- PSP Swiss Property AG (PSPSF) Q1 2026 Earnings Call Highlights: Solid Growth Amid Strategic ...
May 14, 2026
This article first appeared on GuruFocus.
Like-for-Like Growth: 0.6%, adjusted to 1.7% excluding one-offs. Property Valuation Uplift: CHF 13 million increase for Lowenbrau property. Vacancy Rate Outlook: Confirmed at 3.5%. EBITDA Guidance: CHF 310 million for the full year.
Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
PSP Swiss Property AG (PSPSF) reported solid Q1 results with top-line growth in line with expectations. The company achieved a significant valuation uplift of more than CHF13 million for a property due to successful letting. The vacancy rate is expected to decrease to 3.5%, supported by several letting successes across major cities. The company maintains a stable cost base and confirms its EBITDA guidance of CHF 310 million for the full year. PSP Swiss Property AG (PSPSF) has a strong focus on prime assets in primary cities, which aligns with its successful strategy.
Negative Points
The like-for-like growth was only 0.6%, although it would have been 1.7% without last year's one-off costs. The company is in negotiations for the sale of the Wallisellen asset, but visibility on the transaction's completion is not guaranteed. The fixed interest period has fallen to 3.1 years, below the company's preferred range of 3.5 to 4.5 years. The Geneva market experienced a vacancy rate increase and negative like-for-like growth due to a one-off cost benefit last year. Political uncertainties related to Lex Koller create an unpleasant environment, although the company believes it is unlikely to pass.
Q & A Highlights
Warning! GuruFocus has detected 9 Warning Signs with PSPSF. Is PSPSF fairly valued? Test your thesis with our free DCF calculator.
Q: What did you pay for the Wallisellen asset acquired during Q1? A: This was a very small amount in the single digit. - Giacomo Balzarini, CEO & CFO
Q: Could you give us a timing on the Wallisellen sales, and would you issue a press release if it goes through? A: We are in negotiations, and it is likely to conclude by midyear. If the transaction impacts EBITDA guidance, it will be communicated with the closing of the transaction. - Giacomo Balzarini, CEO & CFO
Q: How will you deploy the cash from the potential sale of the Wallisellen assets? A: Any cash inflow from disposals will go against debt as part of our funding strategy. - Giacomo Balzarini, CEO & CFO
Q: How do you plan to reduce the vacancy rate from 3.9% to 3.5%? A: We have several letting successes lined up for Q2, Q3, and Q4, which give us visibility to achieve the 3.5% target. - Giacomo Balzarini, CEO & CFO
Story Continues
Q: What is your view on the potential impact of Lex Koller on the real estate market? A: We believe it is unlikely to pass as it is a long political process and previous similar initiatives have not succeeded. - Giacomo Balzarini, CEO & CFO
Q: What is the status of the potential acquisition linked to the Wallisellen disposal? A: We are negotiating both transactions, and they are considered a combination. - Giacomo Balzarini, CEO & CFO
Q: Why has the fixed interest period fallen to 3.1 years, and does the range of 3.5 to 4.5 years still apply? A: We are opportunistic in the capital market and not concerned about the current period being slightly below our preferred range. - Giacomo Balzarini, CEO & CFO
Q: Can you provide more information on the open maturities of 11% and the progress on 2027 renewals? A: The largest expiry is with Google, and we are finalizing extensions. Other expiries are being managed with ongoing discussions. - Giacomo Balzarini, CEO & CFO
Q: What are your thoughts on the Geneva market, considering the vacancy rate increase and like-for-like growth? A: The like-for-like was affected by a one-off cost benefit last year. We are positive about the Geneva market with successful lettings. - Giacomo Balzarini, CEO & CFO
Q: Do you see any specific risks or impacts from the Middle East conflict on the Swiss economy and real estate sector? A: Currently, we do not feel significant impacts. Our business model and tenant base are not directly affected. - Giacomo Balzarini, CEO & CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- PSP Swiss Property AG (PSPSY) Q1 2026 Earnings Call Transcript
May 12, 2026 · seekingalpha.com
PSP Swiss Property AG (PSPSY) Q1 2026 Earnings Call Transcript
- PSP Swiss Property AG (PSPSY) Full Year 2025 Earnings Call Highlights: Strong Operating Income ...
Feb 25, 2026
This article first appeared on GuruFocus.
Operating Income: Increased by 9.4%. Rental Income: Flat due to disposals, offset by project completions and acquisitions. Gain from Property Disposal: CHF7.7 million from Bern, Gurten. Operating Expenses: Reduced by 1.2%, with a significant property tax refund in Geneva. EBITDA Margin: Slightly above 85%. Financial Expenses: Approximately CHF35 million. Taxes: Total CHF95.5 million, with CHF31 million in current taxes and CHF65 million in deferred taxes. Dividend Proposal: Increase to CHF3.95, resulting in an 80% payout ratio. Vacancy Rate: 3.5% as expected. Valuation Gains: CHF231 million, with a 2.9% portfolio appreciation. Loan-to-Value Ratio: Reduced to 33.1%. EBITDA Guidance for 2026: CHF310 million. Vacancy Rate Guidance for 2026: Approximately 3.5%.
Warning! GuruFocus has detected 9 Warning Signs with PSPSY. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Is PSPSY fairly valued? Test your thesis with our free DCF calculator.
Release Date: February 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
PSP Swiss Property AG (PSPSY) reported an excellent year-end result for 2025, driven by strong business sentiments in Zurich and Geneva. Operating income increased by 9.4%, supported by net changes in fair value. The company achieved a reduction in operating expenses by 1.2%, with a significant property tax refund in Geneva contributing to this decrease. The vacancy rate improved to 3.5%, with successful lettings in key locations such as Binz and Fusslistrasse. The Board proposed an increase in the dividend to CHF3.95, resulting in a payout ratio of 80%.
Negative Points
Rental income remained flat due to disposals, which reduced the top line. No acquisitions were made during the year, potentially limiting growth opportunities. The company faces challenges in the investment market, with high prices and limited transactions in prime locations. There is a potential risk of space optimization by tenants due to advancements in artificial intelligence, which could impact demand for office space. The integration of Credit Suisse into UBS may lead to consolidation of office space, posing a threat to office demand in Zurich and Geneva.
Q & A Highlights
Q: Could you update on the general investment market and the possibility of using equity markets for funding in 2026? A: (Giacomo Balzarini, CEO) We see more liquidity in the market with a few prime transactions. We would only tap the equity market for substantial, accretive portfolios, which is unlikely at the moment.
Story Continues
Q: Are there any perceived risks from artificial intelligence affecting tenant space requirements? A: (Giacomo Balzarini, CEO) AI may lead to optimization within organizations, potentially freeing up larger office spaces outside city centers. However, demand for Grade A space in central locations remains strong.
Q: With a low loan-to-value (LTV) ratio, can we expect accretive acquisitions? A: (Giacomo Balzarini, CEO) We maintain strong discipline on acquisitions, focusing on creating medium-term value. We will leverage for accretive transactions but remain cautious given current market conditions.
Q: How does the integration of Credit Suisse into UBS impact office space in Zurich and Geneva? A: (Giacomo Balzarini, CEO) UBS is concentrating activities in central Zurich, which is positive for us. The impact in Geneva is negligible compared to Zurich.
Q: Can you provide guidance on EPRA earnings per share for the year? A: (Giacomo Balzarini, CEO) We expect a slight uptick in EPRA earnings per share, with a flat top-line development and potential gains from disposals factored into our guidance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- With 51% ownership, PSP Swiss Property AG (VTX:PSPN) boasts of strong institutional backing
Feb 9, 2026
Key Insights
Given the large stake in the stock by institutions, PSP Swiss Property's stock price might be vulnerable to their trading decisions 46% of the business is held by the top 25 shareholders Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
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A look at the shareholders of PSP Swiss Property AG (VTX:PSPN) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
In the chart below, we zoom in on the different ownership groups of PSP Swiss Property.
View our latest analysis for PSP Swiss Property SWX:PSPN Ownership Breakdown February 9th 2026
What Does The Institutional Ownership Tell Us About PSP Swiss Property?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in PSP Swiss Property. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see PSP Swiss Property's historic earnings and revenue below, but keep in mind there's always more to the story.SWX:PSPN Earnings and Revenue Growth February 9th 2026
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in PSP Swiss Property. UBS Asset Management AG is currently the largest shareholder, with 15% of shares outstanding. For context, the second largest shareholder holds about 6.0% of the shares outstanding, followed by an ownership of 5.1% by the third-largest shareholder.
Story Continues
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of PSP Swiss Property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of PSP Swiss Property AG. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own CHF45m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with PSP Swiss Property (including 2 which are a bit unpleasant) .
Ultimately the future is most important. You can access this freereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- PSP Swiss Property's (VTX:PSPN) Profits May Not Reveal Underlying Issues
Aug 27, 2025
PSP Swiss Property AG's (VTX:PSPN) healthy profit numbers didn't contain any surprises for investors. We think this is due to investors looking beyond the statutory profits and being concerned with what they see.
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.SWX:PSPN Earnings and Revenue History August 27th 2025
The Impact Of Unusual Items On Profit
For anyone who wants to understand PSP Swiss Property's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from CHF242m worth of unusual items. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. PSP Swiss Property had a rather significant contribution from unusual items relative to its profit to June 2025. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
Our Take On PSP Swiss Property's Profit Performance
As we discussed above, we think the significant positive unusual item makes PSP Swiss Property's earnings a poor guide to its underlying profitability. For this reason, we think that PSP Swiss Property's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. But at least holders can take some solace from the 44% EPS growth in the last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So while earnings quality is important, it's equally important to consider the risks facing PSP Swiss Property at this point in time. For example, PSP Swiss Property has 3 warning signs (and 2 which make us uncomfortable) we think you should know about.
Today we've zoomed in on a single data point to better understand the nature of PSP Swiss Property's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- PSP Swiss Property Second Quarter 2025 Earnings: EPS Beats Expectations
Aug 20, 2025
Explore PSP Swiss Property's Fair Values from the Community and select yours
PSP Swiss Property (VTX:PSPN) Second Quarter 2025 Results
Key Financial Results
Revenue: CHF87.4m (flat on 2Q 2024). Net income: CHF133.8m (up 78% from 2Q 2024). EPS: CHF2.92 (up from CHF1.64 in 2Q 2024).
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.SWX:PSPN Earnings and Revenue Growth August 20th 2025
All figures shown in the chart above are for the trailing 12 month (TTM) period
PSP Swiss Property EPS Beats Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.7%.
Looking ahead, revenue is forecast to grow 2.2% p.a. on average during the next 3 years, while revenues in the Real Estate industry in Switzerland are expected to remain flat.
Performance of the Swiss Real Estate industry.
The company's shares are down 3.0% from a week ago.
Risk Analysis
It is worth noting though that we have found 3 warning signs for PSP Swiss Property (2 are significant!) that you need to take into consideration.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- With 53% ownership, PSP Swiss Property AG (VTX:PSPN) boasts of strong institutional backing
Aug 10, 2025
Key Insights
Institutions' substantial holdings in PSP Swiss Property implies that they have significant influence over the company's share price A total of 25 investors have a majority stake in the company with 46% ownership Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
If you want to know who really controls PSP Swiss Property AG (VTX:PSPN), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 53% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's take a closer look to see what the different types of shareholders can tell us about PSP Swiss Property.
View our latest analysis for PSP Swiss Property SWX:PSPN Ownership Breakdown August 10th 2025
What Does The Institutional Ownership Tell Us About PSP Swiss Property?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in PSP Swiss Property. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of PSP Swiss Property, (below). Of course, keep in mind that there are other factors to consider, too.SWX:PSPN Earnings and Revenue Growth August 10th 2025
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. PSP Swiss Property is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is UBS Asset Management AG with 15% of shares outstanding. With 6.0% and 5.1% of the shares outstanding respectively, BlackRock, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders.
Story Continues
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of PSP Swiss Property
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own less than 1% of PSP Swiss Property AG. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CHF40m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over PSP Swiss Property. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with PSP Swiss Property (at least 2 which shouldn't be ignored) , and understanding them should be part of your investment process.
Ultimately the future is most important. You can access this freereport on analyst forecasts for the company.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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- PSP Swiss Property AG (PSPSF) Q1 2025 Earnings Call Highlights: Strong Market Demand and ...
May 14, 2025
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
PSP Swiss Property AG (PSPSF) reported positive sentiment in prime locations, particularly in Zurich and Geneva, indicating strong market demand. The company achieved significant letting successes, including full occupancy in key properties, which supports their vacancy rate guidance. A sustainability label in Geneva resulted in a positive cost impact, as the company is exempt from property taxes on a specific building for 20 years. The company experienced a valuation uplift of approximately 13 million CHF on a building due to a leasing contract review. Rezoning approval for the Richti Park project in Wallis Island is expected to positively impact future developments.
Negative Points
The company's results were slightly below market consensus, although they aligned with internal projections. There is a bifurcation in the market between prime and non-prime locations, which may affect rental income potential. The transaction market remains limited, with few potential sellers, impacting the company's ability to capitalize on asset sales. An increase in local tax rates in Geneva from 14% to 14.7% has led to higher income taxes for the company. The company faces a high lease expiry rate of 16% in 2027, which could impact future vacancy rates if not managed effectively.
Q & A Highlights
Warning! GuruFocus has detected 10 Warning Signs with PSPSF.
Q: Could you comment on the slightly negative life-for-like growth in Zurich? A: Unidentified_1: The negative growth, minus 40 basis points, is due to a strong contribution from turnover rent in one building last year, which was not repeated this year.
Q: Are there any other developments in Zurich, particularly regarding the municipality's plans to revitalize the area? A: Unidentified_1: There is ongoing revitalization in the area, including a larger transaction of the Bpe building. The overall quality of the area is improving, which is positive for our projects.
Q: Regarding expiries in 2017 and 2018, could you provide insights on potential effects on vacancy rates and renewals? A: Unidentified_1: We are working on re-letting the Ricaso building and considering potential reconversion. We are positive about renewing retail contracts and managing office tenant expiries.
Q: How do you see the cost of debt developing over the coming year? A: Unidentified_1: We expect the cost of debt to remain stable, around 1% plus or minus, with no major increases anticipated based on current market conditions.
Story Continues
Q: Could you explain the unusually high income taxes this period? A: Unidentified_1: The increase is due to an adjustment in local tax rates in Geneva from 14% to 14.7%, aligning with a target of 15%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
- PSP Swiss Property AG's Dividend Analysis
Apr 19, 2024
Understanding PSP Swiss Property AG's Dividend Payout and Growth Prospects
PSP Swiss Property AG(PSPSY) recently announced a dividend of $0.84 per share, payable on 2024-04-24, with the ex-dividend date set for 2024-04-19. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into PSP Swiss Property AG's dividend performance and assess its sustainability.
What Does PSP Swiss Property AG Do?
Warning! GuruFocus has detected 6 Warning Signs with PSPSY. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock?
PSP Swiss Property AG is a general real estate company. The company reports three business units: real estate investments, property management, and holding. The vast majority of revenue is generated by rental income. All PSP property is located in Switzerland. The company considers merger and acquisition investment as a potential component of its operational growth strategy. The company's real estate investment segment invests exclusively in commercial properties, with leases primarily in office and retail property. PSP Swiss Property AG's Dividend Analysis
A Glimpse at PSP Swiss Property AG's Dividend History
PSP Swiss Property AG has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a yearly basis. PSP Swiss Property AG has increased its dividend each year since -, which qualifies it as a dividend king, a title reserved for companies that have consistently raised their dividends for at least the past 2024 years. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down PSP Swiss Property AG's Dividend Yield and Growth
As of today, PSP Swiss Property AG currently has a 12-month trailing dividend yield of 3.44% and a 12-month forward dividend yield of 3.38%. This suggests an expectation of a slight decrease in dividend payments over the next 12 months. Over the past three years, PSP Swiss Property AG's annual dividend growth rate was 1.80%. Extended to a five-year horizon, this rate increased to 2.20% per year. And over the past decade, PSP Swiss Property AG's annual dividends per share growth rate stands at 1.80%. Based on PSP Swiss Property AG's dividend yield and five-year growth rate, the 5-year yield on cost of PSP Swiss Property AG stock as of today is approximately 3.84%. PSP Swiss Property AG's Dividend Analysis
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, PSP Swiss Property AG's dividend payout ratio is 0.85, which may suggest that the company's dividend may not be sustainable. PSP Swiss Property AG's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks PSP Swiss Property AG's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Story continues
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. PSP Swiss Property AG's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and PSP Swiss Property AG's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. PSP Swiss Property AG's revenue has increased by approximately 2.40% per year on average, a rate that underperforms approximately 57.43% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, PSP Swiss Property AG's earnings increased by approximately -10.70% per year on average, a rate that underperforms approximately 66.64% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -6.10%, which underperforms approximately 69.44% of global competitors.
Next Steps
When considering PSP Swiss Property AG's dividend payments, investors should weigh the company's consistent history of dividend payments against the current payout ratio, which may raise concerns about sustainability. The company's profitability and growth metrics present a mixed picture, with strong profitability but underperforming growth rates compared to global competitors. As PSP Swiss Property AG prepares to distribute its latest dividend, investors should consider these factors in their overall assessment of the stock's potential as a long-term income investment. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover new opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
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- Don't Buy PSP Swiss Property AG (VTX:PSPN) For Its Next Dividend Without Doing These Checks
Apr 4, 2024
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that PSP Swiss Property AG (VTX:PSPN) is about to go ex-dividend in just three days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. This means that investors who purchase PSP Swiss Property's shares on or after the 8th of April will not receive the dividend, which will be paid on the 10th of April.
The company's next dividend payment will be CHF03.85 per share, and in the last 12 months, the company paid a total of CHF3.85 per share. Looking at the last 12 months of distributions, PSP Swiss Property has a trailing yield of approximately 3.2% on its current stock price of CHF0119.20. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. We need to see whether the dividend is covered by earnings and if it's growing.
See our latest analysis for PSP Swiss Property
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Its dividend payout ratio is 85% of profit, which means the company is paying out a majority of its earnings. The relatively limited profit reinvestment could slow the rate of future earnings growth. We'd be worried about the risk of a drop in earnings. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. Over the last year it paid out 63% of its free cash flow as dividends, within the usual range for most companies.
It's positive to see that PSP Swiss Property's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.SWX:PSPN Historic Dividend April 4th 2024
Have Earnings And Dividends Been Growing?
Companies with falling earnings are riskier for dividend shareholders. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. PSP Swiss Property's earnings per share have fallen at approximately 7.6% a year over the previous five years. Such a sharp decline casts doubt on the future sustainability of the dividend.
Story Continues
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the last 10 years, PSP Swiss Property has lifted its dividend by approximately 1.7% a year on average.
Final Takeaway
Is PSP Swiss Property an attractive dividend stock, or better left on the shelf? While earnings per share are shrinking, it's encouraging to see that at least PSP Swiss Property's dividend appears sustainable, with earnings and cashflow payout ratios that are within reasonable bounds. Bottom line: PSP Swiss Property has some unfortunate characteristics that we think could lead to sub-optimal outcomes for dividend investors.
With that in mind though, if the poor dividend characteristics of PSP Swiss Property don't faze you, it's worth being mindful of the risks involved with this business. Be aware that PSP Swiss Property is showing 2 warning signs in our investment analysis, and 1 of those is a bit concerning...
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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