PSP Swiss Property doubles profit
PSP Swiss Property achieved a net profit of CHF 595 million in the 2021 financial year, more than twice as much as in the previous year. The main reason for the plus are valuation gains.
In the past financial year 2021, PSP Swiss Property generated net income excluding gains/losses on real estate investments of 221.1 million, an increase of 5.3 million or 2.5% compared to the previous year (2020: 215.8 million). The increase was mainly due to higher rental income (+13.4 million) and higher profits from the sale of development projects and condominiums (+3.9 million), the real estate company says. In connection with the Corona pandemic, rent reductions of 3.7 million were granted (2020: 4.6 million).
Net profit climbed from 292.1 million to 595.0 million. PSP explains the increase of 302.9 million compared to the same period of the previous year mainly by a portfolio appreciation of 464.9 million (2020: 101.6 million). According to the real estate company, the main reasons for the appreciation were the reduction of discount rates and successful lettings.
The portfolio value increases strongly
The balance sheet value of the portfolio was 9.127 billion, compared with 8.577 billion in the previous year. No acquisitions of investment properties, sites or projects were made.
In the past financial year, PSP completed several projects and reclassified them into the investment portfolio, including the new Atmos building in Zurich West and the extensively renovated properties at Bahnhofquai/Bahnhofplatz in Zurich. Four investment properties in Bern, Zurich, Basel and Wallisellen have been reclassified as development projects.
Vacancy in the portfolio stood at 3.8% at the end of 2021 (end-2020: 3.0%). Of this, 0.5 percentage points were due to ongoing refurbishment work, PSP said. Of the leases expiring this year (54.8M), 72% had already been renewed at the end of 2021. The Wault (weighted average unexpired lease term) of the overall portfolio was 4.0 years. The wault of the ten largest tenants, which contribute around 30% of rental income, was 3.6 years.
Asset swap with Swiss Life
With effect from 17 February 2022, PSP Swiss Property has carried out an asset swap with Swiss Life and the Swiss Life Investment Foundation: PSP acquired two commercial properties in Zurich for a total of 67.6 million. In return, the real estate company sold three properties (Rue du Pont 22 in Lausanne as well as Lintheschergasse 23 and Löwenstrasse 16 in Zurich) for a total of 59.8 million. The difference had been settled in cash.
As PSP Swiss Property further announces, the dividend is to increase to CHF 3.75 per share (previous year: CHF 3.65). For the current financial year, the real estate group raises its forecast and expects an Ebitda excluding gains/losses on real estate investments of 285 million (2021: 278.8 million). The vacancy rate is expected to be below 4% at the end of 2022 (end of 2021: 3.8%). (ah)
