Peach Property reports improved results
The completion of the "Living 108" project in Berlin and apartment handovers in the other projects in Berlin and Hamburg significantly reduced the share of the development business. In return, Peach expanded its existing portfolio in 2015: The share of existing properties in the overall portfolio is now over 70 percent and is thus close to the communicated strategic target of at least 75 percent.
On an annual basis, current rental income rose by twelve percent to 8.6 million, compared with 7.7 million in the previous year. Excluding the negative currency effects, the increase would have been around 20 percent, Peach reports.
In the second half of the year, Peach recognized impairment losses of around CHF 4.6 million on the Peninsula Wädenswil, Seelofts in Rorschach, yoo berlin and H36 development projects in Hamburg. In addition, the Am Zirkus project in Berlin burdened the income statement in the amount of 1.2 million. However, these charges are of a one-off nature and all relate to the development business, which has been reduced in the meantime anyway, according to Peach Property.
On the balance sheet side, Peach Property significantly increased its equity at the end of December 2015 compared with the previous year. The equity ratio (IFRS) was around 30 percent, compared with 19.8 percent at the end of December 2014. With total assets reduced at the same time, the increase resulted primarily from the successful placement of a hybrid bond with a volume of around CHF 25 million in December 2015.
Dr. Thomas Wolfensberger, CEO of Peach Property Group, says: "For 2016, we plan to acquire further good yielding portfolio properties with value enhancement potential, especially in the residential sector in Germany, as well as to further reduce our costs - both operationally and on the financing side."
Peach Property will announce the final financial figures and further information on business performance on March 15, 2016. (ah)
