PSP with slight decline in profits
In the first nine months, PSP Swiss Property generated a net profit excluding valuation effects of CHF 122.6 million. In the same period of the previous year, the figure was CHF 129.5 million. According to PSP, the reasons for the decline were a CHF 0.8 million decrease in real estate income due to renovation and a CHF 4.6 million decrease in income from the sale of condominiums.
Net profit including valuation differences reached CHF 132.4 million in the reporting period (previous year: 138.9 million). The equity ratio is 56.6 percent (end of 2014: 57.5%).
For the full year 2015, PSP expects a lower Ebitda excluding valuation effects of CHF 230 million compared to the previous year. Compared to 2014 (CHF 238.2 million), in particular less income from the sale of condominiums is forecast.
As of the end of September 2015, PSP's real estate portfolio comprised 161 office and commercial buildings as well as five development sites and four individual projects. The balance sheet value of the entire portfolio was CHF 6.66 billion, compared to CHF 6.60 billion at the end of 2014.
Renovations and new buildings in Zurich and Rheinfelden
PSP's current construction projects include "Hardturmstrasse 161/Förrlibuckstrasse 150" in Zurich. The office property will be comprehensively renovated by 2017 at a cost of around CHF 50 million.
The planning of the second stage of the currently largest project, the "Salmenpark" in Rheinfelden (total investment of around 250 million), has begun. Here, a purely residential use with 100 units is planned. The building application is scheduled for the end of 2015.
Furthermore, the two office properties at Förrlibuckstrasse 178/180 and Hardturmstrasse 181, 183, 185 in Zurich West are to be demolished and replaced by a new building. The building application for this "Orion" project is to be submitted in fall 2016; the replacement building is expected to be realized between 2017 and 2020. PSP expects investments of around CHF 120 million.
Vacancy rate falls to nine percent
The vacancy rate was nine percent at the end of September 2015, compared with ten percent at the end of 2014. 1.6 percentage points were due to ongoing renovation work on various properties, PSP said. The properties in Zurich West and Wallisellen, with an asset value of CHF 0.6 billion, contributed a total of two percentage points to the vacancy rate. The remaining properties - i.e. the overall portfolio excluding properties under renovation and those in Zurich West and Wallisellen - accounted for 5.4 percentage points. (ah)
