Hiag: Net profit increases by 60%
The revaluation is the main driver behind the increase in earnings, but excluding this effect, profit still improves by 6.6%. The dividend is to be increased by a similar amount.
The Basel-based real estate company Hiag increased its profit by CHF 60% to CHF 75.2 million in the 2024 financial year. This includes a revaluation of the overall portfolio by CHF 26.0 million (+1.3%). Excluding revaluation effects, the increase amounted to 6.6%. The dividend is now set to rise by CHF 6.5% to CHF 3.30 per share.
Real estate income increased by 7.5% to CHF 75.6 million. According to Hiag, this was largely due to the lower vacancy rate, which fell from 4.0 to a new low of 3.2% over the course of the year. Project completions and the associated new rental agreements also contributed to the increase.
Smaller properties sold above book value
The sale of condominiums contributed CHF 18.1 million to earnings (previous year: CHF 13.6 million). Six smaller residential and commercial properties were also sold in the second half of the year. The sales, with a balance sheet value of CHF 31.4 million, resulted in a profit of CHF 2.9 million. The annualized property income lost as a result of the sales amounts to around CHF 1.2 million. The following properties were sold:
- Aathal (ZH), Zürichstrasse 1-7
- Wetzikon (ZH), Zürichstrasse 130-133
- Wetzikon (ZH), Usterstrasse 128
- Wetzikon (ZH), Usterstrasse 88-104
- Wetzikon (ZH), Haldenstrasse 20
- Windisch (AG), Kunzwerk
Upgrades also due to project progress
The value of the real estate portfolio increased by CHF 3.3% to CHF 1.96 billion in the reporting period. This includes an increase in the value of the development portfolio of CHF 29.8 million, orTP3T 4.21, due to project progress. Tax effects also contributed to the net profit. As a result of the merger of three subsidiaries, cash-effective tax savings were achieved both in the reporting year and for the current year 2025 by utilizing existing loss carryforwards. With income taxes of CHF 1.6 million, the tax burden was significantly lower than in the previous year (CHF 11.1 million).
In the current year, the continued cautious mood in the industrial sector could dampen demand for commercial space, while geopolitical uncertainties and the economic policy of the new US government could also have a negative impact, according to Hiag. "Overall, however, the mood on the Swiss real estate market should continue to brighten," it says. Positive effects are mentioned: Continued immigration and further key interest rate cuts promised by the SNB. (aw)
