Peach Property Group AG

DGAP-Adhoc: Peach Property Group AG announces preliminary figures for financial year 2013

Peach Property Group AG   / Key word(s): Preliminary Results

31.01.2014 17:50

Release of an ad hoc announcement pursuant to Art. 53 KR

Press release

Peach Property Group AG announces preliminary figures for financial year

  - Operating income lifted by just under 20 percent to over CHF 56 million

  - Substantial increase in rental income by around 30 percent to around
    CHF 5.8 million; successful integration of newly acquired Gretag AG

  - Current operating costs down approximately 20 percent (CHF 3 million)
    despite integration of Primogon AG and Gretag AG

  - Sales volume reaches around CHF 86.3 million, surpassing the previous
    year's record figure

  - Significant extraordinary items push earnings in the red, as expected;
    due to the generally good company development the loss will however be
    smaller than expected

Zurich, 31 January 2014 - Peach Property Group AG, a leading property
investor and developer of high-quality residential real estate in the
German-speaking region of Europe, expects to report negative earnings
before taxes in the region of CHF 2 to 3 million as a result of significant
one-off expenses for financial year 2013, as previously announced. The
Company had reported earnings before taxes of CHF 1.9 million in the
previous year.

The 2013 financial year was dominated primarily by two events: Firstly, the
acquisition of property company Gretag AG in September 2013, which
considerably expanded Peach Property Group's investment portfolio in
Switzerland, substantially boosted its rental income and further
strengthened its earnings base. Gretag AG also owns extensive land
available for development, which will be developed by Peach Property Group
over the next few years.

Secondly, Peach Property Group took over construction management for the
'yoo berlin' and 'Am Zirkus 1' projects in Berlin and the 'H36' project in
Hamburg after the previous general contractors BSS
Beton-System-Schalungsbau GmbH in Berlin and Peter Holthausen GmbH & Co. KG
in Hamburg had filed for insolvency in July 2013 and May 2013,
respectively. This resulted in negative extraordinary items amounting to
around CHR 13 million, which pushed earnings into the red, as expected. A
further CHF 6 million in lost profits from the insolvencies will be
recognised after the buildings have been completed and handed over to the
buyers in 2014.

This was partially offset by the expected reduction of current operating
costs by more than 20 percent (CHF 3 million), a decrease achieved by Peach
Property Group despite the integration of both Primogon AG and Gretag AG.

According to preliminary figures, operating income increased by more than
20 percent year-on-year to around CHF 56 million. As expected, income from
property development fell substantially to just under CHF 6 million,
because no projects were completed in 2013. In contrast, rental income from
investment properties at CHF 5.8 million surpassed the previous year's
figure by around 30 percent. Property appreciation had a clearly positive
effect too: Effects from the initial valuation of properties following the
takeover of Gretag AG, the reclassification of the 'Mews' and 'Gardens'
properties in Wädenswil to investment properties and the operational
progress made in Dortmund resulted in a year-on-year increase in value of
around CHF 17 million (2012: CHF 10.4 million). Overall, the market value
of investment properties as at 31 December 2013 according to the
independent appraisal by Wüest & Partner doubled to around CHF 138 million
from the previous year. The market value of Peach Property Group's entire
property portfolio increased by some 37 percent to roughly CHF 541 million.

Apartments worth CHF 86.3 million were sold including authentication by a
notary public, which set a new sales record exceeding the previous year's
high figure of CHF 85 million. The annual target communicated earlier has
thus been met. Especially noteworthy is the new 'Living 108' construction
project, in which around 67 percent of the apartments were sold with
authentication by a notary public within just 8 months after construction
commenced. According to the asset reporting also published today, 87
percent of the apartments in the 'yoo berlin' project have been sold and 88
percent of the hotel and commercial space in the 'Am Zirkus 1' project have
been let. Purchase agreements for around 68 percent of the apartments in
the major Hamburg project have already been authenticated by a notary
public. The percentage of units sold in the Beach House project in
Wädenswil remained at 55 percent. Plans are to sell the remaining 8 units
shortly before or after the project is ready for occupancy in the third
quarter of 2014. The 'yoo wollerau' project has not been as successful as
hoped. It is currently being redesigned (refurbishment instead of a new
build, without external pool) and is expected to go on the market in a
revised version in summer of 2014.

Peach Property Group is optimistic about 2014: The three major projects in
Hamburg and Berlin are expected to be completed in the first half of the
year, which will result in a significant inflow of income. All other
projects will proceed as planned. Peach Property Group anticipates further
appreciation of its investment property portfolio and higher rental income
primarily due to the planned repositioning of the entire Gretag site in
Regendsdorf and the partial renovation of existing buildings.

Peach Property Group will publish final figures for the financial year 2013
and further details regarding its annual result on 13 March 2014 and
provide additional explanations during a media conference on that date.
After the publication of the annual financial statements of Peach Property
Group, Creditreform Rating AG will prepare a follow-up rating for the 6.6
percent corporate bond issued by the German subsidiary, Peach Property
Group (Deutschland) AG. The Swiss parent company, Peach German Properties
AG, which is wholly-owned by Peach Property Group AG, is the guarantor of
this bond and the payment obligations arising from it.

The Q4 2013 asset report is available the following link:

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher,
Chief Financial Officer
+41 (0) 44 485 50 00 |

Media Germany:
edicto GmbH, Axel Mühlhaus
+49 (0) 69 90 55 05 52 |

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 for more information.

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Document title: Press release Peach Property Group AG

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Language:               English
Company:                Peach Property Group AG
                        Seestrasse 346
                        8038 Zürich
Phone:                  +41 44 485 50 00
Fax:                    +41 44 485 50 11
ISIN:                   CH0118530366
Valor:                  A1C8PJ
Listed:                 Freiverkehr in Berlin, Stuttgart; Frankfurt in Open
                        Market ; SIX

End of Announcement                             EQS Group News-Service



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