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- Mobimo Holding AG: Mobimo announces a very good result for the 2009 financial year
March 9, 2010
Mobimo Holding AG: Mobimo announces a very good result for the 2009 financial year
Mobimo Holding AG / Final Results 09.03.2010 06:51 Dissemination of a Adhoc News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- M e d i a R e l e a s e Mobimo announces a very good result for the 2009 financial year * Net profit of CHF 62,6 million or CHF 14.09 per share * Overall portfolio increases to CHF 1,9 billion * Strategic expansion into French-speaking Switzerland successful * Return on equity of 8% and solid equity ratio of 48% * A further distribution of CHF 9.00 per share proposed Lucerne, 9 March 2010 - 2009 was a successful and eventful year for Mobimo Holding AG (Mobimo). EBIT was up 26% at CHF 98,5 million (prior year CHF 77,9 million). Before revaluation effects it increased by 29% to CHF 89,1 million (prior year CHF 69,0 million). The company's net profit increased by 39% to CHF 62,6 million (prior year CHF 45,0 million). The profit figure includes income of CHF 9,3 million from the revaluation of properties (prior year CHF 9,0 million) and negative goodwill of CHF 15,6 million. As a result, earnings per share rose by 36% to CHF 14.09 (prior year CHF 10.37), or by 42% to CHF 12.51 (prior year CHF 8.82) before revaluation effects. This led to a return on equity of 8,0%, or 7,1% before revaluation effects. By the end of the 2009 financial year the overall value of the real estate portfolio had increased by 26% to CHF 1,9 billion (prior year CHF 1,5 billion). Mobimo implemented the strategic guidelines that were adjusted in the previous year and achieved a key objective through the merger with LO Holding Lausanne-Ouchy SA (LO). This transaction enabled the company to enter the promising Lausanne/Geneva economic region and significantly diversify its portfolio, as LO's portfolio, which has a value of CHF 393 million, comprises premium properties in the centre of Lausanne. Improved results in investment and promotion business despite the challenging economic environment Rental income increased by 9% overall to CHF 71,8 million (prior year CHF 65,6 million), while expenses for rented properties remained unchanged at 12%. Of the additional rental income generated, CHF 3,8 million can be attributed to an inflow from the LO investment portfolio. Net income from rental activities increased by 9% to CHF 63,1 million (prior year CHF 57,9 million). As part of the measures to optimise the portfolio, six investment properties were sold at a profit in the period under review, generating overall proceeds of CHF 40,1 million. The rental market for office and commercial space suffered as expected as a result of the difficult economic climate. Although rental income increased in 2009, the vacancy rate rose slightly to 6,7% (prior year 6,1%). Finding new tenants for the properties being vacated is likely to remain difficult in the current financial year. In the area of promotions, favourable mortgage interest rates and substantial demand for tangible assets, coupled with the fact that consumers remained confident, resulted in brisk demand for residential property. The attractive condominium offering in the Zurich area allowed Mobimo to derive optimum benefits from this market situation and sell a total of 160 units, an absolute record for the company. The proceeds amounted to CHF 182,3 million (prior year CHF 126,8 million), while the income arising from these sales rose by 13% to CHF 25,2 million (prior year CHF 22,4 million). Stable development of property values and one-time effect of the LO acquisition Positive revaluation income of CHF 8,0 million was generated from properties under construction developed for the company's own portfolio holdings. The existing portfolio recorded generally stable development in its value, resulting in positive revaluation income of CHF 1,3 million. Following the successful tender for 98,9% of LO shares as part of the public exchange offer to the shareholders of LO Holding Lausanne-Ouchy SA, the merger between the two companies was completed on 9 November 2009. The Mobimo shares issued at the time of the merger were measured at the stock market price as at the acquisition date in accordance with IFRS. The transaction produced negative goodwill of CHF 15,6 million, which was recognised directly in profit or loss as a one-time effect of the purchase. A well stocked project pipeline The Group is currently working on a number of construction projects with a total investment volume of CHF 550 million, with around CHF 150 million being channelled into the construction of attractive apartments for its own portfolio in premium locations in Zurich and Lausanne. Mobimo also owns development properties and sites that will generate a total construction volume of around a further CHF 500 million over the next few years. This investment potential in attractive locations means the company is only marginally affected by the current strained situation on the transaction market. Solid financing With an equity ratio of 48%, Mobimo remains solidly financed. The average interest rate for financial liabilities fell from 3,5% in the prior year to 3,1% in the period under review. The yield spread rose to an attractive 2.3% in 2009 (prior year 2.0%). Mobimo is financed on a long-term basis; as at the end of the year, the average residual maturity of financial liabilities was 5.1 years (prior year 5.9 years). Dividend proposal The Board of Directors will propose to the General Meeting of 5 May 2010 a further distribution in the form of a nominal value repayment of CHF 9.00 per share. Based on Mobimo's share price at year-end this gives a dividend yield of 5,1%. Outlook The main areas of focus in 2010 will be space marketing, condominium sales, the integration of LO and the ongoing development of the project pipeline. Since the expansion of the residential component of the investment portfolio means a number of properties will now be managed as investment properties rather than sold as condominiums, sales income from promotions will fall, but the proportion of regular rental income will continue to rise. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: About Mobimo 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 providing stable income and development properties offering extensive value enhancement potential. Investments are focused mainly on promising locations in the business centres of Zurich, Lucerne/Zug, Basel, St. Gall and Lausanne/Geneva. Mobimo has an attractive overall portfolio worth CHF 1,9 billion, comprising 112 investment properties with target rental income of some CHF 92 million and development properties for its own portfolio and for condominium sales with a current investment volume of CHF 550 million. This makes Mobimo one of the leading real estate companies in Switzerland. Further information can be found at www.mobimo.ch. For enquiries please contact: Mobimo Holding AG Dr. Christoph Caviezel, CEO Manuel Itten, CFO 044 397 11 86 09.03.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------