Profit slump at Züblin Immobilien Holding
Züblin Immobilien Holding AG reports a profit of CHF 2.0 million for the first half of the 2020/21 financial year. This is a decrease of more than half compared to the same period of the previous year.
As announced by Züblin Immobilien Holding AG, earnings fell from CHF 4.4 million in the same period of the previous year to CHF 2.0 million in the current half-year. Earnings per share for the first six months of the 2020/21 financial year amounted to CHF 0.60 (previous year: CHF 1.33).
Changes in the market value of investment properties after investments amounted to -0.1 million. However, EBIT before changes in the market value of investment properties rose by 0.3 million or 11% compared to the first half of 2019/20 and amounted to 3.0 million. Profit before changes in market value amounted to 2.1 million - an increase of 0.6 million or 40% compared to the same period of the previous year (1.5 million).
According to Züblin, the reason for the positive development is the measures introduced in the previous year to optimize the cost structure. For example, personnel expenses and administrative expenses were reduced. At 4.3 million, net operating income remained stable compared to the previous year.
According to Züblin, the balance sheet value of the six investment properties increased slightly by 0.1 million to 218.0 million in the reporting period. The lockdown had only a minor impact on the income from the properties, it added. Rent reductions of around CHF 48,000 were agreed with the tenants affected, which corresponds to 0.5% of annualized rental income.
Market values of properties fall
According to the real estate company, the crisis-related uncertainties in the transaction market are reflected in the valuations and have taken into account discounts in non-core locations outside the city of Zurich since March 2020. The market values of 220.3 million as at September 30, 2019 could not be achieved again. This mainly relates to the locations in Bern, Baden and Egg, which account for 28% of the portfolio value.
The vacancy rate was 8.8% at the end of September 2020 (March 31, 2020: 8.2%). Following a sharp slowdown in the letting market in connection with the coronavirus pandemic and the lockdown, marketing has since resumed. One fifth of the partial space in the property on Holbeinstrasse in Zurich that became vacant in February 2021 has been re-let. The weighted average lease term (WALT) of the entire portfolio as at the end of September 2020 is estimated at 3.4 years (March 31, 2020: 3.8 years). (ah)
