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Mobimo Holding AG

Interim / Quarterly Report Aug 7, 2014

933_10-q_2014-08-07_a4841899-187c-436e-aa32-ccba98d41044.pdf

Interim / Quarterly Report

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Key figures

First half of 2014 3
Letter to shareholders 3
Selected events from the first half of the year 5
Report on the first half of 2014 6
About Mobimo 9
The company 10
Strategy 11
Group structure 12
Milestones 13
Financial report 17
Consolidated interim financial statements
• Consolidated income statement
• Consolidated statement of comprehensive income
• Consolidated balance sheet
• Consolidated cash flow statement
• Consolidated statement of changes in equity
• Notes to the consolidated interim financial statements
Property portfolio details
• Trading property details
• Commercial property details
18
18
19
20
22
23
24
38
38
40
• Residential property details
• Details of investment properties under construction
• Owner-occupied property details
• Co-ownership details
48
50
50
50
Auditor's review report 52
EPRA key performance measures 54
Share and bond information 56
Addresses 58

Mobimo portfolio figures

30.06.2014 31.12.2013
Commercial investment properties CHF million 1,409.6 1,167.0
Residential investment properties CHF million 520.1 410.7
Commercial development properties CHF million 234.6 383.3
Residential development properties CHF million 373.3 410.9
Total properties CHF million 2,537.7 2,371.9
Investment property vacancy rate 5.8% 3.9%
Income from rental of investment properties CHF million 50.5 94.2
Gross yield from investment properties 5.6% 5.7%
Net yield from investment properties 4.5% 4.6%

Rental income by type of use as at 30 June 2014 ⁴ Breakdown of portfolio by economic area ⁶

⁵ Other use mainly comprises car parks and ancillary uses

⁶ Breakdown of fair values/carrying amounts of properties by economic area (overall portfolio)

¹ Including owner-occupied properties in Aarau, Küsnacht and Lausanne

² Including commercial property under construction (investment properties under construction) Horgen, Seestrasse (Grob site) as own-portfolio development

³ Including residential properties under construction (investment properties under construction) Lausanne, Rue Voltaire; Regensdorf,

Schulstrasse/Riedthofstrasse/Feldblumenstrasse and Zurich, Letzigraben as own-portfolio developments

⁴ Breakdown of target rental income by type of use (overall portfolio without trading properties)

Mobimo financial figures 30.06.2014 30.06.2013
Net rental income CHF million 42.4 39.8
Net income from revaluation1 CHF million 7.2 23.6
Profit on sale of trading properties and services CHF million −0.3 5.7
Operating result (EBIT) CHF million 38.8 59.4
Profit CHF million 20.1 41.4
Profit (attributable to the shareholders of Mobimo Holding AG) CHF million 19.7 41.4
Return on equity2 3.3% 7.1%
Profit (attributable to the shareholders of Mobimo Holding AG)
not including revaluation
CHF million 14.6 23.6
Return on equity not including revaluation3 2.4% 4.0%
30.06.2014 31.12.2013
Ø Discount rate for revaluation 4.42% 4.46%
Ø Rate of interest on financial liabilities 2.6% 2.7%
Ø Residual maturity of financial liabilities Years 8.1 7.7
Equity ratio 44% 46%
Net gearing4 99% 84%
Headcount
Ø Headcount (full-time basis) 100.3 90.1
Mobimo share figures 30.06.2014 30.06.2013
No. of shares outstanding5 6,214 983 6,212 330
Earnings per share CHF 3.17 6.66
Earnings per share including operating revaluation, CHF 3.17 4.14
not including market-driven revaluation1
Earnings per share not including revaluation
CHF 2.36 3.81
Distribution6 CHF 9.50 9.00
Nominal value per share CHF 29.00 29.00
NAV per outstanding share after options7 CHF 191.03 193.51
Share price as at 30 June CHF 188.00 192.20
Share capital CHF million 180.3 180.2
Market capitalisation as at 30 June CHF million 1,168.7 1,194.4
Equity as at 30 June CHF million 1,191.4 1,196.3

Shareholders

¹ CHF 7.2 million of the positive revaluation income is based on operating performance. Of this figure, CHF 4.6 million was generated from investment properties under construction, while CHF 2.6 million stems primarily from successful lettings. In addition, CHF 0.03 million comes from market-related adjustments

² Profit in relation to average equity (equity at 1 January plus capital increases/reductions) for the period under review

³ Profit not including revaluation (and attributable deferred tax) in relation to average equity (equity at 1 January plus capital increase/reduction) for the period under review

⁴ Net financial liabilities in relation to equity

⁵ No. of shares issued 6,216,606 less treasury shares 1,623 = no. of outstanding shares 6,214,983

⁶ Distribution of paid-in capital for the 2013 financial year of CHF 9.50 per share in accordance with the resolution passed at the Annual General Meeting of 25 March 2014. Some CHF 270 million was available for distribution of paid-in capital as at 31 December 2013, CHF 59.0 million of which was distributed. This means that approximately CHF 211 million was still available as at 30 June 2014

⁷ Assuming all options granted are exercised. As at 30 June 2013, the effect of the conversion of the convertible bond that was outstanding was also taken into account

MOBIMO ON TRACK

Christoph Caviezel, CEO Georges Theiler, Chairman of the Board of Directors

DEAR SHAREHOLDERS L A D I E S A N D G E N T L E M E N

Mobimo reported half-year results that were in line with its expectations. Our solid revenue pillar, rental income, rose sharply. Income from revaluation and gains from the sale of trading properties, in contrast, were lower than in the prioryear period. We expect the planned profit from sales and project development to materialise in the second half of the year. Mobimo expects to reach its targets for full-year 2014 and be able to continue the attractive distribution policy for our shareholders.

Calm on the real estate market

The approval of the anti-immigration initiative, the current and announced regulatory measures on the part of the Federal Council, FINMA and the National Bank, and the growing number of critical media reports about the real estate market have led to uncertainty among market participants. While the actual implications for a market that was already cooling remain as yet unclear, people's desire for residential property continues unabated, not least due to the low financing costs available today. In this respect Mobimo is very well positioned in the mid-price segment, offering modern products in central locations, and is pleased with the ongoing high level of interest in them. For example, the 244 apartments in the condominium developments in Horgen (Wisental II), Adliswil and in Pfingstweidpark Zurich were completed and sold. The sales process once again involves more time and consulting expenses, however. While patience is required as regards the absorption rate in the luxury segment, demand for rental apartments continues to rise, including at the higher end of the market. The sideways trend in the market for office and commercial space continues unchanged, with retail in particular still feeling the effects of fierce competition. Transaction prices for investment properties remain attractive, however, with many market participants generating high demand. Thanks to its diversified and flexible approach, Mobimo is well positioned with its strategy in this environment.

Marked rise in rental income

Rental income rose by 8% in the first half of 2014, exceeding the CHF 50 million mark for the first time. This trend is set to continue thanks to the rental properties that transferred ownership in the first half of the year. The value of investment properties reached CHF 1,930 million as at the end of the period under review, which corresponds to 76% of the overall portfolio of CHF 2,538 million. In addition to the completion of buildings for our own use, we added a major, fully let office complex in Friesenbergstrasse to our 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, two small properties were sold. Not long after the end of the reporting period, we concluded a long-term rental contract with Nespresso® for a large part of the newly renovated Horizon office building near Lausanne's railway station.

Construction programme advancing as planned

We handed over both the Pépinières multi-functional building in Lausanne and the retirement home and residential development next to the railway station in Affoltern am Albis (Canton of Zurich) to tenants in the first half of the year. The Station 595 project in Badenerstrasse in Zurich – an office building that is being converted into condominium apartments and studios – and the Collina residential development in Zurich-Witikon will be completed in autumn. Construction began on the Letzihof residential development in Zurich at the beginning of the year. Considerable progress was made on the Sonnenhof residential development in Regensdorf (Canton of Zurich) in the first six months of 2014. Further projects are due to start in Aarau and Lucerne in the second half of the year, while preparations (demolition, contaminated site remediation) have begun for the realisation of the major residential property project on the Labitzke site in 2016/2017.

Higher income expected from the sale of trading properties and services in the second half of 2014

The low income from the sale of trading properties and services (CHF 9.4 million compared to CHF 43.0 million in the prior-year period) led to a neutral result in this area in the first half of 2014. A considerable number of transfers of ownership will take place on schedule in the second half of the year. As expected, the exceptionally strong prior-year result will not be repeated in 2014. As at 30 June 2014, notarised purchase agreements for condominiums totalled CHF 105 million. The Investments for Third Parties business area will also make a major contribution to results in the second half of the year.

Streamlining of corporate management

Following the departure of the former Head of Portfolio Management, Peter Grossenbacher, the Board of Directors and Executive Board decided 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.

The headcount increased by 10 FTEs to some 100 in the first half of 2014. This was due to the company's general growth and to the progress made by projects in the pipeline.

Changing of the guard in the Chairman's Office, extensive amendments to the Articles of Association and distribution of an increased dividend

The Annual General Meeting confirmed the appointment of Georges Theiler as Chairman of the Board of Directors, while paying tribute to and bidding farewell to his predecessor Urs Ledermann. Mobimo also took the opportunity to rigorously implement all the new provisions on the remuneration of management and the Board of Directors at an early stage. An increased dividend, up from CHF 9.00 to CHF 9.50, was distributed for the first time.

Successful refinancing with a new bond

The capital market has a lot of confidence in Mobimo. In the first half of 2014, a further fixed-rate bond with a coupon of 1.625% was successfully placed. The bond runs for a sevenyear term. The 2010-14 convertible bond was repaid as at 30 June 2014. The Group remains extremely solidly financed over the long term at good conditions. Mobimo's equity ratio as at the end of the reporting period was 44%. Adjusted for the payment of the CHF 9.50 dividend, our share gained 6% in the first half of 2014.

Outlook

Mobimo will profit from its flexibility and lean organisation in an increasingly regulated environment. Our focus on central locations will also have a positive effect. The rising share of investment properties in our portfolio also provides us with the required growth in rental income. As a result, the Board of Directors and Executive Board continue to believe that the outlook for the Group's future is very positive.

Thank you for the trust you have placed in us.

Chairman of the CEO Board of Directors

Georges Theiler Christoph Caviezel

From fruit processing to a business and residential hub

Between 2011 and 2014, the OVA business and residential hub has been developed on the site of the former fruit processing plant in Affoltern am Albis. The scheme has been designed specifically with a view to achieving ideal integration into the local environment. For example, Yves Netzhammer's art installation "Die Sprache spielt Zeit oder Fabelhaft war der Apfelsaft" [Language From Another Time or Scrumptious Was the Apple Juice] pays tribute to the site's apple-based history.

In addition to cultural aspects, the development also integrates the sustainable use of resources. All apartments are Minergie-certified, and the 2000-Watt Society's aims with regard to the appropriate and sustainable use of resources can be achieved without compromising residents' quality of life at all. Finally, the site's location near the railway station rounds off its strong sustainability profile.

A total of 25,000m² has been made available for industrial and service companies together with Hess Investment AG. Mobimo has also invested in assisted living facilities for the elderly and a retirement home, both operated by Senevita AG. Space has also been found on the former OVA site for 42 rental apartments. This colourful mix of occupants and service providers, combined with numerous areas of shared green space, are helping make OVA a vibrant, flourishing quarter.

Opening of Pépinières in Lausanne's Flon district

Mobimo Suisse Romande is continuing with the development of the Flon district in the heart of Lausanne. The trendy quarter offers its many visitors a wide range of businesses, services, leisure and cultural opportunities.

June 2014 saw the opening of a new building complex in the district. The complex comprises three buildings that together form Pépinières (which in English means a nursery), with a combined area of some 7,600m². The main building is dominated by the imposing façade, which at night is illuminated by energy-saving LEDs. The amorphous structures are based on the plant world and create a fitting link to the verdant roof garden. This oasis of tranquillity is open to the public and serves as a quiet haven away from the otherwise lively atmosphere of the newly opened Pépinières complex.

The three buildings house a disco, a ten-lane bowling alley, a bar and three restaurants, all providing access to the 180m² wooden terrace that looks out over the Esplanade du Flon. Other parts of Pépinières are occupied by the Conservatoire de la Haute École de Musique (HEMU Jazz), with some 1,800m² of classroom and rehearsal space. The complex is also home to the BCV Concert Hall, a multi-functional auditorium with over 250 seats that will host music concerts.

PORTFOLIO GROW TH AND STABLE PERFORMANCE IN THE FIRST HALF OF 2014

Mobimo performed as planned in the first half of 2014. There was a significant increase in rental income, the investment portfolio was expanded further and the basis for further growth in rental income was reinforced. Income from the sale of trading properties and services was markedly down on the prior-year period due to few transfers of ownership in the first half of 2014. The start of the transfer of ownership for condominiums sold is scheduled for the second half of the year, following completion of the construction of the Zurich, Badenerstrasse, and Zurich, im Brächli, projects. As expected, the gain from revaluation was lower in the first half of 2014 following the positive effects of the first-time application of IFRS 13 in the prior-year period. These value gains stemmed mainly from properties under construction and residential properties.

Half-year profit of CHF 20.1 million and EBITDA of CHF 39.6 million

Profit of CHF 20.1 million (first half of 2013: CHF 41.4 million) was generated in the first half of 2014 with a lower gain from revaluation and trading properties than in the previous year. The profit attributable to the shareholders of Mobimo Holding AG (excluding non-controlling interests) totalled CHF 19.7 million (first half of 2013: CHF 41.4 million), or CHF 14.3 million (first half of 2013: CHF 23.6 million) without the gain from revaluation. Not including revaluation, earnings before tax totalled CHF 16.4 million (first half of 2013: CHF 27.6 million). The reported tax rate is lower than in the prior year due mainly to the significantly lower property gains tax in the period under review and income tax for previous years that was lower than expected in some places. The financial result was negatively impacted by an expense of CHF 1.1 million (first half of 2013: gain of CHF 3.4 million) arising from swaps that did not qualify as cash flow hedges due to a further substantial decline in interest rates in the first half of 2014.

In the first half of 2014, Mobimo reported EBITDA of CHF 39.6 million (first half of 2013: CHF 60.2 million) and EBIT of CHF 38.8 million (first half of 2013: CHF 59.4 million). EBITDA not including revaluation totalled CHF 32.4 million (first half of 2013: CHF 36.5 million), and EBIT not including revaluation was CHF 31.5 million (first half of 2013: CHF 35.8 million).

Due to growth in the portfolio and good capacity utilisation in development activities, various teams and departments in the Küsnacht and Lausanne locations were further strengthened in targeted fashion. This resulted in an increase in the average number of FTEs to 100.3 (first half of 2013: 87.4).

Earnings per share of CHF 3.17

In the first half of 2014, Mobimo generated earnings per share of CHF 3.17 (first half of 2013: CHF 6.66) for the shareholders of Mobimo Holding AG. Not including revaluation, earnings per share were CHF 2.36 (first half of 2013: CHF 3.81). Diluted earnings per share reached CHF 3.17 (first half of 2013: CHF 6.25) or, not including revaluation, earnings per share of CHF 2.35 (first half of 2013: CHF 3.73).

The number of shares issued increased to 6, 216, 606 in the first half of 2014 (31 December 2013: 6,214,478) as a result of options exercised.

Net asset value (NAV) per share stood at CHF 191.07 as at 30 June 2014 (31 December 2013: 199.21) after distribution of the dividend of CHF 9.50, and the diluted NAV per share was CHF 191.03 (31 December 2013: CHF 200.01). The Mobimo share price closed at CHF 188.00 on 30 June 2014, which was slightly below the NAV and diluted NAV.

Solidly financed with an equity ratio of 44%

With an equity ratio of 44% as at the reporting date (31 December 2013: 46%), Mobimo continues to have a solid capital base. The average residual term of financial liabilities as at 30 June 2014 was 8.1 years (31 December 2013: 7.7 years), and therefore still in the long-term range. The average interest rate for financial liabilities was reduced further and averaged 2.62% during the first half of 2014, compared with 2.72% as at 31 December 2013. As at the reporting date 30 June 2014, the average interest rate was 2.42%. Mobimo will continue to use the attractive interest rate environment to lock in low interest rates for the long term.

A new CHF 200 million bond with a seven-year term and a coupon of 1.625% was issued on 19 May 2014, and the convertible bond maturing on 30 June 2014 was repaid. During the term of the convertible bond, a total of CHF 6.35 million was converted into 30, 500 shares.

The overall portfolio grew to CHF 2.54 billion, and rental income increased to CHF 50.9 million

The value of the overall portfolio increased to CHF 2 ,538 million as at the end of the first half of the year (31 December 2013: CHF 2, 372 million). The portfolio of investment properties went up by CHF 135 million due to acquisitions and developments in the project pipeline. In the same period, the portfolio of trading properties increased by CHF 31 million, largely due to construction progress.

Revaluation resulted in net income of CHF 7.2 million (first half of 2013: CHF 23.6 million). The prior-year gain contained a positive effect of CHF 13.5 million from the first-time application of IFRS 13. A slightly lower average discount rate of 4.42% (first half of 2013: 4.53%) was applied to real estate valuations as at 30 June 2014.

In the first half of 2014, income from rental properties totalled CHF 50.9 million (first half of 2013: CHF 47.1 million). Based on implementation of the strategy involving step-by-step expansion of the portfolio, this corresponds to a year-on-year increase of 8%. The rise in rental income is mainly the result of the addition of rental income from the following properties under construction that were completed at the end of the prior year or by the end of the first half of 2014:

  • Affoltern am Albis, Alte Obfelderstrasse (rental apartments)
  • Affoltern am Albis, Obstgarten 9, Alte Obfelderstrasse 27/29 (retirement apartments/home)
  • Lausanne, Avenue d'Ouchy 4–6 (administration)
  • Lausanne, Rue des Côtes-de-Montbenon 20–24 (Pépinières)
  • Zurich, Turbinenstrasse 22–32 (City West Site C)

The net rental income of CHF 42.4 million (first half of 2013: CHF 39.8 million) was 7% above the prior-year level, with a cost/income ratio of 17% (first half of 2013: 16%). The net yield generated on investment properties in the year under review was 4.5% (31 December 2013: 4.6%). As at 30 June 2014 the vacancy rate was 5.8%, which as expected was above the prior year's level of 3.9%. On a like-for-like basis, the vacancy rate declined in the period under review by 0.1 percentage points to a very low 3.8% as at 30 June 2014. The 2.0 percentage point increase to 5.8% as at the reporting date resulted from the addition of completed properties with a number of units still to let.

Residential properties transferred for CHF 9.4 million

No new projects involving condominiums were put onto the market and prepared for the transfer of ownership in the first half of 2014. In contrast to the prior-year period, income from the sale of trading properties and services totalling CHF 9.4 million (first half of 2013: CHF 43.0 million) stemmed exclusively from the transfer of ownership of condominium units from existing properties. There were likewise no transfers of ownership in the services for third parties area in the first half of 2014.

This resulted in a reduction in income from the sale of trading properties and services to CHF –0.3 million (first half of 2013: CHF 5.7 million). This slightly negative result resulted from the sales and marketing costs incurred in the period during which projects were under construction that had not yet reached the revenue-producing phase upon transfer of ownership.

The completion of construction and start of transfer of ow nership for the following trading projects are scheduled for the second half of the year:

  • Zurich, Badenerstrasse 595 (Station 595)
  • Zurich, im Brächli 5/7/9 (Collina)

The sale of a project as a service for third parties is also scheduled for the second half of the year.

Four residential properties were sold in the first half of 2014. As at 30 June 2014, notarised sales agreements with a value of around CHF 105 million had been concluded for condominiums, which will generate proceeds when ownership of the residential properties is transferred. The construction of all condominium projects is on schedule, and demand is intact.

Project pipeline of CHF 0.9 billion for the company's own portfolio

The targeted development of residential and commercial properties is driving Mobimo's growth, and the quality of the portfolio is being further optimised with the newly built investment properties. As at 30 June 2014, the following properties from the project pipeline for the company's own portfolio were either under construction or at the completion stage:

  • Horgen, Seestrasse 93
  • Lausanne, Rue Voltaire 2–12
  • Regensdorf, Schulstrasse 95/101/107/115; Riedthofstrasse 55/63; Feldblumenstrasse 44
  • Zurich, Letzigraben 134–136

The investment volume of the properties under construction totals around CHF 210 million. Furthermore, the following projects for the company's own investment portfolio with a total investment volume of CHF 710 million are being planned:

  • Aarau, Aeschbach-Quartier 2
  • Kriens, Mattenhof site
  • Lausanne, Rue des Côtes-de-Montbenon (Les Garages)
  • Lausanne, Rue de Genève 19/21 (Jumeaux)
  • Lausanne, Place de l'Europe 8
  • Lausanne, Avenue d'Ouchy 4–6
  • Lausanne, Rue de la Vigie 3 (Flon Ville)
  • Zurich, Albulastrasse;Hohlstrasse (Labitzke site)

Properties under construction and being planned for the company's own investment portfolio will together create potential rental income of around CHF 50 million a year.

As at 30 June 2014, the project portfolio included the following two projects in the new Investments for Third Parties business area:

  • Dübendorf, Sonnentalstrasse 10
  • Langenthal, Kühlhausstrasse (3M headquarters)

On these two sites, a residential construction project and a residential and commercial property will be realised in conjunction with third-party investors.

Manuel Itten CFO

A B O U T M O B I M O

Investment property Rental and retirement apartments, retirement centre

Affoltern am Albis, "Obstgarten" OVA site

Mobimo– a leading Swiss real estate company

Mobimo Holding AG was established in Lucerne in 1999 and has been listed on the SIX Swiss Exchange since 2005. Today, Mobimo is one of the leading real estate companies in Switzerland. Following the merger with LO Holding Lausanne-Ouchy SA at the end of 2009, it now ranks as one of the biggest market players in both German-speaking and French-speaking Switzerland.

Business model combines stable returns with growth

With a solid financing base and equity of not less than 40% of total assets, Mobimo plans, builds and maintains yield-oriented investment properties and realises development properties offering attractive potential gains.

Based on its three core competencies – buying/selling, development and portfolio management – Mobimo has successfully built up a premium investment portfolio comprising commercial, industrial and residential properties that generate broad-based rental income with steady returns. A well-stocked project pipeline provides a steady supply of new investment properties to be held in the portfolio or sold to third-party investors, along with attractive condominium apartments which, when sold, will generate capital gains.

A premium portfolio

As at 30 June 2014, the real estate portfolio comprised 126 properties with a value of approximately CHF 2,538 million, which breaks down into CHF 1,930 million for investment properties and CHF 608 million for development properties. The portfolio mix is optimised on an ongoing basis, and the residential component is gradually being increased through the planning and construction of investment properties for the company's own property portfolio.

Secure income

Around three-quarters of the property portfolio is invested in investment properties, which are broadly diversified in terms of both location and use. The rentable area of 550,000m² generated potential rental income of some CHF 118 million p.a. as at 30 June 2014. This means that a high proportion of revenues is stable and predictable. The company's own portfolio management team ensures close proximity to the market, and this enables Mobimo to react swiftly to any changes in the market.

Development properties with appreciation potential

Mobimo is currently planning and realising investment properties (CHF 920 million) and condominium properties (CHF 410 million) with a total investment volume of around CHF 1,330 million.

In addition to these developments, Mobimo also offers development services for third parties up to and including turn-key real estate investments for institutional and private investors. Area, site and project developments are turned into reality in a way which meets the needs of the market and is sustainable. Cooperation with partners takes a number of different forms and is structured in line with requirements and depending on the stage reached.

Attractive dividend yield

Mobimo has consistently generated a high dividend. Since the initial public offering in 2005, CHF 9.00 has been paid out to Mobimo shareholders each year in the form of a withholding tax-exempt nominal value repayment or capital repayment. The distribution was increased to CHF 9.50 for the 2013 financial year. The average annual dividend yield (nominal value repayment or capital repayment as a proportion of the corresponding year-end share price) over the past five years has been around 4.7%.

Mobimo's business model sets it apart from its competitors.

High-quality growth

Mobimo strives to grow its real estate portfolio on a stepby-step basis. This growth takes place primarily through the construction of investment properties for the company's own portfolio as well as through the acquisition of individual properties or portfolios. Growth may also be achieved via company takeovers.

The decision to grow is taken when the elements of price, location and future prospects come together in such a way as to create value for shareholders. Mobimo invests in promising locations in Switzerland. We see these primarily as the economic areas of Zurich and Lausanne/Geneva, together with those of Basel, Lucerne/Zug, Aarau and St. Gallen. Investments are only made in sustainably good locations.

Good portfolio mix

Over the medium term, residential use, office use and other commercial uses each account for approximately 30% of the investment portfolio.

Active portfolio management

The real estate portfolio is optimised and adjusted on an ongoing basis. Value is rigorously maintained and increased by cultivating relationships with lessees, ensuring a high level of rental occupancy, optimising costs and implementing effective marketing strategies.

Creating value through development

Real estate development focuses on the following areas:

  • the development and construction of new investment properties for our own portfolio
  • the continued development and optimisation of our own real estate holdings
  • the development, construction and sale of condominium properties
  • development and investments for third parties

Sustainability

Quality of life is reflected in the design of our living, leisure and working spaces. In addition to economic considerations, Mobimo also incorporates environmental and sociocultural factors into its activities. This creates added value for the users of Mobimo properties and for shareholders.

Solid financing

Mobimo can borrow on both a short and long-term basis. Equity should represent at least 40% of total assets.

A profitable investment

The Mobimo share regularly generates high dividends. It is characterised by steady value growth and an attractive payout ratio.

Mobimo Holding AG
Share capital: CHF 180.3 million
Wilhelm Hansen, Paul Rambert, Peter Schaub
Statutory auditor: KPMG AG
BoD: Georges Theiler, Daniel Crausaz, Brian Fischer, Bernard Guillelmon,
Executive Board: Christoph Caviezel, Manuel Itten, Andreas Hämmerli, Thomas Stauber
Mobimo Management AG
Share capital: CHF 0.1 million
Holding: 100%
JJM Participations SA LO Holding
Lausanne-Ouchy SA
Immobilien
Invest Holding AG
Share capital: CHF 6 million
Holding: 100%
Share capital: CHF 12 million
Holding: 100%
Share capital: CHF 0.15 million
Holding: 75%
Mobimo AG LO Immeubles SA Petit Mont-Riond SA
Share capital: CHF 72 million
Holding: 100%
Share capital: CHF 2 million
Holding: 100%
Share capital: CHF 0.05 million
Holding: 75%
FM Service &
Dienstleistungs AG¹
O4Real AG
Share capital: CHF 0.1 million
Holding: 50%
Share capital: CHF 1 million
Holding: 100%
Parking du Centre SA
Share capital: CHF 6 million
Holding: 50%

Flonplex SA

Share capital: CHF 2 million Holding: 40%

1997

On 15 October 1997, Alfred Meili, together with private banker Karl Reichmuth and other investors, founds Mobimo AG, with its registered office in Lucerne. The company's share capital is CHF 36 million, on top of which another CHF 36 million is provided in the form of shareholder loans.

1999

Mobimo Holding AG, Lucerne, is founded on 27 December 1999. Its share capital is CHF 73 million.

2000

Under a private placement in October 2000, Mobimo Holding AG's share capital is increased to CHF 181 million.

2005

On 23 June 2005, Mobimo Holding AG is listed on the SIX Swiss Exchange. The issue volume is CHF 112 million.

2006

On 8 June 2006, Mobimo conducts a capital increase of CHF 143 million. At the end of June 2006, its share capital stands at CHF 225 million and its shareholders' equity at CHF 596 million.

2007

A further capital increase of CHF 149 million takes place on 4 June 2007. As at 30 June 2007, Mobimo's shareholders' equity is CHF 757 million.

2008

The newly formed Board of Directors, headed by Chairman Urs Ledermann, and the Executive Board, headed by CEO Christoph Caviezel, review the company's strategy and direction.

2009

Mobimo Holding AG's exchange offer for LO Holding Lausanne-Ouchy SA is successfully completed on 9 November 2009. The share capital is increased by CHF 27 million in order to carry out the conversion

2010

In June 2014, Mobimo Holding AG successfully completes a CHF 175 million convertible bond issue maturing on 30 June 2014.

2011

A further capital increase of approximately CHF 193 million is conducted on 6 December 2011. Mobimo Holding AG issues 1,028,350 new registered shares, which are traded on the SIX Swiss Exchange for the first time on 7 December 2011.

2013

Georges Theiler, a long-standing member of the Board of Directors, is appointed successor to Urs Ledermann and assumes the role of Chairman of Mobimo Holding AG in September.

On 29 October 2013, Mobimo Holding AG issues a CHF 165 million fixed-rate bond with a coupon of 1.5% and a fiveyear term.

2014

On 19 May 2014, Mobimo Holding AG issues a CHF 200 million fixed-rate bond with a coupon of 1.625% and a sevenyear term.

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDAT ED INCOME S TAT EMEN T

All amounts in TCHF
Note
First half of 2014 First half of 2013
Income from rental of properties
5
50,882 47,125
Income from sale of trading properties and services
6
9,446 42,954
Other income 269 292
Revenue 60,597 90,370
Gains from revaluation of investment properties
13
17,627 35,059
Losses on revaluation of investment properties
13
–10,385 –11,418
Net income from revaluation 7,242 23,642
Profit on sale of investment properties
13
2,296 1,954
Direct expenses for rented properties
5
–8,484 –7,353
Direct expenses from sale of trading properties and services
6
–9,700 –37,221
Direct operating expenses –18,184 –44,574
Capitalised own-account services 3,250 3,430
Personnel expenses –10,313 –9,573
Operating expenses –4,110 –3,724
Administrative expenses –1,159 –1,353
Earnings before interest, tax, depreciation and amortisation (EBITDA) 39,620 60,172
Depreciation and amortisation –861 –724
Earnings before interest and tax (EBIT) 38,758 59,448
Share of profit of equity-accounted investees 808 852
Financial income 205 3,554
Financial expense –16,132 –12,573
Financial result
7
–15,926 –9,019
Earnings before tax (EBT) 23,640 51,281
Tax expense
8
–3,527 –9,929
Profit 20,113 41,352
Of which attributable to the shareholders of Mobimo Holding AG 19,703 41,362
Of which attributable to non-controlling interests 410 –10
EBITDA not including revaluation 32,378 36,530
Operating result (EBIT) not including revaluation 31,516 35,806
Earnings before tax (EBT) not including revaluation 16,398 27,639
Earnings per share in CHF
9
3.17 6.66
Diluted earnings per share in CHF
9
3.17 6.25

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

All amounts in TCHF
Note
First half of 2014 First half of 2013
Profit 20,113 41,352
Items that may be reclassified subsequently to income statement
– Loss/gain on financial instruments for hedge accounting
14/15
–10,699 13,410
– Transfer to income statement –28 –27
– Tax effects 2,384 –3,047
Items that will not be reclassified to income statement
– Remeasurement of the employee benefit obligation
10
–1,736 956
– Tax effects 339 –181
Other comprehensive income/loss –9,741 11,111
Of which attributable to the shareholders of Mobimo Holding AG –9,741 11,111
Of which attributable to non-controlling interests 0 0
Total comprehensive income 10,372 52,463
Of which attributable to the shareholders of Mobimo Holding AG 9,962 52,474
Of which attributable to non-controlling interests 410 –10

CONSOLIDATED BALANCE SHEET

All amounts in TCHF
Note
30.06.2014 31.12.2013
Assets
Current assets
Cash 85,069 203,458
Trade receivables 7,143 3,851
Other receivables
11
34,821 88,442
Trading properties
12
283,580 252,553
Accrued income and prepaid expenses 4,675 3,438
Total current assets 415,289 551,741
Non-current assets
Investment properties
– Commercial properties
13
1,393,164 1,150,158
– Residential properties
13
520,140 410,747
– Development properties
13
204,233 214,130
– Investment properties under construction
13
120,070 327,500
Property, plant and equipment
– Owner-occupied properties 16,469 16,797
– Other property, plant and equipment 1,718 1,421
Intangible assets 5,242 4,884
Investments in associates
17
23,402 23,145
Financial assets 1,870 1,910
Derivative financial instruments
14/15
0 3,466
Deferred tax assets 3,288 2,566
Total non-current assets 2,289,595 2,156,724
Total assets 2,704,884 2,708,466
All amounts in TCHF
Note
30.06.2014 31.12.2013
Equity and liabilities
Liabilities
Current liabilities
Current financial liabilities
14
129,075 286,612
Trade payables 16,743 12,563
Current tax liabilities 41,992 41,420
Derivative financial instruments
14/15
34 413
Other payables 1,035 2,183
Advance payments from buyers 20,603 16,468
Accrued expenses and deferred income 12,853 13,995
Total current liabilities 222,335 373,655
Non-current liabilities
Non-current financial liabilities
14
1,141,046 954,508
Employee benefit obligation
10
3,502 1,677
Derivative financial instruments
14/15
17,645 8,927
Deferred tax liabilities 128,956 128,631
Total non-current liabilities 1,291,148 1,093,742
Total liabilities 1,513,484 1,467,397
Equity
16
Share capital 180,282 180,220
Treasury shares –315 –470
Capital reserves 328,615 387,754
Retained earnings 678,918 670,074
Total equity attributable to the shareholders of Mobimo Holding AG 1,187,499 1,237,577
Non-controlling interests 3,901 3,492
Total equity 1,191,401 1,241,069
Total equity and liabilities 2,704,884 2,708,466

CONSOLIDATED CASH FLOW STATEMENT

All amounts in TCHF
Note
First half of 2014 First half of 2013
Earnings before tax 23,640 51,281
Net gains from revaluation of investment properties 13 –7,242 –23,642
Share-based payments 669 431
Depreciation on property, plant and equipment and amortisation of lease incentives 1,125 1,012
Amortisation of intangible assets 154 107
Profit on disposal of investment properties 13 –2,296 –1,954
Share of profit of associates –808 –852
Financial result 15,926 9,019
Changes
Trade receivables –3,293 –3,093
Trading properties –30,055 –1,171
Other receivables and accrued income and prepaid expenses 11 54,970 –2,830
Employee benefit obligation 88 62
Trade payables 1,292 2,311
Advance payments from buyers 4,135 4,851
Other liabilities and accrued expenses and deferred income –2,462 –905
Income tax paid –3,277 –2,653
Net cash from operating activities 52,565 31,975
Investment in joint venture 17 –50 0
Acquisition of investment properties –145,561 –63,831
Acquisition of property, plant and equipment –676 –375
Acquisition of intangible assets –512 –724
Disposal of financial assets 25 0
Disposal of investment properties less selling costs 13 22,593 14,000
Dividends received 670 1,170
Interest received 65 41
Net cash used in investing activities –123,445 –49,719
Proceeds from financial liabilities 14 198,967 71,500
Repayment of financial liabilities 14 –170,774 –6,895
Net cash from capital increases 16 62 161
Distribution of capital contribution reserves –59,029 –55,886
Acquisition of treasury shares –1,742 0
Interest paid –14,993 –12,690
Net cash used in financing activities –47,509 –3,809
Decrease in cash –118,389 –21,554
Cash at beginning of reporting period 203,458 97,645
Cash at end of reporting period 85,069 76,091

CONSOLIDATED STATEMENT OF CHANGES IN EQUIT Y

Non
Other Total Equity attributable to con
Note Share Treasury Capital Hedging retained retained the shareholders of trolling Total
All amounts in TCHF capital shares reserves reserve earnings earnings Mobimo Holding AG interests equity
As at 1 January 2013 180,058 –1,910 443,656 –10,646 584,493 573,847 1,195,652 3,466 1,199,118
Profit 1 January –
30 June 2013 41,362 41,362 41,362 –10 41,352
Cash flow hedges: 14
– Change in fair value 13,410 13,410 13,410 13,410
– Transfer to income
statement –27 –27 –27 –27
Tax effects –3,047 –3,047 –3,047 –3,047
Employee benefit obligation:
– Remeasurement 956 956 956 956
– Tax effects –181 –181 –181 –181
Other comprehensive
income/loss 0 0 0 10,336 776 11,111 11,111 0 11,111
Total comprehensive
income 0 0 0 10,336 42,138 52,474 52,474 –10 52,463
Distribution of capital
contribution reserves –55,886 –55,886 –55,886
Capital increase 161 161 161
Share-based payments:
– Board of Directors and
management 1,440 –17 –991 –991 431 431
As at 30 June 2013 180,220 –470 387,754 –311 625,640 625,329 1,192,833 3,456 1,196,288
As at 1 January 2014 180,220 –470 387,754 2,496 667,578 670,074 1,237,577 3,492 1,241,069
Profit 1 January –
30 June 2014 19,703 19,703 19,703 410 20,113
Cash flow hedges: 14
– Change in fair value –10,699 –10,699 –10,699 –10,699
– Transfer to income
statement –28 –28 –28 –28
Tax effects 2,384 2,384 2,384 2,384
Employee benefit obligation:
– Remeasurement 10 –1,736 –1,736 –1,736 –1,736
– Tax effects 339 339 339 339
Other comprehensive
income/loss 0 0 0 –8,343 –1,398 –9,741 –9,741 0 –9,741
Total comprehensive
income 0 0 0 –8,343 18,306 9,962 9,962 410 10,372
Distribution of capital
contribution reserves –59,029 –59,029 –59,029
Capital increase 62 62 62
Share-based payments:
– Board of Directors and
management 1,897 –110 –1,118 –1,118 669 669
Acquisition of treasury shares –1,742 –1,742 –1,742

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. Business activities

The Mobimo Group is a real estate company which operates exclusively in Switzerland. Its business activities consist of the long-term holding and management of commercial, industrial and residential properties, the construction and selling of owner-occupied residential properties and the development of commercial and residential properties.

The parent company is Mobimo Holding AG, a public limited company under Swiss law, headquartered in Lucerne and listed on the SIX Swiss Exchange.

2. Group accounting policies 2.1 General information

The consolidated interim financial statements of the Mobimo Group for the first half of 2014 have been produced in accordance with International Accounting Standard 34 (IAS 34) on interim financial reporting and comply with Article 17 of the SIX Swiss Exchange Directive on Financial Reporting. The consolidated interim financial statements as at 30 June 2014 do not contain all information and disclosures required for annual financial reporting and should therefore be read in conjunction with the consolidated financial statements as at 31 December 2013.

All amounts contained in the consolidated interim financial statements are shown in thousands of Swiss francs (TCHF), unless stated otherwise. The sums and totals of the individual positions may be larger or smaller than 100% due to rounding.

In the year under review, development properties have for the first time been shown separately in the balance sheet (after having previously been included with commercial properties), and the presentation of the comparison period has been duly adjusted.

The accounting principles applied in the consolidated interim statements correspond to the Group accounting principles set out in the consolidated financial statements for 2013, with the exception of the new standards and interpretations applicable with effect from 1 January 2014.

2.2 Use of estimates and assumptions and the application of judgement

In preparing the consolidated interim financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and contingent assets and liabilities as at the reporting date. The main estimates and assumptions used in the measurement of assets and liabilities affect the market values of investment properties, the estimate of constructions costs of trading properties and income tax. This is unchanged from the consolidated financial statements as at 31 December 2013.

2.3 New standards/interpretations applied

With effect from 1 January 2014, Mobimo now uses the following newly applicable or amended standards and interpretations:

Amendments to IAS 32 –Changes to the rules regarding offsetting of financial assets and financial liabilities

Amendments to IAS 36 – Recoverable Amount Disclosures for Non-Financial Assets

Amendments to IAS 39 –Novations of Derivatives and Continuation of Hedge Accounting

The amendments had no effect on the interim financial statements.

2.4 Standards/interpretations published but not yet applied

The following new and revised standards and interpretations have been approved but will only enter into force at a later date and were not applied in advance in these interim financial statements.

Planned application
Entry into force by Mobimo (financial year)
Employee Contributions * 1 July 2014 2015 financial year
Annual Improvements to IFRSs 2010 − 2012 Cycle * 1 July 2014 2015 financial year
Annual Improvements to IFRSs 2011 − 2013 Cycle * 1 July 2014 2015 financial year
Accounting for Acquisitions of Interests in Joint * 1 January 2016 2016 financial year
Operations
Clarification of Acceptable Methods of Depreciation * 1 January 2016 2016 financial year
and Amortisation
Revenue from Contracts with Customers ** 1 January 2017 2017 financial year
Financial Instruments ** 1 January 2018 2018 financial year

* No impact or no significant impact expected on Mobimo's consolidated financial statements

** The impact on Mobimo's consolidated annual financial statements cannot yet be determined to a sufficiently reliable degree

3. Segment reporting

Segment information for the first half of 2014

Portfolio
All amounts in TCHF Management Development Total segments Reconciliation Total
Income from rental of properties 46,658 4,223 50,882 50,882
Net income from revaluation 5,064 2,178 7,242 7,242
Income from sale of trading properties and services 9,446 9,446 9,446
Profit on disposal of investment properties 2,034 262 2,296 2,296
Other income 269 0 269 269
Total segment income 54,025 16,110 70,135 70,135
Segment result EBIT1 42,134 –2,760 39,374 –615 38,758
Share of profit of equity-accounted investees 808
Financial result –15,926
Earnings before tax (EBT) 23,640
Tax –3,527
Profit 20,113
Trading properties 283,580 283,580 283,580
Investment properties 1,913,304 204,233 2,117,537 2,117,537
Owner-occupied properties 16,469 16,469 16,469
Investment properties under construction 120,070 120,070 120,070
Trade receivables 5,221 1,923 7,143 7,143
Total segment assets 1,934,993 609,806 2,544,799 2,544,799
Non-attributed assets 160,085 160,085
Total assets 2,704,884
Depreciation and amortisation –477 –384 –861 –861
Investments in non-current assets 113,671 35,056 148,727 1,188 149,915

¹ EBIT reconciliation represents compensation for the Board of Directors totalling TCHF 615

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Segment information for the first half of 2013

Portfolio
All amounts in TCHF Management Development Total segments Reconciliation Total
Income from rental of properties 42,186 4,938 47,125 47,125
Net income from revaluation 19,906 3,735 23,642 23,642
Income from sale of trading properties and services 42,954 42,954 42,954
Profit on disposal of investment properties 0 1,954 1,954 1,954
Other income 292 0 292 292
Total segment income 62,385 53,582 115,966 115,966
Segment result EBIT1 52,319 7,870 60,189 –741 59,448
Share of profit of equity-accounted investees 852
Financial result –9,019
Earnings before tax (EBT) 51,281
Tax –9,929
Profit 41,352
Trading properties 350,889 350,889 350,889
Investment properties 1,602,089 191,153 1,793,242 1,793,242
Owner-occupied properties 16,379 16,379 16,379
Investment properties under construction 281,240 281,240 281,240
Trade receivables 5,691 1,421 7,112 7,112
Total segment assets 1,624,159 824,703 2,448,862 2,448,862
Non-attributed assets 139,176 139,176
Total assets 2,588,038
Depreciation and amortisation –342 –381 –724 –724
Investments in non-current assets 25,387 45,873 71,260 1,099 72,359

¹ EBIT reconciliation represents compensation for the Board of Directors totalling TCHF 741

4. Seasonal business

Some of Mobimo's activities do not generate steady income over the course of the year. This applies particularly to income from the sale of property for owner occupation. Higher income may be generated in the first or second half of the year depending on the number of properties conveyed or the volume of projects.

5. Net rental income

Rental income can be broken down across the various categories of property as follows:

30.06.2014 30.06.2013
Commercial properties 39,227 36,904
Residential properties 11,311 9,725
Income from rental of investment properties 50,538 46,629
Trading properties1 344 496
Total income from rental of properties 50,882 47,125
Commercial properties 6,919 5,786
Losses on receivables: commercial properties 46 218
Residential properties 1,352 1,180
Losses on receivables: residential properties 4 15
Investment property expense 8,321 7,200
Rented trading properties 129 97
Losses on receivables from trading properties 34 56
Net income from revaluation 8,484 7,353
Net rental income 42,398 39,771

The future rental income set out below will be generated from non-cancellable rental agreements for investment properties:

Commercial Residential
30 June 2014 properties properties Total
Rental income within 1 year 74,396 1,468 75,864
Rental income within 2 to 5 years 207,992 3,527 211,519
Rental income in over 5 years 223,941 2,298 226,239
Total future rental income from non-cancellable rental agreements 506,329 7,293 513,622

¹ Rental income from development properties

C O N S O L I D A T E D I N T E R I M F I N A N C I A L S T A T E M E N T S

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Commercial Residential
31 December 2013 properties properties Total
Rental income within 1 year 62,373 1,008 63,381
Rental income within 2 to 5 years 169,494 2,262 171,756
Rental income in over 5 years 104,836 2,758 107,595
Total future rental income from non-cancellable rental agreements 336,703 6,029 342,732

Residual term of fixed-term rental agreements (as at 30 June 2014)

The five biggest tenants generate the following shares of rental income:

30.06.2014 31.12.2013
Name of tenant share in% share in%
SV (Schweiz) AG 5.1 6.8
Swisscom Group 5.1 6.5
Coop 3.0 4.0
Senevita AG 2.9 n/a
MIGROS 2.7 3.5

Shares of the five biggest tenants (as at 30 June 2014)

  • Total other (incl. vacant)

6. Profit on sale of trading properties and services

Income can be broken down as follows:

30.06.2014 30.06.2013
Proceeds from sale of trading properties and services 9,446 42,954
Construction costs of trading properties sold and expenses from services 9,700 37,221
Profit on sale of trading properties and services –254 5,733

The negative income is due to sales and marketing costs included in expenses from trading properties and services sold that relate to projects for which there have not yet been any income-generating transfers of ownership.

Further details of the apartments sold can be found in Note 12 Trading properties.

7. Financial result

The lower financial result relative to the first half of 2013 primarily resulted from the negative development in value of interest-rate swaps not classified as cash flow hedges of CHF –1.1 million (first half of 2013: CHF +3.4 million), higher interest expense as a result of higher loans and the lower capitalisation of interest accumulated during construction of CHF 2.1 million (first half of 2013: CHF 2.9 million). Further details can be found in Note 14 Financial liabilities.

8. Tax expense

The reported tax rate is lower than in the prior year due mainly to the significantly smaller property gains tax in the period under review and a positive effect from the actual tax expense from previous years.

9. Earnings per share/net asset value

Earnings per share are calculated by dividing the Group result attributable to the shareholders of Mobimo Holding AG by the weighted average of the number of shares outstanding during the reporting period. Diluted earnings per share additionally take account of any shares arising from the exercise of options and the conversion of convertible bonds into shares.

The net asset value (NAV) was CHF 1,187.5 million (31 December 2013: CHF 1,237.6 million) and the diluted NAV was CHF 1,187.5 million (31 December 2013: CHF 1,405.4 million), while the NAV per share came to CHF 191.07 (31 December 2013: CHF 199.21) and the diluted NAV to CHF 191.03 (31 December 2013: CHF 200.01). The NAV corresponds to the equity attributable to the Mobimo shareholders in accordance with IFRS, while for the purposes of the diluted NAV, it is assumed that all options granted are exercised. The effect of the conversion of the convertible bond that was outstanding during the comparison period has also been taken into account.

10. Remeasurement of the employee benefit obligation

The rise in the employee benefit obligation is due to the lowering of the discount rate to 1.9% (31 December 2013: 2.5%). The corresponding effect of CHF –1.7 million has been taken into account in other comprehensive income (OCI).

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

11. Other receivables

The transfer of ownership in the first half of 2014 of Zurich, Friesenbergstrasse 75; Im Tiergarten 7 enabled the release of collateral in favour of cash pledged to banks as at 31 December 2013 in the amount of CHF 58.1 million, which was the reason for the decrease in other receivables compared with 31 December 2013.

12. Trading properties

30.06.2014 31.12.2013
Land/development projects 99,752 89,317
Properties under construction 103,893 75,137
Completed real estate and development properties 79,935 88,099
Total trading properties 283,580 252,553

The amount of land increased in the first half of the year mainly due to the reclassification of the Merlischachen development project away from Advance payments. A notarised purchase agreement was concluded for the purchase of the land in 2013, after which a construction project was developed and a further payment made to the vendor following the submission of an application for a construction permit. The transfer of ownership and payment of the residual purchase price will proceed following the issue of the building permit.

Following the issue of the building permit and construction approval, the Langenthal, Kühlstrasse property was reclassified from development projects to properties under construction.

Two apartments in the completed properties in Horgen, Stockerstrasse 40 – 42 (Wisental II) one apartment in Zurich, Turbinenstrasse (Mobimo Tower) and the last of the 63 apartments in Zurich, Turbinenstrasse Site A were sold.

13. Investment properties

Investment
properties
Commercial Residential Development under 2014
First half of 2014 properties properties properties construction total
Market value as at 1 January 2014 1,150,158 410,747 214,130 327,500 2,102,535
Acquisition costs
As at 1 January 979,141 330,855 222,322 313,476 1,845,793
Increases from purchases 107,302 0 0 0 107,302
Increases from investments 3,499 2,311 5,887 27,790 39,487
Capitalisation of borrowing costs 0 0 288 790 1,078
Capitalisation/amortisation of lease incentives –396 540 0 298 442
Disposals –11,593 –4,593 0 0 –16,186
Transfers between categories 140,299 101,717 –15,151 –226,865 0
Cumulative acquisition costs as at 30 June 2014 1,218,251 430,830 213,346 115,490 1,977,917
Revaluation
Total as at 1 January
171,017 79,892 –8,191 14,024 256,742
Gains on valuations1 3,611 9,531 40 4,445 17,627
Losses on valuations1 –7,959 –118 –764 –1,544 –10,385
Disposals2 –207 –4,087 0 0 –4,294
Transfers between categories 8,451 4,093 –199 –12,345 0
Cumulative revaluation as at 30 June 2014 174,913 89,310 –9,114 4,580 259,690
Market value as at 30 June 2014 1,393,164 520,140 204,233 120,070 2,237,607

The following investment properties were acquired in the first half of 2014:

Zurich, Friesenbergstrasse 75; Im Tiergarten 7 Commercial property
Zurich, Treichlerstrasse 10; Dolderstrasse 16 Commercial property

The following properties were sold:

Kreuzlingen, Hauptstrasse 37 Commercial property
Zurich, Klingenstrasse 34; Konradstrasse 68 Residential property

A profit of some CHF 2.3 million was generated from the sale of the two properties for a total price of CHF 22.6 million and from the reversal of a cost accrual of CHF 0.3 million no longer required for a property sold in the prior year.

¹ Total corresponds to "Gains from revaluation of investment properties" or "Losses on revaluation of investment properties" in the income statement and represents the unrealised gains/losses on properties that were in the investment portfolio as at the end of the period under review

² Included as a realised gain in "Profit on disposal of investment properties" in the income statement

C O N S O L I D A T E D I N T E R I M F I N A N C I A L S T A T E M E N T S

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The following properties are shown under Transfers:

from to
Affoltern am Albis, Alte Obfelderstrasse 31 – 35 Investment properties under construction Residential properties
Affoltern am Albis, Obstgartenstr. 9; Alte Obfelderstr. 27/29 Investment properties under construction Commercial properties
Lausanne, Avenue d'Ouchy 4 – 6 (Administration) Investment properties under construction Commercial properties
Lausanne, Rue des Côtes-de-Montbenon 20 –24 ( Les Pépinères) Investment properties under construction Commercial properties
Zurich, Letzigraben 134 – 136 Commercial development properties Investment properties under construction
Zurich, Turbinenstrasse 22 – 32 Investment properties under construction Residential properties

The investment properties were valued by the independent real estate experts Wüest & Partner AG using the DCF method. For the DCF valuations as at 30 June 2014, the discount rates applied averaged 4.42% (as at 31 December 2013: 4.46%), within a range from 3.6% to 5.6% (as at 31 December 2013: 3.8% to 5.6%).

As at 30 June 2014, capital commitments for future construction investments in investment properties totalled CHF 64.3 million (31 December 2013: CHF 57.2 million). These commitments relate to the agreements concluded with general contractors for the investment properties under construction.

14. Financial liabilities

Total financial liabilities 1,270,121 1,241,120
Total non-current financial liabilities 1,141,046 954,508
Bonds 362,266 164,186
Mortgages 778,780 790,322
Total current financial liabilities 129,075 286,612
Convertible bond 0 167,666
Mortgages due for extension or repayment within 12 months1 125,223 114,937
Fixed-rate mortgage amortisation due within 12 months 3,852 4,010
30.06.2014 31.12.2013

All financial liabilities are denominated in Swiss francs. The mortgages that are due for repayment or extension within 12 months include building loans for properties under construction and fixed advances with a total maturity of less than one year.

As at the reporting date, amounts due were as follows:

30.06.2014 31.12.2013
Due within first year 129,075 286,612
Due within second year 27,011 32,423
Due within third year 70,684 15,446
Due within fourth year 24,737 73,580
Due within fifth year 250,029 200,538
Due within sixth year 73,236 74,496
Due within seventh year 314,060 134,662
Due within eighth year 69,881 59,356
Due within nineth year 13,229 53,397
Due within tenth year 1,329 13,229
Due within eleventh year and longer 296,850 297,382
Total financial liabilities 1,270,121 1,241,120

¹ including building loans for properties under construction

Maturity profile (as at 30 June 2014)

The average residual term of overall financial liabilities as at 30 June 2014 was 8.1 years (31December 2013: 7.7 years).

Interest rate periods are as follows (composition until next interest rate adjustment):

30.06.2014 31.12.2013
Up to 1 year 129,075 286,612
Up to 2 years 27,011 32,423
Up to 3 years 70,684 15,446
Up to 4 years 24,737 73,580
Up to 5 years 250,029 200,538
Over 5 years 768,585 632,521
Total financial liabilities 1,270,121 1,241,120

Certain mortgage interest rates were formerly partially hedged in advance by means of forward rate agreements. Such forward rate agreements generally qualify as derivatives embedded in credit agreements and have to be measured at fair value in accordance with IAS 39. Some of these forward rate agreements were classified as cash flow hedges pursuant to IAS 39, and fair value adjustments relating to the effective portion of the hedge were recognised via the statement of comprehensive income in a separate item (hedging reserve). When the hedged interest cash flows occur, cumulative unrealised gains or losses are transferred to the income statement. This applies until 2022. Gains and losses not yet transferred to the income statement totalled CHF 0.4 million as at 30 June 2014 (31December 2013: CHF 0.4 million). As at 30 June 2014 and 31December 2013, there were no open refinancing agreements.

Mobimo has also concluded separate interest rate hedges (swaps) totalling CHF 208.8 million (31December 2013: CHF 208.8 million). Of these, CHF 129.5 million (31December 2013: CHF 129.5 million) are classified as cash flow hedges. Consequently, fair value adjustments were recognised under other comprehensive income in equity, and not through the income statement. Financial instruments with a negative fair value amount to CHF –7.9 million (31December 2013: CHF –0.6 million), while there are no financial instruments with a positive fair value (31 December 2013: CHF 3.5 million). There are also a further CHF 79.3 million (31December 2013: CHF 79.3 million) of interest rate hedges not classified as cash flow hedges. Fair value adjustments were thus recognised through the income statement. The fair value of these interest rate swaps is CHF –9.8 million (31December 2013: CHF –8.7 million). As at 30 June 2014, the fair value of all derivatives thus stood at a net figure of CHF –17.7 million (31 December 2014: CHF –5.9 million).

¹ In addition to mortgage liabilities, the bond with a carrying amount of CHF 164.3 million (nominal value: CHF 165 million) maturing on 29 October 2018 is included

² In addition to mortgage liabilities, the bond with a carrying amount of CHF 198.0 million (nominal value: CHF 200 million) maturing on 19 May 2021is included

C O N S O L I D A T E D I N T E R I M F I N A N C I A L S T A T E M E N T S

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The convertible bond included in current financial liabilities as at the end of 31 December 2013 was repaid at its nominal value of CHF 168.7 million upon maturing on 30 June 2014.

In the first half of 2014, a CHF 200 million bond with a term of seven years was issued. The following two bonds are therefore included under non-current financial liabilities:

1.5% bond 1.625% bond
2014 (2013–2018) (2014–2021) Total
Carrying amount 1 January 164,186 164,186
Net proceeds from issuance 197,967 197,967
Amortisation of issuance costs 82 32 113
Carrying amount 30 June 164,267 197,999 362,266
Features 1.5% bond (2013–2018) 1.625% bond (2014–2021)
Volume: CHF 165 million CHF 200 million
Term: 5 years (29 October 2013-29 October 2018) 7 years (19 May 2014-19 May 2021)
Interest rate: 1.5% p.a., 1.625% p.a.,
payable annually on 29 October, with the first payable annually on 19 May, with the first payment on
payment on 29 October 2014 19 May 2015
Effective rate of interest: 1.607% 1.7921%
Listing: SIX Swiss Exchange SIX Swiss Exchange
Swiss security no.: 22492349 24298406

The average rate of interest on all financial liabilities in the first half of 2014 was 2.62% (full-year 2013: 2.72%). Financial liabilities of CHF 907.9 million are secured via mortgage liens (31 December 2013: CHF 909.3 million). The credit facilities arranged contain covenants pertaining to equity ratio, net gearing, interest coverage factor and portfolio structure which were met over the entire reporting period.

There are also collateralised unutilised mortgage and building loan facilities totalling CHF 126.7 million.

15. Financial instruments

Fair Values

The carrying amounts in the annual financial statements for cash, trade receivables, other current receivables and current liabilities are very close to the fair values given the short terms involved.

For interest rate swaps and forward rate agreements, fair value is the present value of the forward contract and corresponds to the carrying amount.

For fixed-rate financial liabilities, fair value corresponds to the time value of the future cash flows to be discounted as at the reporting date using the market interest rate. Rates of interest for discounting future cash flows are based on money and capital market rates as at the time of valuation plus an adequate interest spread of 0.55%. The discount rates used as at 30 June 2014 were between 0.60% and 2.33% (as at 31 December 2013: between 0.64% and 2.72%). The fair value of the listed bonds and of the convertible bond that was still outstanding in the prior year corresponded to the price as at the reporting date.

Carrying amount Fair value Carrying amount Fair value
30.06.2014 30.06.2014 31.12.2013 31.12.2013
Mortgages 907,855 967,797 909,269 942,780
Convertible bonds 0 0 167,666 170,038
Bonds 362,266 376,288 164,186 167,475
1,270,121 1,344,084 1,241,120 1,280,293

Fair value hierarchy

The table below shows financial instruments carried at fair value, by measurement method, as at the reporting date. The different levels have been defined as follows:

Level 1: inputs that result from unadjusted, quoted prices.

Level 2: inputs other than quoted prices in active markets that are observable either directly (i.e. prices) or indirectly (i.e. derived from prices).

Level 3: inputs not based on observable market data.

30 June 2014 Level 1 Level 2 Level 3
Derivative financial instruments (net) 0 –17,679 0
31 December 2013 Level 1 Level 2 Level 3
Derivative financial instruments (net) 0 –5,874 0

Level 2 fair values for the derivative financial instruments are based on valuations by the counterparty (banks). The plausibility of these counterparty valuations is checked by comparing them with calculations in which the expected future cash flows are discounted using the market interest rate.

C O N S O L I D A T E D I N T E R I M F I N A N C I A L S T A T E M E N T S

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

16. Equity

The Annual General Meeting of 25 March 2014 approved a distribution from the capital contribution reserves of CHF 9.50 per share for the 2013 financial year, which was paid on 1 April 2014. The nominal value of Mobimo shares remains at CHF 29.

Changes in equity can be summarised as follows:

As at 30 June 2014 6,216,606 –1,623 6,214,983
Acquisition of treasury shares –9,000 –9,000
Share-based payments to Board of Directors and management 9,525 9,525
Issue of shares from conditional capital for options exercised 2,128 2,128
As at 31 December 2013 6,214,478 –2,148 6,212,330
Share-based payments to Board of Directors and management 6,596 6,596
Issue of shares from conditional capital for options exercised 5,565 5,565
As at 1 January 2013 6,208,913 –8,744 6,200,169
No. of shares Shares issued Treasury shares outstanding
Shares

As at 30 June 2014, share capital totalled CHF 180.3 million and was composed of 6,216,606 registered shares with a nominal value of CHF 29 per share. 1,623 treasury shares were held as at that date.

2,128 option rights were exercised in the first half of 2014, leading to a CHF 0.06 million increase in share capital.

There is also conditional share capital of a maximum of CHF 34.1 million for the issue of up to 1,175,198 fully paid-up registered shares with a nominal value of CHF 29, of which

  • up to CHF 0.05 million is designated for the exercise of option rights granted to members of the Board of Directors, employees of Group companies and related parties. Shareholders' subscription rights are excluded;
  • up to CHF 0.9 million is designated for the exercise of subscription rights created after 5 May 2010 under an employee share option programme. Shareholders' subscription rights are excluded;
  • up to CHF 33.1 million is designated for the exercise of conversion and/or option rights connected to convertible bonds, bonds with warrants, similar bonds or other financial market instruments of the company or granted by Group companies. Shareholders' subscription rights are excluded.

Finally, authorised share capital is available, allowing the Board of Directors to increase the share capital of the company by a maximum of CHF 33.1 million within two years at most (up to April 2015) via the issue of a maximum of 1,141,150 registered shares, to be fully paid up, with a nominal value of CHF 29 per share.

The CHF 33.1 million of conditional and authorised capital are linked together in that upon using this authorised capital, conditional capital will no longer be available in the same amount to the Board of Directors. The same applies in the reverse scenario; if this conditional capital is used, the same amount of the authorised capital is no longer available.

17. New joint venture

The company FM Service & Dienstleistungs AG was established in the first half of 2014. The purpose of the company is to provide services in the real estate area, in particular in facility management and related services. It is held as a joint venture by Mobimo and a partner. Each partner holds a 50% interest. As at 1 June the company started up operations by providing facility management and central services for the tenants of the property in Zurich, Friesenbergstrasse 75; Im Tiergarten 7.

18. Events after the reporting date

The consolidated interim financial statements were approved for publication by the Board of Directors on 31 July 2014. No events took place between 30 June 2014 and the approval date of these consolidated interim financial statements that would require adjustments to the carrying amounts of assets and liabilities as at 30 June 2014.

With effect from 1 July 2014, the business areas Investments for Third Parties (previously a component of the Development division) and Portfolio Management (previously a division in its own right) constitute the new Real Estate division under the management of Thomas Stauber. As a result, segment reporting will consist in future of the Real Estate and Development (excluding Investments for Third Parties) divisions.

TRADING PROPERT Y DETAILS

Location Address Site Register of Built Acquired
area in m2 polluted
sites
Building land & development cost
Aarau Site 4 (Torfeld Süd) 11,105 yes (insignificant) Jun 2001
Dübendorf Sonnentalstrasse 103 11,291 no Jun 2012
Herrliberg Rigiweg3 5,082 no Nov 2008
Merlischachen Chappelmatt Strasse (Burgmatt) 15,507 no 2014/2015
Weggis Hertensteinstrasse 105 3,043 no May 2010
46,028
Properties under construction
Langenthal Kühlhausstrasse3 2,284 no Mar 2014
Lucerne Büttenenhalde 7,115 no Dec 2011
Meilen Feldgüetliweg 143/145 (Gusto) 2,687 no Nov 2011
Regensdorf Im Pfand 2 (Sonnenhof ) 6,106 no Jun 2007
Zurich Badenerstrasse 595 (Station 595) 2,389 no 1954 May 2012
Zurich Im Brächli 5/7/9 (Collina) 2,144 no Aug 2009
22,725
Completed real estate and development properties
Aarau Buchserstrasse 8 241 no 1907 Mar 2011
Egerkingen Einschlagstrasse 8,729 no Mar 2011
Horgen Stockerstrasse 40 – 42 (Wisental I) 7,674 no Nov 2005
Horgen Stockerstrasse 40 – 42 (Wisental II) 7,047 no Nov 2005
St. Erhard Längmatt 5,801 no 1979 Oct 2012
St. Moritz Via Maistra 292 557 no 1930 Jul 2010
Uetikon am See Tramstrasse 12; Bergstrasse 144/146/1482 2,634 no 1921/1924/ Jan 2013
1952/1957
Weggis Luzernerstrasse 24/262 9,043 no 1895 Sep 2013
Zurich Turbinenstrasse Site B 5,965 no May 2011
Zurich Turbinenstrasse trading property (Mobimo Tower) 1,936 no May 2008
49,627

¹ Status: certified purchase agreement

² Development properties

³ Sale as project

Sales status Carrying amount Realisation Project status Sales volumes Description
30. 06. 20141 30. 06. 2014 period 30. 06. 2014 in TCHF
in TCHF
0/92 16,793 2014/2017 in planning 84,170 92 condominiums
1/1 41,559 n/a in planning open n/a
1/1 17,732 open in planning n/a building land
open 13,262 open in planning open open
0/1 10,406 open in planning open open
99,752 84,170
0/1 4,502 2014/2016 construction project open Office
0/24 8,646 2014/2016 construction project 30,360 24 condominiums
3/14 16,970 2013/2015 construction project 30,290 14 condominiums
28/45 22,287 2013/2015 construction project 34,440 45 condominiums
44/61 35,364 2013/2014 construction project 52,715 61 condominiums
15/17 16,125 2012/2014 construction project 27,255 17 condominiums
103,893 175,060
0/1 470 n/a for sale n/a residential property
2/5 1,607 n/a for sale n/a 5 condominiums
47/47 6 2008/2010 for sale 60,192 47 condominiums
43/43 940 2011/2013 for sale 51,631 43 condominiums
0/1 8,365 n/a for sale open open
open 15,872 n/a in planning open open
0/16 9,191 2015/2016 in planning 24,590 16 condominiums
open 4,141 2017/2019 in planning open open
81/81 64 2011/2013 for sale 76,250 81 condominiums
39,279 2008/2011 for sale 171,399 53 condominiums
42/53

GEOGRAPHIC BREAKDOWN OF TRADING PROPERTIES

As at 30 June 2014, 21 trading properties were reported on the balance sheet, of which

18 were new-build projects (31December 2013: 19)

3 were development projects (31December 2013: 3) Most of the residential development properties are located in the Canton of Zurich, primarily in the city of Zurich and the region around Lake Zurich.

Percentage breakdown of carrying amounts in CHF

Zurich

Central Switzerland

North-western Switzerland

Eastern Switzerland

P R O P E R T Y D E T A I L S

COMMERCIAL PROPERT Y DETAILS

Location Address Acquired Built Year
renovated
Aarau Bahnhofstrasse 102 (Mediapark) Mar 2004 1975 1998
Aarau Industriestrasse 28; Torfeldstrasse Parkhaus Jun 2001/Oct 2006 1905/1916/1929/
1943/1954/1974
Aarau Industriestrasse 20 (Polygon) Jun 2001 2012
Aesch Pfeffingerring 201 May 2005 1973 2008
Affoltern am Albis Obstgartenstrasse 9; Alte Obfelderstrasse 27/29 Aug 2011 2013
Baden-Dättwil Im Langacker 20/20a/22 Jun 2004 1972 1988
Brugg Bahnhofstrasse 11 Jun 2006 2005
Bülach Bahnhofstrasse 39 Sep 2005 1969 1995
Dierikon Pilatusstrasse 2 May 2009 1990 2007
Dübendorf Sonnentalstrasse 5 Mar/Dec 1999 1975 2000
Dübendorf Zürichstrasse 98 Jan 2000 1965 1983
Herisau Obstmarkt 1 Jul 2008 1984
Horgen Seestrasse 80 Nov 2005 1960 2000/2008
Horgen Seestrasse 82 Nov 2005 2010
Kreuzlingen Lengwilerstrasse 2 Apr 2007 2007
Kreuzlingen Leubernstrasse 3; Bottighoferstrasse 1 Nov 2006 1983/2003
Kreuzlingen Romanshornerstrasse 126 Nov 2006 n/a
Kriens Sternmatt 6 Feb 2004 1986
Lausanne Avenue d'Ouchy 4–6 (Administration) May 2010 2013 2013
Lausanne Flonplex Nov 2009 n/a
Lausanne Parking du Centre Nov 2009 n/a
Lausanne Place de la Gare 4 Nov 2009 1961 2000
Lausanne Place de la Navigation 4–6 Nov 2009 1895 2002
Lausanne Place de l'Europe 6 Nov 2009 1905 2012
Lausanne Place de l'Europe 7 Nov 2009 1905 2001
Lausanne Place de l'Europe 8 Nov 2009 1911 1989
Lausanne Place de l'Europe 9 Nov 2009 1900 2002
Lausanne Rue de Genève 2/4/6/8 Nov 2009 1904 2002
Lausanne Rue de Genève 7 Nov 2009 1932 1992/2011
Lausanne Rue de Genève 17 Nov 2009 1884 2002
Lausanne Rue de Genève 23 Nov 2009 1915 2005
Lausanne Rue de la Vigie 3 Nov 2009 1964
Lausanne Rue de la Vigie 5 Nov 2009 1963 1988
Lausanne Rue des Côtes-de-Montbenon 6 Nov 2009 1921 2009
Lausanne Rue des Côtes-de-Montbenon 8/10 Nov 2009 1946 1998
Lausanne Rue des Côtes-de-Montbenon 16 Nov 2009 1912 2007
Lausanne Rue des Côtes-de-Montbenon 20–24 Nov 2009 2013
Lausanne Rue des Côtes-de-Montbenon 26 Nov 2009 n/a
Lausanne Rue des Côtes-de-Montbenon 28/30 Nov 2009 n/a
Lausanne Rue du Port-Franc 9 Nov 2009 1927 2009
Lausanne Rue du Port-Franc 11 Nov 2009 2008
Lausanne Rue du Port-Franc 17 Nov 2009 2003
Lausanne Rue du Port-Franc 22; Rue de la Vigie 1 Nov 2009 2007
Lausanne Voie du Chariot 3 Nov 2009 2008
Lausanne Voie du Chariot 4/6 Nov 2009 2008
Lausanne Voie du Chariot 5/7 Nov 2009 2008

¹ Target gross yield as at reporting date 30 June 2014 as% of market value

² Vacancy rate as% of target rental income

Vacant area as at Vacancy rate as at Target rental revenues Gross yield Acquisition costs Fair value
30. 06. 2014 in% 30. 06. 2014 in%2 in TCHF in%1 in TCHF in TCHF
10.1 10.0 2,218 7.9 28,060
0.0 0.0 1,846 5.9 31,402
0.0 0.0 1,263 5.3 23,870
0.0 0.0 1,972 8.7 22,700
0.0 0.0 3,410 6.0 57,160
20.7 18.2 1,319 7.6 17,290
0.0 0.6 1,553 5.7 27,180
0.0 0.0 183 5.8 3,174
10.8 12.3 733 6.8 10,820
2.0 1.7 1,814 6.6 27,340
0.0 0.2 1,407 6.5 21,540
19.9 11.6 1,065 6.5 16,280
0.0 0.2 517 6.3 8,185
0.0 0.0 244 3.7 6,652
0.0 0.0 322 5.1 6,354
1.3 0.8 3,656 5.5 66,447
0.0
14.2
0.0
14.9
80
2,794
4.3
9.0
1,886
31,150
36.2 36.8 3,039 5.4 56,120
0.0 0.0 210 4.5 4,713
0.0 0.0 428 5.5 7,760
0.0 1,489 5.5 27,270
0.0 676 6.3 10,710
0.0 303 5.5 5,474
0.0 454 5.6 8,030
0.0 374 4.8 7,740
0.0 1,249 5.7 21,910
0.0 1,308 5.7 22,950
0.0 1,626 5.2 31,080
7.5 1,370 7.2 19,140
0.0 0.0 182 7.4 2,446
14.2 10.7 464 6.8 6,866
0.0 857 7.0 12,300
0.0 358 5.1 7,059
0.0 531 6.7 7,906
0.0 0.0 263 5.5 4,747
0.0 0.0
0.0
1,607
79
4.5
4.5
35,690
1,764
0.0
0.0
0.0 74 3.5 2,113
0.0 342 5.5 6,163
0.0
49.0
58.3 589 5.0 11,840
0.0 0.0 728 6.1 11,940
0.0 0.0 1,201 5.8 20,620
6.0 1.7 865 5.9 14,570
0.0 1,863 6.1 30,310
0.0 1,681 5.4 31,270

COMMERCIAL PROPERT Y DETAILS

Location Address Acquired Built Year Fair value
Acquisition costs
Gross yield
Target rental revenues
Vacancy rate as at
Vacant area as at
renovated in TCHF
in TCHF
in%1
in TCHF
30. 06. 2014 in%2
30. 06. 2014 in%
Lucerne Alpenstrasse 9 Jun 2007 1890 2001/2010 11,960
4.7
557
0.0
Neuhausen Victor von Bruns-Strasse 19 Mar 2007 2007 12,910
5.6
725
0.0
Regensdorf Althardstrasse 10 Dec 2001 1982 19,850
9.2
1,835
14.6
Renens Chemin de la Rueyre 116/118 Mar 2007 1989 12,580
6.9
862
0.0
St. Gallen Schochengasse 6 Feb 2004 1974 2000 17,000
6.6
1,129
0.4
St. Gallen St. Leonhardstrasse 22 Dec 2004 1900 2002/2006 4,690
5.7
266
0.0
St. Gallen Wassergasse 42/44 Feb 2004 1966 2000 15,660
6.3
981
13.3
St. Gallen Wassergasse 50/52 Feb 2004 1998 13,540
6.2
834
0.0
Winterthur Industriestrasse 26 Oct 1999 1994 2002 20,250
7.2
1,466
7.0
Zurich Bahnhofplatz 4 Jul 2006 1881 2002/2005 20,800
4.4
917
0.0
Zurich Friedaustrasse 17 Oct 1998 1968 2013 12,040
5.3
639
1.2
Zurich Friesenbergstrasse 75; Im Tiergarten 7 Feb 2014 1976/1992 1999 91,650
6.2
5,672
0.7
Zurich Hardturmstrasse 3/3a/3b Nov 1999 1974 2001/2008 58,500
5.5
3,226
0.2
Zurich Rautistrasse 12 Nov 1999 1972 2011 20,400
6.8
1,377
1.2
Zurich Stauffacherstrasse 41 Jun 2000 1990 2011 48,960
4.9
2,394
0.0
Zurich Thurgauerstrasse 23; Siewerdtstrasse 25 Mar 2002 1963/1968/1985 1998 15,000
6.4
964
0.0
Zurich Treichlerstrasse 10; Dolderstrasse 16 May 2014 1963 2007 15,220
5.8
889
0.0
Zurich Turbinenstrasse 18 (Mobimo Tower Hotel) May 2008 2011 135,300
4.5
6,100
0.0
Zurich Witikonerstrasse 311/311b Sep 1997 1992 8,863
6.5
573
9.8
65 Commercial investment properties 1,393,164
1,218,251
5.9
82,014
4.2
Aarau Baufeld 2 (Torfeld Süd) Oct 2006 1905/1916/1929/1943/1954 12,760
0.0
0
0.0
Kriens Mattenhof I Mar 2005 n/a 10,840
0.0
0
0.0
Kriens Mattenhof II Feb 2004 1986 6,759
2.0
134
1.1
Lausanne Avenue d'Ouchy 4–6 May 2010 1962 64,110
6.2
3,970
46.0
Lausanne Rue de Genève 19 Nov 2009 1893 2002 3,540
10.3
363
5.9
Lausanne Rue de Genève 21 Nov 2009 1902 3,416
8.8
301
0.0
Lausanne Rue des Côtes-de-Montbenon 1/3 Nov 2009 1930 488
17.1
84
12.2
Lausanne Rue des Côtes-de-Montbenon 5 Nov 2009 1930 486
5.8
28
0.0
Lausanne Rue des Côtes-de-Montbenon 12 Nov 2009 1918 2004 1,906
16.4
313
0.0
Lausanne Rue des Côtes-de-Montbenon 14 Nov 2009 1963 888
4.1
36
0.0
Lausanne Rue du Port-Franc 20; Rue de Genève 33 Nov 2009 2007 41,200
7.2
2,975
28.6
Regensdorf Althardstrasse 30 Dec 2001 1976 14,350
14.4
2,060
82.7
Zurich Albulastrasse; Hohlstrasse Apr 2010 1896/1928 43,490
0.1
38
100.0
13 Commercial development properties 204,233
213,346
5.0
10,304
43.2
78 Total commercial properties 1,597,397
1,431,597
5.8
92,318
8.5

¹ Target gross yield as at reporting date 30 June 2014 as% of market value

² Vacancy rate as% of target rental income

Fair value Acquisition costs
Gross yield
Target rental revenues Vacancy rate as at Vacant area as at
in TCHF in TCHF in%1 in TCHF 30. 06. 2014 in%2 30. 06. 2014 in%
11,960 4.7 557 0.0 0.9
12,910 5.6 725 0.0 0.0
19,850 9.2 1,835 14.6 10.3
12,580 6.9 862 0.0 0.0
17,000 6.6 1,129 0.4 1.7
4,690 5.7 266 0.0 0.0
15,660 6.3 981 13.3 13.0
13,540 6.2 834 0.0 0.0
20,250 7.2 1,466 7.0 5.4
20,800 4.4 917 0.0 0.0
12,040 5.3 639 1.2 0.0
91,650 6.2 5,672 0.7 0.3
58,500 5.5 3,226 0.2 0.0
20,400 6.8 1,377 1.2 0.9
48,960 4.9 2,394 0.0 0.0
15,000 6.4 964 0.0 0.0
15,220 5.8 889 0.0 0.0
135,300 4.5 6,100 0.0 0.0
8,863 6.5 573 9.8 8.6
1,393,164 1,218,251 5.9 82,014 4.2 4.4
12,760 0.0 0 0.0 0.0
10,840 0.0 0 0.0 0.0
6,759 2.0 134 1.1 95.8
64,110 6.2 3,970 46.0 42.9
3,540 10.3 363 5.9 17.1
3,416 8.8 301 0.0 5.7
488 17.1 84 12.2 0.0
486 5.8 28 0.0 0.0
1,906 16.4 313 0.0 0.0
888 4.1 36 0.0 0.0
41,200 7.2 2,975 28.6 37.2
14,350 14.4 2,060 82.7 87.8
43,490 0.1 38 100.0 0.0
204,233 213,346 5.0 10,304 43.2 58.6
1,597,397 1,431,597 5.8 92,318 8.5 10.4

COMMERCIAL PROPERT Y DETAILS

Location Address Ownership Site area in m2 Register of
polluted sites
Aarau Bahnhofstrasse 102 (Mediapark) sole ownership 5,675 no
Aarau Industriestrasse 28; Torfeldstrasse Parkhaus sole ownership 13,727 yes (insignificant)
Aarau Industriestrasse 20 (Polygon) sole ownership 3,840 yes (Code D)3
Aesch Pfeffingerring 201 sole ownership 16,034 no details
Affoltern am Albis Obstgartenstrasse 9; Alte Obfelderstrasse 27/29 sole ownership 3,537 no
Baden-Dättwil Im Langacker 20/20a/22 sole ownership 8,792 no
Brugg Bahnhofstrasse 11 condo (773/1000) 2,726 no
Bülach Bahnhofstrasse 39 sole ownership 563 no
Dierikon Pilatusstrasse 2 sole ownership 4,397 no
Dübendorf Sonnentalstrasse 5 condo (930/1000) 4,368 yes (Code D)3
Dübendorf Zürichstrasse 98 sole ownership 9,809 yes (petrol station)
Herisau Obstmarkt 1 sole ownership 1,602 no
Horgen Seestrasse 80 sole ownership 3,483 no
Horgen Seestrasse 82 sole ownership 0 no
Kreuzlingen Lengwilerstrasse 2 sole ownership 7,027 no
Kreuzlingen Leubernstrasse 3; Bottighoferstrasse 1 sole ownership 25,530 no
Kreuzlingen Romanshornerstrasse 126 sole ownership 2,180 no
Kriens Sternmatt 6 sole ownership 17,314 no
Lausanne Avenue d'Ouchy 4–6 (Administration) sole ownership 12,609 yes7
Lausanne Flonplex sole ownership 1,953 yes8
Lausanne Parking du Centre sole ownership 5,065 yes8
Lausanne Place de la Gare 4 sole ownership 630 no
Lausanne Place de la Navigation 4–6 sole ownership 567 yes4
Lausanne Place de l'Europe 6 sole ownership 369 yes4
Lausanne Place de l'Europe 7 sole ownership 391 yes4
Lausanne Place de l'Europe 8 sole ownership 1,035 yes4
Lausanne Place de l'Europe 9 sole ownership 975 yes4
Lausanne Rue de Genève 2/4/6/8 sole ownership 2,260 yes4
Lausanne Rue de Genève 7 sole ownership 3,343 yes4
Lausanne Rue de Genève 17 sole ownership 2,312 yes4
Lausanne Rue de Genève 23 sole ownership 636 yes6
Lausanne Rue de la Vigie 3 sole ownership 972 yes7
Lausanne Rue de la Vigie 5 sole ownership 852 yes7
Lausanne Rue des Côtes-de-Montbenon 6 sole ownership 510 yes7
Lausanne Rue des Côtes-de-Montbenon 8/10 sole ownership 587 yes4
Lausanne Rue des Côtes-de-Montbenon 16 sole ownership 850 yes4
Lausanne Rue des Côtes-de-Montbenon 20–24 sole ownership 2,602 yes
Lausanne Rue des Côtes-de-Montbenon 26 sole ownership 867 yes8
Lausanne Rue des Côtes-de-Montbenon 28/30 sole ownership 1,068 yes7
Lausanne Rue du Port-Franc 9 sole ownership 2,733 yes6
Lausanne Rue du Port-Franc 11 sole ownership 612 yes5
Lausanne Rue du Port-Franc 17 sole ownership 776 yes5
Lausanne Rue du Port-Franc 22; Rue de la Vigie 1 sole ownership 1,999 yes5
Lausanne Voie du Chariot 3 sole ownership 500 yes5
Lausanne Voie du Chariot 4/6 sole ownership 2,614 yes5
Lausanne Voie du Chariot 5/7 sole ownership 1,042 yes5

⁵ Site pollution eliminated – property rebuilt in recent years

³ Code D: clarification necessary in the context of building projects

⁴ Site pollution unlikely – the property must be maintained in accordance with the design plan ("Gestaltungsplan") and has been subject to comprehensive renovation in recent years

Other Residential Commercial space Sales space Office space Total rentable Property
in% space in% in% in% in% area in m2 description9
25.2 1.4 8.8 0.0 64.6 13,246 com
6.3 0.0 93.3 0.0 0.5 21,248 com
8.6 0.0 0.0 0.0 91.4 4,465 com
8.6 0.0 63.0 0.0 28.3 14,219 com
75.5 24.5 0.0 0.0 0.0 10,625 com
24.7 1.0 23.7 28.3 22.4 9,429 com
12.2
18.5
0.0
0.0
21.5
0.0
33.3
16.6
33.0
64.8
4,076
944
com
com
8.7 0.0 15.1 15.8 60.4 4,386 com
12.0 0.0 64.5 0.0 23.5 8,769 com
26.0 1.1 26.0 17.3 29.6 9,898 com
35.0 0.0 9.1 0.2 55.7 6,090 com
4.8 0.0 19.0 0.0 76.2 2,151 com
100.0 0.0 0.0 0.0 0.0 64 car park
33.5 0.0 0.0 66.5 0.0 1,348 com
1.7 0.0 0.0 89.4 8.8 17,801 com
n/a n/a n/a n/a n/a n/a building right
20.1 1.2 40.7 4.6 33.3 21,077 com
0.0 0.0 0.0 96.5 8,003 com
100.0 0.0 0.0 0.0 0.0 1,953 building right
100.0 0.0 0.0 0.0 0.0 6,526 building right
0.3 0.0 0.0 68.4 4,770 com
100.0
100.0
0.0 0.0 0.0 0.0 2,760 com - hotel
0.0 0.0 0.0 0.0 923 com - hotel
0.0 0.0 21.2 66.8 1,441 com
0.0
0.0
0.0
0.0
22.2
15.9
77.8
60.3
1,656
3,512
com
com
0.0 0.0 91.4 8.6 4,679 com
22.3 0.0 25.7 12.2 5,422 com-share
investment prop.
0.0 17.2 28.5 45.1 7,107 com
0.0 0.0 25.6 69.2 2,104 com
0.0 0.0 0.0 54.7 3,116 com
0.0 4.5 0.0 64.2 3,370 com
0.0 0.0 19.7 62.5 2,193 com
0.0 3.6 0.0 73.9 2,226 com
32.5 0.0 0.0 67.5 865 com
0.0 0.0 0.0 18.8 7,618 com
100.0 0.0 0.0 0.0 0.0 867 building right
100.0 0.0 0.0 0.0 0.0 1,068 building right
57.3
37.9
0.0
0.0
0.0
0.0
21.7
62.1
20.9
0.0
1,728
2,160
com
com
17.2 25.0 0.0 0.0 57.8 2,132 com
0.0 0.0 10.6 79.5 3,852 com
0.0 0.0 17.3 73.3 2,279 com
0.0 0.0 67.7 32.3 5,452 com
15.7 0.0 15.7 55.4 4,906 com

⁶ Site pollution suspected but no measures expected – property must be maintained in accordance with the design plan ("Gestaltungsplan")

⁷ Site pollution suspected, measures required in new-build plans

⁸ Building-right plot on which new-build projects have been completed in recent years

⁹ Com = commercial; Res = residential

COMMERCIAL PROPERT Y DETAILS

Location Adresse Ownership Site area in m2 Register of Property Total rentable Office space Sales space
Commercial space
Residential Other
polluted sites description9 area in m2 in% in% in%
space in%
in%
Lucerne Alpenstrasse 9 sole ownership 569 no res+com 1,979 12.3 13.1 0.0 64.8
Neuhausen Victor von Bruns-Strasse 19 sole ownership 1,596 no com 2,806 93.8 0.0 0.0 0.0
Regensdorf Althardstrasse 10 sole ownership 7,714 no com 13,523 39.2 28.6 8.4 0.0
23.8
Renens Chemin de la Rueyre 116/118 sole ownership 4,503 no com 4,341 68.8 0.0 0.0 0.0
31.2
St. Gallen Schochengasse 6 sole ownership 1,316 no com 4,460 95.4 0.0 0.0 0.0
St. Gallen St. Leonhardstrasse 22 sole ownership 219 no com 1,090 79.1 12.8 0.0 0.0
St. Gallen Wassergasse 42/44 condo (867/1000) 1,714 no com 3,958 80.4 0.0 0.0 9.4
10.2
St. Gallen Wassergasse 50/52 sole ownership 1,373 no com 3,554 72.3 0.0 0.0 0.0
27.7
Winterthur Industriestrasse 26 sole ownership 3,635 yes (Code D)3 com 11,326 64.6 0.8 20.4 0.0
14.3
Zurich Bahnhofplatz 4 sole ownership 189 yes com 758 63.5 27.8 0.0 0.0
Zurich Friedaustrasse 17 sole ownership 869 no com 2,568 56.9 0.0 7.3 10.2
25.7
Zurich Friesenbergstrasse 75; Im Tiergarten 7 sole ownership 11,532 no com 21,079 63.4 0.0 12.5 0.0
24.1
Zurich Hardturmstrasse 3/3a/3b sole ownership 2,151 yes com 8,226 94.4 0.0 0.0 0.0
Zurich Rautistrasse 12 sole ownership 1,894 yes (petrol station) com 6,095 73.4 15.2 1.8 1.3
Zurich Stauffacherstrasse 41 sole ownership 1,405 no com 6,755 60.6 1.0 0.0 0.0
38.4
Zurich Thurgauerstrasse 23; Siewerdtstrasse 25 sole ownership 2,657 no com 3,901 59.1 6.8 6.9 0.0
27.1
Zurich Treichlerstrasse 10; Dolderstrasse 16 sole ownership 1,139 no com 2,878 63.8 0.0 0.0 6.6
29.6
Zurich Turbinenstrasse 18 (Mobimo Tower Hotel) sole ownership 5,808 no com - hotel 22,429 0.0 0.0 0.0 0.0
100.0
Zurich Witikonerstrasse 311/311b sole ownership 1,846 no res+com 2,116 33.6 0.9 30.6 28.4
65 Commercial investment properties 233,462 368,365 40.4 12.8 16.3 2.4
28.1
Aarau Baufeld 2 (Torfeld Süd) sole ownership 18,526 yes (insignificant) com 18,164 17.1 7.8 0.0 71.1
Kriens Mattenhof I sole ownership 11,649 no land 0 n/a n/a n/a n/a
n/a
Kriens Mattenhof II sole ownership 7,640 no com 4,839 0.0 0.0 92.3 0.0
Lausanne Avenue d'Ouchy 4–6 sole ownership 0 yes7 com 25,446 20.9 15.4 47.7 0.0
16.1
Lausanne Rue de Genève 19 sole ownership 2,733 yes6 com 3,551 39.3 17.2 0.0 0.0
43.5
Lausanne Rue de Genève 21 sole ownership 2,524 yes6 com 3,600 39.7 16.8 0.0 0.0
43.6
Lausanne Rue des Côtes-de-Montbenon 1/3 sole ownership 1,101 yes7 com 305 0.0 100.0 0.0 0.0
Lausanne Rue des Côtes-de-Montbenon 5 sole ownership 734 yes7 com 272 0.0 0.0 100.0 0.0
Lausanne Rue des Côtes-de-Montbenon 12 sole ownership 499 yes7 com 935 46.0 22.1 21.4 0.0
10.5
Lausanne Rue des Côtes-de-Montbenon 14 sole ownership 647 yes7 com 640 0.0 0.0 0.0 0.0
100.0
Lausanne Rue du Port-Franc 20; Rue de Genève 33 sole ownership 2,000 yes5 com 9,948 31.7 31.1 0.0 0.0
37.2
Regensdorf Althardstrasse 30 sole ownership 9,355 no com 12,893 61.2 0.0 29.5 2.2
Zurich Albulastrasse; Hohlstrasse sole ownership 10,266 yes com 7,604 0.0 0.0 100.0 0.0
13 Commercial development properties 67,674 88,197 25.8 11.5 32.3 15.0
15.5
78 Total commercial properties 301,136 456,562 37.6 12.5 19.4 4.8
25.6

³ Code D: clarification necessary in the context of building projects

⁵ Site pollution eliminated – property rebuilt in recent years

⁶ Site pollution suspected but no measures expected – property must be maintained in accordance with the design plan ("Gestaltungsplan")

Other Residential Commercial space Sales space Office space Total rentable Property
in% space in% in% in% in% area in m2 description9
9.7 64.8 0.0 13.1 12.3 1,979 res+com
6.2 0.0 0.0 0.0 93.8 2,806 com
23.8 0.0 8.4 28.6 39.2 13,523 com
31.2 0.0 0.0 0.0 68.8 4,341 com
4.6 0.0 0.0 0.0 95.4 4,460 com
8.2 0.0 0.0 12.8 79.1 1,090 com
10.2 9.4 0.0 0.0 80.4 3,958 com
27.7 0.0 0.0 0.0 72.3 3,554 com
14.3 0.0 20.4 0.8 64.6 11,326 com
8.7 0.0 0.0 27.8 63.5 758 com
25.7 10.2 7.3 0.0 56.9 2,568 com
24.1 0.0 12.5 0.0 63.4 21,079 com
5.6 0.0 0.0 0.0 94.4 8,226 com
8.3 1.3 1.8 15.2 73.4 6,095 com
38.4 0.0 0.0 1.0 60.6 6,755 com
27.1 0.0 6.9 6.8 59.1 3,901 com
29.6 6.6 0.0 0.0 63.8 2,878 com
100.0 0.0 0.0 0.0 0.0 22,429 com - hotel
28.4 30.6 0.9 33.6 2,116 res+com
2.4 16.3 12.8 40.4 368,365
71.1 0.0 7.8 17.1 18,164 com
n/a n/a n/a n/a 0 land
0.0 92.3 0.0 0.0 4,839 com
0.0 47.7 15.4 20.9 25,446 com
0.0 0.0 17.2 39.3 3,551 com
43.6 0.0 0.0 16.8 39.7 3,600 com
0.0 0.0 100.0 0.0 305 com
0.0 100.0 0.0 0.0 272 com
10.5 0.0 21.4 22.1 46.0 935 com
100.0 0.0 0.0 0.0 0.0 640 com
0.0 0.0 31.1 31.7 9,948 com
0.0 61.2 12,893 com
2.2 29.5
0.0 100.0 0.0 0.0 7,604 com
15.0 32.3 11.5 25.8 88,197
7.1
0.0
15.5
4.8 19.4 12.5 37.6 456,562

⁷ Site pollution suspected, measures required in new-build plans

⁹ Com = commercial; Res = residential

RESIDENTIAL PROPERT Y DETAILS

Address Acquired Built Year
renovated
Alte Obfelderstrasse 31–35 Aug 2011 2013
Baltenschwilerstrasse 3/5/7/9/11/13/15/17 Oct 2007 1973/1980
Zürichstrasse 244/246 Nov 2005 1966 1997/2001
Seestrasse 43–49 Nov 2005 2011
Seestrasse 63–69 Nov 2005 2011
Avenue d'Ouchy 70 Nov 2009 1906 2004
Avenue d'Ouchy 72/74 Nov 2009 1907
Avenue d'Ouchy 76 Nov 2009 1907 2004
Avenue Edouard Dapples 9/13/15/15a Apr 2013 1900
Place de la Navigation 2 Nov 2009 1895 2004
Rue Beau-Séjour 8 Nov 2009 2011
Rue des Fontenailles 1 Nov 2009 1910/1963 1993
Buchenacker 22/24/26/28; Unterer Buchenacker 7 Jun 2007 1994/1995
Farmanstrasse 47/49 Dec 2010 2008
Rütteliweg 8; Spitalhalde 40 Sep 2006 1972 2004
Teufenerstrasse 15 Dec 2006 1900 2005
Brühlwiesenstrasse 11a/11b/15a/15b/19a/19b Jun 2007 1984/1985/1988
Katzenbachstrasse 221–231 Oct 2004/Feb 2005 2009
Katzenbachstrasse 239 Mar 2008 1969
Manessestrasse 190/192; Staffelstrasse 1/3/5 Dec 2005 2012
Turbinenstrasse 22–32 Dec 2010 2013

21 Residential investment properties 520,140 430,830 4.9 25,411 10.7 7.7

Location Address Ownership Site area in m2 Register of
polluted sites
Affoltern am Albis Alte Obfelderstrasse 31–35 sole ownership 5305 no
Bergdietikon Baltenschwilerstrasse 3/5/7/9/11/13/15/17 sole ownership 11,330 no
Binz Zürichstrasse 244/246 sole ownership 4,025 no
Horgen Seestrasse 43–49 sole ownership 6,047 no
Horgen Seestrasse 63–69 sole ownership 5,307 no
Lausanne Avenue d'Ouchy 70 sole ownership 478 yes4
Lausanne Avenue d'Ouchy 72/74 easement n/a yes4
Lausanne Avenue d'Ouchy 76 sole ownership 738 yes4
Lausanne Avenue Edouard Dapples 9/13/15/15a sole ownership 5,246 no
Lausanne Place de la Navigation 2 sole ownership 254 yes4
Lausanne Rue Beau-Séjour 8 sole ownership 3,827 yes5
Lausanne Rue des Fontenailles 1 sole ownership 853 no
Münchwilen Buchenacker 22/24/26/28; Unterer Buchenacker 7 sole ownership 5,741 no
Opfikon-Glattbrugg Farmanstrasse 47/49 sole ownership 3,840 no
Rheinfelden Rütteliweg 8; Spitalhalde 40 sole ownership 14,817 no
St. Gallen Teufenerstrasse 15 sole ownership 658 no
Wängi Brühlwiesenstrasse 11a/11b/15a/15b/19a/19b sole ownership 7,413 no
Zurich Katzenbachstrasse 221–231 sole ownership 6,137 no
Zurich Katzenbachstrasse 239 sole ownership 1,987 no
Zurich Manessestrasse 190/192; Staffelstrasse 1/3/5 sole ownership 2,345 no
Zurich Turbinenstrasse 22–32 sole ownership 7,431 no
21 Residential investment properties 93,779

¹ Target gross yield as at reporting date 30 June 2014 as% of market value

² Vacancy rate as% of target rental income

⁴ Site pollution unlikely – the property must be maintained in accordance with the design plan ("Gestaltungsplan") and has been subject to comprehensive renovation in recent years

Fair value Acquisition costs
Gross yield
Target rental revenues Vacancy rate as at Vacant area as at
in TCHF in TCHF
in%1
in TCHF 30. 06. 2014 in%2 30. 06. 2014 in%
28,560 4.4 1,257 5.0 2.5
23,323 4.2 988 5.6 4.3
10,250 4.8 490 1.1 0.0
29,390 4.6 1,343 1.0 0.0
27,390 4.6 1,260 11.8 10.3
4,985 5.6 281 0.0 0.0
2,539 5.7 146 0.0 0.0
13,700 4.8 661 0.0 0.0
19,770 4.8 958 0.0 0.0
5,718 5.2 297 0.0 0.0
81,670 5.1 4,166 0.5 2.0
3,284 5.2 171 0.0 9.6
13,435 5.8 780 3.6 2.4
23,340 4.6 1,073 4.1 3.2
18,710 5.7 1,075 6.1 2.9
4,010 4.9 195 1.8 4.3
11,752 6.1 715 0.6 0.5
51,650 4.5 2,334 14.2 12.3
5,744 5.2 300 2.6
53,310 4.9 2,593 11.9 11.2
87,610 4.9 4,331 37.5 35.7
520,140 430,830
4.9
25,411 10.7
Property Total 1 – 1½- 2 – 2½- 3 – 3½- 4 – 4½- 5 or more Total Other forms
description9 rentable room room room room room apartments of use in%
area in m2 apartments apartments apartments apartments apartments
res 4,706 0 1 15 26 0 42 0.8
3 res 5,226 0 8 18 28 0 54 6.0
res 2,580 0 6 12 12 0 30 4.5
res 4,555 0 2 6 24 7 39 6.6
res 4,051 0 0 24 16 0 40 0.5
res+com 1,122 0 0 5 1 4 10 6.9
res 1,073 0 6 3 3 0 12 0.0
res+com 2,536 0 0 0 1 9 10 27.6
res 4,861 0 1 2 28 17 48
res+com 1,313 0 2 0 2 4 8 11.3
res 10,271 0 19 55 16 11 101
res 1,078 1 0 0 4 4 9
3 res 4,358 0 4 20 20 0 44
7 res 3,609 1 13 16 9 0 39
res 5,588 8 30 0 46 0 84
res+com 1,598 1 2 1 7 0 11 30.1
3 res 4,439 0 6 21 21 0 48
res 7,948 0 5 32 27 5 69
res 1,610 0 5 8 5 0 18
res 6,583 0 11 21 20 0 52
res 10,107 6 30 48 12 0 96 12.8
89,211 17 151 307 328 61 864

⁵ Site pollution eliminated – property rebuilt in recent years

⁹ Com = commercial; Res = residential

DETAILS OF INVESTMENT PROPERTIES UNDER CONSTRUCTION

Location Address Ownership Acquired Built
Horgen Seestrasse 93 (Grob site) sole ownership Nov 2005 1956/2015
Lausanne Rue Voltaire 2–12 sole ownership Oct 2012 2014
Regensdorf Schulstrasse 95/101/107/115; Riedthofstrasse 55/63; sole ownership Jun 2007 2015
Feldblumenstrasse 43
Zurich Letzigraben 134–136 sole ownership Sep 2006 1958/1975
4 Properties under construction

All of the above investment properties are in the construction phase. Completion of the property in Lausanne, Rue Voltaire 2–12, is planned for the first half of 2015. Construction of the properties in Horgen, Seestrasse 93 (Grob site), and Regensdorf, Schulstrasse 95, is expected to be completed in the second half of 2015; Zurich, Letzigraben 134–136, is planned for 2016.

OWNER-OCCUPIED PROPERT Y DETAILS

Location Address Ownership Acquired Built
Aarau Buchserstrasse 27 sole ownership Oct 2006 1885
Küsnacht Seestrasse 59 sole ownership Sep 2002 2006
Lausanne Rue de Genève 7 sole ownership Nov 2009 1932
Lausanne Rue des Côtes-de-Montbenon 16 sole ownership Nov 2009 1912
4 Properties

CO - OWNER SHIP DE TAIL S

Location Address Ownership Acquired Built
Lausanne Flonplex co-ownership 40% Nov 2009 2003
Lausanne Parking du Centre co-ownership 50% Nov 2009 2002
Lausanne Parking Saint-François co-ownership 26,5% Nov 2009 1959
3 Properties

⁴ Site pollution unlikely – the property must be maintained in accordance with the design plan ("Gestaltungsplan") and has been subject to comprehensive renovation in recent years

⁵ Site pollution eliminated – property rebuilt in recent years

in TCHF
in m2
polluted sites
property9
Nov 2005
1956/2015
30,330
10,542
yes
com
Oct 2012
2014
35,200
4,743
no
res
area in m2
22,422
8,372
2015
35,120
16,656
no
res
8,967
1958/1975
19,420
5,003
yes
res
6,860
120,070
36,944
46,621
Total rentable Description of Register of Site area Carrying amount Year renovated
area in m2 property9 polluted sites in m2 in TCHF
399 own-use yes (insignificant) 985 762
2,046 com no 2,125 11,487
641 com-share own-use yes4 3,343 3,618 1992/2011
249 com-share own-use yes4 850 602 2007
3,335 7,303 16,469
Address
Ownership
Acquired
Built
Fair value Site area Register of Description of Total rentable
in TCHF in m2 polluted sites property9 area in m2
Flonplex
co-ownership 40%
Nov 2009
2003
9,262 0 yes5 multiplex cinema 5,256
Parking du Centre
co-ownership 50%
Nov 2009
2002
28,180 0 yes5 car park 0
Parking Saint-François
co-ownership 26,5%
Nov 2009
1959
2,533 0 yes7 car park 0
39,975 5,256

⁷ Site pollution suspected, measures required in new-build plans

⁹ Com = commercial; Res = residential

AUDITOR ' S REVIEW REPORT

REVIEW REPORT TO THE BOARD OF DIRECTORS OF MOBIMO HOLDING AG, LUCERNE

Introduction

We have been engaged to review the accompanying consolidated statement of balance sheet of Mobimo Holding AG as at 30 June 2014 and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the six-month period then ended, and selected explanatory notes (the consolidated interim financial information) on pages 18 to 51. The Board of Directors is responsible for the preparation and presentation of this consolidated interim financial information in accordance with International Accounting Standard 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) issued by the SIX Swiss Exchange. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information as at 30 June 2014 is not prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) issued by the SIX Swiss Exchange.

KPMG AG

Kurt Stocker Reto Kaufmann

Lucerne, 31 July 2014

Licensed Audit Expert Licensed Audit Expert

Mobimo EPRA key performance measures

In this section, the Mobimo Group reports its key performance measures in accordance with the Best Practices Recommendations of the EPRA Reporting and Accounting Committee. The European Public Real Estate Association is an association of leading European property companies and is a partner of the FTSE EPRA/NAREIT index family, which added the Mobimo Holding AG share as one of its components on 20 June 2011. The figures published elsewhere by Mobimo on NAV, net initial yield and vacancy rates may deviate from the EPRA figures set out below, as Mobimo does not, for example, include the market value of trading properties, which are accounted for at cost, and bases its calculations on effective rents. However, when calculating earnings per share Mobimo does take account of gains on the sale of trading and investment properties.

A EPRA Earnings & EPRA Earnings Per Share First half of 2014 First half of 2013
Earnings as per IFRS income statement 19,703 41,362
(i)
Changes in value of investment properties, development properties held for investment and other interests
–7,242 –23,642
Profits or losses on disposal of investment properties, development properties held for investment and other
(ii)
interests
–2,321 –1,954
(iii)
Profit on sale of trading properties and services adjusted
8,097 –391
(iv)
Tax on profits or losses on disposals
–1,274 547
(v)
Negative goodwill/goodwill impairment
n/a n/a
(vi)
Changes in fair value of financial instruments and asscociated close-out costs
1,106 –3,405
(vii)
Acquisition costs on share deals and non-controlling joint venture interests
n/a n/a
(viii)
Deferred tax in respect of EPRA adjustments
1,350 6,762
(ix)
Adjustments to positions (i) to (viii) in respect of joint ventures
0 107
(x)
Minority interests in respect of the above
374 0
EPRA Earnings 19,794 19,387
Average number of shares outstanding 6,212,983 6,206,627
EPRA Earnings Per Share 3.19 3.12
B EPRA Net Asset Value 30. 06. 2014 31. 12. 2013
NAV as per consolidated financial statements 1,187,499 1,237,577
Effect of exercise of options, convertibles and other equity instruments 46 167,851
Diluted NAV after the exercise of options, convertibles and other equity instruments 1,187,546 1,405,429
Include
(i.a)
Revaluation of investment properties (if IAS 40 cost model is used)
n/a n/a
(i.b)
Revaluation of investment property under construction (IPUC) (if IAS 40 cost model is used)
n/a n/a
(i.c)
Revaluation of other non-current investments (owner-occupied properties and joint ventures)
11,464 9,818
(ii)
Revaluation of tenant leases held as finance leases
n/a n/a
(iii)
Revaluation of trading properties
10,392 20,119
Exclude
(iv)
Fair value of financial instruments
17,679 5,874
(v.a)
Deferred tax
125,668 126,065
(v.b)
Goodwill as a result of deferred tax
n/a n/a
Adjustments to (i) to (v) in respect of joint ventures 3,822 3,785
EPRA NAV 1,356,570 1,571,090
Diluted no. of shares outstanding 6,216,585 7,026,940
C Triple Net Asset Value (NNNAV) 30. 06. 2014 31. 12. 2013
EPRA NAV 1,356,570 1,571,090
(i)
Fair value of derivative financial instruments
–17,679 –5,874
(ii)
Fair value of financial liabilities
–73,963 –33,511
(iii)
Deferred tax
–109,396 –126,065
EPRA NNNAV 1,155,531 1,405,640
Diluted no. of shares outstanding 6,216,585 7,026,940
EPRA NNNAV per share 185.88 200.04
D EPRA Net Initial Yield 30. 06. 2014 31. 12. 2013
Investment properties – wholly owned 2,237,607 2,102,535
Investment properties – share of joint ventures/funds 37,442 37,716
Trading property 283,580 252,553
Less developments –477,499 –596,516
Completed property portfolio 2,081,130 1,796,288
Allowance for estimated purchasers' costs 0 0
Gross up completed property portfolio valuation 2,081,130 1,796,288
Annualised cash passing rental income 110,268 93,900
Direct cost of investment properties –16,019 –13,481
Annualised net rents 94,249 80,419
Add: additional notional rent expiration of rent free periods or other lease incentives 0 0
Topped-up net annualised rent 94,249 80,419
EPRA net initial yield 4.5% 4.5%
EPRA "topped-up" net initial yield 4.5% 4.5%
E EPRA Vacancy Rate 30. 06. 2014 31. 12. 2013
Estimated rental income potential from vacant space 6,149 3,476
Estimated rental income from overall portfolio 106,635 88,438
EPRA vacancy rate 5.8 % 3.9 %

I. Overview

Share information

Share information as at 30 June (previous years as at 31 December) 2014 2013 2012 2011 2010
Share capital (in TCHF) 180,282 180,220 180,058 178,933 148,804
No. of registered shares issued 6,216,606 6,214,478 6,208,913 6,170,098 5,131,170
Nominal value per registered share (in CHF) 29 29 29 29 29
Of which treasury shares 1,623 2,148 8,744 1,747 1,071
No. of registered shares outstanding 6,214,983 6,212,330 6,200,169 6,168,351 5,130,099

Share data

Ratios in CHF as at 30 June 2014 2013 2012 2011 2010
Earnings per share 3.17 6.66 6.40 6.72 5.68
Earnings per share not including revaluation 2.24 3.81 3.64 4.29 3.24
NAV per share, after options and convertible bond 191.03 193.51 188.44 188.28 191.43
High 198.00 213.60 221.10 213.09 166.28
Low 184.90 186.50 194.42 178.13 152.50
Half-year-end price 188.00 192.20 219.10 206.55 162.90
Average no. of shares traded per day 9 657 12 476 9 307 8 646 6 291
Market capitalisation at year-end (in CHF million) 1,168.7 1,194.4 1,360.2 1,117.8 955.1

Source: SIX Swiss Exchange

The registered shares of Mobimo Holding AG are traded on the SIX Swiss Exchange in Zurich and are listed in accordance with the Standard for Real Estate Companies. Code: MOBN/Swiss security no.: 1110887/ISIN code: CH0011108872/Bloomberg: MOBN SW Equity/Reuters: MOBN.S.

The latest stock market data can be found at www.mobimo.ch

II. Share price performance

1 January 2008 to 30 June 2014

Source: SIX Swiss Exchange and Bloomberg (for comparison purposes, the levels of the three indices were set at 100 as at 1 January 2008)

The Mobimo share price rose slightly in the first half of the year, from CHF 186.10 to CHF 188.00. As at 30 June 2014, Mobimo's share price of CHF 188.00 was below the diluted NAV (net asset value) of CHF 191.03. The liquidity of the Mobimo share and the trading volume decreased slightly. An average of 9,657 (first half of 2013: 12,476) shares were traded per day, corresponding to daily turnover averaging around CHF 1.8 million (first half of 2013: CHF 2.5 million). Total turnover in Mobimo shares on the SIX Swiss Exchange in the first half of 2013 came to CHF 224 million (first half of 2013: CHF 310 million).

III. Bonds

In October 2013, Mobimo successfully issued a CHF 165-million fixed-rate bond with a coupon of 1.5% and a five-year term.

The Mobimo Holding AG bond is traded on the SIX Swiss Exchange in Zurich and is listed in accordance with the Standard for Bonds. Code: MOB13/Swiss security no.: 224923497/ISIN code: CH0224923497/Bloomberg: MOBN SW/Reuters: 785VD6.

MOB14

Source: Bloomberg

In May 2014, Mobimo successfully issued a CHF 200-million fixed-rate bond with a coupon of 1.625% and a seven-year term.

The Mobimo Holding AG bond is traded on the SIX Swiss Exchange in Zurich and is listed in accordance with the Standard for Bonds. Code: MOB14/Swiss security no.: 242984067/ISIN code: CH0242984067/Bloomberg: MOBN SW/Reuters: 792ZMZ.

IV. Communication

Mobimo provides information on its business performance via annual and half-year reports prepared in English, German and French. Price-relevant facts are communicated via ad hoc notices.

Information on our company, the Mobimo share, key dates and answers to commonly asked questions can be found on our website at www.mobimo.ch. The information is updated on an ongoing basis.

To protect the environment, print versions of Mobimo Holding AG's annual and half-year reports are sent out by post only upon request. A summary report on the first half of 2014 will be sent to shareholders.

V. Contact addresses and calendar

Mobimo Holding AG Christoph Caviezel, CEO Manuel Itten, CFO Tel. +41 44 397 11 59 [email protected]

Share register Tel.+41 44 809 58 58 [email protected]

Annual General Meeting 2015 26 March 2015, Pépinières, Lausanne

Financial reporting for 2014 12 February 2015

Mobimo Holding AG

Rütligasse 1 CH-6000 Lucerne 7 Tel. +41 41 249 49 80 Fax +41 41 249 49 89 www.mobimo.ch

Mobimo Management AG Mobimo AG

Seestrasse 59 CH-8700 Küsnacht Tel. +41 44 397 11 11 Fax +41 44 397 11 12

Mobimo Management SA LO Immeubles SA LO Holding Lausanne-Ouchy SA O4Real SA Rue de Genève 7 CH-1001 Lausanne Tel. +41 21 341 12 12 Fax +41 21 341 12 13

The 2014 Half-Year Report is also available in French and German. Only the German original is legally binding.

Publishing details

Overall responsibility: Mobimo Holding AG

Design and layout: Baldinger & Baldinger AG, Aarau

Photos: Michael Kessler, www.profifoto.ch Urs Pichler, www.pichler-fotografen.ch Vincent Jendly, www.vincentjendly.com

Visualisations: comm ag, www.comm.ag

Investment property Office building

Zurich Friesenbergstrasse/Tiergarten

Passion for real estate

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