Peach Property with profit increase
Peach Property Group significantly increased its pre-tax profit in the 2016 financial year: According to preliminary, unaudited figures, it rose from CHF 3.3 million in the previous year to around CHF 15 million.
This significant increase was due to property sales, but also to higher rental income and increases in the value of existing properties, according to Peach Property.
According to initial key data, rental income increased by around seven percent to just under CHF 9.2 million in 2016 despite property sales totaling over CHF 120 million. The increase in target rental income on an annualized basis is significantly higher at plus 39 percent year-on-year to 16.3 million, as the newly acquired residential portfolio in Kaiserslautern with 895 apartments and twelve commercial units has only been consolidated since December 2016. This new portfolio alone will generate annual rental income of around 4.4 million, according to Peach Propery.
The funds generated by the Sale of the Gretag site in Regensdorf and the Erkrath Retail commercial property in Germany, Peach Property used the proceeds to acquire a total of four residential portfolios in Germany. The portfolio was thus expanded by a good 1,600 apartments to a current total of around 3,150 units. This represents more than a doubling compared with the 1,522 apartments at the end of 2015. The total leasable area in the portfolio rose to just under 250,000 square meters in 2016 (previous year: 164,000 square meters). The market value of the existing portfolio increased to around CHF 225 million in 2016 - compared with CHF 219 million at year-end 2015.
Portfolio to be expanded
For the current financial year, Peach Property intends to continue to focus on expanding its portfolio with residential properties in German B-cities. In addition, the focus will be on optimizing and increasing the value of existing income properties. At the end of 2016, existing properties accounted for around 75 percent of the total portfolio. In the short to medium term, Peach Property aims to reach a portfolio of around 5,000 apartments.
At the beginning of 2018, it is expected that the "Wollerau Park" development project currently under construction completed, and the proportion of development projects will again decrease significantly. Currently, according to Peach Property, just under 70 percent of the apartments have been sold.
The final financial figures and further information on business performance will be announced on March 21, 2017.
