Peach Property Group AG

Record-breaking result in 2018 - earnings before taxes up to almost CHF 57 million according to preliminary figures

Announcement according to SIX adhoc publication article 53 KR

Zürich (pta006/07.02.2019/07:00) - => Residential portfolio up by more than 50 percent to some 8,400 units, acquisition of a further 421 apartments completed in January 2019
=> Actual rental income increased by more than 80 percent to just under CHF 30 million
=> Annualized target rent up by 53 percent to CHF 44 million; further increase as of January 2019 to CHF 46.4 million
=> Vacancy rate reduced from 16.8 to 13.6 percent
=> Operating margin of residential hold portfolio increased from 67 to 71 percent
=> IFRS equity ratio at the end of 2018 expected to be slightly below 37 percent

Peach Property Group, an investor specialising in the management of residential property has recorded the best result in its history in 2018, according to unaudited preliminary figures. Earnings before taxes in the past fiscal year were up by a roughly 10 percent year-on-year to almost CHF 57 million. This was mainly due to operational progress and the further expansion of the existing portfolio. The record result was achieved despite negative currency translation effects due to the weakening of the euro against the Swiss franc, which amounted to approximately CHF 4.5 million. In 2017, positive currency translation effects of around CHF 7.7 million were recorded.

According to initial key data, actual rental income rose by a good 80 percent year-on-year to just under CHF 30 million in 2018, while annualized target rental income rose by 53 percent to CHF 44 million and stood at approximately CHF 46.5 million at the end of January 2019. This was achieved with a more than 50 percent increase in portfolio size to over 8,400 units. The acquisition of a further 421 apartments were completed in January 2019.
In addition to the acquisitions, Peach Property's active asset management with targeted investments in properties and tenant-oriented property management also had a positive effect. This approach includes the traditional "Peach on Tour" food truck and portfolio-wide gardening festivals in spring, as well as, in particular the opening of the new Peach Points (tenant shops) in Heidenheim and Oberhausen and the new tenant app and tenant Internet portal. This made it possible to implement measures even more efficiently and quickly and to establish a direct dialogue with tenants. In addition, these measures also significantly reduced the vacancy rate, which stood at 13.6 percent ytd at the end of December 2018, compared to 16.8 percent a year earlier.