Hiag exceeds its own targets
Hiag Immobilien Holding reports a profit of CHF 89.3 million for the 2021 financial year. This is a record result, according to the company.
In the 2021 financial year, the company successfully continued its growth course and significantly exceeded its targets, Hiag Immobilien Holding announced when presenting its annual results. The dividend is to increase to CHF 2.70/share (previous year: CHF 2.30).
Annualized rental income had increased by 5.1% to CHF 63.1 million (previous year: 60.0 million), and rental income collected had increased by 5.7% to 63.1 million (previous year: 59.7 million). The rent reductions in connection with the Corona pandemic amounted to 0.1m.
Earnings before interest and taxes (Ebit) reportedly increased from 69.9 million to 115.1 million, or to 54.6 million (previous year: 42.9 million) before revaluations. Net profit increased by 61.8% to 89.3 million (previous year: 55.2 million). Before revaluations and deferred taxes, net profit was 37.0 million compared to 33.4 million in the previous year.
High revaluation gains
60.5 million, revaluation gains in the reporting year were more than twice as high as in the previous year ('27.0 million). Return on equity increased fromTP2T 7.71 toTP2T 11.11, or toTP2T 4.981 (previous year:TP2T 4.651) before revaluations and deferred taxes. The average remaining lease term (WAULT) is 8.2 years (Dec. 31, 2020: 7.9 years).
The vacancy rate in the overall portfolio fell from 13.2% to 10.7% despite the sale of fully leased properties, Hiag adds. The vacancy rate in the existing portfolio decreased from 13.0% to 9.6%. Increasing demand for high-quality logistics and commercial space was recorded, and the company was able to realize follow-up leases at several locations, in some cases with significant increases in rental income, the company says.
Pipeline is worth almost 3 billion
The project pipeline currently comprises more than 60 projects with an investment potential of 2.98 billion, Hiag adds. The potential realizable floor space is 810,000 sqm, and the share of potential residential units is 3,200. The potential rental income is around 167 million annually, and the expected sales revenue from promotion properties (planned/estimated over the next 15 years) is 580 million.
Hiag generated total proceeds of 16.5 million from the sale of real estate assets in the reporting period (previous year: 4.9 million). This was mainly due to the ongoing divestment program of non-strategic real estate, the company said. During the reporting period, properties with a total fair value of 62.4 million were sold (previous year: 27.1 million), it said. At the same time, Hiag purchased properties with a fair value of 39.7 million (previous year: 9.1 million) and acquired one property in a share deal in the amount of 53.0 million. The real estate company writes that it still plans to purchase properties and residential land that will allow for the rapid realization and marketing of condominiums. In return, non-strategic properties are to be sold.
For the financial year 2022, Hiag expects a stable earnings situation in the long term and continuous profit contributions from all business segments. With the completion of fully leased construction projects and expected leasing successes, rental income should continue to increase, and thanks to progress in major development projects, revaluation gains are expected. In addition, initial prepayments from the sale of promotion projects as well as further disposals of non-strategic real estate should contribute positively to the result, the real estate company forecasts. (ah)
