- Operating income lifted considerably by around 150 per cent to just under
CHF 49 million - Market value of property portfolio boosted by around 35 per cent
- Rental income from investment properties increased to around CHF 4.3 million
- Sales volume expanded significantly
- Profit expected despite extraordinary items
Zurich, 31 January 2013 – Peach Property Group AG, a leading developer of top-quality residential properties in the German-speaking region of Europe, today announced preliminary figures for a successful 2012 financial year. The year was dominated by three factors: the development and expansion of the Group’s portfolio, a strong increase in sales volume and a stabilisation of earnings according to plan on the back of current rental income from investment properties.
Based on independent expert valuations, the market value of the Group’s property portfolio rose by more than 35 per cent to just under CHF 400 million in the reporting year. This increase was driven both by the successful evolution of existing projects and the acquisition of attractive new properties. Around 15 per cent of the portfolio is made up of investment properties that generate rental income in Switzerland and Germany; development properties in the top-end segment of the market account for around 85 per cent. For details, please see Asset Reporting published today (www.peachproperty.com).
According to preliminary figures, the operating income of Peach Property Group AG in the financial year just ended was approximately CHF 49 million – up just over 150 per cent on the previous year’s figure. As planned, this increase was due to the development of properties as well as rental income from investment properties and their appreciation in value. The distribution of income reflects the strategic combination of development and investment properties implemented in line with the Peach Property Group’s business model.
In the reporting year, the first construction phase of the “Harvestehuder Weg 36” (A43) project in Hamburg was completed, and 10 of the 13 apartments were handed over to their owners. The “Schooren des Alpes” project in Kappl near Ischgl was also completed on schedule; 9 of the 12 apartments were handed over to their owners. The Group also acquired two attractive new development projects – “Candy Factory” in Wollerau near Zurich and “Living 108” in Berlin – and further advanced its existing developments according to schedule. The sales volume increased from around
CHF 50 million in the previous year to a total of CHF 85 million, of which around CHF 75 million will not be reflected in earnings until 2013 and 2014.
Income from the lease of investment properties rose from CHF 0.7 million in 2011 to CHF 4.3 million because the portfolio in Munster generated rental income for the entire year for the first time and the Group acquired a second large portfolio of investment properties in Erkrath near Düsseldorf in early 2012. These acquisitions, the purchase of properties on Rheinische Strasse in Dortmund as well as the reduction in the vacancy rate and progress made in operating the investment portfolio in Munster also resulted in income from a net change in fair value.
During the 2012 financial year, Peach Property Group AG made significant advance investments for new projects in line with its growth strategy. Added to this were one-time extraordinary charges of around EUR 0.7 million (CHF 0.84 million) for the IPO of the Group’s German subsidiary, which was initially planned for last autumn but was then postponed. Operational efficiency gains enabled the Group to reduce significant cost items such as personnel expenses. Overall, Peach Property Group AG is expecting a profit for the 2012 financial year. This means that the positive trend witnessed in the first half of 2012 continued in the year’s second half – although the lion’s share of revenue from the large-scale projects in Berlin and Hamburg will only be reflected in the 2013 financial year.
Given that the “yoo berlin”/“Am Zirkus 1” and “Harvestehuder Weg 36” projects in Hamburg are progressing according to plan and taking into account the new projects in Germany and Switzerland, Peach Property Group AG is optimistic with regards to 2013.
Peach Property Group AG will publish its complete annual results including final figures on 4 April 2013 and present detailed information at a media and analysts’ conference.
Contacts
Investors, analysts, media:
Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 44 485 50 00
investors@peachproperty.com
Link for downloading the “Asset Reporting for the 4th quarter of 2012”
http://investoren.peachproperty.com/websites/peachproperty/English/5300/asset-reporting.html
About Peach Property Group
Peach Property Group AG is a leading developer 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 high-quality residential properties, but also the management of investment properties for the purpose of generating consistent annual operating income.
Peach Property Group AG is headquartered in Zurich and also has a branch office in Cologne. Peach Property Group AG is listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366).
Visit www.peachproperty.com for further information.