Mobimo makes more than 90 million profit

Even though Mobimo clearly missed the record result of 2016, the real estate company is satisfied with the result of 2017: it is again more strongly characterized by the operating performance, whereas in the record years 2015 and 2016 the focus was on income from the sale of investment properties, high market-related revaluations and a one-time positive special effect in the area of deferred taxes, the company informs.

EBIT including revaluations of 142.3 million (previous year: 200.3 million) was the third-highest result in the company's history. Excluding revaluations, EBIT of 115 million was slightly lower than the previous year (119.6 million). Profit including revaluation was 91.6 million and 71.9 million excluding revaluation (previous year: 158.7 million and 99.4 million).

Two acquisitions, four disposals

Last year, Mobimo acquired a plot of land in Meggen on Lake Lucerne and a fully leased commercial building near Bahnhofplatz in Lausanne. In Meggen, 30 condominiums in the mid-price segment are to be built; construction will start in 2019. During the reporting period, four investment properties, including three office and commercial properties, were sold for CHF 27.5 million (previous year: 34.9 million). Net, the portfolio grew from 2.77 to 2.80 billion.

Despite the sales, rental income remained relatively stable at 111 million compared with the previous year (114.7 million). Net rental income amounted to 94.1 million (previous year: 96.2 million). The vacancy rate was 4.9 percent (previous year: 4.8%). The expense ratio of direct expenses from letting was reduced by one percentage point from 16 to 15 percent.

Income from sales and developments for third parties increases slightly

Income from the sale of promotion (real estate) and development services amounted to 24.7 million (previous year: 23.9 million). According to the company, the transfer of ownership of the condominium units in Aarau's Aeschbachquartier contributed to this. The projects in Lucerne (Am Meggerwald) and in Feldmeilen (Flair) were completed in 2017 with the sale of the last apartments.

In the third-party development business, a building on the Labitzke site in Zurich was sold, and the first stage of the project in Bad Zurzach (rental and condominium ownership) was also completed.

Following the extraordinary revaluation gain of 80.7 million in 2016, which was mainly market-related, the revaluation gain has returned to normal at 27.3 million, Mobimo reports. It is mainly operationally driven and reflects the progress of construction work on major projects for the company's own portfolio as planned as well as activities to improve the quality of the portfolio.

Project developments on track

In the development business, Mobimo believes it is on track with the realization of the major Mattenhof, Labitzke and Aeschbachquartier projects. The apartments in the Labitzke development are fully let four months before occupation, and 75 percent of the commercial space. The marketing of the areas in Aeschbachquartier and Mattenhof will be more challenging, the company says.

In 2017, there were only two smaller completions, both in Lausanne: Les Garages with space for stores, studios and galleries, and Esplanade du Flon, the central square in the Flon district. This year and in the coming years, these and other development projects will move into the portfolio and are expected to generate rental income in excess of 25 million.