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- Mobimo posts solid set of results in the first half of 2010
August 25, 2010
Mobimo posts solid set of results in the first half of 2010
Mobimo Holding AG / Half Year Results 25.08.2010 06:57 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 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 ---------------------------------------------------------------------------