PSP maintains expectations for 2025
After three quarters, the company is still forecasting a slight decline in EBITDA. The vacancy forecast of 3.5% also remains unchanged, although the figure is currently slightly higher.
PSP Swiss Property reports a decrease in rental income of 0.2% to CHF 261.4 million for the third quarter. On a comparable basis, this resulted in an increase of 1.6 %, of which 1.0 percentage points were attributable to index adjustments. The only transaction of the quarter, the sale of Gurtenbrauerei 10-92 in Wabern near Bern, resulted in income from other property sales of CHF 7.7 million. Compared with the same period of the previous year, income from the sale of investment properties fell by CHF 3.6 million and income from the sale of development properties by CHF 1.0 million. Operating expenses, on the other hand, fell by CHF 1.5 million to CHF 7.2 million, mainly due to lower property taxes on a Geneva property following the recognition of an energy certificate. By contrast, personnel expenses rose by CHF 0.5 million and operating and administrative expenses by CHF 0.3 million. Net financing costs also increased - by CHF 1.2 million - but remained low with an average cost of debt of 0.98 %. PSP CEO Giacomo Balzarini expects spreads to remain the same or fall. «That's my feeling when I look at the banks» latest issues," he said at the analysts' conference.
At CHF 166.2 million, profit excluding gains/losses on real estate investments was CHF 2.4 % below the previous year's figure. Net profit increased by CHF 14.8 % year-on-year to CHF 259.5 million. This was primarily due to the CHF 52.0 million higher portfolio revaluation of CHF 113.4 million.
Continued reluctance to buy
PSP expects yields in the best locations to continue to fall and the transaction market to strengthen further, but considers the supply for its own requirement profile - prime assets with value creation potential - to be low. «Against this backdrop, we continue to act with caution as a buyer,» the company writes. EBITDA excluding gains/losses on real estate investments of around CHF 300 million is still expected for 2025 as a whole (2024: CHF 304.9 million). The forecast is currently «closer to CHF 300 million and therefore a little better than originally expected», Balzarini explained at the analyst conference. The management is still forecasting a vacancy rate of 3.5% by the end of the year, although it is currently slightly higher. Due to rental agreements concluded in Zurich's Füsslistrasse, it is already certain that it will fall again by the end of the year. (aw)
