Very successful first half-year for Mobimo
- Rise in profit to CHF 89.8 million (HY: CHF 35.8 million)
- Marked 74.9% rise in EBIT to CHF 105.2 million (HY 2015: CHF 60.2 million)
- Increase in proﬁt on the sale of trading properties and development services to CHF 17.0 million (HY 2015: CHF 1.3 million)
- 7.9% increase in rental income to CHF 56.8 million (HY 2015: CHF 52.6 million)
Lucerne, 4. August 2016 - In the first half of 2016, Mobimo achieved a significant increase in profit from trading properties and development services and further growth in rental income. The demand in the transaction market was also taken advantage of with the sale of two investment properties. The positive gains from revaluation likewise contributed to the excellent half-year result.
In the first half of 2016, Mobimo generated a profit of CHF 89.8 million including revaluation in a more stable economic environment than expected. Profit attributable to shareholders excluding revaluation totalled CHF 74.2 million. Proﬁt on the sale of trading properties and development services, the further growth in rental income and the sale of two investment properties at attractive prices in particular resulted in the company recording the best half-year result since its founding. Furthermore, Mobimo posted positive gains from revaluation and a non-recurring deferred tax item. Earnings per share including revaluation stood at CHF 14.39 (CHF 11.93 excluding revaluation). As a result, the foundations have already been put in place in the first half of the year to pay out a dividend at the same level as the previous year (CHF 10.00).
Rising income from rental properties and the integration of FM Service & Dienstleistungs AG
Income from rental properties rose by 7.9% to CHF 56.8 million (HY 2015: CHF 52.6), whereby the composition of revenue was only partially comparable with the prior-year period. Mobimo sold investment properties with a carrying amount of some CHF 230 million in the last twelve months, bought the portfolio of Dual Real Estate Investment SA (market value of CHF 241.7 million as at
31 December 2015) in Geneva at the end of 2015 and handed over the newbuild Letzihof in Zurich with 72 apartments to tenants in spring 2016. The cost/income ratio arising from direct expenses for rented properties was 15% and higher than the prior year's level (HY 2015: 11%), which resulted in a 3.5% rise in net rental income to CHF 48.3 million (HY 2015: CHF 46.6 million). As at 30 June 2016, the vacancy rate was 4.9%, thus remaining at a low level (31 December 2015: 4.7%). One of the measures aimed at ensuring a high level of tenant satisfaction in the long term is the complete integration into the Mobimo Group of the FM Service & Dienstleistungs AG joint venture which was launched in 2014. FM Service & Dienstleistungs AG provides mainly facility management services for Mobimo's own properties and their tenants.
Rise in profit from trading properties and development services and the expansion of Investments for Third Parties
The condominiums conveyed with an impact on profit or loss in the first half of the year mostly stem from the Am Meggerwald project in Lucerne. Income from trading properties and development services came to CHF 59.7 million (HY 2015: CHF 17.7 million). As a result, profit from trading properties and development services rose significantly to CHF 17.0 million (HY 2015: CHF 1.3 million). The sale of a plot of land on the Mattenhof site was completed under Investments for Third Parties, and the office building for 3M EMEA in Langenthal was handed over after the reporting date, after having been under development and construction for more than three years. With its acquisition of a two third's interest in BSS&M Real Estate AG in Zurich with effect from 1 July 2016, Mobimo is further expanding its development activities for third parties.
Transaction market remaining attractive and net income from revaluation
Ultra-low interest rates continued to give rise to high demand by institutional investors, particularly for residential properties. Mobimo was not active as a purchaser in this transaction environment in the first half of 2016, preferring to use this as an opportunity to dispose of two investment properties. The sales generated proceeds of CHF 153.2 million (HY 2015: CHF 76.8 million) and net income of
CHF 33.9 million (HY 2015: CHF 15.8 million). Mobimo's business model enabled it to compensate for these disposals with reinvestments in developments from its own pipeline. Properties with a volume of CHF 340 million are currently under construction, while projects worth around CHF 400 million are being planned. As a result of market conditions, the average discount rate for revaluations as at 30 June 2016 declined to 4.04% (31 December 2015: 4.08%), which once again had a particularly positive impact on residential property valuations. The revaluation of investment properties and of investment properties under construction resulted in net income of CHF 20.9 million (HY 2015: CHF 9.7 million).
Brisk construction activity and good marketing successes
The Mobimo Group currently has major construction sites in Zurich, Kriens and Aarau. In late summer 2016, the foundation stone will be laid for the Labitzke site, which will feature 277 rental apartments as well as commercial and retail space, while the first ground will be broken on the Mattenhof in Kriens for the development of an urban district that is to be subject to mixed usage. With Swisscom as anchor tenant, the letting rate was in excess of 60% before construction started. Good progress has been made on the completion of the 92 condominiums in Aarau's Aeschbach district. 50% of the attractive city apartments that will be ready for letting in 2017 have already been sold. Construction work has also started on the 185 rental apartments that are earmarked for completion in 2018. Mobimo started on the construction of Les Garages in the southern part of Lausanne's Flon district, which is to feature attractive commercial space.
The economic environment proved to be better than expected given the strength of the Swiss franc. The real estate market remained attractive, which could be largely attributable to extraordinarily low interest rates. The company expects demand for residential property to remain stable, particularly in the urban centres. Office and sales space in prime locations and in high-quality properties continue to be in demand, although a measure of restraint has been evident among market participants in terms of new rentals and re-lettings. In this market environment, Mobimo is well positioned with an attractive portfolio and a well-filled development pipeline. The company's flexible business model enables it to make targeted use of opportunities as they arise. The Board of Directors and Executive Board continue to assess the outlook for the Group's future as being positive.
Detailed reporting: You can find the Half-Year report at www.mobimo.ch.
Telephone conference (in German) for analysts and media representatives today at 10.00 a.m.: Christoph Caviezel (CEO) and Manuel Itten (CFO) will present the results and will be available to answer any questions.
Dial-in number: +41 44 580 72 18 | Conference-ID: 5741647
Access to PowerPoint presentation: http://mobimo040816-live.audio-webcast.com
Telephone conference (in English) for analysts and media representatives today at 2.00 p.m.: Manuel Itten (CFO) will present the results and will be available to answer any questions.
Dial-in number: +41 44 580 72 15 | Conference-ID: 4229652
Access to PowerPoint presentation: www.audio-webcast.com
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 2.5 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 approximately CHF 0.7 billion (as at 30 June 2016).