Mobimo Holding AG: Mobimo records strong operational performance in 2017 Freitag, 09. Februar 2018 - 07:01

Mobimo Holding AG / Key word(s): Final Results
Mobimo Holding AG: Mobimo records strong operational performance in 2017

09-Feb-2018 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Press release

Mobimo records strong operational performance in 2017

- After the record-breaking result of the previous year (CHF 159.4 million)
that was largely due to revaluation, Mobimo generated another strong
result,with profit of CHF 91.5 million.

- The company generated rental income of CHF 111.0 million, remaining at a
similar level to the previous year (CHF 114.7 million).

- The vacancy rate continues to remain low at 4.9% (previous year: 4.8%).

- Profit attributable to trading properties and development services
amounted to CHF 24.7 million, up from the prior year (CHF 23.9 million).

- A profit of CHF 27.5 million was generated from the sale of individual
investment properties (previous year: CHF 34.9 million).

Lucerne, 9 February 2018 - Mobimo was well on course operationally in all
areas in 2017. Stable rental income, profit from trading properties and
development services as well as selective sales from the portfolio resulted
in a pleasing EBIT excluding revaluation that was practically on a par with
the previous year.

Mobimo can once again look back on a good financial year. The 2017 result
was strongly shaped by operational performance again, whereas in the
record-breaking years of 2015 and 2016 income from the sale of investment
properties, high market-related upwards valuations and a positive
non-recurring item relating to deferred taxes had been prominent. With EBIT
amounting to CHF 142.3 million (prior year: CHF 200.3 million), Mobimo
recorded the third-highest EBIT result in the history of the company. EBIT
excluding revaluation totalled CHF 115.0 million (prior year: CHF 119.6
million) and was thus on a par with the previous year, which reflects the
excellent performance of all operational activities. Mobimo achieved profit
attributable to the shareholders of Mobimo Holding AG of CHF 91.6 million
including revaluation and CHF 71.9 million excluding revaluation (prior
year: CHF 158.7 million and CHF 99.4 million respectively). The
corresponding earnings per share stood at CHF 14.74 and CHF 11.56 (prior
year: CHF 25.52 and CHF 15.99). The Board of Directors will once again
propose a distribution of CHF 10.00 per share at the forthcoming Annual
General Meeting.

Active portfolio management
In 2017, Mobimo acquired a plot of land in Meggen on the shores of Lake
Lucerne as well as a commercial property, which is situated next to the
station square Lausanne. The company is planning to use the plot in Meggen
to build 30 condominiums in the mid-price segment, which continue to be in
high demand. Construction is scheduled to begin in 2019. The huge potential
of the fully let building in Lausanne shall be realised in the development
of the property.

The profit generated by the sale of four investment properties, including
three office and commercial properties, stands at CHF 27.5 million (prior
year: CHF 34.9 million). As part of its property strategy, Mobimo will
continue to take advantage of attractive transaction opportunities in the
future with the aim of optimising its portfolio. During the reporting
period, the Mobimo portfolio grew from CHF 2,766 million to CHF 2,799
million net.

Stable rental income with a persistently low vacancy rate
Mobimo recorded stable rental income of CHF 111.0 million (prior year: CHF
114.7 million) in spite of the aforementioned sales. Net rental income
totalled CHF 94.1 million (prior year: CHF 96.2 million). The vacancy rate
remained at a low level of 4.9% (prior year: 4.8%), while the cost/income
ratio arising from direct expenses for rented properties fell from 16% to
15% year-on-year.

There were and still are slightly higher contract maturities than usual in
2017 and 2018. In light of this and in view of the increasingly competitive
environment of the commercial space market, Mobimo considers its in-house
management and facility management as well as its many years of development
experience as valuable prerequisites for investment in long-term tenant
retention and for maintaining a high level of occupancy.

Pleasing result from trading properties and development
The profit generated on the sale of trading properties and development
services totalled CHF 24.7 million (prior year: CHF 23.9 million), with the
transfers of condominium ownership in Aarau's Aeschbachquartier contributing
to this. The projects in Lucerne (Am Meggerwald) and Feldmeilen (Flair) were
completed in 2017 with the sale of the final apartments. The Development for
Third Parties business area played a significant role in achieving this
pleasing result with the sale of one building on the Labitzke site in Zurich
and the successful completion of the first stage of the project being
carried out in Bad Zurzach (rental properties and condominiums).

Revaluation gains thanks to project development
Following the extraordinary revaluation income of CHF 80.7 million driven
predominantly by the market in 2016, revaluation income fell to a normal
level in the year under review, amounting to CHF 27.3 million. This is
mainly due to operational activities and therefore reflects the fact that
construction is proceeding as planned in the major projects for the
company's own portfolio as well as the activities aimed at increasing the
quality of the existing portfolio. portfolio.

Realisation on track
In the development business, Mobimo is on track to realise the major
Mattenhof, Labitzke and Aeschbachquartier projects. With the Labitzke
development, Mobimo is clearly addressing the high demand for affordable
residential space in an urban environment. Four months prior to tenants
moving in, all of the apartments and 75% of the commercial spaces have been
let. It will, however, be more challenging to market the spaces in the
Aeschbachquartier and Mattenhof projects, despite the good product and
price-performance ratio.

From the perspective of the pipeline, 2017 was a transitional year with only
two smaller completions, both of which are in Lausanne - Les Garages with
floor space for businesses, studios and galleries, as well as the Esplanade
du Flon, the central square that has undergone comprehensive renovations in
the Flon district. In 2018 as well as in 2019 and 2020 in particular, the
abovementioned development projects as well as many others will be added to
the portfolio, bringing additional rental income of over CHF 25 million.

Rejuvenation of the Executive Board
Mobimo enters the new financial year with a slight change in its
organisational structure. The appointment of Vinzenz Manser and Marco Tondel
has seen the Executive Board strengthened and rejuvenated with the addition
of two longstanding members of management. In his role as Head of
Realisation, Vinzenz Manser is responsible for ensuring that construction
projects are realised within budget and on schedule, as well as for the
quality assurance process and the smooth handover of units to tenants and
buyers. Marco Tondel is in charge of the company's development activities.
Andreas Hämmerli, previously Head of Development, stepped down from the
Executive Board as at 1 January 2018. We would like to take this opportunity
to thank him for his successful service to Mobimo in almost ten years with
the company.

Outlook
The Board of Directors and the Executive Board expect the Swiss real estate
market to once again deliver a robust performance in 2018. Along with
consumer sentiment, the Purchasing Manager Index and the KOF Economic
Barometer, the key indicators for the market are looking positive. In 2017,
the Swiss franc also weakened, and the mortgage interest rate remained at a
record-low level, which resulted in the reference interest rate falling to
1.5%. The forecast economic growth could culminate in interest rate
adjustments in the OECD area, which would also provide the Swiss National
Bank with greater leeway in terms of its monetary policy. Nevertheless, we
expect interest rates to remain low in 2018. Real estate prices are
therefore likely to remain stable. The pleasing economic outlook looks set
to have a positive impact on the office space market, where location and
product remain the factors for success. This also holds true for the rental
apartment market. The high amount of residential construction activity is
leading to a higher vacancy rate in peripheral areas, while demand for
residential space in city centres and commuter towns close to centres
remains consistently high. This is also the case, in a slightly adapted
form, for the demand for condominiums.

Thanks to our high-quality portfolio featuring real estate in excellent
locations as well as the attractive pipeline, Mobimo is optimally prepared
to overcome the future challenges it will face on the market. The company
will adhere to its proven strategy and business model, thus ensuring
attractive distribution, and is looking to the future with great confidence.


Detailed reporting: You can find the Annual Report 2017 on our website.

A media and analysts' conference will take place today at 10.00 a.m.
Christoph Caviezel (CEO) and Manuel Itten (CFO) will present the 2017
results.

The webcast of the conference is also available on our website at:
http://mobimo090218-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 2017 financial
results, Christoph Caviezel (CEO) and Manuel Itten (CFO) will be available
to answer any questions. Registration is not necessary.

Dial-in data: +41 44 580 10 22 | Conference ID: 2505739
The corresponding presentation can be viewed by clicking the following link:
www.audio-webcast.com
Password: mobimo0218en


If you have any questions, please contact:
Mobimo Holding AG
Dr. Christoph Caviezel, CEO
Manuel Itten, CFO
+41 44 397 11 86
ir@mobimo.ch
www.mobimo.ch


About Mobimo:
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 CHF 2.8 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 its own portfolio totals around CHF 0.8 billion. Mobimo has a
stable business model, pursues a sustainable strategy and provides its
shareholders with an attractive return.


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End of ad hoc announcement

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