Intershop: Net profit of almost CHF 60 million
The Intershop Group increased its profit by 5.9 percent year-on-year in fiscal year 2016. Net profit reached CHF 59.5 million or CHF 29.77/share, which corresponds to a return on equity of 10.7 percent.
In addition to the sale of two smaller investment properties and a condominium with a gain of CHF four million, the sale of the investment in Corestate Capital S.A. made a contribution of CHF 7.6 million to earnings, Intershop reports. Proceeds that were eliminated by the sales were offset by completion and full occupancy of the residential property in Kilchberg and the Purchase of the World Trade Center Lausanne compensated for.
As of the balance sheet date, Intershop's portfolio comprised 58 properties, including development and promotion properties as well as land parcels. As in the previous year, rental income comprised 48 percent office and education, 33 percent commercial and logistics, six percent retail and gastronomy, six percent residential, and seven percent parking.
The value of the real estate portfolio at the end of the reporting year was 1.36 billion, around nine percent more than in the previous year. After deducting the investments made in the reporting period, the market value of the portfolio increased byTP3.6 million (+0.3%).
Vacancy rate on the rise
At 84 million, rental income remained at the previous year's level. While income from investment properties increased slightly, income from development properties declined. According to Intershop, this was due in particular to the fact that the property in Au-Wädenswil is becoming increasingly empty as a result of the planned conversion. The vacancy rate increased to 11.3 percent.
Intershop is "fundamentally optimistic" about the current fiscal year. The strengthened rental income base resulting from the acquisition of the World Trade Center Lausanne facilitates the sale of real estate and at the same time ensures that a net profit from rental activities of at least 40 million is generated. This is important for maintaining dividend stability.
However, due to the still challenging leasing environment, the company does not expect the vacancy rate of investment properties to decrease significantly within the year.
