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

Open all NotesClose all Notes

4.1 Rental income

in CHF thousands	1.4.2020 to 31.3.2021	1.4.2019 to 31.3.2020

Potential rental income	10 250	10 219
Vacancy	–1 036	–798
Net rent reductions	–52	0
Rental income	9 162	9 421

Rental income decreased by kCHF 259 compared to the previous year. The reason for this is an increase in vacancy due to tenant move out in the Holbeinstrasse property in Zurich. With regards to the pandemic related lockdown, tenants were granted rent reductions of kCHF 45. The amount is included in the position net rent reductions.

The following table shows the 5 main tenants who generated 50.5% of the rental income in the current financial year.

Tenant	Sector	%

Baker & McKenzie	Law firm	35.3
BR Bauhandel AG	Distribution	4.6
Testo Industrial Services AG	Quality control	4.6
Notariat Oerlikon-Zürich	Notary	3.2
Logismata AG	IT	2.8
Total		50.5

The following table contains a maturity analysis of lease payments. It is categorized by contract terms and illustrates the undiscounted lease payments to be received after the reporting date:

in CHF thousands	31.03.2021	31.03.2020

Less than one year	743	1 748
One to two years	591	699
Two to three years	613	634
Three to four years	853	632
Four to five years	3 870	786
More than five years	1 582	4 945
Total undiscounted lease payments	8 252	9 444

4.2 Real estate expenses

in CHF thousands	1.4.2020 to 31.3.2021	1.4.2019 to 31.3.2020

External property management fees	–230	–243
Non recoverable service charges	–109	–78
Insurance	–85	–79
Marketing costs	–61	–46
Property taxes	–28	–24
Legal fees	–17	0
Other property-related expenses	–60	–60
Total real estate expenses	–590	–530

Total real estate expenses increased by kCHF 60 compared to the previous year. The increase is due to higher legal costs and an increase in non-recoverable service charge costs.

4.3 Personnel expenses

in CHF thousands	1.4.2020 to 31.3.2021	1.4.2019 to 31.3.2020

Wages and salaries	–1 466	–1 554
Social security contributions	–128	–119
Pension plan expenses	–90	–107
Other personnel expenses	–100	–95
Total personnel expenses	–1 784	–1 875

Personnel expenses decreased by kCHF 91 or 5% compared to the previous year. This is primarily due to the changes in the management team.

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	1.4.2020 to 31.3.2021	1.4.2019 to 31.3.2020

Other advisory and investor relations	–220	–220
Legal and tax advisory	–106	–239
Bookkeeping and IT	–103	–104
Rent expenses	–95	–191
Other taxes	–71	–89
Audit	–69	–67
Project related advisory expenses	–57	–23
Depreciation	–47	–25
Valuation	–41	–42
Notarial charges	–4	–1
Travel expenses	–2	–9
Other administrative expenses	–53	–95
Total administrative expenses	–868	–1 105

Administrative expenses decreased by kCHF 237 or 21%. In the previous year, there were one-off expenses with regards to the final assessment of real estate gains taxes and legal advice to simplify the corporate structure. In addition, rental expenses decreased by kCHF 96 due to the relocation to own property.

Other income

In the previous year, other income mainly related to surpluses from the settlement of an escrow account, which was set up in connection with the sale of the German portfolio in 2017.

4.5 Financial expense and income

in CHF thousands	1.4.2020 to 31.3.2021	1.4.2019 to 31.3.2020

Financial expenses
Mortgage interest expenses 1	–734	–743
Other interest expenses 1	–1	–2
Currency translation adjustments	0	–106
Total financial expenses	–735	–851

Financial income
Interest income 2	0	230
Currency translation adjustments	18	0
Total financial income	18	230
Net financial expenses	–717	–621

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

2 The assets to which this income relates belong to the category "Financial Assets at amortized cost".

Financial expenses mainly relate to interest on the mortgage loan. These have decreased due to the partial repayment of the mortgage during the year.

The previous year was influenced by one-time effects from interest income in connection with a tax refund, as well as currency losses from the the translation of the euro balance in Germany, which was received from the reversal of the escrow account.

4.6 Income taxes

Income tax

in CHF thousands	1.4.2020 to 31.3.2021	1.4.2019 to 31.3.2020

Income taxes in profit and loss
Current taxes from previous year	–10	271
Total current taxes	–10	271

Changes in tax loss carry forwards	–242	–365
Changes in valuation	–725	–642
Changes in other positions	–280	–275
Total deferred taxes	–1 247	–1 282
Total income taxes in profit and loss	–1 257	–1 011

Income taxes in comprehensive income statement (OCI)
Current taxes in OCI	0	0
Deferred taxes in OCI	–12	5
Total income taxes in comprehensive income statement (OCI)	–12	5

The current tax income in the amount of kCHF 271 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 current financial year, the current tax expense relates to an additional payment for the 2017/18 financial year.

As in the previous year, expenses for deferred income taxes amount to kCHF 1,247 (previous year kCHF 1,282).

Overall, income tax expense in the financial year 2020/21 amounted to kCHF 1,257 (previous year kCHF 1,011).

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

in CHF thousands	1.4.2020 to 31.3.2021	1.4.2019 to 31.3.2020

Financial year
Profit before tax	5 276	5 639
Reference rate 1	19.57%	19.57%
Income taxes at reference rate	–1 033	–1 103
Income taxes recogized in Profit & Loss	–1 257	–1 011
Difference	–224	92
Adjustments:
– Changes in tax rates on deferred tax positions	58	217
– Items taxed at other than reference rate	–109	–65
– Changes in loss carry forwards not recognized	–163	–99
– Income taxes from previous periods	–10	39

1 The reference tax rate for the Group is calculated at 19.57% (previous year 19.57%). The calculation was made using absolute numbers.

4.7 Earnings per share

in CHF thousands	1.4.2020 to 31.3.2021	1.4.2019 to 31.3.2020

Average number of shares entitled to dividends	3 315 647	3 316 303

Earnings	4 019	4 628

Earnings per share in CHF	1.21	1.40

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