January 25, 2024

Diversifying the Wikifolio with PSP Swiss Property

Diversifying the Wikifolio with PSP Swiss Property

Our Obermatt Swiss Value Wikifolio gets more and more diversified with each addition. This time it’s all about real estate with PSP Swiss Property, a company that owns more than 160 office and commercial properties in prime locations across Switzerland, most of them located in major economic centers.

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A quick look at the Obermatt ranks tells us that the company is safely financed with a strong Safety rank. The shares are also more expensive than nearly 90% of the direct competitors’ ones, as the Value rank is rather low.

Companies working on improving their services and innovation are appreciated. PSP Swiss Property has an experienced management team committed to sustainability and innovation. They constantly explore new ways to create value for the tenants and investors, for example smart building systems, LEED certification for most buildings and sourcing of sustainable materials.

There are a couple of catches, though. PSP Swiss Property is safely financed and diversified, but it is overly exposed to the Swiss market, as its portfolio is heavily concentrated in Switzerland and thus dependent on the Swiss economy. Also, the company is reliant on rental income and the demand for office and commercial space in Switzerland drives its performance. Putting international competition, which is more present in Switzerland in the past years into the mix, these factors may have a negative impact on the future.

Possible Pro and Con points to consider
Strong Safety Rank means that they are safely financed
Innovation and sustainability among the main goals
Low Value Rank means that the company is currently overpriced ❌
The company is over-exposed to the Swiss market and reliant on rental income ❌

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