Züblin Immobilien Holding AG: Züblin increases earnings in the first half of the financial year 2011/2012

Financials
Rental income for the half-year decreased by 14% compared with the same period last year to CHF 40m. Rental income declined in large part due to the disposal over the last two years of a significant number of investment properties which no longer fit in with Züblin's strategy, combined with the negative effect of the decline in the euro against the Swiss franc. Operating costs fell by 10% to CHF 11m and the EBITDA margin was reduced from 77% to 76%. Despite the difficult market environment most of the non-strategic investment properties, which were sold, could be disposed of at market value. The loss on sales of CHF 3m is mainly the result of one investment property. The market value of the remaining portfolio decreased by CHF 0.4m.

The fair value adjustment varied from country to country: there was a positive value adjustment of 2.8% in Switzerland, but a negative value adjustment of 0.7% in France and Germany and of 3.7% in the Netherlands. Financing costs totaled CHF 18m, compared with CHF 24m in the previous year. The difference was largely due to the reduction in mortgage finance as a result of the sale of investment properties. In addition the Group generated a significant foreign exchange gain by fully repaying a euro loan at holding level.

Overall, the Group generated a profit of CHF 3.6m (previous year CHF 3.2m). Cash flow related operating earnings remained unchanged compared with the prior-year period in spite of the reduction of rental income.

Seven investment properties sold
The total value of the portfolio decreased from CHF 1,282m as of 31 March 2011 to CHF 1,198m at 30 September 2011. Capital expenditures of CHF 16m were offset by the sale of seven investment properties with a value of CHF 39m. The seven investment properties, three of which were in Germany and four in the Netherlands, were part of the non-strategic portfolio. The portfolio was also hit by foreign exchange translation effects of CHF 61m as a result of the fall in the euro and the negative valuation adjustments of CHF 0.4m. The vacancy rate edged down slightly from 11.4% to 11.3%.

Stronger balance sheet – financing secured
The company issued a CHF 40 million Swiss franc bond in July 2011, which was topped up by a further CHF 10 million in September 2011. These funds were used to repay short-term property financings and to redeem a loan at holding level. Moreover, the majority of the proceeds from disposals were repaid to the banks, which led to an improvement in the loan- to-value ratio. This stood at 65.7%, an improvement of more than 3 percentage points compared to 31 March 2011.

In addition one short-term loan was extended for five years and the Company is in the final stages of negotiations on a three-year extension of a second loan. The average maturity of our financing is 3.1 years and the average interest rate of the Group increased by 0.1 percentage points to 4.6%.

EPRA equity per share lower due to strong Swiss franc
On 30 September 2011, EPRA net asset value per share was CHF 5.84, compared with CHF 5.94 at 31 March 2011. The most significant factor in this change was the strong Swiss franc. The EPRA equity ratio rose to 32%, up 1 percentage point on 31 March 2011.

Financing of the renovation project "Jatte 1" in Paris secured
The preparatory work for the renovation project “Jatte 1” in Paris has now been completed with the award of the contract to the Bouygues Group as total general contractor. The property, which is in a prime location, is being refurbished into a modern and energy-efficient office building. The building permit has been obtained and the final construction approval is expected during the first quarter 2012. The financing of the “Jatte 1” project is being provided internally.

New website
As of today Züblin has a new website. This provides the investors, tenants and partners with the access to an optimal information platform using the latest technology. The communication will be transparent, relevant and attractively presented. In addition the format of the online semi-annual report has been updated to allow it to be read interactively.

Outlook
Züblin will proceed with the renovation project “Jatte 1” as scheduled. Thus, the rental income is expected to decrease by around 10-15% until new tenants are able to move into the building in two years’ time. Thereafter the investment in “Jatte 1” will start to pay off. In spite of the ongoing difficult market conditions Züblin will continue to pursue its current strategy rigorously. This means investing in energy efficiency, improving the equity ratio and providing expertise and quality for the tenants, thus ensuring the Group's sustained growth.

Semi-annual report – financial year 2011/2012
The semi-annual report for financial year 2011/2012 is available online at www.zueblin.ch. The presentation from today’s analyst and investor conference call may be also found on the Company’s website. Züblin Immobilière France, the Company’s French subsidiary listed on the Euronext exchange in Paris, released its semi-annual results for Financial Year 2011/2012 after market close on 16 November 2011. Further information can be found at www.zueblin.fr.

Contact
Züblin Immobilien Holding AG Claridenstrasse 20 8002 Zürich Tel. 044 206 29 39 Fax 044 206 29 38