Zug Estates increases result and earnings
In the 2017 financial year, Zug Estates Group increased its consolidated net income excluding revaluation gains by 8.7 percent to CHF 26.1 million. Real estate income increased by 1.8 million or 4.6 percent to 41.9 million.
In addition to rental income, the market value of the portfolio also increased from 1.29 billion to 1.41 billion (+9.1%). The vacancy rate of 1.5 percent decreased by 0.3 percentage points compared with the previous year. 110 million was invested in the expansion of the portfolio in the reporting year. Added to this are expenses for the Aglaya promotion property amounting to 22.3 million. According to Zug Estates, development projects worth 450 million are currently under construction. Three quarters of this future rental space has already been secured with long-term contracts.
Operating profit before depreciation, amortization and revaluation increased by 2.4 percent to 39.4 million. Due to revaluations (net) and the completion of a further construction phase at Suurstoffi, the balance sheet value of investment properties increased by 137.9 million. Income from revaluation of investment properties (net) decreased from 28.1 million to 8.7 million compared with the previous year. According to the real estate company, this was due to "the above-average location and property qualities of the portfolio with a high proportion of residential properties and the continuous further development and positioning of the Suurstoffi site as a preferred residential and business location".
EBIT and net income were down year-on-year at 45.7 million and 34.4 million respectively due to the lower revaluation gain. However, net income excluding revaluation gains amounted to 26.1 million, 2.1 million higher than in the previous year.
For the 2018 financial year, Zug Estates expects a slightly better operating result before depreciation and revaluation. The consolidated result excluding revaluation gains is expected to be higher than in the previous year.
