4. Detailed information on statement of profit and loss and OCI items

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4.1 Rental income

in CHF thousands	1.4.2017 to 31.3.2018	1.4.2016 to 31.3.2017

Potential rental income	9 106	9 093
Vacancy	–980	–1 044
Net rent reductions	–40	–19
Rental income	8 086	8 030

In the current year rental income increased by kCHF 56 (previous year kCHF 110) as a result of vacancy reduction.

4.2 Real estate expenses

in CHF thousands	1.4.2017 to 31.3.2018	1.4.2016 to 31.3.2017

External property management fees	–157	–26
Insurance	–67	–98
Marketing costs	–74	–121
Non recoverable service charges	–60	–48
Bad debts	–17	0
Property taxes	–23	–12
Legal fees	–15	–2
Other property-related expense	–7	–5
Total real estate expense	–420	–312

The outsorcing of property managment activities led to an increase of kCHF 131 in real estate expenses. This increase was partially offset by savings in marketing and insurance costs.

4.3 Personnel expenses

in CHF thousands	1.4.2017 to 31.3.2018	1.4.2016 to 31.3.2017

Wages and salaries	–2 662	–2 489
Social security contributions	–187	–137
Pension plan expenses	–118	–150
Other personnel expenses	–359	–293
Total personnel expenses	–3 326	–3 069

Other personnel expenses include lump-sum expense allowance and travel cost for employees and member of the Board of Directors, fees for directorsʼ and officersʼ insurance, costs for recruting of new employees and expenses for the further training of existing staff.

4.4 Administrative expense

in CHF thousands	1.4.2017 to 31.3.2018	1.4.2016 to 31.3.2017

Other advisory and investor relations	–439	–304
Legal and tax advisory	–272	–137
Bookkeeping and IT	–207	–213
Rent expenses	–188	–209
Travel expenses	–182	–202
Project related advisory expenses	–177	–81
Audit	–152	–164
Other taxes	–144	–50
Valuation	–35	–42
Notarial charges	–21	–5
Depreciation	–18	–13
Other administrative expense	–89	–232
Administrative expense before other income	–1 924	–1 652

Other income	707	530
Total administrative expense	–1 217	–1 122

Administrative expenses before other income increased by kCHF 272, reflecting on one hand higher project-related advisory expenses (+kCHF 96) for potential real estate acquisitions (sunk deal costs). On the other hand the adaption and modernization of website and online reports to more advanced technical requirements led to an increase in other advisory services and investor relations expenses of kCHF 135, while the costs for legal and tax advisory servcies rose by the same amount. These expenses mainly result from tax clarifications in connection with property gains taxes.

The reported income of kCHF 707 mainly results from a surplus of an escrow account, which was set up in connection with the sale of a property in the Netherlands for construction measures still to be carried out. Construction work has now largely been completed.

4.5 Financial expense and income

in CHF thousands	1.4.2017 to 31.3.2018	1.4.2016 to 31.3.2017

Financial expense
Mortgage and swap interest expenses 1 2	–4 206	–1 856
thereof recycled from equity	–2 607	0
Other interest expenses 1	–30	–36
Currency translation adjustments	0	–492
Total financial expense	–4 236	–2 384

Financial income
Interest income 3	1	1
Interest income shareholder loan 3	75	389
Currency translation adjustments	317	0
Total financial income	393	390
Net financial expense	–3 843	–1 994

1 The respective liabilities belong to the category "Financial liabilities at amortized cost".

2 The liabilities from interest swaps belong to the category "Financial liabilities at fair value through profit and loss".

3 The assets to which this income relates belong to the category "Loans and receivables at amortized cost".

As of 14 September 2017 the CHF 80 million interest rate swap was repaid at a market value of CHF 19.3 million, resulting in a valuation loss of CHF 0.7 million. The unrealized losses of CHF 2.6 million recorded in the equity cash flow hedge reserve were recycled through the income statement. Overall, the interest rate swap led to financial expenses of CHF 3.3 million (previous year CHF 0.8 million) in the current reporting period.

4.6 Income taxes

Income tax

in CHF thousands	2017/18	2016/17

Income taxes in profit and loss
Current taxes	0	0
Current taxes from previous year	852	–454
Total current taxes	852	–454

Changes in tax loss carry forwards	–301	89
Changes in valuation	–718	–1 232
Changes in other positions	294	–49
Total deferred taxes	–725	–1 192
Total income taxes in profit and loss	127	–1 646

Income taxes in comprehensive income statement
Current taxes in equity	0	0
Deferred taxes in equity	–585	–527
Total income taxes in comprehensive income statement	–585	–527

In the financial year 2017/18 Züblin recorded a current tax income of CHF 0.9 million (previous year expense of CHF 0.5 milion). The income relates in the amount of kCHF 760 to the release of a tax accrual after final assessment.

The deferred tax expense results from the reduction of the tax asset in connection with tax losses carry forwards, from net changes in fair value of real estate investments and from provisions for major repairs recognised for tax purposes, which are not applicable under IFRS.

Income tax reconciliation

in CHF thousands	2017/2018	2016/2017

Financial year
Profit before tax	569	3 759
Reference rate 1	15.03%	16.24%
Income taxes at reference rate	–86	–1 316
Income taxes recogized in Profit & Loss	127	–1 646
Difference	213	–330
Adjustments:
– Non tax-deductible expenses	–333	0
– Non-taxable income	200	0
– Changes in tax rates on deferred tax positions	236	–104
– Items taxed at other than reference rate	–669	–116
– Changes in loss carry forwards not recognized	–73	518
– Income taxes from previous periods	853	–454
– Others	–1	–186

1 The reference tax rate for the Group is calculated at 15.49% (previous year 16.24%). The calculation was made using absolute numbers.

4.7 Earnings per share

in CHF thousands	1.4.2017 to 31.3.2018	1.4.2016 to 31.3.2017

Average number of shares entitled to dividends	3 318 027	3 318 027

Earnings of shareholders of Züblin Immobilien Holding AG	–29 252	29 926
therof
from continuing operations	697	2 113
from discontinuing operations	–29 949	27 813

Earnings per share in CHF	–8.82	9.02
therof
from continuing operations	0.21	0.64
from discontinuing operations	–9.03	8.38

Züblin Immobilien Holding AG has no equity instruments which would lead to a dilution.

4. Detailed information on statement of profit and loss and OCI items

4.1 Rental income

4.2 Real estate expenses

4.3 Personnel expenses

4.4 Administrative expense

4.5 Financial expense and income

4.6 Income taxes

Income tax

Income tax reconciliation

4.7 Earnings per share

Downloads

Annual Report 2017/18

Facts & Figures

Letter to Shareholders

Portfolio

Corporate Governance

Compensation Report

Financial Report