In the 2024/25 financial year, the value of the investment properties increased by kCHF 10 500 or 4.7%.

Lower discount rates across the entire portfolio led to an overall positive change in market value of TCHF 5 838 (previous year -TCHF 3 428). Investments in refurbishment and tenant improvements totalled TCHF 4 720 (previous year: TCHF 1 598).

The weighted average lease term (WALT) as of 31 March 2025 is 6.1 years (previous year: 6.4 years).

Investment properties are valued twice a year by Jones Lang La Salle AG (JLL). The discounted cash flow (DCF) method is used to determine fair value on the valuation date. Under this method the fair value of a property is determined by the sum of projected future net earnings discounted to the valuation date plus the discounted exit value. A detailed cash flow forecast is produced for the first ten years, with a residual value (exit value) being determined on basis of a perpetual annuity of the exit cash flow for the rest of the term. The projected gross rental income is determined based on existing tenancies and assumptions on reletting at current market rents, with allowance made for the relevant marketing periods and the probability of current leases being renewed. The net rental income is defined as the gross rental income less property-specific costs that cannot be passed on to tenants plus maintenance and any renovation required for new rentals. The discount calculation is carried out separately for each property, taking account of its property-specific risks and opportunities, in line with market conditions and on a risk-adjusted basis.

Züblin is currently invested exclusively in the office asset class and primarily in the Zurich economic area. The average capital-weighted nominal discount rate is 4.01% as of 31 March 2025 (previous year: 4.35%), in the range of 3.50% to 5.50% (previous year: 3.85% to 5.80%). The average capital-weighted capitalization rate is 3.01% (previous year: 3.10%), in the range of 2.50% to 4.50% (previous year: 2.60% to 4.55%).

The following tables show a sensitivity analysis of the two parameters Discount Rate and Market Rent, which have a significant influence on the valuation of the investment properties.

Valuation effects in relation to changes in market rents (effects up to max. ±8% percent):

Valuation effects in relation to changes in discount rates (effects are shown in ±10 basis points):

The principles and assumptions applied in the valuation of the investment properties are set out in the valuation report.

The 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 financial statements.

As of the balance sheet date, the Company had cash and cash equivalents of kCHF 1 646 (previous year: kCHF 2 097).

Share capital

As of 31 March 2025, there were 3 318 027 shares issued with a nominal value of CHF 22.50, resulting in a share capital of kCHF 74 656. The capital structure remained unchanged in the fiscal years 2024/25 and 2023/24.

Treasury shares

The company holds a total of 2 380 treasury shares as of 31 March 2025. In fiscal year 2024/25, the company neither purchased nor sold treasury shares. Treasury shares are reported as a negative item in equity at cost. As of 31 March 2025, the position remains unchanged at kCHF 63.

Distribution from capital contribution reserves

The Annual General Meeting of Züblin Immobilien Holding AG on 27 June 2024 approved a withholding tax-free distribution of CHF 1.00 per dividend-entitled registered share (Namenaktie) from statutory capital reserves. This corresponds to a total amount of kCHF 3 316. On 3 July 2024, a distribution of kCHF 1 934 was made in favour of the shareholders.

As has been the case since 2018, the distribution due to Lamesa Holding SA was recognised as a liability in the balance sheet item «Liabilities to participants».

Undiscounted cash outflows of existing liabilities as of 31 March 2025

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. 

Carrying amounts and fair values of all recognized financial instruments in accordance with IFRS 13

Since the carrying amounts of the financial assets at amortized cost and financial liabilities at amortized cost reflect in most cases a reasonable approximation of their fair value, the fair values are only separately listed below, if there are deviations from the carrying amount.

The reported value of financial assets reflects the maximum default risk disregarding any collateral in case the contractual partners fail to meet their payment obligations. No concentration of default risks arising from business relations with individual debtors or groups of debtors has been identified. The sole financial debt position currently held by Züblin is the mortgage. For more details, please refer to 5.9 «Mortgages».

As of 31 March 2025, 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 kCHF 57 (previous year: kCHF 71). 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 following are the currently applicable financial covenants:

        Loan to Value (LTV)       ≤ 60%
        Equity ratio                    ≥ 10%

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 (partial) repayment of the loan. If the LTV rises above 60%, the company could 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 or Lamesa Holding SA exercises direct or indirect control over more than 41.65% of the voting rights or shares in Züblin Immobilien Holding AG. A delisting of Züblin Immobilien Holding AG would also lead to an immediate repayment of the outstanding borrowing.

As in the previous year, the Group was in compliance with all its covenants as of the balance sheet date.

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.

Züblin currently finances itself entirely through mortgages. The balance sheet value as at 31 March 2025 is kCHF 63 943 (previous year: kCHF 62 929). The changes in financing activities during the financial year relate to repayments in the amount of kCHF 1 000 and borrowings in the amount of kCHF 2 000. Non-cash changes occurred in the context of the compounding and discounting (+kCHF 14).

The Züblin Group has a defined benefit plan according to IAS 19 in Switzerland. In the past twelve months, expenditures of kCHF 55 (previous year: kCHF 74) were recorded for the defined benefit plan.

Swiss pension schemes are governed by the Swiss Federal Law on Occupational Retirement,«Survivors», and Disability Pension Plans (BVG). The pension plan is financed by contributions from both employer and employees. The BVG requires pension schemes to be run as legally independent institutions. The pension scheme is headed by a board of trustees composed of an equal number of employer and employee representatives. It is responsible for determining and implementing the investment strategy.

The following amounts are based upon the «Project Unit Credit»-method:

The above amount is shown in the balance sheet under «Pension liabilities».

Pension liabilities and assets changed as follows in the Züblin Groupʼs consolidated balance sheet:

Breakdown of pension expenses:

The weighted average duration of the defined benefit plans is 11.9 years (previous year: 13.7 years).

The remeasurement of the net pension obligation reported in other comprehensive income breaks down as follows:

The calculation of the Groupʼs pension liabilities is based on the following assumptions:

A sensitivity analysis was carried out using constant assumptions for the most important assumptions used to calculate the pension liabilities.

Asset allocation: 100% of the assets are managed and invested by a reinsurance company. Furthermore, the Company has insured a minimum return on its pension assets. Therefore, a detailed asset allocation is not presented.

As in the previous year, Züblin has no liabilities from long-term rental agreements in the reporting year.

In accordance with IAS 24, related parties for the reporting financial year included:

1. The Board of Directors
2. Members of Züblin Executive Management
3. Lamesa Holding SA, Panama

Shareholdings by related parties as of 31 March 2025

Shareholdings by the Board of Directors and the Executive Management are disclosed in detail in note 5.14.

Transactions with related parties and significant shareholders

Unpaid Dividend to shareholder

As of 31 March 2025, the Züblin Group has open payables to Lamesa Holding SA resulting from unpaid dividends in the amount of kCHF 9 673 (previous year: kCHF 8 291). Further details are disclosed in note 5.6. The payable shown in the balance sheet line «Liabilities to Participants» does not bare any interest.

There were no other transactions with related parties or significant shareholders in financial year 2024/25. Nor were any advisory fees paid to related parties or significant shareholders over and above the remuneration disclosed in note 5.13. The Board of Directors and Executive Management continually monitor potential conflicts of interest.

Loans to members of governing bodies

No loans have been granted to members of the Board of Directors or the Züblin Executive Management.

Compensation of the members of the Board of Directors

Compensation of the Executive Management (CEO)