Portfolio shifts weigh on earnings, but sales offset the impact

Intershop’s 2026 half-year financial results are mixed. Lower rental income and significantly smaller revaluation gains are weighing on reported profits, while sales and acquisitions are reshaping the portfolio and dampening the annual outlook for net property income.

The decline in net real estate income is not a sign of weaker leasing activity, but is primarily the result of changes in the portfolio. Intershop estimated the value of its income-producing and development properties as of June 30, 2026, at 1.92 billion Swiss francs, up from 1.75 billion Swiss francs at the end of 2025, and attributes the lower half-year income to these portfolio changes.

In the first half of the year, net real estate income fell by 4.6 percent to 37.7 million Swiss francs. The normalization of valuations had an even greater impact. Revaluation gains fell to 47.7 million Swiss francs, compared with 200.2 million Swiss francs in the previous year. As a result, reported net income declined to 67.5 million Swiss francs. Excluding valuation changes, however, the company reported that earnings were 18 percent higher than the previous year.

Acquisitions and Sales Shift the Mix
After the balance sheet date, an investment property in Bad Ragaz was sold at a profit. At the same time, Intershop acquired the commercial properties of TPC AG in exchange for cash. This includes a development site in Kriens, a commercial property in Stans, and purchase rights to additional parcels of land. Once these rights are exercised, the package will comprise approximately 41,000 square meters of leasable space and an annual target rent of 6.1 million Swiss francs.

The assessment of the portfolio’s performance is therefore mixed. The market-driven vacancy rate improved slightly to 6.5 percent by mid-2026, down from 6.9 percent at the end of 2025. The lower rental income in the first half of the year thus occurs alongside an improved leasing situation and a significant expansion of the portfolio.

Outlook Narrowed
In its annual outlook, Intershop has scaled back its earnings forecast. Instead of stable to slightly higher net real estate income, the company now expects only a stable figure for 2026. At the same time, it is announcing further sales and now anticipates proceeds of at least 30 million Swiss francs. The company is maintaining its target of net income (excluding valuation gains) in line with the prior year and linking this to the continuation of its dividend policy.

There is also a personnel change within the executive board. Martin Munz will take over as Head of Construction and Development effective December 1, 2026, and will become a member of the executive board. For a company that is currently undergoing a visible transformation of its portfolio, this role is central to operations.