Hiag increases earnings and result
Site developer Hiag increased its property income by around three percent to CHF 28.2 million in the first half of 2018, while net income rose by almost 37 percent to CHF 33.3 million.
Earnings per share rose from CHF 3.03 in the first half of 2017 to CHF 4.14 now, the real estate company reports. The sale and leaseback transactions of the sites of Sulser Logistics in Brunegg and from Rohner in Pratteln would have a positive impact of around 3.7 million on annualized rental income, it adds. This figure was 56.8 million, which is 1.1 percent more than as of December 31, 2017 (56.1 million).
According to the information provided, the revaluation effects of 26.7 million were significantly higher than in the previous year (10.8 million) - this was due to successful contract conclusions and development projects. The sale of paper and equipment machinery from the former paper mill in Biberist generated non-recurring income of 4.0 million (previous year: 6.8 million).
50 projects in portfolio
As of June 30, 2018, Hiag's development portfolio consisted of around 50 projects with a total of 603,000 sqm of usable space and an expected investment volume of around 1.8 billion. Four projects are under construction, and nine development projects with 40,000 sqm of usable space and an investment volume of around 170 million are expected to be launched in the next three years. The vacancy rate as of June 30 was 16.1 percent (Dec. 31, 2017: 14.3%). The main reason for the increase was the move-out of ABB in Klingnau. The weighted average remaining lease term (WALT) is 7.0 years (Dec. 31, 2017: 7.9 years).
Hiag intends to redevelop the retail site in Dietikon on the side facing the freeway after Lipo moves out in September 2020 and a long-term lease agreement is signed with furniture retailer XXXLutz. Also because long-term contracts have been concluded with Media Markt, the surrounding area is to be redesigned at the same time and the site is to be positioned in a higher quality for a further cycle of use.
In Meyrin, Hiag has found Regus as a further anchor tenant alongside HPE for the existing building, which is currently being renovated. In the process, a restaurant and a training pavilion for the Luigia restaurant concept will be built in the center of the site.
New projects in Windisch, Niederhasli and Cham
At the beginning of the second half of 2018, a 25-year lease agreement was signed with the Faro Foundation for the conversion of the former Swiss Army recruiting center in Windisch into a residential home, Hiag adds.
The groundbreaking ceremony for Doka Switzerland's new building in Niederhasli is scheduled for the second half of the year, once the planning zone has been lifted. The start of the development of around 370 apartments in Cham is then planned for the 2019 financial year.
IT infrastructure provider Hiag Data reports a loss of 7.7 million for the first half of the year (previous year: -1.7 million). The company is still in the investment phase, so the minus had been expected, Hiag writes in the statement. However, 14 contracts were signed in the first half of the year and the range of services was extended to the financial sector, it added. (ah)
