HIAG significantly increases earnings
HIAG Immobilien Holding increased its earnings before taxes and revaluations by 8.4 percent in the 2017 business year. Net profit increased by around 24 percent to CHF 57.5 million.
Property income received rose by 6.5% year-on-year to CHF 55.8 million (previous year: CHF 52.4 million). At CHF 56.1 million, annualized property income was up 3.5% on the previous year (CHF 54.2 million). The like-for-like increase, i.e. before the acquisition of the site in Meyrin and one-off effects, amounted to 4.7% compared to the same period of the previous year.
Revaluations amounting to 33.3 million (previous year: 20.0 million) and the sale of paper machine 9 in Biberist (7.1 million) "contributed positively to the result" and more than compensated for the loss of 4.3 million incurred by HIAG Data, which is currently being established, HIAG announced.
In the 2017 financial year, the company increased its net profit by 23.9% to CHF 57.5 million (previous year: CHF 46.4 million) and earnings per share (EPS) to CHF 7.15 (previous year: CHF 5.80). Profit on an EPRA (European Public Real Estate Association) basis increased by 7.6% to 33.1 million (previous year: 30.5 million). The after-tax return is estimated at 7.9 percent. The dividend is to be increased from CHF 3.60 in the previous year to CHF 3.80 per share.
Vacancy rate falls to 14.3 percent
In the past financial year, HIAG concluded several long-term rental agreements, such as the building lease agreement with Stadler Rail on the site in St. Margrethen with a term until at least 2081, the 20-year contract extension with Brugg Rohrsysteme in Kleindöttingen and long-term rental agreements with Media Markt, Dachser and Baoshida. This extended the remaining lease term from 5.2 to 7.9 years. In Lorzenpark in Cham, the vacancy rate in the existing building fell from 32.7% to 12.0%. Overall, the vacancy rate fell to 14.3% in the 2017 financial year (31.12.2016: 15.3%) or 14.4% on a like-for-like basis.
On the reporting date, HIAG's real estate portfolio consisted of 111 properties with a valuation of 1.28 billion. The net yield was stable at 4.3 percent. The "Uhlmann-Eyraud" site in Meyrin was acquired. HIAG now has two sites in Brunegg following the acquisition of the Sulser Logistik site in the first quarter of 2018. HIAG announced that both newly acquired sites will be managed under the existing portfolio until a development is foreseeable.
Development portfolio with 50 projects
The development portfolio comprises around 50 projects with around 603,000 sqm of usable space and an expected investment volume of around 1.7 billion. Of these, nine development projects with a usable area of around 33,200 sqm and an investment volume of 139 million are to be launched in the next three years.
Four projects will enter the construction phase this year: Migros and the Italian restaurant chain Luigia have been secured as long-term tenants on the site in Neuchâtel. In Niederhasli, the new development for Doka Switzerland can be realized once the planning zone has been lifted and Doka can thus be integrated as a tenant for another 15 years. In addition, the redevelopment of the central zone around Niederhasli railroad station will unlock a medium-term potential of over 300 apartments. In Wetzikon, a construction site for 16 rental apartments will be launched and in Biberist, the construction of a data center for HIAG Data will begin, now that buyers have also been found for paper machines 6 and 8.
