Intershop: Real estate income and net profit increase
Intershop Holding AG generated a net profit of CHF 31.4 million in the first half of 2016, almost eight percent more than in the same period of the previous year. Income from real estate increased by just under one percent to CHF 42 million.
As at the balance sheet date, Intershop's portfolio comprised 59 properties, including development and promotion projects. Of the rental income, 48% comes from the office and education segment, 32% from commercial and logistics, 7% from retail and gastronomy and 13% from residential and parking. The market value of the properties amounted to CHF 1.254 billion at the end of the reporting period and increased slightly by CHF 0.4 million after deduction of the investments made. At 5.7%, the net yield on the yield portfolio remained stable at the same level as the same period of the previous year despite the increase in the vacancy rate (11.6%).
The company's equity amounts to CHF 556 million, which corresponds to an equity ratio of 41.7 percent.
No acquisitions and withdrawal from abroad
In the first half of 2016, Intershop once again refrained from making acquisitions. According to the company, the focus remained on developing its own portfolio and letting. The residential project in Kilchberg has been completed on schedule and all apartments have been let. The "eden7" promotion project in Zurich was driven forward so that the demolition and sale of the condominiums and studios could begin after the balance sheet date.
Project work has begun on the "Albanteich-Promenade" site in Basel to prepare the planning application. For the "AuPark" project, discussions are being held with the relevant authorities regarding the design plan and the revision of the zoning plan, as well as with the Canton of Zurich regarding the future location of the "Zimmerberg" secondary school.
The sale of the last, subsequently approved apartment marked the completion of the "Résidence Bel Orne" project in Lausanne. Intershop did not complete any further sales transactions. A sales contract for the condominium share of the property in Widnau, which is mainly used as a hotel, was notarized with effect from the second half of the year, and Intershop granted a purchase right for the "Zuchwiler Hof" in Zuchwil, which can be exercised at the end of August 2016.
The sale of the investment in Corestate Capital Holding S.A. resulted in a substantial pre-tax profit of CHF 7.6 million. Following this divestment and the prior repayment of the loan granted to the Corestate Group, Intershop is no longer involved abroad.
Intershop expects "unchanged challenging conditions" for the coming months, as the economic environment is unlikely to improve in the short term. Intershop anticipates a vacancy rate of around twelve percent by the end of the year. Provided that the two sales transactions are completed, a profit contribution in the low single-digit million range is foreseeable. The resulting loss of rental income could probably only be partially compensated for. (ah)
