Pandemic cuts profits at Zug Estates
Zug Estates was able to increase its income in the Real Estate division in 2020. In the Hotel & Gastronomy division, losses had to be accepted compared to 2019. Consolidated profit excluding revaluation and special effects fell from 31.4 to 25.9 million francs.
According to a statement from the Zug Estates Group , the real estate company was able to increase its property income in 2020 by 6.1 percent year-on-year to 57.8 million francs. In the accommodation business, income from the effects of the pandemic was reduced by 57.8 percent to 7.0 million francs. In 2020, income of 72.5 million francs was generated from the sale of properties. In the previous year, 45.6 million francs were posted here.
In 2020, income would have been offset by 15.6 percent higher expenses of 9.0 million francs year-on-year, writes Zug Estates. As a result, the operating result before depreciation and revaluation fell by CHF 3.8 million to CHF 49.6 million. The reported operating result (EBIT) was CHF 43.7 million, 38.0 percent below the 2019 figure. Consolidated earnings excluding revaluation and special effects fell from CHF 31.4 million to CHF 25.9 million.
The value of its own portfolio of real estate increased by 1.5 percent to 1.65 billion francs in the year under review, explains Zug Estates. In addition, in 2020 the company was able to renew leases with a total volume of over CHF 2.6 million per year. For the current year, Zug Estates anticipates increasing rental income and lower property costs compared to the year under review.