HIAG Immobilien Holding AG / Key word(s): Conference/Half Year Results
26-Aug-2022 / 05:55 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Ad hoc announcement pursuant to Art. 53 LR
Media information (PDF)
Key figures (PDF)
Half-Year Report 2022 (PDF)
Increase in net income to CHF 56.1 million (+33.7%)
or CHF 14.8 million (+15.7%) excl. revaluation gains and deferred tax
Increase in return on equity to 12.0% (+0.9%p)
Increase in earnings per share to CHF 10.25 (CHF +1.24)
Increase of property income to CHF 32.4 million (+5.8%)
and annualised property income to CHF 70.8 million (+12.2%)
Reduction of vacancy rate to 6.9% (-3.8%p) in the overall portfolio
Increase of the real estate portfolio to CHF 1.87 billion (+4.7%)
Increase in revaluation gains to CHF 42.3 million (+31.2%)
Increase in WAULT to 8.5 years (+0.3 years)
Increase in equity ratio to 52.4% (+0.4%p)
Reduction of LTV ratio gross to 42.4% (-2.1%p)
and increase of LTV ratio net to 40.3% (+0.7%p)
Increase of NAV to CHF 109.10 per share (+2.8%)
or CHF 100.92 (+2.9%) excl. deferred taxes
Basel, 26 August 2022 – HIAG successfully continued its growth trajectory in the first half of 2022 business year. Rental income increased again by 5.8%, and the vacancy rate for the overall portfolio was significantly reduced to 6.9%. Substantial progress was made on project development, and the portfolio was optimised further. The company's strong performance led to a significant increase in revaluation gains, and to a very pleasing half-year result of CHF 56.1 million, which is its best result since the IPO on SIX Swiss Exchange.
HIAG's robust business model
HIAG's business model has demonstrated resilience in the face of increasingly challenging conditions on the market in recent months. All three business lines made a positive contribution to earnings in the first half of 2022. At CHF 32.4 million (H1 2021: CHF 30.6 million), property income exceeded the previous year's figure by 5.8%. Annualised property income increased by 12.2% to CHF 70.8 million (1 January 2022: CHF 63.1 million), primarily driven by new rentals, project completions as well as index adjustments.
Net profit significantly increased by 33.7% to CHF 56.1 million (H1 2021: CHF 41.9 million). Half-year profit before revaluation gains and deferred taxes amounted to CHF 14.8 million (H1 2021: CHF 12.8 million). This resulted in earnings per share (EPS) of CHF 10.25 (H1 2021: CHF 9.01). EBITDA rose by CHF 9.4 million to CHF 62.4 million (H1 2021: CHF 52.9 million). Return on equity as at 30 June 2022 increased by 0.9 percentage points from 11.1% to 12.0% compared to 31 December 2021.
Revaluation gains on investment properties increased substantially in the reporting period to CHF 42.3 million (H1 2021: CHF 32.2 million), mainly due to own management performance (e.g. reduction of vacancies, rent extensions and rent increases as well as project progress at development properties) and market-driven effects (e.g. reduction of market discount rates).
The weighted average unexpired lease term (WAULT) rose to 8.5 years in the period under review (prior year period: 8.2 years). Applied to the 15 largest tenants, WAULT as at 1 July 2022 was as much as 10.8 years (1 January 2022: 10.2 years).
Significant progress on site development
As of 1 July 2022, HIAG's development pipeline comprised 61 projects with an expected total investment volume of CHF 3.07 billion (planned/estimated over the next 15 years) and an annual potential for rental income of around CHF 162 million as well as potential income from sales of promotion projects of around CHF 715 million.
Vacancy rate again significantly reduced
The vacancy rate for the overall portfolio was again significantly reduced and amounted to 6.9% as at 1 July 2022 (1 January 2022: 10.7%). The vacancy rate for the yielding portfolio amounted to 6.3% (1 January 2022: 9.6%). The vacancy rate for the development portfolio decreased to 9.3% (1 January 2022: 15.7%). This positive development is mainly attributed to the completion of fully let development projects as well as successful new and follow-up leases.
Portfolio optimisation transactions
A large number of dossiers were examined in the Transactions and Commercial Space Marketing business division during the reporting period. As part of the ongoing programme to divest non-strategic properties, assets with a book value of CHF 0.7 million (H1 2021: CHF 2.0 million) were sold and one property with a book value of CHF 13.3 million (previous year: CHF 35.0 million) was acquired. In the future, HIAG intends to continue to regularly divest non-strategic properties as part of its "capital recycling strategy", and to optimise the portfolio by acquiring suitable properties, in particular residential land that allows for the realisation and marketing of condominiums.
Properties for sale (promotion)
As at 30 June 2022, the development pipeline included one property for sale with a total of 52 residential units ("CHAMA Columbus" condominium) with ongoing investments of CHF 3.9 million (H1 2021: CHF 1.3 million). On 30 June 2022, the first two public deeds took place with a recognised revenue of CHF 2.3 million (H1 2021: CHF 0). The resulting contribution to pre-tax earnings amounts to CHF 0.8 million (H1 2021: CHF 0). The public deeds for further pre-reserved apartments is expected in the next few weeks.
Solid financing structure
As at 30 June 2022, shareholders’ equity (NAV) increased by 2.8% to CHF 109.1 per share (31 December 2021: CHF 106.1 per share) or, taking deferred taxes into account, rose by 2.9% to CHF 100.92 per share (31 December 2021: CHF 98.06 per share). With an equity ratio of 52.4% (31 December 2021: 52.0%), HIAG has a solid equity base.
Total assets as at 30 June 2022 rose by 2.1% to CHF 1.94 billion (31 December 2021: CHF 1.90 billion). The value of the investment property portfolio increased by 4.7% to CHF 1.87 billion due to investments and revaluation gains and taking into account strategic transactions (31 December 2021: CHF 1.78 billion).
The loan-to-value (LTV) ratio gross decreased to 42.4% (31 December 2021: 44.5%). The LTV ratio net increased slightly to 40.3% (31 December 2021: 39.6%), due to the reduced level of cash and cash equivalents following the dividend payment of CHF 27.2 million and investments of CHF 30.4 million.
The average interest rate for financial liabilities increased slightly to 0.79% during in the period under review. (31 December 2021: 0.78%) as a result of the higher interest rate for the bond refinanced in May 2022. During the refinancing transaction, the average remaining term of the financial liabilities was extended to 2.8 years (31 December 2021: 2.5 years).
Sustainability strategy maintained in a targeted manner
With the upgrade in the "Inrate ESG Rating" from grade C to grade B, HIAG qualifies for inclusion in the "SPI ESG" sustainability index of SIX Swiss Exchange. Furthermore, in 2022 HIAG participates for the first time in the "GRESB Real Estate Assessments". The development of a guideline for sustainable construction is also on track. The project for the creation of a path for the reduction of greenhouse gas emissions is progressing according to plan as well. The first models will be presented in the 2022 Annual Report. With the installation of six additional photovoltaic systems by the joint venture HIAG Solar, HIAG is also on track with its fourth sustainability goal. Systems with an output of over 3 MWp are currently in operation, and the aim is to achieve a total output of 6 MWp by 2024.
Strong performance supports positive outlook for business year 2022
HIAG's robust business model, strong operating performance and solid financing structure provide a stable foundation for HIAG's continued growth. Provided macroeconomic conditions do not deteriorate significantly, management continues to expect a good result for the 2022 business year. An increase in rental income is expected for the second half of the 2022 business year due to the completion of fully let construction projects, additional letting successes and inflation-related rent adjustments. The vacancy rate is foreseen to remain on a stable level. In addition, progress on major development projects is expected to allow for further revaluation gains.
Online Half-Year Report 2022 | Half-Year Report 2022 (Reporting Center)
Conference call and webcast
Marco Feusi, CEO, and Rico Müller, CFO, will present the 2022 half-year results and answer questions during a conference call with webcast today at 9.00 a.m. (CEST).
The presentation will be given in German.
To join the conference call, please use the following numbers:
+41 58 310 50 00 (Switzerland/Europe) / +44 207 107 06 13 (UK).
Other international numbers are listed here: Dial-in list
The webcast can be attended under the following link: Webcast
A replay of the webcast will be provided at the following link: Replay
27 September 2022
HIAG Capital Market Day
14 March 2023
Publication of Annual Report 2022
27 April 2023
Annual General Meeting
HIAG is a leading real estate company listed on SIX Swiss Exchange that holds a real estate portfolio with a total value of CHF 1.87 billion. Compared to the total area of the real estate portfolio of 2.6 million m², HIAG has an outstanding development pipeline of around 815,000 m² with currently 61 projects and an expected investment volume of CHF 3.07 billion. The portfolio comprises 45 sites with well-developed office, commercial and logistics properties as well as selected residential properties in future-oriented growth regions of German and French-speaking Switzerland. HIAG generates a stable rental income from its real estate management activities and creates long-term value potential through active portfolio management and the development of attractive destinations.
This media information contains forward-looking statements such as projections, forecasts and estimates. Such forward-looking statements are subject to certain risks and uncertainties which may cause actual results, performance, or events to differ materially from those anticipated in this media information. The forward looking statements contained in this media information are based on the views and assumptions of HIAG Immobilien Holding AG as of this date and HIAG Immobilien Holding AG does not assume any obligation to update or revise this media information.
End of Inside Information