| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 72.10 | -42 |
| Intrinsic value (DCF) | 57.11 | -54 |
| Graham-Dodd Method | 96.40 | -23 |
| Graham Formula | 59.80 | -52 |
HIAG Immobilien Holding AG is a Swiss real estate company specializing in site and project development, property management, and capital recycling strategies. Founded in 1876 and headquartered in Basel, HIAG operates across three key segments: Yielding Portfolio, Development Portfolio, and Transaction. The company focuses on optimizing real estate assets through sustainable development, interim use, and strategic transactions. With a diversified portfolio in Switzerland, HIAG combines long-term property management with value-enhancing development projects, including metal recycling services. As a mid-cap player in the Swiss real estate market, HIAG benefits from stable cash flows from its yielding assets while pursuing growth through development initiatives. The company's conservative financial approach, reflected in its low beta of 0.375, makes it an attractive option for investors seeking exposure to Swiss commercial real estate with moderate risk.
HIAG Immobilien presents a balanced investment case with stable income from its yielding portfolio and growth potential from development projects. The company's CHF 1.01 billion market cap and strong operating cash flow (CHF 94.3 million) support its dividend yield (approximately 4.4% based on current share price estimates). With a net income of CHF 75.2 million and EPS of 7.44 CHF, HIAG demonstrates profitability in Switzerland's stable real estate market. However, investors should note the significant debt load (CHF 725 million) against cash reserves of CHF 37.7 million. The low beta suggests defensive characteristics, but the concentrated Swiss focus limits geographic diversification. The capital recycling strategy could unlock value, though execution risks in development projects remain. The 3.3 CHF dividend appears sustainable given cash flow generation.
HIAG Immobilien competes in Switzerland's fragmented real estate development sector with a niche focus on site optimization and capital recycling. The company's competitive advantage stems from its 150-year operating history, providing deep local market knowledge and established municipal relationships crucial for development approvals. HIAG's dual focus on stable yielding assets and value-add projects creates a balanced risk profile uncommon among smaller Swiss real estate firms. The metal recycling service adds a unique operational dimension that differentiates its development capabilities. However, HIAG lacks the scale of Switzerland's largest property owners, limiting its ability to compete for trophy assets. The company's strategy of acquiring underutilized properties for repositioning faces competition from private developers and institutional investors. HIAG's conservative leverage (debt-to-equity around 70%) provides stability but may constrain growth compared to more aggressive competitors. The Swiss market's relative insulation from global real estate cycles benefits HIAG but also limits expansion opportunities beyond domestic borders. The company's development expertise in industrial conversions could become increasingly valuable as Switzerland faces land scarcity.