- Property income increased by 7.5% to CHF 75.6 million
- Vacancy rate in the overall portfolio at a new low of 3.2%
- Revaluation of the overall portfolio by CHF 26.0 million (+1.3%)
- Contribution to earnings from condominiums of CHF 18.1 million
- Contribution to earnings from divestments of CHF 2.9 million
- Net income for the period increased to CHF 75.2 million (+60.0% / +6.6% without
revaluation effects)
- High flexibility of financing and low LTV ratio of 37.3% (net)
- First-time publication of comprehensive Scope 3 emissions
- Higher proposed dividend of CHF 3.30/share (+6.5%) and positive outlook
Basel, 3 March 2025 - HIAG can look back on a successful financial year 2024 in all of its business segments. The significant increase in property income and the success in letting projects completed in the reporting period led to a marked increase in profits. The vacancy rate was reduced again and reached a new low. Substantial added value was created through targeted investments in properties and numerous project completions, which was reflected in the encouraging development of revaluations. The first construction phase on the "CHAMA" site in Cham (ZG) was successfully completed in the second half of the reporting year with the full letting and retail of the last condominiums. The markedly lower interest rates in the second half of the year led to a recovery in the transaction market, which also benefited HIAG's transaction business. Net income increased significantly in the 2024 financial year. In light of the excellent result, the strong financial position and the promising future prospects, the Board of Directors will once again propose a higher dividend at the Annual General Meeting on 17 April 2025.
High property income due to successful project completions and marketing successes
Property income increased by CHF 5.3 million or 7.5% compared to the previous year to CHF 75.6 million (2023: CHF 70.3 million). This was largely due to the consistent reduction in vacancy rates, which fell from 4.0% as at 1 January 2024 to a new low of 3.2% as at 1 January 2025, as well as successful project completions and the associated new rental agreements. In the reporting year, the Minergie-Eco certified commercial property for the clean-tech company "Librec" on the "Papieri site" in Biberist (SO) was completed and handed over to the tenants. In Windisch (AG), the "kessel haus" timber hybrid building with 24 rental flats and a share of commercial space completed the multi-year development of the historic "Kunzareal" site. All of the space has been let and handed over to the tenants on time. In Cham (ZG), the first stage of the "CHAMA" rental and condominium project was completed on time and within budget. The 87 rental flats were already let before completion, and the last of the 52 condominiums were registered in the second half of the year. In the 2024 financial year, the sale of condominiums contributed a total of CHF 18.1 million to earnings (2023: CHF 13.6 million). The gross yield of the yielding properties increased slightly to 5.5% (2023: 5.4%). The net yield rose to 4.6% (2023: 4.4%). The weighted average unexpired lease term (WAULT) remained comfortable at 6.6 years as at 1 January 2025 (1 January 2024: 6.7 years).
Further progress in site development
In the first half of 2024, the building permit for the second stage on the "CHAMA" site in Cham (ZG) became legally binding, meaning that construction of the other 140 rental and condominium units could begin in the second half of the year. The construction of the "Fahrwerk" commercial building in Winterthur (ZH) and the 80-metre-high "ALTO" residential tower with a commercial base in Zurich-Altstetten are also progressing according to plan. Work on the development of the "Campus Reichhold" site in Hausen/Lupfig (AG) also began in the reporting year. The building permits for the office building and the production and distribution centre for the future tenant "Oerlikon Metco" as well as for the data centre, which "Global Technical Realty" (GTR) will construct on its own as the building rights holder, were granted at the beginning of 2025, meaning that construction can begin in the near future. Alongside the implementation of current and upcoming projects, the medium-term to long-term project pipeline was also further fleshed out and important milestones were reached. The consultation process for the neighbourhood plan for the "Gleis Süd" site in Pratteln (BL) was completed in autumn 2024. After the design plan for the "Schönau" site in Wetzikon (ZH) became legally binding in spring 2024, concrete construction projects are now being drawn up. In Niederhasli (ZH), following approval by the municipal assembly at the end of 2024, the design plan with a commercial share of at least 20% and a residential component that allows for 230 to 290 rental flats and condominiums should become legally binding in 2025. In Frauenfeld (TG), the "Walzmühlehaus" project was optimised and legally approved. Construction is scheduled to begin at the end of 2025. The planned open investment volume of the projects under construction or about to start construction is around CHF 307 million. The expected rental income from these projects amounts to around CHF 22 million, and income of around CHF 138 million is expected from the sale of condominium units.
Encouraging increases in value in the development portfolio
The value of the investment property portfolio increased by 3.3% or CHF 63.6 million to CHF 1.961 billion in the reporting period (31 December 2023: CHF 1.898 billion). The revaluation effect in the portfolio totalled CHF +26.0 million (2023: CHF -19.1 million) or 1.3%. Progress in project development led to an increase in the value of the development portfolio totalling CHF 29.8 million or 4.2%. The positive performance shows the qualitative progress of the development projects. The turnaround in the Swiss interest rate market also provided a boost.
Utilising positive momentum in the transaction market
The lower interest rates have also revitalised the transaction market. HIAG took advantage of the changed market environment and sold six smaller residential and commercial properties in Aathal (ZH), Wetzikon (ZH) and Windisch (AG), which were no longer in line with the strategy, in the second half of 2024, well above the last recognised values. Sales with a balance sheet value of CHF 31.4 million resulted in a profit of CHF 2.9 million. The annualised property income lost as a result of the sales amounts to around CHF 1.2 million.
Significant increase in net income for the period and positive tax effect
EBIT of CHF 93.3 million (2023: CHF 70.4 million) was 32.5% higher than in the previous year. The merger of three subsidiaries as at 1 January 2024 enabled cash-effective tax savings both in the reporting year and for the current year 2025 due to the use of existing loss carryforwards. Income taxes in the amount of CHF 1.6 million (2023: CHF 11.1 million) are thus largely made up of deferred taxes. HIAG increased its net income significantly in financial year 2024, by 60.0% to CHF 75.2 million (2023: CHF 47.0 million). Adjusted for revaluation effects, net income for the period was CHF 51.8 million or 6.6% above the prior-year figure (2023: CHF 48.6 million). Given the good result, the strong financial position and the promising future prospects, the Board of Directors will propose a 6.5% higher distribution of CHF 3.30 per share (previous year: CHF 3.10) at the Annual General Meeting on 17 April 2025. The corresponding dividend yield at the end of the year would therefore be 3.9%.
Highly flexible financing paired with a solid balance sheet
On 3 January 2025, HIAG launched its first green bond for CHF 100 million, with a term of 5.3 years and a coupon of 1.4%, as part of its Green Financing Framework. Together with the committed syndicated credit line, which is geared towards sustainability and almost half of which had been utilised as of the reporting date, HIAG continues to have comfortable financial leeway to realise ongoing and medium-term real estate projects. The loan-to-value (LTV) ratio at the end of 2024 was 39.3% gross and 37.3% net (31 December 2023: LTV ratio net 39.8%) and is well below the self-imposed cap of 45%. As at the reporting date, the equity ratio was high at 55.2% (31 December 2023: 53.9%).
Pioneering role in the publication of Scope 3 emissions
In the reporting year, HIAG reached further milestones in the implementation of its sustainability strategy. In addition to the commissioning of new sustainability-certified properties and progress in the project pipeline, this year's Sustainability Report presents a comprehensive overview of HIAG's greenhouse gas emissions for the first time. The comprehensive reporting now covers all significant Scope 1, 2 and 3 emissions. HIAG is thus setting a new benchmark in reporting on greenhouse gas emissions, and assuming a pioneering role in the Swiss property market. In the reporting year, the sustainability strategy was also comprehensively updated and the long-term sustainability goals were increased. Detailed information can be found in the separate HIAG Sustainability Report.
Outlook
HIAG is optimistic about the 2025 financial year. The continuing cautious mood in the industrial sector could dampen demand for commercial space, and the impact of geopolitical uncertainties and the economic policy of the new US administration is difficult to assess at present. Overall, however, the mood on the Swiss property market should continue to brighten. Continued immigration will also support the high demand for residential properties in Switzerland. In addition, the prospect of further interest rate cuts by the Swiss National Bank (SNB) will have a positive impact on property values, the transaction market and financing costs. Against this backdrop, and with its diversified business model, which is based on the three business areas of Site Development, Portfolio/Asset Management and Transaction Management, HIAG considers itself to be in a good position.
Conference call and live webcast
On Monday, 3 March 2025, at 9.00 am, Marco Feusi, CEO, and Stefan Hilber, CFO, will explain the 2024 results and answer questions during a conference call with audio webcast.
To participate in the conference call, please use the following numbers:
+41 58 310 50 00 (Switzerland/Europe) / +44 207 107 06 13 (UK)
You can find more international numbers here: Dial-in list
You can attend the webcast via the following link: Link to the webcast
Recording
A recording of the webcast will be available via this link: Link to the recording
