Mobimo increases profit in 2010 to CHF 66.0 million

Mobimo Holding AG  / Key word(s): Final Results

08.03.2011 08:43

Release of an ad hoc announcement pursuant to Art. 72 KR
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M e d i a  R e l e a s e

Mobimo increases profit in 2010 to CHF 66.0 million 

  - At CHF 102.2 million operating profit (EBIT) exceeds the CHF 100
    million threshold for the first time

  - Portfolio value rises to over CHF 2 billion

  - Successful development activities and well stocked project pipeline lay
    the foundation for further profitable growth

  - Vacancy rate reduced to 5.1%

  - Further distribution of CHF 9.00 per share proposed

Lucerne, 8 March 2011 - Mobimo Holding AG ('Mobimo') posted another solid
result for the 2010 financial year. Operating profit (EBIT) rose by 4% to
CHF 102.2 million (2009: CHF 98.5 million) and therefore exceeded the CHF
100 million threshold for the first time ever. Net profit increased by 5%
to CHF 66.0 million (2009: CHF 62.6 million). Income from rental activities
rose by 27% to CHF 90.9 million (2009: CHF 71.8 million). Earnings per
share of CHF 13.01 (2009: CHF 14.09) or CHF 8.70 before revaluation (2009:
CHF 12.51) mean that a further distribution to shareholders of CHF 9.00 per
share is possible. At the end of 2010, Mobimo's property portfolio had a
total value of CHF 2.0 billion, approximately 7% more than in the prior
year (CHF 1.88 billion).

Portfolio quality and residential component increasing as planned

In 2010 Mobimo continued to rigorously pursue its strategy of focusing on
more stable rental incomes from the investment business. Net rental income
increased 25% to CHF 79.2 million (2009: CHF 63.1 million), with most of
this significant rise attributable to the first-time full consolidation of
LO Holding. The vacancy rate for investment properties fell from 6.7% to a
low 5.1%. In contrast, income from the sale of condominiums (trading
property) contracted as expected following the sale of a record number of
units in 2009. Fifty-seven apartments were sold and ownership transferred
in 2010, generating revenues of CHF 79.1 million. Related profit amounted
to CHF 8.4 million (2009: CHF 25.2 million).

Mobimo's impressive development skills resulted in revaluation gains of CHF
16 million in the investment properties under construction category in the
2010 financial year. The increase in rental income led to a further
increase of CHF 7.5 million. The fact that the discount rate fell slightly
as a result of market conditions contributed CHF 5.6 million to the
revaluation gain.

Eleven properties were sold as part of portfolio optimisation in 2010. The
CHF 116.7 million generated through these disposals produced a net gain of
CHF 5.4 million.

Attractive development projects make further growth possible

As at the beginning of 2011 properties to the value of CHF 500 million were
under construction, of which around CHF 260 million are intended for the
investment portfolio and CHF 240 million for condominium sales. In addition
Mobimo successfully created the basis for further significant organic
growth and secured a comprehensive pipeline of new projects. Among the
transactions successfully concluded in 2010 was the acquisition of two
further attractive sites in Lausanne (Post Office site near the railway
station) and Zurich-West (ABC site directly adjoining the Mobimo Tower).
With these acquisitions and the substantial development projects in
Lausanne-Flon and Torfeld in Aarau, Mobimo has a well stocked project
pipeline with a total investment volume of over CHF 1 billion up to 2015
(CHF 720 million investment portfolio; CHF 330 million condominiums).

Solid financial base

With an equity ratio of 45% and shareholders' equity of CHF 971.3 million,
Mobimo's capital base remains solid. With a view to funding its many
projects and the related expansion of its property portfolio, in June 2010
the company successfully placed a convertible bond issue, maturing in 2014,
worth CHF 175 million with a coupon of 2.125% and a conversion price of CHF
210.37.

The average rate of interest on the financial liabilities fell to 2.9%
(2009: 3.1%), while residual maturity remained unchanged at 5.1 years
(including convertible bond).

Profitable share

The Mobimo share ended the year at CHF 199.70 at close of trading on 31
December 2010, which represents a premium of 5% to the NAV. Including the
nominal value repayment of CHF 9.00, the Mobimo share achieved a total
performance of 19% in 2010.

Dividend proposal

The Board of Directors will propose to the General Meeting of 6 April 2011
a further distribution of CHF 9.00 per share. Based on Mobimo's year-end
share price as at
31 December 2010, this equates to a dividend yield of 4.5%. On the basis of
the corporate tax reform which took effect on 1 January 2011, the amount
distributed will be paid out without any deduction of withholding tax and
tax-free for private shareholders.

Good but challenging market environment

The Swiss real estate market remains robust and is characterised by strong
demand for accessible and attractive office and commercial space as well as
premium residential property in good locations. The low level of interest
rates and favourable consumer sentiment mean that the desire to own
residential property is undiminished. Nonetheless, the office and
commercial lettings and re-lettings market remains challenging.

Outlook

At Mobimo, we are confident about the 2011 financial year and are expecting
a significant rise in rental income due to the completion of large
residential projects such as Beau-Séjour in Lausanne and the apartment
complex in Horgen, which has recently been occupied, as well as from the
opening of the hotel in the Mobimo Tower. Secondly revenues from the
property trading business will increase sharply in the second half of the
year, primarily due to the planned transfer of ownership of the apartments
in the Mobimo Tower, of which more than half have been sold. The main focus
of our activities in 2011 will be the realisation of numerous construction
projects, space marketing, condominium sales and the ongoing development of
our well stocked project pipeline.

The 2010 Annual Report can be found at:
http://ir.mobimo.ch/websites/mobimo2011/English/4010/annual-reports.html


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Information and Explaination of the Issuer to this News:

About Mobimo
Mobimo Holding AG was established in Lucerne in 1999 and has been listed on
the SIX Swiss Exchange since 2005. The Mobimo Group has an attractive
portfolio mix of investment properties providing stable income and
development properties offering extensive value enhancement potential.
Investments are targeted mainly in the promising locations of Zurich and
Lausanne/Geneva and in the economic regions of Basel, Lucerne/Zug, Aarau
and St. Gall. With a property portfolio that has an overall value of over
CHF 2.0 billion, Mobimo is one of the leading real estate companies in
Switzerland. The portfolio contains development properties with an
investment volume of more than CHF 1 billion up to 2015 (as at 31 December
2010).


For enquiries please contact:
Mobimo Holding AG
Dr. Christoph Caviezel, CEO
Manuel Itten, CFO
+41 44 397 11 59



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