Zug Estates Holding AG

EQS-Adhoc: Successful first six months for Zug Estates

EQS Group-Ad-hoc: Zug Estates Holding AG / Key word(s): Half Year Results
Successful first six months for Zug Estates

26.08.2016 / 06:50
Release of an ad hoc announcement pursuant to Art. 53 KR.

In the first six months of 2016, Zug Estates Group increased its operating
income before depreciation and revaluation by 4.5% to CHF 19.4 million. Net
income excluding revaluation rose by 5.6% to CHF 12.1 million.

In the first half of 2016, Zug Estates posted an operating income before
depreciation and revaluation of CHF 19.4 million. This represents a year-on-year
increase of 4.5%. At the same time, property income rose by 3.1% to CHF 19.7
million. The fall in sales in the hotel & catering business unit (owing to the
absence of catering income from Theater Casino Zug) were in line with
expectations; gross operating profit (GOP) rose from 39.4% to 41.7%. The Group's
operating expenses for the first half of the year were down 12.4% year-on-year.

The Group invested CHF 30.0 million in the further development of its sites,
including in particular the Suurstoffi site. In addition, the book value of the
investment properties increased by CHF 14.4 million net as a result of the
revaluation (2015: CHF 32.8 million). The continuous development and positioning
of the Suurstoffi site as a preferred location for housing and business, and the
above-average quality of the locations and properties in the portfolio made a
significant contribution to the positive income from revaluation. As part of the
streamlining of its portfolio, Zug Estates sold a property in Baar, generating a
profit of CHF 0.4 million in the process.

As a result of the lower revaluation, EBIT and net income were down on the
previous year's figures at CHF 32.8 million and CHF 24.7 million respectively.
Net income excluding revaluation increased by 5.6% to CHF 12.1 million.

Decline in vacancy rate

As at June 30, 2016 (reference date), the portfolio's vacancy rate stood at 4.2%
(June 30, 2015: 6.4%, December 31, 2015: 5.4%).

Development projects on track

In the first half of 2016, important progress was made on the development of the
Suurstoffi and Zug city center sites:
Construction of the third development phase, with 152 rental apartments, student
apartments and office and commercial space for about 500 workplaces, is
progressing according to plan. Occupation of the three buildings is expected to
proceed on a staggered basis from fall 2017 onward. The investment volume
amounts to roughly CHF 110 million. Some 70% of the commercial space has already
been let to the market research institute GfK and the car-sharing service
provider Mobility.HSLU's choice of location will allow Zug Estates to proceed
with the integrated planning of the western section of the Suurstoffi plot on
which the final site for the Department of Computer Sciences and part of the
Lucerne School of Business is to be constructed by 2019. This will enable it to
make a start on the necessary adaptation of the development plan in cooperation
with the local municipality. The development plan was publicly announced this
spring and is to be put to the vote of the citizens of Risch in November 2016.
In tandem with work on the development plan, designs for the new building were
invited by public competition. A consortium consisting of Büro Konstrukt and
Manetsch Meyer is now working on the preliminary plans of the winning project
«Peripteros». The planning application should be submitted as soon as the
decision on the development plan has been taken. The new building is expected to
be occupied in the summer of 2019.The consistently strong demand for office
space prompted the decision by Zug Estates to begin planning an office building
for 600 workplaces and to see the project through to the granting of a building
permit. The building permit was granted in July 2016. Negotiations with an
anchor tenant are at an advanced stage, leading Zug Estates to expect the
project to be launched this year. The building is to be constructed on the basis
of a composite masonry-and-timberwork design and once completed will be
Switzerland's tallest wood building with a height of 36 meters.In June 2016, a
planning application for the 70 meter vertical garden high-rise «Aglaya» in the
center of the site was submitted. The upper floors will comprise 85 apartments,
which will be sold as condominium properties. Office space for around 75
workplaces is planned on the first three floors. Construction is due to start in
fall 2016, with occupancy scheduled for winter 2018/19. The apartments will go
on sale in fall 2016.A master plan was initiated to tap into the future
development of the Zug City Center site.
Outlook for the second half

In operating terms, Zug Estates expect income in the real estate business unit
to rise overall, despite the disposal of two sizeable properties in 2015. The
vacancy rate will be lower at the end of 2016. The carefully planned development
of the Suurstoffi site will remain an important priority. In 2016, Zug Estates
expect overall investment in the real estate portfolio to total about CHF 75

Owing to the absence of revenue from the Theater Casino Zug, income in the hotel
& catering segment is expected to be about CHF 2.0 million lower than in the
previous year. However, with the focus now on this segment, Zug Estates are
projecting a further increase in gross operating profit (GOP).

For the year as a whole, the Group expect operating income before depreciation
and revaluation to match the previous year's level. In the second half of 2016,
it expect to continue to generate income from the revaluation of investment
properties (net), although levels will be down year-on-year. Zug Estates expect
to see net income excluding income from revaluation match the previous year's

The detailed Half-Year Report can be found on our website www.zugestates.ch
Investor Relations/Reports.

We will be holding a webcast in German at 10:30 a.m. CEST. Following the
presentation, Tobias Achermann (CEO) and Gabriela Theus (CFO) will be available
to answer any questions. Registration is not necessary.

Dial in: +41 22 580 59 70
Pin Code: 86485636#

The presentation can be viewed on our website www.zugestates.ch.

Upcoming events:
September 15, 2016 | Nachhaltigkeitsforum und Publikation Nachhaltigkeitsbericht
March 10, 2017 | Publication of Annual Report 2016
April 11, 2017 | Annual general meeting of shareholders
September 1, 2017 | Publication of half-year results 2017

For further information, please contact:
Tobias Achermann, CEO,tobias.achermann@zugestates.ch, T +41 41 729 10 10
Gabriela Theus, CFO,gabriela.theus@zugestates.ch, T +41 41 729 10 10

About Zug Estates
The Zug Estates Group conceives, develops, markets and manages properties in the
Zug region. It focuses on centrally located sites suitable for a wide range of
uses and with potential for sustainable development. A large part of the real
estate portfolio is located at two sites in Zug and Risch Rotkreuz and is
broadly diversified by type of use. The Group also runs a city resort in Zug
incorporating the two leading business hotels Parkhotel Zug and City Garden,
augmented by a range of restaurant outlets. As at June 30, 2016, the total
portfolio value was CHF 1.2 billion.

Zug Estates Holding AG is listed on the SIX Swiss Exchange, Zurich, (ticker
symbol: ZUGN; securities number: 14 805 212).

End of ad hoc announcement
Additional features:

Document title: Successful first six months for Zug Estates

26.08.2016 News transmitted by Tensid EQS AG. www.eqs.com


Language: English

Company:  Zug Estates Holding AG

          Industriestrasse 12

          6300 Zug


Phone:    +41 41 729 10 10


Internet: www.zugestates.ch

ISIN:     CH0148052126, CH0148052118

Valor:    A1J0M6

Listed:   Regulated Unofficial Market in Stuttgart; Open Market in Frankfurt ;

End of News EQS Group News Service
494417  26.08.2016 

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