Hiag increases profit by over eleven percent in 2022
Hiag Immobilien Holding was able to increase its revaluation income and other key figures in the past financial year. Net profit reached CHF 99.4 million.
Real estate company Hiag achieved its best results in fiscal 2022 since its IPO in 2014, according to the company. Progress in development projects had led to higher revaluation gains. Furthermore, rental income increased with a lower vacancy rate.
Significant increase in rental income
Thus, Hiag reports rental income of CHF 67.7 million, which is 7.2% more than in 2021 (CHF 63.1 million). On an annualized basis, rental income even increased by 14.6 % to CHF 72.3 million (previous year: CHF 63.1 million). According to Hiag, new rentals (CHF 3.1 million), project completions (CHF 5.3 million) and index adjustments (CHF 0.9 million) were the main contributors to the increase. The vacancy rate as of January 1, 2023 was 6.4% (PY: 10.7 %) in the overall portfolio and 5.6% (PY: 9.6%) in the existing portfolio. The weighted average remaining lease term (WAULT) remained virtually stable at 8.1 years (previous year: 8.2 years).
Net profit climbs to 99.4 million
Earnings before interest, taxes, depreciation and amortization (EBITDA) remained almost stable at CHF 115.7 million (previous year: CHF 115.6 million) or, before revaluation effects, at CHF 51.4 million, below the previous year's figure of CHF 55.1 million. Net income increased by 11.4% to CHF 99.4 million (PY: CHF 89.3 million). Before changes in value and deferred taxes, it was CHF 38.3 million, compared to CHF 37.0 million in 2021. Hiag puts the return on equity at 10.4% (Dec. 31, 2021: 11.1%). Revaluation gains increased to CHF 64.3 million (PY: CHF 60.5 million). The value of the real estate portfolio increased from CHF 1.78 billion to CHF 1.93 billion. The dividend for 2022 is expected to increase to CHF 2.90 per share (PY: CHF 2.70) due to the good result.
58 projects in the pipeline
Hiag's development pipeline comprises 58 projects with an investment potential of CHF 3.1 billion. The real estate company puts the related annual rental potential at CHF 150 million and the potential sales proceeds from the promotion projects and from the sale of sub-properties at CHF 940 million.
The real estate company sold six non-strategic properties, generating gross proceeds (before taxes) of CHF 16 million, representing an average increase of 45% over the estimated fair value. Two residential properties in Niederwil (AG) and Zurich Altstetten were purchased. Furthermore, a preliminary purchase agreement for the site in Meyrin Grand-Puits (GE) was concluded with "a well-known Swiss company". In Wetzikon (ZH), Hiag has rounded off the Schönau site with a small plot of land.
Positive outlook for 2023
For 2023, Hiag expects a "good financial year overall". It expects a slight increase in earnings and higher revaluation gains from the major development projects.
The real estate company also announced that there will be a change in the Board of Directors: Christian Wiesendanger will not stand for re-election for personal reasons. His successor on the board will be the lawyer and capital market expert Micha Blattmann, founding partner of the financial boutique Vicenda Group. (ah)
