2020

04.06.2020 – Mobimo Holding AG

Mobimo Holding AG: Business update regarding the impact of the coronavirus crisis on Mobimo

Mobimo Holding AG / Key word(s): Miscellaneous
Mobimo Holding AG: Business update regarding the impact of the coronavirus
crisis on Mobimo

04-Jun-2020 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Business update regarding the impact of the coronavirus crisis on Mobimo

›› No impact on residential portfolio (just under 40% of rental income from
investment properties)
›› Hotels/catering establishments most severely affected (10% of rental
income)
›› Substantial relief for small businesses and catering establishments
thanks to rent waivers
›› No delays in construction projects

Lucerne/Küsnacht, 4 June 2020 - Despite the coronavirus crisis, it has
largely been business as usual for Mobimo. Defining and implementing
measures to support affected commercial tenants has been a key priority over
the past few weeks.

Mobimo's agile business model is proving its worth in the current crisis
situation. Thanks to its position as a broadly diversified real estate
company, Mobimo has essentially coped well over the past few months, which
have been dominated by the coronavirus crisis. Most departments have been
able to continue operating as normal, with the majority of employees working
from home. In addition to usual day-to-day business activities, the main
focus has been on defining and implementing support measures for commercial
tenants affected by the lockdown.

Publication of half-year results on 31 July 2020
The following statements are a business update following an extraordinary
and unexpected phase. The company will be able to provide more comprehensive
statements when the half-year results are published on 31 July 2020. Mobimo
can continue to look to the future with confidence thanks to its
high-quality investment portfolio, broad-based development pipeline in terms
of usage, high level of digitalisation and solid balance sheet.

Almost 40% of rental income from residential usage
As at the end of 2019, Mobimo had a highly diversified investment portfolio
comprising 59 commercial properties and 41 residential properties with a
market value of CHF 2.6 billion. Residential properties account for 47% of
the investment portfolio in terms of value and contribute 39% of rental
income. The majority of apartments are in the mid to low-price segment. For
more than 60% of apartments, the rent is less than CHF 2,000. As a result,
the coronavirus crisis will have hardly any impact on the residential
portfolio.

Impact of the lockdown on commercial usage
Mobimo generates a little over 20% of its rental income from investment
properties with types of use that have been affected by the lockdown, such
as retail, hotels and catering. Hotels and catering establishments in
particular (which account for 10% of rental income from the investment
portfolio) have been severely affected. Among retailers (some 11% of rental
income), the lockdown has chiefly affected non-food providers, who account
for around 80% of the category. Office and commercial spaces have been only
marginally affected. Office use accounts for a considerable proportion
(around 35%) of rental space in the Quartier du Flon district. Beyond this
type of use, which has been virtually unaffected, the lockdown in the
Quartier du Flon district has been particularly noticeable in relation to
ground floor tenants (retailers and catering establishments). Most
businesses - both in Lausanne and in Mobimo's other major districts and
properties - have now reopened.

Support for catering establishments and small businesses in particular
Mobimo has been working with affected tenants since mid-March to develop
sustainable support measures. The measures agreed to date provide relief for
small businesses and catering establishments in particular. Mobimo is
waiving the rent for April and May for commercial tenants whose net rent is
less than CHF 5,000 and who reopened on 27 April. Catering establishments in
major districts are also being granted a two-month rent waiver, as are
restaurants or cafés in other properties whose net rent is less than CHF
5,000. Individual agreements are being discussed with numerous tenants -
including those renting large spaces - that take their specific
circumstances, financial strength and future prospects into account.
Discussions have been and continue to be extremely constructive. The loss of
rental income due to the coronavirus crisis is expected to reach high
single-digit millions of francs. Only a small part of this amount concerns
waivers that have already been agreed with tenants. It also includes a much
larger figure relating to future agreements in the course of ongoing
negotiations.

Slowdown in first-time letting of commercial space
While there has been almost no drop-off in demand in the residential market,
with the last apartment in the Aeschbachquartier being let at the beginning
of April, interest in commercial space is more cautious. The transfer of the
properties in the mixed-use Mattenhof district in Kriens to the investment
portfolio at the beginning of 2020 and the above-mentioned stagnation in the
commercial sector are expected to lead to an increased vacancy rate of
around 5.5% by the middle of the year, up from 3.8% as at 31 December 2019.
The trend for the vacancy rate and rental income going forward will be
heavily dependent on the general economic environment.

Continued healthy demand for condominiums and developments for third parties
The coronavirus crisis has not led to any significant delays in Mobimo's
construction projects. Construction work on the 30 condominiums in Meggen
also began on schedule in May 2020. 40% of the apartments and 100% of the
commercial space have already been reserved. Mobimo does not currently
anticipate any radical changes in demand for condominiums in the mid-price
segment. Nor has there been any drop-off in demand for development services
for third parties.

Further information:
›› A telephone conference in German with CEO Daniel Ducrey will take place
today at 10.00 a.m. Dial-in data: +41 43 547 80 45| Conference ID: 448145

›› A telephone conference in English with CEO Daniel Ducrey will take place
today at 11.30 a.m. Dial-in data: +41 44 580 72 30 | Conference ID: 887914

If you have any questions, please contact:
›› Contact for analysts and investors:
Edwin van der Geest,
IR Representative
ir@mobimo.ch
+41 79 330 55 22

›› Contact for media:
Marion Schihin,
Head of Communications
medien@mobimo.ch
+41 44 397 11 86

www.mobimo.ch

About Mobimo:
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 nearly CHF 3.3 billion, the Group is one of the leading real estate
companies in Switzerland. The portfolio comprises investment and development
properties in first-class locations in German-speaking and French-speaking
Switzerland. Mobimo generates stable rental income with its residential and
commercial properties, while its development expertise and full pipeline
allows it to create value enhancement potential in its own portfolio and for
third parties. The investment volume of development properties for its own
portfolio totals around CHF 0.7 billion. Mobimo has a stable business model,
pursues a sustainable strategy and provides its shareholders with an
attractive return.


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