Swiss real estate investment firm Intershop reported a 61% year-on-year decline in first-half net profit to CHF 67.5 million, driven by a sharp reduction in valuation gains, according to a statement on Wednesday.
Property rental income fell 3.1% to CHF 42.9 million in the six months to June 30, primarily due to asset sales. Higher gains from property disposals partially offset the decline, rising to CHF 5.1 million from CHF 2.6 million. Total operating revenue increased 1.7% to CHF 49.4 million.
Operating expenses decreased slightly from CHF 12.6 million to CHF 12.4 million, improving the EBIT margin before valuation changes to 74.9% from 74.1%. Excluding valuation adjustments, net profit rose 18% to CHF 33.8 million, supported by CHF 4.5 million in one-off tax benefits alongside higher operating income and lower costs.
Valuation gains plummeted to CHF 47.7 million from CHF 200.2 million in the same period of 2025, pushing the reported net profit down despite the stronger underlying performance. The company's real estate portfolio expanded to CHF 1.92 billion from CHF 1.75 billion at the start of the year, driven by CHF 9.4 million in investments, CHF 110.6 million in net transaction effects, and asset revaluations.
Intershop completed the acquisition of the 'The Valley und MOTORWORLD Manufaktur Region Zürich' industrial complex in Kemptthal in February, generating CHF 6.5 million in rental income by June 30 and offering development potential of approximately 42,600 square meters. The firm also sold two investment properties for a combined CHF 34 million. The vacancy rate declined to 6.5% from 6.9% at the end of 2025.
Post-period, Intershop continued portfolio adjustments, selling an asset in Bad Ragaz at a profit and acquiring Gewerbebauten TPC AG for cash. The purchases include a commercial site in Kriens with development potential, an office building in Stans, and purchase rights for additional plots totaling roughly 41,000 square meters of rentable space and annual contractual rent of CHF 6.1 million.
Martin Munz will join Intershop as head of construction and development on December 1, succeeding Mireille Lehmann, who is leaving the company. The firm also revised its 2026 outlook, now expecting stable net rental income instead of a stable to slightly higher figure, with sales expected to contribute more to results. Intershop targets at least CHF 30 million in pre-tax disposal gains for the year, though actual performance will depend on second-half transaction market conditions.
The company maintained its guidance for net profit excluding valuation changes to exceed 2025 levels, supporting its dividend policy.
