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 - Seite 2

accounted for CHF 160 million. Without taking into account the properties
sold in Erkrath and Regensdorf, this equates to an increase of CHF 57
million compared to the end of 2015. The increase mainly resulted from the
three successful acquisitions. In addition, the occupancy rate of
properties such as those in Nordhessen and Neukirchen was significantly
improved due to a combination of refurbishments and active asset
management, resulting in value appreciation and higher rental income.

Peach Property Group reduced its operating costs further despite acquiring
additional portfolios. Personnel expenses fell by around 28 percent to CHF
2.3 million between January and June 2016. Employee numbers were reduced in
project management due to an increased focus on portfolio management and
the completion of development projects, while the executive management team
was also reduced to three members.

In light of higher profits for the first six months of the year and the
topping-up of the hybrid bond to a total of CHF 39.3 million, equity rose
significantly to CHF 133 million as of 30 June 2016, compared with CHF 114
million at the end of 2015. As a result of these developments and a marked
reduction in total assets caused by the repayment of the EUR-denominated
bond, the IFRS equity ratio was up from 31 percent as of 31 December 2015
to 45 percent at the end of the reporting period. The equity ratio based on
market values was up to 48 percent from 33 percent at the end of 2015.

Peach Property Group expects this positive business development to continue
during the second half of 2016 financial year and is continuing to focus on
increasing the size and value of its residential property investment
portfolio in Germany. The company recently notarised an agreement to
acquire a portfolio consisting of around 900 apartments in Kaiserslautern,
thus boosting the number of apartments in its portfolio by 40 percent to
almost 3,150 units and increasing target rent by 37 percent to around CHF
16.2 million.

Dr. Thomas Wolfensberger, CEO of Peach Property Group, comments: "We are
pleased to have made major progress in the first half of 2016 and further
reinforced our position as a holder of residential property in Germany. In
addition, profitable property sales outside our primary investment focus
areas have not only confirmed but also substantially exceeded the
conservative valuations placed on our properties. As well as significantly
boosting current income, we have increased profits further and now have an
extremely solid equity ratio of 45 percent. Despite repaying the bond in