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Investing.com -- PSP Swiss Property (SIX:PSPN) shares fell 3% on Tuesday after the Swiss real estate company posted second-quarter results that matched expectations but showed slower rental growth and higher vacancies, despite strong valuation gains.
The Zug-based company reported first-half rental income of CHF174 million, down 1.3% from a year earlier, reflecting one-off effects in the prior period.
Like-for-like rental growth slowed to 1.2%, compared with 3.6% for full-year 2024 and 1.7% in the first quarter of 2025.
EBITDA excluding revaluations declined 2.3% to CHF148.8 million, broadly in line with consensus estimates, as no property disposals were recorded in the first half.
Valuation gains reached CHF113 million, equivalent to 1.2% of investment properties and above expectations of CHF109 million. Net income rose above consensus, supported by the higher revaluation gains.
The company’s vacancy rate increased to 4% at the end of the second quarter, up from 3.5% in the first quarter and 3.2% at the end of 2024.
PSP maintained its forecast for a full-year vacancy rate of about 3.5% and EBITDA excluding revaluations of CHF300 million.
PSP reclassified five properties in Wallisellen Richtipark as held for sale during the period.
The company reported steady demand for commercial properties in central Zurich and Geneva, while noting greater price sensitivity in secondary locations, non-food retail and older office space.
As of Aug. 18, PSP’s shares traded at CHF137.50, valuing the company at CHF6.31 billion (US$7.81 billion).
The stock has traded between CHF120.70 and CHF149.60 over the past 12 months. UBS set a 12-month price target of CHF148 and maintained a “neutral” rating on the shares.