Half Year 2025 PSP Swiss Property AG Earnings Call Transcript
Key Points
- PSP Swiss Property AG (PSPSF) reported solid operating results despite a slight decline compared to the previous year due to one-off effects.
- The company achieved a valuation gain of over CHF100 million, primarily driven by the Zurich CBD portfolio.
- PSP Swiss Property AG (PSPSF) operates with a strong EBITDA margin of above 85%, reflecting effective cost discipline.
- The company successfully launched the first Swiss franc floating rate note, securing favorable margin conditions and maintaining an average cost of debt around 1%.
- The company is on track with various development sites and received permission for a new rezoning code in Wallisellen, indicating positive strategic progress.
- The company's operating results were slightly lower compared to the previous year due to specific one-off effects.
- There were no acquisitions or disposals in the reporting period, indicating a lack of portfolio expansion.
- The demand in central locations is becoming more selective and price-sensitive, which could impact future rental agreements.
- The vacancy rate stands at 4%, with a target to reduce it to 3.5% by year-end, indicating current challenges in occupancy.
- The company missed expectations on adjusted net profit due to a CHF6.3 million impact from changes in tax rates.
(technical difficulty) Giacomo Balzarini, CEO of PSP Swiss Property. Please go ahead, sir.
Thank you, Mathilde. Good morning, everybody, and thanks for dialing in. As usual, with the half year results, the quarter results, I will do a rather quick introduction then go directly into the Q&A.
As we report this morning, we are satisfied with very solid operating results. You have seen it, it's a bit lower in the previous year's comparison. But as mentioned, this is due to two specific one-off effects we had in the first half of '24. We have seen a valuation gain of above CHF100 million, which is predominantly driven by the Zurich CBD portfolio. And thanks to the continuous cost discipline, we operate at EBITDA margin of above 85%.
We are on track with the various development sites. Also here and there, might take a bit longer, but we can go through that in the Q&A. But generally, we are pretty satisfied with the
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