Zug Estates increases dividend

Zug Estates increased its real estate income by 3.4% to CHF 71.6 million in the 2025 financial year, even though the reduction in the reference interest rate in March was implemented for all residential tenants. As there were no changes in the portfolio and the vacancy rate remained constant at 0.7 %, this is a like-for-like increase. According to the company, demand for attractive properties increased significantly in the first half of the year and remained «very high» in the second half. This has been taken into account in the property valuations. Net profit increased by CHF 45.1% to CHF 85.2 million; adjusted for revaluation and special effects, it rose by CHF 6.3% to CHF 39.2 million.

Gastronomy division more profitable

Income from the Hotel & Catering segment also contributed to the increase in profit. This increased by 3.8% to CHF 16.1 million. The company points to high demand for serviced apartments. Declines in sales with «individual larger business customers» were compensated for by new customer relationships. Demand for the redesigned Aigu restaurant also developed positively and led to a significant increase in sales. This offset lower sales at the Secret Garden restaurant, which is now exclusively available for individual events. Overall, sales in the gastronomy segment remained at the previous year's level. Gross operating profit (GOP) rose from 39.3% to 41.1%.

Financing somewhat more expensive

Operating income for the Group as a whole improved by 3.0% to CHF 91.5 million. Although property expenses increased byTP3k 8.71 to CHF 9.0 million, operating income before depreciation and revaluation rose byTP3k 4.41 to CHF 58.5 million. The revaluation gain of 52.2 million was more than twice as high as in the previous year (24.8 million) and corresponds to 8% of the portfolio value of all properties. JLL was mandated as valuer for the first time. The financing costs, which increased by % 3.0 to CHF 10.5 million, reflect, among other things, a green bond that expired in the fourth quarter, which bore interest of % 0.11 and was replaced by another green bond with a coupon of 1.25%. Investments in the portfolio increased from CHF 8.1 million to CHF 27.1 million in the financial year. Together with the revaluation effects, the market value of the entire portfolio increased by CHF 4.% to CHF 1.86 billion.

Dividend increases by almost 5%

According to the management's proposal, the dividend is to be increased by 4.3% from CHF 4.70 to CHF 4.90 per series A registered share. For series B, the increase amounts to CHF 2.0 to CHF 49.00.

Profit to remain constant despite lower income

For the current financial year, the company anticipates a slight reduction in property income due to the two reductions in the reference interest rate in March and September. However, lower real estate expenses should compensate for the reduction in income. In the Hotel & Catering segment, stable sales and a slightly lower GOP due to a somewhat higher cost base are expected. «Assuming that the interest rate environment remains favorable, we expect consolidated net income excluding revaluation and special effects for the 2026 financial year to be at the previous year's level,» is the guidance for profit.