EQS-Adhoc

Zug Estates Holding AG: Marked increase in net income for Zug Estates

EQS Group-Ad-hoc: Zug Estates Holding AG / Key word(s): Half Year
Results
Zug Estates Holding AG: Marked increase in net income for Zug Estates

28.08.2015 / 06:55
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.

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In the first six months of 2015, Zug Estates Group increased its property
income by 4.3% compared with the first half of 2014 to CHF 19.1 million. At
CHF 39.4 million, net income thus practically doubled.

In the first half of 2015, Zug Estates posted an operating income before
depreciation and revaluation of CHF 18.6 million. This represents a
year-on-year increase of 0.7%. At the same time, property income rose 4.3%
to CHF 19.1 million. Sales in the hotel & catering business unit rose
slightly compared with the previous year. The Group's operating expenses
for the first half of the year were up 6.2% year-on-year, mainly due to
higher maintenance expenditure and expenses associated with real estate
transactions.

In the first half of 2015, the Group invested CHF 22.2 million in the
further development of its sites. In addition, the book value of the
investment properties increased by CHF 32.8 million net as a result of the
revaluation. Consequently, income from the revaluation of investment
properties (net) tripled compared to the previous year's figure of CHF 10.5
million. The main contributing factors here were the above-average quality
of the locations and properties in the portfolio (high proportion of
residential property), the continuous development and positioning of the
Suurstoffi site as a preferred location for housing and business, and
market-related factors.

As a result of the revaluation, EBIT and net income were well above the
previous year's figures at CHF 49.5 million and CHF 39.4 million
respectively. Net income excluding revaluation decreased by CHF 0.4 million
to CHF 11.5 million (previous year: CHF 11.9 million) owing to the sale of
a property and higher borrowing expenses. Without property transactions,
net income excluding income from revaluation would have been slightly above
the previous year's figure.

Far-reaching decisions on the future direction of the Group

In the first half of 2015, important decisions were taken on the further
development of the Suurstoffi and Zug city center sites:

- Zug Estates succeeded in further focusing its portfolio and on March 1,
2015 sold the industrial site in Oberentfelden (AG) at market value. On