Peach Property Group AG — Earnings Release 2012

Aug 23, 2012

News Details

Ad-hoc | 23 August 2012 07:02

Peach Property Group on track in first half of 2012

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

23.08.2012 07:02

Release of an ad hoc announcement pursuant to Art. 53 KR

Press release

Peach Property Group on track in first half of 2012

• NAV at market values up by 3.3 percent to CHF 134.4 million

• Operating income of CHF 16.5 million well above previous year's CHF 6.2
  million

• EBIT and net result also markedly improved

• All development projects progressing as planned

• Sales performance more than double that of previous year

• Purchase of second investment property portfolio boosts regularity of
  rental income

• Substantial cash flows from current projects over the next few years

Zurich, 23 August 2012 - Peach Property Group AG, a leading developer of
top-quality residential property in the German-speaking region of Europe,
increased net asset value (NAV) at market values by CHF 4.3 million
compared to the end of 2011 to CHF 134.4 million. This corresponds to a NAV
market value of CHF 27.62 per share.

Operating income rose during the first half of 2012 to reach CHF 16.5
million, compared to CHF 6.2 million in the same period of the previous
year. This marked rise is due to sales proceeds from completed projects,
rental income generated for the first time during the complete reporting
period, and the appreciation of investment properties.

Operating profit (EBIT) for the first half of 2012 stands at CHF 3.0
million, against the negative result of CHF -5.3 million in the first six
months of 2011. Peach Property Group improved its net result during the
reporting period from CHF -6.3 million in the previous year to CHF 140,000.
This corresponds to a diluted profit per share of CHF 0.03.

Portfolio value above CHF 360 million
On the basis of the valuation prepared by independent property appraisers
Wüest & Partner as per 30 June 2012, the market value of Peach Property
Group's property portfolio stands at CHF 364.5 million. The difference
compared to the value of CHF 292.4 million at the end of 2011 is
attributed, on the one hand, to the progress - and the corresponding
decreasing risk - of the development projects, and on the other hand to the
purchase of an additional investment property portfolio in Germany, as well
as the acquisition of land for the 'Candy Factory' project. Of the overall
property portfolio, development properties account for CHF 307.0 million or
84% (including joint ventures), with the remaining CHF 57.5 million or 16%
accounted for by investment properties.

Projects on schedule; good sales performance
During the reporting period, Peach Property Group has progressed its
development projects in Switzerland, Germany and Austria as planned. 'Candy
Factory' in Wollerau on Lake Zurich represents yet another project entering
its firming-up phase. The application for planning permission was submitted
at the end of May 2012; sales are scheduled to commence during the winter
of 2012/2013. Following lengthy preparations, civil engineering work has
begun on the 'Peninsula Beach House' in Wädenswil, near Zurich. Of the 23
apartments, 13 have already been sold. Superstructure work on the major
'yoo berlin/Am Zirkus 1' project in Berlin is progressing to plan and had
already reached the third floor by the end of June. The first phase of the
construction (Alsterkamp 43) has been completed at Hamburg's 'Harvestehuder
Weg 36' and a number of the apartments were handed over. Construction phase
two, involving a further 44 apartments, began in May 2012. The 'Schooren
des Alpes' project in Kappl, near Ischgl, Austria, is nearing completion.
Only three apartments are still available.

Peach Property Group has increased its notarised apartment sales by a
significant margin across all its projects. Overall sales for the first six
months of 2012 stood at approximately CHF 48.7 million, compared to 20.4
million for the same period in the previous year.

Investment property portfolio expanded in line with corporate strategy
At the end of January 2012, Peach Property Group acquired another
high-yield investment property portfolio, this time in Erkrath-Hochdahl,
near Düsseldorf, Germany. This added 143 apartments and 28 commercial units
to the Group's portfolio of investment properties. The purchase is in line
with the strategy of forging a portfolio of investment properties
generating regular rental income. By mid-year, Peach Property Group was in
possession of a portfolio of investment properties comprising 519
apartments, commercial space amounting to almost 15'000 m2 and annual
rental income budgeted at CHF 4.6 million.

Focus on operational excellence
In the interests of customer orientation, optimised internal processes and
an efficient cost structure, Peach Property Group implemented projects in
the area of marketing and sales, as well as construction management during
the first half of 2012. The Group continued rolling out its CRM system,
which facilitates integrated customer relations and links with sales
partners and brokers, and equipped it with additional customer
functionalities. Marketing activities for current projects were intensified
with events, website relaunches, advertising, construction site design and
showrooms. A further focus lay on the introduction of a company-wide system
of integrated construction cost management.

Outlook
With regard to its development projects, Peach Property Group is currently
planning the following milestones for the second half of 2012: civil
engineering work on the 'Peninsula Beach House' project will be completed
by early 2013; superstructure work will follow on immediately. The topping
out ceremony at 'yoo berlin' will take place in winter 2012. The 'Schooren
des Alpes' apartments will be handed over to their owners in time for the
skiing season in December 2012. Finally, the second phase of the
'Harvestehuder Weg 36' project will be completed during the first quarter
of 2013. These ongoing projects will generate substantial cash flows for
Peach Property Group over the next few years. The returns are designed to
secure a solid capital base for Peach Property Group and generate the means
to realise new projects. Accordingly, Peach Property Group will continue
with its evaluation of attractive development opportunities in the target
regions. At the same time, the Group intends to further expand its
portfolio of investment properties as and when attractive opportunities
arise. The existing investment properties will undergo an active
maintenance process with a view to increasing rental yields.

Peach Property Group AG CEO Thomas Wolfensberger comments: 'We draw a
positive conclusion for the first half of 2012: to begin with, all the
projects have achieved the milestones that were set for them, and the
outstanding sales performance is confirmation that Peach Property Group is
building the right properties in the right locations. Secondly, we have
made good progress in terms of implementing our strategy by acquiring a
second portfolio of investment properties. This helps smoothen out the
irregular income accruing from our project developments. Third and last,
this progress is reflected in the figures: Peach Property Group has
successfully grown the market value of its portfolio and significantly
increased its profits.'

Key figures

Peach Property Group AG (consolidated) 30.06.2012 30.06.2011
Operating Income in TCHF 16 463 6 242
EBIT in TCHF 2 957 -5 291
Net result in TCHF 140 -6 262

                                              30.06.2012    31.12.2011

NAV IFRS in TCHF 93 559 95 234
NAV market value1 in TCHF 134 354 130 016
Shareholders' Equity in TCHF 93 559 95 234
Equity ratio (reported) in % 30 42
Equity ratio (at NAV market value1) in % 38 48
Employees 32 35

Peach Property Group share 30.06.2012 30.06.2011
Diluted profit per share in CHF 0.03 -1.30

                                             30.06.2012     31.12.2011

NAV IFRS per share in CHF 19.23 19.63
NAV market value1 per share in CHF 27.62 26.79
Share price in CHF 11.90 11.05
Market capitalisation in TCHF 57 889 53 619

1 market value calculated on the basis of the independent Wüest & Partner
valuation

The Half-Year Report 2012 is available in German on the company's website
at

http://investoren.peachestates.com/download/companies/peach/Quarterly%20Re
ports/Halbjahresbericht_2012_Peach_Property_Group_AG_de.pdf

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

Media
Siro Barino, Barino Consulting
+41 79 335 24 24, info@barino.ch

About Peach Property Group
Peach Property Group AG is a leading developer in the field of top-quality
residential property in the German-speaking region of Europe. Its
activities cover the entire prime property development value chain, from
site evaluation to project planning, implementation and marketing. Peach
Property Group focuses on city and holiday residences in exceptional
locations and featuring highest-quality fittings for a discerning
clientele. The company's integrated corporate strategy encompasses not only
the development of high-quality residential properties, but also the
management of investment properties for the purpose of generating
consistent annual revenues.

Peach Property Group AG is headquartered in Zurich and has a branch office
in Cologne. The Group's current projects account for a total target
marketing volume of approximately CHF 800 million. Peach Property Group AG
is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366).

Visit www.peachestates.com for more information.

23.08.2012 News transmitted by EquityStory AG.
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Language: English
Company: Peach Property Group AG
Seestrasse 346
8038 Zürich
Switzerland
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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