PSP Swiss Property Reports Stable Q1 2024 Results and Raises EBITDA Forecast

PSP Swiss Property AG disclosed its quarterly financial results as of March 31, 2024, maintaining a solid performance in its operations. The real estate company reported that its portfolio, valued at CHF 9.6 billion, exhibited a slight increase in vacancy rates from 3.6% to 4.1%. Equity stood at CHF 5.3 billion, indicating a robust equity ratio of 54.5%.

Rental income saw a significant rise of 9.9%, reaching CHF 89.2 million, compared to CHF 81.1 million in the previous year. This increase was attributed to various factors, including newly acquired properties and positive adjustments in existing leases. The company's operating result, excluding gains or losses on real estate investments, showed a marginal increase to CHF 56.6 million from CHF 56.3 million.

PSP Swiss Property has revised its EBITDA expectations for the 2024 fiscal year, now forecasting CHF 300 million, up from a previous projection of over CHF 295 million. This uplift in guidance reflects the firm's confidence in its operational efficiency and market conditions, despite challenges in peripheral and less sustainable property sectors.

The company also highlighted stability in the transaction market for prime city-center properties amid persisting high interest rates. Investor interest remains cautious for properties in less central locations or those with lower sustainability standards.