Epic Suisse: Rental income rises, but devaluations depress profits
Due to revaluation effects, profit fell drastically compared to the previous year.
Epic Suisse AG recorded write-downs on its real estate portfolio and hedging instruments in the 2023 financial year. In operational terms, however, the real estate company made gains: Rental income increased by 6.3% to CHF 65.3 million (previous year: 61.5 million), which according to the company is mainly due to indexation, a decrease in rent-free periods and a reduction in the vacancy rate to 4.6% (previous year: 5.8%).
The value of the real estate portfolio increased by 2.2% to CHF 1.54 billion (previous year: CHF 1.5 billion), with an unrealized net revaluation loss of CHF 9.7 million. The WAULT remained stable at 8.1 years as at December 31, 2023 (8.2 years as at December 31, 2022). Epic invested CHF 43.4 million in the reporting year, most of which (CHF 37.4 million) went towards development projects such as the Pulse project in Cheseaux-sur-Lausanne.
EBITDA including property revaluation fell from CHF 44.0 million to CHF 42.7 million. Excluding the revaluation loss and IPO costs of CHF 5.9 million, adjusted EBITDA improved by CHF 7.0% to CHF 52.4 million (previous year: CHF 48.9 million).
The financial result for 2023 showed a net expense of CHF 22.7 million, compared to net income of CHF 20.8 million in the previous year. The decrease was mainly due to the revaluation of hedging instruments, which led to an unrealized net loss of CHF 20.3 million, Epic explains.
Profit (including revaluation effects) fell from CHF 56.4 million in the previous year to CHF 17.6 million. Adjusted for revaluation effects and IPO costs, the adjusted profit amounted to CHF 40.9 million. This is CHF 6.3% more than in the previous year (CHF 38.4 million). (ah)
