Mobimo achieves 2018 half-year results in line with expectations Freitag, 03. August 2018 - 07:00

Mobimo Holding AG / Key word(s): Half Year Results
Mobimo achieves 2018 half-year results in line with expectations

03-Aug-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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Mobimo achieves 2018 half-year results in line with expectations

- Mobimo achieved solid half-year results, with profit of CHF 37.9 million.
As expected this was lower than in the previous year (first half of 2017:
CHF 63.3 million).

- Rental income fell slightly year-on-year to CHF 54.7 million (first half
of 2017: CHF 56.4 million) due to a number of disposals, while the vacancy
rate remained at practically the same low level of 5.1%.

- Net income from revaluation was CHF 17.7 million (first half of 2017: CHF
30.6 million), mainly due to the successful development of investment
properties for the company's own portfolio.

- Earnings per share amounted to CHF 6.04 in the first half of 2018 (first
half of 2017:
CHF 10.03).

Lucerne, 3 August 2018 - Mobimo posted a solid result for the first half of
2018. This was driven by stable rental income and positive net income from
revaluation, which resulted mainly from the successful realisation of
development properties for the company's own portfolio. The completion of
current projects and the integration of Immobiliengesellschaft Fadmatt AG
will substantially expand the portfolio of investment properties and ensure
higher rental income from the second half of 2018.

In line with expectations, the result for the first half of 2018 was below
that of the same period of last year, which was characterised in particular
by a strong boost in income from revaluation and especially high income from
the sale of properties. The profit attributable to the Mobimo shareholders
was CHF 37.6 million including revaluation (first half of 2017: CHF 62.4
million), and
CHF 24.4 million excluding revaluation (first half of 2017: CHF 40.1
million). EBIT amounted to
CHF 57.3 million (first half of 2017: CHF 92.9 million). Excluding
revaluation, EBIT was
CHF 39.6 million (first half of 2017: CHF 62.3 million). This operating
result led to earnings per share of CHF 6.04 (first half of 2017: CHF 10.03)
and CHF 3.92 per share excluding revaluation (first half of 2017: CHF 6.46).

Further portfolio optimisation and a low vacancy rate
Rental income fell slightly year-on-year to CHF 54.7 million (first half of
2017: CHF 56.4 million) due to changes in the portfolio. As part of the
portfolio optimisation, six smaller residential properties in the greater
Geneva area and two commercial properties in Lucerne and Neuhausen were
sold. This resulted in profit on disposal of investment properties of CHF
6.8 million (first half of 2017: CHF 17.8 million). The vacancy rate as at
30 June 2018 remained virtually unchanged at 5.1% (31 December 2017: 4.9%).
This low level was attributable to efficient and customer-oriented
management and active portfolio management. The situation in the Flon
district in Lausanne is particularly pleasing, where various contracts were
successfully renewed in the tenth year after completion of the majority of
the properties.

Progress made on the major construction sites
The major Mobimo construction sites in Zurich, Aarau, Kriens and Lausanne
are making good progress. At the Labitzke site in Zurich, whose overall 277
rental apartments had already been let long before completion, most of the
residents moved into their apartments in the second quarter. The building
constructed for a third party was also handed over. The 167 newly
constructed rental apartments in the Aeschbachquartier in Aarau will be
ready for occupancy in the course of the second half of the year, and
marketing activities are now in full swing. At the Mattenhof site in Kriens,
Mobimo is developing an attractive mix of rental apartments and office and
commercial spaces, which will be ready from spring 2019.

Integration of Immobiliengesellschaft Fadmatt AG
Mobimo achieved a major success in the negotiations with
Immobiliengesellschaft Fadmatt AG, which has an attractive portfolio of
residential properties in the cantons of Zurich and Schaffhausen worth
approximately CHF 289 million. Mobimo has submitted a friendly takeover
offer to the company's shareholders that came into effect after the balance
sheet date - provided all necessary conditions are fulfilled - and is
expected to be completed on 22 August. Around 50% of the purchase price will
be paid in the form of new shares created from Mobimo's authorised capital.
The integration of the Fadmatt properties into Mobimo's portfolio will
result in additional target rental income of more than CHF 10 million per
year.

Significant growth in rental income by the end of 2019
Thanks to the completion of residential and commercial spaces at the
Labitzke site in Zurich, the Seehallen in Horgen, the Aeschbachquartier in
Aarau and the Mattenhof in Kriens, with a further boost coming from smaller
projects and the integration of the extensive Fadmatt portfolio, Mobimo
expects rental income to increase by around CHF 27 million in 2019 compared
to 2017. This represents an increase of around 24%.

High demand for condominiums in Aarau
Income from development projects and sale of trading properties was CHF 31.9
million in the first half of 2018 (first half of 2017: CHF 91.2 million).
This resulted in profit on development projects and sale of trading
properties of CHF 3.9 million (first half of 2017: CHF 13.3 million). The
sale of ten condominiums was notarised during the reporting period. Most of
the condominium notarisations related to six residential properties in the
Aarau, Site 4 (Torfeld Süd) project. Since Mobimo is applying IFRS 15 from
the 2018 financial year onwards, revenue from condominium sales will be
recognised from the date specified on the publicly notarised purchase
contract. The revenue was previously only realised at the point that
ownership was transferred.

Own development ensures revaluation income
The revaluation of investment properties and properties under construction
resulted in net income from revaluation of CHF 17.7 million (first half of
2017: CHF 30.6 million). The highest contribution to revaluation income came
from investment properties under construction for the company's own
portfolio, totalling CHF 18.0 million (first half of 2017: CHF 23.8
million).

Outlook
The Swiss economy continues to grow and interest rates remain low - both of
which are good conditions for the continuation of the positive growth
recorded in the real estate sector. The market is becoming more challenging,
however. While the situation in the office segment has eased slightly, there
are signs of saturation following intensive residential construction
activity, particularly in peripheral areas. Mobimo is very well positioned
to be successful in this environment. The Board of Directors and the
Executive Board are convinced that the company will continue to deliver a
good performance in the second half of the year and beyond. Mobimo will
remain a share with an attractive distribution.

The 2018 financial year, and also 2019/2020, will be marked by the
completion of major projects. Accordingly, Mobimo is focusing on their
successful completion and smooth transition to the portfolio. The company's
growth and the significant new additions to the portfolio call for strict
cost management and efficient marketing - while maintaining a low vacancy
rate. As usual, Mobimo will seize opportunities in the Development for Third
Parties business area after careful risk assessment. This also applies to
the production of condominiums, which will take place selectively and only
in segments and locations where demand is high. In terms of our portfolio,
the focus will be on continuously increasing rental income through focused
optimisation and on ensuring customer satisfaction.


Detailed reporting: You can find the report on the first half-year 2018 on
our website
www.mobimo.ch.

A media and analysts' conference call will take place today at 10 a.m.:
Christoph Caviezel (CEO) and Manuel Itten (CFO) will present the 2018
half-year results.
Dial-in number: +41 44 580 72 69 | Conference-ID: 8563303
Please use the following link to view a live broadcast of the presentation:
https://webcasts.eqs.com/mobimo20180803de/no-audio


A conference call in English will be held today at 2 p.m.:
Dial-in number: +41 44 580 72 06 / Conference ID: 2431430
The corresponding presentation can be viewed by clicking the following link:
https://webcasts.eqs.com/mobimo20180803en/no-audio

If you have any questions, please contact:
Mobimo Holding AG
Dr. Christoph Caviezel, CEO
Manuel Itten, CFO
+41 44 397 11 95
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 more
than 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 1.0 billion. Mobimo has a
stable business model, pursues a sustainable strategy and provides its
shareholders with an attractive return.


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