• NAV at market values up by 3.3 percent to CHF 134.4 million
  • Operating income of CHF 16.5 million well above previous year’s CHF 6.2 million
  • EBIT and net result also markedly improved
  • All development projects progressing as planned
  • Sales performance more than double that of previous year
  • Purchase of second investment property portfolio boosts regularity of rental income
  • Substantial cash flows from current projects over the next few years

Zurich, 23 August 2012 – Peach Property Group AG, a leading developer of top-quality residential property in the German-speaking region of Europe, increased net asset value (NAV) at market values by CHF 4.3 million compared to the end of 2011 to CHF 134.4 million. This corresponds to a NAV market value of CHF 27.62 per share.

Operating income rose during the first half of 2012 to reach CHF 16.5 million, compared to CHF 6.2 million in the same period of the previous year. This marked rise is due to sales proceeds from completed projects, rental income generated for the first time during the complete reporting period, and the appreciation of investment properties.

Operating profit (EBIT) for the first half of 2012 stands at CHF 3.0 million, against the negative result of CHF –5.3 million in the first six months of 2011. Peach Property Group improved its net result during the reporting period from CHF –6.3 million in the previous year to CHF 140,000. This corresponds to a diluted profit per share of CHF 0.03.

Portfolio value above CHF 360 million

On the basis of the valuation prepared by independent property appraisers Wüest & Partner as per 30 June 2012, the market value of Peach Property Group’s property portfolio stands at CHF 364.5 million. The difference compared to the value of CHF 292.4 million at the end of 2011 is attributed, on the one hand, to the progress – and the corresponding decreasing risk – of the development projects, and on the other hand to the purchase of an additional investment property portfolio in Germany, as well as the acquisition of land for the “Candy Factory” project. Of the overall property portfolio, development properties account for CHF 307.0 million or 84% (including joint ventures), with the remaining CHF 57.5 million or 16% accounted for by investment properties.

Projects on schedule; good sales performance

During the reporting period, Peach Property Group has progressed its development projects in Switzerland, Germany and Austria as planned. “Candy Factory” in Wollerau on Lake Zurich represents yet another project entering its firming-up phase. The application for planning permission was submitted at the end of May 2012; sales are scheduled to commence during the winter of 2012/2013. Following lengthy preparations, civil engineering work has begun on the “Peninsula Beach House” in Wädenswil, near Zurich. Of the 23 apartments, 13 have already been sold. Superstructure work on the major “yoo berlin/Am Zirkus 1” project in Berlin is progressing to plan and had already reached the third floor by the end of June. The first phase of the construction (Alsterkamp 43) has been completed at Hamburg’s “Harvestehuder Weg 36” and a number of the apartments were handed over. Construction phase two, involving a further 44 apartments, began in May 2012. The “Schooren des Alpes” project in Kappl, near Ischgl, Austria, is nearing completion. Only three apartments are still available.

Peach Property Group has increased its notarised apartment sales by a significant margin across all its projects. Overall sales for the first six months of 2012 stood at approximately CHF 48.7 million, compared to 20.4 million for the same period in the previous year.

Investment property portfolio expanded in line with corporate strategy 

At the end of January 2012, Peach Property Group acquired another high-yield investment property portfolio, this time in Erkrath-Hochdahl, near Düsseldorf, Germany. This added 143 apartments and 28 commercial units to the Group’s portfolio of investment properties. The purchase is in line with the strategy of forging a portfolio of investment properties generating regular rental income. By mid-year, Peach Property Group was in possession of a portfolio of investment properties comprising 519 apartments, commercial space amounting to almost 15 000 m2 and annual rental income budgeted at CHF 4.6 million.

Focus on operational excellence

In the interests of customer orientation, optimised internal processes and an efficient cost structure, Peach Property Group implemented projects in the area of marketing and sales, as well as construction management during the first half of 2012. The Group continued rolling out its CRM system, which facilitates integrated customer relations and links with sales partners and brokers, and equipped it with additional customer functionalities. Marketing activities for current projects were intensified with events, website relaunches, advertising, construction site design and showrooms. A further focus lay on the introduction of a company-wide system of integrated construction cost management.

Outlook

With regard to its development projects, Peach Property Group is currently planning the following milestones for the second half of 2012: civil engineering work on the “Peninsula Beach House” project will be completed by early 2013; superstructure work will follow on immediately. The topping out ceremony at “yoo berlin” will take place in winter 2012. The “Schooren des Alpes” apartments will be handed over to their owners in time for the skiing season in December 2012. Finally, the second phase of the “Harvestehuder Weg 36” project will be completed during the first quarter of 2013. These ongoing projects will generate substantial cash flows for Peach Property Group over the next few years. The returns are designed to secure a solid capital base for Peach Property Group and generate the means to realise new projects. Accordingly, Peach Property Group will continue with its evaluation of attractive development opportunities in the target regions. At the same time, the Group intends to further expand its portfolio of investment properties as and when attractive opportunities arise. The existing investment properties will undergo an active maintenance process with a view to increasing rental yields.

Peach Property Group AG CEO Thomas Wolfensberger comments: “We draw a positive conclusion for the first half of 2012: to begin with, all the projects have achieved the milestones that were set for them, and the outstanding sales performance is confirmation that Peach Property Group is building the right properties in the right locations. Secondly, we have made good progress in terms of implementing our strategy by acquiring a second portfolio of investment properties. This helps smoothen out the irregular income accruing from our project developments. Third and last, this progress is reflected in the figures: Peach Property Group has successfully grown the market value of its portfolio and significantly increased its profits.”

Key figures

Peach
Property Group AG (consolidated)

 

30.06.2012

30.06.2011

Operating Income

in TCHF

16 463

6 242

EBIT

in TCHF

2 957

-5 291

Net result

in TCHF

140

-6 262

 

 

 

30.06.2012

31.12.2011

NAV IFRS

in TCHF

93
559

95
234

NAV market value1

in TCHF

134
354

130
016

Shareholders’ Equity

in TCHF

93
559

95
234

Equity ratio (reported)

in %

30

42

Equity ratio (at NAV market value1)

in %

38

48

Employees

 

32

35

 

Peach
Property Group share

 

30.06.2012

30.06.2011

Diluted profit per share

in CHF

0.03

-1.30

 

 

 

30.06.2012

31.12.2011

NAV IFRS per share

in CHF

19.23

19.63

NAV market value1 per share

in CHF

27.62

26.79

Share price

in CHF

11.90

11.05

Market capitalisation

in TCHF

57 889

53 619

1 Market value calculated on the basis of the independent Wüest & Partner valuation

The Half-Year Report 2012 is available in German on the company’s website at

http://investoren.peachproperty.com/download/companies/peach/Quarterly%20Reports/Halbjahresbericht_2012_Peach_Property_Group_AG_de.pdf

Contacts

Investors and analysts:

Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 44 485 50 00, investors@peachproperty.com

Media

Siro Barino, Barino Consulting
+41 79 335 24 24, info@barino.ch

About Peach Property Group

Peach Property Group AG is a leading developer 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 high-quality 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 has a branch office in Cologne. The Group’s current projects account for a total target marketing volume of approximately CHF 800 million. Peach Property Group AG is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366).

Visit www.peachproperty.com for more information.

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