Hiag: Group profit climbs to 41.9 million
Hiag Immobilien Holding reports a consolidated net profit of CHF 41.9 million for the first half of 2021, compared to CHF 22.1 million in the previous year. This is the best half-year result since the IPO on the Swiss stock exchange in May 2014.
Hiag Immobilien Holding reports that annualized rental income increased by 9.4% to CHF 65.7 million (December 31, 2020: 60.0 million). Rental income collected was 30.6 million, up 4.0% year-on-year (H1 2020: 29.5 million). Net income increased from 22.1 to 41.9 million, and earnings per share (EPS) reached CHF 5.04 (H1 2020: CHF 2.76). Profit before revaluations and deferred taxes amounted to 14.0 million compared to 8.3 million in the same period of the previous year.
The positive effect from revaluations reached 32.2 million (H1 2020: 17.7 million); this was mainly due to three property acquisitions as well as new contract signings and progress on development projects, Hiag said. At the end of June 2021, the total portfolio consisted of 118 properties with a portfolio value of 1.78 billion (December 31, 2020: 1.64 billion). The weighted average discount rate was 3.64%, slightly lower than at the end of 2020 (3.73%).
Vacancy rate decreases
The vacancy rate across the portfolio as a whole decreased by 2.4 percentage points to 10.8% and in the existing portfolio from 13.0% to 9.7%. The net return on the existing portfolio was 3.7%. The weighted average remaining lease term (WAULT) is 8.1 years (December 31, 2020: 7.9 years). Some tenants in the hospitality and leisure sectors particularly affected by the lockdown have been granted rent reductions totaling 0.2 million, Hiag further reports.
At the end of June 2021, the development portfolio comprises 60 projects with a usable floor space of around 756,000 sqm. In the next three to four years, twelve development projects with a usable floor space of 102,000 sqm and an expected investment volume of around 340 million are planned. After completion and full occupancy, these projects are expected to generate annualized property income of around 20 million and sales proceeds from promotion projects of 72 million.
In the second half of 2021, Hiag aims to increase rental income by 3%, increase annualized rental income by 9% year-on-year and further reduce vacancy in the existing portfolio. There is potential for positive revaluation effects at various locations due to significant progress in development projects, the real estate company added. In addition, properties not in line with the strategy are to be sold as part of the portfolio optimization. (ah)
