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Mobimo Holding AG

Interim / Quarterly Report Aug 4, 2017

933_10-q_2017-08-04_56e65485-079e-401b-b901-83bc9964110f.PDF

Interim / Quarterly Report

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HALF-YEAR REPORT 2017

OUR PROFILE

Mobimo Holding AG was established in Lucerne in 1999 and has been listed on the SIX Swiss Exchange since 2005. With a real estate portfolio with a total value of more than CHF 2.7 billion, the Group is one of the leading real estate companies in Switzerland. The Mobimo portfolio comprises residential and commercial properties in first-class locations in Germanspeaking and French-speaking Switzerland.

The investment properties are characterised by a balanced portfolio mix and diligent management, thus guaranteeing stable revenues. The company uses its development projects to create potential for capital appreciation and gains for the entire portfolio as well as investment opportunities for third parties. The development and expansion of entire sites into lively, mixed-use districts is one of Mobimo's core competences.

The ongoing development of the market position creates added value for shareholders, customers and partners over the long term. Mobimo pursues a sustainable strategy, has a stable business model and employs highly qualified and motivated people.

CONTENTS

Overview of Mobimo 1
Highlights of the first half of 2017 1 HALF-YEAR REPORT 2017
HALF-YEAR REPORT
2017
Letter to shareholders 2
Management structure 4
Mobimo on the capital market 6
Real estate portfolio 8
Strategy and business performance 10
Strategy and business model 10
Group business performance 11
Financial report 14 Passion for real estate
Consolidated interim financial statements 16
Property details 34
Auditor's review report 44
EPRA key performance measures 46 View of the condominium building in

Aarau's Aeschbachquartier.

SELECTED KEY FIGURES FIRST HALF OF 2017

Mobimo reported a strong half-year performance, generating sound operating results. Rental income was on a par with the previous year. Net income from revaluation was largely generated by developments for the company's own portfolio. The portfolio's value dropped slightly as a result of individual sales at attractive prices.

Profit CHF million HY|2016: 89.8

Total portfolio value

¢¢ Development properties

¢¢ Investment properties

¢¢ Profit attributable to the shareholders of MOH excl. revaluation

Earnings per share including and excluding revaluation CHF

¢¢ Earnings per share excl. revaluation

Profit and net rental income and vacancy rate CHF million/%

¢¢ Net rental income

Vacancy rate

CHF million

Result Unit HY 2017 HY 2016 Change in %
Net rental income CHF million 48.6 48.3 0.7
Profit on sale of trading properties and development services CHF million 13.3 17.0 –21.6
Profit on disposal of investment properties CHF million 17.8 33.9 –47.6
Net income from revaluation CHF million 30.6 20.9 46.5
Operating result (EBIT) CHF million 92.9 105.2 –11.7
Operating result (EBIT) excluding revaluation CHF million 62.3 84.4 –26.1
Profit CHF million 63.3 89.8 –29.5
Profit attributable to the shareholders of MOH CHF million 62.4 89.5 –30.3
Profit attributable to the shareholders of MOH excluding revaluation CHF million 40.1 74.2 –45.9
Balance sheet Unit 30.6.2017 31.12.2016 Change in %
Assets CHF million 3,203.0 3,031.7 5.7
Equity CHF million 1,369.6 1,366.3 0.2
Equity ratio % 42.8 45.1 –5.1
Return on equity % 9.5 13.1 –27.5
Return on equity excluding revaluation % 6.1 8.2 –25.6
Interest-bearing liabilities CHF million 1,543.0 1,349.4 14.3
Ø Rate of interest on financial liabilities (for the period) % 2.08 2.38 –12.6
Ø Residual maturity of financial liabilities years 6.8 6.9 –1.4
Net gearing % 92.0 86.0 7.0
Portfolio Unit 30.6.2017 31.12.2016 Change in %
Overall portfolio CHF million 2,728 2,766 –1.4
Investment properties CHF million 2,060 2,112 –2.4
Development properties CHF million 668 654 2.1
Gross yield from investment properties % 5.3 5.3 0.0
Net yield from investment properties % 4.1 4.1 0.0
Investment property vacancy rate % 4.9 4.8 2.1
Ø Discount rate for revaluation (real) % 3.62 3.75 –3.5
EPRA Unit HY 2017 HY 2016 Change in %
EPRA profit CHF million 25.2 22.4 12.2
EPRA NAV per share CHF 255.87 245.04 4.4
EPRA rental increase like for like % –0.1 0.4 –125.0
EPRA vacancy rate % 4.9 4.9 0.0
Headcount Unit 30.6.2017 31.12.2016 Change in %
Ø Headcount (full-time basis for the period) Number 134.7 126.2 6.7
Headcount (full-time basis) Number 141.1 135.7 4.0
Share Unit HY 2017 HY 2016 Change in %
Shares outstanding1 Number 6,217,669 6,215,326 0.0
Nominal value per share CHF 29.00 29.00 0.0
NAV per share CHF 217.66 203.89 6.8
Earnings per share CHF 10.03 14.39 –30.3
Earnings per share excluding revaluation CHF 6.46 11.93 –45.9
Distribution per share2 CHF 10.00 10.00 0.0
Share price as at 30.6. CHF 269.00 221.70 21.3

¹ No. of shares issued 6,218,170 less treasury shares 501 = no. of outstanding shares 6,217,669.

Distribution from capital contribution reserves for the 2016 financial year of CHF 10.00 per share according to the decision of the General Meeting of 28 March 2017. Some CHF 89 million was available for distribution from capital contribution reserves as at 31 December 2016, CHF 62 million of which was distributed; this means that approximately CHF 27 million is still available as at 30 June 2017.

HIGHLIGHTS OF THE FIRST HALF OF 2017

FOUNDATION STONE LAID – DISTRICT BEING DEVELOPED

Mobimo (the principal) and HRS (the total contractor) are undertaking a mixed-use development with five buildings and public outdoor areas, in accordance with plans drawn up by the Lucernebased architectural practice Scheitlin Syfrig Architekten. The foundation stone ceremony was held at the start of May 2017, with representatives of the Kriens municipality and City of Lucerne in attendance. Mattenhof lies at the heart of Lucerne South, the new residential area situated where the municipalities of Kriens, Horw and Lucerne meet. Some high-profile companies, including Swisscom and the Lucerne Cantonal Hospital, have already decided to set up in Mattenhof. The marketing of the apartments is scheduled to start in 2018. Pictured: Project Manager Claudia Siegle laying the foundation stone.

IMAGINATIVE, HIGH-IMPACT ADVERTISING

Mobimo advertised its rental apartments on the Labitzke site in Zurich-Altstetten using colourful, eye-catching imagery and in a style that according to the Tages-Anzeiger "is reminiscent of the hippy era". This strategy has proved successful, as almost all of the 277 apartments – ranging from studios to 4.5-room apartments – have been let a year before residents can start to move in during April 2018. The development, carried out by the renowned Zurich-based architectural practice Gigon/Guyer, will include commercial space and a nursery in addition to the apartments.

EXTENSIVE RENOVATIONS IN RHEINFELDEN

The 16-storey building in Rheinfelden, Aargau, is a typical 1970s high-rise block. The property features a lot of green space and also includes a five-storey building in the same architectural style (pictured). Both buildings have been in Mobimo's portfolio since 2006. The total 84 apartments will now undergo extensive renovations, with new kitchens, bathrooms, floors and much more being installed to increase their value. Around 50% of the tenants will remain on site, although they will move into empty apartments while work is being carried out on their own apartments. The entire internal renovations will be completed in October 2017.

A STRONG FIRST HALF-YEAR FOR MOBIMO

Profit attributable to shareholders including revaluation CHF million HY|2016: 89.5

62.4

Earnings per share CHF HY|2016: 14.39

Net income from revaluation CHF million HY|2016: 20.9

Georges Theiler, Chairman of the Board of Directors, and Dr. Christoph Caviezel, CEO.

Dear shareholders

We take pleasure in reporting an excellent business performance in first half-year 2017. After financial years 2015 and 2016 had been shaped by exceptionally high income from the sale of investment properties, substantial market-related upward valuations of our portfolio and a positive non-recurring item relating to tax in first-half 2016, the focus in 2017 has reverted to the contribution made by operating results and development-driven added value.

We generated broadly based and stable income for our shareholders in keeping with the strategic principles of our business model. In the first half of 2017, we achieved profit attributable to the shareholders of Mobimo Holding AG including revaluation of CHF 62.4 million and CHF 40.1 million excluding revaluation. This translates into CHF 10.03 per share and into CHF 6.46 per share excluding revaluation. This indicates we are well on the way to continuing with our customary, attractive dividend policy.

Rental income on a par with the prior year thanks to low vacancy rate

Despite disposals and in view of a practically unchanged low vacancy rate of 4.9% (31 December 2016: 4.8%), rental income remained on a par with the prior-year level at CHF 56.4 million. Transactionrelated movements in the portfolio as well as new business in the form of development properties completed for the portfolio once again make any meaningful comparison with prior-year periods possible to only a limited extent.

Thanks to our own property and facility management, we work in close proximity to our tenants and can identify the changes and needs of our customers at an early stage. This is one of the reasons why we have already been able to extend as many contracts as possible that are expiring in 2017 or otherwise conclude new ones. At the wish of our tenants, we can also find new solutions for rental space thanks to our development expertise.

Taking advantage of opportunities using active portfolio management

We interpret active portfolio management to mean not only the further development of our investment properties, but also individual disposals should any extraordinary opportunities arise. For example, we disposed of three properties in the first half of 2017 – the Apollo office building in Zurich, a business property in Renens and an apartment building in Versoix. Mobimo generated income of CHF 17.8 million on the divestment of these properties. In keeping with our business model, we are reinvesting the sales proceeds in our own development pipeline, which is delivering attractive returns.

Condominiums in Aarau well received

Transfers of condominium ownership in Aarau's Aeschbachquartier contributed the largest contribution to results in the trading properties area in the first half of 2017. Development for Third Parties is realising a number of projects during the course of 2017 that will contribute to results in the second half of the year.

Revaluation income primarily from own developments

In the first half of 2017, Mobimo reported revaluation income of CHF 30.6 million, which stemmed largely from the construction progress of new projects, thereby reflecting the added value of its own development activities for the investment portfolio. These include conversions or renovations of residential and office buildings in Rheinfelden, Aarau and Lausanne as well as, for example, the construction that is proceeding as planned on the Labitzke site in Zurich, where virtually all apartments have been rented out one year before its occupation. Construction work has been completed on Les Garages in Lausanne. This modular sales, business and office space in the Flon district that is to be occupied in September has already been let.

A lot of potential from site developments and the company's own portfolio

Mobimo is currently realising projects in Zurich, Kriens, Aarau and Lausanne that will generate additional annual rental income in excess of CHF 25 million up to the end of 2019. In addition, Mobimo is investing in targeted condominium projects where location, conditions and regional demand permit. After the reporting date, Mobimo purchased a plot of land in Meggen on the shores of Lake Lucerne, where it plans to build around 30 condominiums.

The existing portfolio also provides further scope for value enhancement as a consequence of new developments or conversions. Thanks to having its own development department, Mobimo can exploit this potential efficiently. Mobimo also has promising opportunities in the offing beyond the short to medium term, with site developments such as Rasude in Lausanne's railway station district.

Outlook

Switzerland is in robust economic condition. It offers attractive workplaces and a high quality of life. These parameters guarantee that demand for residential and business space – in particular in good city centre locations – continues unabated. We are confident that we are operating in a positive market environment that gives rise to an abundant source of opportunities. The changes under way in the retail sector, changing working methods brought about by digitalisation and constantly growing supply call for attentive observation of the market and flexibility. Thanks to its business model, Mobimo is in a position to pursue various options according to the market situation.

The Board of Directors and Executive Board are confident that the company will continue to develop well in future, deliver excellent operational performances and create added value for its shareholders.

Thank you for the trust you have placed in our company.

Chairman of the Board of Directors CEO

Georges Theiler Dr. Christoph Caviezel

MANAGEMENT STRUCTURE

Board of Directors

The Board of Directors is responsible for the company's strategic management. It acts as the supervisory body and comprises independent, external members. As at 30 June 2017, the following persons were members of the Board of Directors of Mobimo:

Georges Theiler, Chairman

Certified Operating Engineer ETH, Entrepreneur Nationality: Swiss Born in: 1949 Georges Theiler has been a member of the Board of Directors since 2000 and Chairman of the Board of Directors of Mobimo Holding AG since September 2013. He is a member of the Real Estate Committee.

Peter Schaub, Vice Chairman Attorney at law Nationality: Swiss Born in: 1960 Peter Schaub has been a member of the Board of Directors of Mobimo Holding AG since 2008. He is Chairman of the Audit and Risk Committee and a member of the NominationandCompensation Committee.

Brian Fischer

Attorney at law and Swiss-certified tax expert Nationality: Swiss Born in: 1971 Brian Fischer has been a member of the Board of Directors of Mobimo Holding AG since 2008. He is Chairman of the Real Estate Committee.

Peter Barandun Executive MBA HSG Nationality: Swiss Born in: 1964 Peter Barandun was elected to the Board of Directors of Mobimo Holding AG in March 2015. He is a member of the Real Estate Committee.

Bernard Guillelmon

Engineer, Masters in Energy, MBA Nationalities: Swiss and French Born in: 1966 Bernard Guillelmon joined the Board of Directors of Mobimo Holding AG in 2009. He is Chairman of the Nomination and Compensation Committee.

Daniel Crausaz Engineer, Master of Business Administration Nationality: Swiss Born in: 1957 Daniel Crausaz has been a member of the Board of Directors of Mobimo Holding AG since 2009. He is a member of the Audit and Risk Committee.

Wilhelm Hansen

lic. rer. pol., Management Consultant Nationality: Swiss Born in: 1953 Wilhelm Hansen has been a member of the Board of Directors of Mobimo Holding AG since 2008. He is a member of the Audit and Risk Committee and of the Nominationand Compensation Committee.

Board of Directors

Chairman: Georges Theiler Vice Chairman: Peter Schaub

Peter Barandun, Daniel Crausaz, Brian Fischer, Bernard Guillelmon, Wilhelm Hansen

Real Estate Committee

Brian Fischer (Chairman) Peter Barandun Georges Theiler

AuditandRisk Committee

Peter Schaub (Chairman) Daniel Crausaz Wilhelm Hansen

NominationandCompensation Committee

Bernard Guillelmon (Chairman) Wilhelm Hansen Peter Schaub

Executive Board

The Executive Board is charged with the operational management of the Group companies. As at 30 June 2017, the following persons were members of the Executive Board:

Dr. Christoph Caviezel, CEO

Dr. iur., attorney at law Nationality: Swiss Born in: 1957 Christoph Caviezel has been CEO of the Mobimo Group since October 2008. He directly manages the Corporate Center and the Purchase and Divestment division.

Manuel Itten, CFO Business Administration FH Nationality: Swiss Born in: 1965 Manuel Itten joined Mobimo in 2004 and has been CFO since March 2009.

Marc Pointet, Head of Mobimo Suisse romande

MSc in architecture from the Swiss Federal Institute of Technology, Executive MBA HSG Nationality: Swiss Born in: 1974

Marc Pointet joined Mobimo in November 2006 and has been Head of Mobimo Suisse romande since March 2013. He has been a member of the Executive Board since April 2015.

Andreas Hämmerli, Head of Development Certified architect HTL Nationality: Swiss Born in: 1957 Andreas Hämmerli has headed the Development division since October 2008. He is responsible for project development, construction and sales.

The complete corporate governance report and information about the Group companies and the Group's shareholdings are included in the full version of the annual report.

Thomas Stauber, Head of Real Estate Certified civil engineer ETH/SIA Nationality: Swiss Born in: 1964 Thomas Stauber joined Mobimo in November 2011 and set up the Development for Third Parties business area. He has headed the Real Estate division since July 2014.

MOBIMO ON THE CAPITAL MARKET

Mobimo can look back on an excellent first half of 2017 on the capital market, having reported a performance of 9.52% as at 30 June. In March 2017, it issued a CHF 225 million fixed-rate bond in what continued to be an attractive interest rate environment.

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.

Ticker symbol MOBN
Swiss security no.: 1110 887
ISIN code CH001110 8872
Bloomberg MOBN SW Equity
Reuters MOBN.S

Performance of the Mobimo share

The Mobimo share started 2017 with a price of CHF 254.75 and closed at CHF 269.00 on 30 June 2017. This corresponds to a performance (total return) of 9.52%. Net asset value (NAV) per share and diluted NAV per share stood at CHF 217.66 as at 30 June 2017 (31 December 2016: CHF 217.33) after distribution of the dividend of CHF 10.00. As at 30 June 2017, Mobimo's share price of CHF 269.00 was 23.6% above the NAV per share. The Mobimo share price (dividend-adjusted) has risen by 44.7% over the past five years, while the SPI and SXI Real Estate Shares indices have increased by 79.8% and 41.5% respectively over the same period.

¢¢ Share price

¢¢ NAV per share (diluted)

The Mobimo share has a sound level of liquidity and a solid trading volume. An average of 8,567 (first half of 2016: 12,521) shares were traded each day. The average daily turnover amounted to approximately CHF 2.3 million (first half of 2016: CHF 2.8 million) and the trading volume to CHF 282 million (first half of 2016: CHF 344 million).

Shareholder structure

As at 30 June 2017, the following shareholders held 3% or more of the share capital:

  • BlackRock, Inc., 4.97%,
  • Zuger Pensionskasse, 3.38%,
  • Norges Bank (the Central Bank of Norway), 3.17%.

According to the SIX Swiss Exchange definition, the free float stood at 100% as at 30 June 2017.

Composition of shareholders

¢ Individuals

%

  • ¢ Pension funds, insurers, banks
  • ¢ Foundations, funds
  • ¢ Other companies
  • ¢ Shares pending registration 32.4 13.5 5.2 33.8 15.1

Mobimo share data

Unit 2013 2014 2015 2016 2017
Ratios as at 30.6.
Share capital CHF million 180.2 180.3 180.3 180.3 180.3
No. of registered shares issued Number 6,214,478 6,216,606 6,218,170 6,218,170 6,218,170
Of which treasury shares Number 2,148 1,623 1,217 2,844 501
No. of registered shares
outstanding
Number 6,212,330 6,214,983 6,216,953 6,215,326 6,217,669
Nominal value per
registered share CHF 29.00 29.00 29.00 29.00 29.00
Share data as at 30.6.
Earnings per share CHF 6.66 3.17 5.72 14.39 10.03
Earnings per share excluding
revaluation CHF 3.81 2.36 4.57 11.93 6.46
NAV after options and
convertible bond
CHF 193.51 191.03 191.91 203.89 217.66
Gross dividend CHF 9.00 9.50 9.50 10.00 10.00
Share price HY
Share price – High CHF 213.60 198.00 229.40 234.30 279.25
Share price – Low CHF 186.50 184.90 190.50 206.10 253.75
Share price at 30.6. CHF 192.20 188.00 190.50 221.70 269.00
Average no. of shares
traded per day
Number 12,476 9,657 12,387 12,521 8,567
Market capitalisation on 30.6. CHF million 1,194.4 1,168.7 1,184.6 1,378.6 1,672.7

Mobimo bonds

For the long-term funding of the real estate portfolio and to diversify its financing instruments, Mobimo has issued four bonds, thereby capitalising on attractive interest rates. In March 2017, it issued a 9-year CHF 225 million straight bond with a coupon of 0.75%. The four bonds are traded on the SIX Swiss Exchange in Zurich. The total financing volume amounts to CHF 740 million.

Key Mobimo bond data

Issue date 29.10.2013 19.5.2014
Ticker symbol MOB13 MOB14
Swiss security no. 22 492 349 24 298 406
ISIN code CH0224923497 CH0242984067
Issue volume CHF 165 million CHF 200 million
Bloomberg MOBN SW MOBN SW
Reuters 785VD6 792ZMZ
Interest rate 1.500% 1.625%
Term 5 years 7 years
Maturity 29.10.2018 19.5.2021
Price as at 30.6.2017 CHF 101.96 CHF 105.60
Yield to maturity 0.027% 0.179%
Issue date 16.9.2014 20.3.2017
Ticker symbol MOB141 MOB17
Swiss security no. 25 237 980 35 483 611
ISIN code CH0252379802 CH0354836113
Issue volume CHF 150 million CHF 225 million
Bloomberg MOBN SW MOBN SW
Reuters 797G6K 844KJX
Interest rate 1.875% 0.750%
Term 10 years 9 years
Maturity 16.9.2024 20.3.2026
Price as at 30.6.2017 CHF 109.55 CHF 99.85
Yield to maturity 0.526% 0.768%

Portfolio figures

REAL ESTATE PORTFOLIO

As at 30 June 2017, Mobimo's real estate portfolio comprised 143 properties. It can be broken down into investment properties with a value of CHF 2,060 million and development properties with a value of CHF 668 million.

CHF million 30.6.
2017
% 31.12.
2016
%
Total portfolio value 2,728 100 2,766 100
Investment properties 2,060 75 2,112 76
Commercial investment
properties
1,341 49 1,388 50
Residential investment
properties
719 26 724 26
Development properties 668 25 654 24
Commercial properties
(investment)
211 8 209 8
Residential properties
(investment)
194 7 140 5
Commercial properties
(trading)
59 2 59 2
Residential properties
(trading)
204 8 246 9

Investment properties

75% of the real estate portfolio comprises investment properties. These are broadly diversified in terms of both their location in Switzerland's major economic areas and type of use. The annual potential rental income generated by the rentable area of 452,000 m² as at 30 June 2017 was CHF 109 million, producing stable and predictable income. The portfolio's value dropped slightly as a result of individual sales at attractive prices.

Own portfolio management team

Mobimo manages the portfolio through its own portfolio management team, which gives it proximity to the market and to its tenants. Value is maintained and increased by cultivating relationships with tenants, ensuring a high level of occupancy, imposing lean cost management and implementing appropriate marketing strategies.

The five biggest tenants generate 21.4% of rental income. The existing fixed-term rental agreements primarily have a medium to long-term maturity profile. The average residual term is 7.8 years.

Breakdown of portfolio by economic area

  • %
  • ¢ French-speaking Switzerland
  • ¢ Zurich
  • ¢ North-western Switzerland
  • ¢ Central Switzerland
  • ¢ Eastern Switzerland

Shares of the five biggest tenants

¢ SV (Schweiz) AG

%

  • ¢ Swisscom Group ¢ Coop
  • ¢ Senevita AG
  • ¢ Migros ¢ Other tenants

Development properties

Mobimo feeds its own investment portfolio by means of targeted ongoing development of residential and commercial properties. The newly constructed investment properties further enhance the portfolio's quality.

Mobimo is currently planning and realising from its own developments properties with a total investment volume of around CHF 960 million, which breaks down into CHF 850 million for investment properties for its own portfolio and CHF 110 million for condominiums to be sold.

In addition to developments for its own portfolio and for the sale of condominiums, Mobimo is also active in the area of development services for third parties. Its offering ranges from area, site and project developments to turn-key real estate investments for institutional and private investors. The form taken by each cooperation with a partner depends on the specific requirements and on the project phase reached. Here too, the focus is on sustainable implementation. The pipeline for third-party projects has a total investment volume of some CHF 800 million.

STRATEGY AND BUSINESS MODEL

Mobimo's long-term strategy is geared towards qualitative growth based on a balanced portfolio mix and active portfolio management. The company ensures that its activities are solidly financed and sustainable.

Mobimo plans, builds and maintains high-yield investment properties. The investment portfolio comprises commercial, industrial and residential properties with broad-based rental income and correspondingly steady returns. Through its development properties, Mobimo creates considerable value enhancement and generates capital gains. This area of activity includes the sale of condominiums. Development for Third Parties offers planning and implementation services for institutional and private investors. This covers all areas of planning, including the handover of turn-key properties.

Mobimo has solid financing. In addition to this long-term guaranteed financing, the expansion of the company is based on Mobimo's core competences: buying/selling, development and portfolio management.

The company uses the Mobimo brand in its communication with investors, media, analysts and tenants. The Group brand is sometimes linked with targeted sponsorship and marketing measures. Communication and marketing at project level are generally tied to an image developed by Mobimo and are given project names that correspond to the objective, location and target audience. Although creative freedom is ensured, the Mobimo brand is positioned in all project marketing so that the sender and the responsibilities are always clear.

Long-term strategy

Qualitative growth

Mobimo strives to gradually grow 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 and 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. It sees these primarily as the economic areas of Zurich and Lausanne/Geneva, together with those of Basel, Lucerne/Zug, Aarau and St. Gallen. Investments are only made in sustainably good locations.

Balanced portfolio mix

Generally, the strategic investment portfolio comprises approximately one-third residential usage, one-third office usage and onethird other commercial usage.

Active portfolio management

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

Added value through development

Real estate development focuses on the following areas:

  • development and construction of new investment properties for the company's own portfolio,
  • site development,
  • the continued development and optimisation of our own real estate holdings,
  • development and investments for third parties,
  • development, construction and sale of owner-occupied properties.

Sustainability

For Mobimo, sustainability means striking a balance between generating profits today and preserving and enhancing value over the long term. Quality of life is reflected in the design of living, leisure and working spaces. In addition to economic aspects, Mobimo also incorporates environmental and socio-cultural factors in its activities. This results in added value for both shareholders and the users of Mobimo properties.

Solid financing

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

Profitable investment

Mobimo shares are characterised by steady value growth and regular, attractive payouts.

GROUP BUSINESS PERFORMANCE

Mobimo reported excellent half-year profit, generating sound operating results in all areas. It also registered net income from revaluation that was largely attributable to the successful realisation of development projects for its own portfolio.

Financial performance

  • Mobimo generated another strong result, with profit of CHF 63.3 million (first half of 2016: CHF 89.8 million).
  • EBIT was a high CHF 92.9 million (first half of 2016: CHF 105.2 million).
  • Net income from revaluation of CHF 30.6 million (first half of 2016: CHF 20.9 million) was substantially up year-on-year.
  • Rental income of CHF 56.4 million (first half of 2016: CHF 56.8 million) was on a par with the previous year's figure.
  • Profit on the sale of trading properties and development services was CHF 13.3 million (first half of 2016: CHF 17.0 million).

Mobimo capitalised on unchanged high demand in the transaction market to sell three investment properties, once again realising attractive gains. These disposals produced net income of CHF 17.8 million (first half of 2016: CHF 33.9 million). Mobimo reinvested the cash inflow from the disposals in the realisation of projects from its own pipeline with good returns. The disposal of the three investment properties resulted in an approximate CHF 4 million reduction in potential annual target rental revenues. This contrasted with investment properties under construction with a total investment

1 Other use mainly comprises car parks and ancillary uses.

volume of some CHF 480 million and potential annual target rental revenues in excess of CHF 25 million as at 30 June 2017.

After a transitional phase with two appraisers, and more than ten years of successful collaboration with Wüest Partner AG, Mobimo has decided on a change and appointed Jones Lang La Salle AG for reasons of good governance. Jones Lang La Salle AG has been the appraiser for the entire real estate portfolio since this half-year, for the first time performing all investment property revaluations as at 30 June 2017. In the first half of 2017, net income from revaluation totalled CHF 30.6 million (first half of 2016: CHF 20.9 million), of which CHF 23.8 million was attributable to the positive development in value of investment properties under construction. The discount rate (real) applied to revaluations was 3.62% as at 30 June 2017 (31 December 2016: 3.75%).

Despite disposals, income from rental properties totalled CHF 56.4 million (first half of 2016: CHF 56.8 million), which was on a par with the prior-year period. The cost/income ratio arising from direct expenses for rented properties was once again lower than in the

Key financial performance figures

HY HY
Unit 2017 2016 Change in %
Net rental income CHF million 48.6 48.3 0.7
Profit on sale of
trading properties
and development
services
CHF million 13.3 17.0 –21.6
Net income from
revaluation
CHF million 30.6 20.9 46.5
Profit on sale of
investment pro
perties
CHF million 17.8 33.9 –47.6
Operating result
(EBIT) including
revaluation
CHF million 92.9 105.2 –11.7
Financial result CHF million –14.6 –14.7 –0.8
Tax expense CHF million –16.0 –2.9 444.6
Profit CHF million 63.3 89.8 –29.5
Profit attributable
to the shareholders
of MOH
CHF million 62.4 89.5 –30.3
Profit attributable
to the shareholders
of MOH excluding
revaluation CHF million 40.1 74.2 –45.9

previous year, coming in at 14% (first half of 2016: 15%). This resulted in net rental income of CHF 48.6 million (first half of 2017: CHF 48.3 million). Thanks to targeted portfolio diversification, Mobimo maintains a balanced usage mix. As at 30 June 2017, the share of rental income from residential usage was around 28%. Residential usage, office usage and other commercial usage are each set to account for approximately 30% of the investment portfolio.

Investment properties generated a net yield of 4.1% in the first half of 2017 (31 December 2016: 4.1%). As at 30 June 2017, the vacancy rate remained at a virtually unchanged level of 4.9% (31 December 2016: 4.8%).

The project pipeline for Mobimo's own portfolio is full and offers major potential for further growth. The current total investment volume of projects under construction that are being realised for Mobimo's own portfolio is some CHF 480 million. These projects involve rental space in excess of 95,000 m2 with potential annual target rental revenues in excess of CHF 25 million. The projects are the following:

  • Aarau, Site 2 (Torfeld Süd),
  • Horgen, Seestrasse 93 (Seehallen),
  • Kriens, am Mattenhof 4, 6, 8, 12/14 and 16,
  • Lausanne, Rue des Côtes-de-Montbenon 1/3/5,
  • Rheinfelden, Rütteliweg 8; Spitalhalde 40,
  • Zurich, Hohlstrasse 485.

Unit 2017 31.12. 2016 Change in % Non-current assets CHF million 2,581.0 2,502.7 8.2 Current assets CHF million 622.0 529.0 12.6 Equity CHF million 1,369.6 1,366.3 7.5 Return on equity including revaluation % 9.5 13.1 –27.5 Return on equity excluding revaluation % 6.1 8.2 –25.6 Liabilities 1,833.4 1,665.4 10.2 • Current liabilities 150.8 203.2 –14.5 • Non-current liabilities CHF million 1,682.6 1,462.2 13.1 Equity ratio % 42.8 45.1 –5.1

Key financial position figures

Other development projects are also being planned for Mobimo's own portfolio, most of which are for the locations Aarau and Lausanne with a total investment volume of some CHF 370 million and potential target rental revenues in excess of CHF 20 million.

Income from the sale of trading properties and provision of development services totalled CHF 91.2 million in the first half of 2017 (first half of 2016: CHF 59.7 million), which resulted in profit from trading properties and development services of CHF 13.3 million (first half of 2016: CHF 17.0 million). 74 condominiums were transferred to their new owners. The residential properties transferred were largely in the project in Aarau, Site 4, (Aeschbachquartier), which was completed at the start of 2017. Other selected condominium projects are in the pipeline or are already in the realisation phase. Total investment volume of condominium projects is some CHF 110 million, while the pipeline for third-party projects, which was expanded through the acquisition of a two-thirds holding in BSS&M Real Estate AG, has a total investment volume of some CHF 800 million.

The number of full-time equivalents as at 30 June 2017 increased slightly to 141.1 (31 December 2016: 135.7). The increase was the result of selected staff additions in operating areas.

In the first half of 2017, Mobimo reported excellent profit of CHF 63.3 million (first half of 2016: CHF 89.8 million) with successful activities in all operating areas. The profit attributable to the shareholders of Mobimo totalled CHF 62.4 million (first half of 2016: CHF 89.5 million) and not including revaluation CHF 40.1 million (first half of 2016: CHF 74.2 million). This generated earnings per share of CHF 10.03 (first half of 2016: CHF 14.39). Earnings per share not including revaluation was CHF 6.46 (first half of 2016: CHF 11.93). With this result, Mobimo is well on track to continue its attractive dividend policy.

805 738 855 836 781 909 1,241 1,293 1,367 1,349 1,543 513 512 168 164 512 2013 2014 2015 2016 HY|2017 CHF million

¢¢ Bonds ¢¢ Convertible bonds ¢¢ Mortgages

Financial position

  • At CHF 3,203.0 million, total assets were above the prior year-end level (31 December 2016: CHF 3,031.7 million).
  • The equity ratio was 42.8% (31 December 2016: 45.1%) and represented a solid basis for further growth.
  • Mobimo generated a return on equity of 9.5% in the first half of 2017 (31 December 2016: 13.1%).

As at the end of the first half of 2017, total assets increased by 5.7% (31 December 2016: 2.7%) to CHF 3,203.0 million. This was mainly the result of the short-term increase in liquidity for the repayment of expiring loans and for the financing of the realisation of ongoing projects in the pipeline. The value of the real estate portfolio was CHF 2,728.3 million as at the end of the first half of 2017 (31 December 2016: CHF 2,765.6 million). The share of non-current assets in total assets was down slightly as at the end of the financial year to 80.6% (prior year: 82.6%).

With an equity ratio of 42.8% as at 30 June 2017 (31 December 2016: 45.1%), Mobimo continues to have a solid capital base. Mobimo's corporate strategy targets an equity ratio of at least 40%. At 3.9, the interest coverage factor is clearly above the targeted 2.0. This means that Mobimo is readily able to finance its financial obligations from its operating activities. With regard to its capital structure, Mobimo aims to achieve long-term net gearing of a maximum of 150%. As at 30 June 2017, Mobimo recorded net gearing of 92.0% (31 December 2016: 86.0%).

Mobimo successfully issued an additional CHF 225 million bond with a nine-year term and a coupon of 0.75% in March 2017 to finance its activities, thereby further reducing its financing costs substantially. The average interest rate for financial liabilities was 2.08% in the first half of 2017, compared with 2.38% in the previous year. As at the reporting date of 30 June 2017, the average interest rate had fallen further and stood at 2.02% (prior year: 2.32%). Mobimo will also continue to use the attractive interest rate environment to keep interest rates low in the long term. The average residual maturity of financial liabilities as at the reporting date was 6.8 years (31 December 2016: 6.9 years), and was therefore still in the targeted range. The long-term financing and solid capital base form a sound foundation for the company's further growth and for investment in the projects in the pipeline.

Focus in 2017

Mobimo's focus remains unchanged as it enters into the second half of 2017. The realisation of construction projects on schedule, highquality developments for Mobimo's own portfolio, an offering for developments for third parties that is commensurate with demand and the selective production of condominiums remain the company's main focus. Mobimo aims to maintain its attractive dividend policy.

Manuel Itten CFO

FINANCIAL REPORT

In the following chapter, Mobimo presents its consolidated interim financial statements in accordance with International Accounting Standard 34. It also contains detailed information on the company's real estate portfolio and EPRA key performance measures.

Profit on disposal of trading properties and development services CHF million Portfolio size CHF million 2016: 2,766 Rental income CHF million HY|2016: 56.8 2,728 56.4 13.3

HY|2016: 17.0

Consolidated interim financial statements 16
Consolidated income statement 16
Consolidated statement of comprehensive income 17
Consolidated balance sheet 18
Consolidated cash flow statement 20
Consolidated statement of changes in equity 21
Notes to the consolidated interim financial statements 22
General information 22
Segment reporting 24
Investment portfolio 26
Trading properties and development services 28
Financing 29
Other notes/Other financial information 32
Property details 34
Auditor's review report 44
EPRA key performance measures 46

CONSOLIDATED INCOME STATEMENT

TCHF Note HY 2017 HY 2016
Income from rental of properties 5 56,365 56,778
Income from sale of trading properties and development services 7 91,161 59,666
Other income 1,707 1,052
Revenue 149,233 117,496
Gains from revaluation of investment properties 6 51,039 38,191
Losses on revaluation of investment properties 6 –20,470 –17,327
Net income from revaluation 30,569 20,864
Profit on disposal of investment properties 6 17,755 33,861
Direct expenses for rented properties 5 –7,786 –8,525
Direct expenses from sale of trading properties and development services 7 –77,837 –42,681
Direct operating expenses –85,623 –51,205
Capitalised own account services 2,153 2,605
Personnel expenses –12,709 –11,728
Operating expenses –5,461 –3,822
Administrative expenses –1,666 –1,559
Earnings before interest, tax, depreciation and amortisation (EBITDA) 94,250 106,512
Depreciation –846 –878
Amortisation and impairment losses –505 –392
Earnings before interest and tax (EBIT) 92,899 105,241
Share of profit of equity accounted investees 997 2,205
Financial income 1,624 383
Financial expense –16,223 –15,102
Financial result –14,599 –14,718
Earnings before tax (EBT) 79,297 92,728
Tax expense 13 –16,004 –2,939
Profit 63,293 89,790
Of which attributable to the shareholders of Mobimo Holding AG 62,376 89,454
Of which attributable to non-controlling interests 917 335
EBITDA not including revaluation 63,682 85,647
Operating result (EBIT) not including revaluation 62,330 84,377
Earnings before tax (EBT) not including revaluation 48,728 71,864
Earnings per share in CHF 14 10.03 14.39
Diluted earnings per share in CHF 14 10.03 14.39

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

TCHF
Note
HY 2017 HY 2016
Profit 63,293 89,790
Items that may be reclassified subsequently to income statement 2,670 –14,901
• Profit/loss on financial instruments for hedge accounting
9
3,347 –19,196
• Reclassification adjustments for amounts recognised in income statement 78 79
• Tax effects –755 4,217
Items that will not be reclassified to income statement –21 –2,716
• Remeasurement in staff pension schemes –26 –3,314
• Tax effects 5 598
Total other comprehensive income 2,649 –17,617
Of which attributable to the shareholders of Mobimo Holding AG 2,649 –17,617
Of which attributable to non-controlling interests 0 0
Total comprehensive income 65,942 72,173
Of which attributable to the shareholders of Mobimo Holding AG 65,025 71,837
Of which attributable to non-controlling interests 917 335

CONSOLIDATED BALANCE SHEET

TCHF Note 30.6.2017 31.12.2016
Assets
Current assets
Cash 202,631 173,869
Trade receivables 26,263 13,479
Financial assets 12 80,000 0
Income tax receivables 4,027 2,948
Other receivables 41,885 31,430
Trading properties 8 262,682 304,844
Accrued income and prepaid expenses 4,471 2,431
Total current assets 621,959 529,002
Non-current assets
Investment properties
• Commercial properties 6 1,328,070 1,373,488
• Residential properties 6 718,910 724,076
• Development properties 6 121,400 121,104
• Investment properties under construction 6 283,720 228,130
Property, plant and equipment
• Owner-occupied properties 13,542 13,982
• Other property, plant and equipment 5,029 3,570
Intangible assets 6,782 6,274
Investments in associates and joint ventures 27,615 27,609
Financial assets 12 72,846 1,966
Deferred tax assets 3,113 2,488
Total non-current assets 2,581,027 2,502,686
Total assets 3,202,986 3,031,688
TCHF Note 30.6.2017 31.12.2016
Equity and liabilities
Liabilities
Current liabilities
Current financial liabilities 9 64,096 92,597
Trade payables 30,146 31,384
Current tax liabilities 9,780 25,397
Derivative financial instruments 9/10 202 0
Other payables 10,382 10,133
Advance payments from buyers 909 11,197
Accrued expenses and deferred income 35,282 32,471
Total current liabilities 150,798 203,181
Non-current liabilities
Non-current financial liabilities 9 1,478,875 1,256,804
Employee benefit obligation 7,501 7,163
Derivative financial instruments 9/10 34,793 39,834
Deferred tax liabilities 161,447 158,440
Total non-current liabilities 1,682,616 1,462,241
Total liabilities 1,833,414 1,665,421
Equity 11
Share capital 180,327 180,327
Treasury shares –133 –446
Capital reserves 145,390 207,466
Retained earnings 1,027,741 963,589
Total equity attributable to the shareholders of Mobimo Holding AG 1,353,324 1,350,936
Attributable to non-controlling interests 16,248 15,331
Total equity 1,369,572 1,366,267
Total equity and liabilities 3,202,986 3,031,688

CONSOLIDATED CASH FLOW STATEMENT

Earnings before tax
79,297
92,728
Net gains from revaluation of investment properties
6
–30,569
–20,864
Share-based payments
283
476
Depreciation on property, plant and equipment and amortisation of lease incentives
1,205
1,316
Amortisation and impairment of intangible assets
505
392
Profit on disposal of investment properties
6
–17,755
–33,861
Profit on disposal/derecognition of property, plant and equipment
0
–2
Share of profit of associates and joint ventures
–997
–2,205
Financial result
14,599
14,718
Changes
• Trade receivables
–12,784
–5,236
• Trading properties
42,207
13,066
• Other receivables and accrued income and prepaid expenses
–12,452
–34,481
• Employee benefit obligation
313
298
• Trade payables
–1,698
–3,136
• Advance payments from buyers
–10,288
1,198
• Other liabilities and accrued expenses and deferred income
4,618
9,514
Income tax paid
–29,241
–38,160
Net cash from/used in operating activities
27,243
–4,240
Investments in financial assets
12
–150,880
0
Acquisition of subsidiaries, net of cash acquired
0
395
Acquisition of investment properties
–56,961
–24,850
Acquisition of property, plant and equipment
–1,865
–706
Acquisition of intangible assets
–1,013
–1,020
Disposal of property, plant and equipment
0
2
Disposal of investment properties less selling costs
6
96,768
152,436
Dividends received
1,060
1,239
Interest received
19
31
Net cash used in/from investing activities
–112,872
127,527
Proceeds from financial liabilities
9
237,741
0
Repayment of financial liabilities
9
–43,716
–7,061
Distribution of capital contribution reserves
11
–62,174
–62,153
Acquisition of non-controlling interests
0
–208
Purchase of treasury shares
–745
–1,511
Interest paid
–16,716
–16,391
Net cash from financing activities
114,391
–87,323
Increase in cash
28,762
35,964
Cash at beginning of reporting period
173,869
222,897
Cash at end of reporting period
202,631
258,861
TCHF Note HY 2017 HY 2016

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Other Total Equity attributable to Non
Share Treasury Capital Hedging retained retained the shareholders of controlling Total
TCHF Note capital shares reserves reserve earnings earnings Mobimo Holding AG interests equity
At 1 January 2016 180,327 –262 269,577 –21,187 830,162 808,975 1,258,617 6,074 1,264,691
Profit HY 2016 89,454 89,454 89,454 335 89,790
Cash flow hedges: 9
• Change in fair value –19,196 –19,196 –19,196 –19,196
• Transfer to
income statement 79 79 79 79
• Tax effects 4,217 4,217 4,217 4,217
Staff pension schemes:
• Remeasurement –3,314 –3,314 –3,314 –3,314
• Tax effects 598 598 598 598
Other comprehensive
income 0 0 0 –14,901 –2,716 –17,617 –17,617 0 –17,617
Total comprehensive
income 0 0 0 –14,901 86,738 71,837 71,837 335 72,173
Distribution of capital
contribution reserves
–62,153 –62,153 –62,153
Share-based payments:
• Board of Directors
and management 1,153 26 –703 –703 476 476
Acquisition of
treasury shares –1,511 –1,511 –1,511
Purchase of
non-controlling interests
1 1 1 –209 –208
At 30 June 2016 180,327 –620 207,450 –36,087 916,197 880,110 1,267,267 6,201 1,273,468
At 1 January 2017 180,327 –446 207,466 –24,500 988,090 963,589 1,350,936 15,331 1,366,267
Profit HY 2017 62,376 62,376 62,376 917 63,293
Cash flow hedges: 9
• Change in fair value 3,347 3,347 3,347 3,347
• Transfer to
income statement 78 78 78 78
• Tax effects –755 –755 –755 –755
Staff pension schemes:
• Remeasurement –26 –26 –26 –26
• Tax effects 5 5 5 5
Other comprehensive
income 0 0 0 2,670 –21 2,649 2,649 0 2,649
Total comprehensive
income 0 0 0 2,670 62,355 65,025 65,025 917 65,942
Distribution of capital
contribution reserves
11 –62,174 –62,174 –62,174
Share-based payments:
• Board of Directors
and management 1,057 98 –873 –873 283 283
Purchase of
treasury shares –745 –745 –745
At 30 June 2017 180,327 –133 145,390 –21,831 1,049,572 1,027,741 1,353,324 16,248 1,369,572

Consolidated interim financial statements: Notes to the consolidated interim financial statements General information

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

GENERAL INFORMATION

1. Business activities

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

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

2. Group accounting policies

General information

The consolidated interim financial statements of the Mobimo Group for the first half of 2017 have been produced in accordance with International Accounting Standard 34 (IAS 34) on interim financial reporting and comply with Article 17 of the SIX Swiss Exchange Directive on Financial Reporting.

The consolidated interim financial statements as at 30 June 2017 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 2016.

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

The accounting principles applied in the consolidated interim financial statements correspond to the Group accounting principles set out in the consolidated annual financial statements for 2016, with the exception of the new standards and interpretations applicable with effect from 1 January 2017.

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 liabilities as at the reporting date.

The main estimates and assumptions used in the measurement of assets and liabilities affect the market values of investment properties, the estimate of costs of trading properties and development services as well as income tax related positions. This is unchanged from the consolidated financial statements as at 31 December 2016. On the real estate market at present it can be observed that, owing to the current negative interest rate environment, institutional investors are in some cases buying properties in good locations offering very low yields, their hands forced by the dearth of other investment options. This unforeseeable investor behaviour could result in some investment properties fetching higher sales prices than their most recent estimated market value.

Newstandards/interpretations applied

With effect from 1 January 2017, Mobimo has used the following newly applicable or amended standards and interpretations:

  • Amendments to IFRS Annual Improvements to IFRS 2014 − 2016,
  • Amendments to IAS 7 Disclosure initiative,
  • Amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses.
  • The amendments had no effect on the interim financial statements.

Financial report

Standards/interpretationspublishedbut not yet applied

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

Standard/Interpretation Entry into force Planned application
by Mobimo (financial year)
IFRS 9 Financial Instruments * 1.1.2018 2018 financial year
IFRS 15 Revenue from Contracts with Customers and
related Clarifications
** 1.1.2018 2018 financial year
Amendments to IFRS 2 Classification and Measurement of Share-based
Payment Transactions
* 1.1.2018 2018 financial year
Amendments to IAS 40 Transfer to and from Investment Property * 1.1.2018 2018 financial year
IFRIC 22 Foreign Currency Transactions and
Advance Considerations
* 1.1.2018 2018 financial year
IFRS 16 Leases ** 1.1.2019 2018 financial year

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

** The potential impact on Mobimo's consolidated financial statements is described in the consolidated annual financial statements as at 31 December 2016.

3. Seasonal business

Some of Mobimo's activities do not generate steady income over the course of the year. These include revenues from trading properties and development services in particular. Higher income may be generated in the first or second half of the year depending on the number of properties transferred or the volume of projects.

SEGMENT REPORTING

4. Segment reporting

Segment information for thefirsthalf of2017

TCHF Real Estate Development Total segments Reconciliation Total
Income from rental of properties 51,535 4,831 56,365 56,365
Net income from revaluation 9,648 20,921 30,569 30,569
Income from sale of trading properties and
development services
91,161 91,161 91,161
Profit on disposal of investment properties 17,755 0 17,755 17,755
Other income 1,707 0 1,707 1,707
Total segment income 80,644 116,912 197,557 197,557
Segment result EBIT1 65,907 27,613 93,520 –621 92,899
Share of profit of equity accounted investees 997
Financial result –14,599
Earnings before tax (EBT) 79,297
Tax –16,004
Profit 63,293
Trading properties 262,682 262,682 262,682
Investment properties 2,046,980 121,400 2,168,380 2,168,380
Owner-occupied properties 13,542 13,542 13,542
Investment properties under construction 283,720 283,720 283,720
Total segment assets 2,060,522 667,802 2,728,324 2,728,324
Non-attributed assets 474,662 474,662
Total assets 3,202,986
Depreciation and amortisation –625 –726 –1,351 –1,351
Investments in non-current assets 7,309 49,365 56,674 2,878 59,552

1 The reconciliation EBIT comprises compensation forthe Board of Directors.

Financial report

Consolidated interim financial statements: Notes to the consolidated interim financial statements Segment reporting

Segment information for the first half of 2016

TCHF Real Estate Development Total segments Reconciliation Total
Income from rental of properties 52,451 4,327 56,778 56,778
Net income from revaluation 8,675 12,190 20,864 20,864
Income from sale of trading properties and
development services 59,666 59,666 59,666
Profit on disposal of investment properties 33,861 0 33,861 33,861
Other income 1,052 0 1,052 1,052
Total segment income 96,039 76,183 172,221 172,221
Segment result EBIT1 81,304 24,569 105,873 –631 105,241
Share of profit of equity accounted investees 2,205
Financial result –14,718
Earnings before tax (EBT) 92,728
Tax –2,939
Profit 89,790
Trading properties 233,696 233,696 233,696
Investment properties 2,008,581 146,114 2,154,695 2,154,695
Owner-occupied properties 14,829 14,829 14,829
Investment properties under construction 172,250 172,250 172,250
Total segment assets 2,023,410 552,060 2,575,470 2,575,470
Non-attributed assets 362,293 362,293
Total assets 2,937,763
Depreciation and amortisation –593 –678 –1,270 –1,270
Investments in non-current assets 1,776 29,284 31,061 1,755 32,816

1 The reconciliation EBIT comprises compensation for the Board of Directors.

INVESTMENT PORTFOLIO

5. Net rental income

Rental income can be broken down as follows:

TCHF HY 2017 HY 2016
Commercial properties 38,869 39,589
Residential properties 15,379 16,283
Income from rental of
investment properties
54,248 55,872
Trading properties1 2,117 906
Total income from rental of properties 56,365 56,778
Commercial properties –5,432 –5,880
Losses on receivables
commercial properties
27 –31
Residential properties –2,109 –2,389
Losses on receivables
residential properties
–55 –56
Investment property expense –7,569 –8,355
Rented trading properties1 –192 –170
Losses on receivables from trading
properties1
–25 0
Total expense for rental of properties –7,786 –8,525
Net rental income 48,580 48,253

1 Rental income or expenses from properties for disposal or development properties.

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

TCHF Commercial
properties
Residential
properties
30.6.2017
Total
Rental income
within 1 year
63,416 2,929 66,345
Rental income
within 2 to 5 years
179,370 3,982 183,352
Rental income in
over 5 years
285,154 1,271 286,425
Total future rental income
from non-cancellable
rental agreements
527,941 8,182 536,122
TCHF Commercial
properties
Residential
properties
31.12.2016
Total
Rental income
within 1 year
68,879 2,998 71,878
Rental income
within 2 to 5 years
189,191 7,306 196,497
Rental income in
over 5 years
177,559 4,498 182,057
Total future rental income
from non-cancellable
rental agreements
435,630 14,802 450,431

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

% 30.6.2017 31.12.2016
SV (Schweiz) AG 6.5 6.3
Swisscom Group 5.4 5.3
Coop 3.2 3.1
Senevita AG 3.2 3.0
Migros 3.1 2.9
Total 21.4 20.6

6. Investment properties

Investment properties developed as follows:

Investment
TCHF Commercial
properties
Residential
properties
Development
properties
properties under
construction
30.6.2017
Total
Market value at 1 January 1,373,488 724,076 121,104 228,130 2,446,798
Cumulative acquisition costs
Balance at 1 January 1,199,237 572,878 142,746 210,699 2,125,561
Increases from purchases 1,632 0 0 0 1,632
Increases from investments 4,313 1,364 3,191 45,007 53,875
Capitalisation of borrowing costs 0 0 0 1,167 1,167
Capitalisation/amortisation of lease incentives –358 0 0 0 –358
Disposals –49,649 –20,028 0 0 –69,677
Transfers between categories 15,210 0 0 –15,210 0
Balance at 30 June 1,170,385 554,214 145,938 241,663 2,112,199
Cumulative revaluation
Balance at 1 January 174,251 151,198 –21,642 17,431 321,237
Gains on valuations1 8,234 14,898 301 27,607 51,039
Losses on valuations1 –12,366 –1,118 –3,196 –3,790 –20,470
Disposals2 –11,623 –282 0 0 –11,905
Transfers between categories –810 0 0 810 0
Cumulative revaluation at 30 June 157,685 164,696 –24,538 42,057 339,901
Market value at 30 June 1,328,070 718,910 121,400 283,720 2,452,100

1 Corresponds to the sum of "Gains from revaluation of investment properties" and "Losses on revaluation of investment properties" in the income statement and represents the unrealised gains on properties that were in the investment portfolio as at 30 June 2017.

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

The remaining share of the condominiums (70/1,000) in the Sonnentalstrasse 5 property in Dübendorf (commercial property) was acquired in the first half of 2017, which means that Mobimo now owns all of the shares (1,000/1,000) in this property.

In the period under review, the following properties were sold:

Investment property Category of investment property
Renens, Chemin de la Rueyre 116/118 Commercial property
Versoix, Chemin de l'Ancien Péage 2 – 4 Residential property
Zurich, Stauffacherstrasse 41 Commercial property

The disposal of properties for a total of CHF 99.9 million produced a profit of about CHF 17.8 million.

Once completed, the Kriens, Am Mattenhof 10 (parking) property – previously referred to as Kriens Sternmatt 6 – Block C (multi-storey parking) – was transferred from the investment properties under construction category to the commercial properties category.

As at 30 June 2017, all of our investment properties were valued for the first time by the external, independent and certified real estate appraisers Jones Lang LaSalle AG using the DCF method (on 31 December 2016, 90% of the properties were valued by Wüest Partner and 10% by Jones Lang LaSalle AG).

For the DCF valuations as at 30 June 2017, the average capital-weighted nominal discount rate was 4.12%, ranging from 3.40% to 6.30%. The average capital-weighted capitalisation rate stood at 3.62%, within the range of 2.90% to 5.80%. The corresponding real discount rate came in at 3.62% (31 December 2016: 3.75%).

As at 30 June 2017, capital commitments for future construction investments in investment properties totalled CHF 152.8 million (31 December 2016: CHF 179.9 million). These commitments relate to the agreements concluded with general contractors/ planners for the investment properties under construction and development properties.

TRADING PROPERTIES AND DEVELOPMENT SERVICES

7. Profit on sale of trading properties and development services

8. Trading properties

Profit can be broken down as follows:

TCHF HY 2017 HY 2016
Income from sale of trading properties 80,799 52,063
Income from development services 10,362 7,603
Total income from sale of trading
properties and development services
91,161 59,666
Construction costs of trading
properties sold
–67,806 –36,869
Changes in valuation allowances –70 –330
Direct expense development services –9,962 –5,482
Total expenses from sale of trading
properties and development services
–77,837 –42,681
Profit on sale of trading properties
and development services
13,323 16,985

The sales of properties listed in Note 8 form part of the income from the sale of trading properties.

The income from development services comprises the income from development and service contracts in which Mobimo is not or no longer the owner of the plot of land.

The recognised portfolio of properties comprises the following:

TCHF 30.6.2017 31.12.2016
Land/development projects 78,169 82,560
Properties under construction 45,891 97,480
Completed real estate and
development properties
138,622 124,804
Total trading properties 262,682 304,844

In the first half of 2017, a purchase contract for the Glattbrugg project was concluded with an investor, who will take ownership of the property in a ready-for-use state. Following the conclusion of the purchase contract, the project is being reported under receivables. The development at Aarau, Site 4 was also completed during the first half of 2017, and 63 of the 92 apartments were sold. In the Bad Zurzach, Weissensteinweg project, the last five apartments under construction were sold, which is why the entire project is now reported under receivables. Of the completed properties, two apartments in Lucerne, Büttenenhalde, two further apartments in Meilen, Feldgütliweg, and an apartment each in Zurich, Turbinenstrasse (Mobimo Tower) and in Salenstein, Hauptstrasse were sold.

FINANCING

9. Financial liabilities

Financial liabilities can be broken down as follows:

TCHF 30.6.2017 31.12.2016
Fixed-rate mortgage amortisation due within 12 months 5,037 5,287
Mortgages due for extension or repayment within 12 months 59,059 87,310
Total current financial liabilities 64,096 92,597
Mortgages 740,542 743,844
Bonds 738,333 512,960
Total non-current financial liabilities 1,478,875 1,256,804
Total financial liabilities 1,542,971 1,349,401
Interest rate swaps through profit and loss 202 0
Total current derivative financial instruments 202 0
Interest rate swaps applying hedge accounting 27,426 30,773
Interest rate swaps through profit and loss 7,367 9,061
Total non-current derivative financial instruments 34,793 39,834
Total derivative financial instruments 34,995 39,834

All financial liabilities are denominated in Swiss francs.

The following bonds are included under non-current financial liabilities:

TCHF 1.5% bond
(2013 – 2018)
1.625% bond
(2014 – 2021)
1.875% bond
(2014 – 2024)
0.75% bond
(2017 – 2026)
Total
Net proceeds from issuance 164,158 197,967 149,452 0 511,577
Cumulative amortisations of issuance costs 526 737 120 0 1,383
Carrying amount 1.1.2017 164,684 198,705 149,572 0 512,960
Net proceeds from issuance 0 0 0 225,119 225,119
Amortisations of issuance costs 86 145 27 –3 254
Carrying amount 30.6.2017 164,770 198,849 149,598 225,116 738,333
Features 1.5% bond (2013 – 2018) 1.625% bond (2014 – 2021) 1.875% bond (2014 – 2024) 0.75% bond (2017 – 2026)
Volume: CHF 165 million CHF 200 million CHF 150 million CHF 225 million
Term: 5 years (29 October 2013 –
29 October 2018)
7 years (19 May 2014 –
19 May 2021)
10 years (16 September 2014 –
16 September 2024)
9 years (20 March 2017 –
20 March 2026)
Interest rate: 1.5% p.a.,
payable annually on
29 October, with the first pay
ment on 29 October 2014
1.625% p.a.,
payable annually on 19 May,
with the first payment on 19
May 2015
1.875% p.a.,
payable annually on 16 Sep
tember, with the first payment
on 16 September 2015
0.75% p.a.,
payable annually on 20 March,
with the first payment on
20 March 2018
Effective rate
of interest:
1.6070% 1.7921% 1.9264% 0.7550%
Listing:
Swiss
SIX Swiss Exchange SIX Swiss Exchange SIX Swiss Exchange SIX Swiss Exchange
security no.: 22492349 24298406 25237980 35483611

Financial report

Consolidated interim financial statements: Notes to the consolidated interim financial statements Financing

Mobimo has concluded separate interest rate swaps with a contract volume of CHF 195.0 million (31December 2016: CHF 195.0 million). These are used to hedge loans in the form of fixed advances (terms of three to six months) against rising interest rates. Of these, CHF 118.7 million (31December 2016: CHF 118.7 million) are classified as cash flow hedges. The fair value of these financial instruments with a negative replacement value totals CHF 27.4 million (31December 2016: CHF 30.8 million). The CHF –3.3 million adjustment in fair value of the interest rate swaps classified as cash flow hedges was recognised as an unrealised profit in other comprehensive income.

In addition, interest rate hedges totalling CHF 76.3 million (31December 2016: CHF 76.3 million) are not classified as cash flow hedges. The fair value of interest rate swaps with a negative replacement value not held for hedge accounting purposes is CHF 7.6 million (31December 2016: CHF 9.1 million). Fair value adjustments of CHF –1.5 million were recognised in financial income. As at 30 June 2017, the fair value of all derivatives totalled CHF 35.0 million (31 December 2016: CHF 39.8 million).

Financial liabilities as at the reporting date comprised the following maturities, taking into account interest rate hedging, i.e. the maturities of designated swaps are taken into account instead of the maturities of fixed advances:

TCHF 30.6.2017 31.12.2016
Due within 1st year 64,096 92,597
Due within 2nd year 241,344 191,788
Due within 3rd year 53,874 65,453
Due within 4th year 305,832 115,042
Due within 5th year 93,235 255,252
Due within 6th year 110,658 147,960
Due within 7th year 4,146 36,047
Due within 8th year 151,100 151,074
Due within 9th year 233,930 1,502
Due within 10th year 83,731 22,440
Due within 11th year and longer 201,025 270,248
Total financial liabilities 1,542,971 1,349,401

The average residual maturity of total financial liabilities as at 30 June 2017 was 6.8 years (31December 2016: 6.9 years).

Interest rate periods are as follows (composition until next interest rate adjustment/taking into account interest rate hedging):

TCHF 30.6.2017 31.12.2016
Up to 1 year 64,096 92,597
Up to 2 years 241,344 191,788
Up to 3 years 53,874 65,453
Up to 4 years 305,832 115,042
Up to 5 years 93,235 255,252
Over 5 years 784,590 629,269
Total financial liabilities 1,542,971 1,349,401

The average rate of interest applied to all financial liabilities in the first half of 2017 was 2.08% (full-year 2016: 2.38%).

10. Financial instruments

Fair values

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

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

For fixed-rate financial liabilities, fair value corresponds to the time value of the future cash flows to be discounted as at the reporting date using the market interest rate. Rates of interest for discounting future cash flows are based on money and capital market rates as at the time of valuation plus an adequate interest spread of 0.80%. The discount rates applied as at 30 June 2017 were between 0.17% and 1.59% (as at 31 December 2016: between 0.14% and 1.49%). The fair value of the listed bonds corresponded to the price as at the reporting date.

Carrying
amount
30.6.2017
Fair value
30.6.2017
Carrying
amount
31.12.2016
Fair value
31.12.2016
Mort
gages
(Level 2)
804,638 867,809 836,441 908,941
Bonds
(Level 1)
738,333 768,422 512,960 545,643
Total 1,542,971 1,636,230 1,349,401 1,454,583

Fair value hierarchy

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

  • Level 1: inputs that result from unadjusted, quoted prices;
  • Level 2: inputs other than quoted prices in active markets that are observable either directly (i.e. prices) or indirectly (i.e. derived from prices);
  • Level 3: inputs not based on observable market data.
30.6.2017 Level 1 Level 2 Level 3
Derivative financial instruments 0 34,995 0
31.12.2016 Level 1 Level 2 Level 3
Derivative financial instruments 0 39,834 0

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

11. Equity

The Annual General Meeting of 29 March 2017 approved a distribution from the capital contribution reserves of CHF 10.00 per share for the 2016 financial year, which was paid on 4 April 2017. The nominal value of Mobimo shares remains at CHF 29.00.

As at 30 June 2017, share capital amounted to CHF 180.3 million and was composed of 6,218,170 registered shares with a nominal value of CHF 29.00 each. 501 treasury shares were held as at 30 June 2017.

Changes in the equity holding can be summarised as follows:

No. of shares Shares
issued
Treasury
shares
Shares
outstanding
At 1.1.2016 6,218,170 –1,247 6,216,923
Share-based payments
to Board of Directors
and management
Acquisition of
6,203 6,203
treasury shares –7,000 –7,000
At 31.12.2016/1.1.2017 6,218,170 –2,044 6,216,126
Share-based payments
to Board of Directors
and management
4,348 4,348
Acquisition of
treasury shares
–2,805 –2,805
At 30.6.2017 6,218,170 –501 6,217,669

Authorised share capital is also available, allowing the Board of Directors to increase the share capital of the company by a maximum of CHF 34.8 million within two years (up to March 2018) at most via the issue of up to 1,200,000 registered shares, to be fully paid up, with a nominal value of CHF 29.00 per share.

There is also conditional share capital of a maximum of CHF 0.9 million for the issue of up to 32,446 fully paid up registered shareswith a nominal value of CHF 29.00 for the subscription rights created after 5 May 2010 under an employee share option programme. Shareholders' subscription rights are excluded.

OTHER NOTES/OTHER FINANCIAL INFORMATION

12. Financial assets

Financial assets include CHF 80 million in time deposits with an original maturity of more than 3 months and a residual maturity of less than 12 months in short-term financial assets and CHF 70 million with a residual maturity of more than 12 months in long-term financial assets.

13. Tax expense

The tax expense of the comparative period (HY 2016) was influenced by a non-recurring positive effect of CHF 21.5 million. Due to a new tax law in the Canton of Vaud whose provisions include a substantial reduction in the canton's corporate tax rate, these new lower tax rates were applied for the calculation of deferred taxes for temporary differences realised after 1 January 2019.

14. Earnings per share/net asset value

Earnings per share are calculated by dividing the Group result attributable to the shareholders of Mobimo Holding AG by the weighted average of the number of shares outstanding during the reporting period. Diluted earnings per share additionally take account of any shares arising from the exercise of options and the conversion of convertible bonds into shares. There were no dilutive effects in the reporting period.

The net asset value (NAV) was CHF 1,353.3 million (31 December 2016: CHF 1,350.9 million), while the NAV per share came to CHF 217.66 (31 December 2016: CHF 217.33). The NAV corresponds to the equity attributable to Mobimo shareholders in accordance with IFRS. As neither convertible bonds nor options were outstanding on the reporting date and there were thus no dilutive effects, the diluted NAV and diluted NAV per share correspond to the NAV and NAV per share.

15. Changes in the scope of consolidation

On 9 March 2017, Mobimo Zürich Nord AG was founded as a project company with share capital of CHF 0.1 million.

16. Events after the reporting date

The consolidated interim financial statements were approved for publication by the Board of Directors on 28 July 2017.

On 6 July 2017, Mobimo acquired a property in Meggen for the development of condominiums.

No other events took place between 30 June 2017 and the approval date of these consolidated interim financial statements that would require adjustments to the carrying amounts of assets and liabilities as at 30 June 2017 or that would require disclosure in this section.

PROPERTY DETAILS

Trading property details

Location,
address
Description1 Built Realisation
period
Acquired Carrying
30.6.2017
amount
in TCHF
Brugg, Hauptstrasse open open Jul 2016 3,722
Châtel-St. Denis, Chemin de la Chaux open open Jul 2016 7,124
Lachen, Zürcherstrasse 19 open open Jul 2016 2,931
Langenthal, Kühlhausstrasse 8 open open Sep 2015 556
Martigny, Rue du Léman 24 open open Jul 2016 12,864
Merlischachen, Chappelmatt-Strasse (Burgmatt) 78 con open 2014/2015 16,377
Regensdorf, Watterstrasse open open Jul 2016 5,751
Schaffhausen, Fischerhäuserstrasse 61 open open Jul 2016 2,102
Uster, Berchtoldstrasse open open Jul 2016 9,021
Weggis, Hertensteinstrasse 105 open open May 2010 10,473
Zurich, Allmendstrasse 92 – 96 (Manegg) open open Mar 2015 7,247
11 Land entities and
development projects 78,169
Zurich, Albulastrasse 42 res 2016/2018 Apr 2010 45,891
1 Properties under construction 45,891
Aarau, Site 4 (Torfeld Süd) 92 con 2014/2017 Jun 2001 23,847
Aarau, Buchserstrasse 27 com 1885 2017/2018 Oct 2006 741
Allaman, Chemin des Grangettes 22 open 1991 open Sep 2015 24,554
Cham, Brunnmatt 4 – 6 com 2010/2012 Jul 2016 41,029
Lucerne, Büttenenhalde 24 con 2014/2016 Dec 2011 2,170
Meilen, Feldgüetliweg 143/145 14 con 2013/2015 Nov 2011 3,463
Regensdorf, Im Pfand 2 (Sonnenhof) 45 con 2013/2015 Jun 2007 299
Salenstein, Hauptstrasse 22 con 2012/2015 Jul 2016 9,783
St. Erhard, Längmatt com 1979 open Oct 2012 4,814
St. Moritz, Via Maistra 292 open 1930 open Jul 2010 12,072
Zurich, Turbinenstrasse (Mobimo Tower) 53 con 2008/2011 May 2008 15,850
11 Completed real estate
and development properties 138,622
23 Trading properties 262,682

1 Com: commercial property; con: condominium; res: residential property.

2 Development properties.

Site area in m2 tified purchase
30.6.2017 (cer
Sales status
agreement)
Sales volumes
in TCHF
Project status
30.6.2017
in planning
in planning
in planning
in planning
in planning
in planning
12,897 open open in planning
916 open open in planning
4,069 open open in planning
3,043 0/1 open in planning
11,247 open open in planning
94,040
construction project
1,962
11,105 63/92 84,540 for sale
1,155 1/1 open in planning
23,213 open open in planning
8,346 0/1 open for sale
7,115 22/24 29,931 for sale
2,687 12/14 27,620 for sale
6,106 45/45 34,254 for sale
6,970 13/22 22,344 for sale
5,801 0/1 open for sale
557 open open in planning
1,936 50/53 168,858 for sale
74,991 367,547
4,228
21,231
969
13,080
6,838
15,522
1,962
open
open
open
open
open
open
0/1
open
open
open
open
open
open
open

Commercial property details

Location,
address
description1
Property
renovated Acquired Fair value
in TCHF
Gross yield Target rental
revenues
in TCHF3
Vacancy rate
Built Year in %2 in %4
Aarau, Bahnhofstrasse 102 (Mediapark) com 1975 1998 Mar 2004 21,040 9.9 2,087 45.8
1905/1916/
Aarau, Industriestrasse 28; 1929/1943/ Jun 2001/
Torfeldstrasse Parkhaus com 1954/1974 Oct 2006 27,160 7.0 1,892 0.0
Aarau, Industriestrasse 20 (Polygon) com 2012 Jun 2001 25,120 5.0 1,263 0.0
Affoltern am Albis, Obstgartenstrasse 9;
Alte Obfelderstrasse 27/29
com/res 2014 Aug 2011 78,740 4.4 3,467 0.0
Basel, Lyon-Strasse 40 com 1940 Nov 2015 540 12.5 68 0.0
Brugg, Bahnhofstrasse 11 com 2005 Jun 2006 26,130 6.1 1,583 4.3
Dierikon, Pilatusstrasse 2 com 1990 2007 May 2009 9,770 7.8 759 11.3
Mar/Dec
Dübendorf, Sonnentalstrasse 5 com 1975 2000 1999 26,470 7.1 1,891 14.4
Dübendorf, Zürichstrasse 98 com 1965 1983 Jan 2000 20,270 7.0 1,413 11.4
Geneva, Rue des Etuves 16 – 18 com/res 1910 Nov 2015 11,240 5.4 607 57.5
Horgen, Seestrasse 80 com 1960 2000/2008 Nov 2005 7,310 7.1 517 0.2
Horgen, Seestrasse 82 CP 2010/2011 Nov 2005 5,880 4.5 267 3.4
Kreuzlingen, Lengwilerstrasse 2 com 2007 Apr 2007 6,260 5.1 318 0.0
Kreuzlingen, Leubernstrasse 3; Bottighoferstrasse 1 com 1983/2003 2003 Nov 2006 57,460 6.2 3,561 1.7
Kreuzlingen, Romanshornerstrasse 126 BR n/a Nov 2006 1,860 4.3 80 0.0
Kriens, Am Mattenhof 10, Parking CP 1986 2016 Feb 2004 15,140 5.9 897 0.0
Kriens, Sternmatt 6 com 1986 2008 Feb 2004 25,320 9.8 2,488 13.3
Lausanne, Avenue d'Ouchy 4 – 6 (Horizon) com 1962 2013 May 2010 67,190 4.7 3,132 0.0
Lausanne, Flonplex BR n/a Nov 2009 4,750 4.4 210 0.0
Lausanne, Parking du Centre BR n/a Nov 2009 8,620 5.5 475 0.0
Lausanne, Place de la Gare 4 com 1961 2000 Nov 2009 30,490 4.9 1,502 0.0
Lausanne, Place de la Navigation 4 – 6 com/h 1895 2002 Nov 2009 13,370 5.7 768 0.0
Lausanne, Place de l'Europe 6 com/h 1905 2012 Nov 2009 6,110 5.0 303 0.0
Lausanne, Place de l'Europe 7 com 1905 2001 Nov 2009 8,830 5.2 463 25.7
Lausanne, Place de l'Europe 8 com 1911 1989 Nov 2009 8,670 4.3 371 46.0
Lausanne, Place de l'Europe 9 com 1900 2002 Nov 2009 24,650 5.3 1,300 0.0
Lausanne, Rue de Genève 2/4/6/8 com 1904 2002 Nov 2009 23,240 5.0 1,163 0.0
Lausanne, Rue de Genève 7 com5 1932 1992/2011 Nov 2009 33,400 4.9 1,645 12.0
Lausanne, Rue de Genève 17 com 1884 2002 Nov 2009 22,540 6.5 1,458 8.0
Lausanne, Rue de Genève 23 com 1915 2005 Nov 2009 3,460 5.2 182 0.0
Lausanne, Rue de la Vigie 3 com 1964 Nov 2009 6,950 7.5 520 75.0
Lausanne, Rue de la Vigie 5 com 1963 1988 Nov 2009 14,430 6.0 860 0.0
Lausanne, Rue des Côtes-de-Montbenon 6 com 1921 2009 Nov 2009 8,180 4.5 365 0.0
Lausanne, Rue des Côtes-de-Montbenon 8/10 com 1946 1998 Nov 2009 9,320 5.5 516 0.0
Lausanne, Rue des Côtes-de-Montbenon 12 com 1918 2004 Nov 2009 3,800 8.3 314 16.9
Lausanne, Rue des Côtes-de-Montbenon 16 com5 1912 2007 Nov 2009 5,740 5.3 305 0.0
Lausanne, Rue des Côtes-de-Montbenon 20 – 24 com 2013 Nov 2009 43,900 5.0 2,205 0.0
Lausanne, Rue des Côtes-de-Montbenon 26 BR n/a Nov 2009 1,830 4.3 79 0.0
Lausanne, Rue des Côtes-de-Montbenon 28/30 BR n/a Nov 2009 2,100 3.5 74 0.0
Lausanne, Rue du Port-Franc 9 com 1927 2009 Nov 2009 7,310 4.7 342 0.0
Lausanne, Rue du Port-Franc 11 com 2008 Nov 2009 12,730 4.6 589 0.0
Lausanne, Rue du Port-Franc 17 com 2002 Nov 2009 12,820 5.7 730 0.0

1 BR: building right; com: commercial property; h: hotel; CP: multi-storey car park; res: residential property.

2 Target rental income as at 30 June 2017 as a % of market value.

3 Incl. building right interest.

4 Vacancy rate as at 30 June 2017 as a % of target rental income.

5 Share in investment property.

polluted sites
Register of
Site area in m2 Ownership7 Vacant area
in %6
Other
in %6
Residential
space in %6
Commercial
space
in %6
Sales space
in %6
Office space
in %6
Total rentable
area in m2
no 5,675 SO 42.0 25.4 1.4 8.7 0.0 64.5 13,376
yes (insignificant) 15,161 SO 0.0 0.0 0.0 100.0 0.0 0.0 24,267
yes (to review) 2,379 SO 0.0 8.6 0.0 0.0 0.0 91.4 4,465
no 6,455 SO 0.0 7.0 93.0 0.0 0.0 0.0 10,625
no
no
1,910
2,726
SO
con
(773/1,000)
0.0
3.2
0.0
11.7
0.0
0.0
100.0
21.1
0.0
33.8
0.0
33.4
2,230
4,022
no 4,397 SO 11.7 8.6 0.0 15.1 15.9 60.4 4,389
yes (to review) 4,269 SO 9.2 9.6 0.0 62.6 0.0 27.8 9,373
yes (petrol station) 9,815 SO 10.0 22.0 1.1 29.8 17.4 29.7 9,847
no 484 SO 44.9 0.2 66.1 0.0 17.8 15.9 1,925
no 3,483 SO 0.0 4.8 0.0 19.0 0.0 76.2 2,151
no 0 SO 0.0 100.0 0.0 0.0 0.0 0.0 64
no 6,993 SO 0.0 33.5 0.0 0.0 66.5 0.0 1,348
no 25,529 SO 2.2 13.7 0.0 0.0 75.7 10.6 17,819
no 2,214 SO 0.0 100.0 0.0 0.0 0.0 0.0 2,214
no 5,028 SO 0.0 100.0 0.0 0.0 0.0 0.0 218
no 14,323 SO 12.1 19.5 1.2 47.2 0.0 32.1 21,002
yes (to review) 12,612 SO 0.0 3.4 0.0 0.0 0.0 96.6 8,072
yes (insignificant) 1,953 SO 0.0 100.0 0.0 0.0 0.0 0.0 1,953
yes (insignificant) 6,526 SO 0.0 100.0 0.0 0.0 0.0 0.0 6,526
no 630 SO 0.3 31.5 0.0 0.0 0.0 68.5 4,769
yes (insignificant) 1,731 SO 0.0 100.0 0.0 0.0 0.0 0.0 3,437
yes (insignificant)
yes (insignificant)
369
391
1,035
SO
SO
SO
0.0
23.0
39.7
100.0
25.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7.9
21.9
0.0
66.8
78.1
902
1,441
1,679
yes (insignificant)
yes (insignificant)
yes (insignificant)
975
2,260
SO
SO
0.0
0.0
23.8
4.0
0.0
0.0
0.0
0.0
26.7
87.4
49.5
8.6
3,512
4,679
yes (insignificant) 3,343 SO 6.0 12.7 20.8 0.0 54.2 12.3 5,296
yes (insignificant) 2,312 SO 6.6 19.7 0.0 0.0 29.8 50.5 7,174
yes (insignificant) 994 SO 0.0 100.0 0.0 0.0 0.0 0.0 2,322
yes (to review) 972 SO 60.0 29.5 0.0 2.0 0.0 68.5 3,172
yes (to review) 852 SO 0.0 30.1 0.0 0.0 0.0 69.9 3,368
yes (insignificant) 533 SO 0.0 17.8 0.0 0.0 19.7 62.5 2,193
yes (insignificant) 587 SO 0.0 23.7 0.0 0.0 0.0 76.3 2,126
yes (to review) 773 SO 16.3 55.6 0.0 0.0 0.0 44.4 935
yes (insignificant) 779 SO 0.0 8.4 29.8 30.0 0.0 31.8 943
yes (insignificant) 2,653 SO 0.0 79.5 0.0 0.0 0.0 20.5 7,370
867 SO 0.0 100.0 0.0 0.0 0.0 0.0 867
yes (to review) 1,067 SO 0.0 100.0 0.0 0.0 0.0 0.0 1,068
yes (insignificant) 895 SO 0.0 15.5 0.0 0.0 21.7 62.8 1,728
yes (insignificant) 612 SO 20.6 50.6 0.0 0.0 8.2 41.2 2,001
yes (insignificant) 766 SO 0.0 17.2 25.0 0.0 0.0 57.8 2,132

6 Data as at 30 June 2017 as a % of the total rentable area.

7 SO: sole ownership; con: condominium.

Commercial property details

Location,
address
description1
Property
Built renovated
Year
Acquired Fair value
in TCHF
Gross yield
in %2
Target rental
revenues
in TCHF
Vacancy rate
in %4
Lausanne, Rue du Port-Franc 22; Rue de la Vigie 1 com 2007 Nov 2009 18,820 6.3 1,188 0.2
Lausanne, Voie du Chariot 3 com 2008 Nov 2009 15,680 5.4 848 0.0
Lausanne, Voie du Chariot 4/6 com 2008 Nov 2009 32,570 5.7 1,850 0.0
Lausanne, Voie du Chariot 5/7 com 2008 Nov 2009 35,510 4.7 1,661 0.0
Lucerne, Alpenstrasse 9 com/res 1890 2001/2010 Jun 2007 13,120 4.3 566 0.0
Neuhausen, Victor-von-Bruns-Strasse 19 com 2007 Mar 2007 9,300 7.8 727 22.4
Regensdorf, Althardstrasse 10 com 1982 Dec 2001 20,240 9.3 1,873 10.7
St. Gallen, Schochengasse 6 com 1974 2000 Feb 2004 17,600 6.3 1,106 0.5
St. Gallen, St. Leonhardstrasse 22 com 1900 2002/2006 Dec 2004 5,730 4.7 271 0.0
St. Gallen, Wassergasse 42/44 com 1966 2000 Feb 2004 15,860 6.3 992 7.5
St. Gallen, Wassergasse 50/52 com 1998 Feb 2004 13,230 6.2 824 0.0
Winterthur, Industriestrasse 26 com 1994 2002 Oct 1999 20,100 7.6 1,524 2.7
Zurich, Bahnhofplatz 4 com 1881 2002/2005 Jul 2006 22,630 4.1 918 4.6
Zurich, Friedaustrasse 17 com 1968 2013 Oct 1998 14,760 4.7 686 0.0
Zurich, Friesenbergstrasse 75; Im Tiergarten 7 com 1976/1992 1999 Feb 2014 86,800 6.7 5,827 8.0
Zurich, Hardturmstrasse 3/3a/3b
(Mobimo-Hochhaus) com 1974 2001/2008 Nov 1999 63,230 5.0 3,163 0.0
Zurich, Rautistrasse 12 com 1972 2011 Nov 1999 20,970 6.7 1,409 19.1
Zurich, Thurgauerstrasse 23; 1963/1968/
Siewerdtstrasse 25 com 1985 1998 Mar 2002 14,100 6.6 926 0.0
Zurich, Treichlerstrasse 10; Dolderstrasse 16 com 1963 2007 May 2014 15,370 5.6 855 0.6
Zurich, Turbinenstrasse 18 (Mobimo Tower Hotel) com/h 2011 May 2008 122,310 6.0 7,295 0.0
62 Commercial investment properties 1,328,070 5.8 77,536 5.9
Lausanne, Avenue d'Ouchy 4 – 6 com 1962 May 2010 60,740 4.8 2,889 7.1
Lausanne, Rue de Genève 19 com 1893 2002 Nov 2009 3,640 4.6 167 52.4
Lausanne, Rue de Genève 21 com 1902 Nov 2009 3,530 10.2 358 61.6
Lausanne, Rue des Côtes-de-Montbenon 14 com 1963 Nov 2009 1,330 7.6 101 0.0
Lausanne, Rue du Port-Franc 20;
Rue de Genève 33 com 2007 Nov 2009 38,160 4.6 1,764 0.0
Regensdorf, Althardstrasse 30 com 1976 Dec 2001 14,000 12.1 1,698 89.7
6 Development properties
(commercial properties)
121,400 5.7 6,977 29.2

The acquisition costs for the commercial investment properties amount to a total of TCHF 1,170,385. The acquisition costs for the development properties (business) amount to a total of TCHF 145,938.

1 Com: commercial property; h: hotel; res: residential property.

2 Target rental income as at 30 June 2017 as a % of market value.

4 Vacancy rate as at 30 June 2017 as a % of target rental income.

Fair value
Target rental
Vacancy rate
Gross yield
revenues
in %2
Total rentable
area in m2
Office space Sales space Commercial Residential
space in %6
Vacant area Ownership7 Site area in m2 polluted sites
Register of
in TCHF
in %4
in %6 in %6 space
in %6
Other
in %6
in %6
0.2 4,065 74.7 9.6 0.0 0.0 15.7 5.2 SO 1,161 yes (insignificant)
0.0
0.0
2,278 73.4 17.3 0.0 0.0 9.3 0.0 SO 747 yes (insignificant)
5,452 32.3 64.9 0.0 0.0 2.8 0.0 SO 1,788 yes (insignificant)
4,947 54.9 15.5 0.0 15.6 14.0 0.0 SO 1,622 yes (insignificant)
no
1,986 12.6 13.1 0.0 64.6 9.7 0.0 SO 569
2,806 93.8 0.0 0.0 0.0 6.2 29.5 SO 1596 no
no
10.7 13,540 39.3 28.6 7.5 0.0 24.6 5.7 SO 7,714 no
0.5
0.0
4,458 95.4 0.0 0.0 0.0 4.6 1.7 SO 1,315
1,092 79.1 12.7 0.0 0.0 8.2 0.0 SO 219
7.5 3,980 86.3 0.0 0.0 9.3 4.4 9.2 con
(867/1,000)
1,713
3,554 72.3 0.0 0.0 0.0 27.7 0.0 SO 1,372
0.0
2.7
11,327 64.6 0.8 20.4 0.0 14.2 0.9 SO 3,583 yes (to review)
4.6 758 63.5 27.8 0.0 0.0 8.7 9.8 SO 189
0.0 2,572 57.2 0.0 12.1 10.1 20.6 0.0 SO 869
22,825 76.5 0.0 0.0 0.0 23.5 8.3 SO 11,532
0.0 8,226 94.4 0.0 0.0 0.0 5.6 0.0 SO 1,975
19.1 6,024 74.2 9.6 6.5 1.3 8.4 9.4 SO 1,894 yes (petrol station)
0.0
3,901 59.1 6.8 6.9 0.0 27.2 0.0 SO 2,651
2,682 48.3 0.0 18.2 7.1 26.4 0.0 SO 1,299
0.0 21,254 0.0 0.0 0.0 0.0 100.0 0.0 SO 5,808
5.9 336,726 40.6 12.0 15.9 4.9 26.6 6.3 206,944
7.1 26,663 50.8 8.4 0.3 0.0 40.5 7.7 SO 12,612 yes (to review)
3,548 26.7 16.9 0.0 0.0 56.4 38.4 SO 1,838 yes (insignificant)
61.6 3,575 42.0 1.3 0.0 0.0 56.7 35.4 SO 1,530 yes (insignificant)
0.0 640 0.0 0.0 100.0 0.0 0.0 0.0 SO 529 yes (to review)
9,856 34.1 58.5 4.4 0.0 3.0 0.0 SO 2,816 yes (insignificant)
12,537 53.6 0.0 14.7 2.3 29.4 89.7 SO 9,355

6 Data as at 30 June 2017 as a % of the total rentable area.

7 SO: sole ownership; con: condominium.

Residentialpropertydetails

Location,
address
description1
Property
Built renovated
Year
Acquired Fair value
in TCHF
Gross yield
in %2
Target rental
revenues
in TCHF
Vacancy rate
in %3
Affoltern am Albis, Alte Obfelderstrasse 31 – 35 res 2013 Aug 2011 31,370 3.9 1,217 5.6
Bergdietikon,
Baltenschwilerstrasse 3/5/7/9/11/13/15/17 res 1973/1980 1992/2007 Oct 2007 24,280 4.1 986 2.5
Binz, Zürichstrasse 244/246 res 1966 1997/2001 Nov 2005 12,540 4.0 502 5.1
Carouge, Place d'Armes 8 res 1932 2014 Nov 2015 9,030 5.3 475 3.5
Carouge, Rue de la Fontenette 13 res 1973 2014 Nov 2015 6,870 5.2 355 0.3
Geneva, Boulevard Carl-Vogt 6 res 1948 Nov 2015 8,760 4.6 400 0.0
Geneva, Boulevard de la Cluse 18 res 1951 Nov 2015 6,120 4.7 285 0.0
Geneva, Rue Chandieu 5 res 1976 2005 Nov 2015 12,170 4.5 551 2.0
Geneva, Rue Daubin 35 res 1952 2012 Nov 2015 7,450 4.8 358 5.2
2005/2010/
Geneva, Rue de la Cannonière 11 res 1951 2011/2013 Nov 2015 8,230 5.0 413 0.0
Geneva, Rue de la Ferme 6 res 1900 2008/2010/
2012/2014
Nov 2015 6,750 4.8 326 10.1
Geneva, Rue de la Poterie 34 res 1895 2012 Nov 2015 3,560 5.1 181 0.0
Geneva, Rue de l'Ecole-de-Médecine 3 res 1900 2014 Nov 2015 4,150 4.9 204 0.0
Geneva, Rue de Malatrex 30 res 1951 2012 Nov 2015 8,660 5.6 482 0.0
Geneva, Rue de Vermont 9 res 1969 2014 Nov 2015 7,900 5.3 416 2.4
Geneva, Rue des Confessions 9 res 1923 2013 Nov 2015 7,670 3.9 300 0.0
Geneva, Rue des Cordiers 5 res 1965 2008 Nov 2015 18,250 4.6 832 1.3
Geneva, Rue des Peupliers 13 res 1920 2010 Nov 2015 2,950 5.6 166 0.0
Geneva, Rue des Photographes 12 res 1905 2013 Nov 2015 4,380 4.9 214 0.0
Geneva, Rue Dr-Alfred-Vincent 23 res 1950 2010 Nov 2015 4,090 4.6 190 0.0
Geneva, Rue du 31 Décembre 35 res 1956 2014 Nov 2015 7,880 4.7 372 0.0
Geneva, Rue du Village Suisse 4 res 1900 2005 Nov 2015 3,110 5.3 166 0.0
Geneva, Rue Henri-Blanvalet 14 res 1915 2012 Nov 2015 6,070 4.6 280 0.8
Geneva, Rue Schaub 3 res 1960 2010 Nov 2015 9,660 4.5 437 2.8
Geneva, Rue Zurlinden 6 res 1985 2012 Nov 2015 11,360 4.9 561 16.3
Lausanne, Avenue d'Ouchy 70 res/com 1906 2004 Nov 2009 5,800 4.7 271 0.0
Lausanne, Avenue d'Ouchy 72/74 res 1907 Nov 2009 3,120 4.6 145 0.0
Lausanne, Avenue d'Ouchy 76 res/com 1907 2004 Nov 2009 16,930 4.1 700 0.0
Lausanne, Avenue Edouard Dapples 9/13/15/15a res 1925/1926 Apr 2013 22,130 4.3 960 3.9
Lausanne, Place de la Navigation 2 res/com 1895 2004 Nov 2009 6,940 4.3 298 11.1
Lausanne, Rue Beau-Séjour 8 res 2011 Nov 2009 103,750 4.0 4,165 0.2
Nov 2009/
Lausanne, Rue des Fontenailles 1 res 1910/1963 1993 Apr 2013 4,540 4.3 196 0.0
Lausanne, Rue Voltaire 2 – 12 res 2015 Oct 2012 74,600 3.8 2,853 1.2
Meyrin, Rue de Livron 17 – 19 res 1967 2010 Nov 2015 17,180 5.2 898 2.1
Münchwilen, Buchenacker 22/24/26/28;
Unterer Buchenacker 7 res 1994/1995 Jun 2007 15,290 5.0 772 3.1
Onex, Avenue des Grandes-Communes 21 – 23 – 25 res 1964 2012/2014 Nov 2015 37,800 4.9 1,840 3.5
Opfikon-Glattbrugg, Farmanstrasse 47/49 res 2008 Dec 2010 29,050 3.7 1,072 4.1
Regensdorf, Schulstrasse 95/97/99/101/103/105 res 2015 Jun 2007 61,460 3.8 2,357 0.0
Wängi,
Brühlwiesenstrasse 11a/11b/15a/15b/19a/19b res 1984/1988 Jun 2007 13,490 5.4 730 2.1
Zurich, Katzenbachstrasse 239 res 1969 Mar 2008 6,570 4.5 294 3.5
Zurich, Letzigraben 134 – 136 res 2016 Sep 2006 67,000 3.4 2,280 0.9
41 Residential investment properties 718,910 4.2 30,498 2.1

The acquisition costs for the residential investment properties amounts to a total of TCHF 554,214.

1 Com: commercial property; res: residential property.

² Target rental income as at 30 June 2017 as a % of market value.

3 Vacancy rate as at 30 June 2017 as a % of target rental income.

area in m2
rentable
Total
apartments
1 – 1 ½-
room
apartments
2 – 2 ½-
room
apartments
3 – 3 ½-
room
apartments
4 – 4 ½-
room
apartments
5 or more
room
apartments
Total
Other forms
of use in %4
Vacant area
in %4
Ownership5 Site area in m2 Register of
4,706 0 1 15 26 0 42 0.8% 5.9 SO 5,174 no
5,225 0 8 18 28 0 54 5.9% 3.0 SO 11,131 no
2,580 0 6 12 12 0 30 4.5% 3.7 SO 4,025 no
1,307 0 19 8 0 0 27 4.3% 2.4 SO 250 no
1,188 1 6 7 3 6 23 0.0% 0.0 SO 230 no
2,080 1 5 6 6 0 18 24.3% 0.0 SO 436 no
855 0 14 5 2 0 21 0.0% 0.0 SO 228 no
2,010 0 0 12 12 2 26 5.5% 0.0 SO 315 no
1,043 1 20 0 7 0 28 0.0% 2.6 SO 624 no
1,145 1 14 12 1 0 28 0.0% 0.0 SO 248 no
857 5 16 4 0 0 25 3.2% 9.9 SO 272 no
701 2 7 4 2 0 15 0.0% 0.0 SO 242
800 0 0 6 4 0 10 12.5% 0.0 SO 492
1,289 20 10 0 0 0 30 10.2% 0.0 SO 241
1,153 9 0 0 5 4 18 0.0% 0.0 SO 426
1,316 0 3 15 5 0 23 3.0% 0.0 SO 351
2,786 0 0 2 22 3 27 13.9% 9.0 SO 1157
513 0 2 3 4 1 10 0.0% 0.0 SO 147
685 0 3 4 1 1 9 5.8% 0.0 SO 188
707 0 8 6 1 0 15 0.0% 0.0 SO 234
1,395 0 18 0 6 0 24 0.0% 0.0 SO 290
511 0 3 5 2 1 11 0.0% 0.0 SO 145
841 0 6 4 4 0 14 4.4% 3.1 SO 260
1,857 0 0 14 12 1 27 4.7% 2.7 SO 439
1,609 0 3 4 8 0 15 6.2% 15.7 SO 437
1,122 0 0 5 1 4 10 0.0% 0.0 SO 340 yes (insignificant)
995
2,567
0
0
6
0
3
0
3
2
0
8
12
10
0.0%
17.6%
0.0
0.0
E
SO
n/a
778
yes (insignificant)
7,530 0 3 8 28 17 56 2.0% 2.3 SO 5,246 yes (insignificant)
1,313 0 2 0 2 4 8 0.0% 4.2 SO 398 yes (insignificant)
10,288 0 19 55 16 11 101 2.3% 1.6 SO 3,758 yes (insignificant)
1,071 1 0 0 4 4 9 0.0% 0.0 SO 853
8,663 1 21 41 21 14 98 0.6% 0.0 SO 4,743
3,972 0 0 12 24 12 48 2.1% 1.3 SO 670
4,367 0 4 20 20 0 44 4.9% 3.4 SO 5,740
6,570 0 0 54 53 0 107 0.0% 2.9 SO 930
3,609 1 13 16 9 0 39 0.4% 2.1 SO 3,840
8,716 0 16 50 30 0 96 0.0% 0.0 SO 10,551
4,439 0 6 21 21 0 48 2.1% 0.5 SO 7,413
1,589 0 5 8 5 0 18 0.0% 0.0 SO 1,987
6,977 0 33 34 5 0 72 2.2% 0.0 SO 5,003
112,947 43 300 493 417 93 1,346 3.1% 1.9 80,232

4 Data as at 30 June 2017 as a % of the total rentable area.

5 SO: sole ownership; E: easement.

Detailsofinvestmentpropertiesunder construction

Location,
address
Description of
property1
Built Realisation
period
Acquired Fair value
in TCHF
Aarau, Site 2 (Torfeld Süd) res/com 1905/1916/
1929/1943/ 1954
2016/2018 Oct 2006 58,110
Horgen, Seestrasse 93 (Seehallen) com 1956 2017/2018 Nov 2005 25,610
Mar 2005/
Kriens, Am Mattenhof 4 com/res 2016/2019 Feb 2013 12,080
Mar 2005/
Kriens, Am Mattenhof 6 com/h 2016/2019 Feb 2013
Mar 2005/
4,520
Kriens, Am Mattenhof 8 com/res 2016/2019 Feb 2013 5,710
Mar 2005/
Kriens, Am Mattenhof 12/14 res/com 2016/2019 Feb 2013 26,670
Mar 2005/
Kriens, Am Mattenhof 16 com/res 2016/2019 Feb 2013 11,300
Lausanne, Rue des Côtes-de-Montbenon 1/3/5 com 1930 2016/2017 Nov 2009 7,900
Rheinfelden, Rütteliweg 8; Spitalhalde 40 res 1972 2017 Sep 2006 26,450
Zurich, Hohlstrasse 485 res/com 1896/1928 2016/2018 Apr 2010 105,370
10 Properties under construction 283,720

Detailsofowner-occupiedproperties

Location,
address
Description of
property1
Built Year renovated Acquired Carrying
amount
in TCHF
Total rentable
Ownership3
area in m2
Site area
in m2
Küsnacht, Seestrasse 59 com 2006 Sep 2002 9,800 2,046
SO
2,125
Lausanne, Rue de Genève 7 com2 1932 1992/2011 Nov 2009 3,210 632
SO
3,343
Lausanne, Rue des Côtes-de-Montbenon 16 com2 1912 2007 Nov 2009 532 170
SO
850
3 Properties 13,542 2,848
6,318

Detailsofmajor shareholdings

Location,
address
Description of
property1
Built Year renovated Acquired Fair value
in TCHF
Lausanne, Flonplex multiplex cinema 2003 Nov 2009 9,364
Lausanne, Parking du Centre CP 2002 Nov 2009 31,435
2 Co-ownership properties 40,799

1 Com: commercial property; h: hotel; CP: multi-storey car park; res: residential property.

² Share of owner-occupied properties.

Total rentable
Ownership3
area in m2
polluted sites
Register of
Site area
in m2
19,152 18,526
SO yes (insignificant)
15,156 10,542
SO yes
7,715 3,130
SO no
2,875 1,840
SO no
4,835 2,080
SO no
13,598 5,189
SO no
8,862 3,554
SO no
2,046 1,691
SO yes (to review)
5,588 14,817
SO no
15,583 8,304
SO no
95,411 69,672
com
2006
Sep 2002
9,800
2,046
SO
2,125
no
com2
1932
1992/2011
Nov 2009
3,210
632
SO
3,343
yes (insignificant)
com2
1912
2007
Nov 2009
532
170
SO
850
yes (insignificant)
13,542
2,848
6,318
Year renovated
Description of
Total rentable
area in m2
property1
Fair value
Acquired
in TCHF
Built
Ownership Site area
in m2
polluted sites
Register of
Lausanne, Flonplex
multiplex cinema
2003
Nov 2009
9,364
5,519
co-ownership 40% 0 yes (insignificant)
Lausanne, Parking du Centre
CP
2002
Nov 2009
31,435
25,808
co-ownership 50% 0 yes (insignificant)
2 Co-ownership properties
40,799
31,327

3 SO: sole ownership.

Introduction

Scope of Review We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. We have been engaged to review the accompanying consolidated statement of balance sheet of Mobimo Holding AG as at 30 June 2017 and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for the six-month period then ended, and other explanatory notes (the consolidated interim financial statements) on pages 16 to 43. The Board of Directors is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with International Accounting Standard 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) issued by the SIX Swiss Exchange. Our responsibility is to express a conclusion on these consolidated interim financial statements based on our review.

Conclusion Scope of Review

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements do not give a true and fair view of the financial position of the entity as at 30 June 2017, and of its financial performance and its cash flows for the six-month period then ended in accordance with International Accounting Standard 34 Interim Financial Reporting and are not prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) issued by the SIX Swiss Exchange. We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Kurt Stocker Reto Kaufmann Licensed Audit Expert Licensed Audit Expert Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements do not give a true and fair view of the financial position of the entity as at 30 June 2017, and of its financial performance and its cash flows for the six-month period then ended in accordance with International Accounting Standard 34 Interim Financial Reporting and are not prepared, in all material respects, in accordance with International Accounting Standard 34 Interim Financial Reporting and article 17 of the Directive on Financial Reporting (Directive Financial Reporting, DFR) issued by the SIX Swiss Exchange.

Zurich, 28 July 2017 KPMG AG

Kurt Stocker Reto Kaufmann Licensed Audit Expert Licensed Audit Expert

Zurich, 28 July 2017

KPMG AG, Badenerstrasse 172, PO Box, CH-8036 Zurich

KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss legal entity. All rights reserved.

EPRA KEY PERFORMANCE MEASURES

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

A EPRA Earnings and EPRA Earnings Per Share Unit HY 2017 HY 2016
Earnings per IFRS income statement TCHF 62,376 89,454
(i) Changes in value of investment properties, development properties held for investment and
other interests
TCHF –30,569 –20,864
(ii) Profits or losses on disposal of investment properties, development properties held for invest
ment and other interests
TCHF –17,755 –33,861
(iii) Profits or losses on sales of trading properties and development services adjusted TCHF –490 –9,468
(iv) Tax on profits or losses on disposals TCHF 5,257 14,421
(v) Negative goodwill/goodwill impairment TCHF n/a n/a
(vi) Changes in fair value of financial instruments and associated close-out costs TCHF –1,394 –909
(vii) Acquisition costs on share deals and non-controlling joint venture interests TCHF n/a n/a
(viii) Deferred tax in respect of EPRA adjustments TCHF 7,032 –16,686
(ix) Adjustments (i) to (viii) above in respect of joint ventures TCHF 0 0
(x) Non-controlling interests in respect of the above TCHF 710 352
EPRA Earnings TCHF 25,167 22,438
Average number of shares outstanding 6,217,092 6,215,647
EPRA Earnings Per Share CHF 4.05 3.61

The definitions of the above key performance measures can be found at www.epra.com.

Mobimo Half-Year Report 2017 47

Diluted NAV after the exercise of options, convertibles and other equity instruments TCHF 1,353,324 1,350,936
Include
(i.a) Revaluation of investment properties (if IAS 40 cost model is used) TCHF n/a n/a
(i.b) Revaluation of investment property under construction (IPUC) (if IAS 40 cost model is used) TCHF n/a n/a
(i.c) Revaluation of other non-current investments (owner-occupied properties and joint ventures) TCHF 23,952 26,207
(ii) Revaluation of tenant leases held as finance leases TCHF n/a n/a
(iii) Revaluation of trading properties TCHF 14,712 26,172
Exclude
(iv) Fair value of financial instruments TCHF 34,995 39,834
(v.a) Deferred tax TCHF 161,609 161,572
(v.b) Goodwill as a result of deferred tax TCHF n/a n/a
Adjustments to (i) to (v) in respect of joint ventures TCHF 2,339 2,344
EPRA NAV TCHF 1,590,931 1,607,065
Diluted no. of shares outstanding 6,217,669 6,216,126
EPRA NAV per share CHF 255.87 258.53
C Triple Net Asset Value (NNNAV) Unit 30.6.2017 31. 12. 2016
EPRA NAV TCHF 1,590,931 1,607,065
(i) Fair value of derivative financial instruments TCHF –34,995 –39,834
(ii) Fair value of financial liabilities TCHF –93,259 –105,182
(iii) Deferred tax TCHF –158,091 –156,089
EPRA NNNAV TCHF 1,304,585 1,305,960
Diluted no. of shares outstanding 6,217,669 6,216,126
EPRA NNNAV per share CHF 209.82 210.09

B EPRA Net Asset Value Unit 30.6.2017 31.12.2016

NAV per consolidated financial statements TCHF 1,353,324 1,350,936 Effect of exercise of options, convertibles and other equity instruments TCHF - -

The definitions of the above key performance measures can be found at www.epra.com.

D EPRA Net Initial Yield Unit 30.6.2017 31.12.2016
Investment properties – wholly owned TCHF 2,452,100 2,446,798
Investment properties – share of joint ventures / funds TCHF 40,799 43,115
Trading property TCHF 262,682 304,844
Less developments TCHF –519,952 –518,574
Completed property portfolio TCHF 2,235,629 2,276,183
Allowance for estimated purchasers' costs TCHF 0 0
Gross up completed property portfolio valuation TCHF 2,235,629 2,276,183
Annualised cash passing rental income TCHF 117,310 119,968
Direct cost of investment properties TCHF –14,370 –17,324
Annualised net rents TCHF 102,940 102,644
Add: additional notional rent expiration of rent free periods or other lease incentives TCHF 0 0
Topped-up net annualised rent TCHF 102,940 102,644
EPRA net initial yield % 4.6 4.5
EPRA "topped-up" net initial yield % 4.6 4.5
E EPRA Vacancy Rate Unit 30.6.2017 31. 12. 2016
Estimated rental income potential from vacant space TCHF 5,256 5,363

Estimated rental income from overall portfolio TCHF 108,033 111,077

EPRA vacancy rate % 4.9 4.8

The definitions of the above key performance measures can be found at www.epra.com.

ADDITIONAL INFORMATION

Publication overview

Annual report Half-year report

HALF-YEAR REPORT 2017

Sustainability report

Mobimo publishes information on its business performance every six months. The annual report is available in German, English and French, with the French report being an abridged version. The halfyear report is published in German and English. The sustainability report is released once a year in both German and English. The original German version is always binding.

All of the publications and further information are available at www.mobimo.ch.

Publishing details

Overall responsibility: Mobimo Holding AG

Development of content and design concept, consulting and production: PETRANIX Corporate and Financial Communications AG, Adliswil-Zurich

Photos: Markus Bertschi, www.markusbertschi.com Bruno Eberli, www.eberli.ch Mike Kessler, www.profifoto.ch Dominique Meienberg, www.dominiquemeienberg.ch

Contact adresses

Mobimo Holding AG

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

Mobimo Management AG

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

Mobimo Management SA

Rue de Genève 7 CH-1003 Lausanne Tel. +41 21 341 12 12 Fax +41 21 341 12 13

Contact for Investors

Dr. Christoph Caviezel, CEO Manuel Itten, CFO Tel. +41 44 397 11 95 [email protected]

Share register

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

Mobimo Holding AG

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

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