Intershop Holding (ISN) H2 2024 earnings summary

Executive summary

• Net profit surged to CHF 117.5 million (CHF 12.74 per share), a significant increase over the previous year, driven by property revaluations, operational improvements, and higher rental income.

• Return on equity was 13.4% for 2024, up from 9.6% year-over-year, reflecting strong profitability.

• Rental income rose 3.5% like-for-like to CHF 82.2 million, with investment properties up 4.4%.

• Seven acquisitions totaling CHF 152.5 million and six disposals for CHF 77.1 million were completed, with net gains from property disposals of CHF 23.2 million.

• CO2 emissions reduced by 4.5% to 9.7 kg CO₂e/m², and sustainability rating improved to Green Star.

Financial highlights

• Operating result (EBIT) increased by 39% to CHF 146.2 million year-over-year, mainly due to CHF 59.7 million in positive revaluation gains.

• Earnings per share were CHF 12.74 (or CHF 7.99 excluding fair value changes), up from CHF 8.95.

• Net gains from property disposals rose 70.3% to CHF 23.2 million.

• Total assets grew to CHF 1,627.1 million, with shareholders' equity at CHF 935.0 million.

• Dividend of CHF 5.50 per share proposed for the upcoming AGM, unchanged from prior year.

Outlook and guidance

• Minimum 8% increase in rental income expected for 2025, excluding new acquisitions or transactions.

• Further reduction in vacancies targeted for 2025 on a like-for-like basis.

• Operating expenses anticipated to temporarily rise in 2025 due to process improvements, normalizing by 2028.

• Continued focus on Swiss market, with plans to issue one to two bonds in 2025.

• Attractive dividend policy to be maintained.