Intershop increases dividend
The Intershop Group was able to significantly increase its profit in fiscal year 2017 compared to the previous year's result.
Intershop Holding AG reports a 6.7 increase in profit for fiscal year 2017 compared to the previous year's result. Net profit reached CHF 63.5 million or CHF 31.76/share, corresponding to a return on equity of 10.7%, according to the company. Shareholders' equity as of Dec. 31, 2017, rose to CHF 619 million and is now CHF 310/share (equity ratio: 43.8%). According to Intershop, the net profitability of the investment properties is 5.4 percent; the vacancy rate of the investment properties decreased slightly to 11.0 percent.The Board of Directors proposes to the Annual General Meeting a 10 percent higher dividend distribution of CHF 22.00 per share. Rental income increased by 6 percent year-on-year due to acquisitions. This, together with the income of CHF 9.9 million from the sale of properties, enabled the company to once again achieve a pleasing return on equity of 10.7 percent, the statement added.
At the balance sheet date, the portfolio comprised 56 properties including development and promotion properties. Rental income in the reporting period was made up of the following types of use: 51% office and education, 29% commercial and logistics, 6% retail and gastronomy, and 6% residential and 8% parking. The market value of the real estate portfolio at the end of the reporting year was CHF 1,363 million.
Intershop is confident for the current fiscal year. Excluding transactions, slightly declining to stable rental income is expected. Although the rental business is expected to remain challenging, Intershop aims to compensate for the loss of rental income due to sales and to further reduce vacancies. For the year as a whole, Intershop expects the vacancy rate of its investment properties to be reduced by 0.5 to 1.0 percentage points.
