PSP Swiss Property AG (PSPSF) Q4 2025 Earnings Report

The call conveys a predominantly positive operational and financial picture: strong valuation gains, improved loan-to-value, healthy liquidity, robust leasing in core city locations, an increase in dividend, and an upgraded EBITDA guidance for 2026. Offsetting risks include flat rental income driven by disposals, reliance on valuation and one-off gains, cautious acquisition activity due to high prices, execution risk on some development projects, and structural office-market uncertainties (AI and bank consolidation). On balance the positives (recurring cash-flow strength, low vacancy, capital strength and clear guidance) outweigh the manageable risks.

The company guided to an increased EBITDA target of CHF 310 million for 2026 and a vacancy rate of roughly 3.5% (Wallisellen/Richtipark not included), reflecting year‑end 2025 vacancy of 3.5% and 16% lease expiries remaining that underpin the outlook; management also factored in roughly CHF 10–15 million of additional EBITDA from expected development/inventory disposals. Key balance‑sheet and funding metrics cited were loan‑to‑value of 33.1%, roughly CHF 1 billion of committed unused credit lines, and funding costs of about 80–90 bps on 4–5 year maturities; financial expenses ran at ~CHF 35 million (a similar 2026 run rate), taxes were CHF 95.5 million (CHF 31m current, CHF 65m deferred of which ~CHF 50m linked to valuation gains), and the Board proposes a dividend of CHF 3.95 (up CHF 0.05) implying an ~80% payout ratio. The guidance sits alongside 2025 metrics including CHF 231 million valuation gains (portfolio appreciation ~2.9% including investments, Q1 CHF13.7m, H1 +CHF97m, Q4 +CHF118.5m), a 2 bps yield compression in Q4, an expected like‑for‑like rental growth of ~1.5% for the year, and an anticipated deferred tax release of roughly CHF 5–10 million p.a. over the coming years.