Mobimo: Strong business momentum in the first half of 2011

Mobimo Holding AG  / Key word(s): Half Year Results

25.08.2011 07:00

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


Strong business momentum in the first half of 2011

* Net profit of CHF 34.5 million or CHF 6.72 per share
* Value of the entire portfolio up 3% to CHF 2,077 million
* Projects and successful operating results have led to revaluation gains
* New projects filling the pipeline 
* Vacancy rate down to low level of 4.4%

Lucerne, 25 August 2011 - In the first half of 2011, Mobimo Holding AG
continued to pursue its systematic growth strategy. Major construction
projects such as the Beau-Séjour residential development and the Genève 7
commercial property in Lausanne were completed, whilst work got under way
on key building projects such as Torfeld Süd in Aarau, the OVA site in
Affoltern am Albis and the 'Am Pfingstweidpark' housing development in
Zurich City West. In addition, attractive new projects were steadily added
to the pipeline. At the same time, the portfolio of investment properties
was trimmed by over CHF 50 million. The completion of the Mobimo Tower and
the handover of the Renaissance Zurich Tower Hotel to its new tenant, SV
Group, are milestones in Mobimo's history.

Pleasing performance in all areas
In terms of the numbers, Mobimo's business performance in the first half of
2011 was as follows. Rental income was practically unchanged against the
prior-year figure at CHF 42.9 million. Positive contributions came from the
improvement in rental income from the existing portfolio, a further fall in
the vacancy rate from 5.1% to a low 4.4% and the addition of new
Mobimo-built investment properties, particularly residential ones. On the
other hand, extensive portfolio optimisation over the last twelve months
(to the tune of around CHF 140 million) reduced total rental income.
Completion of the Beau-Séjour residential development and the mixed-use Rue
de Genève 7 property in Lausanne as well as handover of the Renaissance
Zurich Tower Hotel in the Mobimo Tower from August will give a further
boost to rental income in the second half of the year.

Sales of condominium properties also continued to perform well. In the
period under review, apartments with a value just short of CHF 30 million
were sold. Interest in buying residential property remains buoyant, even if
the banks have become more restrictive in their mortgage lending. Mobimo's
sales success in the first half is not (yet) reflected in the income
statement, as practically no transfers of ownership have taken place.
However, the income expected from these operations will be above average in
the second half, particularly given the completion of the Mobimo Tower
along with other smaller projects.

The total value of the portfolio at the end of the reporting period was CHF
2,077.0 million (end of 2010: CHF 2,011.9 million). This includes
revaluation gains of over CHF 16.6 million due to progress on projects and
optimised utilisation. In addition, the sale of four properties in
Oberglatt, Frenkendorf and Tagelswangen led to profits of CHF 1.1 million.
This means that the major portfolio optimisation initiated two years ago is
almost complete.

A well-stocked project pipeline
Market demand for investment properties remains high, which in some cases
is translating into big price tickets. Mobimo therefore continues to
concentrate on buying properties and sites with scope for development and
expansion, giving it the opportunity to add value. The good reputation we
enjoy on the market as a developer has created increasing opportunities in
recent years, leading to a very well-stocked development pipeline. In June,
construction work began on the Torfeld Süd site in Aarau - the first
project from the development department to be sold directly to an
institutional investor. From 2012 this service will be progressively
expanded, and a new business area has been created to handle it.

Attractive new developments and projects
Work has begun, or is just about to commence, on major construction
projects not only in Aarau but also Lausanne (Pepinières) and Zurich ('Am
Pfingsweidpark'). An attractive new use has been found for the old Grob
factory site in Horgen on Lake Zurich. The old machine rooms at Horgen will
house a vintage car centre with all the accompanying services such as a
catering and events zone. In Zurich Altstetten, Mobimo acquired the old
Labitzke site, on which it plans to build a residential complex with around
300 mid-priced apartments for rent.

Mobimo shares perform positively and become more liquid
Mobimo's solid performance was also rewarded on the capital market. In the
period under review, the share price rose by 14%, including a dividend of
CHF 9.00. With the inclusion of our shares in the EPRA index of leading
European real estate stocks, trading in the stock also saw a further
significant pick-up.

Outlook
The Board of Directors and the Executive Board are confident about the
Group's performance over the rest of the financial year. At the end of the
first half, all the signs are that Mobimo will achieve a full-year result
for 2011 that will enable us to continue our attractive dividend policy.

Detailed reporting
You can find the report on the first half-year 2011 on our website at
Investor Relations / Reporting or on the homepage at www.mobimo.ch.
(Link: http://ir.mobimo.ch/websites/mobimo2011/English/40/reporting.html) 


Telephone conference for analysts and media today at 1.30 p.m.
A telephone conference for analysts and the media will be held today at
1.30 p.m. (in Ger-man). Dr. Christoph Caviezel (CEO) and Manuel Itten (CFO)
will be presenting the half-year results and will be available to answer
questions. Registration is not required.
Telephone no.: +41 22 592 73 12 / conference ID: 4460880
You can view the associated PowerPoint presentation on the homepage at
www.mobimo.ch.

 
For enquiries please contact:
Mobimo Holding AG
Dr. Christoph Caviezel, CEO
Manuel Itten, CFO
+41 44 397 11 86
ir@mobimo.ch
www.mobimo.ch


About Mobimo
Mobimo Holding AG was established in Lucerne in 1999 and has been listed on
the SIX Swiss Ex-change 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 30 June
2011).


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