Zug Estates Group: "Solid overall result".
While Zug Estates was able to further increase income in the real estate segment in the 2020 financial year, the hotel & catering segment saw a significant drop in sales due to the pandemic.
The 2020 financial year was also marked by the effects of the Covid 19 pandemic, but Zug Estates achieved a "solid overall result", according to the real estate company. For the 2020 financial year, the company reported a consolidated result of CHF 32.3 million - CHF 43.7 million lower than the previous year's result (2019: CHF 76.0 million), which had included significant positive revaluation effects as well as various special effects amounting to CHF 21.3 million.
Despite the further strengthening of the Real Estate segment, net income excluding revaluation and special effects was lower than in the previous year at CHF 25.9 million (previous year: CHF 31.4 million) due to the negative development of results in the Hotel & Catering segment. The full period effectiveness of rental contracts as well as individual first-time rentals increased rental income by 6.1 percent from CHF 54.5 million to CHF 57.8 million. This includes rent reductions of CHF 0.7 million in connection with the officially imposed lockdown to contain the Covid 19 pandemic. The pandemic-related sharp decline in the accommodation business led to a year-on-year drop in revenue of CHF 9.6 million or 57.8 percent to CHF 7.0 million.
The operating result before depreciation and revaluations was CHF 49.6 million, down 7.2 percent. Including revaluations, net profit amounted to CHF 32.3 million - down CHF 43.7 million (-57%) on the previous year's result of CHF 76.0 million. In the 2019 financial year, the real estate company was able to significantly increase its profit by CHF 21.3 million thanks to valuation successes and various special effects.
The market value of the portfolio increased by 1.5 from CHF 1.63 billion to CHF 1.65 billion.
In the Real Estate business area, Zug Estates Management expects rental income to continue to rise in 2021. This will be due to full-year rental income and rent increases from existing leases and individual new leases. Real estate expenses will be lower than in the previous year as a result of less renovation work in the Metalli. (bw)
