PSP Swiss Property increases operating profit
In the past financial year, PSP Swiss Property improved its profit before valuation result by 6.6% to CHF 235.7 million. However, due to lower revaluations, net income decreased significantly.
It is true that the portfolio also appreciated in 2022, namely by CHF 124.9 million. However, this value remained significantly below that of 2021 (464.9 million) which caused PSP's net profit to drop by a whole 44.5%, to CHF 330.0 million. A lower discount rate still played a role in the recent revaluations, but some new leases also had a positive impact.
The balance sheet value of the portfolio increased from CHF 9.13 billion to CHF 9.42 billion over the course of the year. The vacancy rate decreased from 3.8 to 3.0%. Of the leases expiring in 2023 (CHF 43.0m), a total of 55% had been renewed at the end of 2022.
Rental income increased by CHF 6.6 million in the past financial year. There were virtually no more Corona-related rental discounts. Higher profits from the sale of development projects and condominiums (+ 5.1 million CHF), more own work capitalized (1.3 million CHF) and increased other income (1.4 million CHF) also had a positive impact on the result.
Dividend to be increased
The Board of Directors proposes an increased ordinary dividend payment of CHF 3.80 per share for the financial year 2022. In relation to earnings excluding gains/losses on real estate investments, this corresponds to a payout ratio of 73.9%; in relation to the year-end share price 2022, this results in a yield of 3.5%.
Lower Ebitda expected for 2023
Despite rent losses due to major renovation projects, PSP expects slightly higher real estate income in the current year. "In the current projects, we will only be moderately affected by the rise in construction costs," says the management. This is also due to the small project pipeline compared to the size of the portfolio.
However, income from the sale of development projects and condominiums will decline, while financing costs will increase. For the 2023 financial year, Ebitda excluding gains/losses on real estate investments is expected to reach CHF 285 million (2022: CHF 293.8 million). The vacancy rate is expected to be "below 4%". (aw)
