Hiag Immobilien (HIAG) H1 2024 earnings summary

Executive summary

• Net income rose 63.5% year-over-year to CHF 36.2m, driven by revaluation gains, strong property sales, and higher property income.

• Property income increased 5.3% to CHF 37.1m, with like-for-like growth of 9.8% and record-low vacancy rate of 3.5%.

• Three major development projects completed; robust project pipeline with significant investments planned.

• High equity ratio of 53.6% and net LTV of 39.5% support a solid balance sheet.

• Promising outlook for 2024, supported by strong demand, capital recycling, and sustainability progress.

Financial highlights

• EBITDA increased 32.3% to CHF 46.0m; EBIT up 32.6% to CHF 45.7m year-over-year.

• Revaluation gains of CHF 11.6m versus a loss of CHF 7.0m in H1 2023.

• Net profit from condominium sales more than doubled to CHF 11.1m.

• Cash flow from operating activities surged to CHF 54.2m (H1 2023: CHF 10.9m).

• Investment property portfolio grew 2.7% to CHF 1.95bn; gross yield on yielding properties at 5.6%.

Outlook and guidance

• Targeting 6–7% increase in collected income for 2024; YE vacancy rate below 4%.

• Expects further easing of financing costs and positive revaluations from developments and sales.

• Transaction market activity picking up; individual property sales expected in H2 2024.

• Ongoing housing shortage and resilient Swiss economy support demand for projects.

• Continued divestment of non-strategic assets and ambitious sustainability agenda.