Mobimo reports good half-year results

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

16.08.2012 06:57

Release of an ad hoc announcement pursuant to Art. 53 KR
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P r e s s   R e l e a s e


Mobimo reports good half-year results

* Interim operating result (EBIT) exceeds CHF 60 million for the first time
* Net profit up 15% to CHF 39.6 million
* A renewed increase in rental income following portfolio adjustments
* Acquisition of the first major investment for a third party
* Attractive expansion of the project pipeline

Lucerne, 16 August 2012 - Mobimo Holding AG continues its dynamic momentum
into 2012. EBIT increased in the period under review by 32% to CHF 60.8
million (2011: CHF 46.2 million) and net profit was up by 15 % to CHF 39.6
million (2011: CHF 34.5 million). Excluding last year's non-recurring tax
effect, profit before revaluations rose by 37% to CHF 22.6 million. Both
net rental income from the growing investment portfolio and trading and
revaluation gains contributed to this pleasing figure. The real estate
portfolio reported a total value of CHF 2,269 million (year-end 2011: CHF
2,171 million) as at 30 June 2012

Market conditions remain good 
Momentum in the Swiss real estate market continued unabated in the first
half of 2012. The stable economy, the persistent inflow of immigrants, the
need for more living space and the growing number of small households are
the main factors driving the continued demand for high-quality living space
in the main business centres. Despite calls for restraint by the Swiss
National Bank and FINMA, mortgage demand shows no signs of flagging. The
low level of interest rates is making condominiums too attractive for many
people when compared to apartment rents. Sales of condominiums in the
highest price ranges have slowed, however, while high rents are only
achievable in the best locations. Market demand for centrally located
office and commercial space remains good, while properties near
Switzerland's borders, in particular in the retail area, are suffering from
the strength of the franc and from people popping over the border to do
their shopping in neighbouring countries.

Scheduled construction work
Mobimo continued to develop according to plan in this environment,
responding where necessary to changes in the market. At the end of the
period under review, a new investment property was very close to completion
- the 'Polygon' office building for Rockwell Automation in Aarau. This now
makes it possible to 'free up' the rest of the site, which is one of the
conditions for the extensive redevelopment of the 'Torfeld Süd' site. The
transfer of ownership of the first apartments in the 'Wilacker' development
in Adliswil began in spring, while the construction of the three
residential buildings with their 250 rental apartments and condominiums on
the 'Am Pfingstweidpark' site at the foot of the Mobimo Tower in Zurich
West is making good progress. Construction has started on the 'Pépinières'
complex in Lausanne-Flon and on the mixed development on the OVA site near
the station in Affoltern am Albis, where a long-term rental contract has
been concluded with the future operator of the site's retirement centre for
the elderly.

Higher income from all areas
Profit from the sale of condominiums (trading properties) rose to CHF 8.3
million (2011: CHF 0.5 million), as ownership was transferred to buyers of
condominiums located in several residential properties (Wilacker Adliswil,
Mobimo Tower). Apartments for
a total value of CHF 71.8 million were sold. While demand in the mid-price
segment remained high, as in the case of 'Am Pfingstweidpark' in Zurich and
'Wilacker' in Adliswil, the sale of the last 20 apartments in the Mobimo
Tower is taking longer than planned, despite sustained high interest. In
addition, Mobimo sold the land it had set aside for the construction of
luxury properties in Erlenbach in the first half of the year and is now
focusing on new developments in the mid-price segment.

Net rental income was up substantially again to CHF 39.8 million (2011: CHF
37.1 million) despite the reduction in the reference interest rate. This is
also a consequence of the extensive portfolio adjustments made in the last
two years, which have substantially raised the quality of the investment
portfolio and rental income. The progress made on the construction of
existing projects, rental contract optimizations and the market-related
reduction in the discount rate also contributed to bring net income from
revaluation to a total of CHF 22.7 million (2011: CHF 16.6 million).

Attractive projects added to the project pipeline
Mobimo is set to continue on its growth path. Properties destined for the
company's own investment portfolio with an investment volume of around CHF
440 million are currently under construction or close to completion. There
are also plans for more projects for the company's own portfolio with an
investment volume of some CHF 560 million.

The period under review saw the addition of a former commercial and office
building with interesting architectural character located on Badenerstrasse
in Zurich Altstetten, which is being converted into an attractive
residential property with more than 40 lofts and studios.

Mobimo's development expertise is held in high regard by the market. The
new 'Investments for Third Parties' business area in operation since 1
January 2012 has already received its first major mandate. Mobimo is to
develop a residential site containing some 250 rental apartments in
Dübendorf together with a third-party investor.

The award of a tender for a development partner by the towns of Biel and
Nidau was a special honour for Mobimo. This project will see 130,000 square
metres of the former Expo 2002 site on the shores of Lake Biel developed
into a new and attractive suburb of the Bernese watchmaking metropolis
under the name 'AGGLOlac'.

 
Solid financing and a high equity ratio
Mobimo's balance sheet is extremely solid and our business is highly
predictable. The average residual maturity of our financial liabilities is
9.3 years and our average interest costs are a modest 3.1%. Our equity
amounted to CHF 1159.1 million as at mid-year, corresponding to a solid 47%
equity ratio. This provides us with a high degree of flexibility in the
planning and realisation of our projects.

Positive share price performance
The Mobimo share closed at CHF 219.10 on 30 June 2012, which was 5.3% above
its closing price on 31 December 2011. Taking the dividend of CHF 9 per
share into account that was paid out on 25 April 2012, this equates to a
total performance of 9.7% in the first half of 2012.

Outlook for 2012
We are optimistic for the remainder of the current financial year. From the
current perspective, the continuation of our usual attractive dividend
policy appears to be feasible. The main focus of our activities remains
likewise unchanged: realising numerous construction projects, expanding our
development business, space marketing, selling condominiums and the
targeted optimisation of our project pipeline. In addition, our director
Brian Fischer will switch from the Audit & Risk Committee to the Real
Estate Committee in August 2012.


Detailed reporting
You can find the report on the first half-year 2012 on our website
www.mobimo.ch under
http://ir.mobimo.ch/websites/mobimo2011/English/4010/annual-reports.html
Investor Relations / Reporting or on the start page.


Telephone conference for analysts and media today at 10.00 a.m.
Mobimo Holding AG invites you to a conference call in German on the results
for the first half-year 2012. Dr. Christoph Caviezel (CEO) and Manuel Itten
(CFO) will present the results and answer your questions. Registration is
not required.

Date:   16 August 2012
Time:   10:00 a.m. (CET)
Telephone no.: +41 (0)22 592 73 12
or toll-free   0800 000 732
Conference ID 4558981

You can view the PowerPoint presentation on our homepage at www.mobimo.ch.
We also inform you that at 2 p.m. on the same day there will be a
conference call in English. The dial-in number is the same; conference ID:
4558984.

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 1999 in Lucerne 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 Basel, Lucerne/Zug, Aarau and St. Gallen
economic regions. With a real estate portfolio that has an overall value of
just under CHF 2.3 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 2012).


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