Intershop with significant upgrades in H1
With a new valuation service provider, the company reports a revaluation result of around CHF 200 million. Meanwhile, the operating targets for the year as a whole are confirmed.
In the first half of the financial year, Intershop's real estate income rose by CHF 8.1% to CHF 44.3 million, according to the information provided, mainly due to the transactions of the last 18 months. On a comparable basis, income increased by 2.0%. Operating income (EBIT before valuation changes) rose by 14.6% to CHF 36.0 million. Property expenses also increased, by CHF 14.4% to CHF 4.7 million. "This corresponds to a share of 10.7% of property income and is in line with expectations," the company said. Operating costs increased by 9.6% to CHF 7.8 million, which the company attributes to project expenses. Meanwhile, personnel costs remained at the previous year's level. The equity ratio also remained stable at 56.2% and the debt/equity ratio (LTV) at 33.0%. Average interest costs decreased to 1.25%.
"Sales proceeds less above book value in future"
In the company's income statement, net revaluations of the portfolio, which is now worth around CHF 1.8 billion, amounting to CHF 200.2 million (H1 2024: +CHF 22.4 million) are particularly striking. They drove the half-year profit up from CHF 52.7 million to CHF 175.9 million. Properties in the city of Zurich in particular were valued higher - due to lower discount rates and a revaluation of existing development potential. The high revaluation gain is probably also related to the change of valuer from KPMG to CBRE and a different approach by the new service provider. As Intershop CEO Simon Haus explained at the annual press conference, the more market-oriented approach on the reporting date was also accompanied in part by a significantly more negative assessment.
With a view to the change in valuation practice, Intershop is already drawing its investors' attention to the fact that in future, sales proceeds will be less above the book value than in the past, "as operational successes and development progress will be reflected more quickly in the valuations". However, this will not change the business model or the returns for investors.
Tax effect reduces profit
Excluding revaluations, Intershop recorded a noticeable decline in profit from CHF 36.0 million to CHF 28.6 million in the first half of the year. This decline should be seen in the context of an "expected normalization of the tax rate". Tax expenses increased from CHF 2.2 million in the previous year to CHF 56.7 million. This was due not least to taxes on revaluations in the canton of Zurich, according to Haus.
Acquisitions in Kemptthal and Uetikon
Incidentally, Intershop has acquired two properties in the canton of Zurich: As part of a sale-and-leaseback deal, the company acquired the fully let investment property at Pfäffikerstrasse 37 in Kemptthal (this address is the headquarters of the Swiss water treatment specialist Katadyn). The company also purchased the promotional property Alte Landstrasse 103 in Uetikon am See, a former factory building that is to be converted into residential property.
In contrast, the investment property Talstrasse 35-37 in Pfäffikon (SZ), which had been repositioned after the main tenant moved out, was sold to a family office. After the reporting date, Intershop also sold the property at 43 Avenue C.-F. Ramuz in Pully. Here, too, the property was repositioned for multi-tenant use following the departure of the sole tenant.
Targets confirmed
Following a gain on disposal of CHF 2.6 million in the first half of the year, Intershop expects a pre-tax gain on disposal of at least CHF 15 million for the year as a whole. The annual target of increasing net property income by at least 8% excluding transactions (as at the end of February 2025) is confirmed. The outlook also includes the assessment that the conclusion of rental agreements will slow down "due to the economic situation".
And there is another piece of news that Intershop had to announce in connection with the half-year figures: the company has streamlined its group structure and turned a total of eleven companies, in which properties were held or management tasks were bundled, into four. (aw)
