Zug Estates (ZUGN) H1 2025 earnings summary

Executive summary

• Strong operating results in both real estate and hotel & catering segments, with net profit up 127.1% to CHF 63.9 million, mainly due to a CHF 50.1 million revaluation gain.

• Property income increased by 6.0% year-over-year, and adjusted net income (excluding revaluation and special effects) rose 10.1% to CHF 19.9 million.

• Portfolio value increased to CHF 1.92 billion, supported by positive market conditions and new investments.

• Positive outlook for the remainder of 2025, supported by a low vacancy rate and robust demand for high-quality rental spaces.

Financial highlights

• Property income rose to CHF 35.9 million (+6.0% year-over-year); total operating income reached CHF 45.3 million (+4.5%).

• Net income surged 127.1% to CHF 63.9 million, driven by a CHF 50.1 million revaluation gain.

• Adjusted net income (excluding revaluation and special effects) increased 10.1% to CHF 19.9 million.

• EBIT more than doubled to CHF 78.0 million (+110.7% year-over-year).

• Earnings per Series B share: CHF 125.38; adjusted EPS: CHF 39.00.

Outlook and guidance

• Slightly lower property income expected in H2 2025 due to passing on interest rate reductions to residential tenants.

• Hotel & catering business anticipated to remain stable; property and financing costs to rise slightly.

• Full-year adjusted net profit expected to exceed prior year, though H2 will be lower than H1 due to higher property and financing costs.