Profit increase at Zug Estates
Zug Estates increased its net profit by CHF 44% to CHF 26.1 million in the first half of 2019. Real estate income, portfolio value and operating result also increased.
Real estate income increased by 6.3% to 26.7 million in the first half of 2019 compared to the same period last year (previous year: 25.2 million). Operating income increased by 4% to 36.7 million, according to Zug Estates.
The revaluation gain was 11.5 million (previous year: 3.5 million), resulting in EBIT of 32.8 million (previous year: 23.9 million) and a net profit of 26.1 million, upTP2T 43.51 (previous year: 18.2 million). Excluding the revaluations, the consolidated result reached 15.4 million, which isTP1.41T2 more than in the previous year.
In the first half of the year, Zug Estates invested 84.8 million in the further development of its sites, the majority of which went to Suurstoffi in Rotkreuz.
The market value of the portfolio increased by 4.7% to 1.61 billion in the first half of 2019. The vacancy rate increased to 3.2% as of the reporting date of June 30, 2019, due to the completion of additional commercial space (June 30, 2018: 1.9%, December 31, 2018: 2.9%), according to the real estate company.
In Suurstoffi, Zug Estates concluded longer-term commercial leases totaling almost 5,900 sqm and with an annual equivalent value of more than 1.4 million in the first half of the year. The top floor in the Arbo wooden high-rise (site 1) is leased to Burger Söhne AG, while the last two floors in the S22 wooden high-rise with a total of 2,950 sqm were leased on a long-term basis to the medical technology company Align Technology.
The first condominiums in the Aglaya garden tower are expected to be ready for occupancy in November; as of June 30, 92% of the apartments had been reserved or sold, according to Zug Estates. The real estate company adds that completion of the second stage is on schedule for the second quarter of 2020, with around 70% of the total 26,000 sqm of rental space already leased on a long-term basis.
For the full 2019 financial year, Zug Estates expects a marked increase in operating profit before depreciation, amortization and revaluation - in particular due to the first tranche of the expected proceeds from the sale of the Aglaya apartments. The Group result excluding revaluation gains is expected to be above the previous year's figure. (ah)
