about our PORTFOLIO
Züblinʼs portfolio benefited from the upturn in the Swiss property market, which was reflected in an increase in market values by CHF 10.5 million to CHF 235.6 million. Operating earnings (EPRA earnings per share) increased by 6.1% to CHF 1.29/share (previous year CHF 1.22/share) as a result of rental increases, vacancy reductions and stringent cost control.
Helped by active asset management, rental income increased by CHF 0.4 million year-on-year to CHF 9.4 million, a rise of 4.3%. An increase in target rents by CHF 0.2 million (+1.6% compared to the previous year) and a decline in vacancies by CHF 0.2 million (–24.7% compared to the previous year) both contributed to this.
The considerably improved market environment – in particular growing investor interest, associated with a fall in yield requirements as a result of significantly lower interest rates and refinancing costs – led the market value of the investment property portfolio to increase by CHF 10.5 million to CHF 235.6 million. The average real discount rate fell by 9 basis points as against the previous year, while long-term inflation was estimated 25 basis points lower at 1.00%. This resulted in the nominal discount rate declining by 30 basis points. The reduction in the real discount rate by 9 basis points was the main driver of the appreciation of CHF 5.8 million, or 2.6% (previous year: decrease in market value of CHF 3.4 million, or 1.5%). Higher estimated future property refurbishment costs and lower market rents had a value-reducing effect. With a total value of CHF 235.6 million at 31 March 2025, the market values of the properties were CHF 10.5 million, or 4.7%, higher than in the previous year.
Key figures of the Portfolio
Our properties at a glance
The Holbeinstrasse property in Zurichʼs Seefeld area is in good overall condition and fully let. In the past financial year, the general building lighting was completely converted to energy-efficient LED technology. The long-term tenancy agreement with an international law firm located in the property since 2010 accounts for 32% of Züblinʼs total rental income. The current WALT of the property is 8.0 years.
At Morgenstrasse in Bern-Bümpliz, space on the 2nd floor has been let to a highly innovative medical technology company on a long-term lease since July 2024. The tenant fit-out was completed successfully and the space was handed over on time for the new lease. From autumn 2025, an additional unit of around 800 m² has been let to a well-established gym/fitness centre with a lease term of 7 years. The gym will increase the siteʼs attractiveness for other tenants and makes us optimistic that the remaining vacant space on the 3rd floor will also be let. The vacancy rate will fall below 20% from autumn 2025 – a further step towards full occupancy. The current WALT of the property is 5.7 years. The conversion of the heating system to district heating is currently being planned.
At Gewerbestrasse in Egg (near Zurich), we are continuing the successful approach of letting small office units with shared access to general infrastructure such as meeting rooms and a communal kitchen. To meet the continuing demand for flexible, cost-efficient space for smaller companies, a vacant space of around 400 m² is to be converted into this type of use in the second quarter of 2025. The WALT is 2.8 years.
Züblin holds a condominium share of around 34% in the centrally located property at Hofwiesenstrasse, directly opposite Zurich-Oerlikon railway station. Following a tenant departure, an office space of around 250 m² was modernised and converted. A long-term contract for 10 years was signed with an Ergotherapy Centre as the new tenant. Hence both a good follow-on solution has been found, and the space has been optimized with regard to its future usability. Extensive refurbishment work is planned in this property in the coming financial year. This will include renovating all sanitary facilities, upgrading to current fire safety standards and updating the electrical installations. The WALT is 4.5 years.
The property on Hardturmstrasse in Zurich-West is still fully let. Rental agreements with various tenants were extended in the past financial year. The current WALT is 3.4 years. The propertyʼs lighting system was fully migrated to energy-efficient LED technology.
The property on Rütistrasse in Baden is fully let. Leases have been renewed with various tenants in the past financial year. Access to the district heating network has been applied for from the coming financial year. The technical and planning arrangements for the switch of the heating system to sustainable energy are underway. The current WALT of the property is 3.7 years.
Major tenants
Züblinʼs portfolio comprises a number of longstanding and high-quality tenants. Our major tenants include well-known companies and administrative bodies of the City of Zurich. Our top 5 tenants account for 44.6% of our rental income.
Rental contract analysis
The chart illustrates the timeline of expiring leases based on effective rental income (contract rent).
Sustainability and environmental indicators
Social, environmental and economic sustainability are guiding principles in all strategic and operational decisions and underpin all of Züblinʼs operating activities.
Environmental and economic sustainability includes the responsible use of resources in Züblinʼs day-to-day operations as well as in construction and renovation projects. We consider ourselves to be a responsible participant in the real estate industry and strive to successively enhance the sustainability of our portfolio. In doing so, we take into account the lifespan of the individual building components and grey energy and plan their replacement at the most effective time.
Züblin is committed to continuing on the path towards a sustainably managed real estate portfolio. Over the last financial year our focus was again on taking practical steps to reduce energy consumption and CO₂ emissions, for example by fully converting the general lighting into energy-efficient LED technology in three out of six properties. This not only contributes to improving the energy footprint, but also reduces operating costs in the long term. For the properties in Bern and Baden, the link-up to the district heating network has been prepared and the technical and planning preparations for the switch to renewable heating systems are underway. It is expected to become operational within the next three years and represents an important step towards further decarbonising the portfolio. Züblin maintains a close dialogue with its tenants to enable it to offer needs-based solutions to promote sustainable Mobility Solutions in existing buildings.
Another milestone is the introduction of green leases. Since early 2025, all new leases have been concluded in accordance with sustainable contractual standards. These commit both parties to take environmental criteria into account throughout the term of the lease and paves the way for increased cooperation in sustainable management of the property. We aim to maintain a trusting and cooperative dialogue with our tenants and service providers.
We fulfil our social responsibility towards our employees by providing attractive working conditions and jobs, developing employees systematically and supporting continuing professional development.
Due to our relatively small size, we remain below the statutory thresholds for comprehensive sustainability reporting. Consequently, we concentrate on providing a fact-based presentation of our key environmental figures that demonstrate our efforts to reduce CO2 emissions. The indicators collected at a property level are used as a basis for prioritising measures to further reduce energy consumption and CO2 emissions.
The key figures cover the calendar years 2023 and 2024 and are based on the energy suppliersʼ consumption data for total heating/cooling, water and general electricity. Tenantsʼ electricity consumption is not included.
Strategic focus
Züblin concentrates on investments in office properties in the main business centres and agglomerations of German-speaking Switzerland. Acquisitions will only be made if they meet the investment criteria we have defined, complement the portfolio in a sustainable manner and ensure the creation of added value in the long term.
Our investment criteria
