PSP Swiss Property plans higher dividend
PSP Swiss Property closed the 2015 business year with a net profit of CHF 161.3 (2014: 169.3) million. The Board of Directors proposes a dividend payout of CHF 3.30 (previous year: 3.25) per share for the upcoming Annual General Meeting on March 31, 2016.
At the end of 2015, PSP Swiss Property's real estate portfolio comprised a total of 163 office and commercial buildings and various development projects. The balance sheet value of the entire portfolio amounted to CHF 6.724 billion (end of 2014: CHF 6.608 billion). In the year under review, the listed real estate company acquired the property at Heinrich-Stutz-Strasse 23/25 in Urdorf and sold the property at Altstetterstrasse 124/Herrligstrasse 21 in Zurich-Altstetten. Following the sale of 101 condominiums in 2014, only 17 were sold last year.
Vacancy rate reduced to 8.5 percent
The vacancy rate in the PSP portfolio was 8.5 percent at the end of the year (end of 2014: 10.0%). Of the 8.5 percent, 0.5 percentage points were due to ongoing renovation work on various properties. The properties in Zurich West and Wallisellen with an asset value of 600 million contributed a total of 2.9 percentage points to the vacancy rate. The remaining properties with an asset value of 5.5 billion accounted for 5.1 percentage points.
The current construction work on the "Salmenpark" in Rheinfelden (investment sum: approx. 250 million) and the new "Grosspeter Tower" in Basel (approx. 110 million) is progressing according to plan. Comprehensive refurbishment of the property at Hardturmstrasse 161/Förrlibuckstrasse 150 in Zurich West has begun (approx. 50 million). Meanwhile, the overall renovation of various properties at Bahnhofquai/Bahnhofplatz in Zurich is still "subject to clarifications of technical aspects with the municipal monument preservation authorities", writes PSP Swiss Property.
New construction projects in Lugano and Zurich West
Construction approval for the "Paradiso" site in Lugano is expected in summer 2016. The project provides for condominiums as well as office and retail space. The planned investment sum is around 65 million. Planning for the replacement of the two properties at Förrlibuckstrasse 178/180 and Hardturmstrasse 181/183/185 in Zurich West is also progressing, it says. The new building is to meet today's requirements in terms of flexible design of office floor plans and sustainability. The building application for this project (approx. 120 million) will be submitted in fall 2016 and the replacement building is expected to be realized between 2017 and 2020.
At the end of 2015, PSP Swiss Property reported equity of 3.870 (end of 2014: 3.841) billion. This corresponds to an equity ratio of 57.0 percent. Interest-bearing debt amounted to 1.969 billion or 29.0 percent of total assets. Unused committed credit lines currently amount to 650 million. No major committed bank loans are due until 2019, PSP Swiss Property reports. To refinance financial liabilities, a 0.5 percent bond with a maturity from 2016 to 2024 and a volume of 225 million was issued on February 16, 2016. (mr)
