Züblin reports profit increase of 70 percent
Züblin Immobilien Holding generated a profit of CHF 3.4 million in the first half of financial year 2022/23. In the same period of the previous year, the figure was CHF 2 million.
Despite the geopolitical risks and the turnaround in interest rates, Züblin Immobilien Holding is positive about the 2022/23 financial year. According to the real estate company, the first half of the year was satisfactory, providing a reason for optimism: the bottom line is a profit of CHF 3.4 million (+70%) or CHF 1.02 per share. The return on equity increased from 3.0% in the previous year to now 5.0%.
According to the company, profit before changes in market value reached CHF 2.1 million and was thus around 30% above the previous year's figure of CHF 1.6 million. Züblin cites rental successes from the previous year in particular as the reason for the increase. These had led to an increase in operating income from rentals of around CHF 8% to CHF 4.1 million. At the same time, administrative costs fell by 13%.
The revaluation of the property portfolio led to a change in market value of CHF 1.3 million (previous year: CHF 0.5 million). At 3.7%, the net rental income generated was slightly below the previous year's figure of 3.8%.
The value of the real estate portfolio consisting of six properties was CHF 226.7 million (+0.7%). Rental income reached CHF 8.9 million (PY: 9.1 million). According to Züblin it, the rental contracts for office space are mainly indexed. Therefore, the incipient inflation is not expected to have a significant impact on the operating income from rentals at the end of the current financial year. The weighted average lease term (WALT) of the overall portfolio is 3.1 years.
Züblin further states that it is sticking to its strategy of only acquiring properties that are in line with its strategy. In addition, the real estate company is pursuing opportunities to achieve growth through mergers with smaller portfolios. (ah)
