Quarterly report Q1 Q3

2017 Quarterly report Q1 Q3 Additional information Financial statements Overview

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3 Contents 4 Key figures 6 Q1 Q3 2017 report 10 Portfolio summary 17 Financial statements Charts/tables Due to roundings, certain numbers presented in this report may not add up precisely to the totals provided. All key figures and changes were calculated using the precise numbers and not the presented, rounded ones. English translation of German original This is an English translation of the German original. Only the German original is legally binding. Sustainability For environmental reasons, there is no printed version of this report. This report is available as PDF on www.psp.info/reports. 37 Additional information 54 Contacts and important dates 55 Customer care EPRA reporting PSP Swiss Property is a member of EPRA (European Public Real Estate Association). Domiciled in Brussels, EPRA was founded in 1999. It is a non-profit organisation promoting and supporting the European public real estate industry. We apply EPRA s Best Practices Recommendations in the disclosure of our performance measures and in sustainability reporting. Additional information Financial statements Overview www.psp.info Further publications and information are available on www.psp.info.

4 Key figures Key figures Key financial figures Unit 2016 Q3 2016 Q3 2017 Q1 Q3 2016 Q1 Q3 2017 +/ 1 Rental income CHF 1 000 276 316 69 358 67 908 207 711 204 272 1.7 % EPRA like-for-like change % 1.6 3.3 0.4 1.4 1.3 2 Net changes in fair value of real estate investments CHF 1 000 50 208 6 653 0 38 407 17 739 Income from property sales (freehold apartments) CHF 1 000 14 224 2 588 18 038 13 108 19 896 Income from property sales (investment properties) CHF 1 000 1 354 0 0 1 075 308 Total other income CHF 1 000 6 291 2 422 1 082 5 374 4 341 Net income CHF 1 000 134 867 37 819 70 630 102 772 165 138 60.7 % Net income excluding gains/losses on real estate investments 3 CHF 1 000 172 548 43 065 57 726 132 032 138 152 4.6 % Ebitda excluding gains/losses on real estate investments CHF 1 000 241 572 60 220 72 544 184 618 187 405 1.5 % Ebitda margin % 81.3 81.0 83.4 81.5 82.0 Total assets CHF 1 000 7 041 368 6 943 844 7 285 981 3.5 % Shareholdersʼ equity CHF 1 000 3 866 754 3 825 298 3 892 691 0.7 % Equity ratio % 54.9 55.1 53.4 Return on equity % 3.5 4.0 7.3 3.6 5.7 Interest-bearing debt CHF 1 000 2 248 436 2 178 438 2 510 896 11.7 % Interest-bearing debt in % of total assets % 31.9 31.4 34.5 4 Portfolio key figures Number of properties Number 161 161 158 Carrying value properties CHF 1 000 6 297 968 6 249 941 6 315 126 0.3 % Implied yield, gross 5 % 4.3 4.2 4.1 4.3 4.2 Implied yield, net 5 % 3.6 3.6 3.5 3.7 3.6 Vacancy rate (CHF) 5, 6 % 9.3 9.4 8.3 Number of sites and development properties Number 10 10 12 Carrying value sites and development properties CHF 1 000 595 885 633 704 639 088 7.3 % Employees End of period People 90 90 86 Full-time equivalents FTE 84 82 81 Per share figures Earnings per share (EPS) 7 CHF 2.94 0.82 1.54 2.24 3.60 60.7 % EPS excluding gains/losses on real estate investments 7 CHF 3.76 0.94 1.26 2.88 3.01 4.6 % Distribution per share CHF 3.35 8 n.a. n.a. n.a. n.a. Net asset value per share (NAV) 9 CHF 84.30 83.40 84.87 0.7 % NAV per share before deduction of deferred taxes 9 CHF 100.95 99.97 101.59 0.6 % Share price end of period CHF 88.00 92.50 89.20 1.4 % 1 Change to previous year s period 1 January to 30 September 2016 or carrying value as of 31 December 2016 as applicable. 2 Excl. property at Av. des Morgines 8/10 in Petit-Lancy: + 0.6 %. 3 See definition Net income excluding gains/losses on real estate investments on page 34, footnote 2. 4 LTV, excluding CHF 275 million of fixed-term deposits (made in relation to private placement and bond issue) would amount to 31.9 %. 5 For investment properties. 6 Equals the lost rental income in % of the potential rent, as per reporting date. 7 Based on average number of outstanding shares. 8 For the 2016 business year. Cash payment was made on 11 April 2017. 9 Based on number of outstanding shares.

Key figures 5 Overview Real estate portfolio Shareholders equity 6.5 6.6 6.7 6.9 7.0 8.0% 10.0% 8.5% 9.3% 8.3% 3.8 3.8 3.9 3.9 3.9 7.2% 4.6% 4.9% 3.5% 5.7% 2013 2014 2015 2016 Q3 2017 2013 2014 2015 2016 Q3 2017 Portfolio value in CHF billion Vacancy rate end of period in % Shareholders equity in CHF billion Return on equity in % Ebitda Net income components 238.2 232.7 241.6 184.6 187.4 81.8% 82.0% 81.3% 81.5% 82.0% 6.0 169.3 26.4 161.3 172.5 27.0 132.0 138.2 2014 2015 2016 Q1 3 2016 Q1 3 2017 Ebitda excl. gains/losses on real estate investments in CHF million Ebitda margin in % 37.7 29.3 2014 2015 2016 Q1 3 2016 Q1 3 2017 Net income excl. gains/losses on real estate investments in CHF million Contribution gains/losses on real estate investments in CHF million

6 Q1 Q3 2017 report Q1 Q3 2017 report In good locations, the office market seems to be stabilising. In the wake of an economic upswing, demand might pick up. Market environment Competition on the letting market for commercial space remains strong; thereby, location and quality of the properties are crucial for success. One positive aspect is the fact that the office market seems to be stabilising, at least in good locations, especially in Zurich s city centre. In Zurich West, we observe lively interest in modern office space. If the promising economic outlook for 2018 is correct, the demand for office space might accelerate even more. Interest rates still hardly moved from their historically low levels in Q3 2017 and fixed income investments remain unattractive. Consequently, institutional investors continue to look for qualitative real estate investments providing a positive, stable yield. Demand for the purchase of prime commercial properties is unlikely to decline in the foreseeable future. Letting market Office In Switzerland as a whole, there is still a lot of vacant office space. However, at least in our main market, Zurich, the pace of new constructions is decreasing slightly, except in Zurich North. Here, building activity continues and vacancies keep growing, while rents are declining moderately. Especially in peripheral regions, the reduction of vacancies is likely to take years. The situation is markedly better in economic centres. Central office locations in Zurich have been doing particularly well recently. The situation is stable in Basel. However, supply of office space will expand in the coming years due to a number of new construction projects. The demand for office space is relatively brisk, especially from the life-sciences, insurance and IT sectors. The most difficult market is Geneva. Here, demand remains stagnant. In addition, supply will expand due to new construction projects, especially in outlying districts. Furthermore, Geneva is still behind Zurich with regard to the consolidation of the financial sector. Consequently, the trend for rents in Geneva remains negative. Overall, we do not expect office rents to rise quickly. On the other hand, the signs of a pickup in demand in central locations are encouraging. It remains to be seen, however, whether this will lead to a sustainable market recovery. Retail The situation on the market for retail space remains tense and demand is subdued. Shopping tourism and online shopping keep pressure on rents. Central locations ( high street retail ) are more resilient. Most of our retail properties are located in this more stable market segment. Portfolio At the end of September 2017, our real estate portfolio included 158 office and commercial properties. In addition, we had twelve sites respectively projects. The carrying value of the total portfolio was CHF 7.0 billion.

Q1 Q3 2017 report 7 Overview Investment properties On 3 April 2017, we sold the property located at Eisenbahnstrasse 95 in Gwatt (Thun) for CHF 7.0 million. We did not purchase any investment properties in the reporting period. Along with regular smaller renovations we do in our investment portfolio, several of our buildings are going through an extensive modernisation process. We are currently focusing on Zurich s city centre, several properties in Zurich West as well as one property each in Geneva and Lausanne. In 2017 and 2018, we invest around CHF 100 million for renovations and conversions in our investment properties. Vacancy At the end of September 2017, the vacancy rate stood at 8.3 % (end of 2016: 9.3 %). 0.6 percentage points of these 8.3 % were due to ongoing renovations. Of the lease contracts maturing in 2017 (CHF 31.4 million), 90 % were renewed respectively extended at the end of September 2017. As at year-end 2017, we expect a vacancy rate of below 8.5 %. Sites and development properties The ongoing work at several projects proceeded as planned during the reporting period. The most important developments in short: The new construction Grosspeter Tower in Basel will be completed by the end of 2017. The current letting rate of 70 % is encouraging. The Ibis Style Business Hotel on the lower floors has been in operation since spring 2017. Furthermore, 10 of the 22 floors (all office space) have already been let. The Grosspeter Tower has an imposing exterior and meets the most stringent criteria with regard to sustainability and technology. A fully integrated photovoltaic installation will generate enough power to cover the basic electricity needs of the building. For that reason, the Grosspeter Tower recently received the Swiss Solar Award 2017. At the Rue du Marché project in Geneva, the comprehensive renovation will cost around CHF 30 million and last until 2020. With the international hotel group citizenm, we have a prominent anchor tenant. citizenm will open a 144-room boutique hotel following the renovation. The remaining space, which is partly let, will be dedicated to retail. Construction of the Residenza Parco Lago in Paradiso (Lugano) with 13 000 m 2 floor space (predominantly condominiums) started in March 2017. The investment total will amount to approximately CHF 80 million. Once completed, we will sell all units towards the end of 2019. The project Bahnhofquai/Bahnhofplatz in Zurich (total renovation, particularly infrastructure and technical installations) consists of several properties and will be carried out in three stages: Renovation work for stage 1 (Bahnhofplatz 1, Bahnhofquai 9/11/15) will cost approximately CHF 51 million. Work began in June 2017 and is likely to take around two years. Most of the space will be dedicated to offices and retail use. CBRE has been appointed as letting agent. For stage 2 (Waisenhausstrasse 2/4, Bahnhofquai 7) our chosen project was approved by the City Historical Building Committee in May 2017. The project includes a restaurant, like before the renovation. For the remaining space, both office and hotel options are being assessed. From todayʼs perspective, capital expenditure will amount to approximately CHF 33 million. We plan to submit the building permission request in spring 2018.

8 Q1 Q3 2017 report Stage 3 (Bahnhofplatz 2) is under review. Our cost estimate for this renovation is approximately CHF 12 million. There are still ongoing lease agreements. The Hardturmstrasse / Förrlibuckstrasse project (investment total approximately CHF 60 million) in Zurich West is also on track. This property will undergo a comprehensive renovation and will be upgraded to modern standards in terms of technical installations by the end of 2018. The building will allow flexible and individual office layouts. 60 % of the space is already let. Space demand is originated among others from telecommunications, medtech, IT and energy firms. In 2018, we will start the Orion project in Zurich West (a replacement building for two properties). High-quality, flexibly partitionable office areas are planned. The investment total will be approximately CHF 130 million. The Salmenpark II residential project in Rheinfelden was sold for CHF 27.6 million on 18 August 2017. For further information on the current projects see pages 50 to 51. Consolidated quarterly results (January to September 2017) During the reporting period, we achieved a net income (excluding gains/losses on real estate investments) 1 of CHF 138.2 million (Q1 Q3 2016: CHF 132.0 million). The increase resulted mainly from the higher income from condominium sales compared to the previous year s period; this income increased by CHF 6.8 million to CHF 19.9 million (Q1 Q3 2016: CHF 13.1 million). Thereof, the sale of the residential project Salmenpark II in Rheinfelden during Q3 2017 accounted for CHF 17.8 million. Rental income decreased by CHF 3.4 million, in particular because of the lease termination by the single tenant at the property located at Av. des Morgines 8/10 in Petit-Lancy. Earnings per share (excluding gains/losses on real estate investments) amounted to CHF 3.01 (Q1 Q3 2016: CHF 2.88); this EPS forms the basis for the distribution to shareholders. Operating expenses decreased by CHF 1.3 million to CHF 41.8 million (Q1 Q3 2016: CHF 43.1 million). Financial expenses decreased by CHF 1.3 million to CHF 19.0 million (Q1 Q3 2016: CHF 20.3 million). Net income (including gains/losses on real estate investments) was CHF 165.1 million (Q1 Q3 2016: CHF 102.8 million). The increase compared to the previous year s period was mainly caused by the semi-annual revaluation of the properties, which resulted in an overall appreciation of CHF 17.7 million (Q1 Q3 2016: depreciation of CHF 38.4 million), as well as by higher income from condominium/project sales. Furthermore, tax expenses decreased by CHF 2.1 million to CHF 20.6 million (Q1 Q3 2016: CHF 22.7 million). In this regard, it should be considered that the new lower corporate tax rate in the Canton of Vaud was applied in Q3 2017. This resulted in a positive effect (release of deferred taxes) in the amount of CHF 17.0 million. Thereof, CHF 12.9 million are related to revaluations of the property portfolio and do not impact the net result excluding gains/losses on real estate investments. Earnings per share (including gains/losses on real estate investments) amounted to CHF 3.60 (Q1 Q3 2016: CHF 2.24). At the end of September 2017, net asset value (NAV) per share was CHF 84.87 (end of 2016: CHF 84.30); in this regard, the dividend payment made on 11 April 2017 of CHF 3.35 per share must be taken into account. NAV before deducting deferred taxes amounted to CHF 101.59 (end of 2016: CHF 100.95). 1 See definition on page 34, note 2.

Q1 Q3 2017 report 9 Overview Capital management With total equity of CHF 3.893 billion (end of 2016: CHF 3.867 billion) corresponding to an equity ratio of 53.4 % (end of 2016: 54.9 %) the capital base remained strong at the end of September 2017. Interest-bearing debt amounted to CHF 2.511 billion, corresponding to 34.5 % of total assets (end of 2016: CHF 2.248 billion respectively 31.9 %). In order to lengthen the interest fixing period, a bond and the private placement were increased by overall CHF 225 million during the reporting period. In this context, fixed-term deposits were increased by CHF 175 million to CHF 275 million. Excluding these CHF 275 million, interest-bearing debt amounts to CHF 2.236 billion, corresponding to 31.9 % of total assets. At the end of September 2017, the passing average interest rate was 0.99 % (end of 2016: 1.28 %). The average fixed-interest period was 3.8 years (end of 2016: 4.3 years). No major committed bank loans will be due until 2019. At the end of September 2017, we had unused committed credit lines of CHF 730 million. PSP Swiss Property has ratings from two international rating agencies: a Senior Unsecured Rating A- (outlook stable) from Fitch and an A3 Issuer Rating (outlook stable) from Moody s. Subsequent events Outlook The outlook for Switzerland s economy as a whole is positive. Nevertheless, the property market will remain a challenge, especially in peripheral regions. In this competitive market, location and quality of the properties are key factors for rental success. Landlords that offer state-ofthe-art new buildings or comprehensively renovated and upgraded properties in good locations have a competitive advantage. This holds true for both office buildings and the retail sector. Our focus remains on the renovation and modernisation of selected properties, the further development of our sites and projects as well as the letting activities. Due to the continuing low interest rates and the resulting investment plight of institutional investors, competition on the acquisition market for top properties will remain fierce. For the 2017 business year, we expect an ebitda (excluding gains/losses on real estate investments) of more than CHF 240 million (2016: CHF 241.6 million). With regard to the vacancies at year-end 2017, we now expect a lower rate of below 8.5 % (previous forecast: 8.5 %; end of September 2017: 8.3 %). The Executive Board, November 2017 There were no material subsequent events.

10 Portfolio Portfolio summary Q3 2017 C 1 3 7 4 A D E 2 B 6 5 Areas 4 Sites 8 Projects Project pipeline 1 1 Basel, project Grosspeter Tower CHF 120 million 2 Lausanne, project Rue Saint-Martin CHF 13 million 3 Zurich, project Hardturmstrasse / Förrlibuckstrasse 4 Zurich, project Bahnhofquai/-platz CHF 60 million CHF 51 million (stage 1) CHF 45 million (stages 2 & 3) 5 Paradiso, Residenza Parco Lago CHF 80 million 6 Geneva, project Rue du Marché CHF 30 million 7 Zurich, project Orion CHF 130 million 1 Details see on pages 50 to 51. 2014 2015 2016 2017 2018 2019 2020 2021

Portfolio 11 Portfolio value by area 9% Sites and development properties 6% Other locations Overview 5% Lausanne 4% Bern 8% Basel 58% Zurich 11% Geneva Portfolio key figures A Zurich area B Geneva area Portfolio value CHF 4.0 billion Portfolio value CHF 0.7 billion Rental income CHF 122.1 million Rental income CHF 19.6 million Implied yield, net 3.5 % Vacancy rate 6.3 % Rentable area 501 816 m² Implied yield, net 2.7 % Vacancy rate 17.4 % Rentable area 84 401 m² C Basel area D Bern area Portfolio value CHF 0.5 billion Portfolio value CHF 0.3 billion Rental income CHF 18.6 million Rental income CHF 9.6 million Implied yield, net 3.9 % Vacancy rate 2.2 % Rentable area 92 298 m² Implied yield, net 3.8 % Vacancy rate 10.4 % Rentable area 57 821 m² E Lausanne area Other locations Portfolio value CHF 0.3 billion Portfolio value CHF 0.4 billion Rental income CHF 12.9 million Rental income CHF 14.6 million Implied yield, net 4.3 % Vacancy rate 6.7 % Rentable area 76 813 m² Implied yield, net 4.1 % Vacancy rate 15.8 % Rentable area 94 643 m²

12 Portfolio Rent by use 5% Parking 4% Gastronomy 11% Other 17% Retail 62% Office Rent by type of tenant 17% Other 20% Retail 6% Government 8% Gastronomy 19% Services 9% Financial services 9% Technology 12% Telecommunication Rent by largest tenants 11% Swisscom 69% Other 4% Google 2% Roche 2% Schweizer Post 2% Bär & Karrer 9% Next five largest tenants

Portfolio 13 Overview Dornacherstrasse 210, Basel

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Portfolio 15 Overview Laupenstrasse 18 / 18a, Bern

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17 Financial statements 18 Consolidated financial statements 18 Consolidated statement of profit or loss (July to September) 19 Consolidated statement of comprehensive income (July to September) 20 Consolidated statement of profit or loss (January to September) 21 Consolidated statement of comprehensive income (January to September) 22 Consolidated statement of financial position 23 Consolidated cash flow statement (January to September) 25 Consolidated statement of shareholders equity 26 Notes to the consolidated interim financial statements as of 30 September 2017 35 Review report Financial statements

18 Consolidated financial statements Consolidated statement of profit or loss (July to September) (in CHF 1 000) Q3 2016 Q3 2017 Note Rental income 69 358 67 908 Net changes in fair value of real estate investments 6 653 0 Income from property sales (inventories) 21 893 31 615 Expenses from sold properties (inventories) 19 305 13 577 Income from investments in associated companies 12 6 Capitalised own services 1 974 642 Other income 436 435 Total operating income 67 715 87 028 Real estate operating expenses 3 201 3 056 Real estate maintenance and renovation expenses 4 228 4 496 Personnel expenses 4 698 5 051 Fees to subcontractors 12 12 General and administrative expenses 2 009 1 868 Depreciation 182 218 Total operating expenses 14 330 14 701 Operating profit (ebit) 53 384 72 327 Financial income 33 84 Financial expenses 7 016 6 001 Profit before income taxes 46 401 66 410 Income taxes 8 582 4 220 1 Net income attributable to shareholders of PSP Swiss Property Ltd 37 819 70 630 Earnings per share in CHF (basic and diluted) 0.82 1.54 10 1 Incl. release of deferred taxes due to changes in tax rate of CHF 17.0 million. The notes are part of these condensed consolidated financial information.

Consolidated financial statements 19 Consolidated statement of comprehensive income (July to September) (in CHF 1 000) Q3 2016 Q3 2017 Note Net income attributable to shareholders of PSP Swiss Property Ltd 37 819 70 630 Items that may be reclassified subsequently to profit or loss: Changes in interest rate hedging 7660 4495 Attributable taxes 593 352 Items that will not be reclassified subsequently to profit or loss: Changes in pension schemes 96 508 Attributable taxes 21 112 Other comprehensive income 7 142 4 539 Comprehensive income attributable to shareholders of PSP Swiss Property Ltd 44 961 75 169 The notes are part of these condensed consolidated financial information. Financial statements

20 Consolidated financial statements Consolidated statement of profit or loss (January to September) (in CHF 1 000) Q1 Q3 2016 Q1 Q3 2017 Note Rental income 207 711 204 272 Net changes in fair value of real estate investments 38 407 17 739 4 Income from property sales (inventories) 72 383 43 250 Expenses from sold properties (inventories) 59 275 23 354 4 Income from other property sales 1 075 308 Income from investments in associated companies 10 7 Capitalised own services 3 056 1 941 4 Other income 2 308 2 393 Total operating income 188 861 246 556 Real estate operating expenses 9 089 8 828 Real estate maintenance and renovation expenses 11 341 12 553 Personnel expenses 15 402 14 575 Fees to subcontractors 37 36 General and administrative expenses 5 772 5 252 Impairment charge properties 913 0 4 Depreciation 544 600 Total operating expenses 43 098 41 844 Operating profit (ebit) 145 763 204 713 Financial income 104 234 5 Financial expenses 20 390 19 202 5 Profit before income taxes 125 477 185 744 Income taxes 22 706 20 606 Net income attributable to shareholders of PSP Swiss Property Ltd 102 772 165 138 Earnings per share in CHF (basic and diluted) 2.24 3.60 10 The notes are part of these condensed consolidated financial information.

Consolidated financial statements 21 Consolidated statement of comprehensive income (January to September) (in CHF 1 000) Q1 Q3 2016 Q1 Q3 2017 Note Net income attributable to shareholders of PSP Swiss Property Ltd 102 772 165 138 Items that may be reclassified subsequently to profit or loss: Changes in interest rate hedging 7149 14671 Attributable taxes 553 1142 Items that will not be reclassified subsequently to profit or loss: Changes in pension schemes 4070 1202 Attributable taxes 895 264 Other comprehensive income 3 422 14 467 Comprehensive income attributable to shareholders of PSP Swiss Property Ltd 106 193 179 605 The notes are part of these condensed consolidated financial information. Financial statements

22 Consolidated financial statements Consolidated statement of financial position (in CHF 1 000) 1 January 2016 31 December 2016 30 September 2017 Note Cash and cash equivalents 29 353 21 123 33 402 Accounts receivable 20 995 10 122 156 114 Deferrals 2 531 1 874 1 723 Derivative financial instruments 0 0 13 6/7 Sites and development properties for sale 73 669 51 525 49 080 4 Investment properties for sale 0 6 685 0 4 Total current assets 126 548 91 329 240 332 Tangible assets 356 334 303 Intangible assets 0 0 696 Derivative financial instruments 2 052 2 664 1 683 6/7 Accounts receivable 3 208 102 998 130 766 Financial investments 9 9 9 Investments in associated companies 45 54 62 Sites and development properties 427 701 544 360 590 008 4 Own-used properties 36 159 35 555 35 087 4 Investment properties 6 186 848 6 255 728 6 280 039 4 Deferred tax assets 8 997 8 335 6 997 Total non-current assets 6 665 374 6 950 038 7 045 650 Total assets 6 791 923 7 041 368 7 285 981 Accounts payable 36 263 23 806 19 110 Deferrals 55 649 52 678 33 811 Current tax liabilities 14 198 7 212 1 236 Bonds 249 951 0 0 Derivative financial instruments 1 010 2 811 1 564 6/7 Total current liabilities 357 070 86 508 55 720 Debt 1 300 000 1 280 000 1 320 000 8 Bonds 419 084 968 436 1 190 896 8 Derivative financial instruments 64 107 47 653 33 261 6/7 Pension liabilities 17 707 19 947 19 403 Deferred tax liabilities 763 482 772 070 774 011 Total non-current liabilities 2 564 380 3 088 106 3 337 571 Share capital 4 587 4 587 4 587 Capital reserves 586 079 503 490 503 479 Retained earnings 3 338 889 3 404 956 3 416 437 Revaluation reserves 59 082 46 279 31 812 Total shareholders equity 3 870 473 3 866 754 3 892 691 Total liabilities and shareholders equity 6 791 923 7 041 368 7 285 981 The notes are part of these condensed consolidated financial information.

Consolidated financial statements 23 Consolidated cash flow statement (January to September) (in CHF 1 000) Q1 Q3 2016 Q1 Q3 2017 Note Net income attributable to shareholders of PSP Swiss Property Ltd 102 772 165 138 Net changes in fair value of investment properties 38 407 17 739 4 Capitalised/released rent-free periods 945 2 934 4 Income from other property sales 1 075 308 Income from investments in associated companies 10 7 Capitalised own services 3 056 1 941 4 Impairment charge properties 913 0 4 Changes in pension liabilities recorded in the statement of profit or loss 479 658 Depreciation 544 600 Financial result 20 286 18 969 5 Income taxes 22 706 20 606 Changes in sites and development properties for sale 17 530 11 376 Changes in accounts receivable 9 466 4 003 Changes in accounts payable 9 301 4 705 Changes in deferrals (assets) 885 151 Changes in deferrals (liabilities) 7 975 15 432 Interest paid 25 314 24 461 Interest received 103 232 Dividends received 1 1 Taxes paid 28 525 24 710 Cash flow from operating activities 153 842 129 499 Financial statements Purchases of investment properties 145 203 0 4 Capital expenditures on investment properties 13 853 18 463 4 Capital expenditures on own-used properties 0 38 4 Capital expenditures on sites and development properties 62 698 39 328 4 Sales of properties 12 271 10 684 Payout of loans 465 3 910 Repayment of loans 1 137 1 143 Investment in fixed-term deposit 0 175 000 Investments in tangible assets 29 0 Investments in intangible assets 0 758 Cash flow from investing activities 208 839 225 670 (Continued on next page)

24 Consolidated financial statements (Continued from previous page) (in CHF 1 000) Q1 Q3 2016 Q1 Q3 2017 Note Purchases of own shares 172 178 Sales of own shares 168 167 Increase in financial debt 300 000 140 000 8 Repayment of financial debt 290 000 100 000 8 Issue of bonds 451 160 222 943 8 Issue expenses of bonds 1 986 833 Repayment of bond 250 000 0 Distribution to shareholders 151 342 153 649 11 Cash flow from financing activities 57 828 108 450 Changes in cash and cash equivalents 2 831 12 279 Cash and cash equivalents at beginning of period 29 353 21 123 Cash and cash equivalents at end of period 32 183 33 402 The notes are part of these condensed consolidated financial information.

Consolidated financial statements 25 Consolidated statement of shareholders equity (in CHF 1 000) Share capital Capital reserves Own shares Retained earnings Revaluation reserves Total shareholdersʼ equity 31 December 2015 4 587 586 079 0 3 338 889 59 082 3 870 473 Net income attributable to shareholders of PSP Swiss Property Ltd 102 772 102 772 Changes in interest rate hedging 7 149 7 149 Changes in pension schemes 4 070 4 070 Attributable taxes 342 342 Other comprehensive income 3 422 3 422 Comprehensive income attributable to shareholders of PSP Swiss Property Ltd 0 0 0 102 772 3 422 106 193 Distribution to shareholders 82 562 68 802 151 364 Purchase of own shares 172 172 Compensation in own shares 4 172 168 Elimination tax effect on profits on own shares in statutory accounts 0 0 30 September 2016 4 587 503 512 0 3 372 859 55 660 3 825 298 Net income attributable to shareholders of PSP Swiss Property Ltd 32 096 32 096 Changes in interest rate hedging 8 115 8 115 Changes in pension schemes 2 456 2 456 Attributable taxes 1 190 1 190 Other comprehensive income 9 381 9 381 Comprehensive income attributable to shareholders of PSP Swiss Property Ltd 0 0 0 32 096 9 381 41 477 Purchase of own shares 1 551 1 551 Compensation in own shares 22 1 551 1 529 Elimination tax effect on profits on own shares in statutory accounts 2 2 31 December 2016 4 587 503 490 0 3 404 956 46 279 3 866 754 Financial statements Net income attributable to shareholders of PSP Swiss Property Ltd 165 138 165 138 Changes in interest rate hedging 14 671 14 671 Changes in pension schemes 1 202 1 202 Attributable taxes 1 407 1 407 Other comprehensive income 14 467 14 467 Comprehensive income attributable to shareholders of PSP Swiss Property Ltd 0 0 0 165 138 14 467 179 605 Distribution to shareholders 153 657 153 657 Purchase of own shares 178 178 Compensation in own shares 11 178 167 30 September 2017 4 587 503 479 0 3 416 437 31 812 3 892 691 The notes are part of these condensed consolidated financial information.

26 Consolidated financial statements Notes to the consolidated interim financial statements as of 30 September 2017 1 General information PSP Swiss Property Ltd is a public company whose shares are traded on the Swiss Exchange (SIX Swiss Exchange). The registered office is located at Kolinplatz 2, 6300 Zug. PSP Swiss Property Group owns 158 office and commercial properties as well as four development sites and eight individual projects throughout Switzerland. The properties are mainly in prime locations in Zurich, Geneva, Basel, Bern and Lausanne. As of 30 September 2017, PSP Swiss Property had 86 employees, corresponding to 81 full-time equivalents (end of 2016: 90 respectively 84). The condensed consolidated interim financial statements as of 30 September 2017 are based on the interim accounts of the controlled individual subsidiaries, which have been prepared in accordance with uniform accounting policies and valuation principles. They were authorised for issue by the Board of Directors on 13 November 2017. 2 Summary of significant accounting policies The condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), published by the International Accounting Standards Board (IASB), and comply with Swiss law and the Directive on Financial Reporting (DFR) of the SIX Swiss Exchange. The condensed consolidated interim financial statements as of 30 September 2017 have been prepared in accordance with IAS 34 (Interim Financial Reporting). They do not include all the information and disclosure, which is required for the annual report and should therefore be read together with the financial reports for the 2016 business year. The properties are valued semi-annually (at the end of June and at the end of December) by an external, independent real estate valuation company. A systematic value analysis is made by PSP Swiss Property internally at the end of the first and third quarter in order to identify any substantial changes in value. If this analysis results in property-specific changes in value (more than 2 % compared to the total value of the property portfolio per quarter respectively more than CHF 5 million for individual properties), the properties involved are also valued by the external, independent valuation company at the end of the respective quarter. Thereby the change in fair value is recognised in the income statement. Properties newly acquired during the reporting period are valued externally at the end of the quarter. Thereby the change in fair value is recognised in the income statement. Investment properties respectively investment properties earmarked for sale, which are sold by the time the financial statements are drawn up, but for which the transfer of benefits and risks takes place only in a later reporting period, are basically valued at the contractually agreed sales price deducting sales costs. A corresponding change in fair value is recognised in the income statement.

Consolidated financial statements 27 Furthermore, the same consolidation, accounting and valuation principles have been applied for the interim financial statements as of 30 September 2017, as those which are described on pages 50 to 61 of the 2016 annual report of PSP Swiss Property. There were no changes in the consolidated companies compared to the annual report as of 31 December 2016. Apart from the holding company PSP Swiss Property Ltd, none of the Group companies is listed on a stock exchange. Since 1 January 2017, the following amended IFRS accounting standard has been used in the consolidated financial statements for the first time: Amendments to IAS 7 Statement of Cash Flows (Disclosure Initiative): The amendments require entities to provide disclosures about changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses). On initial application of the amendment, entities are not required to provide comparative information for preceding periods. PSP Swiss Property is not required to provide additional disclosures in its condensed interim consolidated financial statements, but will disclose additional information in its annual consolidated financial statements for the year ended 31 December 2017. Financial statements 3 Segment reporting Revenue includes operationally billed products and services. The following positions in the income statement are not included in revenue: net changes in fair value of the properties, expenses from sold properties (inventories), income from other property sales and income from participations in associated companies.

28 Consolidated financial statements Segment information Q1 Q3 2016 (in CHF 1 000) Real Estate Investments Property Management Holding Subtotal Eliminations Total Group Rental income 208 778 208 778 1 067 207 711 Net changes in fair value of real estate investments 38 407 38 407 38 407 Income from property sales (inventories) 72 383 72 383 72 383 Expenses from sold properties (inventories) 59 277 59 277 2 59 275 Income from other property sales 822 822 253 1 075 Income from investments in associated companies 10 10 10 Property management services 10 067 10 067 10 067 0 Capitalised own services 1 606 1 450 3 056 3 056 Other income 2 277 928 12 869 16 075 13 768 2 308 Total operating income 186 576 12 611 14 320 213 507 24 646 188 861 Real estate operating expenses 19 164 19 164 10 075 9 089 Real estate maintenance and renovation expenses 12 006 12 006 665 11 341 Personnel expenses 7 166 8 311 15 477 75 15 402 Fees to subcontractors 37 37 37 General and administrative expenses 13 904 2 879 2 820 19 603 13 832 5 772 Impairment charge properties 913 913 913 Depreciation 499 45 544 544 Total operating expenses 46 486 10 127 11 131 67 744 24 646 43 098 Operating profit (ebit) 140 090 2 484 3 189 145 763 145 763 Financial income 104 Financial expenses 20 390 Profit before income taxes 125 477 Income taxes 22 706 Net income attributable to shareholders of PSP Swiss Property Ltd 102 772 Revenue with third parties 282 371 282 371 282 371 Revenue with other segments 1 067 12 571 14 319 27 957 24 901 3 056 Total revenue 283 438 12 571 14 319 310 328 24 901 285 427 The Real Estate Investments Segment exclusively invests in commercial properties. As PSP Swiss Property is exclusively active in Switzerland, no geographical segment information is disclosed.

Consolidated financial statements 29 Segment information Q1 Q3 2017 (in CHF 1 000) Real Estate Investments Property Management Holding Subtotal Eliminations Total Group Rental income 205 328 205 328 1 056 204 272 Net changes in fair value of real estate investments 17 739 17 739 17 739 Income from property sales (inventories) 43 250 43 250 43 250 Expenses from sold properties (inventories) 23 906 23 906 552 23 354 Income from other property sales 168 168 140 308 Income from investments in associated companies 7 7 7 Property management services 10 417 10 417 10 417 0 Capitalised own services 1 941 1 941 1 941 Other income 2 341 884 13 640 16 865 14 472 2 393 Total operating income 244 921 13 249 13 640 271 810 25 253 246 556 Real estate operating expenses 19 245 19 245 10 417 8 828 Real estate maintenance and renovation expenses 13 161 13 161 607 12 553 Personnel expenses 7 628 7 022 14 650 75 14 575 Fees to subcontractors 36 36 36 General and administrative expenses 13 903 2 517 2 986 19 406 14 154 5 252 Depreciation 506 94 600 600 Total operating expenses 46 815 10 275 10 008 67 097 25 253 41 844 Financial statements Operating profit (ebit) 198 106 2 974 3 633 204 713 204 713 Financial income 234 Financial expenses 19 202 Profit before income taxes 185 744 Income taxes 20 606 Net income attributable to shareholders of PSP Swiss Property Ltd 165 138 Revenue with third parties 249 863 249 863 249 863 Revenue with other segments 1 056 13 190 13 640 27 886 25 945 1 941 Total revenue 250 919 13 190 13 640 277 749 25 945 251 804 The Real Estate Investments Segment exclusively invests in commercial properties. As PSP Swiss Property is exclusively active in Switzerland, no geographical segment information is disclosed.

30 Consolidated financial statements 4 Real estate investments (in CHF 1 000) Investment properties Investment properties for sale Ownused properties Sites and development properties at market value at historical value Development properties for sale IAS 40 IFRS 5 IAS 16 IAS 40 IAS 40 IAS 2 Total real estate investment Carrying value at 31 December 2015 6 186 848 0 36 159 420 777 6 924 73 669 6 724 377 Purchases 145 203 0 0 0 0 0 145 203 Capitalised/released rent-free periods 1 702 0 0 0 0 0 702 Transfers 84 073 6 670 0 77 404 7 266 7 265 0 Capital expenditures 22 731 0 62 85 738 300 47 376 156 208 Capitalised own services 2 634 0 0 917 22 400 3 973 Capitalised interest expenses 729 0 0 1 896 20 154 2 799 Sales 11 196 0 0 0 0 76 426 87 622 Net changes in fair value of real estate investments 7 850 15 n.a. 42 373 n.a. n.a. 50 208 Net changes in fair value of properties held at 1 January 2016 20452 0 n.a. 14754 n.a. n.a. 5698 Net changes in fair value of properties acquired, completed, transferred and sold 28302 15 n.a. 27619 n.a. n.a. 55906 Impairment charge n.a. n.a. 0 n.a. 0 913 913 Depreciation n.a. n.a. 665 n.a. n.a. n.a. 665 Carrying value at 31 December 2016 6 255 728 6 685 35 555 544 360 0 51 525 6 893 854 Historical cost 36 946 Accumulated depreciation 1 390 Carrying value, net 35 555 Capitalised/released rent-free periods 1 2 301 0 0 633 0 0 2 934 Transfers 8 589 0 0 0 0 8 589 0 Capital expenditures 18 463 0 38 39 328 0 11 978 69 806 Capitalised own services 775 0 0 958 0 208 1 941 Capitalised interest expenses 520 0 0 1 523 0 134 2 177 Sales 3 692 6 685 0 0 0 23 354 33 730 Net changes in fair value of real estate investments 14 534 0 n.a. 3 206 n.a. n.a. 17 739 Depreciation n.a. n.a. 506 n.a. n.a. n.a. 506 Carrying value at 30 September 2017 6 280 039 0 35 087 590 008 0 49 080 6 954 215 Historical cost 36 983 Accumulated depreciation 1 896 Carrying value, net 35 087 1 Straightlining of incentives given to tenants.

Consolidated financial statements 31 On 3 April 2017, the property located at Eisenbahnstrasse 95 in Gwatt (Thun) was sold for CHF 7.0 million. On 18 August 2017 the project Salmenpark II was sold for CHF 27.6 million. The revaluation of the properties resulted in an overall appreciation of CHF 17.7 million (thereof CHF 14.5 million were related to the investment portfolio and CHF 3.2 million to the project developments). Mid-2017, the portfolio s weighted average nominal discount rate stood at 3.73 % (year-end 2016: 3.82 %). The discount rate reduction by 9 basis points and successful new lettings had a positive effect on valuations, compensating the depreciations due to selective lower market rents and higher renovation expenses at various properties. The internal value analysis as at the end of Q3 2017 did not give any indications of further changes in values on the portfolio level or for individual properties, which would have passed the thresholds as defined in the chapter Accounting principles. As at the end of September 2017, payment obligations for current development and renovation work totalled CHF 53.6 million (end of 2016: CHF 49.9 million). 5 Financial result (in CHF 1 000) Q1 Q3 2016 Q1 Q3 2017 Financial income 103 232 Income from financial investments 1 1 Total financial income 104 234 Financial expenses 22 220 21 030 Capitalised interest expenses 2 060 2 177 Amortisation of issue expenses of bonds 229 350 Total financial expenses 20 390 19 202 Financial statements Total financial result 20 286 18 969 Overall financial expenses for financial instruments at amortised cost 22 449 21 380 Interest-bearing debt amounted to CHF 2.511 billion at the end of September 2017 (end of 2016: CHF 2.248 billion). Over the past four quarters the average interest rate was 1.23 % (previous year s period: 1.50 % respectively 1.42 % for the financial year 2016). At the end of September 2017, the average interest rate stood at 0.99 % (end of 2016: 1.28 %).

32 Consolidated financial statements 6 Fair value hierarchy Financial instruments, investment properties and other properties held at fair value are valued according to a three-level fair value hierarchy. The fair value definition is classified into three categories: level 1 regards instruments with price quotations in a liquid market. If there is no liquid market for a position and there are no official price quotations, the fair value is determined according to a recognised valuation method: at level 2, the valuation method is mainly based on input parameters with observable market data; at level 3, the valuation method is based on one or several input parameters without observable market data. The following table shows the market value (fair value) of these positions recognised in the balance sheet. Assets (in CHF 1 000) Level 1 Level 2 Level 3 Market value 31 December 2016 Properties (IAS 40 & IFRS 5) 0 0 6 806 773 6 806 773 Financial investments 0 0 9 9 Derivative financial instruments (hedging) 0 2 664 0 2 664 Total financial assets 0 2 664 6 806 782 6 809 446 Liabilities (in CHF 1 000) Derivative financial instruments (hedging) 0 50 464 0 50 464 Total financial liabilities 0 50 464 0 50 464 Assets (in CHF 1 000) Level 1 Level 2 Level 3 Market value 30 September 2017 Properties (IAS 40 & IFRS 5) 0 0 6 870 047 6 870 047 Financial investments 0 0 9 9 Derivative financial instruments (hedging) 0 1 696 0 1 696 Total financial assets 0 1 696 6 870 056 6 871 752 Liabilities (in CHF 1 000) Derivative financial instruments (hedging) 0 34 825 0 34 825 Total financial liabilities 0 34 825 0 34 825 During the reporting period, no positions were transferred in between the fair value levels (previous year: none). 7 Derivative financial instruments The fair value of derivative financial instruments (interest rate swaps) is calculated as the present value of future cash flows. The fair value is based on counterparties valuations. These valuations are checked by PSP Swiss Property with regard to their plausibility by means of Bloomberg valuations. The fair value of derivative financial instruments corresponds to their carrying value. During the reporting period, four interest rate payer swaps and four interest rate receiver swaps matured. One forward starting interest rate payer swap for CHF 50 million was newly signed (beginning in the year 2019 and maturing in 2027).

Consolidated financial statements 33 All interest rate swaps (pay fix/receive floating) fulfil the requirements for applying hedge accounting. The fixed interest rate basis for the interest rate swaps existing at the end of September 2017 was 0.9325 % to 1.5075 %; the variable interest rates are based on the CHF Libor. As in the previous year, the cash flow hedges were effective in the reporting period. 8 Debt (in CHF 1 000) 31 December 2016 30 September 2017 Long-term debt 1 280 000 1 320 000 Long-term bonds 968 436 1 190 896 Total interest-bearing debt 2 248 436 2 510 896 In the reporting period, fixed-term loans totalling CHF 140 million were drawn using existing credit lines and CHF 100 million were repaid. During the same period, an already existing private placement with maturity in 2021 was increased by nominal CHF 50 million and an already existing bond with maturity in 2023 was increased by nominal CHF 175 million. As in the previous year, no debt was outstanding at the end of September 2017, which was secured by mortgages on properties, and no debt was outstanding with an amortisation obligation. All financial key figures (financial covenants) set out in the existing credit agreements were adhered to in the reporting period. The most important financial covenants concern the consolidated equity ratio, the interest coverage and the debt ratio. At the respective balance sheet dates, the exposure of all debt with regard to changes in interest rates was as follows: Financial statements (in CHF 1 000) 31 December 2016 30 September 2017 < 6 months 80 000 120 000 6 to 12 months 0 0 1 to 5 years 1 519 372 1 569 502 > 5 years 649 064 821 394 Total interest-bearing debt 2 248 436 2 510 896 At the end of September 2017, the average fixed-interest period was 3.8 years (end of 2016: 4.3 years). 9 Share capital During the reporting period, a total of 1 956 own shares were purchased at an average price of CHF 91.10 per share totalling CHF 0.2 million and 1 956 own shares were sold at an average price of CHF 85.50 per share totalling CHF 0.2 million (previous year s period: 1 997 own shares purchased at an average price of CHF 86.18 and 1 997 own shares sold at an average price of CHF 84.25). Further information on changes in equity is shown on page 25.

34 Consolidated financial statements 10 Per share figures Earnings per share is calculated by dividing the reported net income by the average weighted number of shares, excluding own shares. Earnings per share excluding gains/losses on real estate investments is based on Net income excluding gains/losses on real estate investments 2. Q3 2016 Q3 2017 Q1 Q3 2016 Q1 Q3 2017 Net income in CHF 1 000 37 819 70 630 102 772 165 138 Net changes in fair value of real estate investments in CHF 1 000 6 653 0 38 407 17 739 Impairment charge properties in CHF 1 000 0 0 725 0 Income from property sales in CHF 1 000 0 0 822 168 Attributable taxes in CHF 1 000 1 407 12 904 1 9 050 9 079 Net income excl. gains/losses on real estate investments in CHF 1 000 43 065 57 726 132 032 138 152 Number of average outstanding shares 45 867 891 45 867 891 45 867 891 45 867 891 Earnings per share in CHF (basic and diluted) 0.82 1.54 2.24 3.60 Earnings per share excl. gains/losses on real estate investments in CHF (basic and diluted) 0.94 1.26 2.88 3.01 1 Release of deferred taxes from temporary valuation differences on real estate investments. Equity per share changed as follows: 31 December 2016 30 September 2017 Shareholdersʼ equity in CHF 1 000 3 866 754 3 892 691 Deferred taxes in CHF 1 000 763 735 767 014 Number of outstanding shares 45 867 891 45 867 891 Net asset value per share in CHF 1 84.30 84.87 Net asset value per share before deduction of deferred taxes in CHF 1 100.95 101.59 1 Based on number of outstanding shares. 11 Dividend payment Based on a resolution of the Annual General Meeting on 5 April 2017, a payment of an ordinary dividend of CHF 3.35 per share (totalling CHF 153.7 million) was made on 11 April 2017 (previous year: CHF 3.30 per share, thereof CHF 1.80 out of the capital contribution reserves and CHF 1.50 as ordinary dividend). 12 Subsequent events There were no material subsequent events. 2 Net income excluding gains/losses on real estate investments corresponds to the consolidated annual net income excluding net changes in fair value of the real estate investments, realised income on sales of investment properties and all of the related taxes. Income from the sale of properties which were developed by the Company itself is, however, included in the Net income excluding gains/losses on real estate investments.

Consolidated financial statements 35 Ernst & Young Ltd Maagplatz 1 P.O. Box CH-8010 Zurich Phone +41 58 286 31 11 Fax +41 58 286 30 04 www.ey.com/ch To the Board of Directors of PSP Swiss Property Ltd, Zug Zurich, 13 November 2017 Report on the review of interim condensed consolidated financial statements Introduction We have reviewed the interim condensed consolidated financial statements (income statement, statement of comprehensive income, balance sheet, cash flow statement, statement of changes in equity and notes, pages 18 to 34 and 38 to 53) of PSP Swiss Property Ltd for the period from 1 January to 30 September 2017. The review of comparable figures was performed by another auditor. The Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (DFR) of the SIX Swiss Exchange. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of Review We conducted our review in accordance with Swiss Auditing Standard 910 and with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Financial statements Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (DFR) of the SIX Swiss Exchange. Ernst & Young Ltd Daniel Zaugg Licensed audit expert (Auditor in charge) Tobias Meyer Licensed audit expert