Real Estate PSP Swiss Property increases net profit and confirms forecast

The real estate group PSP Swiss Property increased its income in the first half of 2024 and generated a significantly higher net profit. This was due to portfolio revaluations, among other things. The Group confirms its previous EBITDA forecast for the year as a whole.

PSP's real estate income rose by 7.9 percent to CHF 176.2 million in the first half of the year, as the real estate company announced on Tuesday. Operating profit (EBITDA excluding gains/losses on real estate investments) amounted to CHF 152.3 million - an increase of 1.2 percent compared to the same period last year.

Net profit excluding gains/losses on real estate investments amounted to CHF 113.6 million, down 24.5 percent on the previous year. The previous year's result was influenced by the reversal of deferred taxes. At the bottom line, net profit climbed by 103.2 percent from CHF 44.7 million to CHF 156.3 million, thanks in part to portfolio revaluations.

The second-largest listed Swiss real estate group thus exceeded analysts' net profit expectations.

Annual forecast confirmed

PSP confirms its previous forecast for the further course of business. Accordingly, EBITDA excluding gains/losses on real estate investments is expected to reach CHF 300 million. As announced in February, PSP expects the vacancy rate to remain below 4 percent.

At the end of June, PSP's average vacancy rate was 4.0 percent, compared with 3.6 percent at the end of 2023.