Intershop strongly expands profit
Intershop reports a net profit of CHF 144.2 million for fiscal year 2021, which is 84% more than in the previous year. The reason for the growth is primarily gains from real estate sales.
Despite the positive development of the Swiss economy, the reporting year 2021 was again affected by the Corona pandemic, Intershop announced when publishing its annual results. It said it had felt a reluctance among potential office space tenants, while demand for centrally located apartments and commercial/industrial space had remained intact.
Rental income reportedly fell by CHF 4.6 million to CHF 75.1 million. The reasons are mainly the sales of the previous year and vacancies due to renovations, the real estate company says. Nearly half of the rental income comes from office and education uses, a good third is attributable to commercial and logistics, and the remainder is divided between retail and gastronomy (7%), residential (6%) and parking (7%). Intershop puts the gross return on investment properties at 5.7%. The net yield is 4.9%.
The portfolio consists of 51 properties, of which 39 are investment properties and twelve are development and promotion properties. It had a value of CHF 1.38 billion at the end of the reporting year. The revaluation resulted, after deduction of investments, in an appreciation of 32.3 million or 2.6%. The vacancy rate of the investment properties amounts to 11%, to which, according to Intershop, ongoing refurbishments of large residential properties are the main contributors.
High profit from sales
The sale of real estate resulted in a gain of 106.1 million, which was mainly attributable to the sale of two investment properties and the condominiums of the promotion project in Basel. Operating profit (Ebit) rose from 107.6 million to 195.1 million, and the bottom line was a net profit of 144.2 million - an increase of 84% compared to the previous year (78.4 million).
Intershop is confident about the new fiscal year: The development projects are proceeding according to plan, and the real estate company expects slight rental income growth in the low single-digit percentage range. Furthermore, a vacancy rate of a good 10%, based on the current investment properties, is expected.
The building permit for the large AuPark residential project in Wädenswil is expected in the current year. Intershop is examining various strategic options: In addition to the realization of the development, this also includes sales scenarios, according to the company. (ah)
