Intershop Holding (ISN) H1 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached CHF 52.7 million, stable year-over-year, with return on equity at 12.2% and earnings per share at CHF 5.72.

• Portfolio value increased by 4.6% due to acquisitions and revaluation gains, including a CHF 22.4 million revaluation mainly from operational improvements.

• Rental income rose 0.9% to CHF 40.9 million, with net rental income at CHF 36.8 million and property income driven by higher rents and lower vacancies.

• Vacancy rate for investment properties improved from 7.4% to 6.9%.

• Earnings per share exceeded the CHF 5.50 distribution for FY 2023.

Financial highlights

• Like-for-like rental income increased by 3.2%; investment properties up 3.8%, development properties up 1.9%.

• Net yield on investment properties was 4.8%; development properties 5.4%.

• Equity ratio at 59.1%, loan-to-value at 31.9%, and financial liabilities increased to CHF 459 million.

• Average interest rate on financial debt decreased to 1.63% with a 38-month lock-in period.

• Dividend yield at 4.7%; total return for H1 2024 was 0.6%.

Outlook and guidance

• Like-for-like rental income and vacancy reduction targeted for H2 2024, with pre-tax profit from disposals expected between CHF 10–20 million and CHF 4.8 million already secured.

• Additional acquisitions and disposals planned; further attractive opportunities under review.

• Board to change property appraiser to CBRE Zurich Ltd from 2025.

• Continued focus on ESG, especially decarbonisation and sustainable value creation.

• Commitment to maintaining an attractive dividend policy.