Intershop increases profit
Listed Intershop Holding AG posted lower real estate income in the first half of the year, but profit increased significantly. The company reported a 1.6 percent decrease in net real estate income to CHF 36.9 million. Meanwhile, the operating result at Ebit level rose by 23 percent to CHF 44.2 million and net profit by 19 percent to CHF 29.2 million.
The CHF 11.9 million profit from the sale of the 27 condominiums in the "eden5" project proved to be a key driver of the success, Intershop said. On the other hand, the extraordinary macroeconomic situation with the strong appreciation of the Swiss franc, which resulted in a value adjustment of the investment in Corestate Capital AG of CHF 1.9 million and a decline in the fair values of interest rate hedging instruments, would have had a negative impact on the result. The pro rata result of the associated Corestate Capital amounts to CHF 300,000 in the reporting period, taking into account the currency loss.
As of the balance sheet date, Intershop's portfolio comprised 59 properties including development and promotion projects. The market value of the properties at the end of the reporting period was CHF 1.23 billion. The vacancy rate increased slightly in the first six months; the corresponding rate at the end of the period was 11.5 percent. At the end of 2014, it was still eleven percent.
Shareholders' equity as of June 30, 2015 amounted to CHF 531 million, corresponding to an equity ratio of 38.2 percent.
Intershop considers the acquisition of larger properties and projects to be unlikely for the time being, while the company intends to selectively take advantage of opportunities to sell real estate. (ah)
