Peach Property increases revenue and profit

According to Peach Property, earnings before taxes increased by a good CHF 101,000 thousand to around CHF 57 million in the 2018 financial year and earnings after taxes by CHF 81,000 thousand to CHF 45 million - despite a negative currency effect of CHF 4.5 million. The real estate company cites significantly higher rental income, successful asset management and the completion of the Wollerau Park development project as the reason for the increase in profit.

The existing portfolio grew by more than 50% to over 8,400 residential units in the reporting period, while the vacancy rate fell from 16.8% to 13.6%. As a result, actual rental income increased by around €82% to €30 million. According to Peach Property, the annualized target rental income amounted to approximately 44 million.

As a result of portfolio expansions and value-enhancing measures, the market value of the existing portfolio increased by EUR 531 thousand to EUR 694 million over the course of 2018, the report continues. The market value of the entire real estate portfolio increased by 44% to 747 million. The gross yield increased from 5.4% to 5.6%.

Dr. Thomas Wolfensberger, CEO of Peach Property Group, says that rental income is set to grow significantly again in the 2019 financial year. Further acquisitions are also planned, as the company intends to hold 11,000 residential units in its portfolio in the medium term. (ah)