Half Year 2026 PSP Swiss Property AG Earnings Call
Speaker #3: I am Maira de Kort, Collaborator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded.
Speaker #3: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone.
Speaker #3: For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Jacob.
Our Outlook is confirmed at the Abita Guides of 3305 million, almost the vacancy rate, guidance is converted to 3 and a half percent. Despite the slight increase in the half year, the Top Line will come a bit down by the year end, due to the disposals of the risky Park and the Gordon of last year and developments, which are going on. But overall, we are on target to continue our shareholder friendly division policy throughout the year. So all in all a very solid and strong off year result with that, I would like to
And my, uh, entry marks, and I'll hand over for Q&A.
We will now begin the question and answer session.
Anyone who wishes?
Please press Start and 1 on your telephone. You will hear a tone to confirm that you have entered the queue.
If you wish to remove yourself from the question queue, you may press star and 2. Anyone who has a question may press star and 1 at this time.
The first question comes from the line of Ken Calgary from KB. Please go ahead.
Yes, good morning everyone and thank you for taking my questions. The first 2 uh with regards to the financing, the credit financing firstly. I mean I've seen that the duration is becoming short and shorter. What is the strategy behind here? Do you just uh intend to go uh more below 3 years or is it again uh something that you think about a longer duration to Second 1 is with regards to the pricing of potential bonds following the rating change by Moody's. What is the impact? There? We can expect in your opinion and the last 1 is on the like, for like growth. You have shown some adjustments here. Uh, could you please uh, detail the reasons for those. Thank you very much.
Thank you again on the duration. As you remember, we are of the opinion, first of all, that we have a very strong inflation link in the portfolio of more than 90%. So we have strong protection on inflation increases, which, as you know, would then clearly be triggering the interest to increase. We have seen that in the last cycle. Secondly,
The low debt and the lowering debt is an additional protection for us.
Uh, and I think if you look back, historically, we always navigate within the duration of two and a half to four years.
Uh, what we try to do is to have a, a constant maturity of the debt, and then whenever we have a maturity, we clearly look at the curve. So for us 3 year is fine. But obviously whenever we see that there's a window, we go a bit longer but with the protections I mentioned with inflation linked and with the low debt, I think we're fine to be a bit on the short end of the duration, which has been did our strategy over the last 25 years.
With regard to the pricing of the bond, I think it's a bit early days. I think what—
Uh, 10 piece set that it's a rating improved. So it's clearly if you look at the Bold pricings and credit pricings, they're very strongly, linked to rating how much this then makes up. We will see, when we come up with the next, uh, Bond pricing, we are in discussions, continuously with the banks and, and, and, and the DCM teams. So, I would expect an improvement. However, I think we talked on, on a single digit levels with regard to SP levels, and you have also keep in mind that those spread levels change also the time. So it's also difficult then to compare with former spread levels.
And increase. If you recall, last year on the Radio Mare in Geneva in the first quarter, we had a very strong tax benefit which reduced—
The Q1 costs this proportionally. If you take out that effect, the like-for-like of this half year would be 1.7%. It is only based on the letting activities, without a single cost effect coming out of the Redeemer.
In very much.
The next question comes from the line of Holder Fish. From Right, Aizen, please go ahead.
Good morning. Thanks for taking my question. I have two questions.
First one would be on the second—the risk part in the acquisition of the property—you should think of that. So, what do the burn-out agreements entail, and what is the time frame for the payments? And could you remind us of the annual rental income of the newly acquired property?
That would be the first one.
Um, the earnouts—there are three earnouts on the risky part, which are linked to the progress.
Of the developments, and the permissions of the developments.
These are all now linked to 10, 10, and 5 million.
um,
Probability, I would say it's difficult to say because it's really now in the hands of the new owner.
And in that space, we will review every quarter.
Uh, what the status is, and if the probability of having a successful potential earnout, deciding 60%, we'll look at that earnout phase.
Um, with regard to the shoots and goes, the new rental income is roughly CHF 2 million per year.
And then they hardly—I heard,
um, okay.
Maybe better this way. Um, second question would be on the increase in the property values in Zurich. You said they were broadly based, but were they broadly based, or were there individual properties that saw more significant increases?
In the first half of the year.
Well, I would say they are broadly based, whatever is in the CBD or close to the CBD.
Um,
Beside the 1, in the Living Boy side, which we reported in Q1.
The others are all around the barn of St.
Um, they are some also in the things, right? So uh and and and clearly also the early months side. So some location, there was also 1 in in Geneva, which was above the, the top, the top 10.
Okay, great. Thank you.
The next question comes from the line of Alexander Tominov from Green Street. Please go ahead.
Good morning, and thank you for taking my questions. I have two questions. First, what is the deferred taxes release expected for the full year? Is it still consistent with the guidance of about 10 million Swiss francs?
And, um, second question: how are the discussions for the rest of the vacant area in Hotel Depot in Loan progressing, and what areas are left to reach out to?
All right. You said that the leases in Q3 and Q4 are going to take you up to about 70% of your concern.
Thank you. With regard to the guidance on the third taxes...
It's roughly 14 million.
Uh, we see for the full year.
Uh, with regard to the Post.
We are in advanced negotiations with a tech company.
On a lot of flow.
The one which is left to be, uh, rented out is the, the highest floor—the fifth floor.
Which, um, has a rooftop terrace. On the rooftop terrace, we have a concept for the summer periods. The other one is not a super high ceiling, so I think here we have a couple of options.
And then, on the right and left sides of the Wings, we have some little floor plates.
but um,
With the discussions with this tech company, which is active in the AI field, we are fairly advanced.
Besides that, we have very little retail area left.
So, it's really then more of a filling up.
Still waiting for some building permissions for the fit-out works, so this causes a slight delay in the 10 starting works. And clearly with that, also a slight delay in starting of the contracts.
Here we're talking about one to two months' delays in that. But everything is going very well. Thank you.
Thank you.
As a reminder, if you wish to register for a question, please press 'star' and '1' on your telephone.
The next question comes from the line of Tommaso Perto from UBS. Please go ahead.
Hey, good morning and I just have 1 question and uh, it's it's it's fairly speculative. So apologies. But um, I'm wondering on on the dividend. I mean, now that you've gone through the drifty park sale with with with with spreads continuing to be a very tight level since balance sheet super healthy. Is there any chance of uh of a bigger dividend Step Up potentially coming through or or or is there anything you could you could share on on, on that policy front?
Thank you, Tommaso. Well, it's not a speculative question; it's just in the responsibility of the board. I think what I can say, what we did in the past—in the last 25 years—we never had special dividends.
Um, when we had a little bit higher rent increase, it was due to rather acquisitions.
And rather strong, let things, which changed a bit, the curve.
I think our policies to be very predictable dividend contributors.
I would not exclude it because it's not my responsibility, but I would expect the continuous development of the dividends.
Got it, thanks.
Once again, I would like to ask a question, please.
Press star and 1 on your telephone.
Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to D. Mobile Zarrini for any closing remarks. Well, thank you very much to everybody for the inquiries. We'll be in touch in the next couple of days, and we wish you all a very good day. Thank you.
Ladies and gentlemen, the conference is now over. Thank you for choosing Carlos School, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.
