What are development bonds 1
A strong first half of the year for Mobimo
- After the extraordinary record result of the previous year, Mobimo again achieved a strong half-year result in 2017.
- Mobimo generated a company profit of CHF 63.3 million (first half of 2016 CHF 89.8 million).
- At CHF 56.4 million (first half of 2016 CHF 56.8 million), rental income was on a par with the previous year.
- The vacancy rate remained practically unchanged at a low 4.9%.
- Income from sales, promotion and development services amounted to CHF 13.3 million (first half of 2016 CHF 17.0 million).
- The predominantly development-related result from revaluation clearly exceeded the previous year at CHF 30.6 million (first half of 2016 CHF 20.9 million).
Lucerne, August 4, 2017 - After the record result of the previous year, Mobimo again achieved a pleasing half-year result in 2017 with good operating results in all areas. As a result, the company recorded a success from revaluation, which is mainly due to the implementation of development projects for its own investment portfolio. The numerous projects under construction and in planning open up further growth potential.
After the 2015 and 2016 financial years were characterized by extraordinarily high income from the sale of investment properties and substantial, market-related upgrades to the portfolio, the focus in 2017 is once again on operating earnings contributions and the added value from development activities. With its successful activities in all operational areas, Mobimo achieved an EBIT of CHF 92.9 million (1st half of 2016 CHF 105.2 million) and a profit of CHF 63.3 million (1st half of 2016) in the first half of 2017 CHF 89.8 million). The profit attributable to Mobimo shareholders was CHF 62.4 million (1st half of 2016 CHF 89.5 million) including revaluation and excluding revaluation at CHF 40.1 million (1st half of 2016 CHF 74.2 million). ). This generated earnings per share of CHF 10.03 (first half of 2016 CHF 14.39). Exclusive revaluation resulted in CHF 6.46 per share (1st half of 2016 CHF 11.93). Mobimo is therefore well on the way to being able to continue its attractive dividend policy as usual.
Rental income at previous year's level with low vacancy rates
Despite sales and with a practically unchanged low vacancy rate of 4.9% (December 31, 2016 4.8%), rental income is at the previous year's level at CHF 56.4 million. At 14%, the expense ratio for direct rental expenses was slightly lower than a year ago (first half of 2016 15%). This resulted in rental income of CHF 48.6 million (first half of 2016 CHF 48.3 million). The transaction-related movements in the portfolio as well as the new additions in the form of completed developments for the portfolio allow a comparison with the previous year's periods only to a limited extent.
Continuous growth in rental income in the coming years
Thanks to its own management and facility management, Mobimo is close to the tenants and can identify changes and customer needs at an early stage. This is one of the reasons why Mobimo has already largely been able to extend or conclude new contracts due in 2017.
With a targeted portfolio diversification, Mobimo pays attention to a balanced mix of usage. As of June 30, 2017, the proportion of rental income from residential use was around 28%. Mobimo is currently realizing projects for its own portfolio, particularly in Zurich, Kriens, Aarau and Lausanne, with a total investment volume of CHF 480 million. This will result in additional rental income of over CHF 25 million per year by the end of 2019. In addition, further development projects with a total investment volume of around CHF 370 million and a target rental income potential of over CHF 20 million for the company's own portfolio are being planned.
Pleasing sales level for condominiums in Aarau
Income from the sale of promotions and development services amounted to CHF 91.2 million in the first half of 2017 (first half of 2016 CHF 59.7 million). This resulted in a success from promotion and development services of CHF 13.3 million (first half of 2016 CHF 17.0 million). A total of 74 condominium apartments were transferred to the new owners. Most of them come from the Aeschbachquartier in Aarau, which was completed in spring 2017.
If the location, conditions and regional demand are right, Mobimo will continue to invest in condominium projects. After the balance sheet date, the company acquired a plot of land in Meggen on Lake Lucerne and is planning around 30 condominiums on it. The third party development department carried out a number of projects in 2017 that will contribute to earnings in the second half of the year. The pipeline with projects for third parties has a total investment volume of around CHF 800 million.
Make targeted use of opportunities with active portfolio management
Mobimo took advantage of the unchanged high level of demand in the transaction market by selling three investment properties to optimize its portfolio and achieved impressive profits in the process. The Apollo office building in Zurich, a commercial property in Renens and an apartment building in Versoix were sold. These sales resulted in a profit of CHF 17.8 million (first half of 2016 CHF 33.9 million). In accordance with the company's business model, the sales proceeds are invested in the company's own development pipeline at higher returns.
Revaluation success primarily from own development
Mobimo recorded a revaluation gain of CHF 30.6 million in the first half of the year (first half of 2016 CHF 20.9 million), of which CHF 23.8 million is attributable to the positive performance of the investment properties under construction. Conversions or renovations of residential and commercial buildings in Rheinfelden, Aarau and Lausanne are just as much a part of this as, for example, the construction progress on schedule on the Labitzke site in Zurich, where almost all apartments are rented a year before moving in. In Lausanne, the construction work for Les Garages has been completed. These modular sales, commercial and office spaces in the Flon district, which will be occupied in September, are already rented. The existing portfolio also opens up further scope for increases in value as a result of new developments or renovations. Thanks to its own development department, Mobimo can efficiently exploit this potential.
Switzerland is in robust economic shape. It offers attractive jobs with a high quality of life. These parameters ensure that the demand for living space remains intact and that business space, especially in good locations in urban centers, continues to be in demand. Mobimo is convinced that it operates in an attractive market environment that offers a number of opportunities. However, the upheavals in the retail trade, the changing working methods as a result of digitization and the constantly growing range require careful market observation - and flexibility. Thanks to its business model, Mobimo is able to pursue different options and trade successfully depending on market conditions.
The company is entering the second half of 2017 with an unchanged focus. Mobimo intends to stick to its attractive dividend policy. The board of directors and management are convinced that the company will continue to develop positively in the future, provide excellent operational performance and create added value for shareholders.
Detailed reporting: You can find the report for the first half of 2017 on our website www.mobimo.ch.
An analyst and media conference call will take place today at 10 a.m.:
Dr. Christoph Caviezel (CEO) and Manuel Itten (CFO) will present the 2017 half-year results.
Dial-in data: +41 44 580 72 69 | Conference ID: 4568230
The following link takes you to the live presentation of the conference call: http://mobimo040817-live.audio-webcast.com
Today at 2 p.m. there will be a conference call in English: After the presentation of the half-year results, Manuel Itten (CFO) will be available to answer any questions.
Dial-in data: +41 44 580 10 22 | Conference ID: 9006571
The associated presentation is available at the following link: www.audio-webcast.com
(The password is: mobimo0817en)
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 founded 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 consists of investment and development properties in first-class locations in German and French-speaking Switzerland. With its residential and commercial properties, Mobimo generates stable rental income and with its development expertise and the full pipeline it creates value-enhancement potential in its own portfolio and for third parties. The investment volume of the development properties for its own portfolio is around CHF 0.8 billion. Mobimo has a solid business model, pursues a sustainable strategy and offers its shareholders an attractive return.
End of the ad hoc announcement
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