OREANDA-NEWS. Mobimo got off to a good start in financial year 2015. The profit attributable to the shareholders of Mobimo Holding AG including revaluation of CHF 35.6 million (CHF 28.4 million before revaluation) in the first half-year remains at a high level in comparison to previous years. Rental income increased as planned, and the sale of condominiums and the services provided in third-party business are on track. The renewed fall in interest rates at the start of the year triggered high demand for real estate investments, particularly for residential property. This led to the sale of three investment properties, which made a further positive contribution to the excellent half-year results, with the main aim of rein- vesting the proceeds in realising high-yielding properties in our existing development pipeline.

Mixed outlook in the real estate market
The influx of immigrants continues to ensure a high demand for rental apartments in agglomerations, which has a positive impact on our residential investment properties. The discontinuation of the CHF/EUR exchange rate floor has not yet had a direct impact on commercial and retail rents; however, there has been a measure of restraint evident among market participants in terms of new rentals and relettings. Although the Swiss retail sector is being hit by a huge decline in sales, some distinctions have to be made in the market - Mobimo has retail space, mainly in the Le Flon district of Lausanne, which provides excellent potential to continue to develop soundly in the future thanks to an attractive portfolio mix of residential, office, commercial, catering and retail. Interest in condominium ownership continues to be strong, particularly in properties in the mid-price segment. The volatility of shares in the real estate sector - even those of Mobimo - reflects a vague sense of uncertainty that we have not been able to determine in the real estate market. Political activities such as the announced consultation on the tightening of Lex Koller are, however, not helping to increase confidence.

Proven business model in a challenging environment

The Mobimo business model is proving its worth in today's challenging environment. The persistently high demand for residential investment properties has resulted in a renewed downturn in yields. Mobimo has used this as an opportunity to sell three properties: Horgen, Seestrasse 43 - 49 (residential), Horgen, Seestrasse 63 - 69 (residential) and B?lach, Bahnhofstrasse 39 (office/commercial). In the case of persistently strong demand, we will review whether to sell additional selected properties.

Construction and development going according to plan In the first half-year, we completed three residential complexes - Petit Mont-Riond in Lausanne, Sonnenhof in Regensdorf (Zurich) and Gusto in Meilen - and handed the properties over to the respective tenants and buyers. Once the groundwork had been completed, preparations were also able to begin on the civil engineering work on the Labitzke site in Zurich. Planning applications have been submitted for properties including for Site 2 in Aarau, and those for the first projects in the Mattenhof development in Kriens. In April, the foundation was laid for the approximate 90 apartments being built on Site 4 of the planned Aeschbach Quartier Aarau.

Increasing rental income and lower vacancy rate in the investment portfolio Rental income rose from CHF 50.9 million in the first half-year 2014 to CHF 52.6 million and the vacancy rate fell as expected from 5.4 % as at 31 December 2014 to 5.1%. As part of a joint venture, Mobimo has started to offer facility management services for commercial properties in the Zurich area. The main aim is to improve customer retention and identify the needs of tenants at an even earlier stage.

More condominium ownership transfers In the first half-year, most of the transfers in condominium ownership related to the properties in Meilen and in Zurich, Badenerstrasse. This generated income of CHF 17.7 million and was thus above the previous year's level (first half-year 2014: CHF 9.4 million). Property sales also progressed soundly, with our projects in Regensdorf and Aarau - involving 137 condominiums - enjoying a high level of demand. This is despite the constant tightening of mortgage requirements, which is making it difficult for people to buy property, particularly young families.

Changes to the Board of Directors and Management Board

At  the  Annual  General  Meeting  at  the  end  of  March,  Peter Barandun, CEO and Chairman of the Board of Directors of Electrolux (Schweiz) AG, was elected as the successor on the Board of Directors to Paul Rambert, who had reached retirement age. On 1 April 2015, Marc Pointet was appointed to the Mobimo Management Board in his role as Head of Mobimo Suisse Romande. This appointment was just one of many actions that emphasises the importance of Western Switzerland to the Mobimo Group. Solid financing and share performance The Group continues to have extremely solid foundations, with an equity ratio of a comfortable 44 % at mid-year and financing costs at the previous year's level. The Mobimo share reached a new record high of CHF 229.40 at the end of March 2015. Following payment  of  a  dividend  of CHF 9.50, it was trading at CHF 190.50 on 30 June 2015, which is the same level as at the  end  of 2014  (31  December  2014: CHF 199.20).

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 30 June 2015).