Strong market demand and …

Appearance date: May 13, 2025

For the complete protocol of the earnings call, see the full profit call transcription.

• PSP Swiss Property AG (PSPSF) reported on a positive mood at main locations, especially in Zurich and Geneva, which indicates a strong market demand.

• The company achieved significant successes of rentals, including the full occupancy of the most important properties that support their vacancy rate guidelines.

• A sustainability marking in Geneva led to positive costs, since the company is exempt from land for 20 years from land to a certain building.

• Due to a review of the leasing contract, the company experienced an assessment of around CHF 13 million in a building.

• The approval for the Richti Park project in Valais Island is expected to have a positive impact on future developments.

• The results of the company were slightly below the market consensus, although they were oriented with internal projections.

• There is a bifurcation on the market between Prime and Non-Primes locations that can affect the tenant income potential.

• The transaction market is still limited, with only a few potential sellers influence the company's ability to use sales with assets.

• An increase in local tax rates in Geneva from 14% to 14.7% has led to higher income taxes for the company.

• The company is exposed to 16% of 16% in 2027, which could affect future vacancy rates if they are not treated effectively.

Q: Could you comment on that somewhat negative lifespan in Zurich? A: Unidientified_1: The negative growth, minus 40 basis points, is due to a strong contribution from the sales rent in a building last year that was not repeated this year.

Q: Are there other developments in Zurich, especially with regard to the plans of the community to revive the area? A: Unidiendified_1: There is a constant revival in the region, including a larger transaction of the BPE building. The overall quality of the area improves what is positive for our projects.

Q: With regard to the processes in 2017 and 2018, you can give insights into potential effects on vacancy rates and renovations? A: Unidientified_1: We are working on laying the Ricaso building again and taking into account a potential reconversion. We are positive in order to renew retail contracts and manage members of the office.

Q: How do you see the costs for debts in the coming year? A: Unidientified_1: We assume that the debt costs will remain stable, around 1% plus or minus, without considerable increases due to the current market conditions.