Zblin Boosts Cash Flow, Yet Devalued

ZURICH-Swiss listed property group Zblin, based in Zurich, boosted operating cash flow by 7% last year, primarily by cutting costs. However it devalued its portfolio by CHF238 million or 12% due to the ongoing financial crisis, which resulted in a net loss for the year of CHF202 million.

The loss was equivalent to CHF3.05 per fully diluted share, compared with a net gain of CHF 44 million, or CHF 0.62 in the previous fiscal year. As a result, its net asset value per share fell to CHF6.57 in the year to end March from CHF10.53 12 months earlier. NAV in accordance with EPRA standards was CHF7.38 per share, and the fully-diluted equity ratio was 30.2% calculated on the same basis.

Zblin invests in energy efficient office properties in its core markets of Switzerland, France and Germany, where it concentrates on a few selected cities. It said rental income over the fiscal year fell by CHF4 million to CHF123 million solely due to the sale of 12 properties, in line with its revised strategy, on which the company realized a net gain of CHF4 million. Zblin said it continues to be in full compliance with all debt covenants, but added that the board will propose to the annual meeting that no dividend be paid for the year.