DGAP-Adhoc
Peach Property Group AG with significant profit growth in the first half-year 2014
Peach Property Group AG / Key word(s): Half Year Results
21.08.2014 07:03
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press Release
Peach Property Group AG with significant profit growth in the first
half-year 2014
- Net profit for the period of CHF 4.4 million 17 percent over last
year's half-year result
- Earnings before taxes rise 12 percent to CHF 5.9 million
- Operating income up 57 percent to CHF 42.6 million
- Considerable value increases and higher rental income from investment
properties; progress on all development projects
- Major projects in Berlin and Hamburg mostly completed
Zurich, 21 August 2014 - Peach Property Group, a leading property investor
and developer of high-end residential and commercial real estate, continued
its positive business performance in the first half of 2014 and reported a
sharp jump in profits. Net profit for the period was up around 17 percent
on the previous year to CHF 4.4 million. Earnings before taxes grew 12
percent to CHF 5.9 million.
This growth in profits was achieved despite the ongoing effects of the
insolvency of the general contractors involved in the large-scale projects
in Berlin and Hamburg, which put downward pressure on the results in the
first half-year 2014. As a result, net impairment losses totalled some CHF
5.6 million in the reporting period. Along with the CHF 13.9 million
incurred in the 2013 financial year, additional costs thus amounted to CHF
19.5 million.
In the first six months of 2014, operating income rose by 57 percent
year-on-year to CHF 42.6 million. This was primarily due to operational
progress achieved with the investment properties, and the resulting value
appreciation and increased rental income. The total increase in value of
the investment properties was CHF 17.3 million. Rental income was increased
by 54 percent to CHF 3.8 million by expanding the portfolio of investment
properties, lowering vacancy rates and raising rents.
In the reporting period, Peach Property Group further pursued the
implementation of its strategy to strengthen its investment property
portfolio and to increase recurring income. In the case of the "Gretag
Wohnen" property in Regensdorf near Zurich, Switzerland, and the "Dortmund
RS 173" property in Germany, key planning milestones were reached,
resulting in considerable appreciation in value. The design plan for the
use of undeveloped land at the Gretag site was completed in draft form and
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