Zug Estates: Income declines, result remains stable
In 2016, the Zug Estates Group achieved a consolidated result excluding revaluation gains of CHF 24 million, on a par with the previous year. However, other key figures declined.
For Zug Estates, 2016 was a year of consolidation. The real estate group generated operating income of CHF 61.2 million, down 2.7 percent on the previous year. Despite the sale of two large properties in the previous year, real estate income rose by 2.3 percent to 40.1 million.
Due to the lower net revaluation gain on investment properties, EBIT of 63.8 million and net income of 48.4 million were below the corresponding prior-year figures. Net income excluding revaluation gains amounted to 24 million compared to 24.1 million in the previous year.
Significant increase in earnings expected for 2018
In 2016, Zug Estates invested a total of 76.2 million in the further development, expansion and consolidation of its sites, in particular Suurstoffi in Risch Rotkreuz. The balance sheet value of the entire portfolio at the end of the year was 1.2 billion, almost nine percent more than in the previous year. The market value of the entire portfolio came to just under 1.3 billion (previous year: 1.2 billion). In total, specific development projects worth around 440 million are under construction or in planning at Suurstoffi. These projects will lead to a significant increase in earnings from 2018 onwards, according to Zug Estates.
For 2017, Zug Estates expects the operating result before depreciation and revaluation to be on a par with the previous year. The Group also anticipates that the net revaluation result on investment properties and thus the consolidated result will be lower than in the previous year. The Group result excluding revaluation gains is expected to be higher than in the previous year.
