Zug Estates (ZUGN) H2 2024 earnings summary

Executive summary

• Achieved strong financial results in 2024, with property income up 5.5% to CHF 69.3 million compared to 2023, and net income rising 142.7% to CHF 58.7 million, driven by positive revaluation gains.

• Vacancy rate reduced to a low 0.7%, reflecting robust demand for well-located rental spaces and successful rental activity across all segments.

• Operating income increased 4.7% to CHF 88.8 million, with hotel & catering segment showing higher revenues in H2 2024.

Financial highlights

• Property income rose by CHF 3.6 million year-over-year, with like-for-like growth of 5.1%.

• Net income excluding revaluation and special effects increased 9.0% to CHF 36.9 million.

• Revaluation gain of CHF 24.8 million (1.4% of portfolio value) after a negative revaluation in 2023.

• Equity ratio improved to 56.1% and interest-bearing debt reduced to 35.9% of total assets.

• Net debt/EBITDA improved to 11.4x; interest coverage ratio at 5.5x.

Outlook and guidance

• For 2025, expects slight increases in property income and hotel & catering revenues, with net income (excluding revaluation and special effects) at prior-year level due to slightly higher financing costs.

• Board proposes a 6.8% dividend increase to CHF 47.00 per series B registered share.