Peach Property reports record profit
According to preliminary unaudited figures, Peach Property Group achieved a pre-tax result of CHF 109 million. This is almost twice as much as in the previous year.
The portfolio holder Peach Property Group has increased its previous year's result of CHF 56.9 million according to preliminary figures to 109 million by 90%. Growth drivers were a significant portfolio expansion, the further development of properties in the portfolio and improved services for tenants, the company says.
According to initial key data, rental income in 2019 increased by 31% year-on-year to around 39 million. This does not include the portfolio acquired in September 2019 with 3,672 apartments and an annual actual rent of around 14.5 million, Peach Property said. The closing of another portfolio purchased in late 2019 with 528 apartments and an actual rent of 2.4 million is expected to take place in the first quarter of this year. Including these apartments, the company now holds nearly 13,000 units with a leasable area of more than 866,000 sqm and a target rent of more than 65 million.
The market value of the real estate portfolio increased to around 1.1 billion at the end of 2019 (previous year: 0.7 billion). In addition to acquisitions, operational progress at existing properties also contributed to the increase, Peach Property said. Vacancy in the portfolio fell from 12.5% to 9.3%. After deducting apartments under redevelopment or slated for redevelopment, the effective vacancy rate is 2.0%, according to the company.
Net asset value at market values increased to around CHF 44 per share, up from CHF 36.70 a year earlier. According to the preliminary figures, the equity ratio at market values was 32% as of December 31, 2019, compared to 36.7% at the end of 2018.
For 2020, Peach Property expects actual rent to increase by at least 40% to over 55 million.
The final annual figures for 2019 are to be published on March 31, 2020. (ah)
