Strong operating performance by Mobimo in 2022

Ad hoc announcement pursuant to Art. 53 LR

 

Strong operating performance by Mobimo in 2022

• Net rental income increases by 6.6% at CHF 120.0 million (compared with CHF 112.5 million in the previous year).
• Marketing successes reduce vacancy rate in the investment portfolio to 4.3% (prior year: 4.8%).
• Profit from development projects and the sale of trading properties pleasingly high at CHF 42.4 million.
• Net income from revaluation of CHF 44.3 million, thanks to progress according to schedule in the three major construction projects in Zurich and Lausanne.
   

Lucerne, 10 February 2023 – On many levels, the 2022 financial year was a successful one: Mobimo reported an increase in rental income and a substantial contribution to earnings from development activities for private and institutional investors and for its own portfolio. Mobimo is very well positioned with its portfolio and enters 2023 with confidence.

In 2022, Mobimo achieved a profit of CHF 135.3 million (prior year: CHF 139.4 million). Excluding revaluation, profit was CHF 102.3 million (prior year: CHF 96.3 million). The company recorded EBIT of CHF 181.5 million (prior year: CHF 194.7 million), or CHF 137.2 million excluding revaluation (prior year: CHF 141.3 million). This resulted in earnings per share of CHF 19.02 (prior year: CHF 20.88), or CHF 14.39 excluding revaluation (prior year: CHF 14.43). The total value of the real estate portfolio at the end of 2022 was CHF 3.7 billion (prior year: CHF 3.6 billion). The Board of Directors will propose a dividend of CHF 10.00 per share to the Annual General Meeting on 11 April 2023.

Growth in the rental business

In the core operating business and as a participant in the Swiss capital market, Mobimo continues to position itself for success. This momentum is reflected not least in the renewed growth in rental income: while Mobimo’s rental income in 2021 amounted to CHF 132.2 million, in 2022 it was CHF 139.0 million – an increase of 5.1%. This result was bolstered by purchases of attractive properties at the end of 2021 and the successful re-letting and marketing of new premises. The vacancy rate of the investment portfolio as at 31 December 2022 was 4.3% (prior year: 4.8%).

Intrinsic value of properties maintained

In the context of regular portfolio optimisation, Mobimo sold two investment properties, in St. Erhard (canton of Lucerne) and Dierikon (canton of Lucerne) for a profit of approximately CHF 4.0 million. This sales income may be viewed as proof of the unchanged intrinsic value of Mobimo’s properties. Another contributing factor is the continued pleasing level of net income from revaluation of CHF 44.3 million, primarily attributable to the on-schedule progress of the three investment properties under construction.

The marketing situation of the three major construction projects – Manegg and Im Tiergarten in the city of Zurich and Les Jumeaux in the centre of Lausanne – is extremely bright, even before construction work has been completed. The planned annual target rental income of these three projects is CHF 8.4 million. The Lausen (canton of Basel-Land) residential project, within commuting distance of the city of Basel, will boost rental income by an estimated CHF 1.2 million. Acquired at the end of 2022, it has already received planning permission.

Value-creating development activity

There was a good level of demand for Mobimo real estate offerings from both private and institutional buyers. Purchase contracts have already been notarised for 26 of the 37 residential units in the Aura condominium project in Horgen (canton of Zurich). Substantial contributions to earnings were also made by two projects in the city of Zurich that have been sold to a pension fund: one is already under construction and the other has final planning permission. Profit on development projects and sale of trading properties was thus CHF 42.4 million (prior year: CHF 58.5 million).

Sustainable business activities further reinforced

In 2022, Mobimo consolidated the sustainability measures it has pursued over the past several years into a binding guideline for sustainable business, signed off on the Sustainability Strategy 2030 and set the basis for reporting in accordance with the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD). The stated aim of this is to make its investment portfolio carbon-neutral by 2050. In the year under review, emissions intensity was reduced to 14.6 kg CO₂eq/m² (prior year: 15.2 kg CO₂eq/m²).

Executive committees reinforced

Stéphane Maye was welcomed as a new member of the Board of Directors following his election by the General Meeting of 12 April 2022. His experience ideally complements the Board’s competencies, particularly in the areas of digitalisation and sustainability.

The Mobimo Board of Directors appointed Jörg Brunner as CFO, following many years as Head of Group Accounting and Financial Accounting and then as CFO ad interim. During this time, he has made a significant contribution to the successful development of the company with his extensive practical knowledge of the sector and the capital market.

Outlook

The major issues of the past year will still be with us over the coming months. The interest rate turnaround and inflation will result in changes on the real estate market as in other areas, either indirectly through the general economic environment or directly in the transaction market. Nonetheless, we still view the property market as resilient. Against this backdrop, Mobimo is very well positioned with its portfolio. There is continued strong demand for housing both within city centres and on urban outskirts, whether for rent or purchase. The office and commercial properties in our investment portfolio are also solid income generators: they are of high quality, well located and generally let on a long-term basis at attractive conditions. Even three years after the first wave of the pandemic, changed working patterns have had only a very limited effect on the rental market; they have primarily prompted a trend to more attractive urban planning.

Furthermore, Mobimo is updating its investment guidelines. Mobimo Holding AG’s investment guidelines define the principles and criteria that Group companies must consider when making investments. The current adjustments do not affect the strategic orientation. The current investment guidelines were approved on 3 February 2023 and come into force on 10 February 2023. They can be viewed on the Mobimo website.

Moreover, bolstered by the solid profit in the year under review and the capital increase undertaken in April/May, Mobimo has a fundamentally strong balance sheet, is well positioned and operationally agile. It therefore enters the year 2023 with confidence.

 

Detailed reporting:

›› You can see the 2022 Annual Report here.

›› Analysts and press conference on the 2022 annual results:

Date	10 February 2023
Time	10.00 (CET)

Daniel Ducrey (CEO) and Jörg Brunner (CFO) will present the results (in German). The conference can be followed live via the following link as a webcast with audio and presentation. You can also put questions online (including in English and French). 

 

If you have any questions, please contact:

Contact for analysts and investors:
Nathalie Neumann, Investor Relations Manager
[email protected]
+41 44 397 11 97

Contact for media:
Anthony Welbergen, Corporate Communications Manager
[email protected]
+41 44 397 11 86

www.mobimo.ch

 
About Mobimo:

With a broadly diversified real estate portfolio that has a total value of approximately CHF 3.7 billion, Mobimo Holding AG is one of the leading real estate companies in Switzerland. Its portfolio comprises residential and commercial properties, along with development properties both for the company's own portfolio and for third parties. The properties are in first-class locations in German-speaking and French-speaking Switzerland. The buildings are characterised by balanced diversification and diligent management. Mobimo uses its development projects to strengthen its income base and boost the intrinsic value of its portfolio. The company also creates investment opportunities for third parties through its development services. Mobimo has around 170 employees.