Peach Property posts record result

At CHF 57 million, earnings before taxes in the past fiscal year were around ten percent higher than in the previous year - and this despite negative currency effects due to the weakening of the euro against the Swiss franc amounting to 4.5 million. According to the company, the reasons for the profit increase were "operational progress in real estate" and the further expansion of the existing portfolio.

According to initial key data, actual rental income in 2018 rose by a good 80 percent year-on-year to just under 30 million, while annualized target rental income reportedly increased by 53 percent to 44 million. At the same time, the housing stock increased by more than 50 percent to more than 8,400 units. The vacancy rate fell from 16.8 to 13.6 percent.

The operating margin, which relates the direct operating costs of investment properties to total actual rental income, increased to 71 percent at the end of 2018 from 67 percent in the previous year, according to Peach Property. Operating costs increased at a significantly lower rate than the increase in revenues, and were just under seven percent above the previous year's level, the company added.

According to preliminary figures, the market value of the existing portfolio increased by a good 53 percent to 694 million in 2018 - not only due to the acquisitions, but also as a result of asset management, which was reflected in a year-on-year increase in the value of properties already part of the real estate portfolio of around six percent. According to Peach Property, the equity ratio (IFRS) is expected to be just under 37 percent, below the previous year's figure of 41.6 percent.

In the medium term, Peach Property Group intends to expand its portfolio to around 11,000 residential units. Over 50 million in cash and cash equivalents are available for this purpose as of the end of 2018. (ah)