Peach Property Group AG

EQS-Adhoc: Peach Property Group lifts earnings before taxes to CHF 15 million according to preliminary 2016 figures; residential portfolio reaches 3,150 units

EQS Group-Ad-hoc: Peach Property Group AG  / Key word(s): Preliminary Results
Peach Property Group lifts earnings before taxes to CHF 15 million according to
preliminary 2016 figures; residential portfolio reaches 3,150 units

01-Feb-2017 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
Press release

Peach Property Group lifts earnings before taxes to CHF 15 million according to
preliminary 2016 figures; residential portfolio reaches 3,150 units

- Earnings before taxes up from CHF 3.3 million to around CHF 15 million;

- Portfolio reaches 3,150 residential units; annualized target rental income
increases by 39 percent to CHF 16.3 million;

- Balance sheet bolstered: equity ratio (IFRS) up to over 40 percent;

- Operating costs cut once again;

- Positive outlook for 2016; continued focus on highly profitable residential
properties in German B-cities

Zürich, 1 February 2017 - Peach Property Group has lifted its profits
substantially in 2016 according to preliminary, unaudited figures. Earnings
before taxes in the past financial year are expected to total around CHF 15
million, a significant increase compared to the previous year's earnings of CHF
3.3 million. The sale of properties but also higher rental income and valuation
increases of investment properties have led to this marked increase. The figures
are proof of the successful further implementation of the strategy of
value-added portfolio management focusing on German residential properties. At
the same time, operating costs were cut once again in 2016 by around 8 percent,
and the financing structure was improved substantially.

According to preliminary figures, rental income increased in 2016 by around 7
percent to almost CHF 9.2 million despite properties being sold in the amount of
more than CHF 120 million. The increase in target rental income on an annualized
basis is significantly higher, up 39 percent year-on-year to CHF 16.3 million as
the newly acquired residential portfolio in Kaiserslautern has only been
consolidated since December 2016. This portfolio comprises 895 apartments and 12
commercial units. This new portfolio in Kaiserslautern alone will earn annual
rental income of around CHF 4.4 million.

The sale of the Gretag site in Switzerland and the commercial Erkrath Retail
property in Germany generated substantial funds in 2016. During the past
financial year these funds were largely invested in the acquisition of a total
of four residential portfolios in Germany, expanding the properties under
management by more than 1,600 apartments to a current total of around 3,150
units. This means that the portfolio has more than doubled compared to the end
of 2015, when it totaled 1,522 apartments. The total rental space in the
portfolio thus increased in 2016 to almost 250,000 square meters, compared to
around 164,000 square meters in the previous year. The market value of the
investment portfolio increased in 2016 to around CHF 225 million after CHF 219
million at the end of 2015.

Additional funds in the amount of CHF 25 million were raised through the full
placement of the hybrid bond listed on SIX Swiss Exchange (PEA15, ISIN
CH0305711647). This increase further reinforced the equity base. In addition,
the liabilities and financing costs were cut significantly in 2016 as a result
of the scheduled repayment of the corporate bond of the German subsidiary Peach
Property Group (Deutschland) AG, which bore interest of 6.6 percent per annum.
This bond had a nominal amount of EUR 50 million and its most recent outstanding
volume totaled EUR 46.7 million. The Group has repaid this amount from operating
funds without taking out any new borrowing. As a result of the bond repayment
and the sale of the Gretag and Erkrath Retail properties interest expense fell
by more than 20 percent during the course of 2016. The equity ratio (IFRS) as of
31 December 2016 increased substantially to over 40 percent compared to 31
percent at the end of the previous year. This ratio benefited from the positive
course of business, the increase in the hybrid bond and the reduction in
financial liabilities mentioned above.

Peach Property Group is confident that it will continue its profitable growth in
the current fiscal year 2017. The focus continues to be on expanding the
portfolio with residential properties in B cities in Germany, as well as
optimising and increasing the value of the existing investment properties. The
development project "Wollerau Park" in Switzerland will be completed in the
first quarter of 2018 and the proportion of development projects will further
decrease significantly. At present, almost 70 percent of the apartments have
been sold and construction work is making good progress.

Dr. Thomas Wolfensberger, Peach Property Group's CEO, commented: "We have
continued our successful transformation to become an established residential
real estate investment investor in Germany during the past fiscal year. At the
end of 2016 investment properties accounted for around 75 percent of our total
portfolio. At present we are taking a very close look at additional portfolio
acquisitions in Germany, and are expecting our investment portfolio to reach
around 5,000 apartments in the short to medium term. This will also lead to a
further substantial increase in rental income."

The final financials and additional information on the course of business will
be published on 21 March 2017.


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 more information,

Additional features:

Document title: Press Release
End of ad hoc announcement------------------------------------------------------

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 Swiss Exchange


End of Announcement EQS Group News Service


540533  01-Feb-2017 CET/CEST

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