Intershop increases dividend
As expected, the Intershop Group's net profit of CHF 71 million fell short of the previous year's record result. The dividend is nevertheless to be increased.
The Board of Directors proposes a dividend of CHF 25.00/share to the Annual General Meeting, Intershop announces. This is CHF 3 more than in the previous year.
According to the real estate company, net profit of CHF 71.0 million or CHF 37.33 per share was 41% lower than the previous year. the extraordinary result of the previous year. The return on equity is put at 10,9%.
As expected, rental income fell to82.8 million (previous year:88 million) due to the sale of properties and the removal of a major development property from the portfolio. The gross return on investment properties was 6.2%, Intershop added. The net return on investment properties was reportedly 5.4%; the vacancy rate fell from 9.8% to 8.0%.
On the balance sheet date, the portfolio comprised 54 properties including development and promotion properties with a value of 1.31 billion, an increase of 0.8% compared to the previous year. The revaluation of the portfolio - after deducting investments - resulted in an appreciation ofTP16.6 million orTP1.31T, it added. The net return of the yield portfolio remained stable at 5.4%.
Intershop expects vacancy rate to rise
For the current fiscal year, Intershop expects the vacancy rate to increase to around 10%, as the tenant in the World Trade Center Lausanne has given notice and will vacate the space in the course of the year.
Construction of the Gellertstrasse promotion project in Basel is expected to be completed by the end of 2020. The company expects a profit in the low double-digit million range from the sale of the condominiums. However, it is not yet foreseeable how many of the apartments can still be transferred in the current fiscal year, Intershop added.
The company still expects to generate a return on equity of at least 8% on a multi-year average, it adds. (ah)
