Peach Property Group AG

Profits increase to CHF 41.9m and expansion of residential portfolio to around 7,000 units with target rent of CHF 34m

Announcement according to SIX adhoc publication article 53 KR

Zürich (pta007/20.03.2018/07:00) - > Earnings after tax up significantly to CHF 41.9 million, from CHF 11.6 million in the previous year
> Property portfolio grows to around 7,000 units in 2017 after 3,129 units in the previous year; residential rental space increases to almost 445,000 square meters
> Target rental income in the past fiscal year up strongly by 83 percent to CHF 16.3 million due to portfolio expansion and lower vacancies
> NAV at market value after deferred taxes increased by a good 30 percent to CHF 30.38 per share
> Equity ratio at market at 42.8 percent; according to IFRS at 41.6 percent
> Diluted FFO I per share in 2017 totalled CHF 0.74 compared to CHF -5.27 in the previous year
> Outlook for 2018 confirmed: Continued dynamic growth; expansion of portfolio to 9,000 apartments planned over the medium term

Peach Property Group, an investor specialising in German real estate with a focus on residential property has recorded new all-time high figures for both its earnings after taxes as well as its rental income according to final figures for fiscal year 2017. Earnings after taxes almost quadrupled during the past fiscal year to CHF 41.9 million, up from CHF 11.6 in 2016. Pre-tax earnings improved to CHF 51.5 million and thus also significantly exceeded the previous year's earnings of CHF 17.0 million, as already reported when provisional figures were published. This increase is in particular due to the substantial expansion of the investment portfolio, the tenant centred and value-adding asset management as well as higher rental income and rental success. In addition, one-off factors, in particular currency translation gains in the amount of more than CHF 7 million also had a positive impact on earnings.

During the last year Peach Property Group further drove the expansion of its investment portfolio in line with its strategy. The Group concluded several larger transactions to increase its portfolio of residential properties significantly to around 7,000 units with residential space of almost 445,000 square meters, compared to 3,129 units with 210,000 square meters of residential space in 2016. In total, more than 3,800 residential units were acquired in the fiscal year 2017, of which the ownership of around 2,400 units was transferred in 2017. The portfolio of residential properties increased by 1,114 units alone with the acquisition of a portfolio in Oberhausen und Duisburg. In addition, several properties were acquired in the Bielefeld region, in Bochum, Kaiserslautern as well as in the states of Hesse and Thuringia. Peach Property Group aimed to specifically reinforce its position at locations in which the Group already had existing property clusters.