Mobimo with record profit in the first half of 2016

In an economic environment that was more stable than expected from Mobimo's perspective, the company generated a profit of CHF 89.8 million including revaluation in the first half of 2016. Profit attributable to shareholders excluding revaluation amounted to 74.2 million. EBIT increased by around 75 percent to CHF 105.2 million in the first half of 2016 (H1 2015: CHF 60.2 million)

Above all, the success from sales, promotion and development services, the further growth in rental income and the sale of two investment properties contributed to the record result, Mobimo reports. In addition, a positive result from revaluation of CHF 20.9 million and a special effect in the area of deferred taxes were recorded.

Purchases and sales change portfolio composition

Rental income rose by around eight percent to CHF 56.8 million (H1 2015: 52.6 million). However, Mobimo points out that the composition of revenue is only comparable with the same period of the previous year to a limited extent: In the last twelve months, investment properties with a book value of around CHF 230 million were sold, at the end of 2015 Mobimo acquired the portfolio of Dual Real Estate Investment SA in Geneva (fair value of 241.7 million as at December 31, 2015) and handed over the new Letzihof building in Zurich with 72 apartments to tenants in spring 2016. The expense ratio of direct rental expenses was 15 percent above the prior-year period (H1 2015: 11%). This resulted in a 3.5 percent increase in net rental income to CHF 48.3 million (H1 2015: 46.6 million).

The vacancy rate was 4.9 percent as of June 30, 2016 (December 31, 2015 4.7%).

Promotion and Development Services: Significant increase in revenue and profit

The majority of the condominium property transfers recognized in income in the first half of the year originated from the "Am Meggerwald" project in Lucerne. Income from promotion and development services reached CHF 59.7 million (H1 2015: 17.7 million). This also represented a large increase in income from promotion and development services from 1.3 million in the prior-year period to now 17 million.

In the area of third-party investments, the sale of a plot of land on Mattenhof was completed and in Langenthal - after more than three years of development and construction activity - the office building constructed for 3M EMEA was handed over after the balance sheet date.

As of July 1, Mobimo acquired a two-thirds stake in BSS&M Real Estate AG in Zurich with a view to further expanding its development activities for third parties.

Well-filled pipeline

Mobimo was not active as a buyer in the first half of 2016, but sold two investment properties. The sales generated proceeds of CHF 153.2 million and income of CHF 33.9 million. The company currently has properties with a volume of 340 million under construction and projects for around 400 million in planning.

The Mobimo Group's major construction sites are currently located in Zurich, Kriens and Aarau. In late summer 2016, the foundation stone will be laid for the Labitzke site with 277 rental apartments and space for commercial and retail outlets, and at Kriens Mattenhof, ground will be broken for the realization of the urban, mixed-use quarter. With Swisscom as the anchor tenant, an occupancy rate of over 60 percent was achieved before construction began.

In Aarau's Aeschbach Quarter, completion of the 92 condominium units is progressing. The town apartments are scheduled to be ready for occupancy in 2017 and are currently 50 percent sold. Construction work has already started on the 185 rental apartments, scheduled for completion in 2018.

In Lausanne, Mobimo started the realization of "Les Garages" in the southern part of Lausanne's Flon district, where commercial space will be created. (ah)