HIAG closes successful first business year after IPO
In its first business year after going public, HIAG Immobilien Holding AG was able to increase its corporate result by 18 percent to CHF 59.5 million. A dividend payment per share of CHF 3.50 (previous year: 3.30) will be proposed to the upcoming Annual General Meeting.
"Our development portfolio comprises around 50 projects with approximately 679,000 sqm of usable space and an expected investment volume of around CHF 1.9 billion" Martin Durchschlag, CEO HIAG Immobilien Holding AG
Rental income received by HIAG increased by 5.2 percent year-on-year to CHF 51.2 (2014: 48.7) million and annualized rental income by 3.2 percent to CHF 51.4 (49.8) million. At 31.5 million, revaluation effects were above the previous year's figure of 28.7 million.
In the existing portfolio, the average weighted discount rate decreased by 11 basis points to 4.66 percent and in the portfolio as a whole by 28 basis points to 4.35 percent, corresponding to around one-third of the total revaluation effects in the financial year. As of December 31, 2015, HIAG's real estate portfolio had expanded to 1.22 billion and comprised 115 properties as of the reporting date. The net yield in the existing portfolio was kept stable at 5.4 percent.
Vacancy rate significantly reduced
HIAG was able to reduce the vacancy rate to 16.0 percent at the end of 2015 (December 31, 2014: 18.0%). The reduction corresponds to around 60 basis points in the existing portfolio (to 11.1% or like-for-like 10.0%). During the reporting period, HIAG Immobilien Holding AG concluded lease agreements with Tesla Motors in Cham (ZG), among others. The company opened its store and service center for Central Switzerland there. In addition, Dunkin' Donuts can now be found in the Spinnerei Aathal and will supply its stores throughout Switzerland with baked goods from there in the future.
New office building in Meyrin for Hewlett Packard companies
At the same time, HIAG was able to expand its development portfolio in 2015 through the acquisitions of the Swissmetal site in Dornach (SO) and the consolidation of the site in Meyrin (GE). As of the reporting date, four projects were under construction: In Meyrin, approximately 8,000 sqm of office space is being built for the EMEA headquarters of Hewlett Packard Enterprise and HP Inc. In Bremgarten AG, around 4,900 sqm of new industrial space and approximately 2,500 sqm of office space are being built for Jeld-Wen, the world leader in the door market. In Windisch (AG), the Feinspinnerei project with 29 condominium apartments on the Reuss River is being driven forward. In Baar (ZG), the "The Cloud" project with 99 condominium apartments is nearing completion. A total of 53 units were sold here in the 2015 financial year.
Development pipeline well filled
"Our development portfolio comprises around 50 projects with approximately 679,000 sqm of usable space and an expected investment volume of around CHF 1.9 billion. Of these, nine development projects with a usable floor space of approximately 37,000 sqm and an investment volume of around 83 million are to be initiated in the next three years," announced HIAG CEO Martin Durchschlag at the presentation of the business figures at the Zurich Stock Exchange. For the current business year, HIAG's focus is on organic growth in the portfolio, in which a further increase in property income is targeted, said Durchschlag. (mr)
