Mobimo Holding AG / Key word(s): Half Year Results
Ad hoc announcement pursuant to Art. 53 LR
Mobimo reports a pleasing first half-year
Lucerne, 5 August 2022 – Even in a somewhat turbulent environment, Mobimo is able to report a pleasing half-year result. The company's balanced portfolio and attractive development pipeline mean it is well positioned strategically, with operational flexibility thanks to its agile business model and the successful capital increase conducted in April. We can look to the future with optimism.
The operating result (EBIT) came to CHF 81.4 million (prior year: CHF 115.4 million) or CHF 49.8 million (prior year: CHF 95.5 million) excluding revaluation. As a result, profit amounted to CHF 63.5 million (prior year: CHF 83.7 million) including revaluation and CHF 39.1 million (prior year: CHF 67.3 million) excluding revaluation.
The valuation of the Mobimo investment portfolio remained stable, while investment properties under construction in particular contributed to the pleasing CHF 31.5 million net income from revaluation (prior year: CHF 19.9 million). The value of Mobimo's overall portfolio rose to around CHF 3.7 billion (prior year: CHF 3.6 billion).
Higher rental income thanks to strategic purchases
Net rental income as at the reporting date was up 7.4% year on year at CHF 60.0 million (prior year: CHF 55.9 million). The growth in the rental business came from three commercial properties acquired in December 2021 in the cities of Biel, Neuenburg and Freiburg as well as the purchase of the ERNI site in Wangen-Brüttisellen (ZH). Successful marketing also reduced the vacancy rate in our investment portfolio from 4.8% at the end of 2021 to 4.6%.
As expected, the profit contribution from development activities for third parties declined.
Profit on development projects and sale of trading properties, at CHF 3.8 million, was, as anticipated, considerably down from the prior year, when a major project was sold.
Demand for residential properties remains high: in the first half of 2022, all 30 apartments in Meggen (LU) were handed over to their new owners.
In Horgen (ZH), Mobimo is currently completing three apartment buildings with 38 apartments. 29 apartments are already reserved, two years before the first residents move in. Our condominium pipeline includes another twelve projects in German-speaking and French-speaking Switzerland worth CHF 640 million in total. Among them is a new residential property with development potential close to the Lausanne train station. Mobimo is currently developing six projects for institutional developers, representing an investment volume of CHF 370 million.
Increase in value from developments for own portfolio
The focus of development and realisation activities at Mobimo is on projects for its own investment portfolio. In the first half of the year, a revaluation gain of CHF 29.0 million was achieved on the in- vestment properties under construction. 157 rental apartments are under construction in Zurich-Manegg (Allmendstrasse), and in the Friesenberg district in Zurich we are converting a commercial building in our investment portfolio into a residential block with 59 apartments (Im Tiergarten). In the middle of the Quartier du Flon in Lausanne, we are renovating the former warehouses known as "Les Jumeaux". This will create outstanding spaces for retail, dining, offices, and art and culture. Planned target rental income from these three projects is CHF 8.4 million. The building work is on schedule and costs are on budget.
Sustainability Report 2022
At the end of May Mobimo published the annual GRI Sustainability Report, which provides extensive information on sustainability performance in the areas of environmental, social and governance (ESG). Mobimo is now a member of the Madaster network, a global online platform that arranges for circular use of products and materials in the built environment as a way of helping the real estate sector make more effective use of resources.
Solid balance sheet
In early 2022 Mobimo conducted a capital increase by subscription rights to keep it on its growth track and realise development projects. The company raised gross proceeds of roughly CHF 162 million. At 30 June 2022 Mobimo had an equity ratio of 47.8% (prior year: 45.0%). Financial liabilities consist of listed bonds and private placements in the amount of CHF 1,050 million and mortgage- secured bank loans of CHF 627 million.
The average interest rate on financial liabilities in the first half of 2022 was 0.94%, compared with 1.30% in 2021. The average residual maturity of financial liabilities as at the reporting date was 4.7 years and therefore remains within the targeted range. The net loan to value (LTV) was 44.6%. The interest coverage factor stood at 5.8 (31 December 2021: 5.9).
Changes to the Board of Directors and Executive Board
At the Annual General Meeting on 12 April 2022, Mobimo's shareholders voted Stéphane Maye – a recognised expert in major real estate projects, corporate management and sustainable building – onto the Board of Directors. CFO Stefan Hilber left the company in mid-May 2022 for personal reasons. Jörg Brunner, Deputy CFO and long-standing Head of Group Accounting, is heading the finance department on a temporary basis.
Mobimo is not so far sensing any particular turbulence in the market, even after the interest rate hike by the Swiss National Bank and before any further monetary interventions. The only discernible degree of hesitation is on the transaction market. In some ways this reminds us of the pause early in 2020, the year of the pandemic. Just as it could two years ago, Mobimo can rely on the fact that the portfolio and the income it generates are extremely resilient. Thanks to the successful capital increase, the equity ratio has also been strengthened. Strict cost planning is always on the agenda, not least as construction costs are on the rise. The company remains very optimistic about the future performance of the portfolio, the projects and Mobimo in general.
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›› You can find the Half-Year Report here.
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›› Conference call on the 2022 half-year results:
Daniel Ducrey (CEO) and Jörg Brunner (CFO a. i.) will present the results and be available for questions. Once you have registered, you will be able to follow the presentation live (no audio) in your browser at the following link.
The conference can also be followed live as a webcast with audio signal and presentation.
With a broadly diversified real estate portfolio with a total value of around CHF 3.7 billion, Mobimo Holding AG is one of the leading real estate companies in Switzerland. Its portfolio comprises residential and commercial properties as well as development properties for its own investment portfolio and for third parties, which are located in prime locations in German-speaking and French-speaking Switzerland. Its buildings feature balanced use and diligent management. Mobimo’s development projects strengthen its income base and the value of its portfolio. The company also creates investment opportunities for third parties through its development services. Mobimo has around 170 employees.
End of ad hoc announcement