Property company increases profit and reduces vacancy rate
The Zug Estates Group increased its net profit excluding revaluations by 9 percent to just under CHF 37 million in 2024. This is due to increased income from the properties. Their vacancy rate fell from 3.9 to 0.7 percent compared to the end of 2023.
The Zug Estates Group generated net profit excluding revaluations and special effects of CHF 36.9 million in the 2024 financial year, the real estate company, which focuses on the Zug economic and living environment, announced in a press release. This corresponds to year-on-year growth of 9.0 per cent. Shareholders are to participate in the profit with a 6.8 per cent increase in the ordinary dividend.
The press release cites the Group’s property income as the growth driver. It increased by 5.5 per cent year-on-year to CHF 69.3 million. The Hotel & Catering segment contributed CHF 15.5 million to total income. Total operating income increased by 4.7 per cent to CHF 88.8 million.
At CHF 58.7 million, Group profit including revaluations and special effects in 2024 was 142.7 per cent higher than in the previous year. The increase is primarily attributable to revaluation gains totalling CHF 24.8 million. In addition, Zug Estates invested a total of CHF 8.1 million in new construction and renovation projects in the year under review. At CHF 1.86 billion, the market value of the Group’s entire portfolio at the end of 2024 was 1.7 percent higher than the previous year’s figure.
In addition, Zug Etates had a practically fully let property portfolio at the end of the financial year: The vacancy rate was reduced from 3.9 to 0.7 percent compared with the previous year, which was characterised by conversions. In the year under review, the Group was able to extend or conclude new commercial leases totalling more than CHF 5.4 million a year.