Breaking Down Intershop Holding AG Financial Health: Key Insights for Investors

Intershop Holding AG, the oldest real estate company listed on the SIX Swiss Exchange, stakes its claim on Switzerland's commercial property stage with a focused mission to unlock sustainable value from assets that span the Zurich economic area, Lake Geneva region and major transport axes, managing a portfolio of 45 properties across approximately 561,000 m² of rentable space with a market value near CHF 1.6 billion, underpinned by a prudent balance sheet featuring an equity ratio of 56.2% and a debt ratio of 33.0% as of mid-2025; driven by active asset management, refurbishment and development, Intershop reported a robust first-half 2025 net profit of CHF 175.9 million fueled by higher rental income and revaluation gains, while its vision for carbon neutrality by 2025, a target rental income uplift of at least 8% in 2025, and core values of integrity, transparency, sustainability and tenant-centric innovation frame a strategy built to enhance income streams, diversify risk (no single property exceeding one-third of total market value) and preserve long-term shareholder returns

Intershop Holding AG (0R6M.L) - Intro

• Portfolio (31.12.2024): 45 properties
• Rentable area: ~561,000 m²
• Market value of properties: ~CHF 1.6 billion
• Geographic focus: Zurich region, Lake Geneva region, major transport corridors

Mission

• Core mission drivers: income stability, value uplift via refurbishment/development, tenant retention
• Operational levers: proactive leasing, cost-efficient property management, ESG-aligned upgrades

Vision

• Target: Concentrated, high-quality portfolio in Swiss economic hubs
• Long-term ambition: Balance capital preservation with measured growth through selective disposals and acquisitions

Core Values

• Prudence: Conservative financial structure and risk management
• Quality: Focus on prime locations and well-maintained assets
• Sustainability: Energy and carbon efficiency, regulatory compliance, tenant well-being
• Transparency: Clear reporting and governance aligned with shareholder interests
• Responsiveness: Active asset management and swift adaptation to market trends

Financial & Operational Highlights

Strategic Priorities & Value-creation Levers

• Active asset management: rent optimization, vacancy reduction, lease renewals
• Refurbishment and redevelopment: targeted capex to increase NOI and market value
• Selective acquisitions/disposals: redeploy capital toward higher-yield, well-located assets
• Financial discipline: maintain strong equity ratio and conservative leverage
• Sustainability integration: energy retrofits, certifications and tenant-focused ESG initiatives

Key Performance Drivers (Operational Detail)

• Occupancy and lease tenor management to stabilize rental cash flows
• Portfolio concentration on Swiss economic hubs to preserve demand and liquidity
• Revaluation potential via refurbishment and repositioning projects
• Cost control and centralized property management to improve margins

Intershop Holding AG (0R6M.L) - Overview

• Mission focus: create sustainable, recurring income and capital appreciation through hands-on property management and selective development.
• Portfolio risk control: no single property to exceed one-third of total market value to limit concentration risk.
• Operational discipline: align organisation and processes to be risk-, resource- and cost-conscious.
• Responsible conduct: commitment to fair competition, equitable business relations and free-market principles per the company's sustainability guidelines.

• Active refurbishment programs to raise rental levels and reduce vacancy.
• Selective acquisitions and disposals to optimise yield and portfolio composition.
• Maintaining diversified exposure across asset types and geographies to stabilise cashflows.

• Diversification constraint: ensuring no single asset represents over one-third of total market value.
• Preference for direct ownership to secure control and alignment with long-term value creation.
• Flexibility to use leasehold/commonhold or indirect stakes when they improve risk/return or strategic positioning.

• Adherence to fair competition and responsible business conduct embedded in sustainability guidelines.
• Resource-efficient refurbishments aimed at lowering operating costs and improving environmental performance.
• Stakeholder alignment through transparent reporting and disciplined capital allocation.

Intershop Holding AG (0R6M.L) - Mission Statement

• Carbon neutrality by 2025 through energy-efficiency upgrades, onsite renewables and green procurement.
• Increase net rental income by at least 8% in FY2025 versus FY2024 through lease-up, rent reversion and selective acquisitions.
• Portfolio expansion to strengthen market leadership while preserving a conservative leverage profile (target LTV ≤ 45%).
• Continuous innovation in tenant services and building technology to improve occupancy and rental rates.
• Maintain strong profitability and attractive shareholder returns via dividend policy and NAV accretion.
• Strict compliance with legislation and high ethical standards across governance, ESG and stakeholder engagement.

• Carbon reduction roadmap: reduce Scope 1 & 2 emissions by ≥90% versus base year (2019-2021 baseline) by 2025; deploy rooftop PV and procurement of certified renewable electricity for >70% of portfolio consumption.
• Energy performance: retrofit program targeting average energy intensity reduction of 25% across core assets by 2025.
• Occupancy and tenant metrics: target portfolio occupancy ≥92% and average contractual rent growth ≥4% p.a. through 2025.
• Financial discipline: target interest coverage ratio ≥3.0x and return on equity (ROE) improvement to mid-to-high single digits annually.

• Integrity: rigorous compliance, transparent reporting and responsible corporate conduct.
• Sustainability: embed ESG across investment decisions, asset management and tenant engagement.
• Innovation: deploy proptech, energy solutions and tenant-focused services to enhance value.
• Financial discipline: prudent capital structure, active risk management and focus on recurring cash flow.
• Stakeholder orientation: align shareholder returns with tenant satisfaction and community impact.

• Asset-level retrofits: execute energy upgrades on top 20 assets by floor area; KPI = average energy intensity reduction per asset.
• Renewable deployment: install rooftop PV on ≥30% of buildings by capacity; KPI = MWh produced / % portfolio consumption.
• Lease management: increase rent reversion and reduce downtime; KPI = contracted rent growth and average vacancy duration (target ≤3 months).
• Capital recycling: disciplined acquisitions and disposals to optimize portfolio yield; KPI = return on invested capital (ROIC) > cost of capital.

Intershop Holding AG (0R6M.L) Vision Statement

• Integrity & Transparency: Intershop maintains strict compliance with legislation and industry standards, with board- and management-level oversight to ensure ethical conduct across transactions and reporting.
• Sustainability: The company incorporates energy efficiency, emissions reduction, and resource stewardship into property management and development decisions.
• Innovation: Continuous enhancement of property offerings and services through digitalization, smart building technologies, and adaptive space design.
• Customer-Centricity: Prioritizing tenant and buyer needs to deliver economically attractive, functional, and sustainable spaces and after-sales services.
• Open Culture & Flat Hierarchy: Promoting internal collaboration, open communication, and rapid decision-making to respond to market changes.
• Social Responsibility & Fair Competition: Adherence to fair business relations, market rules, and sustainability guidelines to meet both social and individual obligations.

• Energy & Emission Reduction: Retrofit programs targeting a 25% reduction in energy intensity across the portfolio within five years, prioritizing LED lighting, HVAC upgrades, and building automation.
• Tenant Experience: Implementation of tenant portals and digital services to reduce administrative friction and increase retention - aiming to keep renewal rates above 80% annually.
• Portfolio Optimization: Ongoing asset rotation to improve yield and sustainability metrics, with disposals of non-core assets and selective acquisitions in growth corridors.
• Governance & Compliance: Annual independent audits, whistleblower channels, and regular board reviews to ensure adherence to legal and ethical standards.
• Community & Social Engagement: Support for local employment and partnerships with social programs where properties are located, guided by the sustainability policy.