Peach Property triples profit
Peach Property Group generated a pre-tax profit of CHF 50 million in the 2017 financial year. In the previous year, the figure was 15.5 million.
According to preliminary, unaudited figures, Peach Property Group significantly increased both revenue and earnings in the 2017 financial year. Pre-tax profit is expected to come in at around CHF 50 million, the company says. This is more than three times as much as in the previous year, when Peach Property achieved a pre-tax profit of 15.5 million.
The reason for the increase was the strong expansion of the existing portfolio and asset management, which enabled significant increases in the value of the properties to be achieved. In addition, one-off effects, in particular currency gains of over 7 million, also had a positive impact on earnings.
Peach more than doubled its residential portfolio last year from 3,150 to around 7,000 units. The rentable living space was expanded to over 445,000 sqm (previous year: 250,000 sqm). According to initial key data, rental income increased by around 77 percent in 2017 to 16.3 million, the company reports (previous year: 9.2 million). Annualized target rental income as of the reporting date had risen by 109 percent to 34 million.
According to the company, the market value of the existing portfolio is around 450 million, while the overall portfolio had a market value of 520 million at the end of 2017. At the end of 2016, the figures were 226 million and 329 million respectively.
The cost base increased by around 25 percent. Equity rose by around 70 percent to over 250 million (previous year: 148 million) due to the 2017 profit, the placement of a convertible bond and a capital increase. The equity ratio is around 40 percent.
Peach Property expects significant growth in rents in 2018. In addition, the share of the development portfolio will continue to decline in the current year. In particular, the Wollerau Park development project near Zurich is to be completed and handed over to the buyers this year. Currently, more than 90 percent of the units have already been sold and others reserved, the company says.
Final financials are scheduled to be announced on March 20, 2018.
