Peach Property Group AG posts strong earnings for first six month period of 2013
- Significant increase of net profit to CHF 3.7 million; total profit for 2012 already exceeded
- Operating income up by 64 percent to CHF 27.1 million
- Net Asset Value (NAV) based on market values of CHF 132.1 million
- Portfolio market value up by 14 percent to CHF 449 million
- Sales volume of CHF 42 million (authenticated)
- Positive outlook for the full financial year
Zurich, 22 August 2013 – Peach Property Group AG, a leading property investor and developer of high-quality residential real estate in the German-speaking region of Europe, today announced strong earnings for the first six-month period of 2013. Pre-tax profit of CHF 5.2 million is significantly higher than the CHF 0.6 million realised in the previous half year or the CHF 1.9 million realised for the full financial year 2012. Net profit for the period of CHF 3.7 million also exceeds both the net profit of CHF 0.1 million for the prior-year period and the net profit of CHF 0.9 million for the full financial year 2012.
Operating income increased by 64 percent to CHF 27.1 million in the first half of 2013. In particular, the increase in income of development and construction mana-gement services from CHF 0.1 million to CHF 9.7 million had a positive impact. In addition, rental income of investment properties increased by 20 percent to CHF 2.5 million after CHF 2.1 million in the first half of 2012. The efficiency programme was implemented as planned and operating costs were reduced by more than CHF 1.5 million, despite the acquisition of the development service provider Primogon AG.
Investment properties – operational progress and appreciation in value
In the first half of 2013, the portfolio of investment properties was expanded to 535 apartments from 519 apartments at the end of 2012 after the two Mews properties on the „Peninsula“ in Wädenswil were added to the portfolio due to their good structural condition and strong market demand, increasing the rental income by around CHF 0.3 million per year. This reclassification also resulted in a valuation gain of just under CHF 4.0 million. In Erkrath near Düsseldorf, planning began to add four additional floors to the existing retail property. The first operating steps for the expansion, which shall be implemented by 2018, have already been taken. The expected higher cash inflows associated with this expansion of the property led to a value increase of around CHF 3.5 million.
Planning for the expansion and refurbishment of the property Dortmund RS 173 also progressed: A very detailed preconstruction enquiry was filed and has been approved meanwhile; the application for a building permit is expected to be submitted in the third quarter of 2013. Operational progress was also achieved from the reduction in vacancies at the investment properties in Munster and at Portfolio “Erkrath Wohnen”. Overall, the vacancy rate remained stable at 5.5 percent due to the currently elevated vacancy rate of the newly transferred Mews properties.
Portfolio market value up by 14 percent to CHF 449 million
The market value of Peach Property Group’s entire property portfolio rose to CHF 449 million and was thus 14 percent higher than at the end of 2012 based on the independent appraisal of the property portfolio by Wüest & Partner at the end of June 2013. The Net Asset Value (NAV) based on market values rose by CHF 2.4 million to CHF 132.1 million since December 2012.
Sales volume of around CHF 42 million
In the first half of 2013, publicly authenticated purchase agreements were signed for apartments with a market value of just under CHF 42 million. Thus, Peach Property Group is on track to reach its annual sales target. CHF 3.2 million of this amount was recorded in the profit and loss statement of the reporting period, while the majority will only impact earnings over the course of 2013 and 2014.
At the end of June 2013, Peach Property Group’s cash and cash equivalents increased to CHF 42.2 million from CHF 32.4 million at the end of 2012. CHF 37.3 million of this amount represents down payments from buyers purchasing apartments under authenticated agreements. At CHF 98.0 million, equity is CHF 5.3 million higher at 30 June 2013 than at 31 December 2012. Accordingly, the equity ratio based on IFRS values amounts to 24 percent, the equity ratio based on market values stands at 30 percent.
Positive outlook for 2013
Peach Property Group is confident of continuing its strong performance in the second half year of 2013. The major project „Harvestehuderweg 36“ in Hamburg is expected to be finalized at the beginning of the fourth quarter. In Berlin the direct placement of key lots (e.g. facade) has been achieved after the insolvency of the previous general contractor BSS. With the direct awarding of the further lots in progress, the two projects „yoo berlin“ and „Am Zirkus 1“ should also be completed at the end of 2013/beginning of 2014. At these dates significant returns on investment are expected. The other projects that are currently under construction or distribution are also to be advanced over the course of the year. In addition to the „yoo wollerau“ and „Peninsula Beach House“ projects in Switzerland, this includes the new „Living 108“ project in Berlin with an expected sales volume of around CHF 44 million. Over 30 percent of the planned 128 high quality apartments have already been authenticated by a notary public, and an additional 15 percent have been reserved. Construction should begin in July and is planned to be completed in spring of 2015.
In addition, Peach Property Group plans to acquire new and attractive properties, for which the negotiations are already well under way. The investment portfolio is to be further optimised and the positive operating performance shall be enhanced.
Thomas Wolfensberger, CEO of Peach Property Group AG, states: „We are very satisfied with the performance in the first six months of 2013. We have made crucial progress in the development projects and portfolio properties, thereby creating the basis for further growth. For example, three major projects in Berlin and Hamburg with a sales volume of CHF 285 million will be completed shortly. We are particularly pleased with the significant increase in the net profit in the first half of 2013, which already exceeds our earnings for the full financial year 2012.“
| Key figures of Peach Property Group AG (consolidated) | ||||
| 30.06.2013 | 31.12.2012 | 30.06.2012 | ||
| (restated) | (restated) | |||
| Income | CHF thsd. | 27 067 | 48 569 | 16 463 |
| EBIT | CHF thsd. | 6 722 | 5 240 | 2 951 |
| EBT | CHF thsd. | 5 245 | 1 888 | 617 |
| Net profit for the period | CHF thsd. | 3 746 | 894 | 116 |
| NAV IFRS | CHF thsd. | 97 973 | 92 684 | 92 355 |
| NAV market value 1 | CHF thsd. | 132 143 | 129 738 | 133 150 |
| Equity | CHF thsd. | 97 973 | 92 684 | 92 355 |
| Equity ratio (IFRS) | in % | 24.4% | 26.8% | 29,3% |
| Equity ratio (NAV market value 1) | in % | 30.3% | 33,9% | 37,4% |
| Market value, property portfolio | CHF thsd. | 448 724 | 393 007 | 364 500 |
| Employees | 34 | 34 | 32 | |
| 1 NAV market value calculated on the basis of the Wüest & Partner valuation taking into account deferred taxes and the share of joint ventures and associates. | ||||
The 2013 Half-yearly Report is available on the company’s website at
www.peachproperty.com/HJB2013
Contacts
Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 (0) 44 485 50 00 | investors@peachproperty.com
Media Germany:
edicto GmbH, Axel Mühlhaus
+49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de
About Peach Property Group
Peach Property Group AG one of the leading developers in the field of top-quality residential property in the German-speaking region of Europe. Its activities cover the entire prime property development value chain, from site evaluation to project planning, implementation and marketing. Peach Property Group focuses on city and holiday residences in exceptional locations and featuring highest-quality fittings for a discerning clientele. The company’s integrated corporate strategy encompasses not only the development of exclusive residential properties, but also the management of investment properties for the purpose of generating consistent annual revenues.
Peach Property Group AG is headquartered in Zurich and also has a branch office in Cologne. The company’s shares are listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366).
Visit www.peachproperty.com for more information.