PSP Swiss Property AG

Latest Results (23.10.2025):

PSP Swiss Property AG reported a solid performance in the first half of 2025, marked by portfolio appreciation and adherence to forecasted outcomes. The company's real estate portfolio grew in value, and despite a slight increase in vacancy rates, rental income remained stable on a like-for-like basis. PSP Swiss Property continues to pursue a cautious acquisition strategy, focusing on high-quality, centrally located properties with long-term growth potential.

Portfolio Appreciation

The value of PSP Swiss Property's real estate portfolio increased to CHF 10.0 billion by the end of June 2025, up from CHF 9.8 billion in the previous year. This appreciation of CHF 113.4 million was primarily driven by the positive development of investment properties in central Zurich. The average weighted discount rate for the portfolio decreased by 0.25% to 3.56%, reflecting adjusted inflation expectations.

Rental Income and Operating Results

Consolidated rental income slightly decreased by CHF 2.3 million to CHF 173.9 million. However, on a like-for-like basis, rental income saw a 1.2% increase, attributed largely to index adjustments. The operating result declined by CHF 6.7 million to CHF 106.9 million, while net income surged by 24.3% to CHF 194.3 million, bolstered by portfolio appreciation. Earnings per share rose to CHF 4.24 compared to CHF 3.41 in H1 2024.

Real Estate Market Stability

The Swiss commercial property leasing market remained stable in the first half of 2025, particularly for high-quality, sustainable office spaces in prime locations such as Zurich and Geneva. While demand in these areas stayed robust, it became more selective and price-sensitive. Bern and Lausanne showed steady growth, whereas Basel experienced an oversupply of rental space. The investment market saw increased activity in the second quarter, supported by lower interest rates and better financing conditions.

Capital Structure and Financial Position

As of June 2025, PSP Swiss Property maintained a strong capital structure with equity totaling CHF 5.427 billion and an equity ratio of 53.6%. Interest-bearing debt stood at CHF 3.540 billion, representing 35.0% of the balance sheet. The company reported a low average cost of debt at 1.04% and had committed credit lines amounting to CHF 815 million. PSP Swiss Property holds a stable A3 long-term issuer rating from Moody’s.

Sustainability Initiatives

The company reinforced its commitment to sustainability by updating its Green Bond Framework, focusing on environmentally friendly real estate projects related to energy efficiency, renewable energies, and certified buildings. The 2024 Green Bond Report was also published, detailing the use of funds and the environmental impact of investments, underscoring PSP Swiss Property’s dedication to sustainable growth.

Outlook for 2025

PSP Swiss Property anticipates continued positive developments in the Swiss real estate market for the remainder of 2025. The company expects stable rental demand to persist and a modest recovery in the transaction market, provided interest rates remain favorable. The availability of first-class properties aligned with the company's strategic goals is likely to stay limited, supporting PSP Swiss Property’s focus on selective acquisitions with long-term growth potential.