Peach Property Group AG / Key word(s): Half Year Results
Release of an ad hoc announcement pursuant to Art. 53 KR
Peach Property Group AG posts strong earnings for first
six month period of 2013
- Significant increase of net profit to CHF 3.7 million;
total profit for 2012 already exceeded
- Operating income up by 64 percent to CHF 27.1 Million
- Net Asset Value (NAV) based on market values of CHF 132.1 million
- Portfolio market value up by 14 percent to CHF 449 Million
- Sales volume of CHF 42 million (authenticated)
- Positive outlook for the full financial year
Zurich, 22 August 2013 - Peach Property Group AG, a leading property
investor and developer of high-quality residential real estate in the
German-speaking region of Europe, today announced strong earnings for the
first six-month period of 2013. Pre-tax profit of CHF 5.2 million is
significantly higher than the CHF 0.6 million realised in the previous half
year or the CHF 1.9 million realised for the full financial year 2012. Net
profit for the period of CHF 3.7 million also exceeds both the net profit
of CHF 0.1 million for the prior-year period and the net profit of CHF 0.9
million for the full financial year 2012.
Operating income increased by 64 percent to CHF 27.1 million in the first
half of 2013. In particular, the increase in income of development and
construction mana-gement services from CHF 0.1 million to CHF 9.7 million
had a positive impact. In addition, rental income of investment properties
increased by 20 percent to CHF 2.5 million after CHF 2.1 million in the
first half of 2012. The efficiency programme was implemented as planned and
operating costs were reduced by more than CHF 1.5 million, despite the
acquisition of the development service provider Primogon AG.
Investment properties - operational progress and appreciation in value
In the first half of 2013, the portfolio of investment properties was
expanded to 535 apartments from 519 apartments at the end of 2012 after the
two Mews properties on the 'Peninsula' in Wädenswil were added to the
portfolio due to their good structural condition and strong market demand,
increasing the rental income by around CHF 0.3 million per year. This
reclassification also resulted in a valuation gain of just under CHF 4.0
million. In Erkrath near Düsseldorf, planning began to add four additional
floors to the existing retail property. The first operating steps for the
expansion, which shall be implemented by 2018, have already been taken. The
expected higher cash inflows associated with this expansion of the property
led to a value increase of around CHF 3.5 million.
Planning for the expansion and refurbishment of the property Dortmund RS
173 also progressed: A very detailed preconstruction enquiry was filed and
has been approved meanwhile; the application for a building permit is
expected to be submitted in the third quarter of 2013. Operational progress
was also achieved from the reduction in vacancies at the investment
properties in Munster and at Portfolio 'Erkrath Wohnen'. Overall, the
vacancy rate remained stable at 5.5 percent due to the currently elevated
vacancy rate of the newly transferred Mews properties.
Portfolio market value up by 14 percent to CHF 449 million
The market value of Peach Property Group's entire property portfolio rose
to CHF 449 million and was thus 14 percent higher than at the end of 2012
based on the independent appraisal of the property portfolio by Wüest &
Partner at the end of June 2013. The Net Asset Value (NAV) based on market
values rose by CHF 2.4 million to CHF 132.1 million since December 2012.
Sales volume of around CHF 42 million
In the first half of 2013, publicly authenticated purchase agreements were
signed for apartments with a market value of just under CHF 42 million.
Thus, Peach Property Group is on track to reach its annual sales target.
CHF 3.2 million of this amount was recorded in the profit and loss
statement of the reporting period, while the majority will only impact
earnings over the course of 2013 and 2014.
At the end of June 2013, Peach Property Group's cash and cash equivalents
increased to CHF 42.2 million from CHF 32.4 million at the end of 2012. CHF
37.3 million of this amount represents down payments from buyers purchasing
apartments under authenticated agreements. At CHF 98.0 million, equity is
CHF 5.3 million higher at 30 June 2013 than at 31 December 2012.
Accordingly, the equity ratio based on IFRS values amounts to 24 percent,
the equity ratio based on market values stands at 30 percent.
Positive outlook for 2013
Peach Property Group is confident of continuing its strong performance in
the second half year of 2013. The major project 'Harvestehuderweg 36' in
Hamburg is expected to be finalized at the beginning of the fourth quarter.
In Berlin the direct placement of key lots (e.g. facade) has been achieved
after the insolvency of the previous general contractor BSS. With the
direct awarding of the further lots in progress, the two projects 'yoo
berlin' and 'Am Zirkus 1' should also be completed at the end of
2013/beginning of 2014. At these dates significant returns on investment
are expected. The other projects that are currently under construction or
distribution are also to be advanced over the course of the year. In
addition to the 'yoo wollerau' and 'Peninsula Beach House' projects in
Switzerland, this includes the new 'Living 108' project in Berlin with an
expected sales volume of around CHF 44 million. Over 30 percent of the
planned 128 high quality apartments have already been authenticated by a
notary public, and an additional 15 percent have been reserved.
Construction should begin in July and is planned to be completed in spring
In addition, Peach Property Group plans to acquire new and attractive
properties, for which the negotiations are already well under way. The
investment portfolio is to be further optimised and the positive operating
performance shall be enhanced.
Thomas Wolfensberger, CEO of Peach Property Group AG, states: 'We are very
satisfied with the performance in the first six months of 2013. We have
made crucial progress in the development projects and portfolio properties,
thereby creating the basis for further growth. For example, three major
projects in Berlin and Hamburg with a sales volume of CHF 285 million will
be completed shortly. We are particularly pleased with the significant
increase in the net profit in the first half of 2013, which already exceeds
our earnings for the full financial year 2012.'
Key figures of Peach Property Group AG (consolidated)
30.06.2013 31.12.2012 30.06.2012
Income CHF thsd. 27 067 48 569 16 463
EBIT CHF thsd. 6 722 5 240 2 951
EBT CHF thsd. 5 245 1 888 617
Net profit for the period CHF thsd. 3 746 894 116
NAV IFRS CHF thsd. 97 973 92 684 92 355
NAV market value 1 CHF thsd. 132 143 129 738 133 150
Equity CHF thsd. 97 973 92 684 92 355
Equity ratio (IFRS) in % 24.4% 26.8% 29,3%
Equity ratio (NAV market value 1) in % 30.3% 33,9% 37,4%
Market value, property portfolio CHF thsd. 448 724 393 007 364 500
Employees 34 34 32
1 NAV market value calculated on the basis of the Wüest & Partner valuation
taking into account deferred taxes and the share of joint ventures and
The 2013 Half-yearly Report is available on the company's website at
Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 (0) 44 485 50 00 | email@example.com
edicto GmbH, Axel Mühlhaus
+49 (0) 69 90 55 05 52 | firstname.lastname@example.org
About Peach Property Group
Peach Property Group AG one of the leading developers 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 exclusive 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 also has a branch
office in Cologne. The company's shares are listed on SIX Swiss Exchange
(PEAN, ISIN CH0118530366).
Visit www.peachproperty.com for more information.
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Company: Peach Property Group AG
Phone: +41 44 485 50 00
Fax: +41 44 485 50 11
Listed: Freiverkehr in Berlin, Stuttgart; Frankfurt in Open
Market ; SIX
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