Press releases

Zug Estates provides regular notifications about news that is relevant to the share price or other current news. The ad hoc announcements are "Ad hoc announcement pursuant to Art. 53 LR" of SIX Exchange Regulation.
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Press release
Zug, 9 September 2024

Zug Estates Ltd has signed a 30-year rental agreement with XUND, the training centre of Gesundheit Zentralschweiz, for a space spanning 6,000 m2 on the Suurstoffi site in Rotkreuz, Canton Zug.

XUND will take over all the office and education space in the Suurstoffi 45 property which – together with the Suurstoffi 43 building – is the last plot at the Suurstoffi site. The S43/45 project entails the construction of around 14'400m2 of office and education space and 1'100 m2 of residential space for student living. Construction is set to commence at the end of 2024. The rental space is scheduled to be handed over to XUND and other future tenants in mid-2027.

Josef Widmer, President of the XUND training centre, underlines the considerable attractiveness of the new, modern location and anticipates synergies in the site's innovative environment: "The Rotkreuz site strengthens XUND's regional roots in central Switzerland and is much more easily reachable for many students and apprentices. It facilitates on-site synergies with other education partners, such as the Lucerne University of Applied Sciences and Arts, and opens up opportunities for cooperating with practitioners or researchers."

Alain Baumgartner, Head of Portfolio Management at Zug Estates Ltd, is pleased that the training centre is moving to the Suurstoffi site: "XUND is an ideal partner for us and will fit in very well with the current tenants at the Suurstoffi site; it will also contribute to a sustainable and diverse use of the complex. And finally, the marketing success confirms the buoyant demand for attractive and well developed rental spaces in the Zug region."

About XUND
The XUND training centre offers a wide range of practical continuous and further training "under one roof" together with professional colleges of nursing and biomedical analytics, advanced study programmes in anaesthesia, intensive and emergency care, industry-wide courses for healthcare assistants and health and social care workers, as well as further training courses.

Important dates:

20 February 2025 | Publication of Annual Report and Sustainability Report 2024
10 April 2025 | General meeting of shareholders
20 August 2025 | Publication of 2025 half-year report

For further information, please contact:

Patrik Stillhart, CEO

T +41 41 729 10 10, ir@zugestates.ch

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the Zug region. It focuses on central sites that are suitable for a wide range of uses and allow sustainable development. The real estate portfolio is composed mainly of the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the leading business hotels Park Hotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio as of 30 June 2024 was CHF 1.84 billion. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, securities number: 14 805 212).

Zug Estates Holding AG | Baarerstrasse 18 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch



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Press release
Zug, 26 August 2024

Today, Zug Estates Holding Ltd placed a further green bond amounting to CHF 100 million. In the run-up to the transaction, the existing Green Bond Framework was expanded into a Green Finance Framework. Based on the new, stringent selection criteria, 95% of the portfolio is classified as green properties.

In 2019, Zug Estates was the first Swiss real estate company to issue a green bond. After switching its entire bond portfolio to green bonds in 2022, a further green bond with a payment date of 30 September 2024 and amounting to CHF 100 million was placed today. It has a coupon of 1.65% and a term of seven years. The proportion of unsecured bonds in relation to all interest-bearing financing will thus increase to around 45%.

In the run-up to the issue, the existing Green Bond Framework was expanded into a Green Finance Framework which in future will enable Zug Estates to take out not only green bonds but also access other types of green financing instruments.

Under the new, stringent selection criteria, buildings and sites will be classed as green if their greenhouse gas emissions during operation are lower than 1kg pro m2 energy reference area (<1 kg CO2eq / m2 ERA p.a.) or if they have certification from BREEAM (very good or higher), DGNB/SGNI (Gold or higher), the Swiss Sustainable Building Standard SNBS (Gold or higher) or Minergie.

Despite these very ambitious guidelines, green buildings and sites account for 95% of Zug Estates' total portfolio, thanks to the company's long-standing systematic implementation of its strategy in the field of environmental sustainability. Of these, properties at the Suurstoffi site with a market value of CHF 418.4 million as at 30 June 2024 will be allocated to the two existing green bonds and the newly launched green bond.

ISS Corporate Solutions, one of the world's leading agencies for ESG research and rating, has provided a Second Party Opinion (SPO) on the Green Finance Framework. Moreover, on 23 August 2024 ISS (International Shareholder Services) awarded Zug Estates a "C+" rating, which corresponds to the "Prime" status.

Today's placement was met with broad-based interest among institutional investors, as the funds can be invested directly and entirely in properties that meet the most stringent sustainability requirements and that are already operated on on an almost CO2-free basis.

UBS AG and Basler Kantonalbank are acting as joint lead managers in the issue. An application has been submitted for trading on SIX Swiss Exchange.

Disclaimer:
This press release and the information it contains may not be forwarded or transmitted to the United States of America (USA) or distributed or transmitted to US persons (including legal entities) or to media with broad distribution in the USA. Any violation of these restrictions may give rise to a breach of US securities legislation. This bond will not be offered for public sales outside Switzerland. This media release does not constitute an offer to buy or subscribe securities and is not an issuing prospectus pursuant to Art. 35 FinSA.

Important dates:

27 August 2024 | Sustainability Forum
20 February 2025 | Publication of Annual Report and Sustainability Report 2024
10 April 2025 | General meeting of shareholders

For further information, please contact:

Mirko Käppeli, CFO

T +41 41 729 10 10, ir@zugestates.ch

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the Zug region. It focuses on central sites that are suitable for a wide range of uses and allow sustainable development. The real estate portfolio is composed mainly of the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the leading business hotels Park Hotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio as of 30 June 2024 was CHF 1.84 billion. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, securities number: 14 805 212).

Zug Estates Holding AG | Baarerstrasse 18 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch



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Ad hoc announcement pursuant to Art. 53 LR
Zug, 22 August 2024

  • Net income of CHF 28.2 million was substantially higher than the previous year’s figure (CHF 1.9 million)
  • After adjusting for revaluation and special effects, net income showed a slight increase of 0.4% to CHF 18.1 million.
  • Property income rose by 3.1% in the first half of 2024 to CHF 33.8 million.
  • The vacancy rate fell significantly to a very low 0.7% (3.9% as at 31 December 2023).
  • The pleasing rental situation and rise in rental income led to a revaluation gain of CHF 11.5 million.
  • The portfolio value increased by CHF 14.9 million to CHF 1.84 billion.
  • The very solid equity ratio as at 30 June 2024 was unchanged at 54.9%.
  • The Swiss Sustainable Building Council awarded the Suurstoffi site – as the first site in Switzerland – the DGNB Platinum Certificate for the planning and construction of sustainable districts.

Zug Estates recorded a pleasing increase in net income in the first half of 2024. Demand for attractive, well-connected rental space remains intact given Zug’s dynamic growth as a place to live and work, coupled with limited supply. Together with the large number of rental successes seen in the previous year, this led to a significantly lower vacancy rate and an increase in property income.

The changed interest rate situation following the two cuts in key interest rates by the Swiss National Bank had a favourable impact on the financing environment in the first half of 2024; this led to a better-than-expected financial result and had a positive effect on real estate values.

Net income increased by a substantial CHF 26.3 million year on year, from CHF 1.9 million to CHF 28.2 million; this was attributable to a positive revaluation result compared with the first half of 2023. After adjustment for revaluation and special effects, net income showed a slight increase of CHF 0.1 million or 0.4%, from CHF 18.0 million to CHF 18.1 million.

Higher property income, but subdued demand for hotel rooms
Property income rose by CHF 1.0 million or 3.1%, from CHF 32.8 million to CHF 33.8 million. This was attributable to a distinctly lower vacancy rate, which in the previous year had been affected by refurbishment work on retail space at the Metalli shopping mall in Zug. On a like-for-like basis, property income was up CHF 0.7 million or 2.1% year on year.

In the hotel & catering segment, on the other hand, larger companies are currently taking a cautious approach to the booking of business travel and events. This led to a reduction in hotel & catering income of CHF 0.4 million or 5.5%, from CHF 8.1 million to CHF 7.7 million. Gross operating profit (GOP) fell from 42.3% to 37.8% following the expansion of the catering offering – which is characterised by lower margins than the hotel business – in 2023.

In total, operating income rose by CHF 0.5 million or 1.2%, from CHF 42.9 million to CHF 43.4 million. Operating expenses increased only slightly by CHF 0.1 million or 0.6% from CHF 15.7 million to CHF 15.8 million.

Higher portfolio value
Due mainly to revaluation effects, the market value of the overall portfolio increased by CHF 14.9 million or 0.8%, from CHF 1'827.7 million as at 31 December 2023 to CHF 1'842.6 million as at 30 June 2024. The revaluation gain of CHF 11.5 million (previous year: revaluation loss of CHF 18.3 million) or around 0.7% of the portfolio value of all investment properties, is due to the pleasing rental situation and the rise in rental income. At 2.90% as at 30 June 2024, the average real discount rate was practically unchanged compared with the previous year (2.91% as at the end of 2023).

A total of CHF 3.5 million was invested in the portfolio in the period under review. This compares with the previous year’s figure of CHF 22.8 million, the bulk of which was attributable to the acquisition of additional co-ownership shares in Miteigentümerschaft (MEG) Metalli.

Solid equity ratio
The pleasing operating result and low level of investment in the portfolio led to a slight reduction in interest-bearing debt of CHF 1.5 million or 0.2%, despite payment of a CHF 22.4 million dividend. Interest-bearing debt fell to CHF 672.7 million as at 30 June 2024 from CHF 674.2 million as at 31 December 2023. As a percentage of total assets, interest-bearing debt decreased from 37.3% to 37.0% thanks to the additional increase in the value of the portfolio.

The already very solid equity ratio as at 30 June 2024 was unchanged at 54.9%.

As no major loans became due for extension, the average residual maturity of loans fell from 3.5 years as at 31 December 2023 to 3.0 years as at 30 June 2024. The average interest rate was unchanged at 1.5%.

Significant reduction in vacancy rate
Commercial leases for space totalling around 3'700 m2, involving rental income of around CHF 1.5 million p.a., were extended or concluded in the first half of 2024. The agreements concluded related to both office space in Zug and Rotkreuz and retail space at the Metalli complex. The Suurstoffi 14 property, which was originally used exclusively by Novartis, is fully let again.

Together with the numerous rental agreements concluded in the previous year, the leases agreed in the reporting period led to a significant reduction in the vacancy rate. The vacancy rate fell from 3.9% as at 31 December 2023 to a very low 0.7% as at 30 June 2024. The weighted average unexpired lease term (WAULT) of 6.1 years (6.5 years as at 31 December 2023) remained at a very high level for the industry.

New retail and catering options at City Centre site
The refurbishment of the former Zara space at the Metalli shopping mall was completed, with the ground-level space having been subdivided into three shop units – one of which is now connected to the basement. Lidl (foods), doodah and PME Legend (both clothing) opened their new stores in April and May 2024.

In addition, the comprehensive refurbishment of the listed Bären property – which has been underway since April 2023 – is nearing completion. Within this classical building, Tibits AG is set to open its first venue in Zug at the end of August 2024.

Start of construction on final Suurstoffi plot at end 2024
Preparatory work for the start of construction work on the one remaining undeveloped plot at the Suurstoffi site is in full swing. Construction of the two buildings, S43/45, with a total of around 14'400 m2 of office and education space as well as 1'100 m2 of residential space for student living will come at an investment cost of around CHF 85 million and will take three to four years.

Building work is due to commence at the end of 2024, with leased spaces likely to be handed over to future tenants from mid-2027. The residential space for student living will be leased and operated by Lucerne University of Applied Sciences and Arts Marketing has begun for the office and education space, and talks are underway with parties interested in the attractive, versatile rental space at the two buildings.

Metalli Living Space development
Clarification is under way regarding implementation of the “2000 homes for Zug’s middle classes” initiative approved by voters. The requirement that at least 40% of newly built residential space in all high-density areas be affordable has implications for the development plans for both the Metalli and Bergli sites. Zug Estates is therefore in close dialogue with the City of Zug and is examining its options in terms of implementation and optimisation of the project.

In view of the consequences of the initiative, Zug Estates has already decided against pursuing the Bergli development plan and will instead focus on the plan for Metalli. The basis of the project is currently being reviewed in consultation with the City of Zug, with changes being made to the development plan to ensure implementation of the initiative. The aim is to finalise this work by the end of 2024 so as to ensure that – in the event of a decision to continue with the project – the political process for implementation of the Metalli development plan can begin in the first half of 2025.

Suurstoffi site awarded DGNB Platinum Certificate
Zug Estates has pursued ambitious sustainability targets over many years and is focused on reducing greenhouse gas emissions within its operations as well as in connection with the construction of properties, together with the creation and continuous development of future-proof, diverse living spaces. Zug Estates’ major ambitions have now been recognised in the form of DGNB certification. In March 2024, the Swiss Sustainable Building Council awarded Suurstoffi – as the first site in Switzerland – the DGNB Platinum Certificate for the planning and construction of sustainable districts.

Positive outlook for 2024
Thanks to successful rental activity in the 2023 financial year and first half of 2024 as well as rent increases due to index and reference interest rate adjustments, we expect higher property income and an improvement in operating income for the real estate segment on a full-year basis too. The vacancy rate at the end of 2024 is likely to be significantly lower than a year earlier.

For the hotel & catering segment, we expect total income to be roughly on a par with the previous year’s level despite a fall in demand on the part of larger companies. The GOP margin is likewise expected to be in line with the previous year’s figure.

All in all, we continue to expect net income excluding revaluation and special effects for the 2024 financial year of over CHF 35 million.

Publication of Half-Year Report on 22 August 2024
A video conference (in German) for analysts and media will be held at 2 p.m today. CEO Patrik Stillhart and CFO Mirko Käppeli will present the 2024 half-year results and will be available to answer your questions afterwards.

Please register for the conference via the following link. We look forward to seeing you. https://zugestates.ch/en/stories/video-conference-for-analysts-and-media-on-the-2024-half-year-results

The detailed Half-Year Report and the presentation for the video conference can be found on our website: https://zugestates.ch/en/downloads

Important dates:

27 August 2024 | Sustainability Forum
20 February 2025 | Publication of Annual Report and Sustainability Report 2024
10 April 2025 | General meeting of shareholders

For further information, please contact:

Patrik Stillhart, CEO
Mirko Käppeli, CFO

T +41 41 729 10 10, ir@zugestates.ch

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the Zug region. It focuses on central sites that are suitable for a wide range of uses and allow sustainable development. The real estate portfolio is composed mainly of the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the leading business hotels Park Hotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio as of 30 June 2024 was CHF 1.84 billion. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, securities number: 14 805 212).

Zug Estates Holding AG | Baarerstrasse 18 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch



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Press release
Zug, 9 April 2024

Today, the 12th General Meeting of Shareholders of Zug Estates Holding Ltd was held at the Theater Casino Zug, attended by 214 shareholders. A total of 80.2% of the voting share capital was represented. The shareholders approved all proposals of the Board of Directors.

The General Meeting of Shareholders decided to distribute a total of CHF 22.4 million to shareholders for the 2023 financial year. The ordinary gross dividend (subject to withholding tax) is CHF 4.40 per series A registered share and CHF 44.00 per series B registered share. After payment of Swiss withholding tax of 35%, this results in a net dividend of CHF 2.86 per series A registered share and CHF 28.60 per series B registered share. Payment of the net dividend will take place as of Monday, 15 April 2024 (payment date).

All members of the Board of Directors standing for re-election were confirmed for a further term of one year. Beat Schwab was also re-elected as Chairman of the Board of Directors. Johannes Stöckli and Annelies Häcki Buhofer were re-elected to the Nomination and Compensation Committee. In a consultative vote, the General Meeting of Shareholders expressed its agreement with the remuneration report and approved the remuneration for the members of the Board of Directors and Group management. The shareholders elected KPMG Ltd, Zug, as the auditors for the 2024 financial year for the first time.

The 13th General Meeting of Shareholders of Zug Estates Holding Ltd will be held on 10 April 2025.

Important dates:

15 April 2024 | Distribution to shareholders (payment date)
22 August 2024 | Publication of 2024 half-year report

27 August 2024 | Sustainability Forum

For further information, please contact:

Patrik Stillhart, CEO
Mirko Käppeli, CFO

T +41 41 729 10 10, ir@zugestates.ch

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the Zug region. It focuses on central sites that are suitable for a wide range of uses and allow sustainable development. The real estate portfolio is composed mainly of the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the leading business hotels Park Hotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio as of 31 December 2023 was CHF 1.83 billion. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, securities number: 14 805 212).

Zug Estates Holding AG | Baarerstrasse 18 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch


News Source: Zug Estates Holding AG


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Press release
Zug, 21 March 2024

The Swiss Sustainable Building Council awarded the Suurstoffi site of Zug Estates – as the first site in Switzerland – the DGNB Platinum Certificate for the planning and construction of sustainable districts.

The DGNB certification confirms that Zug Estates has delivered a prime example of sustainable site development with the Suurstoffi site in Rotkreuz. It meets the comprehensive quality requirements of the DGNB certification system that includes criteria such as energy efficiency, CO2 emissions, ecological assessment, grey energy, flexibility of use and recyclability of the materials used. However, the Suurstoffi site plays a pioneering role not only in terms of the virtually carbon-free energy concept but also demonstrates its qualities from an economic, socio-cultural, functional and technical point of view.

DGNB is an internationally recognised quality seal that – in addition to BREEAM (UK) and LEED (USA) – is one of the three main evaluation systems in the world. With the certification, almost half of the Zug Estates portfolio has a sustainability certificate.

The other Zug Estates properties also have an above-average sustainability profile thanks to very low emission values, prime locations, a good social mix and high-quality exterior space designs. According to the latest sustainability report of the Zug Estates Group, greenhouse gas emissions for operation of the entire real estate portfolio are, at 1.1 kg pro m2 energy reference area (scope 1 and 2), at a very low level and well below the industry average.

SGNI
The Swiss Sustainable Building Council was established in 2010 and is Switzerland’s representative in the World Green Building Council network, which comprises 70 country councils and over 28,000 member companies committed to sustainability. Projects totalling several billion Swiss francs accounting for over 5 million m2 are currently in the process of being or have been certified by the Swiss Sustainable Building Council. Worldwide there are over 10,000 large-scale projects including residential and office complexes, logistics and production facilities, shopping malls and hospitals, as well as city neighbourhoods, sites, buildings and standardised tenant fitouts. (https://www.sgni.ch)

Important dates:

9 April 2024 | General meeting of shareholders
22 August 2024 | Publication of 2024 half-year report

27 August 2024 | Sustainability Forum

For further information, please contact:

Patrik Stillhart, CEO

T +41 41 729 10 10, ir@zugestates.ch

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the Zug region. It focuses on central sites that are suitable for a wide range of uses and allow sustainable development. The real estate portfolio is composed mainly of the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the leading business hotels Park Hotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio as of 31 December 2023 was CHF 1.83 billion. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, securities number: 14 805 212).

Zug Estates Holding AG | Baarerstrasse 18 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch



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Ad hoc announcement pursuant to Art. 53 LR
Zug, 21 February 2024

Pleasing operating result for Zug Estates Group thanks to numerous rental successes, increased rental income and repositioning of Garden Park Zug AG.

  • Net income excluding revaluation and special effects of CHF 33.9 million was slightly higher than the previous year’s figure (CHF 33.8 million)
  • Rental income increased by 5.5% from CHF 62.2 million to CHF 65.7 million
  • The decision to proceed with the S43/45 construction project at the Suurstoffi site in Rotkreuz represents an investment of around CHF 85 million
  • Hotelbusiness Zug AG was successfully renamed Garden Park Zug AG with a simultaneous repositioning of the hotel & catering segment
  • The board of directors will propose to the general meeting of shareholders that the ordinary dividend per series B registered share be increased by 7.3% to CHF 44.00 (previous year: CHF 41.00)
  • In the 2024 financial year, a significant reduction in the vacancy rate to around 1% and an increase in net income excluding revaluation and special effects to over CHF 35 million are expected

2023 was characterised by a changed backdrop interest rate and market environment, on the one hand, and an increasing supply shortage in some segments of the real estate market, on the other. The rise in interest rates compared with the previous year led to higher financing costs and an increase in discount rates. The resulting downward pressure on real estate values detracted from increased property income.

Zug Estates benefited from brisk demand for attractive, well-connected rentable space and achieved numerous rental successes. The hotel & catering segment showed an encouraging trend, while the refurbishment of the ground floor of the Park Hotel Zug (formerly known as Hotelbusiness Zug AG) was successfully completed with the opening of the new aígu restaurant and repositioning of Garden Park Zug AG.

Net income excluding revaluation and special effects amounted to CHF 33.9 million in the 2023 financial year, representing a slight increase of CHF 0.1 million or 0.2% compared with the previous year’s figure of CHF 33.8 million. Net income was 39.2% or CHF 15.6 million lower at CHF 24.2 million (previous year: CHF 39.8 million), the decline being attributable to a negative revaluation result caused by overall market factors.

Encouraging increase in property income and operating result
Property income of the Zug Estates Group rose by CHF 3.5 million or 5.5%, from CHF 62.2 million to CHF 65.7 million in 2023. Improvements to the bottom line were achieved as a result of the full year impact of the Renggli Group acquired in the previous year, the purchase of an additional 3.5% of MEG Metalli in 2023, as well as index and reference interest rate adjustments. Adjusted for changes to the portfolio (like-for-like basis), rental income was up CHF 0.9 million or 1.5%.

Despite the temporary loss of income due to the repositioning, hotel & catering income rose from CHF 14.7million in the previous year to CHF 15.2 million, a year-on-year increase of CHF0.5million or 3.5%. Income from accommodation continued to pick up and was actually slightly above the level prior to the outbreak of the COVID-19 pandemic. The repositioning of the aígu and Bären restaurants caused a temporary fall in catering turnover in 2023. Thanks to careful coordination of the building work, hotel operations were only marginally affected and gross operating profit (GOP) remained on a par with the previous year’s level at 37.8% (2022: 37.9%).

Operating income of the entire group increased by CHF 4.7 million or 5.8%, from CHF 80.1 million to CHF 84.8 million.

Expansion of the portfolio caused property expenses to rise from CHF 7.8 million to CHF 8.2 million – an increase of CHF 0.4 million or 4.9%.

The operating result before depreciation and revaluation rose by 5.1% or CHF 2.5 million, from CHF 49.7 million to CHF 52.2 million.

The higher interest rates and a more hesitant transaction market in overall terms led to a rise in discount rates. The net revaluation figure was correspondingly negative at CHF 11.0 million, as against a revaluation gain of CHF 6.8 million in the prior year.

Due to the revaluation effects mentioned, EBIT was down by CHF 15.4 million or 28.9%, from CHF 53.0 million to CHF 37.6 million.

Both the acquisitions concluded and higher interest rates on short-term interest-bearing debt resulted in a decrease in the net financial result of CHF 2.4 million or 30.9% to CHF 10.2 million (previous year: CHF 7.8 million)
.
Value of portfolio falls slightly due to negative net revaluation figure
Acquisitions and investments for the portfolio amounted to CHF 28.3 million in the 2023 financial year (previous year: CHF 123.2 million). The bulk of this – CHF 19.4 million – was incurred in the first half of 2023 as a result of the acquisition of another 3.5% co-ownership share in Miteigentümergemeinschaft (MEG) Metalli. This increased the company’s co-ownership share of MEG Metalli to 78.75%. The Duggelistrasse 28 property in Cham was sold in the second half of 2023 at its current book value of CHF 4.5 million.

In early December 2023, Zug Estates Ltd merged its two existing office sites in Zug and Rotkreuz and moved into its new premises at the Metalli site. The Industriestrasse 12 property was therefore reclassified from operating properties to investment properties as at 31 December 2023. At the same time, the Bären property – which is in the course of being renovated – was reclassified from operating properties to investment properties under construction following the conclusion of a lease agreement with Tibits Ltd.

The market value of the property as a whole fell by a marginal 0.2% or CHF 2.9 million and still amounts to CHF 1.83 billion. The slight reduction in market value is attributable to a negative net revaluation result of CHF 11.0 million, which stems from an average increase in real discount rates of 15 basis points and represents around 0.6% of the portfolio value of all investment properties.

Numerous rental successes in all segments will result in low vacancy rate in 2024
Zug Estates can look back on very successful rental activity in the 2023 financial year. Commercial leases for space totalling around 24'000m2 and involving rental income of more than CHF 10.2 million p.a. were extended or concluded. Most of the new contracts will only take effect in the first half of 2024 and do not affect the vacancy rate as at the end of 2023. The rise in the vacancy rate to 3.9% as at 31 December 2023 (previous year: 1.6%) is primarily attributable to refurbishment work at the Metalli shopping mall, which accounts for a share of 1.8%.

Agreements concluded in the 2023 financial year related to office and education space in Zug and Rotkreuz as well as retail space at the Metalli site. At the Suurstoffi site in Rotkreuz, new lease agreements for the S14 property covering around 2'600m2 were concluded with Lombardi SA Ingegneri Consulenti and Pacojet International AG. In addition, on 1 January 2024 the Canton of Zug took over the S6 property – which comprises around 4'500m2 – for a fixed lease term of ten years, with plans to open a new cantonal school.

At the Zug City Centre site, the lease with UBS AG for the Baarerstrasse 14a property and leases for retail space totalling around 3'700m2 were extended for five years. In addition, attractive brands were recruited for all newly created rental units at the Metalli shopping mall following the renovation of the former C&A and Zara spaces. LUSH, Maison Carat and Douglas opened their outlets in autumn 2023. Lidl, doodah and lifestyle label PME Legend are to follow suit in spring 2024.

At 6.5 years as at 31 December 2023 (previous year: 6.5 years), the weighted average unexpired lease term (WAULT) was at a very high level for the industry.

Opening of aígu restaurant and repositioning of Garden Park Zug AG
The ground floor of Park Hotel Zug was comprehensively refurbished between June and October 2023. The outcome is the creation of aígu Restaurant & Bar (www.restaurant-aigu.ch) – a new restaurant that blends Swiss cuisine with the flair of southern France. Thanks to a spacious terrace and a new conservatory, the restaurant, bar and conference area has been opened up and made more inviting; it now has the space to host major events for up to 220 people.

The Bären property – a listed building – has been undergoing a complete refurbishment since April 2023. Previously operated by Hotelbusiness Zug AG, the restaurant has been taken over by Tibits Ltd, which – following completion of the refurbishment work in June 2024 – is set to open its first venue in Zug.

As part of the refocusing, Hotelbusiness Zug AG, which owns Park Hotel Zug with the aígu Restaurant & Bar and City Garden Hotel, City Apartments and Secret Garden Restaurant & Bar, has been renamed Garden Park Zug AG (www.gardenpark.ch).

S43/45 project enters construction phase
To address the change in tenant requirements with regard to spatial quality and flexibility of use, the S43/45 construction project involving the only plot not yet developed at the Suurstoffi site was revised in the 2023 financial year. The application for modification was submitted to the Risch Rotkreuz municipality in July 2023 and signed off in September 2023. The project consists of two buildings with total office and education space of around 14'400m2 as well as 1'100m2 of residential space for student living.

In view of the encouraging situation for rental properties at the Suurstoffi site and across the Zug Estates portfolio, undiminished demand for attractive, well-connected rental spaces as well as the positive market outlook for the Zug region, the board of directors of Zug Estates Holding Ltd decided to give the project the green light. Construction of the two buildings, at an investment cost of around CHF 85 million, will take around three-and-a-half years. Building work is due to start at the end of 2024, with leased spaces likely to be handed over to future tenants from mid-2027.

Further development of Metalli Living Space not yet finalised
An initial review by the cantonal authorities of the development plans for both the Metalli and Bergli sites was successfully concluded in the first half of 2023. The plans were to have been submitted to the Greater Municipal Council (GGR) of the City of Zug in October 2023. However, the process was halted due to the “2000 homes for Zug’s middle classes” city initiative, which was approved by voters on 18 June 2023 and requires that at least 40% of newly built residential space in all high-density areas be “affordable”.

To ensure legal certainty with regard to implementation of the initiative, the City of Zug commissioned a legal opinion, which was duly received in early December 2023. Zug Estates is in close contact with the planning department of the City of Zug in order to clarify the concrete impacts on the development plans for both the Metalli and Bergli sites. A conclusive assessment is not yet possible. However, it is clear that the financial implications are not negligible. Against this backdrop, it is not yet known whether – and if so to what extent – Zug Estates will pursue the two development plans and therefore the Metalli Living Space project.

Comprehensive sustainability reporting
Zug Estates now publishes its sustainability report on the basis of GRI Standards, in which it reports in detail on the objectives and achievements of Zug Estates right across the ESG spectrum, in tandem with the annual report. At the heart of the Zug Estates sustainability strategy is the reduction in greenhouse gas emissions from the operation and construction of properties as well as the creation and continuous development of future-proof, versatile living spaces.

With 1.1 kg per m2 energy reference area (Scope 1 and 2), greenhouse gas emissions from the operation of the entire real estate portfolio remain at a very low level and are significantly below the industry average. The current reduction pathway and latest assessment of consumption figures in relation to energy and water can be found in the sustainability report, along with extended reporting in relation to Scope 3 emissions. Furthermore, the report provides information about past and current projects in the various thematic areas being targeted by Zug Estates.

Equity ratio remains solid
Due to the purchase of further MEG Metalli shares, the equity ratio fell slightly from 55.2% to a nevertheless still very solid 54.9%.

Interest-bearing debt, on the other hand, rose by CHF 13.8 million or 2.1%, from CHF 660.5 million to CHF 674.2 million. Interest-bearing debt as a percentage of total assets therefore amounted to 37.3% compared to 36.9% in the previous year. A total of around CHF 150 million in short-term debt was firmly secured with a medium maturity in the reporting period, resulting in a slightly extended average residual maturity of 3.5 years (prior year: 3.4 years). Higher interest rates resulted in an average interest rate for the period for interest-bearing debt of 1.5%, as against 1.3% in the prior year.

Dividend increase and change in dividend strategy
In line with the announced gradual increase in the dividend up to a maximum of two-thirds of net operating income, the board of directors will propose to the general meeting of shareholders that the dividend be increased by 7.3%, from CHF 4.10 to CHF 4.40 per series A registered share and from CHF 41.00 to CHF 44.00 per series B registered share.

The board of directors has decided to amend the dividend strategy in favour of a more open formulation. Zug Estates continues to endeavour to ensure a positive dividend trend. The distribution should ensure a solid, long-term financing structure in the future too and not amount to more than 90% of operating profit.

Outlook for 2024
Thanks to successful rental activity in the 2023 financial year as well as rent increases due to index and reference interest rate adjustments, we expect a significant reduction in the vacancy rate to around 1%, higher rental income and an improvement in the operating result in 2024.

In the hotel & catering segment, we expect a rise in sales due to the expanded catering offer. However, given the higher proportion of comparatively low-margin catering revenues, we expect a slight decrease in the GOP margin.

Taking into account slightly higher financing costs, we anticipate net income excluding revaluation and special effects of around CHF 35 million for the 2024 financial year.

Report on 21 February 2024
A media conference in German will be held today at 11:00 at Park Hotel Zug. Patrik Stillhart (CEO) and Mirko Käppeli (CFO) will present the 2023 results and then answer questions. The conference will be held in a hybrid format. You can also follow it in a Zoom meeting. It will be possible to ask questions online.

Please register for the conference via the link below. We look forward to seeing you either in person or virtually. https://zugestates.ch/en/stories/balance-sheet-press-conference-on-the-2023-annual-result

Upcoming events:

9 April 2024 | General meeting of shareholders
22 August 2024 | Publication of half-year report 2024
27 August 2024 | Sustainability forum

For further information, please contact:

Patrik Stillhart, CEO
Mirko Käppeli, CFO

T +41 41 729 10 10, ir@zugestates.ch

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the Zug region. It focuses on central sites that are suitable for a wide range of uses and allow sustainable development. The real estate portfolio is comprised mainly of the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the leading business hotels Park Hotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF1.83billion on 31 December 2023. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, security number: 14 805 212).

Zug Estates Holding AG | Baarerstrasse 18 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch



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Press release
Zug, 7 November 2023

The Zug Estates Group has signed multiple long-term rental contracts for the Suurstoffi site in Rotkreuz and the Metalli centre in Zug. The new aigu Restaurant & Bar at the Park Hotel Zug is a welcome addition to the dining and events scene in the city of Zug.

Canton of Zug opens new school on Suurstoffi site
The canton of Zug will be taking over the property Suurstoffi 6 with an area of 4,500 m2 from Utopia Music AG as of January 1st 2024, for a fixed rental term of ten years. The interior construction will be finished by summer 2025, enabling the secondary school to open in time for the start of the 2025/26 school year.

New retail brand and childcare facility at Metalli centre
The last 190m2 of space remaining from the conversion of what used to be the Zara store at the Metalli shopping centre will be leased by Moem Retail GmbH as of February 1st, 2024. The company will open a PME Legend monobrand store in the spring of 2024. The lifestyle label PME Legend is a market leader in men’s fashion, specialising in premium jeans and casual clothing.

futura Montessori Zug GmbH has signed a five-year rental agreement. It will rent approximately 580m2 from mid-November 2023 and will operate a childcare facility.

New restaurant at Park Hotel Zug and new name for Hotelbusiness Zug AG
Major renovation work on the ground floor of the Park Hotel Zug has been ongoing for the past four months. The new aigu Restaurant & Bar (www.restaurant-aigu.ch) is now ready to serve up traditional Swiss cuisine with a taste of the South of France. Boasting a spacious terrace and a new conservatory, the restaurant is now more open and inviting. Plus, it has plenty of space to host large events.

Following this new direction, Hotelbusiness Zug AG, which owns Park Hotel Zug and aigu Restaurant & Bar as well as City Garden Hotel, City Apartments and Secret Garden Restaurant & Bar, has changed its name to Garden Park Zug AG (www.gardenpark.ch).

Photos of aigu Restaurant & Bar
https://zugestates.ch/en/downloads#pressefotos

Important dates:

21 February 2024 | Publication of the 2023 Annual Report
9 April 2024 | General meeting of shareholders
22 August 2024 | Publication of Half-Year Report 2024

For further information, please contact:

Patrik Stillhart, CEO

T +41 41 729 10 10, ir@zugestates.ch

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the Zug region. It focuses on central sites that are suitable for a wide range of uses and allow sustainable development. The real estate portfolio is comprised mainly of the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the leading business hotels Park Hotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF1.83billion on 30 June 2023. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, security number: 14 805 212).

Zug Estates Holding AG | Industriestrasse 12 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch



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Ad hoc announcement pursuant to Art. 53 LR
Zug, 25 August 2023

  • Net income excluding revaluation and special effects up 7.4% to CHF 18.0 million (previous year: CHF 16.8 million)
  • Increase in property income of 7.7% during first half of 2023
  • Solid equity ratio of 54.0% (55.2% as at 31 December 2022)
  • Portfolio value almost unchanged at CHF 1.83 billion thanks to acquisitions made
  • Due to renovation work, the vacancy rate rose to 3.3% as at 30 June 2023 (1.6% as at 31 December 2022)
  • Greenhouse gas emissions were significantly below the sector average at 0.9 kg CO2eq per m2 of the energy reference area

The changed interest rate and market environment are affecting the Swiss real estate market. On the one hand, higher interest rates are leading to higher financing costs and increased discount rates, which in turn are putting downward pressure on property values. On the other, the indexation of commercial leases and the increase in the benchmark interest rate are resulting in higher rental income, thereby underpinning the values and ensuring that real estate remains an attractive investment class. Additionally, the scarcity of supply in a few individual use categories, including in the residential segment and office space in prime locations, for example, mean that demand still remains good.

Zug Estates generated solid operating results in this market environment. Thanks to a portfolio that is broadly diversified in terms of use, the focus on attractive, well-developed locations and a very solid equity base, Zug Estates is poised to tackle the challenges presented by the changed market environment. Property income rose in the first half of 2023. Alongside this, the hotel & catering segment continued its recovery in the last half, leading to a gratifying result in this segment.

Thanks to significantly better results of operations, net income excluding revaluations and special effects amounted to CHF 18.0 million, up CHF 1.2 million or 7.4% over the previous year’s figure of CHF 16.8 million. Due to a negative revaluation result given overall market conditions of CHF 18.3 million, net profit was CHF 1.9 million. Net income was therefore down CHF 26.0 million or 93.1% on the previous year’s figure of CHF 27.9 million.

Higher property income and sustained recovery in the hotel & catering segment
Property income rose by CHF 2.4 million or 7.7%, from CHF 30.4 million to CHF 32.8 million, as a result of the Renggli Group acquisition carried out at the end of 2022, the full-period effect of successful rental activities as well as indexation-related rent increases.

In the previous year, the hotel & catering segment had reported a steady recovery from the negative effects of the COVID-19 pandemic from May 2022 onward. This recovery held on during the first half of 2023. As a result, revenue in the hotel & catering segment increased substantially by CHF 1.7 million or 26.6%, from CHF 6.4 million to CHF 8.1 million. Gross operating profit (GOP) also rose from 38.0% to a remarkable 42.3%.

Operating revenue increased by a total of CHF 4.4 million, or 11.4%, from CHF 38.5 million to CHF 42.9 million.

Slightly higher property expenses, generally higher expense items in conjunction with the increase in revenues and higher electricity costs pushed operating expenses up by CHF 1.7 million or 12.3%, from CHF 14.0 million to CHF 15.7 million.

Portfolio value unchanged thanks to acquisitions
At CHF 1'830.7 million, the market value of the portfolio as a whole as at 30 June 2023 remained at the level of 31 December 2022. An average increase in the real discount rates by 9 basis points in the first half of 2023 resulted in a negative revaluation effect of CHF 18.3 million, which corresponds to around 1.1% of the value of the portfolio’s investment properties. There had been a revaluation gain of CHF 12.7 million in the prior-year period.

On the other side, there were acquisitions and investments in the portfolio of CHF 22.8 million. The lion’s share of that amount, CHF 19.4 million, is attributable to the acquisition of co-ownership shares amounting to an additional 3.5% stake in Miteigentümergemeinschaft (MEG) Metalli, bringing the Group’s co-ownership share of MEG to a total of 78.75%.

Renovation-related increase in vacancy rate
Commercial lease extensions and new leases relating to more than 9’000 m2 of space and rental income of over CHF 3.8 million per year were concluded in the first half of 2023. The agreements concluded related to both office space in Zug and Rotkreuz and retail space at the Metalli complex. In one case, the lease entered into with UBS AG for the property located at Baarerstrasse 14a in Zug was extended for five years.

Despite these successful rental activities, the vacancy rate rose during the first half of 2023, from 1.6% on 31 December 2022 to 3.3% as at 30 June 2023. This increase is attributable to both a reduction in the amount of space leased by Novartis at Suurstoffi from the start of 2023 as well as renovation-related vacancies at the Metalli complex due to adjustments made to C&A’s store footprint. The weighted average unexpired lease term (WAULT) of 6.5 years (6.3 years as at 31 December 2022) continued to be at a very high level for the industry.

New retail brands at the Metalli complex
The spaces that had previously housed C&A and Zara at the Metalli shopping mall will be redivided to make space for shops offering consumer staples. Attractive brands were recruited to fill the newly created spaces. Lidl Schweiz AG will lease more than 1’600 m2 in retail space in the basement and a portion of the ground floor (currently Zara) from 1 January 2024 onward. Two additional shops will also be created on the ground floor and can be leased from the start of 2024. A lease for one of the two spaces was signed in July 2023 with Mr. Goodfun AG, which will open a doodah shop featuring skateboard, snowboard and streetwear products.

New shops will also be created in the space that had previously housed C&A. The space on the ground floor was split into three retail spaces where LUSH (Switzerland) AG (a handmade cosmetics specialist), Bijouterie Maison Carat SA and Parfümerie Douglas AG will offer their products for sale from autumn 2023 onward. Work has already begun to convert C&A’s retail space on the first floor to be used as office space going forward. This will create two approximately 900 m2 offices. Construction is in progress and expected to be concluded in autumn 2023. Zug Estates AG has operated offices at two locations to date – in Zug and Rotkreuz; these two offices will be merged and are scheduled to move into the new office facility at one of the two sites at the start of December 2023.

Change to catering options
The first half of 2023 saw the start of conversion work on the ground floor of Parkhotel as well as the refurbishment of the Bären property. At Parkhotel, work is being done to enlarge the restaurant, bar and conference facilities while also redesigning the spaces to lend them a more open, modern and inviting ambience. The new restaurant and bar will open at the end of October 2023. Information regarding the catering concept, design and branding will be published via the social media channels of Hotelbusiness Zug AG and at place-to-become.ch in the coming weeks.

The listed Bären property will undergo full refurbishment between the start of April 2023 and the end of March 2024. A lease for the restaurant was concluded with Tibits AG in July 2023. This restaurant company, which specialises in vegetarian and vegan cuisine, will open its first location in Zug in April 2024.

Equity ratio remains solid
The purchase of an additional stake in MEG Metalli as well as the payment of a dividend of CHF 20.9 million caused interest-bearing debt to increase from CHF 660.5 million to CHF 683.5 million as at 30 June 2023. At 54.0%, the equity ratio remained at a very solid level (55.2% as at 31 December 2022).

The average maturity of the debt declined from 3.4 years as at 31 December 2022 to 2.8 years as at 30 June 2023. The substantially elevated interest rate environment caused the average interest rate to increase slightly from 1.3% to 1.5%.

Project development work on the Metalli Living Space and S43/45
Work to draft the content of the revisions to both development plans – Metalli and Bergli – within the scope of the Metalli Living Space project proceeded well overall during the first half of 2023. The report from the preliminary examination at cantonal level arrived in April 2023 and the two revisions of the development plans should have been assessed by the city council at the end of June 2023 with the goal of submitting them to the Grand City Council for the first time in October 2023.

The acceptance on 18 June 2023 of the city initiative “2’000 flats for Zug’s middle class”, which demands that at least 40% of newly built residential spaces in all agglomerations must be affordable, is causing delays in the development planning process. It is impossible to predict at this point how this initiative will affect the changes to the Metalli and Bergli development plans. We are communicating with the City of Zug in this regard and examining its impact on the Metalli Living Space project. However, given the delays it has caused, we currently expect the development plans to be approved in 2025 at the earliest and for construction to be able to start in 2027 at the earliest.

Revision work on the construction project at the S43/45 property at the Suurstoffi site in Rotkreuz is proceeding according to plan. The change was submitted to the municipality of Risch Rotkreuz in July 2023 and the revision of the construction project is expected to be completed by the start of 2024.

Greenhouse gas emissions substantially below average for the industry
Zug Estates will publish its Sustainability Report in accordance with GRI standards at the same time as its Half-Year Report. Our sustainability strategy continues to revolve around the goal of reducing greenhouse gas emissions. Despite the 1 October 2022 acquisition of the Renggli portfolio, which still operates largely on fossil fuels, the Group’s greenhouse gas emissions of 0.9 kg per square metre of energy reference area (Scope 1 and 2) are at the same level as in the previous year, meaning that they are well below the industry average. The acquisition-related increase was offset by savings at the City Centre site/Metalli, where additional properties – Haldenstrasse 9–16 and Hotel City Garden – were connected to the Circulago lake water energy network.

Discussions about grey energy and aspects of the circular economy related to building construction are becoming increasingly important. Zug Estates has already addressed this topic in depth in the past and implemented pioneering projects, particularly with respect to wood-based construction. Going forward, Zug Estates plans to continue to pursue ambitious goals and promote an exchange of information within the sector. To that end, Zug Estates joined eleven other large companies and organisations to sign the “Circular Building Charta” in June 2023.

Our buildings and sites will shape the way people live for generations to come. We focus not only on transformation projects such as the living space at Metalli, but are also responsible for existing sites and properties. We have gone to great lengths in the past few months to improve the quality of the outdoor areas at the Suurstoffi site even further and to create spaces where people enjoy spending time.

Full details of our sustainability strategy can be found at zugestates.ch/en/sustainability.

Confirmation of the 2023 outlook
The acquisitions made in 2022 and 2023, a decrease in vacancy-related loss of income, indexation-related increases in rental income and changes made to the reference interest rate will lead, also from a full-year perspective, to an increase in property income despite the fact that renovation-related vacancies at a few of the rentable spaces in the Metalli shopping mall will slow this increase down somewhat. This improvement in income is offset by higher financing costs.

In the hotel & catering segment, we anticipate that business will remain stable. Losses of income are arising in connection with the full refurbishment of the Bären property (since April 2023) as well as the renovation of all catering and conference spaces at Parkhotel (from June to the end of October). We therefore expect income to be on a par with the previous year. Ongoing reconstruction work and considerably higher electricity costs, however, will weigh on the GOP margin and cause a year-on-year decline in the results.

All in all, we expect net income excluding revaluation and special effects to exceed CHF 32.0 million for the 2023 financial year.

Report of 25 August 2023
The detailed report on the first half of 2023 can be found on our website: https://zugestates.ch/en/downloads

A video conference will be held in German at 10 a.m. today. CEO Patrik Stillhart and CFO Mirko Käppeli will present the half-year results for 2023 and then respond to questions. The associated presentation will be available on our website from 9 a.m. at: https://zugestates.ch/en/downloads

Please register for the conference via the link below. We look forward to your participation. https://zugestates.ch/en/stories/registration-media-conference

Important dates:

6 September 2023 | Sustainability Forum
21 February 2024 | Publication of the 2023 Annual Report
9 April 2024 | General meeting of shareholders

For further information, please contact:

Patrik Stillhart, CEO

T +41 41 729 10 10, ir@zugestates.ch

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the Zug region. It focuses on central sites that are suitable for a wide range of uses and allow sustainable development. The real estate portfolio is comprised mainly of the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF1.83billion on 30 June 2023. Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, security number: 14 805 212).

Zug Estates Holding AG | Industriestrasse 12 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch



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Your contact

Philipp Hodel

Head of Corporate Communication

Zug Estates AG

Baarerstrasse 18

CH-6300 Zug

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