Hiag achieves record result in the first half of 2022
Hiag increased its net profit by 33.7 % to CHF 56.1 million in the 1st half of the year. Before revaluations, profit increased by as much as 15.7% to CHF 14.8 million.
The half-year result including revaluation gains is the best since the IPO on the SIX Swiss Exchange. Hiag attributes the significant increase in revaluation gains from CHF 32.2 million to CHF 42.3 million mainly to its own management services (including reduction of vacancies, rental extensions and rent increases as well as project progress at development properties). However, the reduction of market discount rates also had an impact, the company says. Rental income grew by 5.8%, while the vacancy rate decreased from 10.7 to 6.9%. The completion of fully leased construction projects as well as new and follow-on leases contributed to the vacancy reduction.
Projects for 3 billion in the pipeline
As of July 1, Hiag's development pipeline included 61 projects with an expected total investment volume of CHF 3.07 billion and an annual rental income potential of around CHF 162 million, as well as potential sales revenues from promotion projects of around CHF 715 million.
Acquisitions for 13.3 million
Hiag sold non-strategic real estate with a book value of CHF 0.7 million (H1 2021: 2.0 million), and acquired a property with a book value of CHF 13.3 million. In the previous year, there had been acquisitions for CHF 35.0 million. At the half-year point, the development pipeline included a property held for sale with a total of 52 residential units (Chama Columbus) with ongoing investments of CHF 3.9 million (H1 2021: 1.3 million). As of June 30, 2022, the first two notarizations took place with recognized sales of CHF 2.3 million, resulting in an earnings contribution of CHF 0.8 million.
Portfolio approaches the 2 billion threshold
The value of the real estate portfolio increased by 4.7% to CHF 1.87 billion as a result of investments and revaluation gains and taking into account strategic transactions. The average interest rate for financial liabilities remained virtually unchanged in the 1st half of the year at 0.79% (December 31, 2021: 0.78%).
Revaluation gains also expected in H2
For the year as a whole, Hiag continues to expect a good result "subject to a significant deterioration in overall economic conditions". A further increase in rental income is expected in the second half of the year. Vacancy rates will be at a similar level compared to the first half of 2022. In addition, progress in major development projects should enable further revaluation gains. (aw)
