4. Detailed information on statement of profit and loss and OCI items
4.1 Rental income
The potential rental income decreased by TCHF 32 compared to the previous year and results mainly from adjusted market rents for vacant space in Berne. This adjustment has no effect on rental income, as the vacancy has also been reduced accordingly. Due to a change of tenant, the vacancy increased temporarily. Overall, rental income decreased by TCHF 33 compared to the previous year.
The following table shows the 5 main tenants who generated 64.9% of the rental income in the current financial year.
4.2 Real estate expenses
Total real estate expenses increased by kCHF 50 compared to the previous year. This is mainly due to a change in external property management as of July 2018. External property management fees increased by kCHF 72. Of these kCHF 25 are one-off costs for the assumption of the mandate in connection with implementation work at the new property manager.
4.3 Personnel expenses
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
Administrative expenses before other income fell by kCHF 478. On the one hand, this reflects the efforts of the company in connection with the reduction of administrative expenses. On the other hand, non-recurring expenses were recorded in the previous year which were not incurred in the current year.
The one-off effects in the previous year relate to increased investor relations expenses in connection with the modernization of the website and the conversion to a more cost-effective reporting program. The project-related consulting costs are on the one hand dependent on the potential acquisition opportunities, on the other hand the externally purchased services could be reduced by hiring an asset manager.
The reported income of kCHF 312 reflects settled claims from the German operations sold in 2017. In the previous year the kCHF 707 came form a surplus of an escrow account set up in connection with the sale of a property in the Netherlands.
4.5 Financial expense and income
Financial expenses fell by CHF 3.4 million compared to the previous year and now mainly relate to interest on the mortgage loan. In the previous year, interest expenses of CHF 3.3 million were burdened by interest rate hedges.
The interest income of kCHF 485 relates entirely to a tax credit. Further explanation can be found in note 4.6.
4.6 Income taxes
Income tax
In the financial year 2018/19 Züblin recorded a current tax income of CHF 5.3 million (previous year income of CHF 0.9 million). This tax income mainly results from the reversal of tax provisions as a result of the definitive assessments of Züblin Immobilien AG for property gains taxes (for the changes of ownership in 2009 and 2013) as well as income taxes for the financial years 2009/2010 to 2012/2013 (cantonal and municipal taxes, direct federal taxes). In the tax years concerned, the inter- and intra-cantonal loss offsetting for property gains tax and ordinary income tax was particularly unclear. The tax provisions as at 31 March 2018 reflected the maximum and at this time most probable risk in this respect. As part of the assessment procedure, the question of loss offsetting was clarified with the tax authorities and a solution was found, allowing the tax provisions as at 31 March 2019 to be adjusted accordingly. Now, the receivable from income taxes amounts to CHF 5.0 Mio. (previous year: CHF 2.6 Mio.).
The above mentioned defintive tax assessments led to higher cantonal and municipal taxes for the concerned periods and therefore reduced the amount of outstanding tax loss carry forwards. This reduction in tax loss carry forwards led to an additional deferred tax expense of CHF 1.3 Mio.
Income tax reconciliation
4.7 Earnings per share
Züblin Immobilien Holding AG has no equity instruments which would lead to a dilution.
