EPIC Suisse AG achieves robust results in line with expectations and is set for the next growth phase

Media release - Ad hoc announcement pursuant to Art. 53 LR

Zurich, 5 March 2025

EPIC Suisse AG achieves robust results in line with expectations and is set for the next growth phase

• 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. 

Higher rental income, further reduced vacancies

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).

Real estate portfolio valued at CHF 1’613.4 million

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).

Profitability

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.

Projects PULSE and Campus Leman Building C to be completed by end of H1 2025

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. 

Strong capital base

As at 31 December 2024, equity amounted to CHF 820.0 million with a solid equity ratio of 49.9% (CHF 804.9 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).

Dividend proposal of CHF 3.15 to the Annual General Meeting 2025

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.

ESG reporting expanded and new 2035 target set

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.

Outlook

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 long-term 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).

Contact information

Valérie Scholtes, CFO, EPIC Suisse AG, Phone: +41 44 388 81 00, E-mail: investors@epic.ch

Reporting

The Annual 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

1. Rental income from real estate properties plus other income less direct expenses related to properties
2. Profit after tax before other comprehensive income excluding revaluation of properties and derivatives and related deferred taxes as well as any related foreign exchange effects
3. Profit after tax before other comprehensive income divided by the average IFRS NAV. The average IFRS NAV corresponds to ½ of the sum of the IFRS NAV at the beginning and at the end of the reporting period
4. Profit after tax before other comprehensive income excluding revaluation of properties and derivatives and related deferred taxes as well as any related foreign exchange effects divided by the average IFRS NAV. The average IFRS NAV corresponds to ½ of the sum of the IFRS NAV at the beginning and at the end of the reporting period
5. Ratio of net debt to the market value of total real estate properties including the right-of-use of the land

Disclaimer

This publication may contain specific forward-looking statements, e.g. statements including terms like "believe", "assume", "expect", "forecast", "project", "may", "could", "might", "will" or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of EPIC Suisse AG and those explicitly or implicitly presumed in these statements. Against the background of these uncertainties, readers should not rely on forward-looking statements. EPIC Suisse AG assumes no responsibility to update forward-looking statements or to adapt them to future events or developments.

Alternative performance measures

This media release may contain references to operational indicators, such as reported vacancy rate, adjusted vacancy rate and WAULT, and alternative performance measures (APM) that are not defined or specified by IFRS Accounting Standards, including EBITDA (incl. revaluation of properties), EBITDA (excl. revaluation of properties), net operating income, return on equity (incl. revaluation effects), return on equity (excl. revaluation effects), profit (excl. revaluation effects), net loan to value (LTV) ratio. These APM should be regarded as complementary information to and not as substitutes of the Group’s consolidated financial results based on IFRS Accounting Standards. These APM may not be comparable to similarly titled measures disclosed by other companies. For the definitions of the main operational indicators and APM used, including related abbreviations, refer to the section “Alternative Performance Measures” on page 168 of the Company's Annual Report 2024.