Rental income increased by kCHF 204 in the 2023/24 financial year. In addition to the kCHF 32 lower vacancy loss, index increases in particular contributed to this increase. These essentially led to an increase in potential rental income of kCHF 161 compared to the same period of the previous year.

Below is an overview of the five largest tenants, which generate 46.5% of rental income.

The future rental income from non-cancellable rental agreements as at the balance sheet date is categorised as follows:

As a rule, the leases are indexed contracts with a term of 5 to 10 years. Some rental agreements contain options for early termination of the rental relationship (included in the categorisation above). In addition, there are unlimited rental contracts amounting to kCHF 144 (previous year: kCHF 597) with notice periods of between 3 and 6 months.

The property expenses directly attributable to the investment properties correspond to 2.6% (previous year: 3.9%) of rental income.

The decrease of kCHF 116 is explained by one-off effects in the previous year: out-of-period impact on non-allocable heating and ancillary costs (kCHF 33), impairment of a rent receivable (kCHF 40) and the sustainability analysis of the properties included in other property expenses (kCHF 50).

A total of four employees were employed as at 31 March 2024 (previous year: five). Accordingly, wages and salaries wages and salaries decreased by kCHF 86.

Other personnel expenses include expenses for lump-sum expenses for employees and members of the Board of Directors. This item also includes the cost of directorsʼ and officersʼ liability insurance premiums, the costs for recruiting new employees and expenses for further education and training for existing employees. The increase in other personnel expenses is due to the recruitment of new employees.

Other income

The other income in the previous year resulted from insurance reimbursements. No other income was recognised in the current financial year.

The financial expenses mainly relate to mortgage interest. The mortgages are agreed at variable rates based on SARON. Accordingly, mortgage interest rates have increased by kCHF 822 compared to the previous year in line with the development of SARON.

As in the previous year, no current income taxes were incurred in the financial year 2023/24.

In 2023/24, income from deferred income taxes of kCHF 141 was recognised, whereas in the previous year the adjustment of deferred taxes led to an expense of kCHF 896. This change was mainly due to changes in the valuation of investment properties. These resulted in a reversal of the deferred tax liability in the amount of kCHF 473. In the previous year, the deferred tax liability had to be increased by kCHF 433 in this context.

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

Estimates are necessary for the determination of current as well as deferred taxes. These assumptions relate to the following:

Current tax

The Züblin Group is subject to taxation in Switzerland as well as in the countries where its subsidiaries operate. The determination of the provision for current taxes in these jurisdictions requires significant judgment by Executive Management, as the final tax position of many transactions and calculations is unclear.

Deferred tax

Capital gains tax is included in the calculation of deferred taxes on investment properties in Switzerland. These taxes are dependent upon the holding period of the assets, which is determined as follows: for properties that are held for sale, the actual holding period plus one year has been used. For all other properties, either a period of fifteen years, or the actual holding period plus one year if greater than fifteen years, has been assumed. Assumptions are also necessary for deferred tax assets from tax loss carry-forwards. These losses are only capitalized when the use of the losses in the future is probable. The determination as to whether such losses can be offset in the future is based on estimates of the future cash flows deriving from the property, together with estimates by Group Management on the likelihood of utilization of these loss carry-forwards in future periods. Based upon these factors, a probability is assigned to each potential asset and subsequently valued and recorded.

Züblin Immobilien Holding AG has no equity instruments which would lead to a dilution. The average number of dividend-bearing shares is calculated under consideration of the 2 380 treasury shares.