letter to our shareholders

Dr. Markus Wesnitzer, Chairman – Philippe Brändle, CEO

Züblin achieved a good result in the first half of 2024/25. Lettings helped the vacancy rate to decline to 6.6% and rental income to grow by 2.5%. Group net profit was CHF 2.4 million, significantly above the previous year's result of CHF 0.5 million. The market value of the real estate portfolio was stable at CHF 225.9 million as at 30 September 2024.

Income boosted by successful lettings

The Swiss real estate market stabilised in the reporting period under the influence of declining inflation and lower interest rates. Against this backdrop, Züblin achieved a solid result of CHF 2.4 million in the first half of 2024/25 (previous year: CHF 0.5 million). Revaluations of CHF 0.5 million (previous year: CHF –2.2 million) contributed significantly to the good result.

New leases signed from the second quarter of the financial year led rental income to rise by 2.5% to CHF 4.6 million. However, operating income from letting fell slightly from CHF 4.3 million in the previous year to CHF 4.1 million due to the precautionary write-off of an outstanding rent receivable.

Both personnel and administrative expenses of CHF 1.1 million and financial expenses of CHF 0.8 million remained steady. Earnings per share rose markedly from CHF 0.15 in the previous year to CHF 0.73.

Stable portfolio – Vacancy rate at 6.6%

The key data for the property portfolio improved significantly in the first six months of the financial year thanks to success in lettings, with annualized rental income growing from CHF 9.2 million to CHF 9.6 million, while the portfolio's vacancy rate fell from 9.3% to 6.6%.

As at the valuation date of 30 September 2024, the value of the portfolio increased by 0.3% to CHF 225.9 million, based on an unchanged, average, weighted nominal discount rate of 4.35%. The rise in market value reflects the quality of the portfolio and the company’s letting successes.

The signing of a 10-year lease for the entire first floor (around 1 800m2) at Morgenstrasse 136 in Bern represents a particular letting achievement. An innovative MedTech company has taken up research, development and sales operations on the premises since 1 July 2024. This letting reduced the vacancy rate in the property from 47.5% to 27.9%.

Solid balance sheet – LTV ratio at 31.6%

Supported by a solid equity ratio of 58.9% (31 March 2024: 59.5%), Züblin's total assets stood at CHF 230.5 million at 30 September 2024. Net asset value (NAV) per share was CHF 40.93, down slightly on CHF 41.19 as at 31 March 2024 following the distribution of CHF 1.00 to shareholders in June 2024.

The real estate portfolio was valued at CHF 225.9 million at the end of the first half of the 2024/25 financial year. Five of our six investment properties are still financed by a CHF 100 million framework facility that will expire in 2029. Utilization of this facility was unchanged at CHF 63.0 million at the balance sheet date. Accordingly, the loan-to-value ratio (LTV) is 31.6% (31 March 2024: 31.0%).

Outlook

The high quality of our property portfolio has proven to be particularly valuable in a market undergoing adjustments and structural changes. Züblin has a solid operational base from which to continue the positive development of the portfolio in the current financial year.

Philippe Brändle took over as Züblin’s new CEO in mid-September. In addition to broad-based experience and local market knowledge, he also brings a strong network to the role. The Board of Directors is looking forward to opening a new chapter in the company's history together with the new CEO.

Züblin continues to focus on developing the quality and sustainability of the portfolio and actively reducing vacancies. We aim both to maintain the value of our portfolio through targeted measures and create added value for all Züblin stakeholders by making new investments in properties that are aligned with the company's strategy.

Dr. Markus Wesnitzer

Chairman

Philippe Brändle

CEO