Peach Property closes financial year with a loss
Devaluations and realized losses from a sale were the main factors behind a triple-digit million loss.
Peach Property Group AG, which specializes in German residential real estate and is domiciled in Switzerland, increased its rental income by 3% to 124 million euros in the 2024 financial year on the basis of unaudited figures; on a comparable basis, the increase amounted to 4%. The vacancy rate of the overall portfolio on a rental basis amounted to EUR 7.8TP3T following a large portfolio sale. At around EUR 16 million, funds from operations (FFO I) were "in line with expectations".
In addition to sales, the year was characterized by two capital increases. The issue proceeds amounted to CHF 126 million (around EUR 135 million). The portfolio sale of around 5,200 units resulted in a net liquidity inflow of around EUR 120 million. According to the information provided, this resulted in a significant increase in Group liquidity to over EUR 220 million at the end of 2024. At the same time, the loan-to-value (LTV) fell from 58 to 51 % despite slightly offsetting valuation effects. Some of the liquidity was already used in January to buy back EUR 127 million of the EUR 300 million bond maturing in November 2025.
100 million loss due to sales
With its sales, Peach realized a loss on disposal of around EUR 100 million. "In addition to the general market development, significant parts of the book value losses are due to current portfolio and risk discounts in view of the transaction size and the special features of the transaction structure with high implementation efficiency," writes the company. The existing portfolio was written down on a like-for-like basis by EUR 2 % to EUR 1.9 billion at the end of the year. The aforementioned negative valuation results were largely responsible for a pre-tax result of EUR -180 million. (aw)
