Positive half-year result as at 30 September 2025

Ad hoc announcement pursuant Article 53 LR - Züblin Immobilien Holding AG
Zurich, 6 November 2025

Züblin achieved a good result in the first half of 2025/26. The vacancy rate fell to 4.3% and group net profit was CHF 4.2 million, well above the prior-year level of CHF 2.4 million. The market value of the real estate portfolio rose by 1.5% to CHF 239.2 million

 

Higher operating income

Rental income rose by around CHF 0.6 million or 13.2% compared with the previous year to CHF 4.95 million. The increase was due to a fall in the vacancy rate and the payment of a rental claim written off in the prior year. The new lettings in Bern, which were already announced previously, led to a 32.6% decline in vacancy losses to CHF 0.3 million (previous year: CHF 0.4 million). The vacancy rate stood at 4.3% at the reporting date, a decline of 0.5 percentage points compared with 31 March 2025. At the contract extension the rent for an important lease was reduced slightly to reflect a lower prepaid fit-out. Owing to the indexation of a high proportion of our leases and the resulting Inflation adjustments to rents, target rental income remained virtually unchanged at CHF 5.04 million. Without the one-off effects of bad debts, it would have been around 2.7% or CHF 0.1 million higher than in the previous year.

Real estate expenses rose by CHF 36,000 to CHF 160,000. The reasons for the increase were higher building insurance premiums and increased property tax accruals following a new fair value appraisal. Ongoing maintenance costs were around CHF 74,000 higher than in the previous year due to renovations of technical facilities.

Lower wages and salaries and the release of an accrual for social security contributions led to a CHF 58,000 fall in personnel expenses compared with the previous year. Administrative expenses increased by CHF 0.1 million to CHF 0.6 million owing to higher expenses for legal and tax advice in conjunction with ongoing projects along with one-off effects.

EBITDA rose by CHF 0.4 million or around 13% compared with the previous year to CHF 3.4 million.

The real estate portfolio was revalued upwards by CHF 2.2 million or 0.9%, compared with a revaluation of CHF 0.5 million or 0.2% in the first half of financial year 2024/25. The more favourable market environment deriving from lower official interest rates resulted in a 4 basis point fall in discount rates across the entire portfolio. In spite of this adjustment, the net rental yield remains at an attractive level of 3.8% (previous year: 4.0%). Financial expenses fell by 53% to CHF 0.4 million due to lower interest rates, while outstanding mortgages remained almost unchanged. The average effective interest rate was 1.22% on the balance sheet date, down 13 basis points from 31 March 2025. Borrowing is at a variable interest rate linked to SARON, on the basis of a committed credit line with a remaining term of 3.5 years. The tax-deductible loss carryforwards from previous years were completely used up in financial year 2024/25. Hence the taxable net profit for 2025/26 will be subject in full to income tax.

Overall the company achieved a good result in the first half of 2025/26. Net profit was CHF 4.3 million in the first six months of the financial year (previous year: CHF 2.4 million), which corresponds to CHF 1.31 per share (previous year: CHF 0.73 per share). EPRA earnings, which exclude revaluation effects, rose by CHF 0.6 million to CHF 2.7 million, which corresponds to an operating result (EPRA earnings per share) of CHF 0.82 per share (previous year: CHF 0.62 per share), an increase of 31%.

Low borrowing and new financing partners

Total assets amounted to CHF 243.6 million at 30 September 2025 (31 March 2025: CHF 239.4 million). The increase by CHF 4.3 million was due to higher market values of the investment properties and a prepaid tenant fit-out. The equity ratio remained almost unchanged at 60.1% (31 March 2025: 59.3%). Net asset value (NAV) per share amounted to CHF 44.12 and the share price was CHF 46.20 at 30 September, a premium of 4.7% to NAV.

The real estate portfolio was valued at CHF 239.2 million on the reporting date (CHF 235.6 million at 31 March 2025). Mortgages totalled CHF 63.0 million (31 March 2025: CHF 64.0 million) and financing has been broadened across several banks. Including net liabilities, the EPRA LTV was virtually unchanged at 30.3%.

Outlook

Investor confidence in the real estate market has returned, which is reflected in near-record issuance of real estate investment vehicles. The sharp fall in yields on government and corporate bonds in Swiss francs has made real estate investments more attractive. With its low LTV ratio, Züblin is in a good position to take advantage of potential buying opportunities.

 

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