Strong operating result in first half of 2025

• At CHF 63.9 million, net income was significantly higher than in the previous year (CHF 28.2 million).
• Net income excluding revaluation and special effects was also up considerably, rising by 10.1% to CHF 19.9 million.
• Property income increased by 6.0% to CHF 35.9 million in the first half of 2025.
• The vacancy rate was at a very low level of 0.9% as at 30 June 2025.
• The revaluation gain amounted to CHF 50.1 million in the first half of 2025, compared with CHF 11.5 million in the same period last year.
• The portfolio value increased by CHF 62.0 million to CHF 1.92 billion.
• The already very solid equity ratio of 56.1% (as at 31 December 2024) rose slightly to 56.4%
• The political approval process for the Metalli Living Space in Zug was successfully initiated with the City Council’s decision and the first reading in the Zug Municipal Parliament.
• The construction work for project S43/45 on the Suurstoffi site is progressing according to plan.

Zug Estates generated a strong operating result in the first half of 2025. The vacancy rate remained at a very low level and property income increased again. The hotel & catering segment also recorded encouraging revenue growth and improved profitability.

Demand for attractive properties increased in the first half of 2025 due to interest rate cuts by the Swiss National Bank, geopolitical uncertainty and institutional investors seeking stable investments, all of which have had a positive impact on property valuations. 

Net income came in at CHF 63.9 million, CHF 35.7 million (127.1%) higher than the previous year’s figure of CHF 28.2 million. This increase is attributable to a significantly higher revaluation gain compared with the first half of 2024. Adjusted for revaluation and special effects, net income also increased substantially by CHF 1.8 million (10.1%) from CHF 18.1 million to CHF 19.9 million.

Higher property income and improved hotel and catering revenues
Due to the full-period contribution of the almost fully let portfolio, property income increased by CHF 2.1 million (6.0%) from CHF 33.8 million to CHF 35.9 million. Since there were no changes to the property portfolio compared with the previous year, like-for-like growth also amounted to CHF 2.1 million (6.0%).

The hotel & catering segment reported a slight boost of CHF 0.1 million (1.4%) over the same period in the previous year, rising from CHF 7.7 million to CHF 7.8 million, driven by higher accommodation revenues. Higher demand at the redesigned aigu restaurant led to a significant increase in sales. This offset the lower revenue at the Secret Garden restaurant, which is now exclusively available for private events. As a result, overall profitability improved, and gross operating profit (GOP) increased from 37.8% to 41.2%. 

Overall, operating income went up by CHF 1.9 million (4.5%) from CHF 43.4 million to CHF 45.3 million. Operating expenses fell slightly by CHF 0.1 million (0.7%) from CHF 15.8 million to CHF 15.7 million.

Significant revaluation effects result in higher portfolio value
For the period up to 30 June 2025, Zug Estates had its property portfolio valued for the first time by independent valuation expert Jones Lang LaSalle (JLL). 

The market value of the entire portfolio increased due to revaluation effects and investments, rising by CHF62.0 million (3.3%) from CHF1'858.9 million as at 31December2024 to CHF1'920.9 million as at 30June2025. The revaluation gain amounted to CHF 50.1 million in the first half of 2025, compared with CHF 11.5 million in the first half of 2024. Based on all investment properties, this corresponds to 2.7% of the portfolio value. The average real discount rate as at 30 June 2025 was 2.77%.

Following the start of construction on project S43/45 in Risch-Rotkreuz in December 2024, investments in the portfolio increased from CHF 3.5 million in the first half of 2024 to CHF 11.9 million in the first half of the current year.

Solid equity ratio improved further 
Investments in the portfolio led to a CHF 11.1 million (1.7%) rise in interest-bearing debt from CHF 658.2 million as at 31 December 2024 to CHF 669.3 million as at 30 June 2025. However, the proportionally stronger increase in the value of the property portfolio reduced the proportion of interest-bearing debt in the balance sheet total from 35.9% to 35.3%.

This also led to a slight improvement in the already very solid equity ratio from 56.1% as at 31 December 2024 to 56.4% as at 30 June 2025.

As no major loans became due for extension, the average residual maturity of loans fell from 3.6 years as at 31 December 2024 to 3.1 years as at 30 June 2025. The average interest rate rose from 1.5% to 1.6%.

Vacancy rate remains very low
Due to the existing lease terms and the very low vacancy rate, only a small number of rental agreements were due for renewal or renegotiation compared with previous years. In total, commercial leases covering around 1’600m² and generating annual rental income of approximately CHF 0.9 million were renewed or newly concluded in the first half of 2025. The agreements were primarily for office and retail space in Zug. With Decathlon and Bäckerei Hotz Rust, two attractive new tenants were acquired for the Metalli shopping mall.

As a result of the rental agreements concluded, the vacancy rate remains at a very low level. It rose slightly from 0.7% as at 31 December 2024 to 0.9% as at 30 June 2025. At 5.7 years (5.8 years as at 31 December 2024), the weighted average unexpired lease term (WAULT) remained at a high level.

Construction work on project S43/45 progressing according to plan
Construction work on the two buildings S43 and S45 on the Suurstoffi site – comprising around 14’400m² of office and education space and 1’100m² of residential space for student living – has been progressing according to plan since getting under way in December 2024. The underground work, including the installation of an additional geothermal probe field, will be completed by the end of August 2025. The general contractor for the building construction has already been appointed. The rental spaces are scheduled to be handed over to tenants in mid-2027. 

Political approval process for Metalli Living Space launched
Following the adoption of the “2000 homes for Zug’s middle classes” initiative, the planning basis for the Metalli Living Space project was revised in close collaboration with the City of Zug and the Metalli development plan was adjusted accordingly. Zug City Council approved the adjustment of the Metalli development plan on 8 April 2025, and the first reading in the Zug Municipal Parliament (GGR) took place on 17 June 2025. No objections were made during the subsequent public release. The second reading in the GGR is expected to take place later this year. 

The Metalli Living Space project (www.lebensraum-metalli.ch) aims to further enhance the lively and versatile Metalli site. It will create additional living space to meet different needs, as well as upgraded and attractively designed outdoor green spaces and improved shopping and dining options. 

Sustainability certification for Garden Park Zug AG
Garden Park Zug AG has been awarded the ibex fair-stay Gold sustainability label. It also achieved the highest level (“Level III – Leading”) in Switzerland Tourism’s “Swisstainable” sustainability programme. The four-star-superior Park Hotel Zug (including the aigu Restaurant & Bar), the four-star-superior design hotel City Garden (including the Secret Garden event location) and the 4-star City Apartments were all certified. The certifications reflect a fully integrated approach to sustainable operations and confirm Garden Park Zug AG’s broad commitment to the environment, quality and social responsibility.

Positive outlook for 2025
As it did with previous reductions, Zug Estates will pass on the reference interest rate cut from the first half of 2025 to all residential tenants. In light of the lower residential rents, we expect a slight increase in total property income for the full year, thanks to successful commercial lettings and a low vacancy rate, even though income is likely to be lower in the second half of the year. 

In the hotel & catering segment, we expect business to remain stable and anticipate a slight year-on-year improvement in both revenues and the GOP margin for the full financial year.

Due to a marginal increase in property expenses and financing costs, we predict that net income excluding revaluation and special effects will be lower in the second half of the year than in the first half. However, we expect the result for the year as a whole to be higher than for the previous year.

Reporting on 20 August 2025
A video conference for analysts and the media will be held today at 10 a.m. (in German). CEO Patrik Stillhart and CFO Mirko Käppeli will present the 2025 half-year results and answer questions afterwards. 

Please register for the conference via the following link. We look forward to you joining us. https://zugestates.ch/en/conference-for-analysts-and-media

The detailed half-year report and the video conference presentation are available on our website: https://zugestates.ch/en/downloads

Key dates:
27 August 2025 | Sustainability forum
19 February 2026 | Publication of the Annual Report and Sustainability Report 2025
8 April 2026 | General Meeting of Shareholders

For further information:
Patrik Stillhart, CEO
Mirko Käppeli, CFO

T +41 41 729 10 10
ir@zugestates.ch

About Zug Estates
The Zug Estates Group designs, develops, markets and manages properties in the Zug region, with a particular focus on centrally located sites that enable a variety of uses and support sustainable development. The property portfolio primarily comprises the two sites in Zug and Risch-Rotkreuz. The Group also operates a city resort in Zug consisting of the leading business hotels Park Hotel Zug and City Garden, plus a range of restaurants. The total value of the portfolio was CHF 1.92 billion as at 30 June 2025. Zug Estates Holding Ltd is listed on the SIX Swiss Exchange, Zurich (ticker symbol: ZUGN, securities number: 14 805 212).

Zug Estates Holding AG | Baarerstrasse 18 | CH-6300 Zug | T +41 41 729 10 10 | www.zugestates.ch