Mobimo Holding AG

EQS Group-Ad-hoc: Mobimo Holding AG / Key word(s): Final Results
2015-02-12 / 06:50
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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P r e s s   r e l e a s e


A good financial year for Mobimo

* Rental income up by 11% to CHF 105.1 million
* Increase in proportion of investment properties to 77% of the total portfolio of CHF 2.47 billion
* Investments for Third Parties establishes itself as a third revenue pillar
* Earnings per share of CHF 10.00, unchanged dividend of CHF 9.50 per share
Lucerne, 12 February 2015 - Mobimo can look back on another good financial year. As expected, net operating profit was down on the extraordinarily profitable prior year at CHF 63.2 million. The company is nonetheless in a position to continue with its attractive dividend policy and distribute CHF 9.50 per share. The main drivers of Mobimo's continued good business performance in 2014 were the expected boost in rental income and strong profits from sales and project development.

A calmer real estate market
The anti-immigration and Ecopop initiatives, the regulatory measures implemented and announced by the Federal Council, FINMA and the Swiss National Bank, the restraint shown by banks, together with a number of critical media reports on the real estate market, did not leave market participants unaffected. An actual cooling of the real estate market is, however, only noticeable in sub-segments. The desire to own residential property continues unabated, not least driven by even lower financing costs. In this respect, Mobimo is well positioned in the mid-price segment, offering modern products in central locations, and is pleased with the ongoing high level of interest in such products. The sales process is once again taking more time and requiring greater consulting effort, however. While patience is required as regards the absorption rate in the saturated luxury segment, demand for rental apartments remains sound, including at the higher end of the market. The sideways trend in the market for office and commercial space is unchanged, with retail in particular still feeling the effects of fierce competition. Transaction prices for investment properties remain high, with many market participants generating major demand. Thanks to its diversified and flexible approach, Mobimo is well positioned with its strategy in this environment.

Intensive construction and development activities Both the Pépinières multi-functional building in Lausanne and the retirement home and residential development next to the railway station in Affoltern am Albis (Zurich) were handed over to tenants in the first half of the year. The Station 595 project in Badenerstrasse in Zurich - another office building that was successfully converted into condominiums and studios by Mobimo - and the Collina condominiums in Zurich-Witikon were completed in autumn. Construction began at the start of the year on the Letzihof residential development in Zurich, while major progress was also made on the Sonnenhof residential development in Regensdorf (Zurich). Work began in the second half of the year on the realisation of the development in the Aeschbachquartier in Aarau and the creation of condominiums in the city of Lucerne. Demolition work and environmental remediation measures began in preparation for the development of the groundbreaking residential construction project on the Labitzke site in Zurich-Altstetten. The site was the focus of constant media coverage due to its occupation by activists, a situation we tolerated during the planning phase. The building permit was issued at the end of the year. In Investments for Third Parties, the foundation stone was laid for the new 3M EMEA headquarters in Langenthal. Shortly before the end of the year, the completed residential development project in the Hochbord district of Dübendorf (Zurich) was handed over to the commissioning party.

Marked rise in rental income in the investment portfolio As expected, the completion and handover of the various rental properties in the prior year and the year under review resulted in strong growth in rental income in 2014. This means that income streams continue to stabilise in line with targets. Income from rental properties totalled CHF 105.1 million, exceeding the 100-million-mark for the first time, and was 11% above the prior-year level. In addition to the completion of buildings for its own use, Mobimo added a major, fully let office complex in Friesenbergstrasse in Zurich to its portfolio in the first quarter. In this building, we will continue to accumulate experience of facility management services, with these services being offered under the Mobimo name within the framework of a joint venture. In addition, five smaller properties were sold. The value of the investment properties totalled CHF 1,908 million as at the end of the period under review (prior year: CHF 1,578 million), which corresponds to 77% (prior year: 67%) of the overall portfolio of CHF 2,470 million.

Solid revenue in trading properties and services
Revenues from trading properties and services are understandably volatile. After the result of these business activities was only just balanced in the first half of the year, positive net income of almost CHF 25 million was achieved as at the end of the year (in comparison: CHF 32 million was generated in 2013 and CHF 22 million in 2012). In addition to a considerable number of transfers of condominium ownership, the Investments for Third Parties business area also made a substantial contribution to results and has thus developed into an important source of income.

Neutral revaluation result
In comparison with prior years, a considerably lower revaluation result of CHF 3.8 million was recorded in 2014. The share of revaluation gains accounted for by market factors had little impact on the result. Going forward we will continue to be able to generate revaluation gains from the development of our own portfolio, but we no longer anticipate valuation increases in relation to the discount rate in the near future.
Increased headcount and streamlining of corporate management Following the departure of Executive Board member Peter Grossenbacher, a decision was taken to merge Portfolio Management and Investments for Third Parties under the new heading of Real Estate. Thomas Stauber, who has been a member of the Mobimo Executive Board since November 2011 and is responsible for the successful establishment of the Investment for Third Parties business area, took over as head of the new unit with effect from 1 July 2014. Headcount at Mobimo grew in the year under review, with the company now employing more than 100 FTEs for the first time ever. This was in keeping with the growth of our portfolio. This strong team will allow us to meet the challenge posed by the further growth of the company.
Successful refinancing with bonds and an extremely solid balance sheet The capital market has a lot of confidence in Mobimo. In the year under review we placed a seven-year bond and a ten-year bond, totalling CHF 350 million. The 2010 - 14 convertible bond was repaid as at 30 June 2014. The Group therefore remains extremely solidly financed over the long term at good conditions. Today, around 50% of liabilities consist of bank liabilities and bonds. Mobimo's equity ratio as at the end of the year was a comfortable 44%.

Changes to the Board of Directors and dividend proposal to the General Meeting
Paul Rambert, a long-serving member of the Board of Directors and successful former CEO of LO Holding, will not make himself available for re-election after reaching the internal age limit. The Board of Directors is delighted to be able to put forward Peter Barandun as a worthy successor for election. We will propose to the General Meeting the distribution of an unchanged dividend of CHF 9.50 per share from capital contribution reserves. This will ensure our share continues to pay a return of around 4.8% based on its price at the end of 2014.

Outlook
Given the current macroeconomic environment and in the face of increasingly strict regulation, growth-impeding factors that are reducing the demand for office space in particular are now emerging. The Board of Directors and the Executive Board are therefore cautiously optimistic as regards the future development of the Swiss real estate market. Mobimo will benefit from its flexibility and lean organisation in a real estate market that is returning to normal. The growing proportion of investment properties in good, central locations is providing us with the required stable growth in rental income, while development opportunities in respect of condominiums and for third parties also remain good.

Detailed reporting
You can find the report on the 2014 financial year on our website www.mobimo.ch under Investor Relations / Reporting or on the homepage. (Link: http://ir.mobimo.ch/websites/mobimo2014/English/40/reporting.html)

A media and analysts' conference will take place today at 10.00 a.m. Christoph Caviezel (CEO) and Manuel Itten (CFO) will present the 2014 financial results. The webcast of the conference is also available on our website at: www.mobimo.ch.

A telephone conference in English for analysts and media representatives will take place today at 2.00 p.m. Following the presentation of the 2014 financial results, Christoph Caviezel (CEO) and Manuel Itten (CFO) will be available to answer any questions. Registration is not necessary. Dial-in number: +41 44 580 72 18 / Conference ID: 9533973 The accompanying PowerPoint presentation can be viewed on the homepage at www.mobimo.ch


If you have any questions, please contact: 
Mobimo Holding AG
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. The Mobimo Group has an attractive portfolio mix of investment properties offering steady returns and development properties with significant appreciation potential. Investments are made in promising locations, primarily in the economic areas of Zurich and Lausanne/Geneva, together with those of Basel, Lucerne/Zug, Aarau and St. Gallen. With a total property portfolio of around CHF 2.5 billion, Mobimo is one of the leading real estate companies in Switzerland. The pipeline includes development properties for the company's own portfolio with an investment volume of CHF 0.9 billion (as at 31 December 2014).

End of ad hoc announcement

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2015-02-12 News transmitted by EQS Schweiz AG. www.eqs.com - news archive: http://switzerland.eqs.com/de/News

The issuer is responsible for the contents of the release.
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322353 2015-02-12