Rental income increased by 1.3% to CHF 66.2 million in 2024 (CHF 65.3 million in 2023)
Vacancy rate further reduced to 4.2% for 2024 (4.6% for 2023)
Continued long WAULT expanded to 8.2 years as at 31 December 2024 (8.1 years as at 31 December 2023)
Unrealised revaluation gain of CHF 23.4 million in 2024 (unrealised revaluation loss of CHF 9.7 million in 2023)
EBITDA including revaluation of properties amounted to CHF 76.5 million in 2024 (CHF 42.7 million in 2023) and, excluding revaluation of properties, to CHF 53.1 million (CHF 52.4 million in 2023)
Value of the real estate portfolio increased by 5.1% to CHF 1’613.4 million as at 31 December 2024, primarily due to the capital investments in the ongoing development projects (CHF 1’535.5 million as at 31 December 2023)
Solid equity ratio of 49.9%
Both ongoing development projects, PULSE and Campus Leman (Building C), expected to be completed in H1 2025, as planned
Dividend of CHF 3.15 per registered share to be proposed to the AGM 2025
EPIC Suisse AG (SIX: EPIC) (the “Company” or “EPIC Suisse”) published today its annual results, showing strong operating performance for fiscal year 2024. Based on the results, the Board of Directors will propose a gross dividend of CHF 3.15 per registered share to the Annual General Meeting (AGM) on 28 March 2025.
Following a 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 increased in 2024 by 1.3% to CHF 66.2 million (CHF 65.3 million in 2023). The increase was predominantly driven by indexation followed to a lesser extent by a further reduction in the vacancy rate for properties in operation to 4.2% (4.6% in 2023) which was then partially counter-balanced by the expiry of a tenant fit-out contract in 2023. The net rental income yield of properties in operation stayed at an attractive level of 4.5% in 2024 (4.5% in 2023 too).
The size of the real estate portfolio exceeded CHF 1.6 billion, reaching CHF 1’613.4 million as at 31 December 2024 (CHF 1’535.5 million as at 31 December 2023), showing a 5.1% growth. On the one hand, CHF 54.5 million were invested during the year into the properties, of which CHF 46.0 million in the ongoing developments as project PULSE and Campus Leman (Building C) are progressing according to plan. On the other hand, the year-end revaluation of the portfolio by the independent appraiser Wüest Partner AG led to a net unrealised gain of CHF 23.4 million in 2024 compared to a net unrealised loss of CHF 9.7 million in the prior year. The real discount rates applied as at 31 December 2024 resulted in a weighted average of 3.38% (3.39% as at 31 December 2023).
The WAULT as at 31 December 2024 was prolonged to 8.2 years (8.1 years as at 31 December 2023).
EBITDA (including revaluation of properties) amounted to CHF 76.5 million for 2024 (CHF 42.7 million for 2023), and to CHF 53.1 million when excluding the revaluation of properties (CHF 52.4 million for 2023).
Profit (including revaluation effects) reached CHF 47.3 million for the year 2024 versus CHF 17.6 million for 2023. Profit (excluding revaluation of properties and derivatives and related deferred taxes as well as any related foreign exchange effects) amounted to CHF 40.6 million (CHF 40.9 million in 2023), reflecting a slight decline of CHF 0.3 million, principally due to higher financing costs.
Both development projects, PULSE in Cheseaux-sur-Lausanne and Campus Leman (Building C) in Morges are approaching their completions in H1 2025. For PULSE, rental contracts representing about 21% of the previously communicated annual target rent have been signed, and further interest from other potential tenants is also encouraging.
Regarding Building C of Campus Leman, the sole tenant of Building B, Incyte, has committed to rent 3 floors. During H2 2024, the hospital “Ensemble Hospitalier de la Côte” signed a rental agreement for a further 2 floors. These successful lettings only leave the top floor unoccupied for the moment. Considering that this floor also offers direct access to a private terrace, EPIC Suisse is optimistic to successfully rent this space.
As at 31 December 2024, equity amounted to CHF 820.0 million with a solid equity ratio of 49.9% (CHF804.9 million and 51.0% respectively as at 31 December 2023). A dividend of CHF 3.10 per share was distributed to the shareholders on 8 May 2024 (CHF 3.00 in 2023). The net asset value per share stood at CHF 79.38 as at 31 December 2024 (CHF 77.92 as at 31 December 2023).
The weighted average interest rate on mortgage-secured bank loans remained low at 1.3% as at 31 December 2024, while their weighted average residual maturity was at 3.7 years (1.3% and 4.5 years as at 31 December 2023, respectively).
Based on the 2024 results, the Board of Directors will propose to the Annual General Meeting, to be held on 28 March 2025, an increase in the dividend per share of CHF 0.05 or a gross dividend per share of CHF 3.15, corresponding to a total distribution of CHF 32.5 million. The proposed dividend reflects an attractive yield of 3.9% based on the year-end 2024 closing share price.
EPIC Suisse has further expanded its ESG reporting and for the first time also included data on water consumption for the ESG reporting period July 2023 to June 2024. In December 2024, the Board of Directors decided to set a mid-term target for CO2 emission intensity (Scopes 1 and 2) of 3.5 kgCO2e/m2 to be reached by 2035, which reflects a reduction of over 50% compared to the level of 7.9 kgCO2e/m2 for the measured period July 2023 to June 2024. For further insights on the ESG strategy and activities see the dedicated Sustainability and TCFD Reports in the Annual Report 2024.
Considering the recent political changes around the world, making reliable predictions is getting even more difficult. In their press release of 12 December 2024, the Swiss National Bank forecasted the Swiss economy to grow by about 1% to 1.5% in 2025. EPIC Suisse’s prime focus remains the sustainable and mid- to longterm growth of its portfolio and consolidation of the letting of the soon-to-be-completed developments. We expect the net rental income from our ongoing developments to start showing meaningful impact on net rental income from 2026 on, as 2026 will be the first full year of operation of the buildings for the existing tenants but also for future tenants that could commit in 2025 with a start date in 2026. Assuming no materially adverse changes on our operations in 2025, the Company’s guidance for this year net rental income is an increase of 2% to 3% compared to 2024.
For selected key figures, please refer to the appendix of this press release as well as to the Annual Report 2024 for further information and a glossary of alternative performance measures (on page 168 of the report).
The Annual Report 2024 is available on the Company’s website under Media & Investors –
Financial Reports: https://ir.epic.ch/en/financial-reports/
Contact information
Valérie Scholtes
CFO
EPIC Suisse AG
+41 44 388 81 00
E-mail: investors@epic.ch