Züblin reduces loss
Züblin Immobilien Holding AG sees itself on course. The change in strategy at the ailing real estate company has led to significant improvements, the company says. For example, Züblin succeeded in significantly reducing its loss in the past financial year. The equity ratio reached 25.1 percent at the end of March. At the end of the last financial year, it was still at 4.8 percent, making balance sheet restructuring measures necessary.
Züblin Immobilien Holding recorded a net loss of CHF 18.9 million in financial year 2015/16 - the previous year had still resulted in a loss of CHF 212 million. EBIT was CHF 18.1 million, compared with a valuation-related operating loss of CHF 22.9 million in the previous year. According to Züblin, the reason for the plus is positive revaluation effects of CHF 7.8 million.
Rental income from continuing operations, which includes all activities in Switzerland and Germany, was CHF 2.8 million lower than in the previous year at CHF 18.7 million. According to Züblin, this decline is primarily due to property sales and the impact of the CHF/euro exchange rate. The good development in the German portfolio contributed to the reduction of the vacancy rate from 13.7 to nine percent.
Exit from the French market impacts earnings
Income from continuing operations also improved substantially. In the year under review, a profit of CHF 7.7 million resulted, compared with a loss of CHF 84.2 million in the previous year. In addition to valuation adjustments, this loss was influenced by financial expenses (currency translations and the derecognition of swaps) amounting to 43 million.
At the end of July 2015, the economic withdrawal from the French market took place, as an investor was found for the French subsidiary Züblin Immobilière France. As a result, the investment was written down. The cost of this exit amounted to CHF 26.6 million and resulted in the consolidated loss of CHF 18.9 million. Of this amount, 15.1 million was attributable to the derecognition of currency differences and cash flow hedges, which did not affect the net asset value (NAV).
Vacancy rate decreases
Züblin's core portfolio currently consists of 17 office properties with a portfolio value of CHF 331 million as of March 31, 2016, of which 196 million is attributable to Switzerland and 135 million to Germany. The Swiss portfolio comprises five properties with a vacancy rate of 12.4 percent (previous year: 13.6%); the German portfolio consists of twelve properties and recorded a decrease in the vacancy rate from 13.8 to a new 6.4 percent.
Züblin now considers itself ready for the next phase of growth. The company intends to expand and plans to acquire properties with potential in good locations in A-cities as well as in premium locations in B-cities in German-speaking countries. (ah)
