DGAP-Adhoc: Peach Property Group AG announces preliminary figures for financial year 2013 Peach Property Group AG / Key word(s): Preliminary Results 31.01.2014 17:50 Release of an ad hoc announcement pursuant to Art. 53 KR --------------------------------------------------------------------------- Press release Peach Property Group AG announces preliminary figures for financial year 2013 - Operating income lifted by just under 20 percent to over CHF 56 million - Substantial increase in rental income by around 30 percent to around CHF 5.8 million; successful integration of newly acquired Gretag AG - Current operating costs down approximately 20 percent (CHF 3 million) despite integration of Primogon AG and Gretag AG - Sales volume reaches around CHF 86.3 million, surpassing the previous year's record figure - Significant extraordinary items push earnings in the red, as expected; due to the generally good company development the loss will however be smaller than expected Zurich, 31 January 2014 - Peach Property Group AG, a leading property investor and developer of high-quality residential real estate in the German-speaking region of Europe, expects to report negative earnings before taxes in the region of CHF 2 to 3 million as a result of significant one-off expenses for financial year 2013, as previously announced. The Company had reported earnings before taxes of CHF 1.9 million in the previous year. The 2013 financial year was dominated primarily by two events: Firstly, the acquisition of property company Gretag AG in September 2013, which considerably expanded Peach Property Group's investment portfolio in Switzerland, substantially boosted its rental income and further strengthened its earnings base. Gretag AG also owns extensive land available for development, which will be developed by Peach Property Group over the next few years. Secondly, Peach Property Group took over construction management for the 'yoo berlin' and 'Am Zirkus 1' projects in Berlin and the 'H36' project in Hamburg after the previous general contractors BSS Beton-System-Schalungsbau GmbH in Berlin and Peter Holthausen GmbH & Co. KG in Hamburg had filed for insolvency in July 2013 and May 2013, respectively. This resulted in negative extraordinary items amounting to around CHR 13 million, which pushed earnings into the red, as expected. A further CHF 6 million in lost profits from the insolvencies will be recognised after the buildings have been completed and handed over to the buyers in 2014. This was partially offset by the expected reduction of current operating costs by more than 20 percent (CHF 3 million), a decrease achieved by Peach Property Group despite the integration of both Primogon AG and Gretag AG. According to preliminary figures, operating income increased by more than 20 percent year-on-year to around CHF 56 million. As expected, income from property development fell substantially to just under CHF 6 million, because no projects were completed in 2013. In contrast, rental income from investment properties at CHF 5.8 million surpassed the previous year's figure by around 30 percent. Property appreciation had a clearly positive effect too: Effects from the initial valuation of properties following the takeover of Gretag AG, the reclassification of the 'Mews' and 'Gardens' properties in Wädenswil to investment properties and the operational progress made in Dortmund resulted in a year-on-year increase in value of around CHF 17 million (2012: CHF 10.4 million). Overall, the market value of investment properties as at 31 December 2013 according to the independent appraisal by Wüest & Partner doubled to around CHF 138 million from the previous year. The market value of Peach Property Group's entire property portfolio increased by some 37 percent to roughly CHF 541 million. Apartments worth CHF 86.3 million were sold including authentication by a notary public, which set a new sales record exceeding the previous year's high figure of CHF 85 million. The annual target communicated earlier has thus been met. Especially noteworthy is the new 'Living 108' construction project, in which around 67 percent of the apartments were sold with authentication by a notary public within just 8 months after construction commenced. According to the asset reporting also published today, 87 percent of the apartments in the 'yoo berlin' project have been sold and 88 percent of the hotel and commercial space in the 'Am Zirkus 1' project have been let. Purchase agreements for around 68 percent of the apartments in the major Hamburg project have already been authenticated by a notary public. The percentage of units sold in the Beach House project in Wädenswil remained at 55 percent. Plans are to sell the remaining 8 units shortly before or after the project is ready for occupancy in the third quarter of 2014. The 'yoo wollerau' project has not been as successful as hoped. It is currently being redesigned (refurbishment instead of a new build, without external pool) and is expected to go on the market in a revised version in summer of 2014. Peach Property Group is optimistic about 2014: The three major projects in Hamburg and Berlin are expected to be completed in the first half of the year, which will result in a significant inflow of income. All other projects will proceed as planned. Peach Property Group anticipates further appreciation of its investment property portfolio and higher rental income primarily due to the planned repositioning of the entire Gretag site in Regendsdorf and the partial renovation of existing buildings. Peach Property Group will publish final figures for the financial year 2013 and further details regarding its annual result on 13 March 2014 and provide additional explanations during a media conference on that date. After the publication of the annual financial statements of Peach Property Group, Creditreform Rating AG will prepare a follow-up rating for the 6.6 percent corporate bond issued by the German subsidiary, Peach Property Group (Deutschland) AG. The Swiss parent company, Peach German Properties AG, which is wholly-owned by Peach Property Group AG, is the guarantor of this bond and the payment obligations arising from it. The Q4 2013 asset report is available the following link: http://investoren.peachproperty.com/websites/peachproperty/English/5300/as set-reporting.html Contacts Media, investors and analysts Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer +41 (0) 44 485 50 00 | email@example.com Media Germany: edicto GmbH, Axel Mühlhaus +49 (0) 69 90 55 05 52 | firstname.lastname@example.org About Peach Property Group Peach Property Group AG one of the leading developers 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 exclusive 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 also has a branch office in Cologne. The company's shares are listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366). Visit www.peachproperty.com for more information. +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=AYBHMOOWRO Document title: Press release Peach Property Group AG 31.01.2014 News transmitted by EQS Schweiz AG. The issuer is responsible for the contents of the release. EquityStory publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. The Swiss news archive can be found at www.equitystory.ch/news --------------------------------------------------------------------------- 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: email@example.com Internet: www.peachproperty.com ISIN: CH0118530366 Valor: A1C8PJ Listed: Freiverkehr in Berlin, Stuttgart; Frankfurt in Open Market ; SIX End of Announcement EQS Group News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Peach Property Group AG announces preliminary figures for financial year 2013
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