PSP Swiss Property expects higher profit
PSP Swiss Property has significantly increased net income in the first three quarters and is raising its Ebitda and vacancy rate forecasts for the 2019 financial year.
For the first nine months of the financial year, PSP Swiss Property reported a net profit of CHF 311.5 million, an increase of CHF 91.2 million or 41.4% compared to the same period last year (220.3 million).
The company cites the reversal of deferred taxes, which had a positive effect of 22.1 million, and the portfolio appreciation of 124.7 million as the main reasons for the increase. In addition, there was a gain of 15.0 million from the sale of two investment properties.
Net income excluding gains/losses on real estate investments amounted to 167.4 million in the first three quarters, compared to 134.8 million in the same period last year. In operational terms, higher rental income (+8.1 million), lower operating expenses (-1.1 million) and lower financing costs (-2.1 million) contributed to the improved results, PSP Swiss Property reports.
Portfolio value rises to 7.9 billion
The balance sheet value of the entire portfolio increased to 7.9 billion at the end of September 2019, up from 7.4 billion at the end of 2018. At the beginning of the year, PSP Swiss Property acquired several properties in Bern's city center and in Bern-Liebefeld. One property in Zurich-Altstetten and one in Fribourg were sold. Furthermore, the real estate company completed two development projects in Lausanne and Zurich-West and reclassified the two properties to the investment portfolio.
After the balance sheet date, as of October 1, the Rue de Berne development project in Geneva was sold for 21.5 million with a profit of 2.8 million.
For fiscal 2019, the real estate company now expects Ebitda excluding gains/losses on real estate investments of 255 million. Previously, the forecast was "above 250 million". The vacancy rate is expected to be below 4%; previously, PSP Swiss Property assumed a vacancy rate of 4%. (ah)
