Hiag Immobilien (HIAG) H2 2023 earnings summary

Executive summary

• Net income excluding revaluation rose 26.7% to CHF 48.6m; lower property revaluations and property-sale results reduced reported net income to CHF 47.0m from CHF 99.4m.

• Property income increased 3.9% to CHF 70.3m, vacancy fell to 4.0%, and the dividend proposal rose 6.9% to CHF 3.10 per share.

Financial highlights

• Property income was CHF 70.3m versus CHF 67.7m; total operating income fell 16.8% to CHF 134.8m, reflecting lower revaluation gains and property-sale income.

• EBITDA declined 38.7% to CHF 70.9m and EBIT declined 38.9% to CHF 70.4m; net income was CHF 47.0m versus CHF 99.4m.

• Net income excluding revaluation increased 26.7% to CHF 48.6m; EBIT excluding revaluation was CHF 72.3m.

• Profit from sale of investment properties rose to CHF 16.7m from CHF 6.0m; total revaluation was negative CHF 1.9m versus positive CHF 64.3m.

Outlook and guidance

• 2024 collected property income targeted to increase ~6% vs. 2023, with year-end vacancy below 4%.

• Expected 2024 rental-income uplift of ~CHF 1.1m from CPI and reference-rate adjustments; property income from these adjustments estimated at ~CHF 130k and CHF 280k, respectively.

• 2024 development capex planned at ~CHF 110m; further progress on larger projects expected to support positive revaluations and condominium sales.

• Dividend policy remains unchanged, with a continuously increasing payout; payment targeted below 100% of net income excluding revaluations.