Real estate market
In the rental market, the demand for qualitatively good office and sales areas on central locations in Zurich and Geneva 2024 remained unbroken. In Bern, demand is stable, while in Basel there is still an oversupply of rental areas.
The transaction market for attractive objects in good inner -city locations has increased further in the reporting year. After the interest rate of the Swiss National Bank and the increased liquidity in the market, very deep yields could be observed again in Q4 2024 for first -class objects on good layers, with a few transactions.
Real estate portfolio
The balance sheet value of the real estate portfolio was CHF 9.8 billion (in late 2023: CHF 9.6 billion) and the vacancy rate was 3.2% (in late 2023: 3.6%). The portfolio comprised 154 investment properties and seven developmental properties.
As of June 28, 2024, a business property was bought for CHF 58.0 million in the Geneva “Quartier des Banques”. As part of the ongoing portfolio optimization, seven investment properties were sold in the reporting period in various cities for a total of CHF 113.4 million. The sales proceeds exceeded their last reviews by CHF 14.1 million (14.3%).
The renovation work at the Füsslistrasse 6 and Theaterstrasse 12, both in Zurich, and at Hochstrasse 16 / Pfeffingerstrasse 5 in Basel were successfully completed. The majority of the areas are rented.
The properties of Bollwerk 15 in Bern and four properties at Richtistrasse 5 to 11 in Valaisellen were completed as developmental properties.
Project “Bollwerk”, Bern: The property is located directly opposite the main train station, at the gateway to the old town of Bern. The building is extensively renovated and modernized. The renovation is completed in Q3 2025. The investment amount is around CHF 11 million.
Project “Richtipark”, Valaisellen: As part of the revision of the municipal building and zone regulations of the city of Valaisellen, a conversion of the properties on the Richtistrasse is emerging, whereby the residential share is to be increased. The municipal assembly is scheduled to take place in spring 2025. Different conversion options for the office properties are in evaluation.
During the reporting period, a portfolio appreciation of CHF 171.0 million resulted in (2023: devaluation by CHF -161.3 million). CHF 155.2 million of the entire upgrading accounted for the investment portfolio; This includes the positive evaluation of the property bought at the end of June 2024 for CHF 7.5 million Rue de Hesse 18, Rue Henriette-Eanne-Rath 13 in Geneva. The developmental properties were used by CHF 15.7 million of the upgrading, in particular rental success and property -specific factors such as expectations of higher market rents (especially for objects above all locations). The weighted average discount rate for the entire portfolio fell by 3 basis points and was 3.82% (nominal) at the end of 2024; This includes an inflation rate of 1.25%(in late 2023: 3.85%, inflation rate 1.25%).
Of the rental contracts (CHF 28.3 million) expiring in 2025, 22% were still open at the end of 2024. The Wault (Weighted Average Unexpired Lease Term) of the overall portfolio was 4.8 years at the end of 2024, the one of the ten largest tenants who make up 25% of the rental income, 5.2 years.
Consolidated annual result
The property yield increased in the reporting period by CHF 18.1 million or 5.4% to CHF 350.0 million (2023: CHF 331.9 million). Like-For-like the increase in the property yield was CHF 10.0 million or 3.6% (of which CHF 3.5 million from sales rent, CHF 4.3 million from indexing and CHF 2.2 million from other factors). The proceeds from the sale of investment properties rose by CHF 13.2 million. Having a positive effect had higher other income by CHF 0.9 million, less maintenance and renovations of the properties of CHF 1.1 million and lower personnel expenditure by CHF 1.6 million had a negative effect Revenues from the sale of developmental properties by CHF 13.0 million, less activated own work by CHF 1.6 Mio., Higher operating and administrative expenditure by CHF 1.0 million and a netinance effort at CHF 11.4 million. However, it is important to mention that the financing costs with a debt rate of 1.03% over the last four quarters were still relatively speaking (at the end of 2023: 0.72%).
The operational result, i.e. the profit without real estate success, decreased compared to the previous year at CHF 107.4 million or 31.7% to CHF 231.8 million (2023: CHF 339.2 million). The previous year’s result 2023 was characterized by the dissolution of latent taxes over CHF 106.9 million (2024: CHF 10.9 million). The profit per share without a property success, which forms the basis for the dividend distribution, was CHF 5.05 (2023: CHF 7.40).
The net profit reached CHF 374.9 million (2023: CHF 207.6 million). The increase compared to the previous year’s period by CHF 167.4 million or 80.6% can be explained in particular by the portfolio recording by CHF 171.0 million (2023 resulted in a devaluation by CHF -161.3 million). The profit per share was CHF 8.17 (2023: CHF 4.53).
The equity per share (Net Asset Value; NAV) was CHF 117.96 (in late 2023: CHF 113.82). The NAV before deducting latent taxes amounted to CHF 139.51 (in late 2023: CHF 134.48).
Capital structure
With equity of CHF 5,411 billion at the end of 2024 – according to an equity ratio of 54.5% – the equity base remains solid (at the end of 2023: CHF 5.221 billion or 53.3%). The debt relating to interest was CHF 3,385 billion or 34.1% of the balance sheet total (late 2023: CHF 3,466 billion or 35.4%). As of the end of 2024, the average cut-off date cost rate was 1.05% (late 2023: 0.91%). The average interest rate was 4.0 years (at the end of 2023: 3.9 years).
At the time of the publication, PSP Swiss Property had CHF 0.9 billion, open credit facilities.
PSP Swiss Property AG has a long term issuer rating A3 from Moodyʼs (outlook stable).
sustainability
PSP Swiss Property has been reporting transparently about the activities and successes in the areas of environment, society and corporate governance for more than ten years. The sustainability report is now based on the GRI standard (Global Reporting Initiative). This increases the transparency as part of the non-financial disclosures.
The core of the sustainability effort is the ongoing reduction of the CO2-Missions along the lowering path with which the net zero goal is to be reached.
Remuneration policy and long-term incentive plan
The PSP Swiss Property business model is simple, understandable and long -term. The growth strategy is careful and considered, with a clear focus on the quality of the real estate portfolio and success in operational business; The size is secondary.
The remuneration policy and principles correspond to the business model. They too are simple and understandable and have always been based on sustainable, economic goals. In the reporting year, the ESG factor that had already been decided in 2023 for the variable, success-dependent remuneration of the management was true. From the 2025 financial year, the variable, success-dependent remuneration will also be supplemented by a long-term incentive plan (LTIP), which should contribute to the preservation of the company’s dividend ability in the long term. Basically, the LTIP only implements what has always been part of our conscientious business or dividend policy.
Significant applications to the General Assembly of April 3, 2025
The essential applications will include:
- Distribution of a gross dividend of CHF 3.90 per share (previous year: CHF 3.85).
- Re -election of the previous president of the Board of Directors and all previous members of the Board of Directors and Remuneration Committee.
- Reelection of Ernst & Young AG, Zurich, as a revision office and from Proxy Voting Services GmbH, Zurich, as an independent voting representative.
The composition and chair of the committees should remain unchanged.
outlook
The business forecasts for 2025 assume moderate growth and a strong job market. At the same time, the office and sales areas remain in good locations, especially in the city of Zurich. Accordingly, we assume a continued robust demand in our market segments – qualitatively high -quality properties in central locations, especially in Zurich, but also in Geneva. The transaction market should continue to improve.
We expect EBITDA for the 2025 financial year without a property success of around CHF 300 million (2024: CHF 304.9 million). When it comes to vacancy, we expect a quota of 3.5% at the end of 2025 (at the end of 2024: 3.2%).