Peach Property increases result and profit
Residential investor Peach Property Group generated a post-tax profit of CHF 26.5 million in the first half of 2018. This is 66% more than in the same period of the previous year, when the profit amounted to CHF 16.0 million.
The operating result (EBITDA) even rose by 72 percent to 37.1 million (previous year: 21.5 million). Peach Property cites "the expansion of the portfolio, value-enhancing measures in the real estate portfolio, the improvement in the letting situation and an attractive profit contribution from the development sector" as the reasons for the growth. Due to the devaluation of the Swiss franc against the euro, the financial result for the reporting period included negative currency effects of around 2.2 million.
Actual rental income doubled to 13.8 million within the space of a year, primarily due to the numerous recent acquisitions of residential properties. As at June 30, 2018, the real estate company's portfolio amounted to 6,436 residential units. According to Peach Property, this corresponds to an increase of around 2,200 units compared to the end of the first half of 2017. The transfer of ownership of a further 1,900 apartments already acquired will take place during the second half of the year, bringing the Group's portfolio to just under 8,400 units with a rentable living space of around 540,000 sqm. This will increase annualized target rental income to 44.3 million (previous year: 34.3 million).
Portfolio value increases, further acquisitions planned
The market value of the existing portfolio amounted to around EUR 530 million as at June 30, 2018 (+EUR 171 thousand compared to December 31, 2017). The occupancy rate has risen from 83.2% to 85.5% since the end of 2017. Excluding the refurbishment properties in Neukirchen-Vluyn and Fassberg, the occupancy rate stands at 91%, Peach Property adds.
Construction work on the Wollerau Park project near Zurich (46 apartments and 5 commercial units) was completed in the first half of 2018. With the exception of one apartment, all units have either been sold or reserved, according to Peach. This resulted in a profit contribution of 5.6 million for the reporting period, which corresponds to 26.5 percent of the sales proceeds generated.
Peach Property's equity amounted to 316.6 million as at June 30, 2018, which corresponds to an equity ratio of 45.9%. Based on market values, the equity ratio was 46.8%. Peach Property Group had cash and cash equivalents of 91.6 million at the end of the first half of 2018.
For the year as a whole, the real estate company expects further growth in rental income from the integration of the residential properties already notarized and from "further progress with existing properties". The real estate portfolio is to be expanded through further acquisitions, with a continued focus on residential portfolios in German B cities, according to the company. (ah)
