PSP Swiss Property generated a solid business result in the first three quarters of 2026, supported by portfolio quality and a focus on central locations within a differentiated market environment. The company confirmed its full-year 2026 guidance for EBITDA excluding property gains at CHF 335 million.
The leasing market for high-quality office and retail space in central locations across major Swiss economic centers remained robust during the first nine months of the year. Operating profit, measured as EBITDA excluding property gains, rose by CHF 33.3 million or 14.7% to CHF 260.6 million, compared to CHF 227.2 million in the first three quarters of 2025. This increase was primarily attributed to the divestment of the Richtipark development project in Wallisellen. The EBITDA margin stood at 86.3%, up from 85.2% in the prior-year period. The vacancy rate remained low at 3.7%, compared with 3.5% at the end of 2025.
During the reporting period, PSP Swiss Property sold the Richtipark development project in Wallisellen and the property Igelweid 1 in Aarau. Acquisitions included the property located at Schützengasse 1 and Beatengasse 4 in Zurich, while ongoing construction projects proceeded according to plan.
In the Swiss commercial leasing market, well-connected, high-quality, and sustainable office spaces in central locations experienced strong demand, though trends varied by region and segment. Office markets in Bern and Lausanne developed stably, accompanied by a lease agreement on Peter Merian-Strasse in Basel taking effect at the beginning of the first quarter of 2027. Centrally located office spaces in Zurich and Genf continued to encounter high demand. Conversely, the market environment for peripheral locations, older office buildings, and the non-food retail segment remained structurally demanding, while the high-street retail segment recorded a positive development.
On the Swiss investment market, demand for high-quality commercial properties in central locations remained elevated, focusing on sustainably positioned assets with long-term stable cash flows, particularly in Zurich and Genf. Limited supply met continued investment readiness despite an uncertain interest rate environment, supported by available financing options. Selective lending favoured investors with a solid equity base or high liquidity, while properties in peripheral locations and older objects continued to face challenging conditions. The company pursued acquisitions with discipline, targeting central commercial properties with medium- to long-term value-add potential.
As of September 30, 2026, the real estate portfolio of PSP Swiss Property reached a balance sheet value of CHF 10.2 billion, compared to CHF 10.1 billion at the end of 2025, comprising 147 investment properties and 12 development properties. The sale of the Richtipark development project in Wallisellen during the second quarter involved four plots with five commercial buildings and a total land area of approximately 27,000 square meters. The sale price was CHF 150 million, alongside conditional earn-out payments of up to CHF 24.75 million. The purchase of Schützengasse 1 and Beatengasse 4 in Zurich during the second quarter amounted to CHF 75.0 million, subject to a potential CHF 5.0 million increase from an earn-out factor. The investment property Igelweid 1 in Aarau was sold in the first quarter following the acquisition of an adjacent plot.
During the third quarter of 2026, properties at Rue de Hesse 18 and Rue Henriette-et-Jeanne-Rath 13 in Genf, as well as Place Saint-François 5 in Lausanne, were reclassified into the development portfolio. The completed project TEC at Grosspeterstrasse 24 in Basel was transferred to the investment portfolio in the same quarter. Earlier in the first half of 2026, properties at Eigerstrasse 2 in Bern, Route des Acacias 50 and 52 in Carouge GE, Marktplatz 30 and 30a in Basel, and Heinrich Stutz-Strasse 23 and 25 in Urdorf were moved to the development portfolio, while completed projects in Genf and Lausanne were transferred to the investment portfolio.
Selected ongoing projects with investment volumes starting at CHF 10 million included the Löwenbräu Red property in Zurich, slated for conversion into a hotel. Following building permit approvals in early 2026 and July 2026, a lease agreement was signed with Althoff Hotels in March 2026 to open a 175-room Urban Loft hotel by 2028, backed by an investment volume of approximately CHF 25 million. In Bern, the Eigerstrasse property is undergoing total renovation and repositioning to include 125 serviced apartments under a single-tenant operator model, with completion targeted for late 2028 and an investment sum of around CHF 20 million. In Basel, Marktplatz 30 and 30a is undergoing total renovation while retaining mixed retail, gastronomy, office, and residential uses; construction is scheduled to begin in the fourth quarter of 2026 and finish by the end of 2028, with an investment volume of roughly CHF 23 million, of which CHF 1.9 million was invested by the end of September 2026.
Of the lease contracts expiring in 2026 representing CHF 37.9 million, 3% remained open as of the reporting date. The weighted average unexpired lease term across the total portfolio stood at 5.2 years, compared to 4.9 years at the end of 2025. The company anticipated a vacancy rate of 3.5% for year-end 2026.
Revaluations of properties during the first three quarters generated a positive market value adjustment of CHF 118.4 million, with CHF 110.6 million attributable to the investment portfolio and CHF 8.6 million to development properties. The valuation of the Schützengasse and Beatengasse acquisition in Zurich resulted in a negative effect of CHF -0.8 million due to transaction costs.
