Intershop Holding: Real estate income and profit decline
Intershop Holding reported a net profit of CHF 33.9 million in the first half of the year, around 19% less than in the previous year. Income from real estate also declined due to de-rentals and sales.
Due to the de-letting of development properties in Pfäffikon (SZ) and Baden as well as property sales, rental income fell significantly as expected, Intershop reports. In addition, the rental successes could not compensate for the negative income effects due to the Corona pandemic, which is why rental income fell by 5.8% to 39.5 million. The gross return on investment properties therefore declined by 0.2 percentage points to 6.0%.
As of the balance sheet date, the portfolio comprised 53 properties including development and promotion properties. The vacancy rate is 7.9%. The market value of the properties at the end of the reporting period was1.32 billion. After deducting the investments made, this represents an increase of 0.9 million or 0.1% of the portfolio value.
The sale of the residential buildings in Kilchberg and part of the land parcel in Oberwinterthur-Neuhegi resulted in a profit contribution of 14.5 million.
Property expenses were stable at 10.6% of rental income. The net yield of the yield portfolio is put at 5.2%.
Operating profit (EBIT) came in at 46.1 million (previous year: 48.0 million); net profit fell from 41.9 to 33.9 million, corresponding to a return on equity of 10.3%. According to Intershop, the Corona pandemic reduced earnings by around1.0 million in the reporting period.
Start of construction in Winterthur
Due to the pandemic, there were delays on a large part of the construction sites, Intershop continues. In the meantime, however, the situation has eased and the projects as a whole are developing positively. Meanwhile, construction work has begun on a new assembly hall in Winterthur. The building has been leased to Stadler for 15 years. After the building permit has been received and none of the contracting parties has exercised its right to withdraw from the lease agreement, construction work on the assembly hall is to begin, Intershop announced. The investment volume is estimated at around 16 million. According to earlier information, the hall will be built on the Intershop site in the Neuhegi industrial park on a land area of around 13,000 sqm. Construction is scheduled for completion at the end of 2021. The lease agreement with Stadler has a minimum term of 15 years, Intershop said.
In April, sales of the 78 condominiums under construction on Römerstrasse in Baden began. As of the balance sheet date, 56 units had been sold and 19 reserved in writing. More than 70% of the condominium units at Gellertstrasse in Basel have already been sold. However, they are not expected to be transferred before the end of the first quarter of 2021.
Furthermore, Intershop expects the vacancy rate to increase to a good 10% by the end of 2020. Provided that there is no further comprehensive lockdown, rental income on a comparable basis to the volume of the first half of the year can be expected. (ah)
