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Mobimo Holding AG

Interim / Quarterly Report Aug 16, 2012

933_10-q_2012-08-16_ddc84da3-9cd8-4d00-965b-8498a9174440.pdf

Interim / Quarterly Report

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Development property Condominiums and rental apartments

Adliswil «Wilacker» Bernhofstrasse 37a-45a

Mobimo Group (consolidated) 30.06.2012 30.06.2011
Net rental income CHF million 39.8 37.1
Net income from revaluation CHF million 22.7 ¹ 16.6
Profit on sale of trading properties CHF million 8.3 0.5
Operating result (EBIT) CHF million 60.8 46.2
Profit CHF million 39.6 34.5
Return on equity ² 6.9% 7.3%
Profit after tax not including revaluation CHF million 22.6 22.0
Return on equity not including revaluation ³ 4.0% 4.6%
30.06.2012 31.12.2011
Commercial investment properties CHF million 1,151.4 1,133.3
Residential investment properties CHF million 369.8 335.3
Commercial development properties CHF million 317.3 288.2
Residential development properties CHF million 430.8 414.4
Total properties CHF million 2,269.2 2,171.2
Investment property vacancy rate 4.1% 3.3%
Discount rate for revaluation 4.70% 4.76%
Headcount (full time basis)⁴ 82.7 78.9
Rate of interest on financial liabilities 3.1% 3.0%
Residual maturity of financial liabilities Years 9.3 9.2
Equity ratio 47% 47%
Net gearing ⁵ 77% 69%
Mobimo share 30.06.2012 30.06.2011
No. of shares outstanding ⁶ 6,199,208 5,132,706
Earnings per share CHF 6.41 6.72
Earnings per share not including revaluation CHF 3.65 4.29
Distribution ⁷ CHF 9.00 9.00
Nominal value per share CHF 29.00 29.00
NAV per outstanding share after options and convertible bond8 CHF 188.69 188.28
Share price as at 30 June CHF 219.10 217.70
Share capital CHF million 180.0 148.9
Market capitalisation as at 30 June CHF million 1,360.2 1,117.8
Equity as at 30 June CHF million 1,159.1 957.5

¹ CHF 12.3 million of net income from revaluation is attributable to operating performance, with CHF 8.1 million relating to investment properties under construction and a further CHF 4.2 million mainly coming from successful letting. An additional CHF 10.4 million is attributable to market-driven changes in the discount rate

² Profit as a percentage of average equity (equity at 1 January plus capital increase /reduction) for the period under review

  • ³ Profit not including revaluation (and attributable deferred taxes) as a percentage of average equity
  • (equity at 1 January plus capital increase /reduction) for the period under review

⁴ Change in headcount: see Note 14

⁵ Net financial liabilities to equity

⁶ No. of shares issued 6,207,952 less treasury shares 8, 744 = no. of outstanding shares 6,199,208

⁷ Distribution from the capital contribution reserves for the 2011 financial year of CHF 9.00 per share as resolved by the General Meeting on 18 April 2012 As at 31 December 2011, capital contribution reserves totalling around CHF 376 million were accepted by the tax authorities as distributable share premium reserves, of which CHF 55.8 million have been distributed

⁸ Assuming all options granted and conversion rights are exercised

Investment property Commercial property

Aarau, "Polygon" Torfeld Süd site

Key figures 1
About Mobimo 4
The company 6
Group structure and milestones 7
Strategy 8
Portfolio 9
Share and convertible bond information 10
First half of 2012 12
Letter to shareholders 14
Review of first half of 2012 16
Financial report 22
Consolidated interim financial statements 24
• Consolidated balance sheet 24
• Consolidated income statement 26
• Consolidated statement of comprehensive income 27
• Consolidated statement of changes in equity 28
• Consolidated cash flow statement 29
• Notes to the consolidated interim financial statements 30
• Segment reporting 31
• Notes to the consolidated financial statements 34
Property details 46
• Trading property details 46
• Commercial property details 48
• Residential property details 56
• Details of investment properties under construction 58
• Details of properties owned and used by Mobimo 58
• Co-ownership details 58
EPRA performance figures 60
Contact addresses 62

3

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. Acquisitions and investments are targeted mainly in the economic areas of Zurich and Lausanne / Geneva and in Basel, Lucerne / Zug, Aarau and St. Gallen.

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

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 returnoriented 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 and generating 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 2012, the real estate portfolio comprised 127 properties with a value of approximately CHF 2,269 million, which breaks down into CHF 1,521 million for investment properties and CHF 748 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. The medium-term target is for office space, residential and other commercial usage to each account for around 30% of the portfolio.

Secure earnings

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 482,700 m² generated potential rental income of some CHF 100 million p.a. as at 30 June 2012. This means that a high proportion of revenues is stable and predictable. The company's portfolio management team ensures close proximity to the market and allows the company to react swiftly to any changes in the market.

Development properties with appreciation potential

Mobimo is currently planning and realising investment properties (CHF 1,000 million) and condominium properties (CHF 550 mil-

lion) with a total investment volume of around CHF 1,550 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 distribution 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. Over the past five years the dividend yield (nominal value repayment or capital repayment) has consistently averaged in the region of 5%, calculated on the basis of the relevant year-end share price.

G r o u p s t r u ct ure

Mobimo Holding AG
Share capital: CHF 180 million
Paul Rambert, Peter Schaub, Georges Theiler
Andreas Hämmerli, Thomas Stauber
External auditor: KPMG AG
BoD: Urs Ledermann, Daniel Crausaz, Brian Fischer, Bernard Guillelmon, Wilhelm Hansen,
Executive Board: Dr. Christoph Caviezel, Manuel Itten, Peter Grossenbacher,
Mobimo Management AG Mobimo AG LO Holding
Lausanne-Ouchy SA
JJM Participations SA
Share capital: CHF 0.1 million Share capital: CHF 72 million Share capital: CHF 12 million Share capital: CHF 6 million

M i l e s ton e s

1997

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

1999

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

2000

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

2005

On 23 June 2005 Mobimo Holding AG was listed on the SIX Swiss Exchange following a successful IPO, involving an issue volume of CHF 112 million.

2006

On 8 June 2006 Mobimo conducted a capital increase of CHF 143 million; at the end of June 2006 share capital amounted to CHF 225 million and equity to CHF 596 million.

2007

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

2008

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

2009

Mobimo Holding AG's exchange offer for LO Holding Lausanne-Ouchy SA was successfully completed on 9 November 2010. The share capital was increased by CHF 27 million in order to carry out the conversion.

2010

In June 2010, Mobimo Holding AG successfully completed a CHF 175 million convertible bond issue maturing on 30 June 2014.

2011

As part of the restructuring of the Mobimo Group, the assets of Mobimo Finance Ltd. were transferred to Mobimo Holding AG and LO Holding Lausanne-Ouchy SA and the company was subsequently liquidated. The investment in O4Real AG was also transferred to LO Holding Lausanne-Ouchy SA.

A further capital increase of around CHF 193 million took place on 6 December 2011. Mobimo Holding AG issued 1,028,350 new registered shares, which were traded on the SIX Swiss Exchange for the first time on 7 December 2011.

Qualitative growth

Mobimo strives for gradual growth in its real estate portfolio. 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, as well as those of Basel, Lucerne / Zug, Aarau and St. Gallen. Investments are only made in sustainably good locations.

Good portfolio mix

Over the medium term, the investment portfolio should comprise residential, office and commercial properties, each accounting for around 30% of holdings.

Active portfolio management

The real estate portfolio is optimised and adjusted on an ongoing basis. Value is rigorously maintained and increased through the maintaining of relations with lessees, a high level of rental occupancy, cost optimisation and the implementation of effective marketing strategies.

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 proprietary real estate holdings
  • the development, construction and sale of owner-occupied residential property
  • development and investments for third parties.

Sustainability

Quality of life is expressed in the design of living, residential and working space. In addition to economic aspects, Mobimo also incorporates environmental and socio-cultural aspects in its activities. This results in 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 amount to at least 40% of total assets.

Profitable investment

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

R e al es tat e po r t f ol i o a s at 30.06.2012

P o r t f ol i o m i x a s at 30.06.12 ⁴

Bre akdown o f po r t f ol i o b y e conom i c a r e a ⁶

  • 1 Including owner-occupied properties
  • 2 Including commercial properties under construction (investment properties under construction) Aarau Polygon– Industriestrasse, site 3; Affoltern am Albis, Obstgartenstrasse; Horgen, Seestrasse 93 (Meilenwerk); Lausanne, Avenue d'Ouchy 4 – 6 and Lausanne, Vallée du Flon (Les Pépinières), as own-portfolio developments
  • 3 Including residential properties under construction (investment properties under construction) Affoltern am Albis, Obfelderstrasse; Regensdorf, Schulstrasse / Riedthofstrasse / Feldblumenstrasse and Zurich, Turbinenstrasse –City West, site C, as own-portfolio developments
  • 4 Breakdown of target rental income by type of use (overall portfolio without trading properties)
  • 5 Other use mainly comprises: car parks and ancillary uses
  • 6 Breakdown of market/ carrying amounts of properties by economic area (overall portfolio)

9

I. Overview

Share information

Share information as at 30 June
(previous years as at 31December) 2012 2011 2010 2009 2008
Share capital (in TCHF) 180,031 178,933 148,804 192,035 204,230
No. of registered shares issued 6,207,952 6,170,098 5,131,170 5,053,552 4,355,323
Nominal value per registered share (in CHF) 29 29 29 38 47
Of which treasury shares 8,744 1,747 1,071 4,373 10,000
No. of registered shares outstanding 6,199,208 6,168,351 5,130,099 5,049,179 4,345,323

Share data

Ratios in CHF as at 30 June 2012 2011 2010 2009 2008
Earnings per share 6.41 6.72 5.68 8.18 6.80
Earnings per share not including revaluation 3.65 4.29 3.24 6.61 5.30
NAV per share, after options and conversion rights 188.69 188.28 191.43 176.74 183.27
Share price – high ¹ 221.10 213.09 166.28 129.85 151.70
Share price – low¹ 194.42 178.13 152.50 100.77 138.47
Half-year-end price ¹ 219.10 206.55 162.90 126.50 146.25
Average no. of shares traded per day 9,307 8,646 6,291 4,734 3,975
Market capitalisation (in CHF million) 1,360.2 1,117.8 955.1 634.4 816.6

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 2007 to 30 June 2012

Mobimo's share price went up by 5.3% in the first half of 2012, rising from CHF 208.00 to CHF 219.10. As at 30 June 2012 Mobimo's share price of CHF 219.10 was 16.1% above the diluted NAV (net asset value) of CHF 188.69. The liquidity of the Mobimo share and the trading volume remained positive. Average daily trading volume amounted to 9,307 (first half of 2011: 8,646). This was equivalent to a daily trading volume of approximately CHF 2.0 million (first half of 2011: CHF 1.8 million). The Mobimo share generated revenues of CHF 250 million in the first half of 2012 (first half of 2011: CHF 224 million) on the SIX Swiss Exchange.

¹ Historical prices, adjusted for share splits and distributions (source: Bloomberg)

III. Convertible bond

In June 2010, Mobimo successfully completed a CHF 175 million convertible bond issue with a coupon of 2.125 %, maturing in 2014, with a conversion price of CHF 207.99 (the original conversion price before the capital increase of 6 December 2011 was CHF 210.37). Published credit ratings for Mobimo: UBS: BBB stable; ZKB: BBB +.

The convertible bonds of Mobimo Holding AG are traded on the SIX Swiss Exchange in Zurich and are listed in accordance with the Standard for Bonds. Code: MOB10 / Swiss security no.: 11299133 / ISIN code: CH 0112991333, Bloomberg: MOBIMO Corp. / Reuters: CH 11299133.

IV. Shareholders Significant shareholders

The following shareholders held more than 3% of the share capital as at 30 June 2012:

Zuger Pensionskasse 3.38%

Free float as at 30 June 2012 (as per SIX Swiss Exchange definition) 100%

Shareholder structure

V. 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 the website 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 only sent out by post upon request. A summary report on the first half of 2012 is to be sent to shareholders.

VI. Contact addresses and calendar

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

Share register

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

General Meeting 2013

9 April 2013, KKL Lucerne

Financial reporting 2012

14 February 2013

11

T H E 2012 FI NANC I AL YE A R

Investment property Rental and retirement apartments, retirement centre

Affolten am Albis, "Obstgarten" Obfelderstrasse /Obstgartenstrasse

M obimo r e ports good half - y e ar r e s u lts

D e a r Sha r e hold ers, L ad ies and G e ntl e m e n

Mobimo Holding AG is continuing its dynamic momentum into 2012. EBIT increased in the period under review by 32% to CHF 60.8 million (prior year: CHF 46.2 million) and net profit was up by 15% to CHF 39.6 million (prior year: 34.5 million). Excluding last year's extraordinary effect (taxes), profit excluding revaluation rose by 37% to CHF 22.6 million. Both net rental income from the growing investment portfolio and trading and revaluation gains contributed to this pleasing figure. The real estate portfolio reported a total value of CHF 2,269 million (end of prior year: CHF 2,171 million) as at the reporting date of 30 June 2012.

Good market conditions persist despite warnings and gloomy forecasts

The Swiss real estate market continued to prove robust in the first half of 2012. The stable economy, the persistent inflow of immigrants, the need for more living space and the growing number of small households are the main factors driving the continued demand for high-quality living space in the main business centres. Despite calls to exercise restraint by the Swiss National Bank and FINMA, mortgage demand shows no signs of flagging. The low interest rates are making condominiums too attractive for many people when compared to apartment rentals. In contrast, sales of condominiums in the highest price ranges have slowed, with high rents also feasible only in in the best locations. Market demand for centrally located office and commercial space remains sound while properties near Switzerland's borders, in particular in the retail area, are suffering from the strength of the franc and from people crossing over the border to do their shopping in neighbouring countries.

Scheduled construction work

Mobimo made further advances on schedule in this environment, reacting where necessary in response to changes in the market. At the end of the period under review, a new investment property had almost been completed – the "Polygon" office building for Rockwell Automation in Aarau. This now makes it possible to "clear" the rest of the site, which is one of the conditions for the extensive redevelopment of the "Torfeld Süd" site. The transfer of ownership of the first apartments in the "Wilacker" development in Adliswil began in spring, while the construction of the three residential buildings with their 250 rental apartments and condominiums on the "Am Pfingstweidpark" site at the foot of the Mobimo Tower in Zurich West is making good progress. Construction has started on the "Pépinières" complex in Lausanne-Flon and on the mixed development on the OVA site near the station in Affoltern am Albis, where a long-term rental contract has been concluded with the future operator of the site's old people's residence.

Higher income from all areas

Profit from the sale of condominiums (trading properties) rose to CHF 8.3 million (2011: CHF 0.5 million), as ownership was transferred to buyers of condominiums located in several residential properties (Wilacker Adliswil, Mobimo Tower). Apartments were sold for CHF 71.8 million. While demand in the mid-price segment continues to be as high as ever, for example, in the case of "Am Pfingstweidpark" in Zurich and "Wilacker" in Adliswil, the sale of the last 20 high-price apartments in the Mobimo Tower is proving to be more time-consuming than planned, despite sustained high interest. Mobimo also sold the land it had set aside for the construction of luxury properties in Erlenbach in the first half of the year and is primarily focussing on new developments in the mid-price segment.

Net rental income reported a renewed marked rise to CHF 39.8 million (2011: CHF 37.1 million) despite the reduction in the reference interest rate. This is also a consequence of the extensive portfolio adjustments made in the last two years, which have substantially raised the quality of the investment portfolio and rental income.

The progress made on the construction of existing projects, rental income optimisations and the market-related reduction of the discount rate resulted in net income from revaluation of CHF 22.7 million (prior year: CHF 16.6 million).

Attractive projects added to the project pipeline

Mobimo will be able to continue on its growth path. Properties destined for the company's own investment portfolio with an investment volume of around CHF 440 million are currently under construction or close to completion. There are also plans for more projects for the company's own portfolio with an investment volume of some CHF 560 million.

The period under review saw the addition of a former commercial and office building with character located on Badenerstrasse in Zurich Altstetten, which is being converted into attractive condominiums with more than 40 lofts and studios.

Mobimo's development expertise is held in high regard by the market. The new "Investments for Third Parties" business area, in operation since 1 January 2012, is already processing its first major mandate. Mobimo is to develop a residential site with some 250 rental apartments in Dübendorf together with a third-party investor.

The award of a tender for a development partner for the towns of Biel and Nidau was a special honour for Mobimo. Under the name of "AGGLOlac", 130,000 square metres of the former Expo-2002 site on the shores of Lake Biel are to be developed into a new and attractive suburb of the Bernese watch-making metropolis.

Solid financing and a high equity ratio

Mobimo's balance sheet is extremely solid and our business is highly predictable. The average residual maturity of our financial liabilities is 9.3 years and our average interest rates are a modest 3.1%. Our equity amounted to CHF 1,159.1 million as of mid-year 2012, which corresponds to an equity ratio of a substantial 47%. This provides us with a high degree of flexibility in the planning and realisation of our projects.

Positive share price performance

The Mobimo share closed at CHF 219.10 on 30 June 2012, which was 5.3% above its closing price on 31 December 2011. Taking the dividend of CHF 9 per share into account that was paid out on 25 April 2012, this equates to a total performance of 9.7% in the first half of 2012.

Outlook for 2012

We are optimistic about the further course of the current financial year. From the current perspective, the continuation of our usual attractive dividend policy appears to be feasible. The main focus of our activities remains likewise unchanged: realising numerous construction projects, expanding our development business, space marketing, selling condominiums and the targeted optimisation of our project pipeline.

With thanks for the trust you have placed in us,

Board of Directors

Urs Ledermann Dr. Christoph Caviezel Chairman of the Chief Executive Officer

R e n e w e d i nc r e a se i n resu lt s ac r o ss all l e v e l s and gr owth o f th e po r t f ol i o

In the first half of 2012, Mobimo once again posted higher results at all levels year-on-year after reporting a record performance in the 2011 financial year. EBITDA was up 31% year-on-year to CHF 61.5 million (prior year: CHF 46.9 million), while EBIT was up 32% to CHF 60.8 million (prior year: CHF 46.1 million). Earnings before tax (EBT) were CHF 48.5 million (prior year: CHF 35.8 million), which was an increase of 36% over the first half of 2011. Net profit was up 15% to CHF 39.6 million (prior year: CHF 34.5 million), although tax expense in the first half of 2011 had contained a positive non-recurring effect of CHF 5.5 million.

Before revaluations, EBITDA was up 28% to CHF 38.7 million year-on-year (prior year: CHF 30.2 million) and EBIT up 29% to CHF 38.1 million (prior year: CHF 29.5 million). Earnings before tax (EBT) not including revaluations were up 35% to CHF 25.8 million (prior year: CHF 19.1 million) and profit after tax not including revaluations up 3% to CHF 22.6 million (prior year: CHF 22.0 million).

The overall portfolio grew in the first half of 2012 by 5% from CHF 2,171 million as at 31 December 2011 to CHF 2,269 million as at 30 June 2012. A slightly lower average discount rate of 4.70% was applied to real estate valuations as at 30 June 2012 (end of 2011: 4.76%).

Firmly on track after the capital increase and with solid financing

On 6 December 2011 a capital increase was successfully carried out that involved the issue of 1,028,350 new shares and generated new funds of CHF 193 million for the company. The number of shares issued increased correspondingly as at the end of 2011 by 20% to 6,170,098.

Despite the substantially higher number of shares, earnings per share in the half year under review were CHF 6.41 (diluted earnings per share CHF 5.99), which was only slightly below the level of the prior year (CHF 6.72 and CHF 6.65). The company posted earnings per share before revaluations of CHF 3.65 (prior year: CHF 4.29) and diluted earnings per share of CHF 3.57 (prior year: CHF 4.41). With the reported earnings per share, Mobimo is once again well on track with its strategy of sustaining an attractive dividend distribution policy in the 2012 financial year.

Following the distribution of CHF 9 per share from the capital contribution reserves in April 2012, net asset value (NAV) per share was CHF 186.98 as at 30 June 2012 (end of 2011: CHF 190.36) and diluted NAV per share was CHF 188.69 (end of 2011: CHF 191.41) as at 30 June 2012. The shares closed at CHF 219.10 on 30 June 2012, which corresponds to a premium of 16% to the diluted NAV.

With an equity ratio of 47% (when cash is set off against financial liabilities, the equity ratio is about 50%), Mobimo continues to have a very solid capital base.

The average residual maturity of financial liabilities rose slightly to 9.3 years as at 30 June 2012 (end of 2011: 9.2 years). The company took advantage of ongoing extremely attractive interest rates to lock in a very low level of interest rates for the long term. The average interest rate for financial liabilities was 3.09% in the first half of 2012, compared to 3.02% in the prior year. The slight rise in the half year under review was mainly the result of the temporary repayment of shortterm financial liabilities due to high liquidity. By contrast, the average interest rate for long-term financial liabilities was further reduced in the first half of 2012.

Rise in rental income and continued low vacancy rate

Income from the rental of properties in the first half of 2012 was up 8% year-on-year to CHF 46.3 million (prior year: CHF 42.9 million). Eight properties were sold in 2011 as part of the portfolio adjustment process. These portfolio adjustments reduced potential rental income by some CHF 6.7 million a year. This decline was more than offset by the transfer to the investment portfolio of properties under construction that were completed in the 2011 financial year and first half of 2012 offering potential rental income of a total CHF 16.5 million per year. The following properties stemming from the company's own development projects were transferred to the investment portfolio during this period:

  • Lausanne, Place de l´Europe 6
  • Lausanne, Rue de Genève 7
  • Lausanne, Rue Beau-Séjour 8
  • Zurich, Manessestrasse 190 / 192
  • Zurich, Turbinenstrasse Hotel (Mobimo Tower)

As at 30 June 2012, the vacancy rate remained at a low level of 4.1% (end of 2011: 3.3%).

At CHF 39.8 million, net rental income was up 7% over the first half of 2011 (CHF 37.1 million). The net yield achieved on investment properties in the first six months of the year was 4.9% (end of 2011: 5.0%).

Increase in income from the sale of condominiums

As expected, income from the sale of trading properties in the first half of 2012 was well above the prior-year figure at CHF 71.8 million (prior year: CHF 29.1 million). Profit generated on the sale of trading properties of CHF 8.3 million was accordingly well above the prior-year period (CHF 0.5 million). These successful results are mainly due to transfers of ownership from the following projects:

  • Adliswil, Wilacker
  • Erlenbach, Forch-/Glärnischstrasse
  • Zurich, Turbinenstrasse trading property (Mobimo Tower)

As at 30 June 2012, notarised sales agreements to the value of around CHF 157 million had been concluded for condominiums under construction, which will generate proceeds accordingly when ownership of the properties is transferred.

Overall, work on all condominium development property projects proceeded as planned in the 2012 financial year.

Further growth in the project pipeline

Mobimo's growth is driven by the targeted development of residential and commercial properties and the quality of the portfolio is optimised on an ongoing basis. In the first half of the year, the following properties were under construction or in the completion stage:

  • Aarau, Polygon Industriestrasse
  • Affoltern am Albis, Obstgartenstrasse retirement apartments
  • Affoltern am Albis, Obfelderstrasse rental apartments
  • Horgen, Seestrasse 93
  • Lausanne, Avenue d'Ouchy 4 6 (Administration)
  • Lausanne, Les Pépinières
  • Regensdorf, Schulstrasse 95 / 101 / 107 / 115; Riedthofstrasse 55 / 63; Feldblumenstrasse 44
  • Zurich, Turbinenstrasse, City West site C

The investment volume of these projects for the company's own portfolio totals some CHF 440 million. The following projects for the company's own portfolio, involving a total investment volume of CHF 560 million, are also being planned:

  • Aarau, Torfeld site 2
  • Kriens, Mattenhofsite
  • Lausanne, Rue des Côtes-de-Montbenon
  • Lausanne, Rue de Genève 19 / 21
  • Lausanne, Avenue d'Ouchy 4 6
  • Lausanne, Rue de la Vigie 3
  • Zurich, Albulastrasse /Hohlstrasse (Labitzke site)
  • Zurich, Letzigraben

The properties under construction and planned for the company's own portfolio will create additional potential rental income of some CHF 56 million a year.

The first project for the new "Investments for Third Parties" business area was acquired in the first half of 2012:

• Dübendorf, Sonnentalstrasse 10

There are plans to realise a residential construction project for a third-party investor on the same site with a total investment volume of some CHF 120 million.

Manuel Itten, Chief Financial Officer

Lausanne Flon

Lausanne Flon

FI NANC I AL RE P O R T Development property Zurich-Altstetten Badenerstrasse 595

1.1 Consolidat ed balance shee t

All amounts in TCHF Notes 30. 06. 2012 31. 12. 2011
Assets
Current assets
Cash 3 137,347 252,059
Trade receivables 6,084 6,368
Other receivables 13,709 12,113
Trading properties 4 344,193 319,008
Accrued income and prepaid expenses 5,142 4,753
Total current assets 506,475 594,301
Non-current assets
Investment properties
– Commercial properties 5 1,337,434 1,317,333
– Residential properties 5 369,774 335,261
– Investment properties under construction 5 200,867 182,964
Property, plant and equipment
– Owner-occupied properties 6 16,972 16,630
– Other property, plant and equipment 6 1,075 1,039
Intangible assets 3,549 3,524
Investments in associates 7 21,645 20,087
Financial assets 1,990 2,153
Deferred tax assets 3,608 4,647
Total non-current assets 1,956,915 1,883,638
Total assets 2,463,390 2,477,939
All amounts in TCHF Notes 30. 06. 2012 31. 12. 2011
Equity and liabilities
Liabilities
Current liabilities
Current financial liabilities 8 24,824 60,867
Trade payables 26,488 14,557
Current tax liabilities 35,939 33,675
Derivative financial instruments 8 96 306
Other payables 1,673 154
Advance payments from buyers 33,313 25,430
Accrued expenses and deferred income 24,966 28,450
Total current liabilities 147,299 163,439
Non-current liabilities
Non-current financial liabilities 8 1,009,753 1,001,790
Employee benefit obligations 1,629 1,691
Derivative financial instruments 8 28,062 25,052
Deferred tax liabilities 117,520 111,784
Total non-current liabilities 1,156,963 1,140,317
Total liabilities 1,304,262 1,303,756
Equity 9
Share capital 180,031 178,933
Treasury shares –1,910 –374
Capital reserves 443,542 494,308
Retained earnings 537,464 501,316
Total equity 1,159,127 1,174,183
Total equity and liabilities 2,463,390 2,477,939

1. 2.1 Consolidat ed income s tat ement

All amounts in TCHF Notes First half of 2012 First half of 2011
Income from rental of properties 11 46,337 42,878
Direct expenses for rented properties 11 –6,567 –5,826
Net rental income 39,770 37,052
Gains from revaluation of investment properties 12 30,088 20,511
Losses from revaluation of investment properties 12 –7,358 –3,879
Net income from revaluation 22,731 16,632
Income from sale of trading properties 13 71,848 29,059
Expenses from sale of trading properties 13 –63,582 –28,609
Profit from sale of trading properties 8,266 450
Profit from sale of investment properties 0 1,095
Capitalised own account services 2,692 2,452
Other income 302 386
Personnel expenses 14 –8,765 –7,584
Operating expenses –2,242 –2,216
Administrative expenses –1,286 –1,397
Earnings before interest, tax, depreciation and amortisation (EBITDA) 61,467 46,870
Depreciation and amortisation –645 –717
Earnings before interest and tax (EBIT) 60,822 46,153
Share of profit of associates 1,759 1,272
Financial income 401 1,865
Financial expense –14,460 –13,517
Earnings before tax (EBT) 48,521 35,773
Tax expense 15 –8,914 –1,287
Profit 39,608 34,486
Of which attributable to the shareholders of Mobimo Holding AG 39,608 34,486
Of which attributable to minority interests 0 0
EBITDA not including revaluation 38,736 30,238
Operating result (EBIT) not including revaluation 38,091 29,521
Earnings before tax (EBT) not including revaluation 25,790 19,141
Profit after tax not including revaluation (and attributable deferred tax) 22,560 22,021
Earnings per share in CHF
– including revaluation 10 6.41 6.72
– not including revaluation (and attributable deferred tax) 10 3.65 4.29
Diluted earnings per share in CHF
– including revaluation 10 5.99 6.65

1 C on s ol i dat e d i nt eri m fi nanc i al s tat e m e nt s

1.2. 2 Consolidat ed s tat ement of compr ehensive income

All amounts in TCHF First half of 2012 First half of 2011
Profit 39,608 34,486
Cash flow hedges:
– Loss on financial instruments for hedge accounting –2,314 0
– Transfer to income statement –165 –166
– Tax effects 557 37
AFS financial assets
– Transfer to income statement 0 –975
Other comprehensive income /loss –1,922 –1,104
Total comprehensive income /loss 37,686 33,382
– of which attributable to the shareholders of Mobimo Holding AG 37,686 33,382
– of which attributable to minority interests 0 0

1.3 Consolidat ed s tat ement of changes in equ i t y

Treas Market Other Total Equity attributable to
All amounts in TCHF Share ury Capital value Hedging retained retained the shareholders of Minority Total
capital shares reserves reserve reserve earnings earnings Mobimo AG interests equity
As at 1 January 2011 148,804 –183 391,269 975 950 429,524 431,450 971,339 1 971,340
Profit 1 January – 34,486 34,486 34,486 0 34,486
30 June 2011
Cash flow hedges:1
– Transfer to income
statement –166 –166 –166 –166
Tax effects 37 37 37 37
AFS financial assets2
– Transfer to income
statement –975 –975 –975 –975
Other comprehensive –975 –129 0 –1,104 –1,104 –1,104
income /loss
Total comprehensive –975 –129 34,486 33,382 33,382 0 33,382
income /loss
Distribution of capital
contribution reserves –46,204 –46,204 –46,204
Capital increase 96 96 96
Share-based payments:
– BoD and management 1,643 –12 –933 –933 698 698
Acquisition of
treasury shares –1,829 –1,829 –1,829
As at 30 June 2011 148,900 –369 345,053 0 821 463,077 463,899 957,482 1 957,483
As at 1 January 2012 178,933 –374 494,308 0 –9,263 510,579 501,316 1,174,183 0 1,174,183
Profit 1 January – 39,608 39,608 39,608 0 39,608
30 June 2012
Cash flow hedges:1
– Transfer to income statement –165 –165 –165 –165
– Financial instruments for
hedge accounting –2,314 –2,314 –2,314 –2,314
Tax effects 557 557 557 557
Other comprehensive 0 0 0 0 –1,922 0 –1,922 –1,922 0 –1,922
income /loss
Total comprehensive 0 0 0 0 –1,922 39,608 37,686 37,686 0 37,686
income /loss
Distribution of capital
contribution reserves –55,813 –55,813 –55,813
Capital increase 241 241 241
Conversion of convert 857 5,125 5,981 5,981
ible bond 1
Share-based payments:
– BoD and management 2,059 –69 –1,538 –1,538 453 453
Acquisition of treasury shares –4,501 –4,501 –4,501
Sale of treasury shares 906 –9 897 897
As at 30 June 2012 180,031 –1,910 443,542 0 –11,185 548,649 537,464 1,159,127 0 1,159,127

1 The cash flow hedges and convertible bond are described in Note 8 Financial liabilities

2 Sale of the investment in Olmero AG

1.4 Consolidat ed cash flow s tat ement

First half of First half of
All amounts in TCHF Notes 2012 2011
Earnings before tax 48,521 35,773
Net gains from revaluation of investment properties 5 –22,731 –16,632
Share-based payments 453 697
Depreciation on property, plant and equipment 557 555
Amortisation of intangible assets 88 162
Loss (profit) on sale of investment property 0 –1,095
Loss (profit) on sale of property, plant and equipment 0 16
Share of profit of associates –1,759 –1,272
Financial result 14,059 11,652
Change
Trade receivables 284 –1,205
Trading properties –22,720 4,978
Other receivables and accrued income and prepaid expenses –800 –10,530
Employee benefit obligations –62 –40
Trade payables 11,931 7,166
Advance payments from buyers 7,883 8,368
Other current liabilities and accrued expenses and deferred income –3,563 –4,816
Income tax paid –1,726 –400
Net cash from operating activities 30,415 33,377
Acquisition of investment properties 5 –49,285 –94,998
Acquisition of property, plant and equipment –274 –246
Acquisition of intangible assets –113 –4,276
Disposal of financial assets 0 1,766
Disposal of investment properties 5 0 45,983
Dividends received 270 69
Interest received 235 238
Net cash used in investing activities –49,167 –51,464
Proceeds from financial liabilities 51,352 189,463
Repayment of financial liabilities –73,937 –134,796
Net cash from capital increases 241 96
Distribution of capital contribution reserves –55,813 –46,204
Acquisition of treasury shares –4,501 –1,829
Sale of treasury shares 897 0
Interest paid –14,200 –15,850
Net cash used in /from financing activities –95,961 –9,120
Net decrease in cash –114,712 –27,207
Cash at beginning of reporting period 252,059 92,773
Cash at end of reporting period 137,347 65,566

1.5 Not es to the consolidat ed int erim financial s tat ement s

1.5.1 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 managing of commercial, industrial and residential properties, the construction and selling of condominium 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.

1.5.2 Accounting policies

The unaudited consolidated interim financial statements of the Mobimo Group for the first half of 2012 are produced in accordance with International Accounting Standard 34 (IAS 34) on interim financial reporting and comply with Article 17 on accounting (Accounting Guideline) of the SIX Swiss Exchange.

The consolidated interim financial statements as at 30 June 2012 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 2011.

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 listed may be larger or smaller than 100% due to rounding.

The accounting principles applied in the consolidated interim statements correspond to the Group accounting principles set out in the consolidated financial statements for 2011, with the exception of the new standards and interpretations applicable with effect from 1 January 2012. With effect from 1 January 2012, Mobimo has been using the following newly applicable or amended standards and interpretations:

Standard/Interpretation

Amendment to IFRS 7 – Disclosures: Derecognition of Financial Assets

This change had no impact on these interim financial statements.

Amendment to IAS 12 – Deferred Taxes: Recovery of Underlying Assets

Under the amendment to IAS 12, deferred taxes on investment properties are to be determined on a sale basis. This is in keeping with the practice applied by Mobimo and thus had no effect on these interim financial statements.

The following new and amended standards and interpretations have been approved, but will not take effect until a later date and have not been implemented in advance in these interim financial statements.

Standard /Interpretation Entry into force Planned application
by Mobimo
IFRS 10 – Consolidated Financial Statements:
establishes principles for the presentation and
preparation of consolidated financial statements
when an entity controls one or more other enti
* 1 January 2013 2013 financial year
ties.
IFRS 11 – Joint Arrangements:
establishes principles for financial reporting by
parties to a joint arrangement.
* 1 January 2013 2013 financial year
IFRS 12 – Disclosure of Interests in Other Entities
IFRS 13 – Fair Value Measurement

*
1 January 2013
1 January 2013
2013 financial year
2013 financial year
Amendments to IAS 1 – Change to the Presenta
tion of Items of Other Comprehensive Income
** 1 July 2012 2013 financial year
Amendments to IAS 19 – Employee Benefits *** 1 January 2013 2013 financial year
IAS 28 (amended in 2011) – Investments in
Associates and Joint Ventures
* 1 January 2013 2013 financial year
Amendments to IFRS 7 – Disclosures: Offsetting
Financial Assets and Financial Liabilities
* 1 January 2013 2013 financial year
Amendments to IFRSs (May 2012) * 1 January 2013 2013 financial year
Amendments to IAS 32 – Offsetting Financial
Assets and Financial Liabilities
* 1 January 2014 2014 financial year
IFRS 9 – Financial Instruments: Classification and
Measurement
**** 1 January 2015 2015 financial year

IFRS 13

The new IFRS 13 Fair Value Measurement standard was published in May 2011. IFRS 13 does not change the rules as to which items on the balance sheet must be measured at fair value, but it does contain new standard guidelines for determining the fair value of assets, liabilities and equity instruments if its application is required or permitted by another standard. IFRS 13 also contains extended rules on disclosures in the notes. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (i.e. an exit price). With nonfinancial assets, management has to assume the "highest and best use" by a market participant, which may differ from its current use. For Mobimo, IFRS 13 will mainly be of significance in the measurement of investment properties. Based on the information currently available, Mobimo does not

  • * No impact or no significant impact expected on Mobimo's consolidated financial statements
  • ** Additional disclosures or changes in the presentation of Mobimo's consolidated financial statements are primarily expected
  • *** The impact on the consolidated financial statements is explained below

**** Impact on Mobimo's consolidated financial statements has not yet been reliably determined to a sufficient degree

expect the amendments to have a material effect on the value of the overall portfolio.

IAS 19

The most important amendments in the revised standard are as follows: Until now Mobimo has recognised actuarial gains and losses from periodic recalculations in profit or loss on a straight-line basis over the average remaining period of service if they exceeded 10% of the higher of assets and benefit obligations ("corridor method"). With the abolition of the corridor method with effect from 1 January 2013 onwards, actuarial gains and losses will be recognised immediately under other income in equity and not through profit or loss. As at 30 June 2012, these totalled CHF 3.5 million (31 December 2011: CHF 2.2 million). Greater volatility in pension assets/ employee pension obligations and consolidated equity can therefore be expected. In addition, the revised IAS 19 now provides for a net interest component. This is determined by multiplying the net pension obligation by the discount rate. As the net pension obligation covers both obligations and plan assets, this approach implies a netting of interest expense and expected income from plan assets. At the same time, this means that expected income from plan assets will be at the level of the discount rate. Previously, the return on plan assets was estimated in accordance with expected income based on the respective investment portfolio. If the new rule had been applied in the first half of 2012, pension expense would have been CHF 0.07 million higher.

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. If the actual circumstances in the future differ from such estimates and assumptions made by management as at the reporting date to the best of its knowledge and belief, the initial estimates and assumptions will be adjusted in the reporting period during which the circumstances in question changed.

The main estimates and assumptions used in the measurement of assets and liabilities affect, unchanged from the consolidated financial statements as at 31 December 2011, the market values of investment properties, the estimate of construction costs of trading properties and income tax.

1.5.3 Segment reporting

The management structure of the Mobimo Group and thus the internal reporting to the Group's chief operating decision maker is based on the individual divisions. The divisions themselves are structured according to the services and / or activities of the Group.

Reportable segments pursuant to IFRS 8 are the two divisions Portfolio Management and Development. The business activities of these two divisions can be described as follows:

Portfolio management

Portfolio Management focuses on the long-term holding and managing of commercial and residential properties.

This division also handles the buying and selling of investment properties.

Development

This division is responsible for purchasing land as well as for the construction and sale of residential property (newbuilds and development properties). It also holds land, properties under construction and completed properties which will eventually be transferred to the investment property portfolio. These investment properties are purchased with certain construction shortcomings or substantial vacancy rates. As soon as the vacancy rate of a development property falls below 10% on a long-term basis, it is reclassified as an investment property on 1 January of the subsequent year (and is thus transferred to the Portfolio Management division).

Investment properties with a long-term vacancy rate of over 10% where vacancy is unlikely to be brought below 10% on a long-term basis without significant refurbishment measures are transferred from investment properties to development properties. Projects of the "Investments for Third Parties" business area, which is currently being set up, are also included.

The Board of Directors, as the chief operating decision maker, monitors the results of the individual divisions on the basis of EBIT. These figures are determined using the same accounting principles as in the consolidated annual financial statements prepared in accordance with IFRS. Income tax and interest are not included in the segment results and are recognised under Reconciliation. The costs of central functions such as Finance and IT, Marketing and Communication, Legal Services and Central Services, as in the case of the expenses for the Executive Board, are allocated to the segments on the basis of usage. The other revenues and expenses in connection with the Board of Directors are not allocated to the segments and are likewise reported under Reconciliation.

Segment assets include investment properties, investment properties under construction, owner occupied properties, trading properties and trade receivables. No other assets are attributed to the segments. Segment assets are measured in the same way as in the consolidated annual financial statements prepared in accordance with IFRS.

There were no transactions between the individual segments. Accordingly, there was no need to eliminate intersegment transactions.

Since Mobimo operates exclusively in Switzerland, there is no need for a breakdown of revenues and non-current assets by geographical area.

Mobimo did not enter into any transactions with clients amounting to more than 10% of Group revenues.

A further breakdown of income from properties by sub-segment (commercial, residential and trading properties) can be found in Note 11.

Segment information for the first half of 2012

Portfolio
All amounts in TCHF Management Development Total segments Reconciliation Total
Income from rental of properties 41,634 4,703 46,337 46,337
Net income from revaluation 18,178 4,553 22,731 22,731
Income from sale of trading properties 71,848 71,848 71,848
Profit from sale of investment properties 0 0
Total segment income 59,811 81,104 140,915 0 140,915
Segment result EBIT 51,071 10,153 61,223 –402 ¹ 60,822
Financial result –12,300
Earnings before tax (EBT) 48,521
Tax –8,914
Profit 39,608
Trading properties 344,193 344,193 344,193
Investment properties 1,504,156 203,052 1,707,208 1,707,208
Owner occupied properties 16,972 16,972 16,972
Investment properties under construction 200,867 200,867 200,867
Trade receivables 4,805 1,279 6,084 6,084
Total segment assets 1,525,933 749,391 2,275,324 2,275,324
Non-attributed assets 188,066 188,066
Total assets 2,463,390
Depreciation and amortisation –419 –155 –574 –71 –645
Investments in non-current assets 5,028 45,419 50,447 112 50,559

¹ The reconciliation EBIT comprises compensation for the Board of Directors amounting to TCHF 704 and other revenues in an amount of TCHF 302

Segment information for the first half of 2011

Portfolio
All amounts in TCHF Management Development Total segments Reconciliation Total
Income from rental of properties 37,100 5,778 42,878 42,878
Net income from revaluation 12,620 4,012 16,632 16,632
Income from sale of trading properties 29,059 29,059 29,059
Profit on sale of investment properties 1,097 –2 1,095 1,095
Total segment income 50,818 38,847 89,665 0 89,665
Segment result EBIT 42,704 3,813 46,517 –364 ¹ 46,153
Financial result –10,380
Earnings before tax (EBT) 35,773
Tax –1,287
Profit 34,486
Trading properties 282,418 282,418 282,418
Investment properties 1,305,912 154,151 1,460,063 1,460,063
Owner occupied properties 16,048 16,048 16,048
Investment properties under construction 318,431 318,431 318,431
Trade receivables 15,179 231 15,410 15,410
Total segment assets 1,337,139 755,231 2,092,370 2,092,370
Non-attributed assets 122,114 122,114
Total assets 2,214,484
Depreciation and amortisation –497 –115 –612 –105 –717
Investments in non-current assets 1,918 93,973 95,891 4,276 100,167

¹ The reconciliation EBIT comprises compensation for the Board of Directors amounting to TCHF 750 and other revenues in an amount of TCHF 386

1.5.4 Notes to the consolidated financial statements

1. Business combinations

During the first half of 2012 the property at Zurich, Badenerstrasse 595 was purchased through the acquisition of the shares in Ruf Immobilien AG. As the purchased company did not qualify as an operation within the meaning of IFRS 3, the acquisition did not qualify as a business combination but represented a purchase of assets.

As part of restructuring within the companies covered under the scope of consolidation, the companies Flon Events Sàrl, Lausanne, and LO Gestion SA, Lausanne, were merged to form LO Immeubles SA, Lausanne.

2. 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 residential property. 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.

3. Cash

Cash is comprised exclusively of current account deposits at Swiss banks. All of the CHF 137.3 million in cash is freely available.

4. Trading properties

30. 06. 2012 31. 12. 2011
Land 81,609 57,405
Properties under construction 114,457 153,027
Completed real estate and development properties 148,127 108,576
Total trading properties 344,193 319,008

Land holdings changed during the first half of the year due to the sale of the plot at Erlenbach, Forch-/ Glärnischstrasse and the acquisition in Dübendorf, Sonnentalstrasse 10.

The successful completion of the three Wilacker projects in Adliswil reduced the holdings of properties under construction.

Holdings of completed real estate and development properties increased due to the acquisition of the development project at Zurich, Badenerstrasse 595 and the units not yet sold in Adliswil.

5. Investment properties

Investment properties developed as follows:

Investment
Commercial Residential properties under 30 June 2012
First half of 2012 properties properties construction Total
Market value as at 1 January 2012 1,317,333 335,261 182,964 1,835,558
Acquisition costs
As at 1 January 2012 1,168,908 289,161 180,007 1,638,076
Increases from purchases 435 0 4 657 5,092
Increases from investments 9,785 2,501 33,068 45,355
Disposals 0 0 0 0
Transfers from intangible assets 0 0 0 0
Transfers from /to property, plant and equipment –661 0 0 –661
Transfers between segments 0 24,292 –24,292 0
Cumulative acquisition costs as at 30 June 2012 1,178,468 315,954 193,440 1,687,862
Revaluation
Total as at 1 January 2012 148,425 46,100 2,957 197,482
Gains on valuations 16,965 5,018 8,105 30,088
Losses on valuations –6,424 –697 –237 –7,358
Disposals 0 0 0 0
Transfers between segments 0 3,398 –3,398 0
Cumulative revaluation as at 30 June 2012 158,967 53,820 7,427 220,213
Market value as at 30 June 2012 1,337,434 369,774 200,867 1,908,075
Fire insurance value 1,294,607 254,806 161,037 1,710,450
Investment
Commercial Residential properties under 31. 12. 2011
2011 properties properties construction Total
Market value as at 1 January 2011 1,234,893 202,829 270,946 1,708,668
Acquisition costs
As at 1 January 2011 1,104,274 184,195 252,387 1,540,856
Increases from purchases 34,242 0 9,500 43,742
Increases from investments 12,334 2,132 104,264 118,729
Disposals –74,970 0 –62 –75,032
Transfers from intangible assets 0 0 10,691 10,691
Transfers from /to property, plant and equipment 3,245 0 –4,155 –910
Transfers between segments 89,783 102,835 –192,618 0
Cumulative acquisition costs as at 31 December 2011 1,168,908 289,161 180,007 1,638,076
Revaluation
Total as at 1 January 2011 130,618 18,634 18,559 167,811
Gains on valuations 28,397 6,877 19,056 54,330
Losses on valuations –9,369 –1,447 –2,320 –13,136
Disposals –11,521 0 –3 –11,524
Transfers between segments 10,300 22,035 –32,335 0
Cumulative revaluation as at 31 December 2011 148,425 46,100 2,957 197,482
Market value as at 31 December 2011 1,317,333 335,261 182,964 1,835,558
Fire insurance value 1,284,088 293,500 189,953 1,767,542

The following investment properties were acquired in the first half of 2012:

Affoltern am Albis, Obstgartenstrasse (Site II – care home) Investment property under construction
St. Gallen, Wassergasse 42 / 44 (purchase of condominiums) Commercial property

No investment properties were sold during the first half of 2012.

The following properties are shown under Transfers

from to
Regensdorf, Schul- / Riedthof- / Feldblumenstrasse Residential properties Investment properties under construction
Lausanne, Rue des Côtes-de-Montbenon 16 (building parts) Commercial properties Owner-occupied properties
Zurich, Manessestrasse 190 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 2012, the discount rates applied averaged 4.70% (4.76% as at 31 December 2011), within a range from 4.0% to 8.0% (4.1% to 8.0% as at 31 December 2011).

6. Property, plant and equipment

Property, plant and equipment comprises owner-occupied properties, movables, vehicles and computer hardware. It does not include any leased properties.

Owner-occupied properties include the property Küsnacht, Seestrasse 59 as well as part of the property Rue de Genève 7, which is used by Mobimo Management AG as its administrative centre. A room for cultural activities at the property Rue des Côtes-de-Montbenon 16 is also included.

7. Investments in associates and joint ventures

30. 06. 2012 31. 12. 2011
Investment in Flonplex SA, Lausanne (40% stake) 5,934 5,332
Investment in Parking du Centre SA, Lausanne (50% stake) 15,711 14,755
Total 21,645 20,087

8. Financial liabilities

30. 06. 2012 31. 12. 2011
Mortgage amortisation due within 12 months 4,821 4,697
Mortgages due for extension or repayment within 12 months 20,003 56,170
Total current financial liabilities 24,824 60,867
Mortgages 844,796 831,790
Convertible bond 164,958 170,000
Total non-current financial liabilities 1,009,753 1,001,790
Total financial liabilities 1,034,577 1,062,657

All financial liabilities are denominated in Swiss francs.

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

30. 06. 2012 31. 12. 2011
Due within first year 24,824 60,867
Due within second year 236,429 58,513
Due within third year 80,808 254,574
Due within fourth year 26,874 32,287
Due within fifth year 70,586 9,348
Due within sixth year 24,638 73,481
Due within seventh year 93,564 25,254
Due within eighth year 62,238 71,598
Due within ninth year 105,563 133,754
Due within tenth year 72,392 50,438
Due within eleventh year and longer 236,663 292,545
Total financial liabilities 1,034,577 1,062,657

Mortgages amounting to CHF 20.0 million (31 December 2011: CHF 56.2 million) and due for repayment within 12 months are accounted for under current financial liabilities since, as at the reporting date, there was no formal agreement for extension beyond 30 June 2012 (or 31 December 2011 as applicable).

Maturity profile (as at 30 June 2012)

The average residual term of overall financial liabilities was 9.3 years on 30 June 2012 (31 December 2011: 9.2 years).

¹ Non-current financial liabilities include the convertible bond with a carrying amount of CHF 165.0 million (nominal value CHF 168.9 million) maturing on 30 June 2014 in addition to mortgage liabilities

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

30. 06. 2012 31. 12. 2011
Up to one year 24,824 60,867
Up to 2 years 236,429 58,513
Up to 3 years 80,808 254,574
Up to 4 years 26,874 32,287
Up to 5 years 70,586 9,348
Over 5 years 595,056 647,069
Total financial liabilities 1,034,577 1,062,657

Certain mortgage interest rates were hedged in advance by means of forward rate agreements. Such forward rate agreements generally qualify as derivatives embedded in credit agreements and are measured at fair value in accordance with IAS 39. These forward rate agreements were partly classified as cash flow hedges pursuant to IAS 39, and fair value adjustments relating to the effective portion of the hedge are recognised directly in equity via a separate item (hedging reserve). When the hedged interest cash flows take place, cumulative unrealised gains or losses are transferred to the income statement. This applies until 2022. An amount of CHF 0.2 million was reposted to the income statement in the first half of the year. As at 30 June 2012 and 31 December 2011 there were no open forward rate agreements.

Mobimo has concluded separate interest rate hedges (swaps) in an amount of CHF 218.3 million. Of these, CHF 130.0 million (31December 2011: CHF 130.0 million) are classified as cash flow hedges. Consequently, changes in market value were recognised under other income in equity, and not through profit or loss. The fair value of these financial instruments, all with a negative replacement value, amounts to –15.2 million (31December 2011: CHF –12.9 million). In addition, interest rate hedges not classified as cash flow hedges stand at CHF 88.3 million (31 December 2011: CHF 108.3 million). Consequently, market value adjustments were recognised through the income statement. The fair value of these interest rate swaps, all with a negative replacement value, amounts to –13.0 million (31 December 2011: CHF –12.5 million). The market value of all derivatives thus stood at CHF –28.2 million as at 30 June 2012 (31 December 2011: –25.4 million).

In addition to mortgage liabilities, non-current financial liabilities also include a convertible bond that was issued on 30 June 2010 with the following features:

Volume CHF 175 million
Interest rate 2.125% p. a., payable annually on 30 June, with the first payment on 30 June 2011
Term: 4 years (30 June 2010 – 30 June 2014)
Conversion price of CHF 207.99, original conversion price before the capital increase on 6 December 2011 was CHF 210.37
Listing SIX Swiss Exchange

Swiss security no. 11299133

Each convertible bond has a nominal value of CHF 5,000 and can be converted up to seven trading days before the end of the term into registered shares at the conversion price of CHF 207.99 per registered share. The conversion price was adjusted following the capital increase on 6 December 2011 and the resulting dilution; the original conversion price was CHF 210.37 per registered share. A maximum of 841,386 registered shares may be issued at the conversion price under the convertible bond (831,866 before the capital increase). The company has created conditional capital for the creation of the registered shares. The prospective exercise of conversion rights would dilute earnings per share. The convertible bond can be redeemed early at any time if more than 85% of the original bond volume is converted and / or redeemed or, after 21 July 2013, if the closing price of Mobimo Holding AG registered shares on the SIX Swiss Exchange (SIX) is 130% or more of the conversion price over a period of 20 consecutive trading days.

The convertible bond was recognised in the balance sheet as follows at the reporting date:

30. 06. 2012 31. 12. 2011
Convertible bond before issuance costs 170,910 170,910
Pro-rated issuance costs –3,732 –3,732
Amortisation of difference between liability component/redemption amount 3,767 2,821
Conversion of bond into registered shares –5,988 0
Convertible bond (liability component) 164,958 169,999
Equity component before issuance costs 4,090 4,090
./. Pro-rated issuance costs –89 –89
./. Reclassification of deferred taxes on the difference between the carrying amount and taxable value upon issue –610 –610
Equity component upon issue 3,391 3,391
Increase in equity through conversion 5,988 0
Conversion fees and settlement of fractional amounts –19 0
Reversal for deferred tax upon conversion 12 0
Equity component conversions 5,981 0
Provisions for deferred tax upon issue 610 610
Cumulative reversal for deferred tax in income statement –293 –220
Reversal for deferred tax conversion against equity –12 0
Deferred tax liability 305 390

During the first half of the year, bonds with a nominal value of CHF 6.1 million, which represents 3.51% of the issue volume, were converted. In addition to the interest of CHF 1.7 million actually payable, an expense of CHF 0.9 million from amortisation is also included in the income statement, which equates to an effective interest rate of 3.34%.

The average rate of interest on all financial liabilities in the first half of 2012 was 3.09% (full-year 2011: 3.02%).

Financial liabilities amounting to CHF 869.6 million are secured via mortgage liens (31 December 2011: CHF 892.6 million). Some of the credit facilities 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 unutilised mortgage and building loan facilities totalling CHF 167.0 million.

9. Equity

The Annual General Meeting of 18 April 2012 approved a distribution of capital contribution reserves for the 2011 financial year of CHF 9 per share, which was paid on 25 April 2012. The par value of Mobimo shares remains at CHF 29.

Changes in equity can be summarised as follows:

Shares
No. of shares Shares issued Treasury shares outstanding
As at 1 January 2011 5,131,170 –1,071 5,130,099
Issue of shares from conditional capital for options exercised 10,578 10,578
Acquisition of treasury shares –71,736 –71,736
Share-based payments for the acquisition of properties 62,785 62,785
Share-based payments to Board of Directors and management 8,331 8,331
Sale of treasury shares 300 300
Issue of shares from authorised capital for capital increase 1,028,350 1,028,350
Acquisition of treasury shares from capital increase –356 –356
As at 31 December 2011 6,170,098 –1,747 6,168,351
Issue of shares from conditional capital for options exercised 8,315 8,315
Issue of shares from conversion of convertible bond 29,539 29,539
Share-based payments to Board of Directors and management 9,486 9,486
Acquisition of treasury shares –20,591 –20,591
Sale of treasury shares 4,108 4,108
As at 30 June 2012 6,207,952 –8,744 6,199,208

As at 30 June 2012, share capital was CHF 180.0 million, composed of 6,207,952 registered shares with a nominal value of CHF 29 each. 8,744 treasury shares were held as at that date.

8,315 option rights were exercised in the first half of 2012, leading to a CHF 0.2 million increase in share capital.

There is also conditional share capital of a maximum of CHF 34.3 million for the issue of up to 1,183,852 fully paid-up registered shares with a nominal value of CHF 29 each, of which :

  • up to CHF 0.3 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 as part of 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 (up to April 2013) at most via the issue of up to 1,142,111 registered shares, to be fully paid up, with a nominal value of CHF 29 per share.

At CHF 33.1 million, conditional and authorised capital are linked together insofar that upon using this authorised capital, conditional capital in the same amount is no longer available to the Board of Directors. The same applies in the opposite case: if this conditional capital is used, the same amount of the authorised capital is also no longer available. The amount of the authorised share capital of 33.1 million, the amount by which the Board of Directors is authorised to increase share capital by as at 30 June 2012, is thus reduced by the units of the convertible bond still outstanding totalling CHF 23.5 million (conditional capital).

10. Earnings per share

Earnings per share are calculated from the Group result attributable to the shareholders of Mobimo Holding AG, divided 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.

Net asset value (NAV) per share was CHF 186.98 (31 December 2011: CHF 190.36) and diluted NAV was CHF 188.69 (31 December 2011: CHF 191.41).

11. Net rental income

Net rental income can be broken down into the individual divisions as follows:

30. 06. 2012 30. 06. 2011
Commercial properties 36,309 34,838
Residential properties 9,760 7,084
Income from rental of investment properties 46,069 41,922
Trading properties¹ 268 956
Total income from rental of properties 46,337 42,878
Commercial properties 5,115 4,845
Losses on receivables commercial properties 132 229
Residential properties 1,268 645
Losses on receivables residential properties 6 34
Investment property expense 6,520 5,753
Rented trading properties 36 72
Losses on receivables trading properties 11 1
Total direct expenses for rented properties 6,567 5,826
Net rental income 39,770 37,052

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

Commercial Residential
30 June 2012 properties properties Total
Rental income within 1 year 66,513 2,238 68,751
Rental income within 2 to 5 years 201,555 3,202 204,757
Rental income in over 5 years 137,814 2,951 140,766
Total future rental income from non-cancellable rental agreements 405,882 8,391 414,273
Commercial Residential
31 December 2011 properties properties Total
Rental income within 1 year 61,664 3,749 65,413
Rental income within 2 to 5 years 173,403 2,152 175,555
Rental income in over 5 years 197,628 711 198,338
Total future rental income from non-cancellable rental agreements 432,695 6,612 439,306

Residual maturity of fixed-term rental agreements (as at 30 June 2012)

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

30. 06. 2012 31. 12. 2011
Name of tenant Share in % Share in %
Swisscom Group 6.0 6.7
SV (Schweiz) AG 5.3 6.0
Coop 3.5 3.9
MIGR
OS Cooperative Association
3.1 3.5
Rockwell Automation AG 3.1 3.4

12. Net income from revaluation

This profit can be broken down as follows:

30. 06. 2012 30. 06. 2011
Gains from revaluation of residential properties 4,322 1,322
Gains from revaluation of commercial properties 10,541 11,175
Gains from revaluation of investment properties under construction 7,868 4,135
Total net income from revaluation 22,731 16,632

13. Profit on sale of trading properties

This profit can be broken down as follows:

30. 06. 2012 30. 06. 2011
Proceeds from sale of trading properties 71,848 29,059
Total income from sale of trading properties 71,848 29,059
Acquisition costs of trading properties sold 62,935 28,566
Creation of valuation allowances 650 43
Valuation allowance reversal –4 0
Total expenses from sale of trading properties 63,582 28,609
Profit on sale of trading properties 8,266 450

14. Personnel expenses

The average number of full-time equivalents increased from 75.9 at mid-year 2011 to 82.7 at mid-year 2012 due to the filling of vacancies and increased staffing levels in certain areas.

15. Tax expense

In the first half of 2012, no one-off effects had an impact on the level of tax expense. In the prior-year period (first half of 2011), tax expense was influenced by the reversal of tax provisions totalling CHF 5.5 million as a result of the implementation of the ruling of the Swiss Federal Supreme Court on 4 April 2011, which brought an end to a long-running legal dispute between Mobimo Holding AG ("Mobimo") and the City of Zurich. The dispute was about the possibility of deducting expenses and loss carryforwards in connection with the assessment of property gains tax. As a result of the Supreme Court ruling, which was positive for Mobimo, it was possible to release tax provisions. There are still a number of open issues currently being clarified with the local tax authorities relating to how the Supreme Court judgement is to be effectively implemented.

16. Capital commitments

As at 30 June 2012, capital commitments amounted to CHF 85.1 million. These commitments relate to the investment properties under construction at Aarau, Polygon – Industriestrasse, site 3; Affoltern am Albis, Obstgartenstrasse; Affoltern am Albis, Obfelderstrasse; Lausanne, Avenue d'Ouchy 4 – 6; Lausanne, Vallée du Flon (Les Pépinères); and Zurich, Turbinenstrasse –City West, site C.

17. Contingencies

There are no contingent liabilities.

18. Events after the reporting date

The consolidated interim financial statements were approved by the Board of Directors on 13 August 2012. No other events took place between 30 June 2012 and the approval date of these consolidated interim financial statements that would require adjustments being made to the carrying amounts of assets and liabilities as at 30 June 2012.

2.1 T r ad i n g p r op e r t y d e ta i l s

Location Address Site Register of Construction Acquired
area in m² polluted year
sites
Building land
Dübendorf Sonnentalstrasse 10 11,292 No May 2012
Herrliberg Rigiweg 5,082 No Nov 2008
Lucerne Büttenenhalde 7,115 No Dec 2011
Meilen Feldgüetliweg 143 / 145 2,660 No Aug 2011
Müllheim Grüenegg 10,500 No Mar 2011
Weggis Hertensteinstrasse 105 3,043 No May 2010
39,692
Properties under
construction
Horgen Stockerstrasse 40 – 42 (Wiesental II) 7,047 No Nov 2005
Zurich Hinterbergstrasse 53 2 1,465 No July 2010
Zurich Turbinenstrasse Site A 5,144 No May 2011
Zurich Turbinenstrasse Site B 5,965 No May 2011
19,621
Completed properties
Aarau Buchserstrasse 8 241 No Mar 2011
Adliswil Wilacker I 7,231 No Dec 2007
Adliswil Wilacker II 10,935 No Dec 2007
Egerkingen Einschlagstrasse 8,729 No Mar 2011
Horgen Stockerstrasse 27 – 29 5,490 No Nov 2005
Horgen Stockerstrasse 40 – 42 (Wiesental I) 7,633 No Nov 2005
Horgen Stockerstrasse 54 919 No Nov 2006
Lucerne Guggistrasse 10 / 12 / 12a 2 3,004 No 1979 July 2007
St. Moritz Via Maistra 29 2 557 No July 2010
Zurich Badenerstrasse 595 2 2,389 No May 2012
Zurich Im Brächli 5 / 7 / 9 2 2,144 No 1955 Aug 2009
Zurich Turbinenstrasse Promotion (Mobimo Tower) 1,936 No May 2008
51,208

³ Sale of land

¹ Status: certified purchase agreement

² Development properties

Sales status Carrying value Realisation Project status Sales volume Description
30. 06. 2012 ¹ 30. 06. 2012 30. 06. 2012 in TCHF
in TCHF
open 35,522 open in planning open open
0 / 8 17,715 2012 / 2013 in planning open 8 Condos
0 / 23 5,447 open in planning 29,391 23 Condos
0 / 14 10,910 2012 / 2014 Construction project 30,000 14 Condos
1/1 1,861 2012 for sale n / a n / a
open 10,154 open in planning open open
81,609 59,391
20 / 43 27,739 2011 / 2013 Construction project 51, 852 43 Condos
10 / 11 17,464 2011 / 2013 Construction project 25,570 11 Condos
46 / 63 28,216 2011 / 2013 Construction project 60,740 63 Condos
57 / 81 41,038 2011 / 2013 Construction project 76, 335 81 Condos
114,457 214,437
470 open in planning open Residential building
22 / 33 26,457 2010 / 2012 for sale 34,644 33 Condos
13 / 24 12,211 2010 / 2012 for sale 27,690 24 Condos
2,879 open for sale open 4 Condos
39 / 39 7 2007 / 2009 for sale 41,284 39 Condos
47 / 47 6 2008 / 2010 for sale 60,192 47 Condos
1,503 2009 / 2010 for sale 8,950 4 Condos
2008 / 2011 for sale 15,936 9 Condos
20
open
open
15,574 2013 / 2014 in planning open open
20,130 open in planning open open
33 /53 8,352
60,519
2011 / 2014
2008 / 2011
in planning
for sale
26,775
173,610
17 Condos
53 Condos

Geog raphic br eakdown of trading propert ies

As at 30 June 2012, 22 trading properties were carried in the balance sheet, of which

17 newbuild projects (31 December 2011: 19)

5 development properties (31 December 2011: 5) The geographic focus of the residential development properties is the Canton of Zurich, primarily the city of Zurich itself and the Lake Zurich region.

Percentage breakdown of carrying amounts in CHF

Canton of Zurich Canton of Lucerne Canton of Grisons Canton of Solothurn Canton of Thurgau

Canton of Aargau

2 Pro p ert y details

2.2 C omm e r c i al p r op e r t y d e ta i l s

Location Address Acquired Construction year Year
renovated
Aarau Bahnhofstrasse 102 (Mediapark) Mar 2004 1975 1998
Aesch Pfeffingerring 201 May 2007 1973
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 July 2008 1984 2008
Horgen Seestrasse 80 Nov 2005 1960 2000 / 2008
Horgen Seestrasse 82 Nov 2005 2010 / 2011
Kreuzlingen Hauptstrasse 37 Sep 2005 1987
Kreuzlingen Lengwilerstrasse 2 April 2007 2007
Kreuzlingen Leubernstrasse 3 Nov 2006 1983 / 2003 2003
Kreuzlingen Romanshornerstrasse Nov 2006 n / a
Kriens Sternmatt 6 Feb 2004 1986 2008
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 2011
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 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 Nov 2009 1946 1998
Lausanne Rue des Côtes-de-Montbenon 16 Nov 2009 1912 2007
Lausanne Rue des Côtes-de-Montbenon 24 / 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 (Miroiterie) Nov 2009 2008
Lausanne Rue du Port-Franc 17 (Les Colonnades) Nov 2009 2002
Lausanne Rue du Port-Franc 20; Rue de Genève 33 Nov 2009 2007
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
Lucerne Alpenstrasse 9 Jun 2007 1890 2001/2010
Neuhausen Victor-von-Bruns-Strasse 19 Mar 2007 2007

¹ Target gross yield as at reporting date 30. 06. 2012 as % of market value

² Vacancy rate as % of target rental income

Market value Acquisition costs Gross yield Target rental revenues Vacancy rate as at Vacant space as at
in TCHF in TCHF in %¹ in TCHF 30. 06. 2012 in %² 30 06. 2012 in %
27,450 7.4 2,028 8.0 6.8
26,150 7.5 1,962 1.4 0.0
17,920 7.4 1,319 11.6 16.2
27,870 5.6 1,554 1.8 2.3
3,102 5.9 183 0.0 0.0
11,410 6.5 740 12.7 10.8
27,420
21,930
6.7
6.2
1,831
1,361
6.8
3.3
8.0
3.8
16,720 6.4 1,067 8.3 9.7
8,066 6.4 517 0.2 0.0
6,504 2.8 179 0.0 0.0
11,800 5.9 698 0.0 0.0
6,429 5.0 324 0.0 0.0
66,660 5.5 3,682 1.5 1.8
1,925 4.2 81 0.0 n / a
37,860 8.2 3,104 17.9 21.8
4,440 4.7 210 0.0
7,770 5.5 427 0.0
25,510 5.8 1,481 0.0
10,060 6.7 676 0.0
5,270 5.7 298 0.0
7,634 5.9 454 0.0
7,223 5.2 374 0.0
20,940 6.0 1,253 0.0
23,210 5.6 1,307 0.0
30,160 5.2 1,580 0.0
18,990 7.2 1,374 0.0
2,100 8.7 182 0.0
6,864 6.3 431 1.6
11,650 7.3 854 0.0
6,447 5.4 349 0.5
7,733 6.8 528 0.7
4,514 5.8 263 0.0
1,725 4.6 79 0.0
2,092 3.5 74 0.0
5,554 6.2 342 0.0
13,530 6.6 895 1.3
11,300 6.3 714 0.0
48,020 6.7 3,193 0.0
21,790 5.6 1,219 0.0
14,020 6.0 841 2.0
30,470 6.1 1,872 0.0
29,900 5.6 1,681 1.0
10,880 4.6 501 0.0
13,090 5.5 725 0.0

2 P r op e r t y d e ta i l s

2.2 C omm e r c i al p r op e r t y d e ta i l s

Location Address Acquired Construction year Year
renovated
Renens Chemin de la Rueyre 116 / 118 Mar 2007 1989
St. Gallen Schochengasse 6 Feb 2004 1974 2000
St. Gallen St. Leonhardstrasse 22 Dec 2004 1900 2002 / 2006
St. Gallen Wassergasse 42 / 44 Feb 2004 1966 2000
St. Gallen Wassergasse 50 / 52 Feb 2004 1998
Winterthur Industriestrasse 26 Oct 1999 1994 2002
Zurich Bahnhofplatz 4 July 2006 1881 2002 / 2005
Zurich Friedaustrasse 17 Oct 1998 1968
Zurich Hardturmstrasse 3 / 5 (Mobimo Tower) Nov 1999 1974 2001 / 2008
Zurich Letzigraben 134 – 136 Sep 2006 1958 / 1975
Zurich Rautistrasse 12 Nov 1999 1972 2011
Zurich Schifflände 6; Kruggasse 1 May 1998 1950
Zurich Stauffacherstrasse 41 Jun 2000 1990 2011
Zurich Thurgauerstrasse 23; Siewerdtstrasse 25 Mar 2002 1963 / 1968 / 1985
Zurich Turbinenstrasse –Mobimo Tower Hotel May 2008 2011
Zurich Witikonerstrasse 311 / 311b Sep 1997 1992
61 Commercial investment properties
Aarau Site 1 – Torfeld Süd June 2001 /Aug 2008 1967 / 1984
Aarau Site 2 – Torfeld Süd Oct 2006 1905 / 1916 / 1929 / 1943 / 1954
Aarau Site 3 – Torfeld Süd June 2001 / 1905 / 1916 / 1929 / 1943 /
Oct 2006 1954 / 1974
Aarau Site 4 – Torfeld Süd Juni 2001 /Oct 1905 / 1914 / 1916 / 1929 /
2006 / Feb 2009 1943 / 1954 / 1967 / 1973
Kriens Mattenhof (building land) Mar 2005 n / a
Lausanne Avenue d'Ouchy 4 – 6 May 2010 1962
Lausanne Rue de Genève 19 Nov 2009 1893 2002
Lausanne Rue de Genève 21 Nov 2009 1902
Lausanne Rue des Côtes-de-Montbenon 1 / 3 Nov 2009 1930
Lausanne Rue des Côtes-de-Montbenon 5 Nov 2009 1930
Lausanne Rue des Côtes-de-Montbenon 11 Nov 2009 1935
Lausanne Rue des Côtes-de-Montbenon 12 Nov 2009 1918 2004
Lausanne Rue des Côtes-de-Montbenon 14 Nov 2009 1963
Regensdorf Althardstrasse 10 Dec 2001 1982
Regensdorf Althardstrasse 30 Dec 2001 1976
Zurich Albulastrasse /Hohlstrasse Feb 2010 1896
16 Commercial development properties
77 Total commercial properties

¹ Target gross yield as at reporting date 30. 06. 2012 as % of market value

² Vacancy rate as % of target rental income

Market value Acquisition costs
Gross yield
Target rental revenues Vacancy rate as at Vacant space as at
in TCHF in TCHF in %¹
in TCHF
30. 06. 2012 in %² 30 06. 2012 in %
12,320 7.0
860
8.2 6.7
17,630 6.1
1,075
0.0 1.7
4,429 5.9
263
0.0 0.0
15,660 6.2
968
14.1 16.2
13,490 6.2
834
0.0 0.0
20,180 7.2
1,456
9.5 7.8
19,700 4.6
910
0.0 0.0
8,468 6.4
541
3.9 3.9
57,930 5.6
3,259
0.3 0.0
13,890 6.8
944
13.5 15.2
20,000 6.7
1,345
9.9 10.2
6,929 4.8
331
0.0 0.0
47,820 5.0
2,379
0.0 0.0
14,540 6.6
958
0.0
130,510 4.1
5,405
0.0
8,784 6.5
574
22.2
1,134,382 5.9
66,909
3.2
9,988 0.3
27
91.1
7,546 2.8
208
73.8
25,427 5.9
1,494
0.0
17,659 7.1
1,260
69.8
3,187 0.0
n / a
n / a
64,600 5.5
3,565
37.0
2,779 13.5
374
11.9
2,584 11.0
284
1.3
608 14.0
85
8.5
251 11.2
28
0.0
150 8.3
12
0.0
1,648 8.5
140
0.0
445 8.1
36
0.0
17,130 9.8
1,672
43.5
15,000 14.2
2,129
97.8
34,050 4.1
1,399
n / a
203,052 6.3
12,715
43.1 38.0
1,337,434 6.0
79,623
9.6

2 P r op e r t y d e ta i l s

2.2 C omm e r c i al p r op e r t y d e ta i l s

Location Address Ownership Site area Register of Property Total rentable
Office space
Sales space Commercial
Residential
in m2 polluted sites description ⁹ space in m² in %
in %
space in %
space in %
Aarau Bahnhofstrasse 102 (Mediapark) Sole ownership 5,675 No CB 13,165 55.7
0.0
9.1
1.5
Aesch Pfeffingerring 201 Sole ownership 16,034 No details CB 14,219 28.3
0.0
63.0
0.0
Baden-Dättwil Im Langacker 20 / 20a / 22 Sole ownership 8,792 No CB 9,429 22.4
28.3
30.3
1.0
Brugg Bahnhofstrasse 11 Condominium 2,726 No CB 4,076 33.0
33.3
28.7
0.0
Bülach Bahnhofstrasse 39 Sole ownership 563 No CB 944 64.8
16.6
0.0
0.0
Dierikon Pilatusstrasse 2 Sole ownership 4,397 No CB 4,397 60.3
15.8
15.3
0.0
Dübendorf Sonnentalstrasse 5 Condominium 4,368 Yes (code D) 3 CB 8,769 23.5
0.0
65.4
0.0
Dübendorf Zürichstrasse 98 Sole ownership 9,719 Yes (petrol station / code D) 3 CB 10,165 28.8
16.5
27.9
1.1
Herisau Obstmarkt 1 Sole ownership 1,602 No CB 6,088 55.7
2.1
7.0
0.0
Horgen Seestrasse 80 Sole ownership 3,393 No CB 2,151 76.2
0.0
19.0
0.0
Horgen Seestrasse 82 Sole ownership 0 No Car park 64 0.0
0.0
0.0
0.0
Kreuzlingen Hauptstrasse 37 Sole ownership 1,448 No CB 2,792 50.2
17.9
0.0
0.0
Kreuzlingen Lengwilerstrasse 2 Sole ownership 7,027 No CB 1,348 0.0
66.5
0.0
0.0
Kreuzlingen Leubernstrasse 3 Sole ownership 25,530 No CB 17,835 8.8
89.3
0.0
0.0
Kreuzlingen Romanshornerstrasse Sole ownership 2,180 No building right n / a 0.0
0.0
0.0
0.0
Kriens Sternmatt 6 Sole ownership 28,757 No CB 27,605 25.4
3.5
48.6
0.9
Lausanne Flonplex Sole ownership 1,953 Yes8 Building right 1,953 0.0
0.0
0.0
0.0
Lausanne Parking du Centre Sole ownership 5,065 Yes8 Building right 6,526 0.0
0.0
0.0
0.0
Lausanne Place de la Gare 4 Sole ownership 630 No CB 4,485 66.6
13.7
0.0
0.0
Lausanne Place de la Navigation 4 – 6 Sole ownership 567 Yes⁴ CB – hotel 2,800 0.0
0.0
0.0
0.0
Lausanne Place de l'Europe 6 Sole ownership 369 Yes⁴ CB – hotel 923 0.0
0.0
0.0
0.0
Lausanne Place de l'Europe 7 Sole ownership 391 Yes⁴ CB 1,423 66.3
7.9
0.0
0.0
Lausanne Place de l'Europe 8 Sole ownership 1,035 Yes⁴ CB 1,593 75.5
24.5
0.0
0.0
Lausanne Place de l'Europe 9 Sole ownership 975 Yes⁴ CB 3,492 43.3
31.3
0.0
0.0
Lausanne Rue de Genève 2 / 4 / 6 / 8 Sole ownership 2,260 Yes⁴ CB 4,401 10.3
89.7
0.0
0.0
Lausanne Rue de Genève 7 Sole ownership 3,343 Yes⁴ CB–share investment prop. 5,114 12.4
27.2
0.0
20.9
Lausanne Rue de Genève 17 Sole ownership 2,312 Yes⁴ CB 6,680 43.4
20.8
7.2
0.0
Lausanne Rue de Genève 23 Sole ownership 2,524 Yes6 CB 2,104 0.0
0.0
0.0
0.0
Lausanne Rue de la Vigie 3 Sole ownership 972 Yes7 CB 3,104 54.9
0.0
0.0
0.0
Lausanne Rue de la Vigie 5 Sole ownership 852 Yes7 CB 3,645 61.6
0.0
0.0
0.0
Lausanne Rue des Côtes-de-Montbenon 6 Sole ownership 510 Yes⁴ CB 2,182 37.0
18.5
26.7
0.0
Lausanne Rue des Côtes-de-Montbenon 8 Sole ownership 587 Yes⁴ CB 2,226 73.9
0.0
3.6
0.0
Lausanne Rue des Côtes-de-Montbenon 16 Sole ownership 850 Yes⁴ CB – share investment prop. 819 66.4
0.0
0.0
33.6
Lausanne Rue des Côtes-de-Montbenon 24 / 26 Sole ownership 867 Yes8 Building right 867 0.0
0.0
0.0
0.0
Lausanne Rue des Côtes-de-Montbenon 28 / 30 Sole ownership 1,068 Yes7 Building right 1,068 0.0
0.0
0.0
0.0
Lausanne Rue du Port-Franc 9 Sole ownership 995 Yes6 CB 1,733 21.9
20.5
42.4
0.0
Lausanne Rue du Port-Franc 11 (Miroiterie) Sole ownership 612 Yes5 CB 2,309 0.0
57.9
0.0
0.0
Lausanne Rue du Port-Franc 17 (Les Colonnades) Sole ownership 776 Yes5 CB 2,142 57.9
0.0
0.0
24.9
Lausanne Rue du Port-Franc 20; Rue de Genève 33 Sole ownership 2,000 Yes5 CB 9,971 34.9
65.1
0.0
0.0
Lausanne Rue du Port-Franc 22; Rue de la Vigie 1 Sole ownership 1,999 Yes5 CB 4,066 81.3
8.9
0.0
0.0
Lausanne Voie du Chariot 3 Sole ownership 500 Yes5 CB 2,168 75.5
15.5
0.0
0.0
Lausanne Voie du Chariot 4 / 6 Sole ownership 2,614 Yes5 CB 5,438 32.0
65.2
0.0
0.0
Lausanne Voie du Chariot 5 / 7 Sole ownership 1,042 Yes5 CB 5,030 54.3
15.9
0.0
13.8
Lucerne Alpenstrasse 9 Sole ownership 569 No RB + CB 1,979 55.5
13.1
0.0
21.6
Neuhausen Victor-von-Bruns-Strasse 19 Sole ownership 1,597 No CB 2,806 93.8
0.0
0.0
0.0

⁵ Site pollution eliminated – property rebuilt in recent years

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

Property Total rentable Office space Sales space Commercial Residential Other
description ⁹ space in m² in % in % space in % space in % uses in %
CB 13,165 55.7 0.0 9.1 1.5 33.7
CB 14,219 28.3 0.0 63.0 0.0 8.6
CB 9,429 22.4 28.3 30.3 1.0 18.0
CB 4,076 33.0 33.3 28.7 0.0 5.0
CB 944 64.8 16.6 0.0 0.0 18.5
CB 4,397 60.3 15.8 15.3 0.0 8.6
CB 8,769 23.5 0.0 65.4 0.0 11.1
CB 10,165 28.8 16.5 27.9 1.1 25.7
CB 6,088 55.7 2.1 7.0 0.0 35.2
CB 2,151 76.2 0.0 19.0 0.0 4.8
Car park 64 0.0 0.0 0.0 0.0 100.0
CB 2,792 50.2 17.9 0.0 0.0 31.9
CB 1,348 0.0 66.5 0.0 0.0 33.5
CB 17,835 8.8 89.3 0.0 0.0 1.9
0.0
building right n / a 0.0 0.0 0.0 0.0
CB 27,605 25.4 3.5 48.6 0.9
Building right 1,953 0.0 0.0 0.0 0.0 100.0
Building right 6,526 0.0 0.0 0.0 0.0 100.0
CB 4,485 66.6 13.7 0.0 0.0
CB – hotel 2,800 0.0 0.0 0.0 0.0 100.0
100.0
CB – hotel 923 0.0 0.0 0.0 0.0
CB 1,423 66.3 7.9 0.0 0.0
CB 1,593 75.5 24.5 0.0 0.0
CB 3,492 43.3 31.3 0.0 0.0
CB
CB–share investment prop.
4,401
5,114
10.3
12.4
89.7
27.2
0.0
0.0
0.0
20.9
CB 6,680 43.4 20.8 7.2 0.0
CB 2,104 0.0 0.0 0.0 0.0
CB 3,104 54.9 0.0 0.0 0.0 100.0
CB 3,645 61.6 0.0 0.0 0.0
CB 2,182 37.0 18.5 26.7 0.0
CB 2,226 73.9 0.0 3.6 0.0
CB – share investment prop. 819 66.4 0.0 0.0 33.6
Building right 867 0.0 0.0 0.0 0.0 100.0
Building right 1,068 0.0 0.0 0.0 0.0 100.0
CB 1,733 21.9 20.5 42.4 0.0 15.2
CB 2,309 0.0 57.9 0.0 0.0 42.1
CB 2,142 57.9 0.0 0.0 24.9
CB 9,971 34.9 65.1 0.0 0.0
CB 4,066 81.3 8.9 0.0 0.0
CB 2,168 75.5 15.5 0.0 0.0
CB 5,438 32.0 65.2 0.0 0.0
CB 5,030 54.3 15.9 0.0 13.8
RB + CB 1,979 55.5 13.1 0.0 21.6
CB 2,806 93.8 0.0 0.0 0.0
  • ⁶ Site pollution suspected but no measures expected property must be maintained in accordance with the "Gestaltungsplan"
  • ⁸ Building-right plots on which newbuild projects have been completed in recent years
  • ⁷ Site pollution suspected. measures required for newbuild projects
  • ⁹ CB = commercial building; RB = residential building

53

2 P r op e r t y d e ta i l s

2.2 C omm e r c i al p r op e r t y d e ta i l s

Location Address Ownership Site area Register of
in m² polluted sites
Renens Chemin de la Rueyre 116 / 118 Sole ownership 4,503 No
St. Gallen Schochengasse 6 Sole ownership 1,316 No
St. Gallen St. Leonhardstrasse 22 Sole ownership 219 No
St. Gallen Wassergasse 42 / 44 Condo (867 / 1,000) 1,714 No
St. Gallen Wassergasse 50 / 52 Sole ownership 1,373 No
Winterthur Industriestrasse 26 Sole ownership 3,635 Yes (code D) 3
Zurich Bahnhofplatz 4 Sole ownership 189 Yes
Zurich Friedaustrasse 17 Sole ownership 869 No
Zurich Hardturmstrasse 3 / 5 (Mobimo Tower) Sole ownership 2,151 Yes
Zurich Letzigraben 134 – 136 Sole ownership 5,003 Yes
Zurich Rautistrasse 12 Sole ownership 1,894 Yes (petrol station)
Zurich Schifflände 6; Kruggasse 1 Sole ownership 120 No
Zurich Stauffacherstrasse 41 Sole ownership 1,405 No
Zurich Thurgauerstrasse 23; Siewerdtstrasse 25 Sole ownership 2,657 No
Zurich Turbinenstrasse –Mobimo Tower Hotel Sole ownership 5,808 No
Zurich Witikonerstrasse 311 / 311b Sole ownership 1,846 No
61 Commercial investment properties 196,747
Aarau Site 1 – Torfeld Süd Sole ownership 3,774 Yes (insignificant)
Aarau Site 2 – Torfeld Süd Sole ownership 12,692 Yes (insignificant)
Aarau Site 3 – Torfeld Süd Sole ownership 14,249 Yes (insignificant)
Aarau Site 4 – Torfeld Süd Sole ownership 13,032 Yes (insignificant)
Kriens Mattenhof (building land) Sole ownership 3,666 No
Lausanne Avenue d'Ouchy 4 – 6 Sole ownership 12,609 Yes7
Lausanne Rue de Genève 19 Sole ownership 2,733 Yes6
Lausanne Rue de Genève 21 Sole ownership 2,524 Yes6
Lausanne Rue des Côtes-de-Montbenon 1 / 3 Sole ownership 1,101 Yes7
Lausanne Rue des Côtes-de-Montbenon 5 Sole ownership 734 Yes7
Lausanne Rue des Côtes-de-Montbenon 11 Sole ownership 696 Yes7
Lausanne Rue des Côtes-de-Montbenon 12 Sole ownership 499 Yes7
Lausanne Rue des Côtes-de-Montbenon 14 Sole ownership 647 Yes7
Regensdorf Althardstrasse 10 Sole ownership 7,714 No
Regensdorf Althardstrasse 30 Sole ownership 9,355 No
Zurich Albulastrasse /Hohlstrasse Sole ownership 8,663 Yes
16 Commercial development properties 94,688
77 Total commercial properties 291,435

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

⁵ Site pollution eliminated – property rebuilt in recent years

Property Total rentable Office space Sales space Commercial Residential Other
description ⁹ space in m² in % in % space in % space in % uses in %
CB 4,329 67.1 0.0 0.8 0.0 32.1
CB 4,460 95.4 0.0 0.0 0.0 4.6
CB 1,090 79.1 12.8 0.0 0.0 8.2
CB 3,959 80.4 0.0 0.0 9.4 10.2
CB 3,554 72.3 0.0 0.0 0.0 27.7
CB 11,330 63.1 0.8 21.8 0.0 14.3
CB 758 63.5 27.8 0.0 0.0 8.7
CB 2,634 62.7 0.0 3.7 10.5 23.1
CB 8,228 94.3 0.0 0.0 0.0 5.7
CB 6,878 16.2 0.0 33.1 1.3 49.4
CB 6,093 73.3 15.2 1.8 1.3 8.3
CB 511 50.9 0.0 0.0 7.4 41.7
CB 6,793 66.3 1.0 0.0 0.0 32.6
CB 3,902 59.1 6.8 6.9 0.0 27.2
CB – hotel 17,874 0.0 0.0 0.0 0.0 100.0
RB+CB 2,089 48.3 0.0 6.9 29.2 15.6
300,575 39.4 16.5 15.0 1.7 27.5
CB 4,286 85.9 0.0 0.0 0.0 14.1
CB 4,084 4.4 2.4 82.7 6.9 3.6
6.3
CB
CB
21,248
9,929
0.5
0.0
0.0
0.0
93.3
96.4
0.0
3.6
Building land 0 0.0 0.0 0.0 0.0
CB 25,700 21.6 15.2 47.2 0.0
CB 3,374 0.0 18.1 26.6 0.0
CB 3,515 0.0 17.1 26.9 0.0 56.0
CB 314 0.0 0.0 100.0 0.0
CB 272 0.0 0.0 36.4 0.0 63.6
CB 220 0.0 0.0 100.0 0.0 0.0
CB 935 0.0 0.0 21.4 0.0 78.6
CB 640 0.0 0.0 100.0 0.0 0.0
CB 12,309 42.0 31.1 0.0 0.0 26.9
CB 12,878 61.3 0.0 29.6 2.2 6.9
CB 7,712 3.3 0.0 85.1 0.0 11.6
107,416 21.3 8.4 54.5 0.9 14.9
407,991 34.6 14.4 25.4 1.5 24.2

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

⁷ Site pollution suspected, measures required for newbuild projects

⁸ Building-right plots on which newbuild projects have been completed in recent years

⁹ CB = commercial building; RB = residential building

2 Pro p ert y details

2.3 Resident ial propert y de tail sv

Location Address Acquired Construction Year
year renovated
Bergdietikon Baltenschwilerstrasse 3 / 5 / 7 / 9 / 11 / 13 / 15 / 17 Oct 2007 1973 / 1980 1992 / 2007
Binz Zürichstrasse 244 / 246 Nov 2005 1966 1997 / 2001
Horgen Seestrasse 43 – 49 Nov 2005 2011
Horgen Seestrasse 63 – 69 Nov 2005 2011
Lausanne Avenue d'Ouchy 70 Nov 2009 1906 2004
Lausanne Avenue d'Ouchy 72 / 74 Nov 2009 1907
Lausanne Avenue d'Ouchy 76 Nov 2009 1907 2004
Lausanne Place de la Navigation 2 Nov 2009 1895 2004
Lausanne Rue Beau-Séjour 8 Nov 2009 2011
Lausanne Rue des Fontenailles 1 Nov 2009 1910 / 1963 1993
Münchwilen Buchenacker 22 / 24 / 26 / 28; Unterer Buchenacker 7 Jun 2007 1994 / 1995
Opfikon-Glattbrugg Farmanstrasse 47 / 49 Dec 2010 2009
Rheinfelden Rütteliweg 8; Spitalhalde 40 Sep 2006 1972 2004
St. Gallen Teufenerstrasse 15 Dec 2006 1900 2005
Wängi Brühlwiesenstrasse 11a / 11b / 15a / 15b / 19a / 19b Jun 2007 1984 / 1988
Zurich Katzenbachstrasse 221 – 231 Oct 2004 / Feb 2005 2009
Zurich Katzenbachstrasse 239 Mar 2008 1969
Zurich Klingenstrasse 34; Konradstrasse 68 Nov 2001 1897 1987
Zurich Manessestrasse 190 / 192; Staffelstrasse 1/ 3 / 5 Dec 2005 2012
Zurich Wettingerwies 7; Zeltweg April 1999 1969 2003

20 Residential investment properties 369,774 5.5 20,262 7.1 5.5

Location Address Ownership Site
area in m²
Register of
polluted sites
Bergdietikon Baltenschwilerstrasse 3 / 5 / 7 / 9 / 11 / 13 / 15 / 17 Sole ownership 11,131 No
Binz Zürichstrasse 244 / 246 Sole ownership 4,325 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 0 Yes⁴
Lausanne Avenue d'Ouchy 76 Sole ownership 738 Yes⁴
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 716 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 7,412 No
Zurich Katzenbachstrasse 221 – 231 Sole ownership 6,137 No
Zurich Katzenbachstrasse 239 Sole ownership 1,987 No
Zurich Klingenstrasse 34; Konradstrasse 68 Sole ownership 361 No
Zurich Manessestrasse 190 /192; Staffelstrasse 1 / 3 / 5 Sole ownership 2,345 No
Zurich Wettingerwies 7; Zeltweg Sole ownership 610 No
20 Residential investment properties 76,731

¹ Target gross yield as at reporting date 30. 06. 2012 as % of market value ⁹ CB = commercial building; RB = residential building

² Vacancy rate as % of target rental income

Year Market value Acquisition costs Gross yield Target rental Vacancy rate as at Vacant space as at
renovated in TCHF in TCHF in %¹ revenues in TCHF 30. 06. 2012 in % 2 30. 06. 2012 in %
1992 / 2007 19,890 5.2 1,024 2.1 2.9
1997 / 2001 9,806 5.5 537 1.0 0.0
27,950 5.1 1,419 5.7 4.4
25,950 5.1 1,324 5.4 5.1
2004 4,432 5.8 256 0.0 0.0
2,173 6.7 146 0.0 0.0
2004 12,560 5.0 630 0.0 0.0
2004 5,060 5.9 299 0.0 0.0
73,620 5.6 4,135 0.0 2.5
1993 2,683 5.7 152 1.1
13,040 6.0 777 0.6
22,130 5.0 1,104 5.9
2004 17,950 6.1 1,102 3.1
2005 3,844 5.0 191 1.8
11,270 6.3 713 0.6
45,700 5.4 2,448 14.6
5,146 5.8 299 13.8
1987 7,360 5.5 404 0.0
48,990 5.6 2,745 26.5
2003 10,220 5.5 558 0.0
369,774 5.5 20,262 7.1
Property Total 1 – 1½- 2 – 2½- 3 – 3½- 4 – 4½- 5 or more Total Space with
description 9 rentable room room room room room apartments other uses in
space in m² apartments apartments apartments apartments apartments %
3 RB 5,226 0 8 18 28 0 54 6.0
RB 2,580 0 6 12 12 0 30 4.5
RB 4,555 0 2 6 24 7 39 6.6
RB 4,051 0 0 24 16 0 40 0.5
RB+CB 1,133 0 0 5 0 5 10 6.8
RB 979 0 6 3 3 0 12 0.0
RB+CB 2,517 0 0 0 0 10 10 28.0
RB+CB 1,239 0 2 0 1 5 8 8.6
RB 10,211 0 19 55 17 10 101 2.5
RB 957 2 0 0 4 4 10 0.0
3 RB 4,358 0 4 20 20 0 44 4.7
7 RB 3,609 1 13 16 9 0 39 0.4
2 RB 5,588 8 30 0 46 0 84 0.5
RB+CB 1,598 1 2 1 7 0 11 30.1
3 RB 4,439 0 6 21 21 0 48 2.1
RB 7,961 0 5 32 27 5 69 4.1
RB 1,610 0 5 8 5 0 18 0.0
2 RB+CB 1,457 0 0 7 3 0 10 41.2
RB 6,583 0 11 21 20 0 52 10.0
RB+CB 1,145 21 0 0 0 0 21 42.1
71,796 33 119 249 263 46 710 6.6

2 Pro p ert y details

2.4 D e tail s of inve s tment propert ies under cons tr uct ion

Location Address Ownership Acquired Construction year
Aarau Polygon – Industriestrasse Sole ownership Jun 2001 2012
Affoltern am Albis Obstgartenstrasse – retirement apartments Sole ownership Aug 2011 2013
Affoltern am Albis Obfelderstrasse – rental apartments Sole ownership Aug 2011 2013
Horgen Seestrasse 93 –Meilenwerk Sole ownership Jan 2000 1956 / 2013
Lausanne Avenue d'Ouchy 4 – 6 (Administration) Sole ownership May 2010 1962 / 2012
Lausanne Vallée du Flon – Les Pépinières Sole ownership Nov 2009 2013
Regensdorf Schulstrasse 95 / 101 / 107 / 115; Riedthofstrasse 55 / 63; Sole ownership Jun 2007 1963 / 1969 / 2013
Feldblumenstrasse 44
Zurich Turbinenstrasse –City West, Site C Sole ownership Dec 2010 2013
8 Properties under construction

All the above investment properties are in the construction phase. Completion of the properties in Lausanne, Avenue d'Ouchy 4 – 6 and Aarau, Polygon – Industriestrasse, Site 3 is planned for the second half of 2012. Construction in Horgen, Seestrasse 93 –Meilenwerk, Lausanne, Les Pépinières and Zurich, Turbinenstrasse –City West, Site C is scheduled to end in 2013. Affoltern am Albis, Obstgarten- and Obfelderstrasse are scheduled to be completed by the end of 2013.

2.5 D e tail s of propert ies owned and used by Mobimo

Location Address Ownership Acquired Construction year
Lausanne Rue de Genève 7 Sole ownership Nov 2009 1932
Lausanne Rue des Côtes-de-Montbenon 16 Sole ownership Nov 2009 1912
Küsnacht Seestrasse 59 Sole ownership Sep 2002 2006
3 Properties

2.6 Co-ownership de tail s

Location Address Ownership Acquired Construction year
Lausanne Flonplex Co-ownership 40% Nov 2009 2001
Lausanne Parking du Centre Co-ownership 50% Nov 2009 2002
Lausanne Parking St-François Co-ownership 26.5% Nov 2009 n / a
3 Participations

³ Code D: clarification necessary within framework of building project ⁵ Site pollution eliminated – property rebuilt in recent years

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

Total rentable Description of Register of Site area Market value
area in m² property polluted sites in m² CHF thousands
4,215 Com Yes (code D) ³ 3,840 19,320
8,701 Com No 3,537 13,950
4,366 Res No 5,305 6,147
19,099 Com Yes 10,767 32,110
7,717 Com Yes7 12,609 36,030
7,276 Com Yes 2,602 12,880
12,367 9 Res No 16,656 21,370
10,040 Res No 7,431 59,060
73,781 62,747 200,867
Total rentable Description of Register of Site area Carrying amount
area in m2 property polluted sites in m2 CHF thousands
Com-owner-occupied portion Yes⁴ 3,343 3,997
Com-owner-occupied portion Yes⁴ 850 649
Com No 2,287 12,326
6,480 16,972
Total rentable Description of Register of Site area Market value
area in m2 property polluted sites in m2 CHF thousands
5,256 Multiplex cinema Yes 5 0 9,525
Car park Yes 5 0 28,200
Car park Yes 7 0 2,533
5,256 40,258

⁶ Site pollution suspected but no measures expected – properties must be maintained in accordance with the "Gestaltungsplan"

⁷ Site pollution suspected, measures required in newbuild plans

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

⁹ Com = commercial; Res = residential

59

Mobimo EPRA performance measures

In this section the Mobimo Group reports its key performance figures 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 vary 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 profits on the sale of trading and investment properties.

A EPRA earnings and EPRA earnings per share
Earnings as per IFRS income statement 39,608
(i) G
ain or loss from the revaluation of investment properties
–22,731
(ii)
Net income from the sale of investment properties and other financial assets carried at market value
–58
(iii)
Net income from the sale of trading properties including valuation allowances
–3,163
(iv)
Tax on profits or losses on disposals
949
(v)
Negative goodwill/impairment of goodwill
n / a
(vi)
Changes in the fair value of financial instruments
486
(vii)
Transaction costs for the purchase of companies and associates
n / a
(viii)
Deferred tax on EPRA adjustments
5,286
(ix)
Adjustments to positions (i) to (viii) in respect of associates
–527
(x)
Minority interests in respect of the above
n / a
EPRA earnings
Average number of shares outstanding
EPRA earnings per share 3.21
B EPRA net asset value 30.06.2012 31.12.2011
NAV as per consolidated financial statements 1,159,127 1,174,183
Dilution effect of exercise of options, convertibles and other equity instruments 165,532 170,900
Diluted NAV after the exercise of options, convertibles and other equity instruments 1,324,660 1,345,083
(i.a) R
evaluation of investment properties (if IAS 40 cost model is used)
n / a n / a
(i.b) R
evaluation of investment properties under construction (if IAS 40 cost option
is used) n / a n / a
(i.c) R
evaluation of other investments (owner-occupied properties)
9,370 8,847
(ii) R
evaluation of rental agreements for properties under finance leases
n / a n / a
(iii)
Difference in valuation of trading properties
46,905 47,495
(iv)
Market value of derivative financial instruments
28,158 25,358
(v.a)
Deferred tax
113,911 107,137
(v.b) G
oodwill from deferred tax
n / a n / a
Adjustments to (i) to (v) in respect of associates 3,577 n / a
EPRA NAV 1,526,582 1,533,921
Number of shares outstanding (diluted) 6,199,208 7,027,347
EPRA NAV per share 217.45 218.28
C Triple net asset value (NNNAV) 30.06.2012 31.12.2011
EPRA NAV 1,526,582 1,533,921
(i)
Market value of derivative financial instruments
–28,158 –25,358
(ii)
Market value of financial liabilities
–99,108 –96,385
(iii)
Deferred tax
–113,911 –107,137
EPRA NNNAV 1,285,404 1,305,041
Number of shares outstanding (diluted) 7,020,350 7,027,347
EPRA NNNAV per share 183.10 185.71
D EPRA net initial yield from rental income 30.06.2012 31.12.2011
Investment properties – ownership 1,908,075 1,835,558
Investment properties – joint ventures/funds 37,725 20,087
Trading properties 344,193 319,008
Less developments (land, investment properties under construction, trading properties) –548,247 –505,159
Value of the completed investment properties 1,741,746 1,669,494
Allowance for estimated purchaser costs 0 0
Gross up completed property portfolio valuation 1,741,746 1,669,494
Annualised cash passing rental income 94,605 92,810
Direct expenses for investment properties –10,403 –12,771
Annualised net rental income 84,202 80,039
Plus additional expected rental income after expiry of rent-free periods or other lease incentives 0 0
"Topped-up" net rental income 84,202 80,039
EPRA net initial yield from rental income 4.8 % 4.8%
EPRA "topped-up" net initial yield from rental income 4.8 % 4.8%
E EPRA vacancy rate 30.06.2012 31.12.2011
Estimated rental income potential from vacant space 3,596 2,768
Estimated rental income from overall portfolio 87,170 84,980
EPRA vacancy rate 4.1 % 3.3%

The relevant performance key figures were calculated for the first time on 31 December 2011, meaning that no values are available for the prior period for the EPRA earnings and EPRA earnings per share.

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

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

Mobimo AG

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

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

The Half-Year Report 2012 is also available in French and German. The English report is a translation of the original German.

Publishing details

Overall responsibility: Mobimo Holding AG

Design and layout: Baldinger & Baldinger AG, Aarau

Photos: Kessler Michael, www.profifoto.ch Wavre Olivier, www.wavre.ch Wyrsch Donovan, www.donovanpicture.com

Visualisation: Dachtler Partner AG, www.dachtlerpartner.ch Raumgleiter GmbH, www.raumgleiter.com

Investment property Rental apartments

Lausanne «Beau-Séjour» Rue Beau-Séjour 8

Passion for real estate

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