HIAG with strong operating performance in 2023 financial year – Proved business model in challenging environment - Seite 2

Property income increased and vacancy rate reduced
Property income increased by 3.9% to CHF 70.3 million in the 2023 financial year (2022: CHF 67.7 million). The reduction in the vacancy rate from 6.4% to a record low of 4.0% as well as successful project completions in the previous year and the associated new rental agreements (+CHF 2.3 million compared to the previous year) contributed to this. The consistent implementation of index adjustments for commercial rental agreements and the implementation of the mortgage reference interest rate for residential rents led to additional income of CHF 1.4 million. Transaction activity resulted in an overall decrease in rental income of CHF 1.6 million. Rental income of CHF 0.8 million from interim use was also lost because of the start of construction on development projects. At around 16.6% of property income, the expenses for real estate included in operating expenses were within the expected and usual range. The gross yield of the yielding properties increased to 5.4% (2022: 5.2%) and the net yield rose to 4.2% (2022: 3.9%). As expected, the weighted average unexpired lease term (WAULT) decreased slightly to 6.7 years as at 1 January 2024 (1 January 2023: 7.0 years). In relation to the 15 largest tenants, the WAULT as at 1 January 2024 was 9.0 years (1 January 2023: 10.6 years).

Progress on property projects according to plan
During the reporting period, construction work began on the “ALTO” residential tower with a commercial base in Zurich-Altstetten and the “FAHRWERK” logistics and industrial building in Winterthur (ZH). The construction of the commercial property for Librec AG on the Papieri site in Biberist (SO) was also largely completed, and the property was handed over to the tenant in February 2024. The construction of the “kessel haus” property in Windisch (AG) – a timber hybrid construction with 24 flats and a share of commercial space – was completed, thereby finalising the multi-year development of the historic “Kunzareal” site. All spaces in the “kessel haus” property have been let and were handed over to the tenants in January 2024. The “CHAMA” rental and condominium project in Cham (ZG) is on time and on budget. The marketing of the 87 rental flats, which started in the reporting period, met with great demand. All of the rental flats were let before construction was completed. The 52 condominiums are also attracting widespread interest. With the sales and project status, HIAG realised a profit contribution from promotions of CHF 13.6 million in the reporting period (2022: CHF 4.6 million).