Peach Property Group AG: Affordable and sustainable living spaces – Sustainability Report for 2023 published

[ Report ]

Zürich (pta006/10.05.2024/07:00) - Corporate news for the stock market

* Peach Property Group publishes second sustainability report in accordance with Global Reporting Initiative (GRI) standards
* Decarbonization of the real estate portfolio continued in the 2023 financial year: Achieving a climate-neutral portfolio by 2050 remains the focus of the decarbonization strategy
* Tenant satisfaction at 76 percent
* Advances in Corporate Governance

Peach Property Group AG ("Peach Property Group"), a property investor with an investment focus on residential real estate in Germany, has published its second Sustainability Report in accordance with the Global Reporting Initiative (GRI) standards. Despite the challenging environment caused by rising building material prices, high inflation and persistently high energy costs, Peach Property Group continued to invest in ESG measures in 2023. The provision of affordable and sustainable living spaces, the reduction of emissions, ethical corporate governance, and the well-being of tenants and employees are core elements guiding the business decisions.

The Sustainability Report for the 2023 financial year provides a transparent and comprehensive presentation of all relevant ESG information on the impact of Peach Property Group's business activities in the five categories of environment, tenants, employees, corporate governance, and performance. Actions and targets have been defined for each category and their achievements are monitored by the Group's Sustainability Committee, which was established in 2022.

Provision of affordable housing

Peach Property Group provides affordable housing in German Tier II cities. With its tenant-centric approach, the Group ensures that tenants have access to sustainable, long-term housing solutions at affordable rates. In 2023, the average existing rent amounted to approximately EUR 6.2 per square meter, which is approximately 18 percent below the average market rent in the main locations.

Decarbonization of the portfolio driven forward

Despite the challenging environment, further steps were taken in 2023 towards decarbonization of the real estate portfolio. The focus was on cost-efficient measures promising significant energy-saving potential. These included investments in decentralized heating systems with district heating and the installation of smart metering systems.

The Group has also continued to improve its ESG data analysis and data completeness. The stated goal is to sustainably reduce the CO2 intensity of the portfolio to below 30 kg CO2e/m²a by 2030 and to below 10 kg CO2e/m²a by 2050. A digital decarbonization tool supports the achievement of these goals by simulating and planning property-specific measures.

Tenant satisfaction at a high level

Peach Property Group provides advice and assistance to its tenants through tenant shops known as Peach Points. The Peach Points offer tenants the opportunity to establish personal contact and thus promote a direct and personal dialogue, enabling quick and reliable response to tenant enquiries. In 2023, the Group operated 15 Peach Points.

Tenant satisfaction is a top priority for Peach Property Group. In 2023, this was measured through direct feedback via an online ticketing system and, at 76 percent, exceeded the target of 75 percent. At the same time, Peach Property Group increased its 'one touch' rate to 91.3 percent, meaning that Peach Property Group was able to resolve over 91 percent of tenant queries during the first interaction – on average in less than 19 hours.

Good working conditions for employees

Peach Property Group offers attractive and modern working conditions and helps developing its employees individually. The Group values an open feedback culture and flat hierarchies. All employees receive an annual performance review to discuss the achievement of personal goals and establish mutual objectives for the next financial year.

A Group-wide employee survey was conducted in 2023 to measure employee satisfaction and identify opportunities for improvement. The survey results show a high level of employee satisfaction with the onboarding process and the annual feedback, as well as a perception of good teamwork and collaboration within the teams.

Focus on responsible corporate governance

Anti-corruption, avoidance of conflicts of interest and bribery as well as anti-discrimination form the basis of Peach Property Group's operational activities. These values are embedded into the Group's internal corporate governance structures and in the Group's Code of Conduct. Peach Property Group had already launched a separate Code of Conduct for Business Partners in 2022, which defines the Group's requirements for its business partners in terms of ethics, integrity, labour standards and environmental protection. Peach Property Group is committed to continuously strengthening its own governance structure to ensure responsible corporate management and the integration of sustainability issues into all business processes and investment decisions.

In the 2023 financial year, a new "Guideline for the Prevention of Money Laundering and Terrorist Financing" was introduced in accordance with the German Money Laundering Act, and training was provided on corporate policies and guidelines, in particular the Code of Conduct. In addition, all employees received mandatory training on data protection and data security.

Continuing sustainability efforts in 2024

This year, Peach Property Group is taking further steps in its decarbonisation strategy, including further expanding the smart meter infrastructure and assessing and planning energy-related renovation programs. It also aims to increase the proportion of women in management positions. By promoting gender diversity at the highest decision-making levels, the Group aims to achieve greater balance and effectiveness in its management.

The provision of affordable housing is at the heart of the Group's strategy. The housing shortage in Germany is expected to worsen in the coming years and to further increase the need for affordable housing.

Thorsten Arsan, CFO and Chairman of the Sustainability Committee, comments: "Our second sustainability report shows what we have done over the past year to contribute to a sustainable future, despite the challenges we face. It is important for us to create value for our tenants, employees, investors, and society. Sustainability is at the heart of everything we do, and it starts with providing affordable housing."

Media, investors, and analysts

Gerald Klinck, Chief Executive Officer
Thorsten Arsan, Chief Financial Officer
Vanessa da Cruz, Head of Investor Relations & ESG
+41 44 485 50 31 | investors@peachproperty.com

Media Germany

Feldhoff & Cie
Anke Sostmann, Executive Director
+49 159 04028505 | as@feldhoff-cie.de

About Peach Property Group AG

Peach Property Group is a real estate investor with an investment focus on residential real estate in Germany. The Group stands for many years of experience, competence, and quality. Innovative solutions that cater to tenants' needs, strong partnerships, and a broad value chain round off the profile while digitalization and sustainability underpin the operational activities. The portfolio consists of high-yielding properties, typically in German Tier II cities in the commuter belt of metropolitan areas. The activities, therefore, span the entire value chain, from location evaluation and acquisition to active asset management and the letting or sale of properties.

In addition, Peach Property Group develops selected properties in Switzerland to be sold as condominiums, of which the "Peninsula Wädenswil" development project is the last such development project.

Peach Property Group AG has its registered office in Zurich and operational headquarters in Cologne. Peach Property Group AG is listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Klaus Schmitz (Chairman), Dr. Christian De Prati and Peter Bodmer.

More information at https://peachproperty.com

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