In the first half of 2025/26, the value of the investment properties increased by TCHF 3 570 or 1.5%. This was due to changes in market value of TCHF 2 155 or 0.9% and investments in the amount of TCHF 1 436. The linear recognition of rent-free periods in the amount of TCHF 21 had a value-decreasing effect.

The weighted average lease term (WALT) increased from 6.1 years to 6.2 years in the first half-year.

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 on the basis of 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 solely in the asset class office and in the Zurich region. The average capital-weighted nominal discount rate as of 30 September 2025 is 3.98%  (31 March 2025: 4.01%), in the range of 3.45% to 5.50% (31 March 2025: 3.50% to 5.50%). The average capital-weighted real capitalization rate is 2.98% (31 March 2025: 3.01%), in the range of 2.45% to 4.50% (31 March 2025: 2.50% to 4.50%).

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 ±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.

A complete 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. This additional information is an integral part of the notes to the consolidated financial statements.

Share capital

There were no changes in capital structure in the first half of the financial year 2025/26. As of 30 September 2025 there were 3 318 027 shares with a nominal value of CHF 22.50. This corresponds to a total share capital of TCHF 74 656.

Treasury shares

The company holds a total of 2 380 treasury shares as of 30 September 2025. No treasury shares were bought or sold in the first half of 2025/26. The treasury shares are reported as a negative item in equity at acquisition cost. As of 30 September 2025, the item is unchanged to 31 March 2025 at TCHF 63.

No distribution

The Annual General Meeting of Züblin Immobilien Holding AG on 26 June 2025 decided against a distribution for the 2024/25 financial year.

Based on the financial liabilities as of 30 September 2025 the following future contractual payment obligations exist (undiscounted amounts):

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.

As at 30 September 2025, the Züblin Groupʼs real estate portfolio is financed by variable-rate loans. The amounts shown as mortgages in the balance sheet include closing fees of TCHF 50 (31.03 2025: TCHF 57). These closing fees are also included in the average effective interest rate.

The mortgages include financial covenants which specify, among other things, adherence to certain financial indicators (loan to value ratio and equity ratio). The financial covenants are summarized in the table below:

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 has the opportunity to restore compliance with this financial covenant. The mortgage agreements also contain 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 outstanding borrowings.

As of balance sheet date, the Company was in compliance with all of its covenants.

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 30 September 2025 is TCHF 62 950 (31.03 2025: TCHF 63 943). During the first half year a repayment of TCHF 1 000 was made and non-cash changes occurred in the context of the compounding and discounting (+TCHF 7).

Transactions with related parties and significant shareholders

Unpaid Dividend to shareholder

As of 30 September 2025 Züblin Group has open payables to Lamesa Holding SA resulting from unpaid dividends in the amount of TCHF 9 673 (31.03 2025 TCHF 9 673). The liability does not bear interest.

There were no other transactions with related parties or significant shareholders in the first half of 2025/26. In addition, we refer to the Annual Report as at 31 March 2025.