Author: pp_admin

Ad hoc announcement pursuant to Art. 53 KR

• Key operating figures significantly improved in the first half-year of 2022: new lettings at a record high, vacancy rate further reduced, average rent per square meter from new rental contracts increases by more than 15 percent, record number of completed refurbishments
• Valuation of the portfolio is expected to increase by approximately 3 percent
• Continuation of active capital management: additional repurchase of EUR 19 million of a bond maturing in February 2023 for a purchase price of 94 percent
• Operational successes confirm 2022 guidance: net rental income of between CHF 113 million and CHF 118 million; FFO I of between CHF 18 million and CHF 21 million

Zurich, July 25, 2022 – Peach Property Group AG, a real estate investor with an investment focus on residential rental properties in Germany, reports a positive development in its operational results for the first half-year of 2022 based on preliminary operating figures, while further improving the Group’s financial structure. The Group confirms the issued guidance for the 2022 financial year (expected net rental income between CHF 113 million and CHF 118 million; expected FFO I between CHF 18 million and CHF 21 million). Peach Property Group will publish its Semi-annual report 2022 on August 30.

Key operating figures significantly improved in the first half-year 2022

Peach Property Group achieved a new letting record with the conclusion of approximately 1 800 new rental contracts during the first half-year of 2022. Rental successes noticeably influence the vacancy rate, which is expected to reduce by approx. 0.3 percent compared to the end of 2021. This demonstrates the efficiency and scalability of the Group’s digital letting platform, and underpins the portfolio’s rental growth potential.

Simultaneously, the Company further increased rental income. The average rent per square meter from new rental contracts concluded is more than 15 percent above the average rent of approx. EUR 5.7 per square meter as of year-end 2021. Peach Property Group concluded rental adjustments for approx.
5 000 units across 69 cities during the first half-year of 2022. The portfolio average rent continues to be below the average market rent.

Peach Property Group further delivered on its modernization program and reached a new record number of approx. 1 400 units refurbished during the first half-year of 2022. Approximately 15 percent of the refurbished units underwent energy-related renovations such as the modernization of heating systems, or wall insulation solutions. The refurbishments form part of the growth drivers for the second half-year of 2022.

Focus on tenant satisfaction

Satisfying the needs of our tenants and contributing to their well-being remain the focus of Peach Property Group’s strategy. During the first half-year of 2022, more than 50 000 tenant tickets were successfully processed. The “one-touch” rate in processing tenant tickets remained stable at approx. 90 percent despite an increased ticket volume from a larger portfolio. The average time required by Peach Points to resolve a tenant report significantly reduced from 26.8 hours in 2021 to approx. 20 hours in first half-year of 2022.

Important milestones achieved with Peninsula development project

In addition to the operational achievements of Peach Property Group’s German portfolio, the Group reached important milestones with its sole remaining development project “Peninsula” in Wädenswil, Switzerland (https://www.peninsula-waedenswil.ch/). After the commencement of deconstruction work in the second quarter of 2022, and notarizations in July 2022, notarized purchase agreements were concluded for 12 of the planned 56 residential units, with a sales volume of over CHF 30 million.

Positive valuation result

The valuation of Peach Property Group’s portfolio is expected to increase by approximately three percent over the last six months after taking into account the investments made. As a result, the net tangible assets value (NTA) according to EPRA reporting guidelines is expected higher than the CHF 68.56 per share reported as of December 31, 2021. In addition, the loan-to-value ratio (LTV) of 51.9 percent as of December 31, 2021, decreased further toward the medium-term target of 50 percent.

Continuation of active capital management

Through active capital management, Peach Property Group continuously optimizes its financing costs. Most recently, in line with a partial tender offer the Company repurchased EUR 19 million of a bond maturing in February 2023 for a purchase price of 94 percent, reducing the remaining amount of the maturing bond to approx. EUR 180 million. To this end, the Group utilized a part of a credit facility with a total volume of EUR 100 million concluded in April 2022.  An already committed secured financing of approx. EUR 90 million, as well as an additional secured financing still under negotiation will further improve the financial flexibility of the Company, also with respect to the refinancing of the maturing bond. A total of approx. EUR 600 million of the portfolio is unencumbered. Furthermore, Peach Property Group AG is constantly reviewing the further optimization of its financing structure.

Operational successes confirm guidance for current financial year 2022

Dr. Thomas Wolfensberger, CEO of Peach Property Group AG, commented: “Peach Property Group achieved an outstanding performance in the first six months of the current financial year. The new records for important key operating figures once again underline the efficiency and scalability of our platform. We have never before refurbished and let so many apartments.” Regarding the outlook for the full year, he concluded: “Our rental and refurbishment successes, together with the continued rise in market rents form the basis for a successful second half of the year. With construction costs rising and fewer new apartments completed, the high demand for affordable housing is being met by a reduced supply. I am convinced that this circumstance will have a further and sustained positive effect on the development of the value of our portfolio. Overall, we still feel very comfortable with our guidance for rental income and FFO I for the financial year 2022 and confirm it.”

Contact:

Media, investors, and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer, Thorsten Arsan, Chief Financial Officer, and Stefan Feller, Head of Investor Relations
+41 44 485 50 18 | investors@peachproperty.com

Media Germany

Edelman GmbH, Ruediger O. Assion
+49 (0) 221 8282 8111 | mobile: +49 (0) 162 4909624 | ruediger.assion@edelmansmithfield.com

About Peach Property Group AG

The Peach Property Group is a real estate investor with an investment focus on residential rental properties 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.

More information at https://peachproperty.com/en/

Ad hoc announcement pursuant Art. 53 LR

• Dividend increase by 10 percent to CHF 0.33 per share
• Ordinary capital increase from statutory capital contributions by increasing the nominal value of shares to CHF 30.00; new total nominal share capital of approx. CHF 506 million
• Increase of existing conditional capital to a new total of CHF 252 million, approval of authorized capital with a maximum of CHF 252 million
• Board of Directors re-elected for a further tenure of one year
• Guidance 2022 confirmed: net rental income CHF 113 million to CHF 117 million, FFO I CHF 18 million to CHF 21 million

Zurich, May 20, 2022 – The shareholders of Peach Property Group AG, a real estate investor with an investment focus on residential rental properties in Germany, approved all of the agenda items at today’s Ordinary General Meeting with a clear majority. A total of around 56 percent of the share capital and 87 percent of the registered voting rights were represented at this year’s General Meeting, which was again held fully virtually.

The General Meeting resolved among others, a dividend payment of CHF 0.33 per share with more than 97 percent of votes cast. Payment date is May 27, 2022. The dividend, increased by 10 percent compared with the previous year, will be paid entirely out of statutory capital contributions, and will be exempt from withholding tax.

In addition, the shareholders approved the ordinary capital increase from statutory capital contributions by increasing the nominal value of shares from CHF 1.00 to CHF 30.00 with around 98 percent of the votes cast. The new total nominal share capital is CHF 506 471 190, divided into 16 882 373 registered shares with a par value of CHF 30.00 each. This does not change shareholders’ voting rights and capital share. Furthermore, no new shares will be created, and no additional funds inflow will occur. By taking this step, Peach Property Group aims for greater flexibility with regards to future dividend payments to shareholders. As in the previous year, the shareholders resolved with 72 percent of the votes cast, to increase the existing conditional capital by approximately CHF 250 million to a new total of CHF 252 million, and to approve an authorized capital with a maximum of CHF 252 million. Peach Property Group can thus continue to act swiftly and flexibly on acquisition opportunities, and further pursue its value-creating growth strategy.

Moreover, the General Meeting confirmed the remuneration of the Board of Directors and the management with between around 92 percent and over 95 percent of the votes cast and re-elected the Chairman of the Board of Directors Reto Garzetti alongside with other Board Members Peter Bodmer, Dr Christian De Prati, Kurt Hardt and Klaus Schmitz for a further tenure of one year.

Despite the current volatile market environment, Peach Property Group confirms the guidance for the 2022 financial year based on the positive business development in the current financial year. The Group expects a currency-adjusted net rental income of between CHF 113 million and CHF 117 million and expects to achieve a FFO I of between CHF 18 million and CHF 21 million. In the 2022 financial year, Peach Property Group further successfully reduced the overall average interest costs to 2.5 percent through a package of refinancing measures.

Most recently, Peach Property Group announced the conclusion of its first revolving credit facility (RCF) of EUR 100 million, thereby further strengthening the Group’s financial flexibility to continue its opportunity-driven growth and investment strategy. The new financing option underlines that Peach Property Group has sufficient access to capital, even amid the current challenging financial market environment.

Currently Peach shares (PEAN) are trading at a discount of approx. 35% to the net tangible assets value (NTA) according to EPRA reporting standards, which was CHF 68.56 as of the end of 2021.

The detailed voting results and minutes of the General Meeting will be available on the Peach Property Group website: https://www.peachproperty.com/en/investor-relations-en/#corporategovernance

Contact:

Media, investors, and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer, Thorsten Arsan, Chief Financial Officer, and Stefan Feller, Head of Investor Relations
+41 44 485 50 18 | investors@peachproperty.com

Media Germany

Edelman GmbH, Ruediger O. Assion
+49 (0) 221 8282 8111 | mobile: +49 (0) 162 4909624 | ruediger.assion@edelmansmithfield.com

About Peach Property Group AG

The Peach Property Group is a real estate investor with an investment focus on residential rental properties 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.

More information at https://peachproperty.com/en/  

Ad hoc announcement pursuant Art. 53 LR

Peach Property Group AG, a real estate investor with an investment focus on residential rental properties in Germany, publishes on April 27, 2022, the invitation to the Annual General Meeting to be held on May 20, 2022.

Among other items, the Board of Directors proposes an ordinary capital increase from statutory capital contributions by increasing the nominal value of the shares from the current CHF 1.00 to CHF 30.00. The voting share and capital share of each shareholder will not change due to the proposed capital increase. No new shares will be created. This capital increase, from which no additional funds are generated, will increase the flexibility for future distributions to the shareholders.

Furthermore, the Board of Directors proposes to the shareholders – as in previous years – an increase of the conditional capital as well as the creation of authorized capital which will create agility to move quickly and flexibly on new acquisition opportunities in the market. As in the past, Peach Property Group will continue to focus on off-market transactions that create value and growth for the shareholders.

Details of these three partial amendments to the Articles of Incorporation as well as the other agenda items are available at https://shab.ch and on the website of Peach Property Group at the following link: https://www.peachproperty.com/en/investoren/corporate-governance/

Contact:

Media, investors, and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer, Thorsten Arsan, Chief Financial Officer, and Stefan Feller, Head of Investor Relations
+41 44 485 50 18 | investors@peachproperty.com

Media Germany

Edelman GmbH, Ruediger O. Assion
+49 (0) 221 8282 8111 | mobile: +49 (0) 162 4909624 | ruediger.assion@edelmansmithfield.com

About Peach Property Group AG

The Peach Property Group is a real estate investor with an investment focus on residential rental properties 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.

More information at https://www.peachproperty.com/en/

Ad hoc announcement pursuant Art. 53 LR

* Earnings after tax of CHF 201 million up by around 58 percent year-on-year
* FFO I of CHF 11.1 million and rental income of CHF 108.6 million doubled
* Like-for-like rental income growth of 4.0 percent
* Real estate portfolio grows to more than 27 400 residential units with a market value of CHF 2.7 billion
* EPRA NTA increases to CHF 68.56 per share
* Loan-to-value ratio (LTV) reduced to 51.9 percent
* Forecast 2022: net rental income CHF 113 million to CHF 117 million, FFO I CHF 18 to 21 million
* Sustainability targets defined – commitment towards portfolio climate neutrality by 2050

Peach Property Group AG, a real estate investor with an investment focus on residential rental properties in Germany, continued its successful growth strategy in the 2021 financial year. At CHF 259 million, earnings before taxes reached a new high in the Group’s history and was 69 percent above the previous year’s reported figure. Earnings after tax significantly increased year-on-year by approx. 58 percent, to CHF 201 million. Funds from operations (FFO I) more than doubled year-on-year from CHF 4.6 million, to CHF 11.1 million. Net rental income generated amounted to CHF 108.6 million, almost doubling the previous year’s reported figure. On a like-for-like basis this corresponds to an increase of 4.0 percent. Key drivers were the acquisitions at the end of 2020 and in June 2021, as well as the economies of scale generated as a result. The final results for the 2021 financial year materially correspond to the preliminary figures reported on February 2, 2022.

Accordingly, the Board of Directors of Peach Property Group AG proposes to distribute a dividend of CHF 0.33 per share to shareholders (previous year CHF 0.30). This proposal aligns with the communicated dividend policy of 50 percent of FFO I.

High value of the real estate portfolio

Despite COVID-19-related lockdowns, Peach Property Group further expanded its real estate portfolio in Germany by acquiring around 4 300 new residential units in early summer 2021. With more than 27 400 residential units, and a total market value of CHF 2.7 billion, compared to CHF 2.1 billion in the previous year, a new record has been achieved. The value increase resulted from both acquisitions and revaluations. In line with its strategy, Peach Property Group concentrated its portfolio expansion in regions such as the Ruhr region in North Rhine-Westphalia.

The value of net tangible assets (NTA) according to EPRA reporting guidelines increased by around 20 percent to CHF 68.56 per share compared to CHF 57.29 per share at the end of 2020.

Improved financial profile and significant reduction in loan-to-value ratio (LTV)

In June 2021, Peach Property Group successfully placed a 2.5 percent CHF mandatory convertible bond with an issue amount of CHF 180 million. Following to the further strengthening of the equity base due to the mandatory convertible bond and the annual result, the loan-to-value ratio (LTV) reduced from 57.5 percent in the previous year, to 51.9 percent in 2021. The continuously improving financial profile was also reflected in the improvement of all external ratings by Moody’s Investors Service and Fitch Ratings in 2021. As already announced with the preliminary figures, Peach Property Group will discontinue the use of a third rating agency in the future for efficiency and will focus on two rating agencies only.

Further growth expected in 2022

With its focus on residential real estate in German metropolitan regions and Tier II cities, Peach Property Group expects also in the current financial year a dynamic market environment. In this context, Peach Property Group will continue to pursue a value-creating acquisition strategy which seeks for a clear expectation of return on investment. With an average current rent in place of EUR 5.73 per square meter the portfolio offers a substantial rent-increase potential of 18 percent compared to the market.

Net rental income is expected to reach between CHF 113 million and CHF 117 million in the 2022 financial year (currency-adjusted comparable figure in 2021 CHF 100.4 million). In terms of FFO I, Peach Property Group expects to achieve CHF 18 to 21 million (currency-adjusted comparable figure of CHF 10 million in 2021).

Tenant satisfaction remains the top priority. In the past financial year, the time between notification of a claim and its complete rectification was already reduced from 7 to 5 days.

Meanwhile Peach Property will continue to invest in the expansion of its digital platform and in a motivated team that provides competent support to tenants. To provide this support even better and closer to tenants, three more Peach Points were opened at the beginning of 2022. This brings the total number of tenant shops to 15.

Goal of climate neutrality as part of the further developed sustainability strategy

Peach Property Group’s sustainability strategy was further developed in the current financial year and a decarbonization plan was developed for the first time. As a result, Peach Property Group is committed to achieving climate neutrality of its real estate portfolio by 2050. As an interim step, the aim is to significantly reduce CO2 intensity to below 30 kg CO2 per square meter by 2030. To reduce the environmental footprint, modernization and renovation activities will be intensified, and a corresponding investment program for this purpose was launched. Furthermore, an evaluation by an ESG rating agency will be carried out for the first time in 2022.

Dr. Thomas Wolfensberger, CEO of Peach Property Group AG, said: “For Peach Property Group, the past financial year was characterized by the continuation of our growth strategy. We expanded our portfolio and strengthened the Group’s position on the real estate and capital markets. With now more than 27 400 residential units in our portfolio and a total market value of the portfolio of CHF 2.7 billion, we have achieved a new high. Our actions are consistently geared towards satisfying the needs of our tenants and contributing to their well-being. Our business model has always pointed at meeting our environmental, economic and social responsibilities. We are now additionally committed to achieving climate neutrality of our real estate portfolio by 2050, with an interim target of 2030.”

Wolfensberger continued: “At present, however, our thoughts are primarily with the people in Ukraine affected by the terrible war. We have maintained close contact with officials in over 12 cities since the start of the refugee wave and are now able to provide constantly accommodation for people who have had to flee Ukraine. Our teams in the now 15 regional Peach Points are doing an excellent job. We hope to be able to make at least a small contribution to overcoming this crisis.”

“We achieved a significant improvement in all key financial ratios in financial year 2021, thus closing a record year. The strengthened equity base is also reflected in a significantly lower leverage ratio LTV. Accordingly, we are continuing our sustainable dividend policy and have slightly increased the proposed dividend compared to the previous year as part of our dividend policy. For the current financial year 2022, we expect a continued dynamic positive development as well, which will be reflected in both higher net rental income and higher FFO I. We intend to continue to grow in our core markets in a balanced and sustainable way, whereby our acquisition strategy is linked to a clear expectation of returns. At the same time, we will increase investments in the portfolio and thus the quality of our real estate portfolio. The focus here is on sustainability,” added Thorsten Arsan, CFO of Peach Property Group AG.

The detailed Annual Report 2021 is available on the website at the following link: https://www.peachproperty.com/en/investoren/publications/annual-reports/

An analyst and media conference call will be held today at 10 a.m. in English with CEO Dr. Thomas Wolfensberger and CFO Thorsten Arsan. The webcast can be accessed at the following link: https://onlinexperiences.com/Launch/QReg/ShowUUID=2D2DF880-18CE-4A9C-A611-26EBFF95DD10

Contact:

Media, investors, and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer, Thorsten Arsan, Chief Financial Officer, and Stefan Feller, Head of Investor Relations
+41 44 485 50 18 | investors@peachproperty.com

Media Germany

Edelman GmbH, Ruediger O. Assion
+49 (0) 221 8282 8111 | mobile: +49 (0) 162 4909624 | ruediger.assion@edelmansmithfield.com

About Peach Property Group AG

The Peach Property Group is a real estate investor with an investment focus on residential rental properties 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.

More information at https://peachproperty.com/en (https://peachproperty.com/)

Ad hoc announcement pursuant Art. 53 LR

* Highest earnings before taxes in the Group’s history of approx. CHF 258 million based on preliminary figures (previous year: CHF 153 million), which corresponds to more than CHF 15 per share on a diluted basis
* Rental income almost doubled from CHF 54.7 million to CHF 108 million while FFO I more than doubled from CHF 4.6 million to between CHF 10 million to CHF 11 million
* Real estate portfolio grows to more than 27 400 units compared with 23 200 in the previous year
* Market value of the real estate portfolio increases to more than CHF 2.6 billion and EPRA NTA increases to over CHF 67 per share
* LTV reduced from 57.8 percent to estimated, approximately 52 percent
* All external ratings improved in the reporting year

Peach Property Group AG, a real estate company focusing on investing and managing residential rental properties in Germany, continued its successful development in financial year 2021 based on preliminary, unaudited figures. At CHF 258 million, Peach Property Group achieved the highest earnings before taxes in its history, which corresponds to an increase of 69 percent compared to the previous year’s earnings before taxes of CHF 153 million. Rental income also almost doubled year-on-year from CHF 54.7 million to CHF 108 million in 2021, following acquisitions made in the reporting and previous year. FFO I of between CHF 10 million and CHF 11 million more than doubled compared to the previous year (CHF 4.6 million).

Growth strategy shows clear success and results in positive revaluations

As part of its growth strategy, Peach Property Group has expanded its real estate portfolio to more than 27 400 residential units compared with 23 200 in the previous year. Consequently, the total market value of the portfolio increased significantly to more than CHF 2.6 billion compared with CHF 2.1 billion at the end of 2020. In addition to economies of scale from the acquisitions, the positive earnings development is particularly attributable to the result from revaluations across the Group´s portfolio. These results demonstrate that the investment strategy, which focuses on Tier II cities located in the vicinity of German metropoles, where significant further valuation growth potential exists, paid off.

The net tangible asset value (NTA) according to EPRA standards is expected to approximate CHF 67 per share, compared to CHF 57.29 per share at the end of 2020.

Improvement in earnings and leverage reflected in all external ratings

During the course of the year, Peach Property Group AG successfully issued a 2.5 percent mandatory convertible bond of CHF 180 million, which was fully converted at the end of the year, further improving its equity base. The substantially strengthened equity base due to the mandatory convertible bond, and the annual result translated into a significantly lower loan-to-value ratio (LTV) of approximately 52 percent compared to 57.8 percent in the previous year.

In 2021, Peach Property Group also achieved an improvement in all external ratings. Moody’s Investors Service upgraded the corporate credit rating of Peach Property Group to “Ba2” with a stable outlook. FitchRatings had already upgraded the long-term issuer default rating (IDR) of Peach Property Group AG to “BB” with a stable outlook. The unsecured debt rating was raised to “BB+”, one notch below investment grade. S&P Global Ratings upgraded the long-term issuer rating to “BB-“/stable outlook. In the future, Peach Property Group will discontinue the use of a third rating agency for efficiency and focus on two rating agencies only.

Positive start to the year 2022 and further development of sustainability strategy

For the current financial year 2022, Peach Property Group expects a continued positive business development. Investments in the modernization of the real estate portfolio will be increased to over CHF 70 million in the current financial year, following approx. CHF 45 million in 2021, which will aid the further reduction of vacancy. In 2022, activities will further focus on the continued development of the sustainability strategy. In this context, the Group will present its decarbonization strategy in spring 2022.

Dr. Thomas Wolfensberger, CEO of Peach Property Group AG, said: “Our strategy and business model continued to excel in the 2021 financial year, enabling us to close another year of very profitable growth. Accordingly, over the past two years – from December 19 to December 21 – we have outperformed both the SPI index as well as EPRA Germany. In comparison to our peer group, we showed the most consistent performance. We want to continue to systematically develop our strategy of value-creating growth in 2022. The focus will be on modernizing the real estate portfolio and expanding sustainability activities. By this means, we are paving the way for further growth, and creating value for our tenants, shareholders and employees.”

“We were able to further significantly strengthen our financial profile in financial year 2021, which was reflected in the improvement of all external ratings. We aim to further reduce interest expenses annually by a mid- to high single-digit million amount in the future and are working on various refinancing options. This will give us room for maneuver as well as for further growth. We will significantly expand investment in the real estate portfolio and thus increase its value, from which the leverage is expected to remain largely unaffected. The solidity of our financial profile remains our top priority, and we are aiming for an LTV of below 50 percent in the medium term,” added Thorsten Arsan, CFO of Peach Property Group AG.

Contact:

Media, investors, and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer,

Thorsten Arsan, Chief Financial Officer, and Stefan Feller, Head of Investor Relations
+41 44 485 50 18 | investors@peachproperty.com

Media Germany

Edelman GmbH, Ruediger O. Assion
+49 (0) 221 8282 8111 | mobile: +49 (0) 162 4909624 | ruediger.assion@edelmansmithfield.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.

More information at https://peachproperty.com/en (https://peachproperty.com/)