Peach Property Group AG — Earnings Release 2010

Apr 6, 2011

News Details

Ad-hoc | 6 April 2011 07:00

Peach Property Group brings 2010 financial year to successful close

Peach Property Group AG / Key word(s): Final Results

06.04.2011 07:00

Release of an ad hoc announcement pursuant to Art. 72 KR

Media release
Peach Property Group brings 2010 financial year to successful close

• Portfolio market value reaches CHF 264.5 million

• Net income of CHF 18.0 million corresponds to a diluted profit of CHF
  6.03 per share

• Operating income of CHF 84.4 million far exceeds previous year

• Progress according to schedule with projects selling successfully

• CHF 1.00 dividend proposed, amounting to a yield of 3.2%

Zurich, 6 April 2011 - Peach Property Group Ltd, a leading developer of
high-quality residential property in German-speaking Europe, has recorded a
total operating income of CHF 84.4 million for the 2010 financial year,
compared with CHF 28.5 million the previous year. The main factors in the
leap in operating income are proceeds from property development in Germany,
amounting to CHF 44.9 million, and other operating income of CHF 37.2
million.

Reflecting this much higher operating income, operating profit (EBIT) also
increased by 20% in 2010, amounting to CHF 21.3 million (2009: CHF 17.8
million). Despite a negative impact of CHF -2.9 million attributable to the
Swiss franc's appreciation against the euro, Peach Property Group Ltd
recorded a net income of CHF 18.0 million in the 2010 financial year: a
result level with the previous year and representing a diluted profit of
CHF 6.03 per share.

Portfolio value tops 250-million mark
According to independent property appraiser Wüest & Partner, the market
value of the portfolio managed by Peach Property Group Ltd stood at CHF
264.5 million at 31 December 2010. Of this, CHF 149.5 million was
attributable to projects in Germany, accounting for 56.5% of the total.
Projects in Switzerland are valued at CHF 110.2 million (41.7%), while CHF
4.8 million is attributable to projects in Austria (1.8%). The three
largest projects are: 'Harvestehuder Weg 36' in Hamburg, with a year-end
value of CHF 62.5 million; 'Peninsula Beach House' in Wädenswil, worth CHF
55.1 million; and 'yoo berlin' in Berlin, with a year-end value of CHF 45.5
million.

According to this independent estimate of the development portfolio's
market value, Peach Property Group Ltd's net asset value (NAV) at the end
of 2010 amounted to CHF 146.5 million. Based on IFRS principles, which
require valuations of properties at procurement or production cost, the
company's NAV amounts to CHF 112.5 million, up from CHF 34.9 million at the
end of 2009.

Sound equity base
The IPO in November 2010 resulted in an inflow of CHF 55.2 million to Peach
Property Group Ltd. One use of these proceeds has been to reduce long-term
borrowing which, in turn, reduces financial expenses. As of 31 December
2010, shareholders' equity rose to CHF 112.5 million (previous year: CHF
34.8 million). As of 31 December 2010, Peach Property Group Ltd has an
equity ratio of 53%, or 57% based on market NAV.

Development projects progressing according to plan
Peach Property Group Ltd made excellent progress with its various
development projects in the 2010 financial year. In Switzerland, mention
should be made of initial sales of the exclusive condominiums at 'Peninsula
Beach House', which boast a lakeside position on Lake Zurich in Wädenswil.
Total target sales volume for the 'Peninsula Beach House' project amounts
to CHF 102 million. At the end of the year, Peach Property Group Ltd was
able to complete its first project in Germany on schedule. 'Living 106', in
Berlin, comprises 76 apartments and represents a sales volume of CHF 27
million. The riverside 'Schlossuferresidenz' project in Düsseldorf was sold
for EUR 18.65 million after obtaining planning permission. In Berlin, the
company acquired a majority shareholding in the 'Am Zirkus 1' project.
Target sales volume here is CHF 77 million. The 311-room hotel, with 5,500
square metres of commercial space, is housed in the same building in which
Peach Property Group Ltd is completing its 'yoo berlin' project, with 87
residential units. Sales of these apartments are progressing well and, by
the end of 2010, had already reached CHF 30 million of the target CHF 104
million sales volume. Another component of the successful expansion in
Germany was the 'Harvestehuder Weg 36' project, in Hamburg's high-class
district on the Aussenalster Lake. The first stage of construction
commenced in February 2011. The total target sales volume amounts to CHF
106 million.

Dr. Thomas Wolfensberger, CEO of Peach Property Group Ltd, commented,
'Peach Property Group Ltd passed major milestones in its development
projects during 2010. This shows, firstly, that we are positioning our
projects appropriately, completing them on schedule, and marketing them
successfully. Secondly, it shows that we are now also established in
Germany as a leading luxury property developer.'

Predictable dividend policy
The Board of Directors is proposing to the annual general meeting on 6 May
2011 to distribute a dividend of CHF 1.00 for the 2010 financial year. This
corresponds to a dividend yield of 3.2%, as of the year-end. This
distribution percentage is in line with the dividend policy of Peach
Property Group Ltd, which seeks to pay shareholders a regular, stable
dividend distinctly above long-term money market interest rates. The
pay-out will be distributed in form of a tax-favourable capital repayment.

Membership changes on the Board of Directors
Directors Dr. Peter Saemann and Norbert Ketterer will not be standing for
re-election at Peach Property Group's annual general meeting on 6 May 2011.
The new candidate for election is Dr. Christian de Prati. He has a
successful 20-year track record in investment banking and served as Country
Head Switzerland at Bank of America Merrill Lynch until January 2011. Dr.
Christian Wenger, Peter Bodmer, Christian Kühni and Dr. Thomas
Wolfensberger are standing for re-election.

Prospects for 2011
Buoyed by strong economic conditions, the positive demand and price trends
in residential property look set to continue through 2011 in both Germany
and Switzerland. With its projects well positioned in the top market
segment, Peach Property Group Ltd should benefit from these trends. The
company expects continued rewarding sales progress at all sites. Peach
Property Group Ltd will concentrate on driving its existing projects
forward as scheduled during 2011. Parallel to this, it will embark on new
projects which, in turn, will further diversify its development portfolio.

Consolidated key figures for Peach Property Group Ltd

                                                       2010     2009

Operating income CHF 000 84 425 28 450
Operating profit (EBIT) CHF 000 21 342 17 821
Net profit CHF 000 17 971 18 232
Diluted profit per share CHF 6.03 7.00
Market value1 of development portfolio CHF 000 264 335 n/a3
Net asset value (NAV) as per IFRS CHF 000 112 477 34 873
Net asset value (NAV) at market value2 CHF 000 146 529 n/a3
Equity CHF 000 112 477 34 873
Equity capital ratio % 53% 17%
Equity capital ratio (NAV at market value1) % 57% n/a3
Headcount 34 37

1 Market value based on independent valuation by Wüest & Partner.
2 Market NAV based on independent valuation by Wüest & Partner, taking
account of deferred taxes.
3 The 2009 market values were not estimated by an independent appraiser.

Peach Property Group Ltd is holding a media and analysts' conference on its
2010 annual result, at 10.00 a.m. today, in the Baur au Lac Hotel, Zurich.

The 2010 Annual Report is available at the company's website at
www.peachestates.com/investor-relations-en/annual-report/annual-report2010

Contact
For investors and analysts:
Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
Tel.: +41 44 485 50 00
investors@peachestates.com

For the media:
Siro Barino, Barino Consulting
Tel.: +41 79 335 24 24
info@barino.ch

Information on Peach Property Group Ltd
Peach Property Group Ltd is one of the leading developers of luxury
residential property in the German-speaking part of Europe. Activities
cover the entire value chain, from site surveying to construction and
marketing of top-quality properties. Properties developed by Peach Property
Group Ltd are located on exceptional sites in or near city centres and
holiday resorts. Premier amenities meet the requirements of a demanding
clientele.

Peach Property Group Ltd currently employs some 34 highly qualified real
estate and finance specialists at its Zurich head office and at its Cologne
branch. The Group plans and is currently implementing 14 projects with
total target marketing volume of approximately CHF 800 million. Peach
Property Group Ltd has been listed on the SIX Swiss Exchange since 12
November 2010 (PEAN, ISIN CH0118530366).

For further information, please visit www.peachestates.com

06.04.2011 News transmitted by EquityStory AG.
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Language: English
Company: Peach Property Group AG
Seestrasse 346
8038 Zürich
Schweiz
Phone: +41 44 485 50 00
Fax: +41 44 485 50 11
E-mail: investors@peachestates.com
Internet: www.peachestates.com
ISIN: CH0118530366
Swiss Security Number: A1C8PJ
Listed: Freiverkehr in Berlin, Stuttgart; Open Market in
Frankfurt; SIX

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