Hiag increases profit and raises dividend

According to Hiag, the property income received increased by 4.3% to 58.2 million compared to the previous year (previous year: 55.8 million). In a like-for-like comparison, i.e. before acquisitions, the increase compared to the same period of the previous year had amounted to 0.7%. Annualized property income reportedly increased byTP8.6% to60.9 million (previous year:56.1 million).

Hiag also reports that revaluations made a substantial contribution to the good result. They amounted to 76.4 million, compared to 33.3 million in the previous year. The main reasons for the increase were new, long-term contracts, acquisitions and development successes. The sale of the last paper machines of Papieri in Biberist contributed 4.1 million to the result.

Real estate portfolio worth 1.49 billion

At the end of 2018, Hiag's real estate portfolio consisted of 114 properties with a valuation of 1.49 billion. The EPRA net yield was reportedly 3.8% (Dec. 31, 2017: 4.1%). The vacancy rate including development properties was 14.3% in 2018, the same as the previous year. The weighted average remaining lease term increased from 7.9 to 9.7 years in 2018, helped by the long-term building lease agreement with Stadler Rail in St. Margrethen and the sale-and-lease-back transactions with long-term triple-net leases in Brunegg, Goldach and Pratteln, as well as the re-letting of the former recruitment center in Windisch, among other factors, Hiag said.

At the end of 2018, the development portfolio comprised around 50 projects with a total of 639,000 sqm of usable space and an expected investment volume totaling 1.8 billion. Of these, seven development projects with a usable floor space of around 40,000 sqm and an investment volume of around 93 million are to be launched in the next three years.

Record result despite value adjustments at Hiag Data

At Hiag Data, there were impairment losses of 16.5 million and the contribution to earnings was negative at 39.1 million (previous year: 4.3 million). Nevertheless, Hiag achieved another record result in fiscal 2018. Profit increased by 5.9% to 60.9 million (previous year: 57.5 million). Earnings per share increased by 6.3% to CHF 7.60 (previous year: 7.15). Earnings on an EPRA (European Public Real Estate Association) basis amounted to 34.2 million compared with 37.4 million in the previous year.

Against the background of the positive development and the good result with an after-tax return of 8.0%, the Board of Directors will propose a dividend increase to the Annual General Meeting on April 11 this year, the statement continues. The payout is to increase by 2.6% or 10 centimes to CHF 3.90 per share. For the 2019 financial year, Hiag expects a further increase in rental income. (ah)