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16.05.2024 07:01:11 - dpa-AFX: EQS-Adhoc: Annual Results as of 31 March 2024 / Successful Operating Result 2023/24 (english)
Annual Results as of 31 March 2024 / Successful Operating Result 2023/24
Züblin Immobilien Holding AG / Key word(s): Annual Results
Annual Results as of 31 March 2024 / Successful Operating Result 2023/24
16-May-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
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Ad hoc announcement pursuant Article 53 LR - Züblin Immobilien Holding AG
Zurich, 16 May 2024
Züblin can look back on an operationally successful year at the end of the
2023/24 financial year. However, the uncertain economic situation and the
rise in interest rates have had an impact on the revaluations of our
properties. In spite of this, corporate key figures confirm our track record
in asset management, which has enabled us to achieve a solid result for the
full financial year ended on 31 March 2024 in a market environment that
continues to be challenging. This performance sets an important cornerstone
for the coming and subsequent financial years.
Improved earnings situation - rise in EBITDA by 5%
In a still demanding market environment, Züblin achieved a solid result in
the financial year 2023/24 thanks to operational successes. EBITDA rose by
5% from CHF 6.0 million to CHF 6.3 million, while the operating result
increased by 3.6% from CHF 8.3 million to CHF 8.6 million, mainly due to
index increases and new lettings. In spite of special one-off items,
administrative expenses remained stable at the previous year's level at CHF
2.4 million. The decline in the administrative expenses/rental income ratio
from 28.6% to 27.5% underlines our efficiency improvements.
The revaluation of the investment property portfolio led to an adjustment of
CHF 3.4 million (- 0.8%), whereby a positive impact of CHF 1.1 million was
reported in the previous year. This was mainly due to the increase in the
average nominal discount rate by 30 basis points as a result of the higher
interest rate environment. Despite this adjustment, net rental income
remained at an attractive level of 3.9% (previous year: 3.7%). Financial
expenses rose from CHF 0.8 million to CHF 1.6 million as a result of the
interest rate increases. The average effective interest rate on the balance
sheet date was 3.1% (previous year: 2.0%). Financing is variable on the
basis of SARON.
Good operating performance, particularly in the rental business, enabled
Züblin to close the 2023/24 financial year with a positive overall result
despite the difficult environment and market challenges. The profit
generated in the reporting period totalled CHF 1.3 million. Compared to the
previous year (CHF 5.3 million), this represents a decrease of CHF 4.0
million, which is primarily attributable to lower revaluations (-CHF 3.6
million after tax) and higher financial expenses (+CHF 0.8 million).
However, successful lettings demonstrate the stability of the portfolio and
thus of the company. For the current financial year, the operating income
from letting is expected to continue to develop positively due to the rental
agreements already concluded and coming into force in the second quarter.
Resilient portfolio - WALT 6.4 years
The letting business was highly successful in the reporting period and led
to a significant increase in WALT (average contractual lease term) from 2.9
to 6.4 years. The total asset value of the property portfolio, which still
comprises six properties, was CHF 225.1 million as at 31 March 2024
(previous year: CHF 227.1 million).
Contract extensions with long-standing regular tenants helped to further
stabilise the portfolio. The tenancy agreements with two of our
long-standing top 5 tenants were extended until 2029 and at least 2035
respectively. It is also pleasing to note that 10-year rental agreements
already signed for an entire floor at the property in Bern and for our newly
designed space in Egg will take effect in the second quarter of the 2024/25
financial year. These lettings will help to reduce the vacancy rate from the
current 9.3% (previous year: 9.3%) to below 6%. These positive developments
emphasise our efforts to safeguard the intrinsic value of our portfolio.
Sound balance sheet - Loan-to-Value Ratio at 31.0%
Thanks to a solid equity ratio of 59.5% (previous year: 59.5%), Züblin's
total assets amounted to CHF 229.4 million as at 31 March 2024 (previous
year: CHF 232.6 million). At CHF 41.19, the net asset value (NAV) per share
was slightly below the figure of CHF 41.77 as at 31 March 2023.
The real estate portfolio was valued at CHF 225.1 million at the end of the
financial year, compared to CHF 227.1 million in the previous year. Five of
our six investment properties are still financed via a framework loan of CHF
100.0 million until 2029. As at the balance sheet date, CHF 63.0 million of
this had been utilised (previous year CHF 65.0 million). Accordingly, the
EPRA loan-to-value ratio (LTV) is 31.0%, compared to 30.7% in the previous
year.
Continued dividend policy
The earnings before changes in market value and deferred taxes of CHF 4.6
million (previous year: CHF 5.1 million) will enable the company to continue
its stable dividend policy and allow shareholders to continue to participate
in the company's success. By distributing CHF 1.00 per registered share
entitled to dividends, Züblin aims to ensure that sufficient funds remain
available for property investments in the company in the now more attractive
market environment.
The Board of Directors will propose to the 2024 Annual General Meeting that
a tax-free distribution of CHF 1.00 per dividend-bearing registered share be
made from the statutory capital contribution reserves. Based on the share
price on the balance sheet date, this corresponds to a tax-free distribution
yield of 3.9%. Since the decision to start paying dividends again in 2018,
returns have remained stable at between 3.7% and 4.3%.
Changes in the Executive Management
After 15 years of successful work for the Züblin Group, Roland Friederich
has informed the Board of Directors of his decision to step down as CEO/CFO
of Züblin with effect from 30 September 2024.
Roland Friederich comments: «I look back fondly on my 15 years at Züblin,
during which I was able to support the company in many exciting projects.
After a challenging restructuring and consistently pursued consolidation
phase, Züblin is now a lean and efficient organisation. We succeeded in
stabilising the portfolio, securing our rental income in the long term, and
continuously reducing vacancy rates. With the shift from a seller-driven to
a more buyer-driven market, it is now time for Züblin to focus more on
growth. With a new CEO who has local knowledge and a strong network, Züblin
can write a new chapter in the company's history. I wish my successor every
success and all the good experiences that I have been able to take with me
from my time at Züblin. I would like to thank the Board of Directors and
especially my employees, colleagues and partners for their unparalleled
commitment, their valuable support, and the great cooperation. I would also
like to thank our stakeholders for the trust they have always placed in me».
The Board of Directors has appointed Mr Philippe Brändle as his successor.
Mr Brändle holds a master's degree in architecture and business
administration. After working in property consulting, he took on management
responsibility at two leading Swiss property companies from 2016 as CEO and
from 2021 as CFO.
Chairman of the Board of Directors Dr Markus Wesnitzer comments on the
nomination: «As part of a carefully conducted recruitment process, the Board
of Directors placed particular emphasis on market-oriented real estate
expertise and a broad network in Switzerland for Züblin's future
development. The Board of Directors is looking forward to working with Mr
Brändle. I would also like to thank Mr Friederich for the long and trusting
cooperation».
Outlook
The close partnership with our tenants has continued to prove its worth in
the last few challenging months. With regard to the 2023/24 financial year
that has just ended, Züblin has a good operational starting position in all
areas for the coming financial year. The focus remains unchanged on the
sustainable, qualitative development of the portfolio and the continuous
reduction of vacancies. Our goal of substantially expanding the portfolio
through the targeted acquisition of properties in line with our strategy
remains unchanged.
* * * * * * *
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End of Inside Information
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End of Announcement EQS News Service
---------------------------------------------------------------------------
1904385 16-May-2024 CET/CEST
Züblin Immobilien Holding AG / Key word(s): Annual Results
Annual Results as of 31 March 2024 / Successful Operating Result 2023/24
16-May-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Ad hoc announcement pursuant Article 53 LR - Züblin Immobilien Holding AG
Zurich, 16 May 2024
Züblin can look back on an operationally successful year at the end of the
2023/24 financial year. However, the uncertain economic situation and the
rise in interest rates have had an impact on the revaluations of our
properties. In spite of this, corporate key figures confirm our track record
in asset management, which has enabled us to achieve a solid result for the
full financial year ended on 31 March 2024 in a market environment that
continues to be challenging. This performance sets an important cornerstone
for the coming and subsequent financial years.
Improved earnings situation - rise in EBITDA by 5%
In a still demanding market environment, Züblin achieved a solid result in
the financial year 2023/24 thanks to operational successes. EBITDA rose by
5% from CHF 6.0 million to CHF 6.3 million, while the operating result
increased by 3.6% from CHF 8.3 million to CHF 8.6 million, mainly due to
index increases and new lettings. In spite of special one-off items,
administrative expenses remained stable at the previous year's level at CHF
2.4 million. The decline in the administrative expenses/rental income ratio
from 28.6% to 27.5% underlines our efficiency improvements.
The revaluation of the investment property portfolio led to an adjustment of
CHF 3.4 million (- 0.8%), whereby a positive impact of CHF 1.1 million was
reported in the previous year. This was mainly due to the increase in the
average nominal discount rate by 30 basis points as a result of the higher
interest rate environment. Despite this adjustment, net rental income
remained at an attractive level of 3.9% (previous year: 3.7%). Financial
expenses rose from CHF 0.8 million to CHF 1.6 million as a result of the
interest rate increases. The average effective interest rate on the balance
sheet date was 3.1% (previous year: 2.0%). Financing is variable on the
basis of SARON.
Good operating performance, particularly in the rental business, enabled
Züblin to close the 2023/24 financial year with a positive overall result
despite the difficult environment and market challenges. The profit
generated in the reporting period totalled CHF 1.3 million. Compared to the
previous year (CHF 5.3 million), this represents a decrease of CHF 4.0
million, which is primarily attributable to lower revaluations (-CHF 3.6
million after tax) and higher financial expenses (+CHF 0.8 million).
However, successful lettings demonstrate the stability of the portfolio and
thus of the company. For the current financial year, the operating income
from letting is expected to continue to develop positively due to the rental
agreements already concluded and coming into force in the second quarter.
Resilient portfolio - WALT 6.4 years
The letting business was highly successful in the reporting period and led
to a significant increase in WALT (average contractual lease term) from 2.9
to 6.4 years. The total asset value of the property portfolio, which still
comprises six properties, was CHF 225.1 million as at 31 March 2024
(previous year: CHF 227.1 million).
Contract extensions with long-standing regular tenants helped to further
stabilise the portfolio. The tenancy agreements with two of our
long-standing top 5 tenants were extended until 2029 and at least 2035
respectively. It is also pleasing to note that 10-year rental agreements
already signed for an entire floor at the property in Bern and for our newly
designed space in Egg will take effect in the second quarter of the 2024/25
financial year. These lettings will help to reduce the vacancy rate from the
current 9.3% (previous year: 9.3%) to below 6%. These positive developments
emphasise our efforts to safeguard the intrinsic value of our portfolio.
Sound balance sheet - Loan-to-Value Ratio at 31.0%
Thanks to a solid equity ratio of 59.5% (previous year: 59.5%), Züblin's
total assets amounted to CHF 229.4 million as at 31 March 2024 (previous
year: CHF 232.6 million). At CHF 41.19, the net asset value (NAV) per share
was slightly below the figure of CHF 41.77 as at 31 March 2023.
The real estate portfolio was valued at CHF 225.1 million at the end of the
financial year, compared to CHF 227.1 million in the previous year. Five of
our six investment properties are still financed via a framework loan of CHF
100.0 million until 2029. As at the balance sheet date, CHF 63.0 million of
this had been utilised (previous year CHF 65.0 million). Accordingly, the
EPRA loan-to-value ratio (LTV) is 31.0%, compared to 30.7% in the previous
year.
Continued dividend policy
The earnings before changes in market value and deferred taxes of CHF 4.6
million (previous year: CHF 5.1 million) will enable the company to continue
its stable dividend policy and allow shareholders to continue to participate
in the company's success. By distributing CHF 1.00 per registered share
entitled to dividends, Züblin aims to ensure that sufficient funds remain
available for property investments in the company in the now more attractive
market environment.
The Board of Directors will propose to the 2024 Annual General Meeting that
a tax-free distribution of CHF 1.00 per dividend-bearing registered share be
made from the statutory capital contribution reserves. Based on the share
price on the balance sheet date, this corresponds to a tax-free distribution
yield of 3.9%. Since the decision to start paying dividends again in 2018,
returns have remained stable at between 3.7% and 4.3%.
Changes in the Executive Management
After 15 years of successful work for the Züblin Group, Roland Friederich
has informed the Board of Directors of his decision to step down as CEO/CFO
of Züblin with effect from 30 September 2024.
Roland Friederich comments: «I look back fondly on my 15 years at Züblin,
during which I was able to support the company in many exciting projects.
After a challenging restructuring and consistently pursued consolidation
phase, Züblin is now a lean and efficient organisation. We succeeded in
stabilising the portfolio, securing our rental income in the long term, and
continuously reducing vacancy rates. With the shift from a seller-driven to
a more buyer-driven market, it is now time for Züblin to focus more on
growth. With a new CEO who has local knowledge and a strong network, Züblin
can write a new chapter in the company's history. I wish my successor every
success and all the good experiences that I have been able to take with me
from my time at Züblin. I would like to thank the Board of Directors and
especially my employees, colleagues and partners for their unparalleled
commitment, their valuable support, and the great cooperation. I would also
like to thank our stakeholders for the trust they have always placed in me».
The Board of Directors has appointed Mr Philippe Brändle as his successor.
Mr Brändle holds a master's degree in architecture and business
administration. After working in property consulting, he took on management
responsibility at two leading Swiss property companies from 2016 as CEO and
from 2021 as CFO.
Chairman of the Board of Directors Dr Markus Wesnitzer comments on the
nomination: «As part of a carefully conducted recruitment process, the Board
of Directors placed particular emphasis on market-oriented real estate
expertise and a broad network in Switzerland for Züblin's future
development. The Board of Directors is looking forward to working with Mr
Brändle. I would also like to thank Mr Friederich for the long and trusting
cooperation».
Outlook
The close partnership with our tenants has continued to prove its worth in
the last few challenging months. With regard to the 2023/24 financial year
that has just ended, Züblin has a good operational starting position in all
areas for the coming financial year. The focus remains unchanged on the
sustainable, qualitative development of the portfolio and the continuous
reduction of vacancies. Our goal of substantially expanding the portfolio
through the targeted acquisition of properties in line with our strategy
remains unchanged.
* * * * * * *
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End of Inside Information
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Language: English
Company: Züblin Immobilien Holding AG
Hardturmstrasse 76
8005 Zürich
Switzerland
Phone: +41 44 206 29 39
Fax: +41 44 206 29 38
E-mail: investor.relations@zueblin.ch
Internet: www.zueblin.ch
ISIN: CH0312309682
Listed: SIX Swiss Exchange
EQS News ID: 1904385
End of Announcement EQS News Service
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1904385 16-May-2024 CET/CEST
