PSP: Quarterly profit of almost 47 million

PSP Swiss Property cites a CHF 1.2 million increase in real estate income and the CHF 8.7 million profit from the sale of 38 condominiums in the "Salmenpark" project in Rheinfelden as the main reasons for the increase.

There were no revaluations and no sales of investment properties in the reporting period, meaning that profit is not influenced by valuation effects. Earnings per share amounted to CHF 1.02 (Q1 2015: CHF 0.83). The equity ratio was 57.3% (end of 2015: 57%). Shareholders' equity per share (NAV) amounted to CHF 85.30 at the end of March (end of 2015: CHF 84.38).

Forecast for 2016: EBITDA of 240 million

For the full 2016 financial year, PSP expects EBITDA (excluding valuation effects) to be around CHF 240 million higher than in the previous year. Compared to 2015 (CHF 232.7 million), higher income from the sale of condominiums in particular is forecast.

As at the end of March 2016, PSP's real estate portfolio comprised 164 office and commercial properties as well as five development sites and three individual projects. The balance sheet value of the entire portfolio amounted to CHF 6.759 billion (end of 2015: CHF 6.724 billion).

Vacancy rate at 8.7 percent

The vacancy rate at the end of March 2016 was 8.7% (end of 2015: 8.5%). According to PSP, 0.6 percentage points of this was due to ongoing renovation work on various properties. The properties in Zurich-West and Wallisellen with an investment value of CHF 0.7 billion contributed a total of 2.8 percentage points to the vacancy rate. The remaining properties with an investment value of CHF 5.6 billion - i.e. the entire portfolio excluding the properties under renovation and those in Zurich West and Wallisellen - accounted for 5.3 percentage points.

PSP expects a vacancy rate of around eleven percent at the end of 2016, mainly due to maturities towards the end of the year.

Progress at "Salmenpark" and "Paradiso"

Meanwhile, the completion and handover of the apartments at "Salmenpark" in Rheinfelden is progressing according to plan, as reported by PSP. During the reporting period, 38 of the total of 113 condominiums were transferred to the buyers. The "Salmen-Center" (retail space as well as a retirement and nursing home) was completed and reclassified to the investment portfolio at the end of March 2016. The first construction phase with an investment sum of around CHF 180 million will continue until the end of 2016. The building application for the second stage, with an investment sum of around CHF 70 million, was submitted at the end of 2015. The plan here is for purely residential use with 100 units and an associated parking garage.

Building permission was granted for the "Paradiso" site in Lugano in April 2016. PSP is building condominiums (11,200 sqm) as well as office (1,400 sqm) and retail space (750 sqm) on the site, which is located near the lake. The planned investment amounts to around CHF 65 million. PSP intends to sell all units after completion. (ah)