Peach Property Group AG — Earnings Release 2012

Jan 31, 2013

News Details

Ad-hoc | 31 January 2013 07:05

Peach Property Group AG provides preliminary forecast on results of a successful 2012

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

31.01.2013 07:05

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

Press release

Peach Property Group AG provides preliminary forecast on results of a
successful 2012

• Operating income lifted considerably by around 150 per cent to just
  underCHF 49 million

• Market value of property portfolio boosted by around 35 per cent

• Rental income from investment properties increased to around CHF 4.3
  million

• Sales volume expanded significantly

• Profit expected despite extraordinary items

Zurich, 31 January 2013 - Peach Property Group AG, a leading developer of
top-quality residential properties in the German-speaking region of Europe,
today announced preliminary figures for a successful 2012 financial year.
The year was dominated by three factors: the development and expansion of
the Group's portfolio, a strong increase in sales volume and a
stabilisation of earnings according to plan on the back of current rental
income from investment properties.

Based on independent expert valuations, the market value of the Group's
property portfolio rose by more than 35 per cent to just under CHF 400
million in the reporting year. This increase was driven both by the
successful evolution of existing projects and the acquisition of attractive
new properties. Around 15 per cent of the portfolio is made up of
investment properties that generate rental income in Switzerland and
Germany; development properties in the top-end segment of the market
account for around 85 per cent. For details, please see Asset Reporting
published today (www.peachproperty.com).

According to preliminary figures, the operating income of Peach Property
Group AG in the financial year just ended was approximately CHF 49 million
- up just over 150 per cent on the previous year's figure. As planned, this
increase was due to the development of properties as well as rental income
from investment properties and their appreciation in value. The
distribution of income reflects the strategic combination of development
and investment properties implemented in line with the Peach Property
Group's business model.

In the reporting year, the first construction phase of the 'Harvestehuder
Weg 36' (A43) project in Hamburg was completed, and 10 of the 13 apartments
were handed over to their owners. The 'Schooren des Alpes' project in Kappl
near Ischgl was also completed on schedule; 9 of the 12 apartments were
handed over to their owners. The Group also acquired two attractive new
development projects - 'Candy Factory' in Wollerau near Zurich and 'Living
108' in Berlin - and further advanced its existing developments according
to schedule. The sales volume increased from around
CHF 50 million in the previous year to a total of CHF 85 million, of which
around CHF 75 million will not be reflected in earnings until 2013 and
2014.

Income from the lease of investment properties rose from CHF 0.7 million in
2011 to CHF 4.3 million because the portfolio in Munster generated rental
income for the entire year for the first time and the Group acquired a
second large portfolio of investment properties in Erkrath near Düsseldorf
in early 2012. These acquisitions, the purchase of properties on Rheinische
Strasse in Dortmund as well as the reduction in the vacancy rate and
progress made in operating the investment portfolio in Munster also
resulted in income from a net change in fair value.

During the 2012 financial year, Peach Property Group AG made significant
advance investments for new projects in line with its growth strategy.
Added to this were one-time extraordinary charges of around EUR 0.7 million
(CHF 0.84 million) for the IPO of the Group's German subsidiary, which was
initially planned for last autumn but was then postponed. Operational
efficiency gains enabled the Group to reduce significant cost items such as
personnel expenses. Overall, Peach Property Group AG is expecting a profit
for the 2012 financial year. This means that the positive trend witnessed
in the first half of 2012 continued in the year's second half - although
the lion's share of revenue from the large-scale projects in Berlin and
Hamburg will only be reflected in the 2013 financial year.

Given that the 'yoo berlin'/'Am Zirkus 1' and 'Harvestehuder Weg 36'
projects in Hamburg are progressing according to plan and taking into
account the new projects in Germany and Switzerland, Peach Property Group
AG is optimistic with regards to 2013.

Peach Property Group AG will publish its complete annual results including
final figures on 4 April 2013 and present detailed information at a media
and analysts' conference.

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

Link for downloading the 'Asset Reporting for the 4th quarter of 2012'
http://investoren.peachproperty.com/websites/peachproperty/English/5300/as
set-reporting.html

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 operating income.

Peach Property Group AG is headquartered in Zurich and also has a branch
office in Cologne. Peach Property Group AG is listed on SIX Swiss Exchange
(PEAN, ISIN CH0118530366).

Visit www.peachproperty.com for further information.

31.01.2013 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@peachproperty.com
Internet: www.peachproperty.com
ISIN: CH0118530366
Swiss Security Number: A1C8PJ
Listed: Freiverkehr in Berlin, Stuttgart; Open Market in
Frankfurt; SIX

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