PSP posts strong operating result
PSP Swiss Property increased its net income by 3.3 percent to CHF 178.3 million in the 2017 business year. The Board of Directors proposes an increased ordinary dividend payment of CHF 3.40 per share for the 2017 business year.
PSP Swiss Property continues to perform well in a difficult market environment. In the 2017 financial year, Switzerland's second largest real estate company increased net income (excluding valuation effects) to CHF 178.3 million (+3.3%). According to PSS, the increase resulted primarily from the sale of the "Salmenpark II" residential project in Rheinfelden.
Rental income decreased by CHF 3.9 million. Net income (including valuation effects) reached CHF 257.4 million (2016:134.9 million). This marked increase compared to the previous year resulted mainly from the revaluation by CHF 83.3 million in the context of the regular periodic revaluation of the properties (2016: devaluation by CHF 50.2 million). The vacancy rate was reduced to 8.2% at the end of 2017 (end of 2016: 9.3%).
With shareholders' equity of CHF 3.989 billion (end of 2016: CHF 3.867 billion) - corresponding to an equity ratio of 54.0 percent (end of 2016: 54.9%) - the equity base remains strong.
The balance sheet value of the entire portfolio amounted to CHF 7.046 billion at the end of 2017 (end of 2016: 6.894 billion). In addition, as of February 1, 2018 (transfer of ownership), a first-class, fully leased real estate portfolio (5 properties in Geneva, 2 in Lugano, 1 property each in Lausanne and Fribourg) worth CHF 190 million was added (this acquisition was already published on December 8, 2017). The annual rental income amounts to CHF 7.1 million with an average remaining lease term of around eight years.
The Board of Directors proposes an increased ordinary dividend payment of CHF 3.40 per share for the 2017 financial year (previous year: 3.35). In relation to net income (excluding valuation effects), this amount corresponds to a payout ratio of 87.5 percent; in relation to the 2017 year-end share price of CHF 92.35, this results in a yield of 3.7 or 3.8% at the current share price. For the financial year 2018, Ebitda (excluding valuation effects) is expected to exceed CHF 235 million (2017: CHF 242.8 million). PSP Swiss Property's focus remains on the renovation and modernization of selected properties, the further development of its sites and projects as well as its rental activities. (bw)
