By Adria Calatayud
PSP Swiss Property raised its guidance for adjusted earnings in 2023, but reported a fall in net profit for the second quarter due to a devaluation in its real-estate portfolio.
The Swiss real-estate company said Friday it now expects earnings before interest, taxes, depreciation and amortization excluding gains or losses on property investments of 295 million Swiss francs ($335.8 million) this year, up from its previous guidance of CHF290 million.
The company said it expects temporary rent losses this year due to major renovation projects, though rental income is expected to be higher overall than in 2022 due to inflation adjustments in rental contracts, project completions and past acquisitions.
For the second quarter, PSP reported a net profit of CHF19.9 million compared with CHF149.2 million in the same period last year. The company booked a CHF90.7 million hit from changes in the fair value of real-estate investments.
Rental income for the quarter increased to CHF82.2 million from CHF78.7 million.
Adjusted Ebitda rose to CHF80.6 million from CHF68.1 million a year before.
PSP’s net asset value per share at the end of June was CHF111.19, down from CHF113.33 as of Dec. 31.
Write to Adria Calatayud at [email protected]
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