PSP Swiss Property: Profit increase in the first half-year

PSP Swiss Property considers itself well positioned even in the ongoing Corona crisis. According to the real estate company, the effects of the pandemic had only a marginal impact on the half-year results.

Net profit rose year-on-year from CHF 121.8 million to CHF 371.4 million, an increase of CHF 249.6 million. This was mainly due to a significant portfolio revaluation of CHF 325.0 million (H1 2020: 31.1 million), PSP said. The appreciation reportedly resulted mainly from the lower discount rate (nominal 3.1%, end-2020: 3.2%) as well as from completed new buildings and refurbishments and various lettings. On the other hand, more cautious earnings forecasts in connection with Covid-19 would have had an individual value-reducing effect.

From January to June 2021, the real estate company generated a profit excluding gains/losses on real estate investments of CHF 112.6 million, an increase of CHF 14.3 million or 14.6% compared to the same period last year. According to PSP, the increase was mainly due to higher rental income (+6.6 million) and higher gains from the sale of development projects and condominiums (+14.0 million). In the first half of this year, PSP granted Corona-related rent waivers of CHF 3.5 million (H1 2020: 2.3 million). The vacancy rate stood at 3.1% at the end of June 2021 (end of 2020: 3.0%), of which 0.5 percentage points were due to refurbishment work, the real estate company said.

For the full year 2021, PSP Swiss Property confirms its Ebitda forecast: The company continues to expect Ebitda excluding gains/losses on real estate investments of around CHF 275 million (2020: 271.1 million). In terms of vacancies, PSP now expects a ratio of below 4.5% at the end of 2021 (previously: around 4.5%). However, the forecasts are based on the assumption of a continued gradual easing of the measures ordered by the authorities and a corresponding normalisation of the economic environment by the end of 2021, the company stresses. (ah)