Zug Estates (ZUGN) H1 2026 earnings summary

Executive summary

• Strong operating result in both real estate and hotel & catering segments, with encouraging increase in net income excluding revaluation and special effects year-over-year.

• Achieved a stable property income of CHF 35.8 million, nearly unchanged year-over-year, despite interest rate cuts passed on to tenants.

• Net income dropped 32.9% to CHF 42.9 million due to a lower revaluation gain, but adjusted net income (excluding revaluation and special effects) rose 6.6% to CHF 21.2 million.

• Hotel & catering revenues increased by 2.5% to CHF 8.0 million, with improved profitability and a higher GOP margin.

• Portfolio value increased by 2.4% to CHF 1.98 billion, driven by investments and revaluation effects.

Financial highlights

• Property income CHF 35.8 million, nearly unchanged from CHF 35.9 million in H1 2025.

• Net income CHF 42.9 million, down 32.9% from CHF 63.9 million due to lower revaluation gain; adjusted net income up 6.6% to CHF 21.2 million.

• Operating income increased 0.9% to CHF 45.7 million, aided by a one-off insurance settlement.

• Revaluation gain CHF 24.6 million, down 50.8% year-over-year.

• Net income per series B share was CHF 84.1 (down 32.9%), but adjusted EPS rose to CHF 41.6.

Outlook and guidance

• Property income expected slightly lower in H2 2026 due to absence of compensation payment and higher vacancy, but lower property expenses should offset this.

• Hotel & catering business to remain stable; net income excluding revaluation and special effects to be lower in H2 2026.

• For full year 2026, net income excluding revaluation and special effects expected slightly above previous year.

• Hotel & catering segment anticipated to deliver stable revenues but with a slightly lower GOP margin due to higher costs.