PSP Swiss Property AG

For 2025, operating income increased 9.4%. Rental income was flat, while operating expenses fell 1.2% and EBITDA margin was slightly above 85%. Financial expenses were roughly CHF 35 million, and taxes were CHF 95.5 million, including CHF 31 million current taxes and CHF 65 million deferred taxes, of which CHF 50 million were linked to valuation gains. Valuation gains were CHF 231 million, with CHF 13.7 million in Q1, CHF 97 million in H1, and CHF 118.5 million in Q4; portfolio appreciation was roughly 2.9% including investments. Vacancy ended at 3.5%, LTV was 33.1%, and the dividend proposal was CHF 3.95, up CHF 0.05, for an 80% payout ratio. For 2026, management guided for EBITDA of CHF 310 million and vacancy of roughly 3.5%.

The CEO’s message was constructive and confident, centered on strong demand in Zurich and Geneva, especially in city-center locations, and on the company’s ability to capture higher rents through selective leasing and repositioning. He emphasized a bifurcated market where prime central assets are in demand, while also noting that PSP remains disciplined on acquisitions and would only pursue large, immediately accretive deals. He also framed AI and UBS/Credit Suisse consolidation as manageable or even supportive in central locations, while keeping a cautious stance on non-central assets.

The financial commentary highlighted higher operating income, flat rental income due to disposals, lower operating expenses, and an EBITDA margin slightly above 85%. He pointed to financial expenses of roughly CHF 35 million as a likely run rate for 2026, and to taxes of CHF 95.5 million with a large deferred component tied to valuation gains. On the balance sheet, he emphasized roughly CHF 1 billion of unused committed credit lines and a lower LTV of 33.1%, which he said provides flexibility and protection; he also noted the dividend increase to CHF 3.95 and the 80% payout ratio.

Analysts focused on the investment market, acquisition appetite, equity funding, AI-related office demand risk, UBS/Credit Suisse consolidation, dividend growth, and the source of the 2026 EBITDA uplift. Management said market liquidity is higher but prime deals remain scarce, and it would only consider equity for a very large, day-one accretive portfolio, which it currently excludes. On AI, the company said it is watching optimization closely but sees city-center space as more resilient; on UBS/Credit Suisse, it viewed Zurich as positive because of centralization, while Geneva was said to be less affected. PSP also clarified that Wallisellen is not in guidance and that the extra CHF 10 million to CHF 15 million of EBITDA is expected from development sales of inventories, not from that transaction.