4. Detailed information on statement of profit and loss and OCI items
4.1 Rental income
Potential rental income increased by TCHF 1ʼ145 compared to the previous year, mainly due to the acquisition of the property in Zurich-Oerlikon. New rentals in Berne and Egg led to a reduction in vacancies of TCHF 243, while the increase in vacancies in Baden had a counteracting effect. Overall, rental income increased by TCHF 1ʼ368 compared with the previous year.
The following table shows the 5 main tenants who generated 57.0% of the rental income in the current financial year.
The following table contains a maturity analysis of lease payments categorised by contract term, showing the undiscounted lease payments to be received after the reporting date:
4.2 Real estate expenses
Total real estate expenses increased by CHFk 60 compared to the previous year. In addition to higher marketing costs, the increase is due to the acquisition of the property in Zurich Oerlikon.
4.3 Personnel expenses
The decrease in personnel expenses by CHFk 1ʼ382 results from lower bonus payments and a reduction in the number of employees from eight to five during the year.
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 fell by CHFk 341 or 24%. On the one hand, this is a result of the further optimization of the companyʼs cost structure, on the other hand, one-off expenses were incurred in the previous year – particularly in the area of consulting costs – in connection with the final assessment of property gains taxes and legal advice in connection with the simplification of the corporate structure.
Other income of TCHF 511 mainly relates to surpluses from the settlement of an escrow account set up in connection with the sale of the German portfolio in 2017. Also in the previous year, other income mainly related to settled claims resulting from the sale of the German portfolio.
4.5 Financial expense and income
Financial expenses mainly relate to interest on the mortgage loan. In connection with the acquisition of the Zurich Oerlikon property, limits provided under the framework financing were used.
As in the previous year, the interest income of CHFk 230 relates exclusively to an income tax credit. More detailed information can be found in note 4.6.
4.6 Income taxes
The current tax income in the amount of CHF 0.3 million results mainly from the release of tax provisions due to the definitive assessments of Züblin Immobilien AG for property gains taxes (for the changes of ownerships in 2009 and 2013) as well as the income taxes for the financial years 2009/2010 to 2012/2013 (cantonal and municipal taxes, direct federal taxes). In the previous year, provisions in the amount of CHF 5.3 million were already released in this connection. In the tax years concerned, the inter- and intra-cantonal loss offset for real estate gains tax and ordinary income tax in particular was unclear. The tax provisions as at 31 March 2018 reflected the maximum and most probable risk at that time. As part of the assessment procedure, the issue of loss offsetting was clarified with the tax authorities and a solution was found, which meant that the tax provisions as at 31 March 2019 could be adjusted accordingly. In the current financial year, all tax years were finally settled.
The expenses for deferred income taxes amount to CHF 1.3 million in the current financial year (previous year: CHF 2.3 million). In the previous year, deferred taxes included a special effect in the amount of CHF 1.3 million, which was due to the additional release of loss carryforwards in connection with the above-mentioned assessments.
In total, income tax expenses in the 2019/20 financial year amounted to CHF 1.0 million. This corresponds to a decrease of CHF 4.0 million compared with income of CHF 3.0 million in the previous year. As already explained, this is entirely attributable to special items in connection with the clarification of the issue of loss offsetting.
The following table provides a reconciliation of income taxes at the reference tax rate to the income tax reported in the income statement:
Income tax reconciliation
4.7 Earnings per share
Züblin Immobilien Holding AG has no equity instruments which would lead to a dilution.