Profit decline at Peach Property

Residential real estate portfolio holder Peach Property generated a pre-tax profit of CHF 25.4 million and a profit after tax of CHF 22.3 million in the first half of 2019. In the same period of the previous year, pre-tax profit amounted to CHF 30.7 million and profit after tax to CHF 26.5 million.

The real estate company has completed the Wollerau Park project and handed over the last apartments in the projects in Berlin and Rorschach - according to the company, this means that all projects except for the Peninsula in Wädenswil have been completed. As expected, this resulted in a significantly lower income volume of 7.3 million from the development area and a correspondingly lower contribution to earnings than in the previous year (21.9 million), Peach Property reports.

In the reporting period, the market value of the real estate portfolio reached a new high of around 793 million. Compared to the end of the first half of 2018, this represents an increase of over 35% and more than 6% at the end of 2018, according to Peach Property.

At 19.3 million, rental income was around 401TP3k higher than the previous year's figure of 13.8 million. Annualized target rents rose by 6% to 46.4 million compared to the end of 2018. According to the real estate company, the reasons for the increase were the expansion of the existing portfolio, progress in the refurbishment of apartments and the reduction in vacancies.

In the first six months of this year, Peach Property acquired 421 apartments and now holds 8,775 units with a total lettable area of around 600,000 sqm in its portfolio. Almost EUR 9 million was invested in modernizing the property portfolio and 376 apartments were renovated - more than twice as many units as in the same period last year.

The number of unlet apartments fell by around 11% to 940 units, with a vacancy rate of 10.7%. According to the company, 127 of the vacant apartments are reserved or already let, while 128 units are currently being refurbished. (ah)