Sparks - Intershop Holding

Interim results (H126) show strong growth in recurring operating profit and a continued high level of revaluation gains, albeit below the exceptional level of the previous year. Net income excluding property revaluation gains rose 18.0% to CHF34m, driven by higher operating income, lower operating expenses and one-off positive tax effects. Total net income of CHF68m included revaluation gains of CHF47m, compared with net income of CHF176m in H125, including CHF200m of revaluation uplift. Annualised return on equity was 12.3% or 6.2% excluding changes in fair value. Revaluation gains, reflected in a lower valuation discount rate, were driven by letting progress at key refurbishment and repositioning projects (the ‘Bloom’ office property in Lausanne and the ‘Bento’ site in Baden) and the revaluation of the Bad Ragaz asset sold post the balance sheet date. Intershop now expects stable net rental income for the full year, net gains from property disposals (before tax) of at least CHF30m, subject to developments in the transaction market during H2, and an increase in net income excluding changes in fair value of properties versus FY25, enabling the maintenance of an investor-friendly dividend policy. FY25 DPS was CHF6.0 versus CHF5.5 in FY24. With an equity ratio of 56.5% and a loan-to-value ratio of 33.3%, Intershop remains conservatively financed and well positioned to fund its planned development pipeline of more than CHF450m, supported by capital recycling and continued access to debt markets.