Q1 2020 RESULTS - PSP Swiss Property · 2017. 1. 2018. 2019. q1 2019: q1 2020 ∆ eps. 5.60. 6.72:...

Q1RESULTS 20205 May 2020

Agenda

Key Facts and Figures 3

Financial Results Q1 2020 7

Portfolio and Vacancy Rate 14

Capital Structure 20

Development Sites, Projects and Acquisition 23

Subsequent Events 34

COVID-19 Implications 37

Outlook 41

Annex 43

© PSP Swiss Property I

Property Portfolio (March 2020)


ZurichCHF 4.4bn

54%

GenevaCHF 0.9bn

11%

LausanneCHF 0.4bn

5%

BaselCHF 0.6bn

8%

BernCHF 0.5bn

6%

Sites and projectsCHF 0.8bn

11%*

Other locationsCHF 0.4bn

5%

Portfolio value CHF 8.1bn

In total, 161 investment properties, plus: 3 sites: “Residenza Parco Lago”, Paradiso; “Salmenpark”, Rheinfelden; Wädenswil site.12 projects: “Grosspeter, Baufeld C”, Basel; “Steinentorberg”, Basel; “Bärenplatz”, Bern; “Rue du Marché”, Geneva; “Seestrasse”, Kilchberg; “Spiegel”, Köniz;

“ATMOS”, Zurich; “Bahnhofquai/-platz”, Zurich; “Grubenstrasse”, Zürich; “P-West”, Zurich; “Sihlamtsstrasse”, Zurich; “Zurlindenstrasse”, Zurich.* 9% at historical cost (in line with investment policy, ≤ 10%).

Current Market Environment

Swiss market environment Positive business sentiment in all of our business regions until outbreak of Coronavirus crisis, with:

Strong letting demand in Zurich CBD and Zurich West

Good demand in Geneva

Transactional evidence with potential for further yield compression

Since beginning of the second quarter, letting and transactional market came to a temporary stop

We expect that good demand for letting office space at prime locations will be re-established

Investment market for prime assets with good earnings visibility will remain intact

Economic outlook for Switzerland1 2020 2021GDP - 6.7% 5.6%Inflation - 1.0% - 0,5%Unemployment 3.9% 4.1%1 Source: SECO, April 2020.


Main Developments


Real estate portfolio Portfolio value CHF 8.1bn (up 0.9% compared with December 2019) Acquisition of development project in Zurich for CHF 33.5m

Vacancy and rental situation Vacancy rate of 3.2% Of all 2020 maturities (CHF 31.7m), 85% renewed Expected vacancy year-end 2020: (new guidance) ~ 3.5%

Financing Passing average cost of debt 0.58% on 31 March 2020 Low leverage with a LTV of 32.8% CHF 770m unused credit lines (thereof CHF 620m committed) as per today Moody’s: Issuer Rating A3 (outlook stable); Fitch: Senior Unsecured Rating A- (outlook stable)

Corporate PSP Swiss Property certified as Great Place to Work®

Sustainability Ratings: EPRA (Gold); GRESB (Green Star); CDP (A- Rating); MSCI (A Rating)

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Outlook 41

Annex 43


Consolidated, in CHF m 20171 2018 2019 Q1 2019 Q1 2020 ∆

Ebitda excl. ∆-RE2 242.2 241.7 256.1 65.4 63.3 -3.1%Net income excl. ∆-RE2 177.7 176.2 215.2 50.5 48.1 -4.8%Net income 256.9 308.2 453.4 79.7 47.9 -39.9%Rental income 272.5 279.4 290.5 72.4 74.0 2.2%

Per share, in CHF 20171 2018 2019 Q1 2019 Q1 2020 ∆

EPS 5.60 6.72 9.89 1.74 1.04 -39.9%EPS excl. ∆-RE2 3.87 3.84 4.69 1.10 1.05 -4.8%EPRA EPS 3.54 3.64 3.94 1.01 1.04 3.0%

NAV 86.96 90.63 97.02 98.05 1.1%3

NAV before deferred taxes 104.22 109.20 115.82 116.94 1.0%3

EPRA NAV 105.26 110.24 117.04 118.17 1.0%3

Share price 92.35 96.85 133.60 120.70 -9.7%3

Distribution 3.40 3.50 3.604 n.a. n.a.1 Restated due to IFRS 15, Revenue from Contracts with Customers (recognition of revenues relating to condominium sales). Relevant FY17 P/L positions

affected: EBITDA excl. ∆-RE2 was CHF 242.8m; net income excl. ∆-RE2 was CHF 178.3m; EPS excl. ∆-RE2 was CHF 3.89. 2 Excl. ∆-RE: excluding net changes in fair value of the real estate investments, realised income on sales of investment properties and

all of the related taxes. Income from the sale of properties, which were developed by the Company itself, is included.3 Compared to year-end 2019.4 Ordinary dividend, paid on 17 April 2020.


Key Figures

Consolidated Income

(CHF 1’000) 20171 2018 2019 Q1 2019 Q1 2020 ∆

Rental income 272’454 279’373 290’460 72’440 74’042 2.2%2

Valuation gains 83’253 166’692 244’176 19’735 -235Prop. sales revenues (condominiums) 19’614 10’484 12’835 2’458 851Property sales (investment properties) 627 2’472 14’961 14’961 0Income from associated companies 4 11 2 1 4Capitalised own services 2’646 4’613 4’863 2’908 1’020Other income 2’3933 3’5474 3’0925 80 0Total operating income 380’991 467’193 570’389 112’584 75’682 -32.8%

1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Like-for-like rental change 0.5%.3 Of which CHF 2.3m VAT-opting-in effect.4 Of which CHF 2.0m VAT-opting-in effect.5 Of which CHF 3.0m VAT-opting-in effect.


Consolidated Expenses

(CHF 1’000) 20171 2018 2019 Q1 2019 Q1 2020 ∆

Properties’ operating expenses -11’796 -12’841 -12’014 -2’958 -2’500 -15.5%Properties’ maintenance/renovation -16’920 -16’961 -16’796 -4’025 -3’566 -11.4%Personnel expenses -19’242 -20’0272 -19’3433 -4’781 -4’872 1.9%Fees to subcontractors -48 -39 -48 - 23 -8General and administrative expenses -7’059 -7’690 -7’958 -1’795 -1’671 -6.9%Depreciation - 828 -1’084 -1’267 - 300 -329Total operating expenses -55’892 -58’642 -57’426 -13’882 -12’946 -6.7%


1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Incl. CHF 0.7m provision due to changes in pension schemes.3 Incl. CHF 0.9m release of pension plan obligations in the context of a lowered conversion rate.

Consolidated Results

(CHF 1’000) 20171 2018 2019 Q1 2019 Q1 2020 ∆

Profit before financial expenses 325’099 408’551 512’963 98’702 62’736 -36.4%Net financial expenses -24’370 -21’979 -19’084 -5’031 -3’841 -23.7%

Profit before taxes 300’730 386’572 493’879 93’671 58’895 -37.1%Taxes -43’8402 - 78’4203 -40’4544 -13’9245 -10’9686

Net income 256’890 308’152 453’425 79’747 47’928 -39.9%Net income excl. ∆-RE 177’7387 176’250 215’2148 50’5199 48’117 -4.8%


1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Of which CHF -17.5m current and CHF -26.4m deferred. The relatively low deferred taxes is due to the release of deferred taxes of CHF 17m

resulting from the corporate tax reform.3 Of which CHF -21.1m current and CHF -57.3m deferred (no release of deferred taxes).4 Of which CHF -29.4m current and CHF -11.1m deferred. The relatively low deferred taxes is due to the release of deferred taxes of CHF 59.1m

resulting from the corporate tax reform5 Of which CHF -10.6m current and CHF -3.3m deferred. The relatively low deferred taxes is due to the release of deferred taxes of CHF 5m

resulting from the corporate tax reform6 Of which CHF -6.8m current and CHF -4.1m deferred (no release of deferred taxes).7 Incl. CHF 4.1m effect of deferred tax release.8 Incl. CHF 22.1m effect of deferred tax release.9 Incl. CHF 1.6m effect of deferred tax release.

Definition “Net income excl. ∆-RE”: corresponds to the net income excluding net changes in fair value of the real estate investments, net income on sales of investment properties and all of the related taxes. Income from the sale of properties which were developed by the Company itself is, however, included.

Per Share Distribution (in CHF)

1.001.25

1.501.65

1.982.10

2.202.40

2.502.70

2.803.00

3.20 3.25 3.25 3.30 3.35 3.403.50 3.60

0

1

2

3

4

For business year 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

*

Y-t-y growth n.a. 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% 0.0% 1.5% 1.5% 1.5% 2.9% 2.9%

Payout ratio** 45.5% 52.1% 57.0% 53.6% 71.2% 76.9% 78.0% 86.3% 85.0% 82.7% 84.8% 86.5% 88.9% 85.8% 88.1% 93.8% 89.1% 87.9% 91.1% 76.7%

Payout yield*** 2.6% 3.9% 4.0% 3.8% 4.0% 3.7% 3.1% 4.2% 4.7% 4.6% 3.7% 3.8% 3.7% 4.3% 3.8% 3.8% 3.8% 3.7% 3.6% 2.7%

* Ordinary dividend, paid on 17 April 2020.** Payout / EPS excl. ∆-RE.*** Payout / share-price year-end.



Share Price, rebased to 100 (1.1.2018 – 29.4.2020)

Source: Bloomberg, 4.5.2020

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

PSP SPI Index rebased EPRA Index SREAL Index

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Outlook 41

Annex 43


7.272 7.343 7.384 7.442 7.682 7.820 7.849

7.982 8.055

8.5%

6.8%

6.1%

5.0%

4.4%4.0% 4.0%

3.5%3.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

1

2

3

4

5

6

7

8

9

10

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

Portfolio and Vacancy Rate

Real estate portfolio value in CHF bn.

Vacancy rate in % (CHF).


PropertiesVacancy

(sqm)*Vacancy

rateContribution

in %-pointsActions taken / status

Uraniastrasse 9, Zurich 1’128 20.6% 0.3% Letting in progress

Salmencenter, Rheinfelden 3’097 12.5% 0.2% New leases starting in Q2 and Q4 2020

Place Saint-Francois 5, Lausanne 1’596 30.4% 0.2% Renovation / Letting in progress

Richtistrasse 5, Wallisellen 2’253 27.0% 0.2% Letting in progress

Grosspeter Tower, Basel 1’370 8.3% 0.2% Letting in progress

Rue des Bains 31bis, 33, 35, Geneva 669 9.7% 0.2% Letting in progress

Hardturmstr.161/Fö’buckstr.150, Zurich 2’481 6.2% 0.1% Letting in progress

Avenue de Sévelin 46, Lausanne 1’570 13.1% 0.1% Letting in progress

Peter Merian-Str. 88/90, Basel 1’294 10.1% 0.1% Letting in progress

Rue de la Fontaine 5, Geneva 645 51.5% 0.1% Letting in progress

Total investment portfolio 35’570 3.2%


Largest Vacancies (March 2020)

* Ranked by rental value (CHF) of the vacancy.

Improvement since Q4 2019 Deterioration since Q4 2019

(Legal termination option by tenants)Expiry Profile of Leases (March 2020)

80% of the Q2-Q4 2020 maturities (CHF25.1m) are renewed.

20% of the Q2-Q4 2020 maturities are still open.

85% of the 2020 maturities (CHF31.7m) are renewed as per end of March 2020.

NL: Contracts not limited in time, but subject to notice.

The WAULT (weighted average unexpired lease term) of the total portfolio is 4.2 years. The WAULT of the ten largest tenants representing around 30% of the rental income is 6.0 years.

8%

16%17%

14%

7%

11%

6%

1%

4%

1%

8%

6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ NL


Changes in Fair Value (March 2020)

(CHF m) 2017 2018 2019 Q1 2020

Existing portfolio 83.3 170.61 236.72 0

Acquisitions / first-time valuation 0 - 3.93 7.54 -0.25

Total net changes in fair value 83.3 166.7 244.2 -0.2

1 Of which:H1 2018: CHF 95.4m, of which CHF 61.9m related to the investment portfolio and CHF 33.5m to the development portfolio;Q3 2018: CHF 16.0m related to two single properties (Basel, “Grosspeter Tower”, and Zurich West, “ATMOS” project);Q4 2018: CHF 59.1m, of which CHF 48.1m related to the investment portfolio and CHF 11.0m to the development portfolio.

2 Of which CHF 205.6m related to the investment portfolio and CHF 31.1m to the development portfolio.

3 From the Q1 2018 acquisition of nine properties, Edmond de Rothschild (Suisse) S.A. portfolio.

4 From the Q1 2019 acquisition of five investment properties, Bern, Bärenplatz 9, 11, 27, and the “Carba portfolio” in Bern-Liebefeld.

5 From the Q1 2020 acquisition of a single property (Zurich, Grubenstrasse 6).


2013

2014

2015

2016

2017

2018

2019

Weighted Ø discount rate(investment properties only) 4.91%* 4.81%* 4.57%* 3.82%** 3.62%** 3.49%**1 3.33%**

Nominal Discount Rate

Area Minimum Maximum Weighted ØZurich 2.5% 4.7% 3.3%Geneva 2.5% 4.4% 3.3%Basel 3.0% 3.9% 3.5%Bern 2.8% 4.3% 3.3%Lausanne 2.8% 4.3% 3.4%Other locations 3.1% 5.5% 4.0%All areas 2.5% 5.5% 3.3%**

* Nominal discount rate includes 1.0% annual inflation.** Nominal discount rate includes 0.5% annual inflation.

Valuation done by Wüest Partner.**1 Excl. the acquired Edmond de Rothschild portfolio and the completed “Grosspeter Tower” in Basel: 3.51%.


Changes in Fair Value: Discount Rates (Dec. 2019)

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Outlook 41

Annex 43

Debt

Diversified and stable lender portfolio 10 domestic banks and 1 syndicated loan (with 11 Swiss Cantonal banks)

Bonds issued in the amount of CHF 250m in 2020 All-in costs of -0.48% p.a. for CHF 100m with maturity 2021 All-in costs of 0.18% p.a. for CHF 150m with maturity 2029

High visibility on debt maturity profile Weighted average loan maturity of 5.8 years, Ø fixed-interest period of 5.9 years CHF 350m, 10yr fixed credit agreement signed in Q1 2020 New CHF 200m uncommitted credit line signed in Q1 2020 No loan and bond maturities in 2020

CHF 770m unused credit lines (thereof CHF 620m committed) as per today

Rating Moody’s: Issuer Rating A3 (outlook stable) Fitch: Senior Unsecured Rating A- (outlook stable)


Capital Structure

Money values in CHF m 20171 2018 2019 Q1 2020 ∆

Shareholders‘ equity 3’988.6 4’156.9 4’450.2 4’497.3 1.1%- % of total assets 54.0% 54.6% 55.4% 55.3%

Deferred tax liabilities (net) 792.0 851.9 862.4 866.5- % of total assets 10.7% 11.2% 10.7% 10.7%

Interest-bearing debt 2’491.1 2’511.2 2’596.1 2’666.1 2.7%- % of total assets 33.7% 33.0%2 32.3% 32.8%- Loans, unsecured 1’300.0 1’120.0 800.0 820.0- Bonds 1’191.1 1’391.2 1’779.6 1’829.8- % long-term 100.0% 75.3% 78.8% 83.1%

Net financial expenses 24.4 22.0 19.1 3.8- Ø cost of debt 1.16% 0.94% 0.77% 0.71%3

Interest coverage ratio 10.0 x 11.0 x 13.4 x 16.5 xFixed interest rate > 1 year 96.0% 76.5% 76.9% 91.7%Ø fixed-interest period in years 3.6 3.0 4.4 5.9

1 Restated due to IFRS 15, Revenue from Contracts with Customers.2 Adjusted LTV of 31.8%, excl. debt of CHF 125m related to temporary fixed-term deposits. Debt was repaid on 10 July 2019.3 Reflects the average cost of debt over the past four quarters. As per 31 March 2020, the passing average rate was 0.58% (31 Dec. 2019: 0.73%).


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Outlook 41

Annex 43

Project Pipeline


CHF 294m to invest going forward

Basel „Steinentorberg“

Paradiso “Parco Lago”

Geneva „Rue du Marché“

Zurich „ATMOS“

Zurich „Bahnhofquai/-platz“

Bern “Bärenplatz“

Basel “Baufeld C”

Zürich “Grubenstrasse”

CHF 35m

CHF 80m

CHF 55m

CHF 130m

3 sites

12 projects

3

CHF 45m

4

1

3

2

1/7

5

4/5/8

2

2017 2018 2019 2020 2021 2022 2023

CHF 18m

CHF 14m

CHF 35m

6

7

6

CHF 34m

8

«Residenza Parco Lago» Paradiso

Under construction Conversion of existing site (former brewery)

Completion end of 2020, all units to be sold

New building with mixed use (approx. 13’000 m2): mainly residential units & some office and retail area

Investment sum approx. CHF 80m (thereof CHF 39.3m spent)

31% of units sold (further 13% reserved)

www.parcolagoparadiso.ch


Visualisation

Project «Rue du Marché» Geneva


Under construction Renovation, investment sum approx. CHF 35m

(thereof CHF 29.5m spent) Hotel (144 rooms) opening August 2020 Anchor tenant: citizenM (international boutique hotel group) February 2019: lease signed with Aeschbach (traditional

Geneva store) for the remaining retail space 100% pre-let

Visualisations

Under construction Förrlibuckstrasse 178/180, Hardturmstrasse 181/183/185 New building/construction of modern office building Completion beginning 2021


100% pre-let (well-balanced tenant mix, with On, Swiss running shoe brand, as anchor tenant)

www.atmos-zuerich.ch

Project «ATMOS» Zurich


Visualisations

Project «Bahnhofquai/-platz» Zurich

Renovation in three stages, total investment sum approx. CHF 112m

Stage 1, under construction:

Bahnhofplatz 1, Bahnhofquai 9/11/15

Completion Q3 2021


Long-term lease signed with IWG, International Workplace Group (for a premium co-working brand)

95% pre-let


Project «Bahnhofquai/-platz» Zurich (cont.)

Stage 2, under construction: Waisenhausstrasse 2/4, Bahnhofquai 7 Completion end 2021 Investment sum approx. CHF 45m

(thereof CHF 13.2m spent) Long-term lease signed with: Ruby Hotel & Resorts (“Lean Luxury” concept,

208 rooms) Candrian Catering, “Du Pont Brasserie & Bar”

100% pre-let

Stage 3, in planning:

Bahnhofplatz 2

Construction period expected mid-2021 untilbeginning of 2023

Investment sum approx. CHF 12m


Visualisation

Project «Bärenplatz» Bern


Planned project Bärenplatz 9, 11, 27 / Käfiggässchen 10, 22, 26 (acquired in 2019) Comprehensive renovation and modernisation

Mixed use: gastronomy (approx. 1’100 m2), office (approx. 1’300 m2) and residential (approx. 900 m2)

30% pre-let (gastronomy area)


Construction period expected mid-2020until end of 2021

Planned project Grosspeterstrasse 18 New building/construction Approx. 5’600 m2 office space 50% pre-let to Swisscom Investment sum approx. CHF 34m Construction period to be defined,

presumably mid-2020 until end of 2022

Project «Baufeld C» Basel


Visualisation

Project «Grubenstrasse» Zurich


Visualisation

Planned project Grubenstrasse 6 (district 2), plot of land with commercial building acquired in March 2020 New building/construction with office (approx. 5’600 m2) and commercial (approx. 5’900 m2) areas


Construction period expected Q1 2021 until Q1 2023

CAPEX Potential rental

income3Pre-let

in %

(CHF m)

expected2020-2025

2020 2021 2022-2025

Project “Rue du Marché”, Geneva1 3.8 3.8 0 0 ~ 5.5 100%

“Residenza Parco Lago”, Paradiso1 40.4 27.1 13.2 0 n.a. n.a.

Project “Bahnhofquai/-platz”, Zurich1, 2 87.7 28.0 39.2 20.5 ~ 12.1 98%4

Project “ATMOS”, Zurich1 68.7 34.9 33.9 0 ~ 9.3 100%

Project “Steinentorberg”, Basel1 9.4 9.4 0 0 ~ 4.2 90%

Project “Grosspeter, Baufeld C”, Basel2 32.8 10.1 11.7 11.0 ~ 2.0 50%

Project “Förrlibuck Parking”, Zurich2 4.4 4.4 0 0 ~ 2.3 90%

Project “Bärenplatz”, Bern1 12.2 5.9 5.1 1.2 ~ 1.9 30%

Project “Grubenstrasse”, Zurich2 35.0 5.0 15.0 15.0 ~ 2.9 0%

Total development sites 294.4 128.6 118.1 47.7 ~ 40.35

thereof committed 98.2 n.a. n.a.

Total investment portfolio ~ 47.1 n.a. n.a.


Capex and Potential Rental Income Overview

1 Under construction/renovation.2 In planning.3 Potential rental income after completion assuming full letting.4 Relating to properties Zurich, Bahnhofplatz 1, Bahnhofquai 9/11/15 and Waisenhausstrasse 2/4, Bahnhofquai 7.5 Of which CHF 12.7m already earned as per 31.03.2020.

Acquisitions Q1 2020


Grubenstrasse 6, Zurich (district 2) 25 March 2020 Plot of land with commercial building Price CHF 33.5m New construction planned (see slide 31)

Current building

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Outlook 41

Annex 43

Subsequent Events


Ordinary Annual General Meeting on 9 April 2020

All proposals of the Board of Directors approved, inter alia:

Dividend of CHF 3.60 gross per share (paid on 17 April 2020, totalling CHF 165.1m)

Re-elections of Luciano Gabriel as Chairman of the Board of Directors and of all other six current members of the Board of Directors as well as of the four current members of the Compensation Committee (each for one year term)

Election of Mr. Henrik Saxborn as new member of the Board of Directors (one year term)

Re-election of Ernst & Young AG, Zurich, as statutory auditors for the 2020 business year, and Proxy Voting Services GmbH, Zurich, as independent shareholder representative for a term of office of one year

Both, the Compensation Committee and the Audit Committee consist of Peter Forstmoser (Chairman), Adrian Dudle, Nathan Hetz and Josef Stadler; the Nomination Committee of Josef Stadler (Chairman), Corinne Denzler and Adrian Dudle.

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Outlook 41

Annex 43

COVID-19 Implications


Partial Lockdown in Switzerland As of 13 March 2020, the Federal Council issued emergency ordinances Non-food retail stores, restaurants, leisure facilities and schools were closed until 26 April 2020 As of 27 April 2020, the Federal Council has permitted a gradual exit from the lockdown The Federal Council decided on several measures to support directly affected companies (such as

short-time work compensation, guarantees linked to credit facilities, etc.) Further measures by the Federal Council are reserved

Operational measures taken by PSP Swiss Property Employees health top priority Safeguard the continuity of the operations Implementation of the regulations issued by the Federal Council and the Federal Office of Public

Health (including hygiene, social distancing, etc.)

Not affected, 79%

Non-food retail, 13%

Gastronomy, event locations, 4%Fitness, spa, 3%

Services (beauty, education, tourism), 1%

COVID-19 Implications, cont.


Tenant issues and measures taken Limited exposure to sectors affected directly by partial lockdown (21% of rental income) ~ 300 tenants asked for rent holiday, reduction, etc. (out of total ~ 2’300 tenants) April rents in the amount of CHF 3.5m were deferred for one months April rent (total) collection: 72% (CHF 18.2m) have been collected so far April rent (affected tenants) collection: 25% (CHF 1.5m) have been collected so far Approach: temporary and provisional deferments are not a waiver, i.e. the rents are still due

COVID-19 Implications, cont.


Construction sites and capex Expected delays for “Residenza Parco Lago” in Paradiso/Lugano, “Rue du Marché” in Geneva and

“Baufeld C” in Basel (in planning) All other projects on track, especially “ATMOS” in Zurich West and Bahnhofplatz project in Zurich Planned capex for development projects: CHF 129m by end of 2020 and CHF 118m in 2021

P/L implications 2020 Lower income from development projects (i.e. Rue du Marché, Geneva) Discussions/negotiations with tenants affected by the lockdown Lower turnover-linked rental income in FY 2020 (CHF 2.7m in FY 2019) Lower than expected maintenance and renovations capex Anticipation of sale of development projects originally planned for 2021 (i.e. Zurlindenstrasse, Zurich)

Capital structure and liquidity As per 31 March 2020: Equity ratio 55.3% (CHF 4.5bn), LTV 32.8% (CHF 2.7bn) As per today: CHF 770m unused credit lines (therefore CHF 620m committed) and

around CHF 20m cash & cash equivalent No refinancing needs in 2020, bonds totalling CHF 250m in 2021

Focus going-forward Accommodating to tenant needs Development projects

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Outlook 41

Annex 43

Outlook 2020

Consolidated EBITDA (excl. changes in fair value), new guidance ~ CHF 260m

Vacancy rate portfolio (year-end), new guidance ~ 3.5%


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Outlook 41

Annex 43

Board of Directors and Executive Board

Board of Directors Luciano Gabriel, 1953, Chairman

Corinne Denzler, 1966, Member Adrian Dudle, 1965, Member Peter Forstmoser, 1943, Member

Nathan Hetz, 1952, Member

Henrik Saxborn, 1964, Member

Josef Stadler, 1963, Member

Aviram Wertheim, 1958, Member

Executive Board Giacomo Balzarini, 1968, CEO/CFO

Reto Grunder, 1974, CIO

Martin Heggli, 1977, COO


Number of employees: 93 * Number of caretakers: 22

Property ManagementReal Estate Investments

Construction (18)

Asset Management (4)

Finance / Operations

Zurich Office (19, 12*)

Geneva Office (6, 5*)

Olten Office (10, 5*)

Accounting / Financing (9)

Analysis / Reporting (1)

Executive Board (3)

Project Development (1)


Property Marketing / CRM (3) IT (5)

Tax / Controlling (1)

Communications / IR / Sustainability (2),Legal (4), HR (1), Secretariat (1)

Group Overview (1 April 2020)

Services / Hospitality (4)

Transactions / Portfolio Steering (1)

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 Sites development Repositioning of assets to best use

Assessing acquisition opportunities and corporate deals

PSP Strategy


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 (economic, ecological, social)

Share

Liquid stock

Attractive payout yield Broadly diversified shareholder structure


Shareholder Base (31 March 2020)

Largest shareholder Chase Nominees Ltd.: 10.04% BlackRock, Inc.: 5.86%1

Alony Hetz: 5.67% Credit Suisse Funds AG: 5.20%2

Nortrust Nominees Limited: 3.50% UBS Fund Management (Switzerland) AG: 3.06%3

Number of registered shareholders: 4’549- Individuals: 3’879 (9% of registered shares)- Legal entities: 670 (91% of registered shares)

1 As per notification 2 September 2017.

2 As per notification 14 November 2019.

3 As per notification 13 July 2017.

CH, 36%

UK, 14%Israel, 6%

France / BeNeLux, 4%

Other, 4%

Non-registered, 36%



Development of rental income

(CHF 1‘000)

74’042

72’440

-842

+381

-518

+816

+892

+874

Rental income Q12019

Change rentalincome

Effect newconstructions

Effect sales Effectdevelopments

Vacancy change Other Rental income Q12020

67‘000

69‘000

0

71‘000

73‘000

75‘000

Ebitda excl. ∆-RE in CHF m.

Ebitda margin in %.

Ebitda

242.2 241.7 256.1

65.4 63.3

81.5%80.8%

82.0%

82.8%83.4%

75%

80%

85%

0

50

100

150

200

250

300

2017 2018 2019 Q1 2019 Q1 2020


FY17: restated due to IFRS 15, Revenue from Contracts with Customers.

Net income excl. ∆-RE in CHF m.

Contribution of ∆-RE in CHF m.

Net Income Components

177.7 176.2215.2

50.5 48.1

79.2

131.9

238.2

29.2

-0.2-50

0

50

100

150

200

250

300

350

400

450

500

2017 2018 2019 Q1 2019 Q1 2020



EPS in CHF.

EPS excl. ∆-RE in CHF.

EPS

5.60

6.72

9.89

1.741.04

3.87 3.84

4.69

1.10 1.050

1

2

3

4

5

6

7

8

9

10

2017 2018 2019 Q1 2019 Q1 2020



NAV + Cumulative Dividend per Share

NAV per share in CHF.

Payout in CHF, cumulative (allocation according to payment date). Q1 2020, incl. DPS of CHF 3.60, paid on 17 April 2020.

42.2147.24

50.58 51.02 51.80 53.2856.25

59.71 61.8364.95

68.87

75.2880.48

83.70 83.74 84.38 84.3086.96

90.63

97.02100.00

0.001.00

2.253.75 5.40

7.389.48

11.6814.08

16.5819.28

22.08

25.0828.28

31.5334.78

38.08

41.43

44.83

48.33

51.93

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q12020


NAV per share in CHF.

Share price in CHF.

NAV vs. Share Price

86.96 90.6397.02

92.3698.05

92.3596.85

133.60

108.20

120.70

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

2017 2018 2019 Q1 2019 Q1 2020



EPRA Performance Measures

1 Excl. direct vacancy costs.

Q1/Dec. 2019 Q1 2020(CHF or %) EPRA PSP EPRA PSPA. EPS 1.01 1.10 1.04 1.05

B. NAV 117.04 115.82 118.17 116.94

C. NNNAV 97.31 97.02 99.41 98.05

D. “topped-up” NIY 3.4 n.a. 3.5 n.a.

E. Vacancy rate 3.6 3.5 3.2 3.2

F. Cost ratio1 17.3 15.1 16.1 14.3

G. Like-for-like rental change 1.9 n.a. 0.5 n.a.

H. Capex in CHF 1’000 249’235 n.a. 74’729 n.a.


Portfolio Key Figures

Numbers of properties

Rentalincome

in CHF m

Revaluation in CHF m

Value in CHF m

Net yield in %

Vacancy in %

Zurich Q1 2020 77 41.9 0 4’354.2 3.4 2.1FY 2019 77 166.3 152.0 4’348.8 3.4 2.5

Geneva Q1 2020 19 8.0 0 888.9 3.3 4.3FY 2019 19 32.6 21.6 890.0 3.1 4.4

Basel Q1 2020 14 6.7 0 619.4 3.8 4.1FY 2019 14 25.8 10.6 631.4 3.6 4.3

Bern Q1 2020 16 4.8 0 497.4 3.4 2.8FY 2019 17 20.0 16.7 543.4 3.1 3.4

Lausanne Q1 2020 16 4.7 0 427.6 3.9 8.2FY 2019 16 17.6 7.2 427.4 3.3 8.3

Others Q1 2020 19 5.2 0 419.3 4.2 5.3FY 2019 19 20.4 4.4 418.5 4.1 5.1

Sites Q1 2020 15 3.1 - 0.2 847.9 n.a. n.a.FY 2019 12 9.3 31.6 722.2 n.a. n.a.

Total Q1 2020 176 74.5 - 0.2 8’054.7 3.5 3.2FY 2019 174 292.1 244.2 7’981.7 3.4 3.5


Rent by Use

Office, 63%

Retail, 16%

Parking, 5%

Gastronomy, 4%

Other, 11%


Rent by Type of Tenants

Services, 20%

Retail, 19%

Financial Services, 11%Telecommunication, 11%

Technology, 10%

Health Care, 9%

Gastronomy, 8%

Government, 6%

Other, 7%


Largest Tenants

Swisscom, 9%

Google, 4%

E.d.Rothschild, 2%

Swiss Post, 2%

Bär & Karrer, 2%

Next five largest, 8%

Other, 72%


Sustainability

Organisation Sustainability initiatives steered by 8-member panel composed of representatives from property

management, construction, asset management, human resources and communications.

Implementation in the hands of most involved department for each initiative

3 full-time specialists for energy and HVAC (new building, renovations, operational optimisation)

Standards and Ratings

EPRA sBPR, Gold Award

GRESB, Green Star

CDP, A-

MSCI, A


Sustainability

Portfolio 86% of the portfolio is very well connected, 11% is well connected to public transport (“ÖV-Güteklasse” A and B)

Achieved a 44% reduction in CO2 emissions per square metre since 2010 (from 21.1 to 11.7 kg CO2e/m2)

Achieved a 25% reduction in energy use per square metre since 2010 (from 125 to 93.5 kWh/m2)

2019: Own solar PV production: 1’241 MWh

Share of electricity consumption from renewable sources: 98%

Reduced specific energy consumption in spite of lower vacancy rate and colder winter by 2.6% YoY

New CO2 reduction goal and CO2 reduction path will be defined in 2020. An external partner to support us in this has been selected in Q1 2020. The focus going forward will be on the establishment of a good data set that reflects the actual conditions in the individual buildings.


Sustainability

Tenants Two thirds of properties connected to energy control and alarm management system

Increasing focus on operational optimisation. Example Hardturmstrasse 161, Zurich: Optimisation measures will reduce heating energy consumption by approx. 300,000 kWh (- 15%) and electricity consumption by approx. 150,000 kWh (- 20%)

Increased efforts in digitalisation in marketing as well as property management in order to improve transparency, efficiency and service

Employees Employee survey carried out in autumn 2019 with very positive result:

– Received certification as “Great Place to Work®”– Trust Index of 85% is above average in Switzerland– 96% of all employees agreed with the statement “All in all I can say that this is a very good

place to work.” Diversity: Significantly increased share of women in the construction unit


No. Property1 Rue de Sébeillon 2, Lausanne2 Bahnhofstrasse 10/Börsenstr. 18, Zurich3 Baslerstrasse 44, Olten4 Barfüsserplatz 10, Basel5 Löwenstrasse 16, Zurich6 Theaterstrasse 22, Zurich7 Route des Acacias 50, 52, Carouge GE8 Laupenstrasse 18/18a, Bern9 Bahnhofstrasse 66, Zurich10 Bahnhofstrasse 28a, Zurich

1 - 10: Examples of improvements due to investments (2008-2019)

Source: Wüest Partner, December 2019.


Portfolio Grid

Zurich Area

© PSP Swiss Property I Bahnhofstr. 28a

Bahnhofstr. 81

Brandschenkestr. 90

Bahnhofstr. 66

Seefeldstr. 123

Uraniastr. 9

Bahnhofstr. 10

Bahnhofstr. 39

Bahnhofplatz 9

Zurich

= Investment properties= Development projects

Geneva Area


Rue Richard-Wagner 6

Rue des Bains 31/33/35

R.d. Acacias 50/52

Rue de la Gabelle 6

Place du Molard 7

Cours de Rive 13/15

Rue de la Fontaine 5

Rue de la Corraterie 24/26

Geneva

= Investment properties= Development project

Basel Area


Marktplatz 30/30a

Barfüsserplatz 10

Steinentorberg 8/12

Kirschgartenstr. 12/14

Peter Merian-Str. 88/90

Freie Strasse 38

St. Alban-Anlage 46

Grosspeterstr. 44

Dornacherstr. 210

Basel

= Investment properties= Development projects

Bern Area


Bollwerk 15

Laupenstrasse 18/18a

Eigerstrasse 2

Seilerstrasse 8

Zeughausgasse 26/28

Kramgasse 49

Kramgasse 78

Bern

Bärenplatz

= Investment properties= Development project

Lausanne Area


Rue de Sébeillon 2

Avenue de Sévelin 54

Avenue de Sévelin 40

Avenue de Cour 135

Rue Saint Martin 7

Rue du Pont 22

Place Saint-François 5

Place Saint-François 15

Lausanne

= Investment properties

Giacomo Balzarini CEOPhone +41 (0)44 625 59 59Mobile +41 (0)79 207 32 [email protected]

Vasco Cecchini Corporate Communications & IRPhone +41 (0)44 625 57 23Mobile +41 (0)79 650 84 [email protected]

Contacts


mailto:[email protected]

mailto:[email protected]

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 presentation have been or will be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or under the applicable securities laws of any state or other jurisdiction of the United States.


Q1 2020 RESULTS - PSP Swiss Property · 2017. 1. 2018. 2019. q1 2019: q1 2020 ∆ eps. 5.60. 6.72:...

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