Strong growth and record-breaking CHF 109 million earnings before taxes for 2019
* Peach Property Group nearly doubles 2019 earnings before taxes to around CHF 109 million
* Market value of the real estate portfolio as of 31.12.2019 increases by more than 50 percent to CHF 1.1 billion
* Actual rental income amount to around CHF 39 million – an increase of 31 percent versus prior year
* Net Asset Value (NAV) per share as at 31.12.2019 of around CHF 44 (after CHF 36.70 as per end of 2018)
* Vacancies significantly reduced from 12.5 percent at the end of 2018 to now 9.3 percent
* Residential portfolio expanded in the course of 2019 by 47 percent to around 12,450 units; integration of another 528 apartments acquired in 2019 by the end of Q1 2020
* Positive outlook with an anticipated growth in actual rent for 2020 of at least 40 percent to more than CHF 55 million
Peach Property Group, an investor with a focus on residential real estate in Germany, posts a new record high for earnings before taxes based on preliminary, unaudited numbers. Amounting to around CHF 109 million, earnings before taxes were about 90% above the prior year level of CHF 56.9 million. Growth drivers were a significant portfolio extension, substantial improvements of the portfolio properties as well as optimised tenant-oriented services. According to first data, actual rental income rose in 2019 by about 31 percent to almost CHF 39 million on a year-on-year basis. The portfolio acquired in September 2019 with 3,672 apartments and an annual actual rent of around CHF 14.5 million is not yet included, since the transaction was only completed on December 31, 2019. The closing of another portfolio of 528 apartments acquired at the end of 2019 with an actual rent of CHF 2.4 million is anticipated to take place in the course of the first quarter 2020. Together with these apartments, the portfolio has grown since the end of 2018 by around 53 percent to now almost 13,000 units with a lettable area of more than 866,000 m2 and an annual target rental income of more than CHF 65 million.
As a result of the positive development and the acquisitions, the market value of the real estate portfolio has significantly increased and amounted to around CHF 1.1 billion at the end of 2019 after CHF 0.7 billion a year before. This growth was driven not only by acquisitions but also by operational progress concerning the portfolio properties. As a result of the enhanced tenant-oriented management and the improved tenant services out of currently seven tenant shops, the so called Peach Points, as well as the expansion of the digital communication with the tenants, the services and investments were even more targeted towards actual tenant needs and implemented even more efficiently. Consequently, Peach Property Group has also been able to significantly reduce vacancies in 2019 to 9.3 from 12.5 percent a year ago. Excluding the apartments in renovation or earmarked to be renovated, the effective vacancies amount to a low 2.0 percent. The increase in efficiency in 2019 is also underpinned by an improved operating margin of 73 versus 71 percent a year ago.
Peach Property Group has also significantly increased its equity as per the end of financial year 2019 according to preliminary numbers, and the Net Asset Value at market values was improved to around CHF 44 per share from CHF 36.70 at the end of the previous year. Despite the significant increase of the total balance sheet due to the strong portfolio growth, the equity ratio at market value is expected to amount to around 32 percent as of 31.12.2019 – after 36.7 percent as per the end of 2018.
Peach Property Group is confident for the year 2020. Following the integration of the portfolios acquired in 2019, the actual rent will increase by at least 40% to over CHF 55 million. In addition, Peach Property Group anticipates further operational improvements and has also continued to improve its financial clout through a broader positioning on the capital market.
Dr. Thomas Wolfensberger, CEO of Peach Property Group AG: “Peach Property Group has grown into new spheres in 2019 in any aspect. With a portfolio of now around CHF 1.1. billion, which we serve out of seven Peach Points, a top motivated workforce of around 90 people and our highly digital service model we have now grown capabilities that will offer new interesting opportunities for profitable growth going forward. As before, our tenants stand in the centre of all of our services and activities.”
The Peach Property Group will publish its final annual figures 2019 on 31 March 2020.
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Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
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About Peach Property Group AG
The Peach Property Group is a real estate investor and developer with an investment focus in Germany. The group stands for many years of experience, competence and quality. Innovative solutions for state-of-the-art living needs, strong partnerships and a broad value chain round off the profile. The portfolio consists of high-yield portfolio properties, typically in B-cities in the catchment area of conurbations. In addition, the Group develops real estate for its own portfolio or for condominium marketing. In the latter area, the Group concentrates on A locations and properties with attractive architecture and upscale furnishings for an international clientele. Its activities span the entire value chain from evaluating locations through to acquisitions and also active asset management and property sales or lettings.
Peach Property Group AG has its registered office in Zurich and the Group is headquartered in Cologne. Peach Property Group AG is listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer, Dr. Christian De Prati and Kurt Hardt.
You can find more information at http://peachproperty.com