PSP Swiss Property: Revaluations increase net profit

According to the company, the decline in net profit excluding valuation effects had been expected and was primarily the result of lower income from the sale of condominiums compared to the same period of the previous year. This key figure fell by 8.7 million to 1.9 million. In addition, income from real estate decreased by two million. Earnings per share (excluding valuation effects) therefore amounted to CHF 1.75 in the first six months of this year after CHF 1.94 in the first half of 2016.

Equity at a good 3.8 billion

By contrast, net profit including valuation effects amounted to 94.5 million, a good 45% higher than in the first half of the previous year. This higher net profit was mainly due to the revaluation of 17.7 million as part of the revaluation of the properties. Earnings per share (including valuation effects) thus amounted to CHF 2.06 (1.42). Of the portfolio revaluation, CHF 14.5 million was attributable to the investment portfolio and CHF 3.2 million to project developments.

The real estate company's equity amounted to CHF 3.818 billion at the end of June 2017, which corresponds to an equity ratio of 53.8%. As at the end of June 2017, equity per share (NAV) therefore amounted to CHF 83.23. Interest-bearing liabilities amounted to CHF 2.388 billion or 33.6% of the balance sheet total. According to Immobilien-AG, no major committed bank loans will fall due until 2019. Unutilized committed credit lines of CHF 710 million are currently available.

Vacancy rate declines

As at the end of June 2017, PSP Swiss Property's real estate portfolio comprised 160 office and commercial properties as well as four development sites and six individual projects. The balance sheet value of the entire portfolio amounted to CHF 6.947 billion. The vacancy rate amounted to 8.7 percent (end of June 2016: 9.3 percent). Of this figure, 0.6 percentage points were attributable to ongoing refurbishment work.