Plazza AG (PLAN.SW) fair value

ACCE thesis

Plazza owns and develops a portfolio of Swiss commercial and residential properties, with its earnings driven mainly by rental income from long-let commercial tenants. The moat is the scarcity of prime, centrally located Swiss real estate, which is hard to replicate and supports high occupancy and pricing power. The near-term story rests on steady rental escalation and portfolio additions, though revenue growth of just 2.2% is modest and gives little reason to expect acceleration. An operating margin of 76.1% and a trailing P/E of 13.7 look attractive, but the forward P/E of 39.9 implies earnings are expected to fall sharply, so the first question is whether that drop reflects revaluation effects, financing costs or a one-off that the trailing numbers are not capturing. If that reconciliation holds up, the name merits a deeper look at the rent roll and debt maturity profile.