Mobimo first-half profit jumps 67% on property revaluations, development sales

Mobimo Holding AG (SIX:MOBN) reported a 67.3% surge in first-half 2025 profit to CHF 109.7 million, primarily driven by a tripling of net property revaluation gains and a 90.5% increase in income from development projects and trading property sales, particularly in the residential segment. While operating profit rose 73.6%, EPRA profit declined 6.1%. The Swiss real estate firm's portfolio value expanded to CHF 3.92 billion, and total assets surpassed CHF 4 billion, further bolstered by the strategic acquisition of EMWE Immobilien AG's residential portfolio, indicating continued portfolio growth and strong demand for residential properties.

Analysis

Mobimo Holding AG (MOBN) reported a robust first half for 2025, with net profit surging 67.3% to CHF 109.7 million. This exceptional growth, however, is primarily attributable to a more than threefold increase in non-cash property revaluation gains, which reached CHF 71.6 million, largely from its residential portfolio. A more accurate measure of core operational performance, operating profit excluding these revaluations, showed a solid but more moderate increase of 19% to CHF 73 million. The company's development and trading property sales were a significant contributor, with income jumping 90.5% to CHF 24.6 million, evidenced by the high sales and reservation rates across projects like Edenblick and Feuerfalter. In contrast, the investment property segment remained stable, with net rental income unchanged at CHF 62.5 million, though like-for-like rental income did rise 2.2% due to interest rate adjustments. A crucial counterpoint to the headline profit is the 6.1% decline in EPRA profit, a key metric for recurring earnings, which fell to CHF 35.7 million. The company is actively expanding its portfolio, highlighted by the strategic acquisition of EMWE Immobilien AG, which will be partly financed by Mobimo shares and is set to boost annual rental income by approximately CHF 6.5 million. This expansion has contributed to total assets surpassing CHF 4 billion, though the equity ratio has slightly decreased to 47.4% and the LTV ratio edged up to 43.2%. The market has responded with extreme bullishness, reflected in the stock's reported 67.79% gain this month.

Key Decisions for Investors

• Investors should recognize that the headline 67.3% profit growth is heavily skewed by non-cash revaluations and should instead focus on the 6.1% decline in recurring EPRA profit for a more sober view of core profitability.
• Given the stock's significant 67.79% recent appreciation, it may be prudent for prospective investors to await a consolidation, while existing shareholders could consider trimming positions to realize gains.
• Monitor the execution of the development pipeline and the successful integration of the EMWE Immobilien portfolio, as these are critical for generating the future cash flow needed to justify the current elevated valuation and support the balance sheet.
• Pay close attention to the loan-to-value ratio of 43.2% and the declining equity ratio, as further portfolio expansion could increase leverage and introduce risks in a shifting interest rate environment.