PSP Swiss Property slides on Q1 miss, uncertainties around outlook

PSP Swiss Property AG

05/05/2023 08:53

** Shares in PSP Swiss Property  PSPN.S  fall 2.6% after the
real estate group reported Q1 operating result below market
expectations and raised concerns for outlook
    ** The group's Q1 operating result decreased by 19.2% to
56.3 million Swiss francs ($63.40 million) due to lower profit
from the sale of development projects and condominiums
    ** Credit Suisse says the results were "mixed", with rental
income in line but operating EBITDA around 20% below estimates
    ** Looking ahead, the company says "selective devaluations"
of properties cannot be excluded due to increased interest rates
and lower liquidity in the transaction market
    ** Baader Helvea says while Q1 results were "solid", it
questions whether the group can continue to outperform the
market or if negative revaluations for H1 could point to a
multi-period revision trend
    ** "Given the significant rise in interest rates and
negative impacts on consumers from inflation potentially
starting to impact their property demand plus the structural
trend for more home office, we think investors will rather opt
for the latter," it says
    ** PSP falls to the bottom of the Swiss mid-caps index
 .SMIM 
    
($1 = 0.8880 Swiss francs)

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))