Record-breaking profits in 2020, NAV per share (EPRA NTA) at CHF 57.29 – Payment of sustainable dividend
=> Earnings after taxes up by 40 percent to CHF 127.3 million (previous year: CHF 91.0 million)
=> Reduction in leverage with LTV at 57.8 percent (previous year: 59.6 percent) as planned
=> Real estate portfolio grows to more than 23 200 residential units (previous year: approx. 12 400 residential units); market value of real estate portfolio increases by 86 percent to approx. CHF 2.1 billion
=> Rental income up to CHF 54.7 million (previous year approx. CHF 39 million)
=> NAV per share (EPRA NTA) at CHF 57.29 as of December 31, 2020
=> Vacancy rate reduced by approx. 25 percent to 7.0 like-for-like despite COVID-19 (previous year 9.3 percent); taking into account new acquisitions, vacancy rate is 7.9 percent
=> Sustainability indicators published for the first time in accordance with EPRA sBPR
=> Board of Directors proposes payment of a dividend of CHF 0.30 per share
Peach Property Group AG, an investor with its focus on residential property portfolios in Germany, is reporting a successful 2020 result despite the impacts from the COVID-19 pandemic. Once again, the company shows record profits, significantly higher rental income and portfolio value.
The final results for the 2020 financial year correspond to the preliminary figures reported on February 9, 2021. Earnings after taxes were up by 40 percent to CHF 127.3 million, compared to CHF 91.0 million in the previous year. This means that the highest annual profit in the Company’s history was achieved in 2020, now for the second time running.
The main growth driver in 2020 was the acquisition of more than 10 800 apartments in Germany. As a result, the number of residential units in Peach Property Group’s portfolio increased by 87 percent to approx. 23 200 units, with a total lettable area of approx. 1.5 million square metres. With these acquisitions, Peach Property Group increased its presence in already existing regions and locations. The rapid integration of the new residential units was smooth, courtesy of the proven digital platform based on SAP S/4HANA. From tenant support and rental accounting to financial accounting and CAPEX management, all steps are implemented uniformly on this platform. As a result of further insourcing and the associated synergies and economies of scale, the operating margin has further improved from 73 percent to 75 percent.
At approx. CHF 2.1 billion, the market value of the real estate portfolio as at December 31, 2020 was 86 percent higher than a year before. As a result, Peach Property Group was able to reach its medium-term goals of portfolio value and the number of residential units, which was set only in the course of last year, alrea¬dy by the end of it. Through the capital increase which took place in Q4 of 2020, Peach Property Group was able to further reduce its leverage ratio (LTV) as planned regardless of the significant expansion of its property portfolio. As of December 31, 2020, the LTV ratio was 57.8 percent (following 59.6 percent in the previous year).
At CHF 0.59 per share, FFO (Funds from Operations) I was significantly above the previous year’s figure. The NAV per share at market values of CHF 51.31 also illustrates the value-creating growth of the company with an increase of approx. 14 percent compared to the previous year.
As a result of the portfolio growth, Peach Property Group was able to further expand its access to international investors; restrictions prohibiting non-Swiss investors from subscribing to equity were abolished and the Company completely opened itself to global market for real estate investors. Against this background, Peach Property Group is publishing selected key figures in accordance with EPRA standards for the first time. EPRA NTA was CHF 57.29 as of December 31, 2020. The already announced inclusion in the FTSE EPRA Nareit Global Real Estate Index in March 2021 underpins the Company’s dynamic development and will further increase its visibility among international institutional investors.
Rental income rises, vacancy rate decreases
The Peach Property Group portfolio generated net rental income of CHF 54.7 million in 2020, an increase of 41 percent over the previous year. At the same time, overhead costs rose by only 14 percent, which clearly underpins the increasing economies of scale. On a like-for-like basis, rental income grew by 4.7 percent – an extremely attractive figure by industry standards. Despite the COVID-19 pandemic, the vacancy rate reduced by around a quarter from 9.3 percent at the end of 2019 to 7.0 percent at the end of 2020 through active asset management and intensive, often digital, letting activities.
Focus on tenants and sustainability
A key element in the letting success is Peach Property Group’s central tenant focus which was maintained despite the severe restrictions imposed by COVID-19. The digital tenant support platform and the Peach Property tenant app also ensured that tenants and landlords remained in close contact with one another during the lockdown phases. This enabled Peach Property Group to continue to respond to the individual needs of its tenants. In parallel, five new Peach Point tenant stores located centrally to the newly acquired portfolios were opened as of January 2021 – as soon as COVID-19 restrictions allows for it again, Peach Points will be available for tenants in person, and without appointment during store hours.
Peach Property Group is, as a responsible corporation, committed not only to the interests of its tenants, but also to its employees, society, the environment and its shareholders. With the 2020 annual report, the Company published for the first time the most important key figures related to sustainability in practice, as well as decisive environment-related KPIs from its property portfolio. The data were collected and evaluated in accordance with the EPRA sBPR standards. Peach Property Group hence generated a basis for strategic sustainability management, which is to be further expanded in the coming years. An average Peach Property Group property with 20 residential units of 65 square metres emits 35.4 tonnes of CO2e per year. The GHG (Green House Gases) intensity is 27.5 kg of CO2e per square meter, which means that Peach Property Group’s figures are about 20 percent lower than those published by its peer group companies of 34.9 kg of CO2e per square meter. Optimized energy management, smart meters to measure consumption and the further expansion of electric vehicles in the Company’s fleet will ensure further sustainability performance in the coming years.
Payment of a sustainable dividend planned
Following the positive FFO per share, the expected significant FFO growth as well as the associated economies of scale, the Board of Directors of Peach Property Group AG proposes to the AGM to pay a dividend of CHF 0.30 per share to its shareholders. Through this, Peach Property Group is laying the foundation for its long-term dividend policy. With the anticipated strong growth in FFO in 2021 and beyond, the Company expects substantial increases in dividends to follow in the coming years. In the medium term the company targets a dividend yield of more than two percent.
Reto Garzetti, Chairman of the Board of Directors of Peach Property Group AG: “The economies of scale which we were able to unlock from our acquisitions allow us to distribute a dividend for the first time in nine years. In this transition year of 2021, a dividend of CHF 0.30 per share is proposed – we however see clear potential to increase this number in the coming years”.
Positive outlook for the year 2021
After a successful start to 2021 (all newly acquired portfolios were already fully integrated into the Peach Property Group’s digital platform on January 3, 2021), the Company is optimistic about the remainder of the year. Further strong growth in rental income of around 75 percent to more than CHF 95 million and further increases in the operating margin are expected.
Dr. Thomas Wolfensberger, CEO of Peach Property Group: “2020 was a very defining (due to the COVID-19 pandemic), but also extremely successful year for us. We have expanded our portfolio substantially and achieved record business results in the process. At the core of our success is our tenant-centric and highly digitized approach, which we have consistently pursued in 2020. Especially in this difficult pandemic phase, it was more important than ever for us to stand by our tenants. Despite many limitations, we have succeeded in doing so via the various digital channels. With our now significant portfolio size, we believe we are well positioned for continued dynamic growth, which we intend to continue in 2021. This focus on further growth will also not be impaired by the proposal of a sustainable dividend payment.”
The detailed 2020 annual report is available on the website at the following link
An analyst and media conference call will be held today at 10:00 AM in English with CEO Dr. Thomas Wolfensberger and CFO Dr. Marcel Kucher.
The webcast can be accessed at the following link
A further analyst and media conference call will be held today at 2:00 PM in German, also with CEO Dr. Thomas Wolfensberger and CFO Dr. Marcel Kucher.
The webcast can be accessed at the following link
Media, Investors and Analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | firstname.lastname@example.org
edicto GmbH, Axel Mühlhaus
+49 (0)69 90 55 05 52 | email@example.com
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, Kurt Hardt and Klaus Schmitz.
You can find more information at http://peachproperty.com