Peach Property Group AG

EQS-Adhoc: Preliminary figures show marked improvement in Peach Property Group AG earnings in 2015

EQS Group-Ad-hoc: Peach Property Group AG  / Key word(s): Preliminary Results
Preliminary figures show marked improvement in Peach Property Group AG earnings
in 2015

01.02.2016 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.

Press release

Preliminary figures show marked improvement in Peach Property Group AG earnings
in 2015

-EBT of around CHF 1 million expected

-Rental income up 12 percent to CHF 8.6 million (+20 percent excluding exchange
rate effects)

-Share of investment properties in overall portfolio rises to over 70 percent

-Equity ratio increases sharply to over 30 percent

-Positive outlook for 2016

Zurich, 1 February 2016 - Preliminary, unaudited figures show that Peach
Property Group AG, an investor in residential and commercial real estate,
recorded a noticeable year-on-year improvement in earnings in the 2015 financial
year, as expected. Thanks to the successful expansion of its portfolio and
advancements in existing investment properties, rental income was up
substantially on the prior-year figure. A sizeable reduction in operating costs
was recorded at the same time. The completion of the "Living 108" project in
Berlin and the handover of apartments in the other projects in Berlin and
Hamburg appreciably reduced the proportion of developments in the Group's
portfolio, further improving its risk profile.

In 2015, the Peach Property Group expanded its investment portfolio and achieved
major letting successes. Investment properties now make up more than 70 percent
of the overall portfolio, which is close to the strategic objective of at least
75 percent communicated by the Group. Peach Property's annualised current rental
income rose by around 12 percent to CHF 8.6 million, up from CHF 7.7 million in
the previous year. Excluding the negative exchange rate effects, current rental
income would have climbed around 20 percent. Increasing its focus on investment
properties also enabled Peach Property Group to lower its operating costs -
particularly staff costs - significantly in the past financial year by over CHF
2 million to around CHF 10 million. Now that the cost reduction programme
launched in spring 2015 has been fully in force since the fourth quarter of
2015, this effect will continue in 2016.

In the second half of the year, impairment losses of around CHF 4.6 million were
charged for the development projects Peninsula Wädenswil, Seelofts in Rorschach,
yoo berlin and H36 in Hamburg. Furthermore, costs incurred in connection with
the Am Zirkus project had a negative impact of around CHF 1.2 million on the
income statement. These charges are all of a one-off nature and they all concern
the development business, which is has now been substantially reduced.

In spite of the extraordinary items, Peach Property Group is forecasting
positive earnings before taxes (EBT) of around CHF 1 million.

Peach Property's balance sheet at the end of December 2015 showed a significant
increase in equity year-on-year. The equity ratio in accordance with IFRSs stood
at around 30 percent compared with 19.8 percent at the end of December 2014, and
25.5 percent at the end of the first half of 2015. Further to the reduction of
the overall balance sheet and hence risk positions, the increase was due in
particular to the successful placement of a hybrid bond in December 2015 with a
volume of around CHF 25 million. This created additional financial latitude for
Peach to refinance its liabilities and finance its further growth.

The Peach Property Group is confident that its business will continue to develop
encouragingly in the 2016 financial year. The basis for this will be provided by
continued successful management of the remaining development projects and an
active management of the investment portfolio in the residential property sector
with a view to value appreciation, in order to further increase current revenue
through rental income.

Dr. Thomas Wolfensberger, CEO of Peach Property Group, comments: "We made good
progress in 2015 with the expansion of the investment portfolio and also
significantly reduced our risk exposure by completing the Living 108 project in
Berlin and handing over further apartments. The Group has also set a further key
milestone with the progress it has made in planning the construction of around
650 rental apartments on the Gretag site in Regensdorf. We recorded a
perceptible increase in rental income as projected and achieved a noticeable
improvement in earnings for the year as a whole. Our equity ratio of 30 percent
provides a solid basis for the future. For 2016, we are planning to acquire
additional investment properties that generate good yields and have appreciation
potential, mainly in Germany's residential property sector and also to further
reduce our costs - for both our operations and also our financing activities."

The final key financial indicators and further information on the course of
business will be announced on 15 March 2016.

Detail regarding the portfolio are available in the Asset Reporting document (in
German) for the fourth quarter of 2015 that was published today:http://investore


Media, investors and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief
Financial Officer
+41 44 485 50 00 |

German media

edicto GmbH, Axel Mühlhaus, Peggy Kropmanns
+49 (0) 69 90 55 05 52 |

About Peach Property Group AG

Peach Property Group AG is a leading 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 more information, see

End of ad hoc announcement

Additional features:

Document title: Press Release

01.02.2016 News transmitted by EQS Schweiz AG. - news archive:

The issuer is responsible for the contents of the release.

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:   Regulated Unofficial Market in Berlin, Stuttgart; Open Market in
Frankfurt ; SIX

End of News EQS Group News Service
433393  01.02.2016 

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