Peach Property increases operating result
Peach Property Group AG reports an operating result of CHF 14.9 million for the first half of 2015, up 75 percent year-on-year. The company put net income at CHF 3.4 million, compared with CHF 4.4 million in the same period of the previous year. The decline was due to negative currency effects of CHF 2.6 million, higher financing costs as a result of the new portfolios and a value adjustment of a loan to the associated company Beach House AG.
As a result of the expansion of the existing portfolio and progress on existing investment properties, the market value of the total holdings increased to CHF 204 million at the end of June 2015, an increase in value of just over eleven percent compared with year-end 2014 and of around 31 percent as of June 30, 2014.
Investment properties now account for 61 percent of Peach Property Group's total portfolio, up from 38 percent at the end of December 2014. Overall, the company recorded income from the revaluation of investment properties of CHF 15.1 million in the first six months of 2015. The existing portfolio was expanded by 72 percent to over 1,500 apartments or to more than 160,000 square meters of leasable space through the acquisition of several properties north of Düsseldorf.
Peach Property Group's rental income rose by nine percent to CHF 4.2 million in the reporting period. Excluding the negative currency effects due to the removal of the minimum exchange rate of the Swiss franc against the euro in January of this year, there would have been an increase of 19 percent, according to Peach Propery.
Equity increased by just under eight percent to CHF 91.2 million as of the end of June 2015 compared to the end of 2014. The equity ratio according to IFRS was 25.5 percent, compared with 19.8 percent at the end of 2014. However, in addition to the profit in the first half of the year, a lower balance sheet total also contributed to this, according to Peach Property. This is because apartment completions and handovers in development projects significantly reduced the corresponding balance sheet items. (ah)
