ZÜBLIN IMMOBILIEN HOLDING AG / Publication of the half-year report 2021/22 as of September 30, 2021

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Züblin Immobilien Holding AG / Keyword (s): Half-year results

10-Nov-2021 / 06:31 CET / CEST
Publication of an ad hoc announcement in accordance with art. 53 LR
The issuer is solely responsible for the content of this advertisement.

Ad hoc announcement in application of article 53 LR

Zurich, November 10, 2021

The financial results of Züblin Immobilien Holding AG for the six-month period ended September 30, 2021 paint a positive picture. The vacancy rate is down 3%, while annualized rental income is up 4%. In addition, the six investment properties benefited from a market value increase of 1% to reach a total of CHF 219.8 million. With the impact of operational adjustments in asset management, the net operating result amounts to CHF 3.8 million. Net profit remained unchanged compared to the previous year at CHF 2.0 million. Overall, Züblin can look forward to a strong first half of fiscal year 2021/22.

Profits remain stable

The two COVID-19 lockdowns had only a limited impact on Züblin’s portfolio in terms of affected tenant segments and rent defaults, exemptions and tenant deferrals. The assumptions we made in spring 2020 turned out to be realistic, as revenue losses amounted to 0.5% of annualized rents over the past 18 months.

Net profit amounted to CHF 2.0 million in the period under review, unchanged from the first half of fiscal year 2020/21. The net operating result fell by 12% compared to the previous year to CHF 3.8 million due to the vacancies expected during the re-let of the Holbeinstrasse building. With a strong demand for space on this site and the reorientation of our asset management, the marketing of vacant office space has so far made good progress. The market value of buildings after investments increased slightly by CHF 0.5 million (+ 0.2%) and stood at CHF 219.8 million as of September 30, 2021.

The Züblin earnings per share amounted to CHF 0.61 (previous year 0.60) in the first six months of the 2021/22 financial year.

Sustainable real estate portfolio

The portfolio still includes six investment properties in the economic catchment areas of Zurich (5) and the city of Bern (1). The total value of the portfolio after investment was revalued slightly upwards by CHF 1.1 million during the period under review and amounted to CHF 219.8 million as of September 30, 2021.

The properties have proven to be robust during the two pandemic closures thanks to its good location and the quality of its tenants. The strong economic recovery has boosted confidence in almost all sectors of the economy. This is reflected in the growing demand for office space in our buildings in Zurich, Egg and Baden. We have also registered a growing interest in offering space for our property in Morgenstrasse.

Successful rentals to quality tenants at Holbeinstrasse, Zurich and the TORRE building in Baden have reduced the vacancy rate from 15.7% to 12.6%. The weighted average lease term (WALT) was 3.5 years at the closing date.

Improvements in terms of energy efficiency (Swiss Minergie standard) were implemented in three Züblin buildings during their renovations and / or conversions between 2010 and 2013. In addition, Züblin introduced the monitoring of consumption data for energy in its buildings in 2006. This is a prerequisite for determining the potential for improving energy consumption and ensures data transparency, which facilitates cooperation between tenant and landlord. Züblin takes its responsibilities seriously and invests in targeted measures to achieve an optimal energy profile in its properties.

Secure financial position and low LTV ratio

As of September 30, 2021, Züblin held CHF 1.5 million in cash and cash equivalents. The portfolio continues to be funded by a revolving credit facility of CHF 118 million, of which only CHF 67 million has been drawn. This results in a loan-to-value (LTV) ratio of 30.5% for the entire portfolio. Discussions are currently underway for the loan which is due to expire in September 2022. The company also has access to authorized capital of CHF 37 million to fund its future growth. This was extended for two years until 2023 by this year’s annual general meeting.

Continuation of the stable dividend policy

Züblin shareholders approved an unchanged distribution of capital reserves of CHF 1.00 per registered share at the 32nd annual general meeting on June 22, 2021. This resulted in a dividend yield of 3.8% based on the share price at the end of the financial year on March 31. 2021.

Board of directors and management

The Board of Directors is always composed of four members. Thanks to the Board’s diverse experience in the areas of real estate, law, banking and investments, as well as the financial and real estate expertise of the Züblin management, the overall organizational structure is commensurate with the size of the company.

Outlook

The measures taken to optimize our space offer have been well received by interested tenants and have resulted in successful rentals. We will continue to examine other measures to improve the attractiveness of our offices to ensure that they meet the changing demands for flexible workplace design and provide the best possible support for our marketing.

The interest rate and yield environment remains challenging, as does the continued pressure on institutional investors in the Swiss office property market to invest in good central locations. Achieving healthy growth is a challenge for Züblin in today’s transaction environment, as properties that meet both our criteria for sustainability and value creation are scarce. The board of directors and management agree that Züblin should only acquire properties if they support long-term value creation for all of Züblin’s stakeholders. That is why the Züblin team is increasingly focusing on forward-looking projects and investments in order to continuously modernize its properties and adapt the portfolio to the future.

Full half-year report
The full half-year report 2021/22 is available on our website at the following link:
http://reports.zueblin.ch

Züblin analyst / press conference on November 10, 2021 at 9:30 a.m.
The presentation can also be viewed on our website.

KEY FIGURES AS OF SEPTEMBER 30, 2021

1st semester 2021/22
ending on 30.09.2021

1st semester 2020/21
ending on 30.09.2020
(The balance sheet relates

Switch
percent

Income statement

Rental income

million CHF

4.2

4.7

-10.6

Net operating income

million CHF

3.8

4.3

-11.6

Change in the market value of investment properties

million CHF

0.5

-0.1

> 100

EBITDA

million CHF

2.6

3.0

-13.3

Profit before change in market value

million CHF

1.6

2.1

-23.8

Earnings

million CHF

2.0

2.0

0.0

Return on equity

%

3.0

3.0

0.0

Balance sheet

Investment property

million CHF

219.8

218.7

0.5

Equity

million CHF

132.5

133.7

-0.9

Capital ratio

%

59.2

60.0

-0.8

Mortgages

million CHF

66.9

66.9

0.0

Ready to value

%

30.5

30.6

-0.1

Key figures per share in CHF

Shareholder benefits

CHF

0.6

0.6

1.7

NAV per share

CHF

40.0

40.3

-0.9

EPRA VNR per share

CHF

44.6

44.9

-0.6

Share price on the closing date

CHF

27.6

26.6

3.8

Wallet

Annualized rental income

million CHF

8.6

8.3

3.6

EPRA net initial yield (NIY)

%

3.5

3.4

0.1

Average effective interest rate

%

1.1

1.1

0.0

Money vacancy rate

%

12.6

15.7

-3.1

Please download the press release from the following link:
Press release (PDF)

More information
Roland Friederich, CEO / CFO
Züblin Immobilien Holding AG, Hardturmstrasse 76, 8005 Zürich
Phone.
+41 44 206 29 39
E-mail:
[email protected]

End of ad hoc announcement


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