Peach Property Group AG: Financial year 2024 with significantly deleveraged balance sheet and optimized portfolio

[ Report ]

Zürich (pta027/10.02.2025/18:45) - (All information on the 2024 business figures is preliminary and not yet audited)

Ad hoc-notification pursuant to Art. 53 LR

* Preliminary figures show successful financial year 2024
* Rental income increased by 3.0 percent to around EUR 124 million
* FFO I of around EUR 16 million and adjusted EBITDA of around EUR 60 million in line with expectations
* Market value of the property portfolio slightly reduced by around 2 percent (like-for-like)
* Portfolio optimized through transaction and new strategy, vacancy rate on a rental basis after transaction down to 7.8 percent as per 31.12.2024
* Capital increases and portfolio sale strengthen Group liquidity for repayment of 2025 maturities
* Loan-to-value (LTV) significantly reduced from 58 percent to 51 percent
* Outlook for 2025 with focus on operating performance and gradual sale of assets outside the core portfolio

Based on preliminary, unaudited figures, Peach Property Group AG ("Peach Property Group") successfully completed the past financial year and achieved key milestones. 2024 was also characterized by a comprehensive portfolio and balance sheet transformation to further develop the capital structure and reduce net debt. In the course of two capital increases, the issuance of 24.66 million new shares generated proceeds of CHF 126 million (approximately EUR 135 million). In addition, a portfolio sale of around 5,200 units resulted in a net liquidity inflow of around EUR 120 million. These measures led to a significant increase in group liquidity to over EUR 220 million at the end of 2024. At the same time, the loan-to-value (LTV) ratio was significantly reduced from 58 percent to 51 percent despite slight offsetting valuation effects. Some of the available liquidity was already used in January 2025 to buy back EUR 127 million of the outstanding EUR 300 million bond, due November 2025.

Peach Property Group's rental income increased to around EUR 124 million in 2024, while the corresponding target rent grew by 4 percent on a like-for-like basis. Both figures are therefore within the guidance. The vacancy rate of the overall portfolio on a rental basis amounted after the portfolio transaction to 7.8 percent as per 31.12.2024. On the income side, funds from operations (FFO I) of around EUR 16 million were achieved in 2024.

Disposal losses of around EUR 100 million were realized as part of the deconsolidation of the transaction portfolio. In addition to the general market trend, significant parts of the book value losses are due to the currently usual portfolio and risk discounts for transactions of this size as well as particularities of this transaction structuring with high implementation efficiency. Against the backdrop of a persistently challenging real estate market environment, the total market value of the existing portfolio adjusted for the sales portfolio fell slightly by 2 percent like-for-like to EUR 1.9 billion at the end of 2024.

The negative valuation results therefore also determine the full-year loss before taxes, which is expected to be around EUR 180 million. The newly issued shares will have a corresponding dilutive effect, so that EPRA NTA is around EUR 20.5 per share and the EPRA NRV is around EUR 23.5 per share.

Outlook 2025

Peach Property Group expects its operating business to develop positively in the 2025 financial year. In view of weak new construction activity in Germany due to the sharp rise in construction and financing costs, the Group, with its focus on affordable housing, is well positioned to benefit from the persistent excess demand for affordable housing and the resulting further increase in market rents. As a result of the new portfolio strategy, the operating profitability of the core portfolio (Strategic Portfolio) is to be further increased by reducing vacancies and implementing more efficient process and cost structures. Outside of this, the Group is examining step-by-step sales from the non-core segment (Non-Strategic Portfolio) in order to generate further liquidity for portfolio investments and also to reduce debt. Liquidity provisions have already been made for most of the unsecured financial liabilities with maturity in 2025. Peach Property Group is planning a combination of secured and unsecured new financing for the remaining unsecured refinancing part.

Gerald Klinck, CEO of Peach Property Group: "With our new portfolio strategy, the capital measures and the portfolio sale, we have significantly enhanced the Group's structure and balance sheet in 2024. The course has also already been set for a large part of the financing maturities still to come in 2025. This year, we will therefore focus more on our operating performance in the Strategic Portfolio and the disposals from the Non-Strategic Portfolio. We are convinced that we can deliver significant improvements in terms of profitability and returns."

Contacts:
Media, investors and analysts

Gerald Klinck, Chief Executive Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany

Rosenberg Strategic Communications GmbH & Co. KG
Dirk T. Schmitt, Managing Partner
+49 170 302 8833 | D.Schmitt@RosenbergSC.com

About Peach Property Group AG

Peach Property Group is a property investor focused on residential investment in Germany. The group stands for many years of experience, expertise and quality. Innovative solutions for tenants' needs, strong partnerships and a broad value chain complete the profile, while digitalization and sustainability characterize the operational business. The portfolio consists of high-yield properties, typically in German Tier II cities in the catchment areas of major metropolitan areas. Activities therefore cover the entire value chain, from site evaluation and acquisition to active asset management and the letting or sale of properties. In addition, the Group is developing selected properties in Switzerland for sale as condominiums, the latest of which is the "Peninsula Wädenswil" project.

Peach Property Group AG is headquartered in Zurich and has its German headquarters in Cologne. Peach Property Group AG is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366). The Board of Directors includes Michael Zahn (Chairman), Cyrill Schneuwly, Beat Frischknecht, Urs Meister and Eric Assimakopoulos.

Further information: https://www.peachproperty.com/en/

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