EQS-Adhoc

Peach Property Group publishes 2014 financial statements

EQS Group-Ad-hoc: Peach Property Group AG / Key word(s): Final Results
Peach Property Group publishes 2014 financial statements

10.03.2015 / 07:02
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.

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Press release

Peach Property Group publishes 2014 financial statements

- Rental income up by 34 percent to CHF 7.7 million

- Market value of investment properties up 32 percent to CHF 183 million

- Reduction of financing liabilities by CHF 77 million

- Consolidated net loss of CHF 10.4 million due to extraordinary charges
from major projects

- The projects affected have mostly been completed; the majority of the
apartments sold have been handed over and the sale of "Am Zirkus 1" has
closed

- Strengthening of operational effectiveness with the creation a COO/Head
of Asset Management position with direct reporting lines to the group
management board

Zurich, 10 March 2015 - Peach Property Group, a leading investor for
residential and commercial real estate, has more than tripled its operating
income in 2014 according to its final figures. This figure has lifted to
CHF 196.6 million compared to CHF 61.6 million in the previous year. In
particular the income generated from handing over apartments in the
developments had a positive impact, as did value appreciations of the
investment properties and increased rental income.

However, during the period under review there were unfavourable
extraordinary effects from major projects in the luxury segment to be
completed shortly, which had a negative impact of around CHF 16 million on
earnings. Including these one-off expenses, the group had to book a loss of
CHF 10.4 million after profits in the previous year of CHF 1.4 million.
Downstream tax effects of CHF 2.0 million caused the net loss in the final
figures for 2014 to be slightly lower than had been forecast when the
preliminary figures were presented.

The extraordinary charges resulted from defective services provided by
individual companies that had been engaged in the major projects "yoo
berlin", "Am Zirkus 1" and "H36". These issues came to light during the
final inspections of the properties and in preparations for their
handovers. Peach Property Group has already initiated legal action against
the companies responsible in order to obtain a refund for the extraordinary