Psp Swiss Property Ag · SIX:PSPN

Psp Swiss Property — Q1-Q3 2023 Earnings Presentation

63 slides from Psp Swiss Property's earnings presentation, Nov 7, 2023

1. Slide 1: Quarterly Results Q1-Q3 2023

   Quarterly Results Q1-Q3 2023 7 November 2023

2. Slide 2: Agenda

   Agenda Key Facts and Figures 3 Financial Results Q1-Q3 2023 7 Portfolio & Vacancy Rate 14 Green Finance Policy & Capital Structure 20 Development Projects, Acquisitions & Disposals 24 Outlook 34 Annex 36 © PSP Swiss Property I Page 2

3. Slide 3: Property Portfolio (September 2023)

   Property Portfolio (September 2023) Basel Zurich CHF 0.7bn CHF 5.6bn Portfolio value CHF 9.7bn 7% 58% Lausanne Bern CHF 0.4bn CHF 0.6bn 4% 6% Geneva CHF 1.5bn 15% Other locations CHF 0.4bn 4% Sites and projects CHF 0.6bn 6% In total, 162 investment properties, plus: 3 sites: “Residenza Parco Lago“,

4. Slide 4: Current Market Environment

   Current Market Environment Swiss market environment  Market for prime office properties in Swiss main markets healthy  Good business sentiment in our key markets Zurich and Geneva  Demand for letting office space at prime locations is healthy  In secondary locations demand continues to be week 

5. Slide 5: Main Developments

   Main Developments Real estate portfolio  Portfolio value CHF 9.7bn (up 2.5% compared with December 2022)  Acquisition: “Westpark“, modern office property in a good location in Zurich West, CHF 216.5m (Q2)  Disposals: - One investment property, CHF 3.0m (Q1) - Site and development properties, tota

6. Slide 6: Agenda

   Agenda Key Facts and Figures 3 Financial Results Q1-Q3 2023 7 Portfolio & Vacancy Rate 14 Green Finance Policy & Capital Structure 20 Development Projects, Acquisition & Disposals 24 Outlook 34 Annex 36 © PSP Swiss Property I Page 6

7. Slide 7: Key Figures

   Key Figures Consolidated, in CHF m 2021 2022 Q1-Q3 2022 Q1-Q3 2023 ∆ Ebitda excl. ∆-RE1 278.8 293.8 226.7 226.9 0.1% Net income excl. ∆-RE1 221.1 235.7 181.3 210.8 16.3% Net income 595.0 330.0 284.0 155.3 -45.3% Rental income 309.6 316.2 236.8 247.6 4.5% Per share, in CHF 2021 2022 Q1-Q3 2022 Q1-Q3

8. Slide 8: Consolidated Income

   Consolidated Income (CHF 1’000) 2021 2022 Q1-Q3 2022 Q1-Q3 2023 ∆ Rental income 309’6381 316’231 236’822 247’553 4.5%5 Valuation gains 464’920 124’886 131’894 -67’188 Property sales revenues (condominiums) 20’059 25’181 23’666 13’896 -41.3% Property sales (investment properties) 9’462 -447 -447 910

9. Slide 9: Consolidated Expenses

   Consolidated Expenses (CHF 1’000) 2021 2022 Q1-Q3 2022 Q1-Q3 2023 ∆ Properties’ operating expenses -11’143 -11’169 -8’391 -8’301 -1.1% Properties’ maintenance/renovation -17’494 -16’859 -12’509 -10’548 -15.7% Personnel expenses -20’011 -20’390 -15’365 -15’510 0.9% Fees to subcontractors -34 -37 -28

10. Slide 10: Consolidated Results

    Consolidated Results (CHF 1’000) 2021 2022 Q1-Q3 2022 Q1-Q3 2023 ∆ Profit before financial expenses 750’688 415’778 355’962 159’761 -55.1% Net financial expenses -11’122 -11’560 -8’593 -15’451 79.8% Profit before taxes 739’566 404’219 347’369 144’310 -58.5% Taxes -144’5451 -74’2592 -63’4013 11’0344,

11. Slide 11: Per Share Distribution (in CHF)

    Per Share Distribution (in CHF) 4 3.75 3.80 3.60 3.65 3.50 3.30 3.35 3.40 3.20 3.25 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 20221 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Business year Y-t-y growth

12. Slide 12: Share Price, rebased

    Share Price, rebased PSP SPI Index SMI Index EPRA Index SREAL Index 450 400 350 300 250 200 150 100 50 0 Source: Bloomberg, 06.11.2023 © PSP Swiss Property I Page 12

13. Slide 13: Agenda

    Agenda Key Facts and Figures 3 Financial Results Q1-Q3 2023 7 Portfolio & Vacancy Rate 14 Green Finance Policy & Capital Structure 20 Development Projects, Acquisition & Disposals 24 Outlook 34 Annex 36 © PSP Swiss Property I Page 13

14. Slide 14: Portfolio & Vacancy Rate

    Portfolio & Vacancy Rate 10 10% 9 9% 8 8% 7 9.7 7% 9.3 9.4 9.4 9.6 9.4 9.0 9.0 9.1 9.2 6 8.6 6% 8.6 5 5% 3.8% 3.7% 4 3.5% 3.5% 4% 3.0% 3.1% 3.1% 3 3% 3.1% 3.0% 3.2% 3.2% 3.2% 2 2% 1 1% 0 0% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Real estate po

15. Slide 15: Largest Vacancies (September 2023)

    Largest Vacancies (September 2023) Vacancy Vacancy Contribution Properties (sqm)1 rate in %-points Actions taken (vacancy incl. letting success) Peter Merian-Strasse 88/90, Basel 2'929 24.9% 0.3% Letting in progress Grosspeterstrasse 18 / 2’671 47.0% 0.3% New leases starting Q4 2023 (fully let) Gros

16. Slide 16: Expiry Profile of Leases (September 2023)

    Expiry Profile of Leases (September 2023) (Legal termination option by tenants) 18% 16% 16% 14% 14% 12% 13% 13% 10% 11% 8% 9% 6% 6% 4% 5% 4% 3% 4% 2% 3% 0% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033+ NL 78% of the Q4 2023 maturities (CHF 16.6m) are renewed; remaining 22%: 15%-points upco

17. Slide 17: Changes in Fair Value (September 2023)

    Changes in Fair Value (September 2023) (CHF m) 2020 2021 2022 Q1-Q3 2023 Existing portfolio 111.8 464.9 124.1 -70.61 Acquisitions / first-time valuation -10.2 0.0 0.8 3.42 Total net changes in fair value 101.6 464.9 124.9 -67.2 1 Of which: Q2 2023: CHF -104.2m related to the investment portfolio and

18. Slide 18: Changes in Fair Value: Discount Rates (June 2023)

    Changes in Fair Value: Discount Rates (June 2023) – Valuation done by Wüest Partner Portfolio nominal discount rate Area Minimum Maximum Weighted Ø Zurich 3.1% 5.7% 3.7% Geneva 3.1% 5.6% 3.7% Basel 3.3% 4.4% 4.1% Bern 3.4% 5.2% 3.9% Lausanne 3.4% 5.2% 4.1% Other locations 3.7% 5.2% 4.5% All areas (a

19. Slide 19: Agenda

    Agenda Key Facts and Figures 3 Financial Results Q1-Q3 2023 7 Portfolio & Vacancy Rate 14 Green Finance Policy & Capital Structure 20 Development Projects, Acquisition & Disposals 24 Outlook 34 Annex 36 © PSP Swiss Property I Page 19

20. Slide 20: Green Finance Policy

    Green Finance Policy Green bonds (November 2022)  100% Green bond portfolio with reclassification of existing bonds  Green assets defined over maximum CO2 emissions and minimum Wüest ESG  Two second party opinions obtained by ISS ESG and Moody’s ESG Solutions Sustainability-linked loans (February

21. Slide 21: Debt

    Debt Diversified and stable lender portfolio  11 domestic banks and 1 syndicated loan (with 11 Swiss Cantonal banks) High visibility on debt maturity profile  Weighted average loan maturity of 4.65 years, Ø fixed-interest period of 4.08 years  Last bond: 2 June 2023, CHF 200m, 5.2 years, all-in p

22. Slide 22: Capital Structure

    Capital Structure Money values in CHF m 2020 2021 2022 Q1-Q3 2023 ∆ Shareholders’ equity 4’579.2 5’019.1 5’198.4 5’176.2 -0.4% - % of total assets 52.8% 54.7% 54.8% 53.2% Deferred tax liabilities (net) 905.5 1’028.1 1’068.1 1’036.8 -2.9% - % of total assets 10.4% 11.2% 11.3% 10.7% Interest-bearing d

23. Slide 23: Agenda

    Agenda Key Facts and Figures 3 Financial Results Q1-Q3 2023 7 Portfolio & Vacancy Rate 14 Green Finance Policy & Capital Structure 20 Development Projects, Acquisition & Disposals 24 Outlook 34 Annex 36 © PSP Swiss Property I Page 23

24. Slide 24: Project B2Binz, Zurich

    Project “B2Binz“, Zurich Under construction  Grubenstrasse 6 / 8, Zurich  New building with office (approx. 5’200 m2) and commercial (approx. 6’100 m2) areas  Completion end of 2023  Investment sum approx. CHF 35m (thereof CHF 32.4m spent)  7% pre-let Visualisations © PSP Swiss Property I Page

25. Slide 25: Project Zürcherhof Zurich

    Project “Zürcherhof“ Zurich Under construction  Limmatquai 4, Zurich  Comprehensive renovation and modernisation  Completion end of 2023  Investment sum approx. CHF 25m (thereof CHF 15.3m spent)  65% pre-let Visualisation © PSP Swiss Property I Page 25

26. Slide 26: Project Füsslistrasse Zurich

    Project “Füsslistrasse“ Zurich Under construction  Füsslistrasse 6, Zurich  Comprehensive renovation and modernisation  Completion mid-2024  Investment sum approx. CHF 20m (thereof CHF 10.8m spent)  0% pre-let Visualisations © PSP Swiss Property I Page 26

27. Slide 27: Project Hochstrasse Basel

    Project “Hochstrasse“ Basel Under construction  Hochstrasse 16 / Pfeffingerstrasse 5, Basel  Comprehensive renovation and repositioning  About half of the rental space (approx. 15’500 m2) will be converted to 187 serviced apartments (operated by Artisa City Pop)  Completion end of 2024  Investm

28. Slide 28: Project The12 Zurich

    Project “The12“ Zurich Under construction  Theaterstrasse 12, Zurich  Comprehensive renovation and modernisation  Approx. 5’000 m2 rentable area (retail, gastronomy, office)  Completion end of 2024  Investment sum approx. CHF 35m (thereof CHF 9.5m spent)  100% pre-let Work in progress Visualis

29. Slide 29: Project TEC Basel

    Project “TEC“ Basel Under construction  Grosspeterstrasse 24, Basel  Approx. 11’300 m2 letting space, thereof approx. 5’000 m2 to be modernised  Completion end of 2024  Investment sum approx. CHF 7m (thereof CHF 0.4m spent)  42% pre-let © PSP Swiss Property I Page 29

30. Slide 30: Capex and Potential Rental Income Overview

    Capex and Potential Rental Income Overview CAPEX Potential rental Pre-let Completion Total expected income1 in % 2023-2025 2023 2024 2025 (CHF m) Project “Füsslistrasse“, Zurich 2024 20.0 9.2 5.9 3.4 0 ~ 4.2 0% Project “TEC“, Basel 2024 7.0 6.6 2.9 3.7 0 ~ 2.5 42% Project “B2Binz“, Zurich 2023 35.0

31. Slide 31: Acquisition Westpark in Zurich West

    Acquisition “Westpark“ in Zurich West Zurich, Pfingstweidstrasse 60/60b  Modern office property in a good location in Zurich West  Approx. 27’100 m2 rentable area (mainly office) and 135 parking spaces  Acquisition price CHF 216.5m, 1 June 2023  Rental income p.a. CHF 9.5m  Vacancy rate 2.9% 

32. Slide 32: Disposals

    Disposals Q1 2023: Investment property  Interlaken, Bahnhofstrasse 23 CHF 3.0m (gain CHF 0.9m), 28 March 2023 Q2 2023: Site and development properties  Part of Areal “Wädenswil“ (Reithalle, Mühlequartier and Felsenkeller) CHF 13.0m (gain CHF 7.9m), 25 May 2023 Q3 2023: Site and development propert

33. Slide 33: Agenda

    Agenda Key Facts and Figures 3 Financial Results Q1-Q3 2023 7 Portfolio & Vacancy Rate 14 Green Finance Policy & Capital Structure 20 Development Projects, Acquisition & Disposals 24 Outlook 34 Annex 36 © PSP Swiss Property I Page 33

34. Slide 34: Outlook 2023 (confirmed)

    Outlook 2023 (confirmed) Consolidated EBITDA (excl. changes in fair value) CHF 295m (2022: CHF 293.8m) Vacancy rate portfolio, at year-end < 4% (end of September 2023: 3.2%) © PSP Swiss Property I Page 34

35. Slide 35: Agenda

    Agenda Key Facts and Figures 3 Financial Results Q1-Q3 2023 7 Portfolio & Vacancy Rate 14 Green Finance Policy & Capital Structure 20 Development Projects, Acquisition & Disposals 24 Outlook 34 Annex 36 © PSP Swiss Property I Page 35

36. Slide 36: Board of Directors and Executive Board

    Board of Directors and Executive Board Board of Directors  Luciano Gabriel, 1953, Chairman  Henrik Saxborn, 1964, Vice Chairman  Mark Abramson, 1970, Member  Corinne Denzler, 1966, Member  Adrian Dudle, 1965, Member Executive Board  Giacomo Balzarini, 1968, CEO/CFO  Reto Grunder, 1974, CIO 

37. Slide 37: Group Overview (30 September 2023)

    Group Overview (30 September 2023) Executive Board (3) Communications & IR / Sustainability (3), Legal (4), HR (2), Secretariat (1) Real Estate Investments Property Management Finance / Operations Asset Management (5) Zurich Office (19, 14*) Accounting / Controlling (11) Analysis / Reporting (1) Gen

38. Slide 38: PSP Strategy

    PSP Strategy Strategy  Switzerland only  Commercial properties only  Acquisitions to be justified by price and operational logic  Risk-conscious and sustainable financing policy Priority  Optimising profitability of existing portfolio  Ensuring long-term attractiveness of assets  Organic grow

39. Slide 39: Why Investing in PSP?

    Why Investing in PSP? Company  Pure Swiss play  Premium portfolio with limited downside risk  Properties with further optimisation potential  Acquisition/integration experience  Sustainability (economic, ecological, social)  Transparent business model  Financial flexibility to take advantage

40. Slide 40: Shareholder Base (30 September 2023)

    Shareholder Base (30 September 2023) Largest shareholder  Black Rock, Inc.: 5.86% (notification 2 Sept. 2017)  Chase Nominees Ltd.: 5.38%  Credit Suisse Funds AG: 5.20% (notification 14 Nov. 2019)  UBS Fund Management (Switzerland) AG: 5.09% (notification 10 Aug. 2017)  Number of registered sha

41. Slide 41: Development of rental income Q1-Q3 2023

    © PSP Swiss Development of rental income Q1-Q3 2023 Property I Page (CHF 1’000) 260’000 +3’766 -496 -6’838 250’000 +3’579 +912 +993 247’553 +8’816 240’000 236’822 230’000 220’000 210’000 0 Rental income Change rental Effect purchases Effect new Effect sales Effect Vacancy change Other Rental income

42. Slide 42: Ebitda

    Ebitda 300 90% 250 84.4% 84.7% 200 85% 83.9% 83.4% 83.0% 150 293.8 278.8 271.1 226.7 226.9 100 80% 50 0 75% 2020 2021 2022 Q1-Q3 2022 Q1-Q3 2023 Ebitda excl. ∆-RE in CHF m. Ebitda margin in %. © PSP Swiss Property I Page 42

43. Slide 43: Net Income Components

    Net Income Components 600 500 400 373.9 300 94.2 76.3 102.7 200 235.7 215.8 221.1 210.8 181.3 100 0 2020 2021 2022 Q1-Q3 2022 Q1-Q3 2023 -55.4 -100 Net income excl. ∆-RE in CHF m. Contribution of ∆-RE in CHF m. © PSP Swiss Property I Page 43

44. Slide 44: EPS

    EPS 14 12.97 12 10 8 7.19 6 6.37 6.19 5.14 4 4.70 4.82 4.59 3.95 3.39 2 0 2020 2021 2022 Q1-Q3 2022 Q1-Q3 2023 EPS in CHF. EPS excl. ∆-RE in CHF. © PSP Swiss Property I Page 44

45. Slide 45: NAV + Cumulative Dividend per Share

    NAV + Cumulative Dividend per Share 200 63.13 180 59.33 55.58 160 51.93 48.33 140 44.83 41.43 38.08 34.78 120 28.28 31.53 25.08 113.33 112.85 22.08 109.42 100 19.28 99.83 97.02 16.58 90.63 14.08 80 11.68 80.48 83.70 83.74 84.38 84.30 86.96 9.48 75.28 7.38 60 68.87 3.75 5.40 64.95 2.25 61.83 59.71 1.

46. Slide 46: EPRA NRV vs. Share Price

    EPRA NRV vs. Share Price 150 140 139.42 138.18 130 133.60 135.40 120 123.19 110 119.20 118.30 113.70 100 108.50 108.20 90 80 70 60 50 40 30 20 10 0 2019 2020 2021 2022 Q3 2023 EPRA NRV per share in CHF. Share price in CHF. © PSP Swiss Property I Page 46

47. Slide 47: EPRA Performance Measures

    EPRA Performance Measures Q1-Q3 2022, 31 Dec. 2022 Q1-Q3 2023, 30 September 2023 (CHF or %) EPRA PSP EPRA PSP A. EPS (earnings per share) 3.50 3.95 4.37 4.59 B. NRV (net reinstatement value) 139.36 136.62 138.18 135.45 C. NTA (net tangible assets) 136.92 n.a. 135.78 n.a. D. NDV (net disposal value)

48. Slide 48: Portfolio Key Figures

    Portfolio Key Figures Numbers of Rental Revaluation in Value Net yield Vacancy properties income CHF m in CHF m in % in % in CHF m Zurich Q1-Q3 2023 78 145.1 -12.9 5’557.8 3.3 1.5 FY 2022 77 181.9 127.7 5’404.7 3.0 2.4 Geneva Q1-Q3 2023 22 35.9 -29.0 1’475.1 2.7 4.9 FY 2022 21 42.7 9.2 1’363.1 2.7 3

49. Slide 49: Portfolio Key Figures, cont.

    Portfolio Key Figures, cont. Rent by Use Rent by Type of Tenants Other, 7% Other, 10% Services, 23% Government, 6% Parking, 4% Office, Gastronomy, 64% Health care, 6% 8% Technology, Retail, 17% 9% Retail, 15% Telecomm., 9% Gastronomy, 9% Financial services, 12% Largest Tenants Swisscom, 8% Google, 4

50. Slide 50: Sustainability

    Sustainability Our 12 material issues  Our 12 material issues are based on a materiality analysis that matched up our business priorities with an assessement of the demands of our stakeholders, the effects of our work on the environment and society, and the areas for a meaningful contribution towar

51. Slide 51: Sustainability, cont.

    Sustainability, cont. Organisation  Sustainability initiatives steered by a nine-member panel composed of representatives from property management, construction, asset management, human resources and communications, and the CIO  Implementation in the hands of most involved department for each init

52. Slide 52: Sustainability, cont.

    Sustainability, cont. Portfolio: examples of initiatives in Q1-Q3 2023  Started efforts to cross-check PSP CO2 reduction path against 1.5-degree decarbonisation path in line with Science-based Targets  Continued efforts on integration of CO2 reduction path calculation into renovation planning tool

53. Slide 53: Sustainability, cont.

    Sustainability, cont. Tenants: examples of initiatives Q1-Q3 2023  Conducted whole-day training sessions for caretakers for German and French speakers on sustainability in general and their responsibilities around the Optima topics  Made considerable improvements in recording and evaluation of ten

54. Slide 54: Sustainability, cont.

    Sustainability, cont. Employees: examples of initiatives Q1-Q3 2023  Comprehensive assessment as a preparation for renewed full equal pay analysis in 2024  Continued efforts in ergonomics: all workplaces in Zurich, Basel and Geneva assessed and optimised, communicated tips for observing ergonomic

55. Slide 55: Sustainability, cont.

    Sustainability, cont. Finance and disclosure: examples of initiatives in Q1-Q3 2023  Defined Green Asset Portfolio, prepared and published Green Bond Report  Carried out initial steps for the implementation of the Code of Conduct for Suppliers and Service Providers in the different departments  T

56. Slide 56: Portfolio Grid (30 June 2023)

    Portfolio Grid (30 June 2023) Market assessment of individual properties (by Wüest Partner) © PSP Swiss Property I Page 56

57. Slide 57: Zurich Portfolio

    Zurich Portfolio Hardturmstrasse 181, 183 / Förrlibuckstrasse 160, 190, 192 = Investment properties = Development projects Zurich Bahnhofplatz 1 / Bahnhofquai 9, 11, 15 Goethestrasse 24 © PSP Swiss Property I Page 57

58. Slide 58: Geneva Portfolio

    Geneva Portfolio Rue de la Confédération 2 Geneva Rue du Marché 40 = Investment properties = Development project Rue de la Corraterie 24/26 © PSP Swiss Property I Page 58

59. Slide 59: Basel Portfolio

    Basel Portfolio Barfüsserplatz 10 Basel Peter Merian-Strasse 88/90 = Investment properties = Development project Grosspeterstr. 44 (Grosspeter Tower) © PSP Swiss Property I Page 59

60. Slide 60: Bern Portfolio

    Bern Portfolio Laupenstrasse 18/18a Bern Kramgasse 49 = Investment properties Bärenplatz 9, 11, 27 © PSP Swiss Property I Page 60

61. Slide 61: Lausanne Portfolio

    Lausanne Portfolio Place Saint-François 5 Lausanne = Investment properties Place Saint-François 15 Avenue Agassiz 2 © PSP Swiss Property I Page 61

62. Slide 62: Contacts

    Contacts Giacomo Balzarini CEO Phone +41 (0)44 625 59 59 Mobile +41 (0)79 207 32 40 giacomo.balzarini@psp.info Vasco Cecchini CCO & Head IR Phone +41 (0)44 625 57 23 Mobile +41 (0)79 650 84 32 vasco.cecchini@psp.info © PSP Swiss Property I Page 62

63. Slide 63: 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

PSP Swiss Property — Q1-Q3 2023 Earnings Presentation on 6ix