Very successful business performance in 2016
- Profit up a substantial 51.9% year-on-year from CHF 105.0 million to CHF 159.4 million.
- Profit attributable to the shareholders excluding revaluation up by 26.5% to CHF 99.4 million (prior year: CHF 78.6 million).
- EBIT up by 17.5% to CHF 200.3 million (prior year: CHF 170.4 million).
- Profit from the sale of trading properties and development services up by 330.5% to CHF 23.9 million (prior year: CHF 5.5 million).
- Rental income up by 6.3% to CHF 114.7 million (prior year: CHF 107.8 million).
Lucerne, 10 February 2017 - Mobimo closes 2016 with outstanding results. It achieved a significant increase in profit from trading properties and development services and further growth in rental income. It also reported an extraordinarily high profit on revaluations driven predominantly by the market and on the disposal of three investment properties.
In 2016 Mobimo exceeded its record results of the previous year by 51,9% with profit of CHF 159.4 million. This included a gain totalling CHF 34.9 million, generated on the disposal of three investment properties (prior year: two investment properties,
CHF 63.8 million). Excluding revaluations driven predominantly by the market in 2016, profit attributable to shareholders totalled CHF 99.4 million (prior year: CHF 78.6 million), which corresponds to a 26.5% increase. Mobimo also posted a positive non-recurring tax item from its calculation of deferred tax. Its pleasing operating performance allows the company to propose once again to the General Meeting the distribution of a dividend of CHF 10.00 per share.
Rise in rental income with low vacancy rate
Despite selective portfolio disposals, rental income increased once again by 6.3% to
CHF 114.7 million. The reporting period and that of the prior year are only partially comparable, as the portfolio underwent major changes in 2015 and 2016: these involved the disposals of the investment properties already mentioned and the acquisition of the portfolio of Dual Real Estate Investment SA in Geneva at the end of 2015. This acquisition increased the number of rental apartments by some 700, to which were added 266 residential units from Mobimo's own project development in 2015 and 2016. One example is the handover of the newbuild Letzihof in Zurich to tenants at the beginning of 2016. The share of rental income from residential usage now amounts to 28% (prior year: 29%). Net rental income totalled CHF 96.2 million (prior year: CHF 94.1 million), which corresponds to an increase of 2.3%. As at 31 December 2016, the vacancy rate remained low and was practically unchanged at 4.8% (31 December 2015: 4.7%). One of the measures aimed at maintaining a high level of tenant satisfaction and a low vacancy rate in the long term is the complete integration of the FM Service & Dienstleistungs AG joint venture, launched in 2014, into the Mobimo Group.The headcount rose to 135.7 full-time equivalents on the reporting date in response to the company's integration.
Strong demand for services of Development for Third Parties
Income from trading properties and development services totalled CHF 151.8 million in 2016 (prior year: CHF 86.2 million). This resulted in a significant increase in profit from trading and development services to CHF 23.9 million. The largest number of condominium ownership transfers recognised in net income in 2016 related to the Am Meggerwald development in Lucerne. Under Development for Third Parties, a project was sold on the Mattenhof site in Kriens in 2016 and the 3M EMEA office building in Langenthal was handed over ready for occupancy in July 2016. With its acquisition of a two-thirds holding in BSS&M Real Estate AG in Zurich, Mobimo is further expanding its development activities for third parties, which were very much in high demand.
Reinvestment of the proceeds from selected disposals
Institutional investor demand for residential property remains high in light of ultra-low interest rates. Attractive office and commercial property is also in increasingly high demand. Mobimo made no additions to its portfolio in this transaction environment, instead selling
individual investment properties. The proceeds from the disposals totalled
CHF 158.5 million (prior year: CHF 236.8 million) and profit CHF 34.9 million (prior year: CHF 63.8 million). Mobimo will use the cash flows from the disposals to reinvest in its own development pipeline at substantially higher returns. Investment volume of projects under construction totalled CHF 560 million, and that of projects being planned CHF 470 million.
Driven mainly by the market, the average discount rate for revaluations fell to 3.75% as at 31 December 2016 (prior year: 4.08%). This has a positive impact on the valuations of residential properties and construction projects in particular. The revaluation of investment properties and of investment properties under construction resulted in net income from revaluation of CHF 80.7 million (prior year: CHF 34.7 million).
Lots of activity under way in Lausanne's Flon district
In Lausanne, Mobimo started work on the construction of Les Garages, a project which is to feature attractive commercial space in the southern part of the Flon district. Construction work on a new hotel will start in 2017: hotel operator SV Hotel is opening the first Moxy Hotel in Switzerland with 110 beds in 2019. Moxy is a successful brand of US hotel group Marriott. Construction is currently in progress on behalf of Mobimo mainly in Zurich, Kriens and Aarau: ten buildings are being constructed on the Labitzke site in Zurich featuring a total of 277 rental apartments and commercial and retail space. Mobimo is realising a mixed-use urban district at Mattenhof in Kriens, which marks the first step in the further development of the Lucerne South region. 56 of the 92 condominiums have already been sold in Aarau's Aeschbach district. The buyers will be moving into their new homes from the beginning of 2017. Construction work is also in progress on the 167 rental apartments that are earmarked for completion in 2018.
The real estate market remains attractive given constantly low interest rates, but also thanks to Switzerland's attractiveness in an international context. Demand remains high for residential and working space in urban centres and in high-value properties. With its broadly diversified portfolio, well-filled development pipeline and its nearly twenty years of experience, Mobimo is well prepared for the future. Its flexible business model enables it to seize targeted opportunities and react early to market changes. The Board of Directors and the Executive Board therefore expect to continue to post good operating results in future that will enable the company to make attractive dividend distributions to shareholders.
You can find the report on the 2016 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 2016 financial results. The webcast of the conference is also available on our website at http://mobimo100217-live.audio-webcast.com
A telephone conference in English for analysts and media representatives will take place today at 2.00 p.m.: Following the presentation of the 2016 financial results, Christoph Caviezel (CEO) and Manuel Itten (CFO) will be available to answer any questions. Registration is not necessary.
Dial-in number: +41 44 580 10 22 / Conference-ID: 8616561
The accompanying Powerpoint presentation can be viewed at www.audio-webcast.com (password: mobimo0217en)
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. With a real estate portfolio with a total value of over
CHF 2.7 billion, the Group is one of the leading real estate companies in Switzerland. The portfolio comprises investment and development properties in first-class locations in German-speaking Switzerland and French-speaking Switzerland. Mobimo generates stable rental income with its residential and commercial properties, while its development expertise and full pipeline allows it to create value enhancement potential in its own portfolio and for third parties. The investment volume of development properties for the company's own portfolio totals CHF 0.8 billion. Mobimo has a stable business model, pursues a sustainable strategy and provides its shareholders with an attractive return.