Mobimo increases profit by more than 50 percent
Mobimo generated a corporate profit of CHF 159.4 million in the 2016 financial year, exceeding the previous year's record result by 52 percent.
As Mobimo reports, the profit includes income from the sale of three investment properties of CHF 34.9 million (previous year: 2 properties, 63.8 million). Excluding the revaluation, the majority of which was market-related in 2016, the profit attributable to shareholders amounts to 99.4 million, 26.5 percent more than in the previous year (78.6 million). In addition, a one-time positive special effect in the area of deferred taxes was recorded, Mobimo added.
Higher rental income, stable vacancy rate
Despite the sales, Mobimo increased its rental income by 6.3 percent to CHF 114.7 million. However, the reporting period and the previous year can only be compared to a limited extent, the company points out. The reason is that the portfolio changed significantly in 2015 and 2016. On the one hand, this was due to the sale of investment properties, secondly, to the acquisition of the portfolio of Dual Real Estate Investment SA in Geneva at the end of 2015. These acquisitions added 700 residential units to the Mobimo portfolio. A further 266 residential units originating from Mobimo's own project development complemented the portfolio in 2015 and 2016.
The share of rental income from residential use is 28 percent (previous year 29%).
Rental income amounted to CHF 96.2 million (previous year: 94.1 million), an increase of 2.3 percent.
The vacancy rate increased minimally from 4.7 percent (Dec. 31, 2015) to now 4.8 percent as of Dec. 31, 2016.
Offer of development third parties strongly demanded
Income from promotion and development services reached CHF 151.8 million in 2016 - compared to CHF 86.2 million in the previous year. This resulted in an increase in income from this area to CHF 23.9 million.
The largest number of condominium property transfers recognized in income in 2016 was attributable to the Am Meggerwald development in Lucerne, Mobimo reports. In the area of third-party development, 2016 saw the sale of a project on the Mattenhof site in Kriens and, in July 2016, the handover of the turnkey office building constructed for 3M EMEA in Langenthal.
Mobimo is also expanding its development activities for third parties with a two-thirds stake in BSS&M Real Estate AG in Zurich.
Reinvestment of proceeds from sales
In the past financial year, proceeds from sales amounted to CHF 158.5 million (previous year: 236.8 million), while income amounted to CHF 34.9 million (previous year: 63.8 million). Mobimo intends to invest the funds in its own development pipeline. The investment volume of projects under construction amounts to CHF 560 million and that of projects in planning to CHF 470 million.
The revaluation of investment properties and investment properties under construction resulted in income of CHF 80.7 million, compared with CHF 34.7 million in 2015. The lower discount rate for revaluations due to market conditions had a positive impact, particularly in the residential property segment.
Movement in the Flon district in Lausanne
In Lausanne, Mobimo started the realization of Les Garages in the southern part of the Flon district, where commercial space will be created. In 2017, construction work will also start on a new hotel building. Hotel operator SV Hotel plans to open Switzerland's first Moxy hotel here in 2019 with 110 beds.
In German-speaking Switzerland, construction work is being carried out mainly in Zurich, Kriens and Aarau on behalf of Mobimo. Ten buildings with a total of 277 rental apartments and commercial and retail space are being built on the Labitzke site in Zurich. On the Mattenhof site in Kriens, Mobimo is realizing a mixed-use neighborhood. In Aarau's Aeschbach Quarter, 56 of the 92 condominiums have currently been sold. The apartments will be ready for occupancy in early 2017, and construction work is underway on 167 rental apartments scheduled for completion in 2018.
Positive outlook
The Board of Directors and Management of Mobimo are confident about the future. The real estate market remains attractive, on the one hand due to the persistently low level of interest rates, and on the other hand thanks to Switzerland's attractiveness in an international comparison. Mobimo is also convinced that demand for living and working space in urban centers and in high-quality properties will remain high.
