UBS downgraded Swiss developer Mobimo to sell from neutral, citing a projected peak in development earnings for FY25. The brokerage lifted its 12‑month target to CHF330, despite a record‑high premium of 18% over forward net asset value. Investors now face a sharper valuation squeeze.

UBS forecasts development profits of roughly CHF50 million in FY25, about 20% of group earnings before interest and tax, before falling to just over CHF20 million in FY26 as high‑margin projects wind down. Rental income is expected to stay flat at CHF124 million in FY25, with modest growth thereafter.

With a dividend yield near 2.6% and a payout ratio above 90% from FY26, UBS expects the dividend to hold at CHF10.25 per share. However, the broker warns that adjusted earnings per share will decline around 7% annually through FY28, tightening upside for shareholders.

Investors should monitor Mobimo’s transition from development to rental‑focused operations, as the company’s valuation hinges on future project pipelines. Analysts note that Swiss interest‑rate cuts and low inflation will curb residential rent growth, potentially limiting the firm’s ability to sustain high margins beyond FY25.