Annual Report 2011-2012

19. Mortgages

Overview mortgages as of 31.3.2012

In CHF thousand Switzerland France Germany Netherlands Total %
             
Term structure            
1 to 12 months 193 320 272 609 87 136 70 828 623 893 81%
1 to 3 years 0 0 150 037 0 150 037 19%
3 to 5 years 0 0 0 0 0 0%
More than 5 years 0 0 0 0 0 0%
Total 193 320 272 609 237 173 70 828 773 930 100%
of which:            
– Non-current mortgages 56 250 272 609 188 774 38 964 556 597  
– Current mortgages 96 823 0 1 857 31 864 130 544  
– Mortgages held for sale 40 247 0 46 542 0 86 789  
             
Term structure, including swaps            
1 to 12 months 0 89 525 0 22 648 112 173 14%
1 to 3 years 33 320 126 473 237 173 48 180 445 146 58%
3 to 5 years 160 000 56 611 0 0 216 611 28%
More than 5 years 0 0 0 0 0 0%
Total 193 320 272 609 237 173 70 828 773 930 100%
Average interest rates 3.05% 4.53% 5.27% 5.50% 4.48%  
             
Contractual maturity dates of mortgages            
1 to 12 months 136 070 0 0 30 392 166 462 23%
1 to 3 years 57 250 251 041 206 288 20 473 535 052 69%
3 to 5 years 0 21 568 30 885 19 963 72 416 8%
More than 5 years 0 0 0 0 0 0%
Total 193 320 272 609 237 173 70 828 773 930 100%
             
Fair value of mortgages            
Fixed rate mortgages 0 0 155 658 0 155 658 19%
Variable rate mortgages 194 711 290 274 91 401 74 561 650 947 81%
Total 194 711 290 274 247 059 74 561 806 605 100%

Overview mortgages as of 31.3.2011

In CHF thousand Switzerland France Germany Netherlands Total %
             
Term structure            
1 to 12 months 194 120 295 059 107 286 124 134 720 598 82%
1 to 3 years 0 0 0 0 0 0%
3 to 5 years 0 0 161 604 0 161 604 18%
More than 5 years 0 0 0 0 0 0%
Total 194 120 295 059 268 890 124 134 882 202 100%
of which:            
– Non-current mortgages         793 088  
– Current mortgages         70 192  
– Mortgages held for sale         18 922  
             
Term structure, including swaps            
1 to 12 months 97 350 0 0 72 114 169 464 19%
1 to 3 years 0 97 383 36 470 0 133 853 15%
3 to 5 years 96 770 174 267 232 420 52 020 555 476 63%
More than 5 years 0 23 409 0 0 23 409 3%
Total 194 120 295 059 268 890 124 134 882 202 100%
Average interest rates 2.87% 4.55% 5.32% 5.04% 4.45%  
             
Contractual maturity dates of mortgages            
1 to 12 months 0 0 0 74 168 74 168 8%
1 to 3 years 194 120 50 841 0 49 966 294 926 33%
3 to 5 years 0 220 809 268 890 0 489 699 56%
More than 5 years 0 23 409 0 0 23 409 3%
Total 194 120 295 059 268 890 124 134 882 202 100%
             
Fair value of mortgages            
Fixed rate mortgages 0 0 167 421 32 040 199 461 22%
Variable rate mortgages 196 602 305 899 112 744 94 347 709 592 78%
Total 196 602 305 899 280 165 126 387 909 053 100%

In the current financial year, the Company rolled over mortgage contracts to the value of CHF 41.1 million. The mortgage portfolio of the Züblin Group includes both variable rate and fixed rate loans. As of 31 March 2012, loans with fixed interest rates amounted to CHF 150.5 million (previous year 194.2 million). Capitalized closing fees of CHF 3.0 million (previous year CHF 2.5 million) are included in the figure for mortgages.

Some of the loan agreements and mortgages include financial covenants which specify, among other things, adherence to certain financial indicators (total debt/EBITDA, level of interest cover, loan-to-value ratio, and equity ratio). The financial covenants vary by country and loan contract, and are presented in summarized form in the table below:

  Switzerland France Germany Netherlands
         
31.3.2012        
Debt/EBITDA 13.5 13.75
Interest coverage ratio 1.5 1.15 – 1.5 1.4 > 1.5 – 2.0
Loan to value 70% 70% – 75% 70% 60% – 75%
Equity % 30% 25%

The Company closely monitors these covenants every quarter and performs sensitivity analyses to changes in earnings, interest rate movements and property valuations. The breach of a covenant may have a variety of consequences depending upon the individual contract. Generally, in the first instance this would include an increase in the margin or accelerated amortization. If so, there is typically a repair period. If after this period, the breach is not repaired, the bank will typically request an accelerated amortization of the loan or a partial repayment of the loan. As of the balance sheet date, the Company was in compliance with all of its covenants.

The following table summarizes the value of investment properties pledged as security for mortgages:

in CHF thousand 31.3.2012 31.3.2011
     
Book value of assets pledged (investment properties) 835 783 944 471
Credit drawn (debt secured) 580 610 688 083

As part of the refinancing of the loan portfolio in Switzerland, all mortgage notes charged against Swiss properties were lodged with UBS as the agent. If the conditions agreed in the consortium loan agreement (trigger covenants) are no longer met, the assigned securities to the value of CHF 136.8 million will be transferred to the lenders.

Furthermore, future rental fee receivables for properties, insurance policies for properties, and shares in subsidiary companies have been pledged as security over and above the mortgage liens.

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Annual Report 2011-2012

Annual Report 2011-2012 (8.16 MB)