Peach Property returns to profit
According to final figures, Peach Property Group AG significantly improved its profit in the 2015 financial year. Earnings before taxes (EBT) increased to CHF 3.3 million - in the previous year, the company still had to record a loss of 8.7 million.
The result was significantly higher than initially forecast, as the purchase offers for the Gretag site significantly exceeded original expectations, Peach Property reports. The result also includes negative exchange rate effects of around CHF 2.4 million after the SNB abandoned the exchange rate floor against the euro in January 2015 and the euro subsequently depreciated sharply. Profit after tax improved to 1.2 million.
The further expansion of the existing portfolio, including the purchase of 636 apartments in North Rhine-Westphalia, increased the market value of the holdings by around 20 percent to CHF 218.7 million. Rental income increased by twelve percent year-on-year to 8.6 million (in local currency by 20%).
Development business further reduced
With the completion of the "Living 108" project and the handover of apartments in other projects, Peach Property has significantly reduced the share of development business. Development projects now account for around 30 percent of the total portfolio. Income from development properties of CHF 75.5 million was generated from handovers in 2015 (previous year: 126.7 million). Operating income decreased from 194.6 million in the previous year to 112.6 million.
Peach Property significantly increased its equity at the end of 2015 thanks to the increase in earnings and the placement of a CHF 25 million hybrid bond. At CHF 114 million, it exceeded the previous year's figure by a good 29 million. The equity ratio according to IFRS is 31.3 percent (previous year: 19.8%).
Bernd Hasse leaves management
As part of the realignment, Bernd Hasse will resign from his position as a member of the Management Board of Peach Property Group (Deutschland) AG and a member of the Executive Board of Peach Property Group at the end of April 2016 and leave the company.
His duties will be performed by a newly established management team in Cologne, which will report directly to the Executive Board. The management team will thus consist of three persons in the future, the CEO Dr. Thomas Wolfensberger, the CFO Dr. Marcel Kucher and the Head of Sales and Marketing Dr. Andreas Steinbauer. (ah)
