Mobimo increases profit in 2010 to CHF 66.0 million

Portfolio quality and residential component increasing as planned
In 2010 Mobimo continued to rigorously pursue its strategy of focusing on more stable rental incomes from the investment business. Net rental income increased 25% to CHF 79.2 million (2009: CHF 63.1 million), with most of this significant rise attributable to the first-time full consolidation of LO Holding. The vacancy rate for investment properties fell from 6.7% to a low 5.1%. In contrast, income from the sale of condominiums (trading property) contracted as expected following the sale of a record number of units in 2009. Fifty-seven apartments were sold and ownership transferred in 2010, generating revenues of CHF 79.1 million. Related profit amounted to CHF 8.4 million (2009: CHF 25.2 million).

Mobimo's impressive development skills resulted in revaluation gains of CHF 16 million in the investment properties under construction category in the 2010 financial year. The increase in rental income led to a further increase of CHF 7.5 million. The fact that the discount rate fell slightly as a result of market conditions contributed CHF 5.6 million to the revaluation gain.

Eleven properties were sold as part of portfolio optimisation in 2010. The CHF 116.7 million generated through these disposals produced a net gain of CHF 5.4 million.

Attractive development projects make further growth possible
As at the beginning of 2011 properties to the value of CHF 500 million were under construction, of which around CHF 260 million are intended for the investment portfolio and CHF 240 million for condominium sales. In addition Mobimo successfully created the basis for further significant organic growth and secured a comprehensive pipeline of new projects. Among the transactions successfully concluded in 2010 was the acquisition of two further attractive sites in Lausanne (Post Office site near the railway station) and Zurich-West (ABC site directly adjoining the Mobimo Tower).

With these acquisitions and the substantial development projects in Lausanne-Flon and Torfeld in Aarau, Mobimo has a well stocked project pipeline with a total investment volume of over CHF 1 billion up to 2015 (CHF 720 million investment portfolio; CHF 330 million condominiums).

Solid financial base
With an equity ratio of 45% and shareholders' equity of CHF 971.3 million, Mobimo's capital base remains solid. With a view to funding its many projects and the related expansion of its property portfolio, in June 2010 the company successfully placed a convertible bond issue, maturing in 2014, worth CHF 175 million with a coupon of 2.125% and a conversion price of CHF 210.37.

The average rate of interest on the financial liabilities fell to 2.9% (2009: 3.1%), while residual maturity remained unchanged at 5.1 years (including convertible bond).

Profitable share
The Mobimo share ended the year at CHF 199.70 at close of trading on 31 December 2010, which represents a premium of 5% to the NAV. Including the nominal value repayment of CHF 9.00, the Mobimo share achieved a total performance of 19% in 2010.

Dividend proposal
The Board of Directors will propose to the General Meeting of 6 April 2011 a further distribution of CHF 9.00 per share. Based on Mobimo's year-end share price as at 31 December 2010, this equates to a dividend yield of 4.5%. On the basis of the corporate tax reform which took effect on 1 January 2011, the amount distributed will be paid out without any deduction of withholding tax and tax-free for private shareholders.

Good but challenging market environment
The Swiss real estate market remains robust and is characterised by strong demand for accessible and attractive office and commercial space as well as premium residential property in good locations. The low level of interest rates and favourable consumer sentiment mean that the desire to own residential property is undiminished. Nonetheless, the office and commercial lettings and re-lettings market remains challenging.

Outlook
At Mobimo, we are confident about the 2011 financial year and are expecting a significant rise in rental income due to the completion of large residential projects such as Beau-Séjour in Lausanne and the apartment complex in Horgen, which has recently been occupied, as well as from the opening of the hotel in the Mobimo Tower. Secondly revenues from the property trading business will increase sharply in the second half of the year, primarily due to the planned transfer of ownership of the apartments in the Mobimo Tower, of which more than half have been sold. The main focus of our activities in 2011 will be the realisation of numerous construction projects, space marketing, condominium sales and the ongoing development of our well stocked project pipeline.

Contact
Mobimo Holding AG Dr. Christoph Caviezel, CEO Manuel Itten, CFO T.: +41 44 397 11 59