Swiss real estate group Plazza AG reported a 67% year-on-year increase in net profit to CHF 42.2 million for the first half of 2026, as higher property revaluations more than offset a decline in operating earnings.
The company’s property income rose 2.5% to CHF 20.2 million, supported by contributions from the CHF 29.3 million acquisition of a portfolio in Affoltern am Albis in June 2025. Within the existing portfolio, stronger performance in Crissier offset a temporary decline at the Tiergarten property in Zurich, where renovation work reduced rental income. The vacancy rate at Tiergarten increased to 7.4% from 6.0% at year-end 2025, while Crissier secured a new lease for approximately 2,000 square meters with a co-living operator, with fit-outs expected to complete by early summer 2027.
Operating earnings before depreciation and revaluations fell 2.5% to CHF 15.4 million, reflecting higher maintenance costs tied to the Tiergarten renovation. Excluding revaluations, net profit declined 3% to CHF 11.8 million.
The surge in net profit was driven by a more than doubling of revaluation gains to CHF 40 million, attributed to improved rental income expectations and a market-driven reduction in discount rates. The total portfolio value rose to CHF 1.36 billion as of mid-2026, reflecting both acquisitions and revaluation.
Plazza maintained its full-year 2026 outlook, reiterating guidance for operating earnings before depreciation and revaluations to remain in line with 2025 levels. The company expects further revaluation gains in the second half, contingent on capital and transaction market conditions and progress on development projects. It also reaffirmed its mid-term target for net rental income to exceed CHF 55 million within three to five years, supported by a robust development pipeline.
