Zug Estates, the Swiss real estate group focused on the Zug economic region, reported a 6.6% increase in underlying net profit to CHF 21.2 million for the first half of 2026, excluding revaluations and special items.
The reported net income, including revaluations, fell 33% to CHF 42.9 million as revaluation gains dropped to CHF 24.6 million from CHF 50.1 million a year earlier. The company attributed the underlying growth to sustained institutional investor demand for centrally located properties in economically attractive locations.
Property segment revenue remained nearly flat at CHF 35.8 million, with the impact of two reference rate cuts in 2025 offset by index adjustments in commercial leases and a compensation payment for an early lease termination. The affected space was re-let without vacancy. The vacancy rate edged up to 1.2% from 0.7% at year-end 2025, though it remained at a historically low level.
Hotel and hospitality revenue rose 2.5% to CHF 8.0 million, driven by higher occupancy in accommodation and steady demand in food and beverage services.
The total portfolio’s market value increased 2.4% to CHF 1.98 billion compared with end-2025, reflecting investments and revaluation effects.
For 2026, Zug Estates raised its guidance for underlying net income, now expecting a slight increase versus the prior year rather than a flat outlook. Property revenue is projected to remain marginally below last year’s level, but lower property expenses are expected to offset the decline. Hotel and hospitality revenue is seen stable, with a modest drop in gross operating profit.
The company’s Metalli development in Zug continues to anchor its portfolio strategy.
