Growing with Values.
Semi-annual report 2021
peachproperty.com
2Peach Property Group AG 2021 semi-annual report
Key Figures
Peach Property Group AG is a real estate investor with an investment focus on residential real estate in Germany. Our tenants are at the center of our activities. With innovative solutions for modern living needs, we offer clear added value.
Our portfolio comprises high yielding investment properties, typically in German Tier II cities in the commuter belt of metropolitan areas. In addition we are developing selected projects to be sold as condominiums. Our services span the entire value chain, from location evaluation and acquisition to active asset management and the rental or sale of our properties.
We have our registered ofice in Zurich; our German headquarters are based in Cologne. The shares of Peach Property Group AG are listed on the SIX Swiss Exchange.
Peach Property Group (consolidated) | ||||||||
Jun 30, 2021 | Dec 31, 2020 | Jun 30, 2020 | ||||||
Operating income | in CHF thousands | 177 139 | 213 584 | 49 362 | ||||
EPRA Like-for-like rental income | in % | 4.4 | 4.7 | n.a. | ||||
Operating result | in CHF thousands | 151 651 | 178 563 | 33 330 | ||||
Result before tax | in CHF thousands | 131 435 | 153 354 | 17 050 | ||||
Result after tax | in CHF thousands | 110 096 | 127 282 | 14 892 | ||||
NAV IFRS | in CHF thousands | 1 052 850 | 754 862 | 399 539 | ||||
Equity ratio IFRS | in % | 37.4 | 33.9 | 31.8 | ||||
NAV NTA | in CHF thousands | 1 072 352 | 772 378 | n.a. | ||||
Real estate portfolio at market values (incl. right-of-use assets) 1 | in CHF thousands | 2 678 600 | 2 112 450 | 1 176 794 | ||||
Number of FTEs | 160 | 119 | 99 | |||||
Number of shares (nominal value of CHF 1.00 each) | 13 593 678 | 12 494 751 | 6 873 128 | |||||
Share capital | in CHF thousands | 13 593 | 12 495 | 6 873 | ||||
Diluted earnings per share | in CHF | 7.96 | 14.30 | 1.75 | ||||
Diluted FFO II per share | in CHF | 0.41 | 0.60 | 0.88 | ||||
EPRA NTA per share | in CHF | 63.60 | 57.29 | n.a. | ||||
Börsenkapitalisierung 4 | ||||||||
1 NAV market value based on the independent appraisal of Wüest Partner, incl. assets held for sale.
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Content
Editorial | 4 |
Investment portfolio | 8 |
Investor information | 14 |
Consolidated semi-annual financial statements | 21 |
Consolidated statement of income for the period | 22 |
Consolidated statement of comprehensive income | 23 |
Consolidated statement of financial position | 24 |
Consolidated statement of cash flows | 26 |
Consolidated statement of changes in shareholders' equity | 28 |
Notes to the consolidated semi-annual financial statements | 32 |
Review Report of the auditor on the consolidated semi-annual financial statements | 54 |
EPRA Reporting | 56 |
Contact / Events / Imprint | 65 |
4Peach Property Group AG 2021 semi-annual report
Dear shareholder
We reflect on the most successful half-year in our corporate history which is characterized by a further expansion of our real estate portfolio. We were able to sustain our growth trend and momentum from the 2020 financial year throughout the first half of 2021, despite several pandemic enforced lockdowns. Following the acquisition of around 4 300 residential units in June 2021, we have increased our overall property portfolio to around 27 500 residential units. Despite our significant portfolio growth, we were able to structurally improve our financial position through the issuance of mandatory convertible bonds, with our Loan-to-Value ratio (LTV) further reducing. We are thus combining value-oriented operational expansion with improved stability in our financial position.
We remained true to our investment strategy in our latest acquisition, with the vast majority of newly acquired residential units in, or with proximity to, already existing locations, mainly in the Ruhr Area of North Rhine-West- phalia. A number of residential units were acquired in the Bremen metropolitan area. Our extensive local expertise and established networks in our existing locations provide
a strong foundation to leverage synergies, achieve further efficiency gains and unlock economies of scale benefits from acquisitions.
The market value of our portfolio increased more than twofold compared to the market value at the end of the comparative period, to CHF 2.6 billion. Our portfolio, with a total lettable floor space of more than 1.7 million square meters, achieved a gross return of 4.9 percent as of the period end date.
Operational successes achieved in the first half of 2021 are reflected in our key financial figures. In comparison to the first half of 2020, we increased our profit before tax to CHF 131.4 million, representing an almost eightfold in- crease. Our operating margin improved from 74.9 percent in 2020 to 76.5 percent in the first half of 2021. Net rental income increased from CHF 27.4 million in the first half of 2020 to CHF 50.2 million in the first half of 2021, reflecting the rental income generation by the residential units acquired at the end of 2020.
Increased efficiency through an intelligent platform
Our modern and digital platform facilitated the quick and smooth integration of the more than 10 000 residential units acquired during 2020 into our existing portfolio. Efficient integration represents the return on our investments made in recent years where we set up our service center in Berlin and implementing the SAP S/4 HANA platform.
Through our planned expansion of, and integration of further automated processes, including using artificial in- telligence, we expect to generate further efficiency gains in the future.
Tenant focus as part of our DNA - digital channels and new Peach Points
A further advantage of our digital platform is that it links our regional tenant stores, called Peach Points, with the service offering available to our tenants. A Peach Point is continuously reachable by phone, email, via the tenant
portal, or can be visited in person. When a tenant reports damages directly at a Peach Point, the Peach Point employee can send a repair request directly to the appropriate craftsman thanks to intelligent technology.
Editorial 5
Reto Garzetti | Dr. Thomas Wolfensberger |
President of the Board of Directors | Chief Executive Officer |
As an investor with its focus on residential property port- folios, we have a tenant-orientated focus which makes the availability of tenant support 24/7 paramount. Our tenant-orientated focus extends further to the well-being of our tenants in the current, very challenging pandemic phase.
Active communication and exchanges with our tenants during the lockdowns at the start of 2021 were very im- portant. In this respect, our various digital channels underlined their value in that we were able to maintain close contact with our tenants despite our Peach Points being physically closed to the public due to COVID-19. In order to extend our proven quality of service to the tenants from the real estate portfolio acquired at the end of 2020, we
opened a further four Peach Points during the first half of 2021, increasing the total number of tenant stores to twelve as of June 30, 2021.
All these elements demonstrate that the success of our business activities is not measured solely on the usual financial indicators. The satisfaction of our tenants is central to our success and is the measure that drives us to constantly question our model, identify weak points, and take remedial action. Ultimately, tenant satisfaction achieved is reflected in our vacancy rate. Our vacancy rate continued its downward trend over the past years and reduced further, from 7.9 percent at the end of 2020, to 7.5 percent as of June 30, 2021.
Optimized capital structure and reduced interest expenses
The first half of 2021 was characterized by a large expansion in our operational business. In parallel, we optimized our capital structure in line with our strategy. We were able to reduce our LTV from 57.5 percent at the end
of 2020 to 54.5 percent as of June 30, 2021. In doing so, we achieved our target of a maximum LTV of 55 percent. The average interest rate reduced from 2.9 percent at the end of 2020 to 2.7 percent at the end of the report-
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Peach Property Group AG published this content on 31 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2021 07:51:02 UTC.