Peach Property Group AG

2018 with best result in the Company's history - net profit rises to CHF 45 million - Seite 2

The market value of the investment portfolio increased to CHF 694 million at the end of 2018, up by 53 percent compared to the end of 2017, due to portfolio expansion and value-enhancing measures. The market value of the entire real estate portfolio rose by 44 percent to CHF 747 million. Despite the significant increase in the value of the portfolio, gross profits rose from 5.4 to 5.6 percent, emphasizing the sustainability of the activities and valuations.

Peach Property Group also demonstrates a very solid financial structure in 2018. In line with its investment strategy, over 92 percent of all financial liabilities were non-current. The average term increased to over 6 years. On the equity side, the significant annual profit and the net effect of the issue of a 1.75 percent hybrid option bond in June 2018 of just under CHF 60 million and the repayment of the 5 percent hybrid bond led to an increase in equity (IFRS) from CHF 259 million to CHF 301 million. Despite the significant increase in total assets, the equity ratio (IFRS) remained solid at 36.7 percent after 41.6 percent at the end of 2017. At market values, the ratio was 37.7 percent. Cash and cash equivalents at the end of 2018 amounted to more than CHF 53 million after CHF 49 million in the previous year, which provides sufficient funds to meet the medium-term growth targets.

For 2019, the Peach Property Group is reaffirming its goals of significantly increasing rental income once again and further increasing operational efficiency. Optimizing the existing portfolio with targeted renovations, reducing vacancies and intensifying tenant communication are further points that the Group will focus on in 2019.

Dr. Thomas Wolfensberger, Peach Property Group's CEO, commented: "2018 marks a key step for our Group in implementing our growth strategy and we are very pleased with the portfolio growth, project completions and profits we have achieved. For 2019, we have set ourselves the target of once again significantly increasing rental income. This is not least evident in the portfolio, which was strongly expanded in 2018, and the two new acquisitions, which were certified shortly before and after the turn of the year. However, we are also planning further acquisitions in order to achieve our medium-term target volume of 11,000 residential units in our portfolio. Our tenants and their satisfaction are at the top of our list of priorities. In this regard, we are following the successful path we have taken so far and would like to introduce further significant process improvements in 2019."