EQS-Adhoc

Peach Property Group increases profit after tax to CHF 3.6 Mio and significantly increases equity ratio to 45% in first half of 2016

EQS Group-Ad-hoc: Peach Property Group AG / Key word(s): Half Year Results
Peach Property Group increases profit after tax to CHF 3.6 Mio and
significantly increases equity ratio to 45% in first half of 2016

24.08.2016 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.

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Press release

Peach Property Group increases profit after tax to CHF 3.6 Mio and
significantly increases equity ratio to 45% in first half of 2016

- Profit after tax up 6 percent to CHF 3.6 million; profit before tax of
CHF 7.7 million (plus 65 percent)

- Equity ratio (IFRS) increases to 45 percent; 48 percent based on market
values

- Rental income up 5 percent to CHF 4.4 million

- Successful transformation of portfolio towards residential properties
in Germany

- Positive business performance expected to continue in 2016

Zurich, 24 August 2016 - Peach Property Group, an investor specialising in
the management of residential property in Germany, has achieved key
successes in implementing its strategy of strengthening its investment
portfolio in the residential property sector in the first half of 2016.

At CHF 7.7 million, earnings before taxes exceeded profit recorded in the
prior-year period by approximately 65 percent. Profit after tax rose by
around 6 percent to CHF 3.6 million, a figure that includes significantly
higher one-off tax expenses resulting from the profitable sale of the
Gretag site in Regensdorf near Zurich as well as the sale of the "Erkrath
Retail" property near Düsseldorf. Property sales, higher rental income and
appreciation in the value of investment properties caused by the
significant expansion of the residential portfolio as well as operational
progress within the portfolios have all had a positive effect on earnings,
while operating costs have also been considerably reduced.

As a result of the sale of the Gretag site in Switzerland and the
commercial "Erkrath Retail" property in Germany during the reporting
period, Peach Property Group received substantial funds that were used to
make additional residential portfolio acquisitions and repay the EUR 50
million bond listed on the Frankfurt Stock Exchange. Most prominently,
Peach Property Group acquired three portfolios containing a total of 795
apartments in the first six months of 2016, increasing the Group's
residential portfolio to 2,245 units with lettable space totalling almost
150,000 square metres. Despite the property sales in Regensdorf and
Erkrath, rental income increased by approximately 5 percent to CHF 4.4
million.

As of the end of June 2016, the market value of the investment portfolio