Peach Property Group AG

2018 with best result in the Company's history - net profit rises to CHF 45 million

Announcement according to SIX adhoc publication article 53 KR

Zürich (pta007/19.03.2019/07:00) - => Significant increase in rental income and real estate value, completion of the "Wollerau Park" project and efficiency gains ensure best result in the Company's history
=> Actual rents increase by 82% to CHF 30 million due to vacancy reduction and new acquisitions; annualized target rental income increases by 54% to CHF 44 million
=> Market value of investment portfolio up by 53% to CHF 694 million due to portfolio expansion and operational progress; number of apartments increases to 8.400 units.
=> Operating FFO I before taxes increases by more than 60% to CHF 4.4 million
=> Equity (IFRS) up by more than 16% to CHF 301 million
=> Outlook for 2019 confirmed: Further increase in rental income and operating efficiency; medium-term target of 11,000 apartments in the portfolio

Peach Property Group, an investor specialising in the management of residential property, has recorded a significant increase in its profits according to its finalised figures for fiscal year 2018, and thus a new record-breaking figure. The preliminary figures published in February 2019 have been fully confirmed. Significantly higher rental income compared to the previous year, value-adding asset management measures and the completion of the "Wollerau Park" development project in particular contributed to the significant increase in profits. Earnings before taxes rose by a good 10 percent to around CHF 57 million and earnings after taxes were up by 8 percent to CHF 45 million in the year under review - despite a negative currency translation effect of CHF 4.5 million. Adjusted for tax effects, operating FFO I (funds from operations) increased by more than 60 percent to CHF 4.4 million. At the same time, direct operating costs rose at a disproportionately low rate of only 7 percent compared to the previous year.

The expansion of the investment portfolio by more than 50 percent to over 8,400 residential units and the optimization of existing units with a significant reduction in vacancies from 16.8 percent to 13.6 percent increased actual rental income by around 82 percent to CHF 30 million. Annualized target rental income amounted to approximately CHF 44 million, which corresponds to an increase of 54 percent over the year. Numerous measures directly benefiting tenants, such as investments of around CHF 12 million in our apartments, the opening of new tenant shops (Peach Points), the further development of the tenant app and the new internet portal for tenants, contributed to this positive development.