.65 1.50 1.25 1.00 1 0 2013* 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 For business year Y-t-y growth 25.0% 20.0% 10.0% 20.0% 6.0% 4.8% 9.1% 4.2% 8.0% 3.7% 7.1% 6.7% 1.6% Payout ratio** 45
Slide 8: Share Price (7.3.2000 – 11.11.2014)
Kurs (CHF) 100 120 140 0 20 40 60 80 Mrz. 00 Jul. 00 Nov. 00 Mrz. 01 Jul. 01 Nov. 01 Mrz. 02 Jul. 02 © PSP Swiss Property I Page 8 Nov. 02 Mrz. 03 Jul. 03 Nov. 03 Source: Bloomberg, 12 November 2014. PSP Mrz. 04 Jul. 04 Nov. 04 Mrz. 05 Jul. 05 Nov. 05 Mrz. 06 Jul. 06 Nov. 06 Mrz. 07 SPI Rebased Jul.
Slide 9: Agenda
Agenda Key Facts and Figures 3 Portfolio and Vacancy Rate 10 Financial Results Q1-3 2014 14 Capital Structure 20 Development Sites & Projects 23 Outlook 34 Annex 36 © PSP Swiss Property I Page 9
Slide 10: Portfolio and Vacancy Rate
Portfolio and Vacancy Rate 8 10% 8.9% 9.3% 8.9% 8.8% 9% 7 8.0% 8% 6 8.0% 7% 5 6% 4 5% 6.283 6.466 6.452 6.452 6.558 4% 3 3% 2 2% 1 1% 0 0% 2012 2013 Q1 2014 H1 2014 Q3 2014 Real estate portfolio value in CHF bn Vacancy rate in % (CHF) Vacancy rate excl. properties reclassified to developments at the
Slide 11: Vacancy Rate (September 2014)
Vacancy Rate (September 2014) Total: 8.8% Total: CHF 6.1 bn 9% ~ 0.1 bn 1 Thereof 8% 1.0% ~ 0.8 bn 0.2% Lausanne, Rue St.-Martin 7 7% 2 Thereof 0.6% Hardturmstr. 181,183,185 6% 0.5% Hardturmstr. 161/Förrlib. 3.6% 0.4% Hardturmstr. 131,133,135 0.4% Bernerstr.Süd 167/169 5% 0.7% Businesspark Wallisell
Slide 12: Expiry Profile of Leases (September 2014)
Expiry Profile of Leases (September 2014) (Legal termination option by tenants) 25% 20% 21% 15% 15% 10% 11% 10% 9% 10% 8% 5% 6% 4% 2% 2% 2% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+ NL 56% of the Q4 2014 maturities (CHF 16.7 m) are renewed; Of all 2014 maturities (CHF 42.1 m), 62% a
Slide 13: Agenda
Agenda Key Facts and Figures 3 Portfolio and Vacancy Rate 10 Financial Results Q1-3 2014 14 Capital Structure 20 Development Sites & Projects 23 Outlook 34 Annex 36 © PSP Swiss Property I Page 13
Slide 14: Consolidated Income
Consolidated Income (CHF 1’000) 2011 20121 2013 Q1-3 13 Q1-3 14 ' Rental income 270’675 272’849 279’143 208’568 207’080 -0.7%2 Valuation gains 325’068 266’851 128’1443 95’7353 10’977 Property sales (inventories) 3’277 12’793 13’048 12’851 6’798 Property sales (portfolio) 4’227 130 0 0 2’026 Income f
Slide 15: Consolidated Expenses
Consolidated Expenses (CHF 1’000) 2011 20121 2013 Q1-3 13 Q1-3 14 ' Properties’ opex - 11’216 - 11’532 - 11’433 - 7’946 - 8’668 9.1% Properties’ maintenance/renovation - 16’554 - 18’122 - 17’984 - 11’698 - 10’856 -7.2% Personnel expenses - 18’203 - 18’834 - 19’135 - 14’258 - 13’927 -2.3% Fees to sub
Slide 16: Consolidated Results
Consolidated Results (CHF 1’000) 2011 20121 2013 Q1-3 13 Q1-3 14 ' Profit before financial expenses 560’053 504’455 369’852 282’640 193’585 -31.5% Net financial expenses - 44’267 - 37’238 - 30’878 - 23’178 - 23’457 1.2% Profit before taxes 515’786 467’217 338’974 259’462 170’129 -34.4% Taxes - 111’7
Slide 17: Changes in Fair Value (September 2014)
Changes in Fair Value (September 2014) (CHF m) 2009 2010 2011 2012 2013 Q1-Q3 2014 Existing portfolio 112.4 176.0 325.1 263.5 120.53 9.8 Acquisitions / first-time valuation 0.0 4.61 0.0 3.42 7.64 1.25 Total net changes in fair value 112.4 180.6 325.1 266.9 128.1 11.0 1 From the acquisition of a sing
Slide 18: Changes in Fair Value: Discount Rates (June 2014)
Changes in Fair Value: Discount Rates (June 2014) Nominal Discount Rate Area Minimum Maximum Weighted Ø Zurich 4.0% 6.1% 4.8% Geneva 4.3% 5.4% 4.8% Basel, Bern 4.2% 5.3% 4.9% Lausanne 4.4% 6.2% 5.0% Other locations 4.7% 6.1% 5.4% All areas 4.0% 6.2% 4.9%* 2009 2010 2012 2013 2014 2011 H1 Weighted Ø
Slide 19: Agenda
Agenda Key Facts and Figures 3 Portfolio and Vacancy Rate 10 Financial Results Q1-3 2014 14 Capital Structure 20 Development Sites & Projects 23 Outlook 34 Annex 36 © PSP Swiss Property I Page 19
Slide 20: Debt
Debt Diversified and stable lender portfolio 9 domestic banks and 1 syndicated loan (with 14 Swiss Cantonal banks) High visibility on debt maturity profile Majority of bank lines maturing between 2019 and 2020, with average maturity of loans: 4.8 years All loan agreements based on multi-year c
Slide 21: Capital Structure
Capital Structure Money values in CHF m 2010 2011 2012 2013 Q3 2014 ' Shareholders‘ equity 2’942.9 3’268.9 3’691.6 3’839.2 3’806.9 -0.8% - % of total assets 52.7% 54.0% 58.1% 58.7% 57.4% Deferred tax liabilities (net) 512.3 596.3 665.9 713.0 722.2 - % of total assets 9.2% 9.9% 10.5% 10.9% 10.9% Inte
Slide 22: Agenda
Agenda Key Facts and Figures 3 Portfolio and Vacancy Rate 10 Financial Results Q1-3 2014 14 Capital Structure 20 Development Sites & Projects 23 Outlook 34 Annex 36 © PSP Swiss Property I Page 22
Slide 23: «Salmenpark» Rheinfelden
«Salmenpark» Rheinfelden Stage 1 under construction Conversion of existing site (former brewery) and new buildings; mixed use: 16’000 m2 commercial area (office, commerce and seniors’ residence) and 16’000 m2 residential area (113 freehold apartments, 36 apartments for rent) As per 30 Sept. 2014
Slide 24: «Salmenpark» Rheinfelden (cont.)
«Salmenpark» Rheinfelden (cont.) Rendering © PSP Swiss Property I Page 24
Slide 25: Project «Health Spa Genève Plage» Geneva/Cologny
Project «Health Spa Genève Plage» Geneva/Cologny Under construction Conversion of existing site and new buildings, 100% let Planned investment sum approx. CHF 30 m Completion: end of 2015 © PSP Swiss Property I Page 25
Slide 26: Project «Löwenstrasse» Zurich
Project «Löwenstrasse» Zurich Under construction New building with mixed use (office and retail space) Planned investment sum approx. CHF 7 m Completion: Q1 2015 © PSP Swiss Property I Page 26
Slide 27: Project «Grosspeter Tower» Basel
Project «Grosspeter Tower» Basel Construction to start next Mixed use (18‘000 m2 office and hotel) Zero emission Investment sum approx. CHF 100 m Building permission received end of 2012 Construction start: November 2014 Completion: end of 2016 © PSP Swiss Property I Page 27
Slide 28: Project «Bahnhofquai / Bahnhofplatz» Zurich
Project «Bahnhofquai / Bahnhofplatz» Zurich Under renovation Total renovation of existing buildings, all part of the same “block”, in particular infrastructure and technical installations Overall investment sum approx. CHF 76 m, thereof - Bahnhofquai 9, 11, 15 and Bahnhofplatz 1 CHF 33 m (constr
Slide 29: Project «Bahnhofstrasse 10 / Börsenstrasse 18» Zurich
Project «Bahnhofstrasse 10 / Börsenstrasse 18» Zurich Under renovation Total renovation, in particular technical installations Investment sum approx. CHF 15 m Completion: summer 2015 As per 30 September 2014: 80% pre-let (retail space) © PSP Swiss Property I Page 29
Slide 30: «Paradiso Site» Lugano
«Paradiso Site» Lugano Planned Project with 65 free-hold apartments, office and retail space (conversion of former brewery) Floor space: 11’200 m2 for free-hold apartments, 1’400 m2 for office and 750 m2 for retail Investment sum approx. CHF 65 m Construction start: n.a. (completion: 2 years
Slide 31: Project «Zurich West» Zurich
Project «Zurich West» Zurich Under evaluation A Hardturmstr. 161 (Complete re-development) B1 Hardturmstr. 181/183/185 (New building) B2 Förrlibuckstr. 178/180 (New building) © PSP Swiss Property I Page 31
Slide 32: Capex Overview
Capex Overview Expected (CHF m) 2014-2022 Q4 2014 2015 2016 2017-2022 Paradiso site, Lugano2 61.7 0.2 6.4 24.5 30.7 Gurten site, Wabern/Bern1 11.3 2.9 8.4 0 0 Salmenpark, Rheinfelden1 188.4 24.9 85.5 19.0 59.0 Grosspeter Tower, Basel2 104.6 6.0 47.8 45.8 5.1 Genève Plage, Cologny1 21.5 2.8 14.0 4.6
Slide 33: Agenda
Agenda Key Facts and Figures 3 Portfolio and Vacancy Rate 10 Financial Results Q1-3 2014 14 Capital Structure 20 Development Sites & Projects 23 Outlook 34 Annex 36 © PSP Swiss Property I Page 33
Slide 34: Outlook 2014
Outlook 2014 Consolidated Ebitda excl. -RE approx. CHF 235 m Vacancy rate portfolio (year-end) approx. 10% © PSP Swiss Property I Page 34
Slide 35: Agenda
Agenda Key Facts and Figures 3 Portfolio and Vacancy Rate 10 Financial Results Q1-3 2014 14 Capital Structure 20 Development Sites & Projects 23 Outlook 34 Annex 36 © PSP Swiss Property I Page 35
Slide 36: Board of Directors and Executive Board
Board of Directors and Executive Board Board of Directors Günther Gose, 1944, Chairman Luciano Gabriel, 1953, Delegate and CEO Peter Forstmoser, 1943, Member Adrian Dudle, 1965, Member Nathan Hetz, 1952, Member Gino Pfister, 1942, Member Josef Stadler, 1963, Member Aviram Wertheim, 1
Slide 37: Group Overview (September 2014)
Group Overview (September 2014) Executive Board (3) Legal unit (4) HR/Services (5) Secretarial (1) Real Estate Investments Property Management Finance, Administration Asset Management (5) Zurich Office (14) Accounting (11) Lettings (2) Olten Office (7) Communication (2) Analysis/Reporting (2) Geneva
Slide 38: PSP Strategy
PSP Strategy Strategy Switzerland only Commercial properties only Acquisitions to be justified by price and operational logic Risk-conscious financing policy Priority Optimising profitability of existing portfolio Ensuring long term attractiveness of assets Organic growth Develop sit
Slide 39: Why Investing in PSP?
Why Investing in PSP? Company Premium portfolio with limited downside risk Transparent business model Pure Swiss play Properties with further optimisation potential Financial flexibility to take advantage of market opportunities Acquisition/integration experience Sustainability oriente
Slide 40: Shareholder Base
Shareholder Base Largest shareholders (30 September 2014) Alony Hetz: 12.21% Two Nominees: 6.66% resp. 3.37% BlackRock, Inc.: 3.16%1 Number of registered shareholders: 4’715 Non registered, 29% CH, 38% - Individuals: 4’141 (11% of registered shares) - Legal entities: 574 (89% of registered s
Slide 41: Ebitda
Ebitda 300 85% 81.5% 81.3% 82.6% 82.4% 81.0% 80% 250 75% 200 70% 150 65% 232.5 238.3 242.5 100 187.3 181.5 60% 50 55% 0 50% 2011 2012 2013 Q1-3 2013 Q1-3 2014 Ebitda excl. -RE in CHF m Ebitda margin in % © PSP Swiss Property I Page 41
Slide 42: Net Income Components
Net Income Components 450 400 255.0 350 207.0 300 250 97.4 200 73.5 150 173.6 9.4 161.4 149.0 135.0 129.5 100 50 0 2011 2012 2013 Q1-3 2013 Q1-3 2014 Net income excl. -RE in CHF m Contribution of -RE in CHF m © PSP Swiss Property I Page 42
Slide 43: EPS
EPS 10 9 9.40 8 8.21 7 6 5.91 5 4 4.55 3.79 3.47 3.60 3 2.94 3.03 2.82 2 1 0 2011 2012 2013 Q1-3 2013 Q1-3 2014 EPS in CHF EPS excl. -RE in CHF © PSP Swiss Property I Page 43
Slide 44: NAV + Cumulative Dividend per Share
NAV + Cumulative Dividend per Share 140 120 31.53 28.28 100 25.08 22.08 19.28 80 16.58 83.70 83.00 80.48 14.08 75.28 11.68 68.87 9.48 60 3.75 61.83 64.95 2.25 7.38 59.71 5.40 56.25 1.00 53.28 50.58 51.02 51.80 0.00 47.24 40 42.21 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 45: NAV vs. Share Price
NAV vs. Share Price 100 90 86.55 80 83.70 83.00 78.60 80.48 80.20 70 75.00 75.28 75.50 68.87 60 50 40 30 20 10 0 2010 2011 2012 2013 Q3 2014 NAV per share in CHF Share price in CHF © PSP Swiss Property I Page 45
Slide 46: EPRA Performance Measures
EPRA Performance Measures 2013 H1 2013 H1 2014 (CHF or %) EPRA PSP EPRA PSP EPRA PSP A. EPS 3.56 3.79 1.84 1.86 1.79 1.91 B. NAV 100.57 99.25 98.12 96.52 99.45 97.76 C. NNNAV 84.07 83.70 81.83 81.29 82.27 82.11 D. Net yield 4.1% 3.9% 4.1% 3.9% 4.1% 3.9% E. Vacancy rate 7.5% 8.0% 8.4% 9.1% 8.6% 9.3%
Slide 47: Portfolio Key Figures
Portfolio Key Figures Numbers of Rental Revaluation Value Net yield Vacancy properties income in CHF m in CHF m in % in % in CHF m Zurich 9M 2014 82 126.7 1.0 3’903.7 3.8 9.4 2013 83 169.2 73.7 3’894.7 3.8 8.7 Geneva 9M 2014 16 28.2 - 1.1 886.8 3.4 8.6 2013 16 37.4 28.5 884.7 3.5 5.7 Basel 9M 2014 1
Slide 48: Portfolio Value by Area
Portfolio Value by Area Sites and developement properties, 6% Other locations, 5% Lausanne, 5% Bern, 4% Basel, 7% Zurich, 59% Geneva, 14% © PSP Swiss Property I Page 48
Slide 49: Rent by Use
Rent by Use Other, 10% Gastronomy, 4% Parking, 6% Retail, 15% Office, 65% © PSP Swiss Property I Page 49
Slide 50: Rent by Type of Tenants
Rent by Type of Tenants Other, 15% Retail, 23% Gastronomy, 7% Government, 6% Services, 17% Technology, 10% Financial Services, 10% Telecommunication, 12% © PSP Swiss Property I Page 50
Slide 51: Largest Tenants
Largest Tenants Swisscom, 10% Google, 4% JT International, 3% Swiss Post, 3% Roche, 2% Next five largest, 9% Other, 69% © PSP Swiss Property I Page 51
Slide 52: Sustainability
Sustainability Ecological sustainability Energy consumption (kWh) Water consumption (m3) CO2 (heating and electricity) output (t resp. kg) Economic sustainability Long-term oriented business and investment policy Quality- and value-oriented portfolio management Long-term oriented and bal
Slide 53: Ecological Sustainability
Ecological Sustainability Organisation Operational responsibility: 3 employees (1 asset management, 2 construction services) Implementation: construction services, property management, facility management Environmental key figures (specific figure/m2) in 2013 (2012) Heating in kWh: 87.0, resp.
Slide 54: Portfolio Grid
Portfolio Grid Source: Wüest & Partner, June 2014. © PSP Swiss Property I Page 54
Slide 55: Zurich Area
Zurich Area Bahnhofplatz 9 Bahnhofplatz 1 Bahnhofstr. 81 Bahnhofplatz 2 Bahnhofstr. 39 Bahnhofquai 9, 11, 15 Brandschenkestr. 90 Bahnhofstr. 28a Uraniastr. 9 © PSP Swiss Property I Page 55
Slide 56: Geneva Area
Geneva Area Rue Richard-Wagner 6 Palace du Molard 7 Rue des Bains 31-33/35 Cours de Rive 13/15 Av. des Morgines 8-10 Rue de la Fontaine 5 Rue de la Gabelle 6 Rue de la Corraterie 24/26 © PSP Swiss Property I Page 56
Slide 57: Basel Area
Basel Area Marktplatz 30/30a Freie Strasse 38 Barfüsserplatz 10 St. Alban-Anlage 46 Steinentorberg 8/12 Grosspeterstr. 18/20 Kirschgartenstr. 12-14 Dornacherstr. 210 © PSP Swiss Property I Page 57
Slide 58: Bern Area
Bern Area Bollwerk 15 Zeughausgasse 26/28 Laupenstrasse 18/18a Kramgasse 49 Seilerstrasse 8 Kramgasse 78 Eigerstrasse 2 Spitalgasse 9 © PSP Swiss Property I Page 58
Slide 59: Lausanne Area
Lausanne Area Rue de Sébeillon 2 Rue du Pont 22 Avenue de Sévelin 54 Rue Saint Martin 7 Avenue de Sévelin 40 Place Saint-François 5 Avenue de Cour 135 Place Saint-François 15 © PSP Swiss Property I Page 59
Slide 60: Selected Properties Zurich
Selected Properties Zurich Zurich, Bahnhofplatz 1 Zurich, Bahnhofquai 9, 11, 15 Zurich, B’hofstr. 28a/Waagg. 6 Zurich, B’hofstr. 81/Schw.g. 2/4 rentable area: 2’095 m2 rentable area: 4’303 m2 rentable area: 3’231 m2 rentable area: 2’352 m2 Zurich, Binzring 15/17 Zurich, Brandschenkestr. 90 Zurich, B
Slide 61: Selected Properties Geneva
Selected Properties Geneva Carouge-GE, Rte d. Acacias 50-52 Carouge-GE, Rue de la Gabelle 6 Geneva, Cours de Rive 13, 15 Geneva, Place du Molard 7 rentable area: 9‘562 m2 rentable area: 1‘017 m2 rentable area: 5‘676 m2 rentable area: 3‘381 m2 Geneva, Rue d. Bains 31bis,33,35 Geneva, Rue de Berne 6 G
Slide 62: Selected Properties Basel & Bern
Selected Properties Basel & Bern Basel, Barfüsserplatz 10 Basel, Falknerstrasse 31 Basel, Freie Strasse 38 Basel, Grosspeterstrasse 18, 20 rentable area: 1‘177 m2 rentable area: 1‘201 m2 rentable area: 1‘365 m2 rentable area: 13‘527 m2 Basel, Kirschgartenstrasse 12-14 Basel, St. Alban-Anlage 46 Bern
Slide 63: Selected Properties Lausanne & Others
Selected Properties Lausanne & Others Lausanne, Place St-François 5 Lausanne, Rue du Sébeillon 1, 3, 5 Lausanne, Rue du Grand-Chêne 2 Lausanne, Rue du Pont 22 rentable area: 5’888 m2 rentable area: 12’419 m2 rentable area: 3’076 m2 rentable area: 2’342 m2 Lausanne, Saint-Martin 7 Aarau, Bahnhofstras
Slide 64: Contacts
Contacts Luciano Gabriel CEO Phone +41 (0)44 625 50 47 Mobile +41 (0)79 400 34 79 [email protected] Giacomo Balzarini CFO Phone +41 (0)44 625 59 59 Mobile +41 (0)79 562 20 72 [email protected] Vasco Cecchini Corporate Communications Phone +41 (0)44 625 57 23 Mobile +41 (0)79 650 84 3
Slide 65: Disclaimer
Disclaimer None of the information in this presentation constitutes an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. None of the securities of the Company referred to in this presen