> Strong increase in earnings before taxes to around CHF 50 million, after CHF 15.5 million during the previous year
> Portfolio of residential units grows to around 7,000 units in 2017 after 3,150 units during the previous year; lettable area increases to over 445,000 square metres
> Annualised target rents rise by 109 percent from CHF 16.3 million during the previous year to CHF 34 million
> Equity ratio according to IFRS continues to be above 40 percent
> Positive outlook: Continuation of the dynamic growth expected in 2018; medium-term expansion of the portfolio to 9,000 residential units planned
Peach Property Group, an investor specialising in the management of property investments in Germany with a focus on residential property, has significantly increased its revenues and earnings in fiscal year 2017 according to preliminary, unaudited figures. Earnings before taxes are likely to be around CHF 50 million – significantly above the prior-year figure of CHF 15.5 million. Apart from the strong expansion of the existing portfolio, the excellent development of the business was also driven by the successful asset management. Considerable appreciations of the properties were achieved in this way. In addition, one-off effects, most prominently currency gains in the amount of more than CHF 7 million, had a positive impact on earnings.
In 2017 the portfolio of residential units was significantly increased thanks to several transactions to around 7,000 units after 3,150 units in 2016. The lettable residential area grew to over 445,000 square metres after just under 250,000 square metres during the previous year. Rental income rose in 2017, according to the first key data, by around 77 percent to CHF 16.3 million after just under CHF 9.2 million in 2016. The rise in the target rental income as of the reporting date by more than 109 percent over the prior year to CHF 34 million is substantially higher.
According to preliminary figures, the market value of the portfolio of residential units rose to around CHF 450 million in 2017; the total portfolio had a market value of CHF 520 million on the reporting date. At the end of 2016, CHF 226 million and CHF 329 million, respectively, were reported.
On the cost side, the Peach Property Group was able to leverage the benefits of the existing operational platform and close the year with a disproportionately low increase in the cost basis by approximately 25 percent.
These figures are further evidence in support of the successful implementation of the corporate strategy which is based on the value-adding portfolio management focusing on German residential property. The 2017 profit as well as the placement of a convertible bond and a capital increase have resulted in a significant increase in equity by more than 70 percent to around CHF 250 million after CHF 148 million during the previous year. The equity ratio hence remained at more than 40 percent despite the strong growth in the total balance sheet.
For 2018, the Peach Property Group is confident that it will be able to continue the dynamic growth course with a focus on its portfolio properties in German B cities and to report a noticeable growth in rental income as a result of the full-year consolidation of the 2017 acquisitions. In 2018, the share of the development portfolio will continue to decrease. The development project “Wollerau Park” in Switzerland, which is currently under construction, will, for instance, be completed in 2018 and handed over to the buyers. At present, already more than 90 percent of the units are sold and others are reserved.
Dr. Thomas Wolfensberger, CEO of the Peach Property Group, comments: “We have grown significantly in 2017 and anticipate in the current year 2018 a continuation of the dynamic development – not least because of the full-year consolidation of last year’s acquisitions. The available financial resources allow us, moreover, to extend the portfolio of residential units from currently just around 7,000 units to 9,000 units in the medium term.”
The full annual report and further information on the development of the business during last year will be announced on 20 March 2018.
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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
Peach Property Group is a property investor and developer focused on investments in Germany and Switzerland. The Group stands for long time experience, competence and quality. Innovative solutions for modern housing needs, strong partnerships and a wide value chain complete the profile of the Group. The portfolio consists of an increasing number of high yield investment properties, typically in B-cities in close reach to metropolitan areas. In addition, the Group develops properties for its own portfolio or for the sale as condominium. Developments for sale focus on A-locations and encompass attractive architecture and high level furnishing for an international clientele. The business activities of the Group cover the entire value chain, from property acquisition and site selection to active asset management and finally to the sale or lease of properties.
Peach Property Group AG is headquartered in Zurich and has its German Group headquarters in Cologne. Peach Property Group AG is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer and Dr. Christian De Prati.
For more information, see https://peachproperty.com