4. DETAILED INFORMATION ON STATEMENT OF FINANCIAL POSITION ITEMS
4.1 Investment properties
In the first half of 2020/21, the value of the investment properties increased by KCHF 120, mainly due to value-enhancing investments of KCHF 183.
This was offset by changes in market value of KCHF 63. The positive changes in market value mainly related to the property in Zurich, Hardturmstrasse. The negative changes in market value related to the properties in Baden, Egg and Zurich, Holbeinstrasse.
Weighted average lease term (WALT) decreased in the first half year from 3.8 years to 3.4 years.
The principles and assumptions applied in the valuation of the investment properties are set out in the valuation report.
A complete list of all investment properties along with all information in accordance with the Directive on Financial Reporting of the SIX Swiss Exchange can be found in the portfolio section of this annual report. This additional information is an integral part of the notes to the consolidated semi-annual financial statements.
4.2 Equity
Treasury shares
There were no transactions with own shares in the first half of 2020/21.
The changes in treasury shares have an impact on the weighted average number. The follwoing table provides an overview of the calcuation of earnings per shares.
Distribution from capital reserves
The Annual General Meeting of Züblin Immobilien Holding AG on 17 June 2020 approved a distribution of CHF 1.00 per registered share from capital reserves. This corresponds to a total amount of kCHF 3 318.
On 23 June 2020, a distribution of kCHF 1 934 was made in favour of the shareholders. The dividends attributable to Lamesa Holding SA was carried as a liability in the balancs sheet item “liabilities to participants”.
4.3 Future contractual maturities
Based on the financial liabilities as of 30 September 2020 the following future contractual payment obligations exist (undiscounted amounts):
Trade accounts payable and the other short-term liabilities are incurred in the course of the Groupʼs operating activities and are covered by the short-term assets.
4.4 Mortgages
As of 30 September 2020 Züblin Groupʼs real estate portfolio is financed entirely by one variable-rate loan. The amounts shown as mortgages in the balance sheet include closing fees of CHF 0.1 million (31.3.20: CHF 0.2 million). These closing fees are also reflected in the calculation of the average effective interest rate.
The mortgage includes financial covenants which specify, among other things, adherence to certain financial indicators (loan-to-value ratio and equity ratio). The financial covenants are summarized in the table below:
Züblin monitors compliance with these covenants on a quarterly basis. The breach of a covenant may have a variety of consequences and can result among other consequences in a higher interest rate or a (partiall) repayment of the loan. If the LTV rises above 60%, the company has the opportunity to restore compliance with this financial covenant. The mortgage agreement also contains a “change of control” clause which stipulates the repayment of the entire loan if Züblin Immobilien Holding AG holds less than 50.1% of the voting rights or shares in the borrowing subsidiary.
As of balance sheet date, the Company was in compliance with all of its covenants.
The table below summarizes the value of investment properties pledged as security for mortgages:
Insurance policies for investment properties have been pledged as security over and above the mortgage lines.
