Zug Estates (ZUGN) investor relations material

Executive summary

• Achieved a strong annual result with operational improvements in both real estate and hotel & catering segments, leading to significant increases in net income both including and excluding revaluation and special effects.

• Real estate segment saw encouraging rental trends, low vacancy rates, and substantial revaluation gains due to high demand for attractive properties.

• Hotel & catering segment broadened its customer base, increasing revenue and profitability, and received top sustainability certifications.

Financial highlights

• Property income rose 3.4% year-over-year to CHF 71.6 million, driven by an almost fully let portfolio.

• Revaluation gain surged 110.8% to CHF 52.2 million, about 2.8% of portfolio value.

• Operating income increased 3.0% to CHF 91.5 million; net income excluding revaluation and special effects up 6.3% to CHF 39.2 million.

• Net income including revaluation and special effects jumped 45.1% to CHF 85.2 million.

• Hotel & catering segment revenue and gross operating profit continued to improve, with accommodation and catering as main contributors.

Outlook and guidance

• For 2026, property income may slightly decrease due to lower reference interest rates, but lower property expenses are expected to offset this.

• Revenues projected to remain stable; hotel & catering segment may see slightly lower gross operating profit due to a marginally higher cost base.

• Net income excluding revaluation and special effects expected to remain at 2025 levels, assuming favorable interest rates.

• Proposed dividend increase of 4.3% to CHF 49.00 per Series B registered share.