PSP increases its rental income over nine months

Zurich (awp) – The Zug-based real estate company PSP Swiss Property increased its rental income over the first nine months of 2024. Although real estate sales slowed significantly, the company benefited from significant revaluation effects on its real estate portfolio. The anticipated vacancy rate has been reduced slightly.

Rental income increased between January and September by 5.8% over one year to 261.98 million Swiss francs, benefiting in particular from a drop in the rate of empty housing to 3.6% at the end of the period under revised, against 4.0% at the end of June, PSP detailed Tuesday in its financial report.

Real estate sales fell to 1.0 million Swiss francs, compared to 13.9 million a year earlier. The company, specializing in commercial spaces, on the other hand benefited from a significant positive effect of revaluations of 61.4 million, after a negative effect of 67.2 million over the first nine months of 2023. In total, the value of its real estate portfolio improved by 100 million Swiss francs to 9.7 billion at the end of September.

In this sector, “demand for rental space remained stable, particularly in the centers of Zurich and Geneva”, underlined PSP in a press release. The transaction market, however, has changed little.

On the profitability side, the gross operating profit (Ebitda) excluding the effects of revaluations improved by 0.9% to 228.96 million, while the net profit – also excluding this effect – fell by 19.2% to 170.3 million.

Rental income and Ebitda are almost in line with the forecasts of analysts surveyed by the AWP agency.

Confident in solid demand for offices and commercial space, management has confirmed that it is targeting an increase in rental income for the whole of 2024, thanks in particular to recent acquisitions. Ebitda excluding the results of buildings is well anticipated at 300 million Swiss francs, an almost stable amount compared to the 297.7 million earned in 2023. The vacancy rate should now be at 3.5%, compared to “under 4% ” in previous estimates.

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