Rental income increased by kCHF 391 in the 2024/25 financial year. In addition to the kCHF 224 lower vacancy loss, index increases in particular contributed to this increase. These essentially led to an increase in potential rental income of kCHF 164 compared to the same period of the previous year.

Below is an overview of the five largest tenants, which generate 44.6% 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 109 (previous year: kCHF 144) with notice periods of between 3 and 6 months.

The property expenses directly attributable to the investment properties correspond to 4.8% (previous year: 2.6%) of rental income.

The increase of kCHF 219 is explained by one-off effects: impairment of a rent receivable (kCHF 237) and legal fees associated with this case (kCHF 15).

A total of four employees were employed as at 31 March 2025 (previous year: four). The increase in personnel expenses by kCHF 42 compared to the previous year is primarily due to increased wages and salaries due to a time overlap between the old and new CEO for 3.5 months as well as a salary increase for existing employees and a corresponding increase in social benefits. This was partially offset by the decrease in other personnel expenses by kCHF 153, which is attributable to increased costs in the previous year for the recruitment of the new CEO.

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.

The increase in administrative expenses by kCHF 78 is primarily due to higher costs in connection with the adaptation of the Articles of Association to the new Swiss Corporate Law, which was reflected in higher costs for investor relations and legal advice.

The financial expenses mainly relate to mortgage interest. The mortgages are agreed at variable rates based on SARON. Accordingly, mortgage interest rates have decreased by kCHF 290 compared to the previous year in line with the development of SARON.

In the 2024/25 financial year, the taxable annual result of Züblin Immobilien AG exceeded the losses carried forward from previous years and current income taxes were incurred accordingly. In the previous year, no current income taxes were incurred due to tax loss carryforwards.

In 2024/25, an expense from deferred income taxes of kCHF 2 026 was recognised, whereas in the previous year the adjustment of deferred taxes led to an income of kCHF 141. This change was mainly due to changes in the valuation of investment properties. These resulted in an increase of the deferred tax liability in the amount of kCHF 1 787, whereas in the previous year this led to a reversal of the deferred tax liability in the amount of kCHF 473.

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.