The Swiss real estate group PSP Swiss Property has released its nine-month results. Operating profit before revaluations and other property gains rose by 14.7 percent to 260.6 million Swiss francs. A major contributor to this was the sale of the Richtipark development project in Wallisellen, which took place in the second quarter.
The development site, comprising four parcels, five commercial buildings, and approximately 27,000 square meters of land, was sold for 150 million Swiss francs. The resulting profit contribution amounts to 39.7 million Swiss francs. In addition, there may be performance-based supplementary payments.
Leasing Remains Challenging
While the company benefited from the successful project sale, real estate income fell by 0.8 percent year-over-year to 259.3 million Swiss francs. On a comparable basis, however, there was slight growth of 0.5 percent.
This distinction is crucial for investors: Higher corporate profits do not automatically mean that recurring rental income will grow at the same rate. Project sales can significantly impact the results of individual fiscal years.
As of the end of September, PSP’s real estate portfolio had a book value of approximately 10.2 billion Swiss francs. The vacancy rate stood at 3.7 percent, down from 4.0 percent at the end of June.
Prime locations are gaining importance
PSP continues to focus on high-quality office and retail properties in central locations. There, demand for modern, well-connected spaces remains comparatively robust.
The situation is different for older properties and peripheral office locations. High modernization costs, changing workplace concepts, and varying regional demand trends are increasing pressure on owners.
For real estate investors, therefore, distinguishing between location quality, current earnings potential, and one-time development gains is becoming more important.
Annual Targets Remain in Place
PSP confirms an operating profit for the full year 2026—excluding revaluations and other real estate gains—of approximately 335 million Swiss francs. The vacancy rate is expected to stand at 3.5 percent by year-end.
The current figures underscore the value of an actively managed real estate portfolio. Project developments and targeted sales generate additional income, while stable long-term rental income remains the foundation of real estate investment.
This points to a clear challenge for the industry: what matters is not just the growth in portfolio value, but the sustainable rentability of individual properties.
