PSP Swiss Property raises Ebitda forecast
As expected, PSP Swiss Property achieved a lower operating result excluding valuation effects in the first half of 2015. Compared to the same period last year, it decreased by ten percent from CHF 87.4 million to CHF 78.7 million. However, the balance sheet value of the entire real estate portfolio increased by CHF 13.1 million to CHF 6.679 billion at the end of June thanks to the revaluation of properties.
CEO Luciano Gabriel said at the presentation of the business figures that the Ebitda forecast for the full year 2015 had been raised from the original 225 million Swiss francs to 230 million Swiss francs. Compared to 2014, when an Ebitda of 238.2 million was achieved, this means a smaller loss than expected in May. Weaker income from the sale of condominiums continued to have a negative impact, Gabriel said.
In the first half of the year, PSP Swiss Property neither bought nor sold investment properties. Meanwhile, the Löwenstrasse 16 project in Zurich was successfully completed. The new building offers mixed use with office and retail space as well as an apartment. In Zurich, the latest construction project Hardturmstrasse 161 / Förrlibuckstrasse 150 was also started. This property will be comprehensively refurbished and brought up to the latest state of the art by mid-2017 with an investment of around CHF 38 million.
For the Bahnhofquai / Bahnhofplatz project, meanwhile, "fundamental discussions are underway in Zurich with the city's monument preservation department," Gabriel explained. The resulting delay in the renovation work is difficult to estimate. He assumes a delay of several months. On the other hand, promising negotiations are underway with potential tenants for the office space planned in the large Grosspeter Tower project in Basel.
According to Gabriel, the vacancy rate in PSP Swiss Property's portfolio properties was 8.9 percent at the end of June 2015 (end of 2014: 10.0 percent). Of this, 1.4 percentage points were due to ongoing renovation work at various properties. The properties in Zurich West and Wallisellen contributed a total of 2.3 percentage points to the vacancy rate. Gabriel now expects the vacancy rate at the end of 2015 to be below 10 percent. (mr)
