Peach Property Group AG

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

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

-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

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)

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


Media, investors and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief
Financial Officer

+41 44 485 50 00 |

Media Germany

edicto GmbH, Axel Mühlhaus, Peggy Kropmanns

+49 (0) 69 90 55 05 52 |

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

End of ad hoc announcement
Additional features:

Document title: Press Release

24.08.2016 News transmitted by Tensid EQS AG.


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
495229  24.08.2016 

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