Intershop profit falls 20% despite rental gains, property revaluations

Published 26/08/2025, 11:26

Investing.com -- Intershop Communications (ETR:ISH1k) on Tuesday reported a 20.4% decline in net income excluding revaluation gains in the first half of 2025, as higher tax expenses weighed on results despite an increase in rental income and property values. 

Net income excluding revaluations fell to CHF28.6 million, compared with CHF36 million a year earlier.

Rental income rose 8.5% year over year to CHF44.3 million, slightly below UBS’s estimate of CHF44.8 million. 

The company said growth was primarily driven by acquisitions, while like-for-like rental income increased 2%. 

The vacancy rate of the investment portfolio decreased by 0.2 percentage points to 7.9%.

Revaluation gains totaled CHF200.2 million, representing 10.7% of investment properties and above UBS’s forecast of CHF197 million. 

EBITDA stood at CHF36 million, 9% higher than the estimate of CHF32.5 million. During the period, Intershop acquired two properties and sold one, generating CHF2.6 million in sales income. 

The company said it expects sales activity to accelerate in the second half of the year and contribute more than CHF15 million in profit from sales for 2025. The loan-to-value ratio was unchanged at 33%.

Intershop reiterated its full-year guidance of 8% rental income growth and a vacancy rate below 7.9%. It also introduced a new target of more than CHF15 million in profit from property sales. 

The company said its dividend policy remains unchanged. Following a change of appraiser, it noted that future disposals may result in lower profits because book values are now aligned more closely with fair market values.

UBS maintained a 12-month price target of CHF163.00 and a “buy” rating on the stock.

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