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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Ad hoc announcement pursuant to Art. 53 LR
Zug, 6 April 2023

The 11th ordinary general meeting of shareholders of Zug Estates Holding AG was held today at the Theater Casino Zug and attended by 209 shareholders, representing a total of 76.4% of share capital with voting rights. The shareholders approved all proposals by the board of directors.

The general meeting resolved that a total of CHF 20.9 million is to be paid out to shareholders for the 2022 financial year. The ordinary gross dividend (subject to withholding tax) amounts to CHF 4.10 per series A registered share and CHF 41.00 per series B registered share. After payment of the Swiss withholding tax of 35%, a net dividend of CHF 2.67 per series A registered share and CHF 26.65 per series B registered share remains. The net dividend will be paid out as of 14 April 2023 (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. Armin Meier did not stand for re-election. Joëlle Zimmerli, owner and managing director of Zimraum GmbH, a social science planning office, was elected as a new member of the board.

Dr Beat Schwab was also confirmed as chairman of the board of directors. Johannes Stöckli was re-elected and Annelies Häcki Buhofer newly elected to 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 general meeting also approved all amendments to the articles of association, namely the anchoring of sustainability in the articles of association, the use of electronic aids for communication with shareholders, the possibility to hold general meetings virtually, the additional amounts for new group management members, the reduction of the maximum permissible additional mandates of members of the board of directors, as well as various formal adjustments to the new law.

The 12th ordinary general meeting of shareholders of Zug Estates Holding AG will be held on 9 April 2024.

Important dates:

14 April 2023
25 August 2023
6 September 2023

Distribution to shareholders (payment date)
Publication of Half-Year Report 2023
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 Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.83 billion on 31 December 2022. 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, 24 February 2023

Thanks to a broadly diversified portfolio in terms of uses and the major recovery in the hotel and catering sector, the last financial year was very positive for the Zug Estates Group. 

  • Excluding revaluation and special effects, the Group’s net income increased by 6.3% to CHF 33.8 million (up from CHF 31.8 million in the previous year). 
  • The vacancy rate dropped considerably from 4.0% to 1.6%. 
  • The real estate portfolio was expanded through a strategically interesting acquisition. 
  • The market value of the portfolio rose by 7.6% from CHF 1.70 billion to CHF 1.83 billion. 
  • The board of directors will propose a 9.3% increase in the ordinary dividend, from CHF 37.50 to CHF 41.00 per series B registered share, to the general meeting of shareholders. 
  • Armin Meier is stepping down from the board of directors. At the upcoming general meeting of shareholders, the board of directors will also propose that Joëlle Zimmerli is elected to the board of directors.

The economic environment changed considerably in 2022. Sharply increasing prices for raw materials and energy, rising inflation and higher interest rates prompted uncertainty. At the same time, many sectors experienced a highly dynamic development following the lifting of coronavirus restrictions. This led to a strong recovery in demand for leased space, particularly for office and commercial space, as well as strong growth in revenues at properties with hotels and catering operations.

Zug Estates generated very encouraging results in this market environment. Property income rose and the vacancy rate was reduced substantially. Revenues in the hotel & catering segment recovered markedly over the previous year, which had still been shaped strongly by the repercussions of the COVID-19 pandemic.

Net income of CHF 39.8 million was generated in the 2022 financial year. This was CHF 35.8 million or 47.3% below the prior-year figure of CHF 75.6 million, with the decline attributable in full to higher revaluation effects as well as the sale of the property at Hofstrasse 1a/b in Zug in the previous year. At CHF 33.8 million, net income excluding revaluation and special effects was up by 6.3% or CHF 2.0 million compared to CHF 31.8 million in the previous year.

Encouraging increase in operating revenue and key operating indicators
Property income of the Zug Estates Group rose by CHF 2.2 million or 3.7%, from CHF 60.0 million to CHF 62.2 million in 2022. Improvements to the bottom line were mainly achieved through further reductions in vacancies as well as additional revenue from the acquisition of the Renggli Group in the fourth quarter.

Hotel & catering income rose substantially from CHF 8.4 million in the previous year to CHF 14.7 million, a year-on-year increase of CHF 6.3 million or 75.3%. Whereas international travel restrictions connected to the COVID-19 pandemic had a major impact on the two previous years, the last six months of the reporting period brought a recovery that was better than expected. This produced year-end results that were nearly back to pre-pandemic levels. Gross operating profit (GOP) amounted to 37.9% compared to 25.8% in the previous year.

Operating revenue increased by CHF 5.9 million or 7.9%, from CHF 74.2 million to CHF 80.1 million.

Despite the increase in income, property expenses remained nearly on a par with the previous year, increasing just slightly by CHF 0.2 million or 2.2%, from CHF 7.6 million to CHF 7.8 million.

Operating income before depreciation and revaluation rose by 6.0% or CHF 2.8 million, from CHF 46.9 million to CHF 49.7 million.

The high occupancy rate meant that a revaluation gain of CHF 6.8 million could be booked again in 2022; this corresponds to around 0.4% of the value of all of all investment properties in the portfolio as at 31 December 2022. A flattening of the market trend due to a higher interest rate environment did not lead to any further reductions in the discount rate. As a result, the revaluation gain amounted to CHF 35.6 million, which was 84.0% below the previous year’s high figure of CHF 42.4 million.

The sale of a property outside our two sites in the previous year also generated a non-recurring gain on sale before tax of CHF 7.3 million.

Due to the revaluation and special effects mentioned, EBIT was down by CHF 40.2 million or 43.1%, from CHF 93.2 million to CHF 53.0 million.

With average interest rates remaining unchanged, financial expense rose slightly as a result of acquisitions from CHF 7.5 million to CHF 7.8 million, an increase of CHF 0.3 million or 3.5% over the previous year.

Portfolio expanded through the acquisition of Renggli Holding AG
On 2 November 2022, Zug Estates acquired 100% of the shares of ­Renggli Holding AG, domiciled in Zug, which owns a real estate portfolio valued at around CHF 110 million. The portfolio with a residential property share of nearly 50% includes a business property in Zug as well as a 19’000 m2 development site with residential and commercial properties in Rotkreuz that is directly adjacent to the Suurstoffi site. The acquired properties perfectly supplement the Zug Estates portfolio, which focuses on central, well-connected locations in the Canton of Zug. The site acquired in Rotkreuz, in particular, has attractive development potential.

The Group was also able to acquire another 0.75% co-ownership share of the Miteigentümergemeinschaft (MEG) Metalli in the second half of 2022. This increased the company's co-ownership share of MEG Metalli to 75.25%. A total of CHF 123.2 million was invested in the portfolio's ex­pansion and development during the reporting period (previous year: CHF 8.6 million). The portfolio’s market value rose by 7.6%, from CHF 1.70 billion to CHF 1.83 billion, due to investments made and revaluation effects.

Vacancy rate down substantially to 1.6%
The market for leased space saw dynamic development in 2022. Commercial leases for space totalling around 18’000 m2 and involving rental income of more than CHF 7.2 million p. a. were extended or concluded in 2022. This greatly reduced the vacancy rate from 4.0% as at 31 December 2021 to 1.6% as at 31 December 2022. At 6.3 years as at 31 December 2022 (previous year: 6.5 years), the weighted average unexpired lease term (WAULT) was still at a very high level for the industry.

The vast majority of new leases related to office space at the Suurstoffi site. One of these was the S6 property with 4’500 m2 of rentable space, which was leased to Utopia Music AG in the first half of 2022. In the second half of 2022, Amgen extended its lease by five years for two of four storeys, or around 2’000 m2 of space, at the S22 property. Follow-up leases have already been concluded with Gambit Consulting AG and Axians Informa Schweiz AG for the two storeys that Amgen relinquished as at 31 January 2023. Additionally, one floor of the S14 property was leased to GSK Consumer Healthcare Schweiz AG and space totalling around 2’300 m2 at the S2 and S41 sites was leased to the Lucerne University of Applied Sciences and Arts.

Further key steps in the implementation of the sustainability strategy
Zug Estates can look back on a successful year in terms of sustainability as well. Compared to the previous year, the Group reduced its greenhouse gas emissions by another 50%, from 1.8 kg to 0.9 kg CO2eq per square metre of energy reference area (measurement period until 31 March 2022). All but one property at the City Centre site have now been connected to the Circulago lake water district. That puts us another big step closer to our goal of being able to operate our entire portfolio free of greenhouse gas emissions. The acquisition of Renggli Holding AG will result in another slight temporary year-on-year increase in greenhouse gas emissions, yet in absolute terms, this figure will still stay at a very low level.

In addition to reducing its operational greenhouse gas emissions, Zug Estates has also set its sights on increasing the amount of self-generated electricity even further. During the period under review from 1 April 2021 to 31 March 2022, the solar panels at the Suurstoffi site produced 1’140 MWh of energy, equivalent to the average consumption of 250 single-family homes. The first six houses at the City Centre site in Zug were also equipped with a solar installation in autumn 2022, which increased the installed photovoltaic capacity from 1’531 to 1’672 kWp.

Further development of the Metalli Living Space and the S43/45 construction project
Project development work on the Metalli Living Space complex continued during the 2022 financial year. Draft versions of the development plans for both the Metalli and Bergli sites are available and an initial review by the cantonal authorities on the basis of those plans began in late October 2022. Preparations for the architectural competition have begun and dialogue with the public will continue. The Greater Municipal Council (GGR) of the City of Zug plans to address the construction plans by holding a first reading in mid-2023. Based on the current schedule of the City of Zug, we expect the development plans to be approved in 2024 and construction to start in 2026 at the earliest.

The construction project for the S43/45 site in Rotkreuz is currently being revised. Drawing on the findings of leasing activities in the past two years and the change in tenant needs triggered by the COVID-19 pandemic, this revision is largely about increasing the flexibility of use. We currently plan to submit a project change request to the municipality of Risch Rotkreuz in the summer of 2023. Independent of the project revision work, an ongoing effort is being made to market those spaces.

Equity ratio remains solid
Financing of the acquisition made in the year under review caused the return on equity to drop from 58.4% to 55.2%, which is still a solid value.

Interest-bearing debt, on the other hand, rose by CHF 99.4 million or 17.7%, from CHF 561.1 million to CHF 660.5 million. Interest-bearing debt as a percentage of total assets therefore amounted to 36.9% compared to 33.8% in the previous year. The average maturity of this debt declined slightly to 3.4 years (previous year: 3.6 years), whereby the average ­interest rate for the period for interest-bearing debt remained unchanged at 1.3%.

A bond in the amount of CHF 100.0 million that was due to expire was replaced by another green bond on 17 February 2022. After becoming the first listed real estate company in Switzerland to issue a green bond in 2019, another issue has made Zug Estates the first listed real estate company in Switzerland to switch to green financing products for its entire bond portfolio. With a maturity of just over seven years and a coupon of 0.75%, the new bond was concluded in a very favourable interest rate environment.

Dividend increase and change in the board of directors
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 9.3%, from CHF 3.75 to CHF 4.10 per series A registered share and from CHF 37.50 to CHF 41.00 per series B registered share.

After serving on the board of directors for ten years, Armin Meier will not stand for re-election at the general meeting of shareholders. Drawing on his extensive strategic and operational leadership experience in a variety of sectors, he made a very valuable contribution toward the Zug Estates Group’s successful and long-term development. We are very grateful to him for this. The board of directors proposes to the annual general meeting of shareholders that Joëlle Zimmerli be elected as a new member. With PhDs in sociology and planning, she deals intensively with topics related to urban development and frequently sits on the juries of architectural competitions. Among other things, she is a member of the board of directors in the Green Building Association Switzerland and she ideally complements the board with her skills and knowledge.

Outlook for 2023
Due to the acquisition of the Renggli Group in the 2022 financial year, the reduced vacancy rate and increases in rents for index leases, we expect property income in the real estate business unit to be higher in 2023. The higher earnings are offset by higher financing costs as well as renovation-related vacancies and investment costs incurred in connection with a few of the rentable spaces in the Metalli shopping mall.

In the hotel & catering segment, we expect the recovery seen in the second half of 2022 to continue. However due to the overall refurbishment project scheduled to start at the Bären site in April 2023 as well as the renovation of all catering and conference spaces at Parkhotel, which is scheduled to take place from June to October 2023, we expect income to fall slightly short of that of the previous year. Since reconstruction work in 2023 will have a noticeably negative impact on the GOP margin and electricity costs will be considerably higher, we assume that the results from this segment will be much lower.

All in all, we expect net income excluding revaluation and special effects to be slightly lower in the 2023 financial year.

Reporting from 24 February 2023

You can access the detailed report on the 2022 financial year by visiting our website:  
https://zugestates.ch/en/downloads or by clicking on this link: 2022 Annual Report (PDF)

A press conference on our annual results is being held in German at 11:00 a.m. today at the Parkhotel Zug. Patrik Stillhart (CEO) and Mirko Käppeli (CFO) will be presenting the annual results for 2022 and answering questions afterwards. For the first time, we have arranged this press conference as a hybrid event, which means you can access it via Zoom if you can’t make it in person. Online attendees will also be able to ask questions.

Please register for the press conference via the link below. We look forward to welcoming you to the press conference – in person or online.

https://zugestates.ch/en/stories/balance-sheet-press-conference-2023

Important dates:

6 April 2023
14 April 2023
25 August 2023

11th ordinary general meeting
Distribution to shareholders (payment day)
Publication of Half-Year Report 2023

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 Parkhotel Zug and City Garden and a comprehensive range of restaurants. The total value of the portfolio came to CHF 1.83 billion on
31 December 2022. 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 article 53 Listing Rules
Zug, 2 November 2022

Retroactively with effect on 1 October 2022, Zug Estates Holding AG is acquiring 100% of the shares of Renggli Holding AG, domiciled in Zug, which owns 12 properties in the Zug and Rotkreuz area.

The acquired real estate portfolio, with a residential property share of nearly 50% and value of around CHF 110 million, includes a business property in Zug as well as a 19,000 m² development site with residential and commercial properties in Rotkreuz that is directly adjacent to the Suurstoffi site. Annual rental income amounts to more than CHF 2.6 million and the vacancy rate on 30 September 2022 was at around 0.2%.

Patrik Stillhart, CEO of Zug Estates Holding AG, is thrilled about this acquisition and explains: “The properties of Renggli Holding AG perfectly supplement our portfolio, which focuses on central, well-connected locations in the Canton of Zug. The site we acquired in Rotkreuz, in particular, has attractive development potential.”

Important dates:

24 February 2023
6 April 2023
25 August 2023

Publication of Annual Report 2022
Ordinary General Meeting
Publication of Half-Year Report 2023

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



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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



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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



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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



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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



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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



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Your contact

Philipp Hodel

Head of Corporate Communication

Zug Estates AG

Industriestrasse 12

CH-6300 Zug

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