EQS-Adhoc: Peach Property Group increases profit after tax to CHF 3.6 Mio and significantly increases equity ratio to 45% in first half of 2016
24.08.2016 – 07:06
EQS Group-Ad-hoc: Peach Property Group AG / Key word(s): Half Year Results Peach Property Group increases profit after tax to CHF 3.6 Mio and significantly increases equity ratio to 45% in first half of 2016 24.08.2016 / 07:00 Release of an ad hoc announcement pursuant to Art. 53 KR. -------------------------------------------------------------------------------- Press release Peach Property Group increases profit after tax to CHF 3.6 Mio and significantly increases equity ratio to 45% in first half of 2016 -Profit after tax up 6 percent to CHF 3.6 million; profit before tax of CHF 7.7 million (plus 65 percent) -Equity ratio (IFRS) increases to 45 percent; 48 percent based on market values -Rental income up 5 percent to CHF 4.4 million -Successful transformation of portfolio towards residential properties in Germany -Positive business performance expected to continue in 2016 Zurich, 24 August 2016 - Peach Property Group, an investor specialising in the management of residential property in Germany, has achieved key successes in implementing its strategy of strengthening its investment portfolio in the residential property sector in the first half of 2016. At CHF 7.7 million, earnings before taxes exceeded profit recorded in the prior-year period by approximately 65 percent. Profit after tax rose by around 6 percent to CHF 3.6 million, a figure that includes significantly higher one-off tax expenses resulting from the profitable sale of the Gretag site in Regensdorf near Zurich as well as the sale of the "Erkrath Retail" property near Düsseldorf. Property sales, higher rental income and appreciation in the value of investment properties caused by the significant expansion of the residential portfolio as well as operational progress within the portfolios have all had a positive effect on earnings, while operating costs have also been considerably reduced. As a result of the sale of the Gretag site in Switzerland and the commercial "Erkrath Retail" property in Germany during the reporting period, Peach Property Group received substantial funds that were used to make additional residential portfolio acquisitions and repay the EUR 50 million bond listed on the Frankfurt Stock Exchange. Most prominently, Peach Property Group acquired three portfolios containing a total of 795 apartments in the first six months of 2016, increasing the Group's residential portfolio to 2,245 units with lettable space totalling almost 150,000 square metres. Despite the property sales in Regensdorf and Erkrath, rental income increased by approximately 5 percent to CHF 4.4 million. As of the end of June 2016, the market value of the investment portfolio accounted for CHF 160 million. Without taking into account the properties sold in Erkrath and Regensdorf, this equates to an increase of CHF 57 million compared to the end of 2015. The increase mainly resulted from the three successful acquisitions. In addition, the occupancy rate of properties such as those in Nordhessen and Neukirchen was significantly improved due to a combination of refurbishments and active asset management, resulting in value appreciation and higher rental income. Peach Property Group reduced its operating costs further despite acquiring additional portfolios. Personnel expenses fell by around 28 percent to CHF 2.3 million between January and June 2016. Employee numbers were reduced in project management due to an increased focus on portfolio management and the completion of development projects, while the executive management team was also reduced to three members. In light of higher profits for the first six months of the year and the topping-up of the hybrid bond to a total of CHF 39.3 million, equity rose significantly to CHF 133 million as of 30 June 2016, compared with CHF 114 million at the end of 2015. As a result of these developments and a marked reduction in total assets caused by the repayment of the EUR-denominated bond, the IFRS equity ratio was up from 31 percent as of 31 December 2015 to 45 percent at the end of the reporting period. The equity ratio based on market values was up to 48 percent from 33 percent at the end of 2015. Peach Property Group expects this positive business development to continue during the second half of 2016 financial year and is continuing to focus on increasing the size and value of its residential property investment portfolio in Germany. The company recently notarised an agreement to acquire a portfolio consisting of around 900 apartments in Kaiserslautern, thus boosting the number of apartments in its portfolio by 40 percent to almost 3,150 units and increasing target rent by 37 percent to around CHF 16.2 million. Dr. Thomas Wolfensberger, CEO of Peach Property Group, comments: "We are pleased to have made major progress in the first half of 2016 and further reinforced our position as a holder of residential property in Germany. In addition, profitable property sales outside our primary investment focus areas have not only confirmed but also substantially exceeded the conservative valuations placed on our properties. As well as significantly boosting current income, we have increased profits further and now have an extremely solid equity ratio of 45 percent. Despite repaying the bond in Germany, our cash and cash equivalents totalled around CHF 19.2 million after the first six months of 2016, up from CHF 13.3 million at the end of 2015. This places us in a financially strong position to continue implementing our growth plans." The 2016 Half-year Report is available on the Peach Property Group's website by clicking the following link (German only):www.peachproperty.com/HJB2016 Furthermore, the Asset Reporting as of the second quarter of 2016 including details on the portfolio is available for download at this link (German only):ht tp://investoren.peachproperty.com/websites/peachproperty/German/5300/asset-repor ting.html Contacts: Media, investors and analysts Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer +41 44 485 50 00 | investors@peachproperty.com Media Germany edicto GmbH, Axel Mühlhaus, Peggy Kropmanns +49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de 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). For further information, please visitwww.peachproperty.com End of ad hoc announcement Additional features: Document:http://n.eqs.com/c/fncls.ssp?u=TPYJSTODGT Document title: Press Release -------------------------------------------------------------------------------- 24.08.2016 News transmitted by Tensid EQS AG. www.eqs.com -------------------------------------------------------------------------------- Language: English Company: Peach Property Group AG Seestrasse 346 8038 Zürich Switzerland Phone: +41 44 485 50 00 Fax: +41 44 485 50 11 E-mail: investors@peachproperty.com Internet: www.peachproperty.com ISIN: CH0118530366 Valor: A1C8PJ Listed: Regulated Unofficial Market in Berlin, Stuttgart; Open Market in Frankfurt ; SIX End of News EQS Group News Service -------------------------------------------------------------------------------- 495229 24.08.2016