Züblin Immobilien Holding AG Announces Solid Financial Results for 2023/24 Despite Market Challenges

Züblin Immobilien Holding AG reported a successful operational performance for the financial year ending 31 March 2024. Despite challenging conditions including a rising interest rate environment and uncertain economic climate, the company achieved a stable outcome with a 5% increase in EBITDA, rising to CHF 6.3 million. The operating result also saw a growth of 3.6%, amounting to CHF 8.6 million, driven by new lettings and index increases.

However, property revaluations declined by CHF 3.4 million, a slight decrease from the previous year, stemming primarily from higher interest rates which saw the company’s average nominal discount rate increase by 30 basis points. Despite these valuation adjustments, Züblin’s net rental income maintained an attractive level of 3.9%. The firm’s financial expenses doubled to CHF 1.6 million due to increased rates. Yet, Züblin managed to keep administrative costs stable and reduced the expense ratio from rental income from 28.6% to 27.5% compared to the last year.

The company’s asset portfolio remained robust with significant contract extensions contributing to an increase in the average contractual lease term (WALT) from 2.9 to 6.4 years. This was supported by key tenancy agreements, including extensions with top tenants and new significant leases set to take effect in the upcoming financial year, promising a reduction in vacancy rates and continued rental income stability.

Züblin’s balance sheet remains resilient with a solid equity ratio and a conservative loan-to-value ratio. Continued dividends, maintaining a stable yield, are proposed to reward shareholders while ensuring sufficient funds for future property investments.