Ad-hoc | 28 August 2015 06:55
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Zug Estates Holding AG / Key word(s): Half Year Results
In the first six months of 2015, Zug Estates Group increased its property income by 4.3% compared with the first half of 2014 to CHF 19.1 million. At CHF 39.4 million, net income thus practically doubled. In the first half of 2015, Zug Estates posted an operating income before depreciation and revaluation of CHF 18.6 million. This represents a year-on-year increase of 0.7%. At the same time, property income rose 4.3% to CHF 19.1 million. Sales in the hotel & catering business unit rose slightly compared with the previous year. The Group’s operating expenses for the first half of the year were up 6.2% year-on-year, mainly due to higher maintenance expenditure and expenses associated with real estate transactions. In the first half of 2015, the Group invested CHF 22.2 million in the further development of its sites. In addition, the book value of the investment properties increased by CHF 32.8 million net as a result of the revaluation. Consequently, income from the revaluation of investment properties (net) tripled compared to the previous year’s figure of CHF 10.5 million. The main contributing factors here were the above-average quality of the locations and properties in the portfolio (high proportion of residential property), the continuous development and positioning of the Suurstoffi site as a preferred location for housing and business, and market-related factors. As a result of the revaluation, EBIT and net income were well above the previous year’s figures at CHF 49.5 million and CHF 39.4 million respectively. Net income excluding revaluation decreased by CHF 0.4 million to CHF 11.5 million (previous year: CHF 11.9 million) owing to the sale of a property and higher borrowing expenses. Without property transactions, net income excluding income from revaluation would have been slightly above the previous year’s figure. Far-reaching decisions on the future direction of the Group In the first half of 2015, important decisions were taken on the further development of the Suurstoffi and Zug city center sites:
Success in renting properties in line with the high degree of development momentum The second development phase of the Suurstoffi site, consisting of nine apartment buildings comprising 145 rented apartments and 11 owner-occupied apartments, was completed on schedule and handed over to the occupants. All apartments have been let, increasing the proportion of residential property within the portfolio to about 30%. The portfolio’s 6.4% vacancy rate as of June 30, 2015 (reference date) includes approximately 4’000 m² of commercial space earmarked for Lucerne University of Applied Sciences and Arts and leased from summer 2016. A further 2’000 m² of office space that was vacant on the balance sheet date has since been leased. For the remaining commercial space, negotiations with prospective tenants are at an advanced stage. During the course of 2016, we therefore expect to be able to report largely full occupancy for the main commercial premises. Confident outlook for the second half of 2015 In operating terms, we expect rental income in the real estate business unit to rise overall. However, the disposal of two properties and the lowering of the reference rate for apartment rents as of October 1, 2015 will reduce annual rental income by about CHF 1.9 million. The vacancy rate is expected to decline by the end of 2015. The carefully planned development of the Suurstoffi site will remain an important priority. In 2015, we expect overall investment in the real estate portfolio to total about CHF 50 million. In the hotel & catering segment, our assessment of the earnings outlook remains unchanged. For the year as a whole, we expect a slight increase in operating income before depreciation and revaluation. The surplus from the revaluation of investment properties (net) will increase net profit. End of ad hoc announcement +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=CJCFYBOCHH Document title: Marked increase in net income for Zug Estates 2015-08-28 News transmitted by EQS Schweiz AG. www.eqs.com – news archive: http://switzerland.eqs.com/de/News The issuer is responsible for the contents of the release. Information and Explaination of the Issuer to this News: The detailed report on the half-year can be found on our website www.zugestates.ch under Investor Relations/Reports.
We will be holding a
webcast in German
at
10:30
, which can be viewed on our website
www.zugestates.ch
.
Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212). |
| Language: | English | |
| Company: | Zug Estates Holding AG | |
| Industriestrasse 12 | ||
| 6300 Zug | ||
| Switzerland | ||
| Phone: | +41 41 729 10 10 | |
| E-mail: | ir@zugestates.ch | |
| Internet: | www.zugestates.ch | |
| ISIN: | CH0148052126, CH0148052118 | |
| Valor: | A1J0M6 | |
| Listed: | Regulated Unofficial Market in Stuttgart; Open Market in Frankfurt ; SIX | |
| End of News | EQS Group News-Service |
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| 389133 2015-08-28 |