- Net asset value (NAV) at market values increased to CHF 130.9 million
- Operating income lifted almost 147 percent to CHF 48.6 million
- Earnings before taxes of CHF 2.0 million
- Sales volume boosted by nearly 70 percent to over CHF 85 million
- Portfolio value up CHF 100 million to CHF 393 million
- Further profitable growth expected for 2013
Zurich, 4 April 2013 – Peach Property Group AG, a leading developer of top-quality residential properties in the German-speaking region of Europe, continued the strong performance shown in the first six months in the full 2012 financial year and, according to the figures published today, recorded a significant increase in both operating income and profit. In the reporting period, real estate projects in Germany and Austria were completed on schedule, ongoing projects were successfully advanced and the company’s sales performance received a substantial boost. Additionally, new, attractive development projects in Switzerland and Germany were secured. To solidify income, the company’s existing investment portfolio was expanded by the addition of two portfolios in Germany, which considerably increased rental income. The company is optimistic that it will be able to sustain its profitable growth in the 2013 financial year.
This successful development is also reflected in the net asset value (NAV) at market values. By the end of 2012, based on the independent market valuation of the projects by Wüest & Partner, this important key indicator for Peach Property Group had risen to CHF 130.9 million, or CHF 26.79 per share.
Portfolio value of the investment properties almost doubled
On the basis of Wüest & Partner’s valuation, the market value of Peach Property Group’s entire property portfolio increased by around 34 percent or CHF 100 million to CHF 393 million as at 31 December 2012. Of this figure, CHF 329.1 million or 84 percent is attributable to development properties and CHF 63.9 million or 16 percent to investment properties. The market value of the development properties increased by 22 percent compared to the previous year, while the market value of the investment properties rose by 196 percent, mainly due to acquisitions.
High increase in revenue from development and investment properties
At CHF 48.6 million, operating income was up 147 percent on the prior-year figure, driven by the substantial increase in income from the development of properties plus higher rental income from investment properties and their appreciation. In addition, operating efficiency was increased further and major expense items, for example personnel expenses, were reduced.
Income from the development of properties totalled CHF 21.8 million in 2012, up from EUR 8.5 million the year before. This was mainly due to apartment hand-overs from two projects completed in 2012: „A43“ in Hamburg and „Schooren des Alpes“ in Kappl near Ischgl. Income from the lease of investment properties climbed to CHF 4.4 million from CHF 0.7 million in 2011 as a result of acquisitions. The company’s investment portfolio was expanded at the beginning of 2012 to include a second high-yield portfolio in Erkrath near Düsseldorf and in September 2012 by adding two properties on Rheinische Strasse in Dortmund. Through these acquisitions in 2012, the reduction of the vacancy rate and operational improvements in the investment portfolio in Munster, income from the revaluation of the investment properties rose to CHF 10.9 million, up from CHF 3.3 million in the previous year.
Substantial increase in net profit
Despite one-time extraordinary charges of approximately CHF 0.8 million for the IPO of the German subsidiary initially planned for autumn 2012 and then cancelled, as well as sales and marketing investments of CHF 2.9 million for projects that will not be invoiced until the coming financial years, Peach Property Group generated, as expected, a positive result in the reporting period. Earnings before taxes (EBT) amounted to CHF 2.0 million after a loss of CHF 14.7 million in 2011. At CHF 0.9 million, the net profit was also substantially higher than in the previous year, when the company had posted a net loss of CHF 11.1 million. This results in earnings per share of CHF 0.19 for 2012 following a loss per share of CHF 2.31 in 2011.
Record sales volume
In 2012, Peach Property Group lifted its sales volume to over CHF 85 million, an increase of 70 percent year on year. Around CHF 75 million of this result will not affect earnings until 2013 and 2014 because under IFRS revenue is only recognised once ownership of the apartments has been transferred.
At the end of the reporting period, Peach Property Group held cash and cash equivalents of CHF 32.4 million, up from CHF 14.4 million in the previous year. Of this figure, CHF 19.0 million (previous year: CHF 8.0 million) arose from advance payments of customers and is therefore contractually bound.
At the end of 2012, equity amounted to CHF 93.8 million. This represents an equity ratio of 27 percent. The equity ratio based on the NAV market value was 34 percent.
Positive summary of the 2012 financial year
CEO Thomas Wolfensberger on the 2012 financial year: „2012 was a year of great progress for Peach Property Group. Sales reached a record level of CHF 85 million. At the same time, we succeeded in taking important steps to secure the future of our company by acquiring new projects, increasing sustainable income and focusing on operational excellence. We will reap the rewards of this strategy in the coming years. Among the things we are looking forward to this year are completing the major „yoo berlin“, „Am Zirkus 1“ and „Harvestehuderweg 36″ projects and launching new innovative products on the market.“
Outlook for 2013
Peach Property Group is confident of continuing its strong performance in 2013. The company’s strategic focus lies in the expansion of its project base in a manner that adds value. In line with this strategy, the company plans to use the profit from the 2012 financial year for further expansion instead of a dividend payment. Negotiations about new projects are already well advanced. Peach Property Group firmly believes that this will make a sizeable contribution to increasing the shareholder value and thus enable shareholders to participate directly in lifting the company’s enterprise value.
In 2013, the projects under construction in Berlin, Hamburg and Wädenswil on Lake Zurich will be driven forward. In addition, it is planned to further expand the company’s investment portfolio to stabilise the current income. Several promising properties and plots in Switzerland and Germany are currently being evaluated.
Peach Property Group AG will be holding a media conference on the results for 2012 today at 8.30 am at the ConventionPoint conference centre of SIX, Selnaustrasse 30, 8001 Zurich.
The 2012 Annual Report is available in German on the company’s website at
Contacts:
Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 44 485 50 00 | investors@peachproperty.com
Media Germany
Edicto GmbH, Axel Mühlhaus
+49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de
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 the 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 the SIX Swiss Exchange (PEAN, ISIN CH0118530366).
Visit www.peachproperty.com for more information.