Most successful year in the history of Mobimo
- Substantial rise in profit from CHF 63.2 million (2014) to CHF 105.0 million
- Marked 74.6 % rise in EBIT to CHF 170.4 million (prior year: CHF 97.6 million)
- Increase in rental income to CHF 107.8 million (prior year: CHF 105.1 million)
- Acquisition of Dual Real Estate Investment SA and expansion of presence in Western Switzerland
- Increase in dividend to CHF 10.00 per share (prior year: CHF 9.50)
Lucerne, 11 February 2016 - With profit of CHF 105.0 million, Mobimo can look back on 2015 as its most successful year to date. The main reasons for the company's pleasing performance are the increase in net rental income, net income from revaluation and excellent net income generated from the sale of investment properties. Mobimo is maintaining its attractive distribution policy by increasing its dividend to CHF 10.00.
2015 was the most successful year in the history of Mobimo. With profit including revaluation of CHF 105.0 million, and profit excluding revaluation of CHF 78.6, the company has set a new record. All business activities are progressing well. Income from rental properties grew by 2.6 % to CHF 107.8 million (prior year: CHF 105.1 million) with net rental income rising 7.4 % to CHF 94.1 million (prior year: CHF 87.6 million). This is thanks to the increase in income, the lower cost/income ratio arising from direct expenses for rented properties, which amounted to 13 % (prior year: 17 %), and lower vacancy rates. As at 31 December 2015, the vacancy rate was 4.7 % (prior year: 5.4 %) and consequently below the prior year's level.
Realising projects on schedule and expanding the pipeline
In the first half of 2015, two residential complexes - Petit Mont-Riond in Lausanne and Sonnenhof in Regensdorf (Zurich) - with a total of 194 apartments were handed over to tenants. The development of 72 rental apartments in Letzihof in Zurich is also close to completion. Construction is under way on around 280 rental apartments in Labitzke-Areal, Zurich. 92 condominiums are being built in the new Aeschbach district in Aarau, where just under 200 additional rental apartments, business and restaurants will create a new, lively urban district. With the acquisition of Dual Real Estate Investment SA, 25 residential and 2 commercial investment properties with development potential were added to the portfolio. Furthermore, the purchase of an approximately 25,000-m² site in Allaman on Lake Geneva also opens up new development opportunities.
Trading properties and investments for third parties well on course
The trading property business is performing particularly well in the mid-price segment, although this business is significantly less important to Mobimo than before. In the year under review, there were only a few project-related transfers of condominiums recognised in net income. This generated income of CHF 5.5 million, which was significantly below the previous year's level (CHF 24.9 million). Property sales progressed soundly, with projects in Regensdorf and Aarau - totalling 137 condominiums - enjoying a high level of demand, in particular. The increasingly important Investments for Third Parties area carried out work on a number of promising projects in 2015, which will generate income in 2016.
Attractive transaction market and net income from revaluation
Demand in the transaction market was used to sell a number of investment properties, realising considerable gains. The sales generated proceeds of CHF 236.8 million (prior year: CHF 69.0 million) and net income of CHF 63.8 million (prior year: CHF 4.9 million). The average discount rate for revaluation as at 31 December 2015 declined as a result of market conditions to 4.08 % (prior year: 4.39 %), which had a particularly positive impact on residential property valuations. The revaluation of investment properties and of investment properties under construction resulted in net income from revaluation of CHF 34.7 million (prior year: CHF 3.8 million).
Finances remain solid
The Group continues to have solid foundations. The equity ratio as at the end of the year was 42.8 % (prior year: 44.2%) financing costs at 2.46 % are once again below the already low rate of the previous year (2.51 %). Closing 2015 at CHF 222.70, and adjusted for the payment of a dividend of CHF 9.50, the Mobimo share price gained 16.6 % - vastly outperforming the SPI and SXI Swiss Real Estate Index.
The discontinuation of the CHF/EUR exchange rate floor was one of the dominant themes of 2015. Immigration, internal migration towards urban centres and demographic developments continue to influence the real estate sector. Demand for rental apartments and condominiums in urban areas continues unabated. In the area of commercial and industrial rental income, a measure of restraint is evident among market participants when taking up new rentals and re-lettings. Although the Swiss retail sector is being hit by a huge decline in sales, some distinctions have to be made in the market: Mobimo has in the Flon district in Lausanne, for example, some 90,000m² of rentable floor space at its disposal, which, thanks to an attractive mix of retail, residential and gastronomy use, is completely let. Interest in condominium ownership remains intact, particularly in properties in the mid-price segment. On the transaction market, institutional investors are intensively seeking investment properties. The prices generated, particularly in the residential property area, were substantially higher than current appraisers' valuations. Demand for services in Investments for Third Parties is correspondingly sound. In this market environment, Mobimo will continue to explore the sale of selected properties it has developed itself wherever there is an opportunity of reinvesting the proceeds in new higher-yielding projects.
Mobimo's flexible business model enables it to take advantage of the opportunities arising from the challenging market environment. Due to the persistently high demand for investment properties, the company will continue to review whether to sell selected properties in the future. At the same time, Mobimo will harness opportunities, such as the acquisition of Dual Real Estate Investment SA. The Board of Directors and Executive Board continue to assess the outlook for the Group's future as being positive. They strive to meet the expectations of shareholders over the short, medium and long term. This includes the continuation of the attractive and stable dividend policy.
Stronger Board of Directors and Executive Board
At the General Meeting at the end of March 2015, Peter Barandun, CEO and Chairman of the Board of Directors of Electrolux AG, was elected as the successor on the Board of Directors to Paul Rambert, who has now reached retirement age. On 1 April 2015, Marc Pointet was appointed to the Executive Board in his role as Head of Mobimo Suisse Romande. His appointment to the Executive Board underlines the importance of western Switzerland to the Mobimo Group.
Proposals to the General Meeting
The Board of Directors will propose to the General Meeting the re-election of the current Board. The dividend will be increased to CHF 10.00, which will be paid out from the company's capital contribution reserves as usual and is therefore free of withholding tax for private individuals. Based on the year-end closing price, this offers an attractive return of 4.5 % in the current zero-interest environment.
You can find the report on the 2015 financial year at www.mobimo.ch.
A media and analysts' conference will take place today at 10.00 a.m. Christoph Caviezel (CEO) and Manuel Itten (CFO) will present the 2015 financial results. The webcast of the conference is also available on our website at: www.mobimo.ch.
A telephone conference in English for analysts and media representatives will take place today at 2.00 p.m. Following the presentation of the 2015 financial results, Manuel Itten (CFO) will be available to answer any questions. Registration is not necessary.
Dial-in number: +4143 547 80 01 / Conference-ID: 8354135
The accompanying PowerPoint presentation can be viewed on the homepage at www.mobimo.ch
If you have any questions, please contact:
Mobimo Holding AG
Dr. Christoph Caviezel, CEO
Manuel Itten, CFO
+41 44 397 11 86
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 offering steady returns and development properties with significant appreciation potential. Investments are made in promising locations, mainly in the economic areas of Zurich and Lausanne / Geneva, together with those of Basel, Lucerne / Zug, Aarau and St. Gallen. With a property portfolio that has an overall value of around CHF 2.6 billion, Mobimo is one of the leading real estate companies in Switzerland. The pipeline includes development properties for the company's own portfolio with an investment volume of CHF 0.7 billion (as at 31 December 2015).