Mobimo H1 Profit Rises

Mobimo reported robust first-half financial results, with profit surging to CHF 109.7 million (including revaluation) from CHF 65.6 million year-over-year, and EBIT similarly rising to CHF 144.5 million. While revaluation gains significantly boosted headline figures, underlying operational performance also showed strength, with profit excluding revaluation increasing to CHF 51.5 million and Funds from Operations I (FFO I) growing significantly to CHF 59.7 million. Net rental income remained stable at CHF 72.6 million, with a 2.2% like-for-like increase, indicating solid operational improvements alongside revaluation-driven gains.

Analysis

Mobimo's first-half results demonstrate significant strength, driven by both asset revaluations and solid underlying operational performance. Reported profit surged to 109.7 million Swiss francs from 65.6 million francs year-over-year, with EBIT showing a similar leap to 144.5 million francs. While these headline figures were heavily influenced by revaluation gains, the core business also improved, as evidenced by profit excluding revaluations rising to 51.5 million francs from 47.8 million francs. A key indicator of operational health, Funds from Operations I (FFO I), grew substantially to 59.7 million francs from 46.2 million francs, signaling enhanced cash-generating capability. Although total net rental income remained flat at 72.6 million francs, the 2.2% increase on a like-for-like basis indicates positive organic growth within the existing property portfolio.

Key Decisions for Investors

• Investors should look beyond the headline profit jump and focus on the strong underlying operational metrics, particularly the significant growth in FFO I to 59.7 million francs and the 2.2% like-for-like rental income increase, which signal fundamental business health.
• Given that a substantial portion of the reported profit growth stems from non-cash revaluation gains, it is critical to assess the company's valuation based on core operational cash flow metrics like FFO I rather than on reported earnings.
• The stability of net rental income juxtaposed with like-for-like growth suggests investors should monitor the company's portfolio activity, such as property sales or acquisitions, which could impact future income streams.