Zug Estates (ZUGN) H1 2024 earnings summary

Executive summary

• Net income surged to CHF 28.2 million in H1 2024, up from CHF 1.9 million, driven by revaluation gains and strong rental activity.

• Property income increased by 3.1% to CHF 33.8 million, reflecting a nearly fully let portfolio and successful leasing.

• Vacancy rate dropped sharply to 0.7%, supporting a positive outlook for 2024.

• Hotel & catering income declined by 5.5% to CHF 7.7 million due to subdued business travel and corporate event bookings.

• Suurstoffi site received Switzerland's first DGNB Platinum Certificate for sustainable district development.

Financial highlights

• Operating income rose 1.2% to CHF 43.4 million; property income up 3.1% to CHF 33.8 million.

• Net income excluding revaluation and special effects was CHF 18.1 million, up 0.4% year-over-year.

• Earnings per registered B share reached CHF 55.2, up from CHF 47.4 in H1 2023.

• Equity ratio held steady at 54.9% as of June 30, 2024.

• Cash flow from operating activities was CHF 22.6 million; CHF 22.4 million dividend paid.

Outlook and guidance

• Real estate segment expects higher property income and improved operating result for 2024, supported by successful rental activity and rent increases.

• Hotel & catering segment anticipates stable income and GOP margin despite subdued demand.

• Net income excluding revaluation and special effects is projected to exceed CHF 35 million for the full year.