Peach Property reports record profit
Peach Property Group has reported a pre-tax profit of CHF 259 million for the 2021 financial year. This is a new high in the company's history, according to the residential real estate investor.
Pre-tax profit of CHF259 million was up 69% year-on-year, and profit after tax was up 58% year-on-year to 201 million, Peach Property said. Funds from operations (FFO I) more than doubled year-on-year from 4.6 million to 11.1 million, according to the statement.
Net rental income at the German residential-focused company reached 108.6 million, also nearly double the previous year, Peach Property said. Annual like-for-like rental growth was 4.0%. The company cited acquisitions made in late 2020 and June 2021 as growth drivers. In early summer 2021, the company acquired 4,300 residential units and now holds 27,400 residential units in its portfolio. The market value of the total portfolio is 2.7 billion, up from 2.1 billion a year earlier, also a new record. Acquisitions and upgrades of the portfolio were equally responsible for the upgrades, Peach Property said.
The company expects further growth in the current financial year. It intends to continue "pursuing a value-creating acquisition strategy with a clear expectation of returns". Investments in the portfolio are also planned. The average rent in the portfolio is currently 5.73 euros/sqm, Peach Property sees a rent increase potential of 18% here compared to the market. For the 2022 financial year, the real estate company expects net rental income of 113 million to 117 million, while FFO I is expected to reach 18 million to 21 million. (ah)
