Press releases

Zug Estates provides regular notifications about news that is relevant to the share price or other current news. Ad hoc announcements relate to reports issued in accordance with Art. 53 of the Listing Rules of SIX Exchange Regulation AG.
SUBSCRIBE TO PRESS RELEASES (INCL. AD HOC ANNOUNCEMENTS)

Ad hoc announcement pursuant to article 53 Listing Rules
Zug, 26 August 2022

  • Net income excluding revaluation and special effects rises by 8.6% to CHF 16.8 million, up from CHF 15.4 million in the previous year
  • Net income comes to CHF 27.9 million, compared with CHF 32.7 million in the previous year
  • Increase in property income of 2.3% in the first half of the year
  • Market value of the portfolio as a whole goes up by 0.8% to CHF 1.71 billion
  • Vacancy rate falls from 4.0% as at 31 December 2021 to 3.8% as at 30 June 2022
  • Further reduction in greenhouse gas emissions to just 0.9 kg CO2eq per m2 of the energy reference area

The first half of 2022 was shaped by the Ukraine crisis and its impact on the economic environment: sharply increasing commodity and energy prices, as well as rising inflation and interest rates. At the same time, many sectors experienced a strong recovery once coronavirus restrictions were lifted, leading to robust demand – particularly for office and commercial space – as well as rising sales in the hotel & catering segment.

Rental income went up in the first half of 2022 and the vacancy rate fell further. In the hotel & catering segment, sales increased noticeably from April 2022 onwards, reaching a level in May and June that was comparable with sales before the COVID-19 pandemic.

At CHF 27.9 million, net income was CHF 4.8 million – or 14.6% – below the previous year’s level of CHF 32.7 million, which included a gain on sale before tax of CHF 7.3 million resulting from the sale of the property at Hofstrasse 1a/b in Zug. After adjustment for revaluation and special effects, net profit rose by CHF 1.4 million, or 8.6%, from CHF 15.4 million to CHF 16.8 million. The main reasons for this strong performance were the higher property income, increased income from the hotel & catering segment, and lower property expenses.

Increase in operating profit thanks to successes in both segments
Property income went up by CHF 0.6 million, or 2.3%, from CHF 29.8 million to CHF 30.4 million. Income from new rental agreements concluded in the previous year was incorporated into the result throughout the period. Unlike in the corresponding period of the previous year, there were no COVID-19-related lockdowns. As a result, income from parking at the Metalli Living Space complex also improved in line with the increase in retail customers.

Income generated by the hotel & catering segment went up considerably – by CHF 3.8 million, or 142.0%, from CHF 2.6 million to CHF 6.4 million. While the negative effects of the COVID-19 pandemic had an impact on the whole of the corresponding period in the previous year, an encouraging recovery began in 2022 following a mixed first quarter. As a result, gross operating profit (GOP) also increased – from 8.1% to 38.0%. In addition, the economic losses sustained during the pandemic were mitigated somewhat in the first half of the 2021 by the one-off payment of a non-returnable COVID-19 grant in the amount of CHF 2.1 million.

In all, operating revenue rose by CHF 2.4 million, or 6.5%, from CHF 36.1 million to CHF 38.5 million.

At CHF 3.2 million, property expenses were down CHF 0.8 million, or 19.9%, on the prior-year figure of CHF 4.0 million. For individual, larger maintenance measures that are planned – such as the partial renovation of the facade at the Metalli Living Space complex – the more expensive work will not be carried out until the second half of the year.

Staff costs went up by CHF 1.0 million, or 16.1%, from CHF 6.0 million to CHF 7.0 million. This was because of increasing activities in the hotel & catering segment, as well as lower short-time working compensation.

Portfolio value slightly up
The market value of the portfolio as a whole increased slightly – by CHF 13.3 million, or 0.8%, from CHF 1701.0 million as at 31 December 2021 to CHF 1714.3 million as at 30 June 2022. This was primarily due to revaluation effects. Revaluation gains of CHF 12.7 million can be attributed on the one hand to the successful letting of property S6 at Suurstoffi and on the other hand to a slight reduction in the discount rates for individual properties used for residential purposes. At CHF 12.3 million, revaluation gains were at a comparable level in the corresponding period a year earlier.

Significant reduction in the vacancy rate up to the end of 2022
Some new letting resulted in a reduction in the vacancy rate in the first half of 2022 – to 3.8% as at 30 June 2022 (4.0% as at 31 December 2021). The weighted average unexpired lease term (WAULT) of 6.0 years (6.5 years as at 31 December 2021) came to rest at a very high level for the industry.

The conclusion of a ten-year rental agreement with Utopia Music AG for property S6 at Suurstoffi will mean another significant reduction in the vacancy rate in the second half of the year. It will be below 2% at the end of 2022. In July 2022, the company – which is currently based in Zug – began renting the whole of property S6 with 4,500m2 of rentable space.

Overall, demand for space proved to be robust in the first half of 2022. Rental agreements for a total of 10,500m2 and with rental income of around CHF 4.6 million p.a. were extended or concluded for the first time in the first half of the year. The agreements concluded concern both office space at Suurstoffi and the City Center site, as well as retail space at the Metalli complex. Demand for residential space remains extremely robust.

Solid equity ratio
At CHF 559.6 million, interest-bearing debt was virtually unchanged in the first half of 2022 from 31 December 2021 (CHF 561.1 million), despite the payment of a dividend of CHF 19.1 million. This was due to continued low investment activity. At 58.6%, the equity ratio is still very solid (58.4% as at 31 December 2021).

At the beginning of the year, a maturing conventional bond of CHF 100.0 million was replaced with another green bond in an interest rate environment that at the time was still much more attractive. The term is slightly longer than seven years with a coupon of 0.75%. Zug Estates is thus the first listed Swiss real estate company to switch its entire bond portfolio to sustainable financial products.

As a result, the average financing term increased from 3.6 years as at 31 December 2021 to 4.4 years as at 30 June 2022, with the average interest rate unchanged at 1.3%.

Project development with a focus on the Metalli Living Space complex
Work on the Metalli Living Space complex continued apace in the first half of 2022. The draft development plans are available for both Metalli and Bergli, and the environmental impact assessment is well advanced. The cantonal preliminary review of the two development plans is due to be launched in September 2022. Based on the current schedule of the City of Zug for the subsequent approval process, we now expect the development plans to be approved in summer 2024 and construction to start in 2026 at the earliest.

Further reduction in carbon emissions and replacement of the last oil heating system in the portfolio
Together with the Half-Year Report 2022, Zug Estates is publishing its Sustainability Report in accordance with GRI standards. We were again able to reduce our greenhouse gas emissions compared with the previous year, halving them from 1.8 kg to 0.9 kg CO2eq per m2 of the energy reference area. This was made possible by the conversion of nine other buildings at the City Center site. In connection with this, Zug Estates removed the last oil heating system in its portfolio in June 2022.

In future, we will be placing more of a focus on increasing production of our own energy, as well as consuming regional, renewable energy. Between 1 April 2021 and 31 March 2022, the solar panels at Suurstoffi produced 1,140 MWh of energy, equivalent to the average consumption of 250 houses. The installation of solar panels at the City Center site will further increase production of our own energy. The first step will be taken in autumn 2022 when six houses in the Haldenhof area will be equipped with solar panels, with the energy generated being shared by the residents of those houses (under a so-called ZEV arrangement).

Sustainable goals will play an important role in the further development of the Metalli Living Space complex in the centre of Zug. Thanks to Circulago, business is already virtually carbon-free. We are therefore focusing on the areas of biodiversity and recycling. However, social topics such as creating a diverse range of cultural and leisure activities and building affordable residential space are also at the heart of our plans.

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

Positive outlook for 2022
We also expect rising rental income for the year as a whole in the real estate business unit. The effects on earnings from the newly completed rental agreement for property S6 will not be felt until 2023. However, we expect the vacancy rate to be below 2% at the end of 2022. We expect property expenses to be slightly higher in the second half of the year than in the first.

In the hotel & catering segment, we are cautiously optimistic for the second half of the year and expect a further recovery provided there is no repeat of the negative effects on international business travel associated with a rise in COVID-19 cases and the geopolitical situation does not change.

We still expect net income excluding revaluation and special effects to exceed CHF 30 million.

Report of 26 August 2022

The detailed report on the first half of 2022 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 2022 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:

30 August 2022
24 February 2023
6 April 2023

Sustainability Forum
Publication of Annual Report 2022
Ordinary General Meeting

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 which are suitable for a wide range of uses and allow sustainable development. The real estate portfolio comprises the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the two leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.71 billion as at 30 June 2022.
Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212).

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



show this

Ad hoc announcement pursuant to article 53 Listing Rules
Zug, 10 June 2022

Zug Estates AG has signed a ten-year rental contract with Utopia Music AG for space totalling 4,500 m2. Currently based in Zug, the company will start renting the entire Suurstoffi 6 building on the Suurstoffi site in Risch Rotkreuz in July 2022. This latest agreement will amount to a significant reduction in the vacancy rate for Zug Estates.

Alain Baumgartner, Head of Portfolio Management at Zug Estates AG, is delighted to be welcoming the newest addition to Suurstoffi: “Utopia Music AG is one of the world’s leading music fintech companies and their innovative spirit tells me they will fit in perfectly with the other tenants at the site.”

Markku Mäkeläinen, CEO Utopia Music, added: “Utopia is on a mission to create a better world for the music industry and a key part of this journey is awareness of our environmental impact. Being one of the most environmentally friendly buildings in Switzerland, Suurstoffi 6 is aligned with our company values and provides our people with a comfortable and ambient space to collaborate and innovate.”

Suurstoffi 6 is a wooden hybrid building with seven floors. With construction work having finished back in 2020, it’s now one of three buildings on construction site 1, which is also home to the Zug Rotkreuz campus of Lucerne University of Applied Sciences and Arts. The modern wooden construction meets the most stringent of sustainability requirements. Having been designed to keep the use of resources to a minimum, the building can be operated with almost zero carbon emissions being generated thanks to the site’s own energy system.

Suurstoffi site
The Suurstoffi site in Risch Rotkreuz is an integrated, traffic-free neighbourhood with a combination of living, working and recreational facilities. It accommodates 1,400 residents and almost 2,000 students and provides space for over 2,500 jobs.

About Utopia Music
Founded in 2016, Utopia Music is a Swiss Music fintech company levelling up the music industry through clear, transparent and reliable data-based solutions. Utopia now has a presence in over 10 cities worldwide and 600 employees. Utopia’s mission is to create a better world for music. In Utopia, the industry sees market opportunities live. Investors elevate music catalogues into a real asset class. Collection societies track more and spend less. Labels, publishers and distributors simplify and enhance their business. And everyone gets “Fair Pay for Every Play”.

Picture
The Suurstoffi 6 is a wooden hybrid building with seven floors.
https://zugestates.ch/assets/img/png/Suurstoffi_S6.jpg

Important dates:

26 August 2022
30 August 2022
24 February 2023

Publication of Half-Year Report 2022
Sustainability Forum
Publication of Annual Report 2022

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 which are suitable for a wide range of uses and allow sustainable development. The real estate portfolio comprises the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the two leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.7 billion as at 31 December 2021.
Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212).

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



show this

Ad hoc announcement pursuant to article 53 Listing Rules
Zug, 12 April 2022

The tenth ordinary general meeting of shareholders of Zug Estates Holding AG was held today at Theater Casino Zug and attended by 203 shareholders, representing a total of 67.5% of share capital with voting rights. All proposals by the board of directors were approved.

Specifically, the general meeting resolved that a total of CHF 19.1 million is to be paid out to shareholders for the 2021 financial year. The ordinary gross dividend (subject to withholding tax) amounts to CHF 3.75 per series A registered share and CHF 37.50 per series B registered share. A net dividend of CHF 2.44 per series A registered share and CHF 24.38 per series B registered share remains following payment of the Swiss withholding tax of 35%. The net dividend amount will be paid out starting Wednesday, 20 April 2022 (payment date).

All members of the board of directors who were proposed for re-election were confirmed for a further one-year term of office. Dr Beat Schwab was also confirmed as chairman of the board of directors.

Armin Meier and Johannes Stöckli were elected as members of the Nomination and Compensation Committee.

In a consultative vote, the general meeting of shareholders declared its agreement with the compensation report and approved the remuneration to the members of the board of directors and Group Management.

The next ordinary general meeting of shareholders of Zug Estates Holding AG will be held on 06 April 2023.

Important dates:

20 April 2022
26 August 2022

24 February 2023

Distribution to shareholders (payment date)
Publication of Half-Year Report 2022
Publication of Annual Report 2022

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 which are suitable for a wide range of uses and allow sustainable development. The real estate portfolio comprises the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the two leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.7 billion as at 31 December 2021.
Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212).

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



show this

Ad hoc press release pursuant to article 53 Listing Rules
Zug, 4 March 2022

  • Net income excluding revaluation and special effects comes to CHF 31.8 million (previous year: CHF 25.9 million).
  • Net income amounts to CHF 75.6 million (previous year: CHF 32.3 million).
  • Property income is up 3.9% to CHF 60.0 million.
  • The vacancy rate is down from 5.0% to 4.0%.
  • The portfolio's market value rose by 2.8%, from CHF 1.65 billion to CHF 1.70 billion.
  • The board of directors will propose to the general meeting of shareholders that the ordinary dividend be raised by 10.3%, from CHF 34.00 to CHF 37.50, per series B registered share.

Zug Estates Group has achieved strong annual results thanks to a high-quality portfolio that is broadly diversified in terms of use.

The property portfolio of the Zug Estates Group performed quite well in the 2021 financial year. Property income rose yet again and the vacancy rate was reduced from 5.0% to 4.0%. In the hotel & catering segment, the environment remained challenging in 2021 due to the consequences of the COVID-19 pandemic. Nevertheless, sales generated through catering and hotel operations were up slightly over the previous year.

This resulted in net income of CHF 75.6 million in the 2021 financial year, which is CHF 43.3 million or 134.2% above the prior-year figure of CHF 32.3 million. This substantial year-on-year increase is attributable in particular to positive revaluation effects as well as the successful sale of the Hofstrasse 1a/b property in Zug. Net income excluding revaluation and special effects was also boosted considerably, up CHF 5.9 million or 23.0% to CHF 31.8 million (previous year: CHF 25.9 million).

Net income increased due to higher property income
Property income rose by CHF 2.2 million or 3.9%, from CHF 57.8 million to CHF 60.0 million in 2021. This increase was attributable to both the full-period effect of leases concluded in the previous year and by the significant reduction in vacancy rates. Whereas rent reductions of CHF 0.7 million had to be granted in connection with the COVID-19 pandemic in the previous year, the effects of these reductions were negligible in 2021.

In a persistently challenging environment still shaped by the COVID-19 pandemic, hotel & catering income rose at a low level by CHF 1.4 million or 20.1%, from CHF 7.0 million to CHF 8.4 million. The easing of travel restrictions in the second half of 2021 helped in this respect. Sales were down again towards the end of the year as the omicron variant spread. Persistently robust demand for our Serviced City Apartments and strict cost management resulted in a gross operating profit (GOP) of 25.8% (previous year: 9.1%). The economic losses were also mitigated somewhat through the one-time payment of a COVID-19 non-repayable contribution in the amount of CHF 2.1 million. The corresponding effects are reported under other operating revenue.

The sale of the last condominiums in the Aglaya project in Rotkreuz still generated revenue of CHF 72.5 million in the previous year. As expected, the cessation of this revenue reduced operating revenue by CHF 66.2 million or 47.1%, from CHF 140.4 million to CHF 74.2 million.

A reduction in renovation work performed at the Metalli complex in Zug also resulted in lower property expenses, which were down by CHF 1.4 million or 15.3%, from CHF 9.0 million to CHF 7.6 million, as expected.

The effects mentioned above reduced operating income before depreciation and revaluation from CHF 49.6 million to CHF 46.9 million, a CHF 2.7 million or 5.4% decline.

2021 brought a revaluation gain of CHF 42.4 million compared to a revaluation loss of CHF 2.2 million in the previous year. The sale of the final property outside our two sites also generated a gain on sale before tax of CHF 7.3 million. No investment properties were sold in the previous year.

EBIT rose considerably by CHF 49.5 million or 112.9%, from CHF 43.7 million to CHF 93.2 million, as a result.

With average interest rates on interest-bearing financial liabilities remaining unchanged, financing costs were capitalised at a lower rate, which caused financing costs to increase by CHF 0.3 million or 3.9%, from CHF 7.2 million to CHF 7.5 million.

Portfolio value increases to CHF 1.7 billion
The portfolio's market value rose by 2.8%, from CHF 1.65 billion to CHF 1.70 billion, due to investments and revaluation effects. A total of CHF 8.6 million was invested in the portfolio's development during the reporting period (previous year: CHF 36.7 million). The positive revaluation effect of CHF 42.4 million, which corresponds to some 2.7% of value of all investment properties in the portfolio as at 31 December 2021, is in large part attributable to the average 16-basis-point reduction in the discount rate triggered by the market.

Vacancy rate reduced to 4.0%
Even though we are seeing a certain amount of reluctance regarding the leasing of large-scale office space, the company achieved some encouraging marketing successes the year under review. Whereas the completion of the S6 building on the Suurstoffi site in Risch-Rotkreuz had caused the vacancy rate to rise to 5.0% as at 31 December 2020, it was down to 4.0% as at 31 December 2021. The weighted average unexpired lease term (WAULT) of 6.5 years (6.8 years as at 31 December 2020) remained high for the industry.

Residential products have hardly reported any vacancies for years and even the retail and catering spaces enjoy very brisk demand. New leases for retail space were concluded with the brands Orell Füssli, McOptic and Otto's Beauty at the Metalli mall, for example, as well as one lease for a catering operation at the Suurstoffi site. What's more, the Secret Garden pop-up restaurant has invigorated the restaurant portion of the City Garden Hotel since May 2021, while the Metalli complex saw the Miss Miu themed restaurant open its doors in August 2021.

Leases for space totalling more than 12'500m2 and rental income of more than CHF 4.8 million p. a. were renewed or extended during the year under review.

The longest lease extensions are those for the office spaces at the Suurstoffi site used by Novartis Pharma Schweiz AG, which signed a lease extension for a smaller 4'800m2 office space with a term that extends until at least 31 December 2027, as well as the office spaces at the Metalli complex used by Hoerbiger Holding AG. Additionally, new leases were concluded for around 1'000m2 of office space at the Suurstoffi site and 1'500m2 at the City Center site.

Sustainability reporting expanded and nearly CO2-free operation
Zug Estates has been developing, realising and operating its properties and sites in line with sustainable principles for more than ten years. During this time, Zug Estates has succeeded in implementing important projects and reaching vital milestones both with respect to reducing its CO2 emissions and on topics such as materials, biodiversity and mobility. In addition to its environmental goals, Zug Estates also pursues corporate governance objectives, as can be seen in the Group's first sustainability report prepared in line with GRI standards; this report was published in September 2021.
https://www.zugestates.ch/en/sustainability

With its completion of the new buildings at the Suurstoffi site as well as the connection of the Metalli complex to the Circulago lake water district, Zug Estates has been able to slash its greenhouse gas emissions by 90%, from 17.3 to 1.8 kg per square metre of energy reference area, between 2010 and 31 March 2021. That positions Zug Estates as a leader in Switzerland. Another nine properties were connected to the Circulago lake water district in the year under review, which will reduce its CO2 emissions even further. Connecting the remaining properties by 2023 will enable Zug Estates to operate its entire portfolio with nearly no CO2 emissions.

Metalli Living Space development project
The City of Zug is currently preparing new development plans based on the requests for changes to development plans for both Metalli and Bergli that were submitted in September 2020 as well as the result of the joint planning process for the Metalli Living Space. The plan is to submit these for preliminary examination at cantonal level in the summer of 2022. Zug Estates expects the legally binding, updated development plans to be ready in the second half of 2023. Construction is likely to begin in 2025. The plan is to implement the project in stages while maintaining operations to the greatest extent possible.

With a view to the upcoming architectural competition and while development plans are being drawn up by the City of Zug, Zug Estates is revisiting the positioning and design of the building's various use segments and parts. When developing the Metalli Living Space, Zug Estates intends to preserve those elements that work while also creating ample space for something new.

Very solid equity ratio
Low investments, good annual results and the divestment of an investment property raised the equity ratio from 56.3% to an extremely solid 58.4% in the reporting period.

Interest-bearing debt declined by CHF 30.7 million or 5.2% during the period under review, from CHF 591.8 million to CHF 561.1 million. Interest-bearing debt as a percentage of total assets therefore amounted to 33.8% compared to 36.4% in the previous year. The average maturity of this debt amounted to 3.6 years (previous year: 4.3 years), whereby the average interest rate for the period for interest-bearing debt has remained unchanged at 1.3%.

A conventional bond in the amount of CHF 100.0 million that was due to expire was replaced by another green bond on 17 February 2022. That makes Zug Estates the first listed real estate company in Switzerland to have a bond portfolio comprised exclusively of green financing products. The new bond has a term of just over seven years and a coupon of 0.75%.

Ordinary dividend raised
In line with the announced gradual increase in the ordinary 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 10.3%, from CHF 34.00 to CHF 37.50 per series B registered share. The special dividend of CHF 10.00 per series B registered share that had been distributed in the previous year in connection with the promotional profit earned through the sale of the condominiums in the Aglaya project in Rotkreuz is no longer applicable.

Outlook for 2022
In the real estate business unit, we expect the market for leased space to remain intact in 2022 and for demand for our leased products to reflect this. Since no major leases are ending in the current year, we expect property income to increase slightly in 2022 as well.

Developments in the hotel & catering segment hinge largely on how the COVID-19 pandemic plays out. Compared to the previous year, we anticipate better capacity utilisation and an increase in total income. The results in the hotel & catering segment will be lower, though, due to the elimination of the COVID-19 non-repayable contribution under other operating revenue.

All in all, we expect net income excluding revaluation and special effects to slightly exceed CHF 30 million for the 2022 financial year.

Report dated 4 March 2022
You will find the detailed report on the financial year on our website:
https://www.zugestates.ch/en/downloads

Annual Report 2021

A virtual financial results press conference will be held at 10 a.m. today in German. Patrik Stillhart (CEO) and Mirko Käppeli (CFO) will present the 2021 annual results, after which they will be available to answer questions.

Please use the link that follows to sign up for the conference. We look forward to greeting you. https://www.zugestates.ch/en/stories/registration-annual-media-conference

Important dates:

12 April 2022
20 April 2022
26 August 2022

General meeting of shareholders 2022
Distribution to shareholders (payment date)
Publication of half-year results 2022

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 which are suitable for a wide range of uses and allow sustainable development. The real estate portfolio comprises the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the two leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.7 billion as at 31 December 2021.
Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212).

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



show this

Press release
Zug, 19 January 2022

Zug Estates Holding AG today issued a second green bond for CHF 100 million. This means that the bond portfolio consists entirely of financial instruments focused on sustainability.

Having been the first Swiss real estate company to issue a green bond back in September 2019, Zug Estates today issued another green bond for CHF 100 million, with a coupon rate of 0.75%, a term of 7.17 years and payment due on 17 February 2022. In line with the Zug Estates Group's sustainability strategy, this second green bond means that the Zug Estates bond portfolio consists entirely of financial instruments focused on sustainability.

There has been widespread interest in today's placement amongst institutional investors because all the funds have been invested directly into the Suurstoffi site in Risch Rotkreuz, which meets the most stringent of sustainability requirements and is already almost carbon-free.

Zurich Cantonal Bank and UBS AG acted as joint lead manager/joint book runner for the green bond issue. The application for admission to trading on the SIX Swiss Exchange is being submitted.


Disclaimer:
This media release and the information contained herein may not be published, distributed or transmitted to the United States (USA) or given or transmitted to US persons (including legal entities) or to media with a general circulation in the USA. Any violation of these restrictions may constitute a violation of U.S. securities laws. This bond will not be publicly offered for sale outside Switzerland. This media release does not constitute an offer to buy or subscribe for securities; it is neither an issue prospectus within the meaning of Article 35 FinSA nor a listing prospectus within the meaning of the SIX Swiss Exchange Listing Rules.

Important dates:

4 March 2022
12 April 2022

26 August 2022

Publication of the Annual Report 2021
General meeting of shareholders

Publication of Half-Year Report 2022

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 which are suitable for a wide range of uses and allow sustainable development. The real estate portfolio comprises the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the two leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.67 billion as at 30 Juni 2021.
Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212).

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



show this

Press release
Zug, 20 December 2021

Irene Gangwisch (49) is taking over the management of Hotelbusiness Zug AG (HBZ) from Stefan Gareis on 1 February 2022.

As the new Director of Hotelbusiness Zug AG, Irene Gangwisch will manage the Parkhotel Zug and the City Garden Hotel. She has long and extensive experience in the hotel and catering industry, and spent the last three years as General Manager of the prestigious 4-star Sorell Hotel Zürichberg. Prior to that, she was Managing Director and Board Delegate of the AlpinTrend Hotel & Gastro Group and Director of the Hotel Lenzerhorn Spa & Wellness in Lenzerheide.

As announced by Hotelbusiness Zug AG in September 2021, the current and long-standing Director Stefan Gareis has decided to take on a new challenge. Now that an ideal successor in Irene Gangwisch has been found, he will relinquish the management of Hotelbusiness Zug AG at the end of January 2022. The Board of Directors is grateful to Stefan Gareis for his almost 20 years of service. He has led Hotelbusiness Zug AG with great commitment and has played an important role in the successful development of this business segment of the Zug Estates Group.

Irene Ganwisch (.jpg)

Important dates:

4 March 2022
12 April 2022

Publication of the Annual Report 2021
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 which are suitable for a wide range of uses and allow sustainable development. The real estate portfolio comprises the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the two leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.67 billion as at 30 Juni 2021.
Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212).

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



show this

Press release
Zug, 30 September 2021

The Zug Estates Group announced in its most recent sustainability report that it has reduced its greenhouse gas emissions from 17.3 kilogrammes (2010) to its current level of 1.8 kilogrammes per square meter of energy reference area, making the Group a leader in the Swiss real estate industry. Nearly carbon-free operation of all properties will become a reality in the next two years.

Zug Estates is well aware of its responsibility with respect to climate change and has set itself the goal of operating its entire real estate portfolio free of carbon emissions. Not only newly constructed buildings but each and every property in the portfolio will be optimised to meet this goal. With that, the real estate company goes well beyond the requirements of both the Federal Council's energy strategy and the Paris Agreement. These calculations take into account greenhouse gas emissions that arise in connection with heating and cooling systems as well as in the production of operational current. They also include emissions from the Group's own fleet of company vehicles.

Direct emissions approaching zero

Since 2010, the Group has reduced its greenhouse gas emissions (Scope 1 and 2) from 17.3 to the current level of 1.8 kilogrammes per square meter of energy reference area, better than reported by any other company in the Swiss real estate sector. By 2023, the entire portfolio is to be operated nearly free of carbon emissions and without the need to import any additional energy from outside the region, an ambitious goal the Group plans to achieve by connecting additional properties from the Zug City Centre site to the Circulago lake water district. Not only that, but the company's own fleet of vehicles will be transitioned completely to e-vehicles by the end of 2023 and the production of solar energy (electricity and heat) will be further expanded on the company's own sites at the same time. Additional electricity required for the Group's operations will be obtained from renewable sources in the region.

Scope 1 comprises the emissions that arise through the use of fuel oil and natural gas to generate heat as well as from the use of gasoline and diesel in the company's own vehicles. Scope 2 comprises emissions that arise in connection with the generation of purchased electricity as well as the heating and cooling capacity purchased from the Circulago lake water district. Emission data refer to the period from 1 April to 31 March of the subsequent year.

Greater transparency and better comparability

Zug Estates' sustainability strategy focuses not only on reducing its carbon emissions, rather it has also been pursuing projects and objectives in the areas of materials, biodiversity and water for many years now. Beyond the scope of these environmental topics, issues related to the areas of social affairs and corporate governance are becoming increasingly important, as well. In an effort to promote transparency and comparability, Zug Estates is publishing its first-ever sustainability report in accordance with the internationally recognised GRI (Global Reporting Initiative) standards this year. The scope of the report has also been expanded. The new sustainability report covers the entire range of ESG criteria, which refer to environmental, social and corporate governance factors. Another change is that the report will mainly be published digitally on the Group's website at https://zugestates.ch/nachhaltigkeit.

Additional information

Sustainability Report by the Zug Estates Group in accordance with GRI standards (29 September 2021)

Important dates:

4 March 2022
12 April 2022

Publication of the Annual Report 2021
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 which are suitable for a wide range of uses and allow sustainable development. The real estate portfolio comprises the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the two leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.67 billion as at 30 Juni 2021.
Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212).

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



show this

Ad hoc press release pursuant to article 53 Listing Rules
Zug, 27 August 2021

  • Net income excluding revaluation and special effects increases 29.6% to CHF 15.4 million (previous year: CHF 11.9 million)
  • Net income amounts to CHF 32.7 million (previous year: CHF 8.3 million)
  • Property income up 5.6% during first half of year
  • The portfolio's market value rose 1.0% to CHF 1.67 billion
  • We expect net income excluding revaluation and special effects for the financial year as a whole to be higher year-on-year

Zug Estates generated extremely solid overall results in the first half of 2021. The impact of the COVID-19 pandemic is still clearly evident in the hotel & catering segment.

The first half of 2021 continued to be influenced by the impact of the COVID-19 pandemic. The next government-imposed lockdown forced a great many of our catering and retail tenants to temporarily close their businesses. In the hotel & catering segment, the mandated closures of catering services as well as the substantial decline in international business travel caused sales to plummet.

Fortunately, this lockdown was less restrictive than it had been in the previous year. Our tenants additionally benefited from ongoing government support measures. Property income rose further, especially as a result of rent increases from rental agreements that had been concluded in previous years. The first half of the year also featured the successful sale of the property at Hofstrasse 1a/b in Zug.

Net income was up CHF 24.4 million to CHF 32.7 million in the first half of 2021, mainly as a result of sales and revaluation effects. After adjustment for revaluation and special effects, net profit rose 29.6%, from CHF 11.9 million to CHF 15.4 million.

Increase in net income as a result of higher property income
The full-period effect of and rent increases from rental agreements that had largely been concluded in previous years as well as the minor nature of the negative effects of the COVID-19 pandemic resulted in a 5.6% increase in property income of CHF 29.8 million (previous year: CHF 28.2 million).

Restrictions in international business travel as well as the catering industry's second lockdown caused income generated by the hotel & catering segment to decline by CHF 1.0 million, from CHF 3.6 million to CHF 2.6 million. Robust demand for our serviced city apartments as well as strict cost management caused gross operating profit (GOP) to increase slightly to 8.1% (previous year: 7.8%). In addition, the economic losses were mitigated somewhat by the one-off payment of a non-returnable COVID-19 grant in the amount of CHF 2.1 million.

The sale of the last property outside our two sites resulted in a gain on sale before tax of CHF 7.3 million. No investment properties had been sold in the previous year. The sale of the last condominium apartments in the Aglaya project in Rotkreuz, however, resulted in a promotional profit before tax of CHF 9.5 million in the first half of 2020.

As expected, operating revenue declined from CHF 105.4 million to CHF 36.1 million due to the absence of revenue generated through the sale of promotional properties.

A lower level of borrowing costs eligible for capitalisation led to a slightly higher negative financial result of CHF 3.7 million (previous year: CHF 3.5 million) with the average interest rate on interest-bearing debt unchanged at 1.3%.

Portfolio value up slightly at a somewhat lower vacancy rate
The portfolio's market value rose slightly to CHF 1.67 billion as at 30 June 2021 (31 December 2020: CHF 1.65 billion). The real estate portfolio's valuation was raised by a total of CHF 12.3 million, which corresponds to approximately 0.8% of the value of all investment properties in the portfolio as at 30 June 2021; this increase is largely attributable to the reduction in the discount rates. There was a revaluation loss of CHF 13.6 million in the prior-year period.

Last year's completion of building S6 on the Suurstoffi site caused the vacancy rate to increase to 5.0% as at 31 December 2020. The vacancy rate as at 30 June 2021 remained nearly unchanged at 4.8%, which is primarily attributable to initial vacancies in the Suurstoffi building. After adjustment for initial vacancies, the vacancy rate declined from 1.5% as at 31 December 2020 to 1.3% as at 30 June 2021. The weighted average unexpired lease term (WAULT) of 6.5 years (6.8 years as at 31 December 2020) came to rest at a very high level for the industry.

Demand for both residential products as well as the retail and catering spaces in our portfolio remains high. The first half of 2021 saw new leases concluded with Orell Füssli Thalia AG and McOptic (Switzerland) AG for retail space at the Metalli complex, for example, as well as a new lease for space at the Suurstoffi site, which will be used for a catering business. We are seeing a certain amount of restraint with respect to office space, particularly when it comes to leases for large office facilities. Lease extensions or new leases were signed for a total of around 1'500 m2 in office space during the period under review. Additionally, Novartis Pharma Schweiz AG opted to remain at the Rotkreuz location long term and signed a lease renewal agreement for a smaller office space of around 4'800 m2 and a term that extends until at least 31 December 2027. The remaining office space of 3'700 m2 will become vacant at the start of 2023 and has a very high-quality fit-out.

Solid equity ratio
Due to the substantial decline in investment activities, interest-bearing debt dropped from CHF 591.8 million to CHF 581.4 million during the first half of 2021. Accordingly, the equity ratio rose slightly from 56.3% to 56.7%, which is a very solid number for the industry. The debt has an average maturity of 3.9 years (4.3 years as at 31 December 2020).

Project development with a focus on the Metalli Living Space
The reference project was prepared in 2020 based on the results of the planning process for the Metalli Living Space conducted jointly with the City of Zug. Requests for changes to the development plans for both Metalli and Bergli were submitted to the City of Zug in September 2020. The City of Zug is currently drafting the development plans. At the same time and in view of the upcoming architectural competitions, Zug Estates is taking a more in-depth look at the positioning and design of the planned use categories and building parts. The legally binding, modified development plans are expected to take effect in 2023.

One major aspect of the Metalli Living Space development project is to breathe life into the City Center site. The goal is to preserve the tried-and-true elements of the space while also creating space for many new ones. New uses and concepts are already being implemented in line with this basic idea. From May to October 2021, the Secret Garden pop-up restaurant will add new life to the catering spaces in the City Garden, while the Miss Miu Korean-themed restaurant in the Metalli complex opened its doors in August 2021 and the ZugSPORTS festival was also held in August.

Work on the construction project for the last two buildings (S43/45) on the Suurstoffi site in Rotkreuz has been stepped up in the past few months. The project has already been approved for construction. Once all planning work has been finished, the decision about when to start construction will be reached taking demand and current market trends into consideration.

Systematic implementation of the sustainability strategy
Following the Metalli complex's connection to the Circulago lake water district in 2020, another nine properties in the City Center will be connected this year. This structural measure will put Zug Estates one major step closer to its goal of carbon-free operation of the entire portfolio. Given that the remaining properties are scheduled to be connected in 2022 and 2023, nearly carbon-free operation of the entire portfolio is within reach.

Zug Estates' sustainability strategy not only focuses on reducing carbon emissions and optimising its energy consumption, but also has the Group pursuing projects and goals related to materials, biodiversity and water. Apart from these environmental issues, the areas of social and corporate responsibility are also becoming increasingly important, which is why Zug Estates will be publishing its first sustainability report in accordance with GRI standards in September 2021.

Positive outlook for 2021
In the real estate business unit, we anticipate that rental revenue will increase for the year as a whole, an assessment we arrived at based on full-year rental income, some newly rented space and a reduction in the negative impact of the COVID-19 pandemic. Property expenses will be lower than in the previous year due to a reduction in the amount of renovation work performed at the Metalli site.

Despite the persistently high level of uncertainty regarding forecasts on the performance of the hotel & catering segment, the non-returnable COVID-19 grants already received suggest that both sales and GOP will be higher year-on-year.

For the 2021 financial year, we expect operating income before depreciation and revaluation to be lower year over year due to the absence of the special effect from the sale of the Aglaya apartments.

We expect net income excluding revaluation and special effects to be higher year-on-year.

Report from 27 August 2021
The detailed half-year report is available on our website:
https://www.zugestates.ch/en/mn/downloads.html

A video conference will be held in German at 10:30 a.m. today. CEO Patrik Stillhart and CFO Mirko Käppeli will present the half-year results 2021 and answer questions afterwards. The corresponding presentation will be available on our website as of 10:00 a.m.: https://www.zugestates.ch/en/mn/downloads.html

Please register for the conference using the link provided below. We look forward to your attendance. https://www.zugestates.ch/investor-relations/berichterstattung.html

Important dates:

29 September 2021
4 March 2022
12 April 2022

Publication of the Sustainability Report and Sustainability Forum
Publication of the Annual Report 2021
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 which are suitable for a wide range of uses and allow sustainable development. The real estate portfolio comprises the two sites in Zug and Risch Rotkreuz. The Group also runs a city resort in Zug incorporating the two leading business hotels Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.67 billion as at 30 Juni 2021.

Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker symbol: ZUGN; securities number: 14 805 212).

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



show this

Your contact

Philipp Hodel

Head of Corporate Communication

Zug Estates AG

Industriestrasse 12

CH-6300 Zug

Most frequent search terms: