PSP confirms guidance for 2025
The company is keeping a low profile on the transaction market and continues to assume that the operating result excluding gains on real estate investments will fall slightly to CHF 300 million for the year as a whole.
PSP Swiss Property Ltd did not buy or sell any properties in the first half of the year. The vacancy rate increased from 3.2 to 4.0% since the beginning of the year. A revaluation of the properties resulted in an appreciation of CHF 113.4 million, of which CHF 1.7 million was attributable to the development properties. "The revaluation resulted mainly from the positive development of investment properties in central locations in Zurich," writes the real estate company. The average weighted discount rate for the entire portfolio fell by 0.25% in nominal terms to 3.56% as at mid-2025 due to an adjustment of the inflation expectation by the valuer and remained unchanged in real terms at 2.54 %.
PSP had already announced that real estate income would fall. In the reporting period, it fell by CHF 1.3% to CHF 173.9 million. The previous year's result included two special effects totaling CHF 2.6 million. On a like-for-like basis, however, property income rose by 1.2%, with index adjustments accounting for 1.0TP3T. As no properties were sold, income from the sale of investment properties fell by CHF 11.3 million and income from the sale of development properties by CHF 0.6 million.
The operating result excluding gains/losses on real estate investments fell by 5.9% to CHF 106.9 million compared to the same period of the previous year. By contrast, net profit rose from CHF 156.3 million to CHF 194.3 million, which is primarily due to the fact that the revaluations in the prior-year period (CHF 44.7 million) were significantly lower.
Forecast confirmed
PSP assumes that the supply of first-class properties that fit its long-term strategy will remain scarce. This suggests that the company will remain cautious on the transaction market. At the analysts' conference, CEO Giacomo Balzarini pointed out the cyclical nature of the real estate business in this context and emphasized that when making acquisitions, consideration should be given to how to get through the cycle. He also said that no major sales were planned - at most, smaller portfolio adjustments. "We feel pretty comfortable with the portfolio we have," said the CEO.
The forecast for the 2025 financial year remains unchanged: EBITDA excluding gains/losses on real estate investments is expected to fall slightly from around CHF 304.9 million to CHF 300 million. The ratio is expected to remain unchanged at 3.5% at the end of the year. (aw)
