Brief: PSP Swiss Net Income Reached CHF 76.9 Mln (H1 2022: CHF 227.2 Mln)

PSP Swiss Property AG

18/08/2023 05:39

Aug 18 (Reuters) - PSP SWISS PROPERTY AG  PSPN.S :
    * ACHIEVED A SOLID OPERATING RESULT. IMPROVED EBITDA
GUIDANCE FOR
FY 2023.
    * AT END OF JUNE 2023, VALUE OF PORTFOLIO WAS CHF 9.6
BILLION (END
OF 2022: CHF 9.4 BILLION)
    * VACANCY RATE WAS 3.2% (END OF 2022: 3.0%)
    * 0.3 PERCENTAGE POINTS OF VACANCY IS DUE TO ONGOING
RENOVATIONS
    * OF LEASE CONTRACTS MATURING IN 2023 (CHF 43.0 MILLION),
68% WERE
RENEWED BY END OF JUNE 2023
    * AS PER YEAR-END 2023, WE STILL FORECAST A VACANCY RATE OF
BELOW
4%
    * OUR FORECAST IS ALSO SUPPORTED BY LEASING SUCCESSES
ACHIEVED
AFTER 30 JUNE 2023
    * IN H1 2023, CORE ACTIVITY OF PSP SWISS PROPERTY - LETTING
OF
COMMERCIAL SPACE - DEVELOPED POSITIVELY; RENTAL INCOME INCREASED
FROM CHF 157.8 MILLION BY CHF 5.6 MILLION OR 3.5% TO CHF 163.3
MILLION COMPARED TO PREVIOUS YEAR'S PERIOD
    * H1 OPERATIONAL RESULT, I.E., NET INCOME EXCLUDING
GAINS/LOSSES
ON REAL ESTATE INVESTMENTS, INCREASED BY CHF 26.0 MILLION OR
20.9% TO CHF 150.5 MILLION (H1 2022: CHF 124.5 MILLION)
    * H1 RELEASE OF DEFERRED TAXES IN AMOUNT OF CHF 30.6 MILLION
HAD A
POSITIVE EFFECT ON OVERALL RESULT
    * LOWER PROFIT FROM SALE OF DEVELOPMENT PROJECTS AND
CONDOMINIUMS
(CHF -11.2 MILLION) HAD A NEGATIVE IMPACT
    * OPERATING EXPENSES DECREASED BY CHF 1.5 MILLION OR 5.3% TO
CHF
27.2 MILLION (H1 2022: CHF 28.7 MILLION)
    * H1 EPS EXCLUDING GAINS/LOSSES ON REAL ESTATE INVESTMENTS,
WHICH
IS BASIS FOR DIVIDEND DISTRIBUTION, AMOUNTED TO CHF 3.28 (H1
2022: CHF 2.71)
    * H1 NET INCOME REACHED CHF 76.9 MILLION (H1 2022: CHF 227.2
MILLION)
    * DECREASE IN NET INCOME BY CHF 150.2 MILLION OR 66.1% WAS
NOT
LEAST DUE TO PORTFOLIO DEVALUATION BY CHF 90.7 MILLION
    * IN PREVIOUS YEAR'S PERIOD H1 2022, A PORTFOLIO
APPRECIATION IN
AMOUNT OF CHF 131.9 MILLION HAD BEEN RECORDED
    * EPS AMOUNTED TO CHF 1.68 (H1 2022: CHF 4.95)
    * AT END OF JUNE 2023, NAV PER SHARE WAS CHF 111.19 (END OF
2022:
CHF 113.33)
    * NAV BEFORE DEDUCTING DEFERRED TAXES AMOUNTED TO CHF 133.57
(END
OF 2022: CHF 136.62)
    * WITH TOTAL EQUITY OF CHF 5.1 BILLION AT END OF JUNE 2023 -
CORRESPONDING TO AN EQUITY RATIO OF 52.2% - EQUITY BASE REMAINS
STRONG (END OF 2022: CHF 5.2 BILLION OR 54.8%)
    * INTEREST-BEARING DEBT AMOUNTED TO CHF 3.5 BILLION OR 36.0%
OF
TOTAL ASSETS (END OF 2022: CHF 3.1 BILLION OR 32.6%)
    * OUTLOOK: IN GENERAL, MARKET PARTICIPANTS ARE NOW
CONFRONTED WITH
CHALLENGES OF A CHANGED INTEREST RATE ENVIRONMENT, WHICH HAS NOT
BEEN CASE FOR TEN YEARS: VALUATION OF PROPERTIES MUST COPE WITH
MARKET UNCERTAINTIES. THANKS TO A LOW DEBT RATIO OF AROUND 36%,
HOWEVER, WE ARE WELL PREPARED FOR THIS
    * OUTLOOK: FOR BUSINESS YEAR 2023, WE NOW EXPECT AN EBITDA
EXCLUDING GAINS/LOSSES ON REAL ESTATE INVESTMENTS OF CHF 295
MILLION (PREVIOUSLY: CHF 290 MILLION; 2022: CHF 293.8 MILLION)
    * OUTLOOK: PSP SWISS PROPERTY IS WELL POSITIONED; RESULTING
PERSPECTIVES ARE POSITIVE, AND WE ARE CONFIDENT THAT WE WILL BE
ABLE TO ACHIEVE ANOTHER VERY GOOD OPERATIONAL RESULT IN 2023 TO
CONTINUE OUR SHAREHOLDER-FRIENDLY DIVIDEND POLICY

Source text for Eikon:  ID:nEQ7VT7b8a 
Further company coverage:  PSPN.S 

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