For the reporting period January to March 2009, PSP Swiss Property has improved its results, compared to last year's first quarter: Net income excluding changes in fair value increased by 11.5% to CHF 33.5 million (first quarter 2008: CHF 30.0 million). Including the revaluation gains of CHF 4.5 million, net income amounted to CHF 37.0 million (first quarter 2008: CHF 30.4 million). Earnings per share increased by 23.6% to CHF 0.89 (first quarter 2008: CHF 0.72). As at the end of March 2009, the NAV per share of CHF 62.73 was 1.5% higher than as at the end of 2008 (CHF 61.83). NAV before deducting deferred tax liabilities grew by 1.5% to CHF 73.10 (end of 2008: CHF 72.01).
Real estate portfolio
As at the end of March 2009, the real estate portfolio of PSP Swiss Property included 189 office and commercial properties in prime locations as well as 7 attractive development sites with a carrying value of CHF 5.174 billion (end of 2008: CHF 5.149 billion). In the first months of the year, we evaluated several acquisition opportunities, but no purchases were made.
The ongoing site developments progressed as planned. The following developments are worth mentioning. i) Hürlimann site, Zurich: Construction started at the beginning of 2009 for a unique health spa combined with a boutique hotel. The health spa is planned to open at the end of 2010, while the hotel opening is planned for spring 2011. The total investment for this project amounts to approximately CHF 60 million (excl. land and infrastructure). ii) Wädenswil site: All 15 freehold apartments of the apartment complex „SeeSicht" have been sold in the meantime and will be transferred to the buyers during this year. This will result in a net income from sales before taxes of approximately CHF 1.7 million for the 2009 business year. This gain is not part of the Q1 results.
Stable vacancy rate
As at the end of March 2009, the vacancy rate was 8.4% (end of 2008: 8.3%), whereof 1.9 percentage points were due to renovation work on several properties (end of 2008: 1.2 percentage points). 0.7 percentage points relate to the property on Bleicherweg 10 in Zurich which will be fully let after completion of the renovation work as at 1 December 2009. Most of the other renovation work will be completed in 2009 and 2010.
Solid capital structure
With an equity ratio of 49.6% (end of 2008: 49.1%) and a loan-to-value of 39.7% (end of 2008: 40.5%), the capital structure remains very solid. The amount of unused credit lines was CHF 575 million. The average interest rate was 2.49% in the first quarter of 2009 (first quarter of 2008: 2.70%). As per end of March 2009, the average weighted remaining term to maturity of all financial liabilities was 3.0 years (end of 2008: 3.1 years).
Outlook 2009
We confirm the forecast communicated during the publication of the 2008 annual results (27 February 2009): i) Based on the assumption of an unchanged property portfolio, an EBITDA excluding gains/losses on real estate investments of over CHF 210 million (2008: CHF 208.4 million) and, ii) a vacancy rate below 9% is expected at year-end of 2009.
