Mobimo posts solid set of results in the first half of 2010

Mobimo Holding AG / Half Year Results

25.08.2010 06:57

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M e d i a  R e l e a s e


Mobimo posts solid set of results in the first half of 2010 

* Net profit of CHF 28.8 million or CHF 5.68 per share
* 30% rise in rental income to CHF 43.7 million 
* Value of the entire portfolio up 7.5% to CHF 2,019 million

Lucerne, 25 August 2010 - Mobimo Holding AG continued to implement its
agreed strategic direction in the first half of 2010, increasing the
residential share of the investment portfolio, boosting regular rental
income and further expanding the project pipeline. Consequently, profit
from the sale of trading properties decreased, in line with expectations.
In all, the company recorded an operating result (EBIT) of CHF 49.3 million
in the January-June 2010 period, compared with CHF 54.1 million in the
prior-year period. It posted solid results overall, with net profit coming
in at CHF 28.8 million (prior year: CHF 35.5 million), which equates to
earnings per share of CHF 5.68 (prior year: CHF 8.18). Revaluations of
properties resulted in a profit of CHF 16.5 million (prior year: CHF 9.1
million). The portfolio was further optimised through the disposal of three
properties and the acquisition of an extensive complex of buildings in
Lausanne. As a consequence, the value of the portfolio stood at CHF 2,019
million, up CHF 141 million from CHF 1,878 million at the end of 2009.

Substantial increase in earnings in the investment business 
Although the market for office and commercial space has grown tougher,
attractive, centrally located properties and premium residential space are
still enjoying strong demand. Income from rental of properties increased by
30% from CHF 33.7 million to CHF 43.7 million. This includes rental income
from LO Holding, which was acquired last year. Net rental income went up by
31% to CHF 38.2 million (prior year CHF 29.2 million). The vacancy rate
decreased to 6.5% as at 30 June 2010 (prior year: 6.7%).
At the same time, profit on the sale of trading properties shrank to CHF
4.6 million (prior year: CHF 21.7 million), due partly to the smaller
number of projects at the revenue recognition phase and partly to the
strategic decision to realise fewer trading properties to earn one-off
disposal gains and instead erect more residential properties to bring in
regular rental income for the investment portfolio.

A well stocked project pipeline
Market demand for investment properties remains high, which in some cases
is translating into excessive prices. Mobimo therefore concentrates on
buying properties with scope for development and expansion, giving it the
opportunity to add value. Mobimo is currently realising five construction
projects with a total of 235 apartments and an investment volume of CHF 310
million for the investment portfolio and 174 new apartments for sale as
condominiums. Realisation of the Mobimo Tower is on schedule, and more than
a third of the apartments have already been sold or reserved. Considerable
progress has been made in the 'Torfeld Süd' site by Aarau station, and the
first-class 'Post' site at Lausanne station, which was acquired during the
reporting period, harbours attractive potential for development. In
addition to the ongoing construction work, with an investment volume of CHF
640 million, Mobimo also boasts a secure project pipeline representing
investment potential of CHF 670 million over the next years.

Solid financing
With an equity ratio of 45%, Mobimo remains solidly financed. The average
rate of interest on financial liabilities decreased from 3.1% in the
previous year to 2.9% in the reporting period, and the average residual
maturity of financial liabilities lengthened to 5.5 years (prior year: 5.1
years). The net yield on the investment properties was 5.1%, so that after
deducting the average borrowing costs, the yield spread was an attractive
2.2% (end-2009: 2.3%). The successful placement of a CHF 175 million
convertible bond in June 2010 means that Mobimo has sufficient funds at its
disposal to implement its expansion plans.

Outlook 
Mobimo expects to achieve a solid result for full-year 2010, in line with
that of the prior year, once the positive one-off effects in 2009 from the
LO Holding acquisition are stripped out. This will enable Mobimo to
maintain its attractive distribution policy. The main areas of focus in the
second half of the year will continue to be space marketing, condominium
sales and the ongoing development of the project pipeline.


Analyst and media conference call at 9.00 a.m. CET today
A conference call for analysts and the media will take place at 9.00 a.m.
CET today (in German). Dr. Christoph Caviezel (CEO) and Manuel Itten (CFO)
will present the half-year results and field questions. Registration is not
required.
Telephone no.: +41 22 592 73 12 / conference ID: 4345709
You can view the associated webcast presentations under the News sections
of Mobimo's website (www.mobimo.ch).


For further information please contact: 
Mobimo Holding AG    
Dr. Christoph Caviezel, CEO
Manuel Itten, CFO
+41 44 397 11 86

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 comprised of investment properties showing stable revenues
and development properties offering high potential for value enhancement.
Acquisitions and investments are targeted mainly in attractive locations in
the business centres of Zurich, Lucerne / Zug, Basel, St. Gall and Lausanne
/ Geneva. Mobimo's attractive portfolio amounts to CHF 2.019 billion in
total comprising 137 properties with a target rental income of CHF 95
million as well as development properties, comprised of developments for
its own investment portfolio as well as the development of owner-occupied
residential property for sale, with an investment volume of CHF 670
million. Mobimo is one of the leading real estate companies in Switzerland.
For more information please consult our website on www.mobimo.ch.


25.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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