PSP Swiss Property net income rises 13.5% to CHF 294.6 million
Key Facts
PSP Swiss Property reported a 13.5% increase in net income to CHF 294.6 million in the first nine months of 2026, compared with CHF 259.5 million in the same period last year. The company said operating profit before interest, taxes, depreciation and amortization, excluding gains and losses on investment properties, rose 14.7% to CHF 260.6 million from CHF 227.2 million. It attributed a major part of the increase to the sale of the Richtipark development project in Wallisellen. The results came as total rental income fell, while like-for-like rents recorded modest growth. PSP reaffirmed its full-year adjusted operating profit guidance of CHF 335 million.
Rental income was CHF 259.3 million in the nine months, compared with CHF 261.4 million in the same period of 2025. But on a comparable standing-property basis, rental income rose 0.5%, or CHF 1.1 million, under the EPRA like-for-like measure. The divergence between the two figures reflects that rental growth in comparable assets did not prevent a decline in reported total income for the period. Net income excluding gains and losses on investment properties rose 22% to CHF 202.7 million from CHF 166.2 million a year earlier. Earnings per share also increased to CHF 6.42 from CHF 5.66. The improvement therefore extended to adjusted income and earnings per share, alongside growth in reported net income.
The Richtipark sale was the clearest driver of adjusted operating profit, with the project comprising four plots of land and five commercial buildings across a total area of approximately 27,000 square metres. The sale price was CHF 150 million, with an agreement for potential additional payments of up to CHF 24.75 million, subject to specified conditions. The company said the transaction was a major contributor to the CHF 33.3 million year-on-year increase in adjusted operating profit. The value of the additional payments indicates that the final consideration may include amounts conditional on completion of the sale. The sale took place in the second quarter of 2026, while its impact was reflected in the nine-month results.
At the asset level, property revaluations in the nine months resulted in a positive market value adjustment of CHF 118.4 million. This comprised CHF 110.6 million for the investment portfolio and CHF 8.6 million for properties under development. As of September 30, 2026, the carrying value of the property portfolio was CHF 10.2 billion, comprising 147 investment properties and 12 development properties. The vacancy rate was 3.7% on that date, compared with 3.5% at the end of 2025. PSP expects the vacancy rate to reach 3.5% by the end of 2026.
PSP said demand remained strong for sustainable, high-quality office space in central locations, while peripheral locations, older office buildings and non-food retail remained among the more challenging environments. High-street stores, by contrast, continued to perform well, the company said. It expects demand for high-quality offices and retail space in central locations to remain strong, supporting the leasing market. It also said it expects the Swiss real estate market to develop positively overall for the remainder of 2026, particularly in its market segment. The company added that large acquisitions are unlikely in the near term.
Net financing expenses were CHF 26.1 million for the period, compared with CHF 26.4 million a year earlier. The average cost of debt over the last four quarters was 1.04%, versus 1.05% at the end of 2025. In the third quarter alone, adjusted operating profit reached CHF 73.1 million, down from CHF 78.4 million in the same quarter of the previous year. The share price stood at CHF 142.80 at the end of the reporting period, compared with CHF 143.50 at the end of 2025. The company is scheduled to publish its 2026 financial year results on February 16, 2027.