PSP Swiss Property: First quarter profit decline
PSP Swiss Property reported net income of CHF 40.3 million in the first quarter of 2017, down from CHF 46.9 million in the same period last year. The decline had been expected and resulted mainly from lower income from the sale of condominiums, the company says.
The income generated by PSP Swiss Property Ltd in the first quarter of this year decreased by CHF 7.2 million to CHF 1.5 million compared to the same period last year (Q1 2016: 8.7 million). Rental income also decreased by one million.
The operating result of the first quarter is in line with expectations, PSP Swiss Property reports. For the full 2017 financial year, the real estate company expects a lower Ebitda (excluding valuation effects) of around 225 million (2016: 241.6 million) compared to the previous year. The reasons are that less income from the sale of condominiums and slightly declining real estate income are forecast.
In terms of vacancy rates at the end of 2017, however, PSP expects an improved rate of around nine percent - the previous forecast was ten percent. At the end of March, the vacancy rate was 9.1 percent, of which 0.7 percentage points were attributable to ongoing refurbishment work.
At the end of March 2017, the real estate portfolio comprised 161 office and commercial buildings as well as four development sites and six individual projects. The balance sheet value of the entire portfolio was 6.9 billion.
