PSP Swiss Property (PSPN) Q1 2025 earnings summary

Executive summary

• Q1 2025 results reflect a solid business performance, with a 2.5% year-over-year decrease in rental income to CHF 86.9m and a 25.2% drop in net income to CHF 60.6m, mainly due to lower revaluation gains and higher expenses; the operating result aligns with expectations and the quality-oriented strategy remains unchanged.

• No acquisitions or disposals occurred; portfolio value increased 0.3% since December 2024 to CHF 9.9bn, with five properties reclassified as development properties and several major renovations underway in Bern, Lausanne, Basel, Geneva, and Zurich.

• Vacancy rate rose to 3.5% from 3.2% at end-2024, with 17% of 2025 lease maturities still open; prime locations in Zurich and Geneva continue to show strong letting sentiment, while peripheral areas and Basel face oversupply.

• Dividend of CHF 3.90 per share for 2024 was paid in April 2025, totaling CHF 178.9m.

Financial highlights

• Rental income decreased by 2.5% year-over-year to CHF 86.9m, mainly due to the absence of prior year one-off items; like-for-like rental growth was 1.7%.

• Net income fell 25.2% year-over-year to CHF 60.6m, primarily due to lower portfolio revaluation gains (CHF 13.7m vs. CHF 31.2m in Q1 2024).

• EBITDA excluding revaluations declined 2.7% to CHF 74.6m; EBITDA margin remained strong at 85%.

• Net asset value per share rose 1.2% to CHF 119.35; EPRA NRV per share increased 1.1% to CHF 144.01.

• Extraordinary revaluation gain of CHF 13.7m recognized for Zurich, Waisenhausstrasse 2, 4 / Bahnhofquai 7, following an external valuation.

Outlook and guidance

• 2025 EBITDA (excluding fair value changes) is guided at approximately CHF 300m, in line with 2024; year-end 2025 vacancy rate expected to remain at 3.5%.

• Management expects continued robust rental demand in prime Swiss markets, with a selective acquisition strategy and a shareholder-friendly dividend policy.

• Transaction market activity is expected to pick up slightly, but supply of high-quality assets remains limited.