Hiag slips into the red

The loss of CHF 43.4 million (previous year: +33.3 million) is characterized by extraordinary events, according to a Hiag statement. The development of a multicloud platform by the subsidiary Hiag Data, which has since been discontinued, had burdened the result with 22.4 million, and the Bankruptcy of the so far third largest tenant Rohner in Pratteln leads to follow-up costs of 45 million for write-downs and provisions.

These are earmarked, among other things, for the dismantling of the production infrastructure and the remediation of the site in Pratteln. So far, no new tenant has been found, so it is expected that the company will have to bear the costs of dismantling and restoring the site to a chemical-free state itself.

Real estate income increases

In contrast, real estate development developed positively in the first half of the year, Hiag said. Rental income increased by 7.7% to 30.4 million. However, the annualized property income of 60.0 million is 1.4% lower than the comparable figure of 60.9 million at the end of 2018 due to the bankruptcy of Rohner and despite the completion of various development projects, the company further informs.

The vacancy rate reportedly remained stable at 14.4% as of June 30, 2019. The remaining lease term (WALT) is from 9.5 years (Dec. 31, 2018: 9.7 years). As of the end of June, the total portfolio consisted of 115 properties with a valuation of approximately 1.51 billion (Dec. 31, 2018: 1.49 billion).

Revaluation effects were negative at -26.6 million, mainly due to the bankruptcy of Rohner, compared with +26.7 million in the prior-year period.

The development portfolio currently consists of around 50 projects with a total floor space of 643,000 sqm. According to Hiag, the expected investment volume is around 1.9 billion.

Seven projects are already under construction, he said, and seven further development projects with a usable floor space of around 60,000 sqm and an investment volume of around 170 million are to be launched in the next three years.

BoD proposes waiver of dividend

For the full fiscal year, Hiag expects a write-down of assets of up to 42 million from the Already announced restructuring of Hiag Data. The follow-up costs from the Rohner bankruptcy would also "leave significant traces in fiscal 2019, especially in real estate income, the change in value from revaluation of real estate investments and in real estate operating costs," Hiag said.

The Board of Directors intends to propose to the Annual General Meeting on April 23, 2020, to waive the payment of a dividend for the financial year 2019. (ah)