Peach Property reports record profit for 2019
Portfolio holder Peach Property Group posted an after-tax profit of CHF 91 million in the 2019 financial year, according to final figures. In the previous year, the figure was 45.3 million.
Peach Property put pre-tax profit under IFRS at CHF 109.7 million, up 93%, almost double the previous year's 56.9 million. The after-tax profit of 91.0 million is the highest profit in the company's history, the company said.
At the end of fiscal 2019, the company's real estate portfolio comprised 12,424 residential units (PY: 8,442). The significant increase is mainly due to the Purchase of a portfolio of 3,672 apartments at various locations in North Rhine-Westphalia as well as in Kaiserslautern and Bielefeld attributable to. It generates annual actual rental income of 14.5 million, which, however, is not yet included in the 2019 rental income as the transfer of ownership did not take place until December 31, 2019. In the last fiscal year, Peach Property recorded actual rental income of 38.9 million (PY: 29.6 million, +31%). With the transfer of ownership in the first quarter of this year, the real estate company acquired another portfolio of 528 residential units. As a result, Peach Property now holds around 13,000 residential units with a total area of 864,000 sqm in its portfolio.
The market value of the real estate portfolio was CHF 1.1 billion as of December 31, 2019 (previous year: CHF 0.7 billion). According to the company, both the acquisitions and value-enhancing work in the portfolio contributed to the positive performance. Among other things, rental income on a like-for-like basis increased by 4.5% over the course of the year and the vacancy rate of apartments offered on the market fell to 2.3%, the company said. The total vacancy rate was 9.3% and also included a rental reserve, which was being continuously reduced through ongoing refurbishments.
Net asset value (NAV) at market values was 401.3 million at year-end 2019, up 28% from 314.1 million a year earlier. NAV per share increased from CHF 36.36 to CHF 45.11. The Group's equity ratio was 32.9% based on market values and 32.3% according to IFRS. In the prior year, it was 37.7% and 36.7%, respectively.
For 2020, Peach Property expects rising rental income and a positive further development of the real estate portfolio. The company also intends to take advantage of "market opportunities as they arise". There are currently no negative effects of the Corona crisis to be felt: rental income, occupancy rates and rent losses are on target. The company also believes it is well prepared for a temporary slowdown in the German economy. In the residential real estate sector, which is in any case less susceptible to economic cycles, the company offers an attractive product: Currently, the monthly net cold rent per square meter in the portfolio averages 5.37 euros and is thus in the medium to lower rent segment. The rents are still significantly below the average market level in the respective locations. (ah)
