Peach Property Group AG: Successful portfolio and balance sheet transformation in 2024

Zürich (pta007/25.03.2025/07:00 UTC+1)

Ad hoc announcement pursuant to Art. 53 LR

• Audited figures for 2024 show significantly deleveraged balance sheet, LTV at 50.9 %
• Rental income up 3.0 %, FFO I at EUR 18.1 million
• Portfolio optimized through new strategy and sale, vacancy rate of total portfolio on a rental basis falls as per December 31, 2024, to 8.4 %
• Portfolio transaction and capital increase in the second half of 2024 have created around EUR 240 million in additional cash
• Discussions with German credit institution for further repayment of the EUR 300 million bond are well advanced
• Current focus on operating performance and remaining refinancing objectives
• Guidance 2025: increase in net rental income by > 4 % (like-for-like), FFO I at EUR 18 to 20 million

Peach Property Group AG ("Peach Property Group"), a real estate investor focused on residential real estate in Germany, has published its annual report with audited results for the financial year 2024. The year 2024 was largely characterized by a comprehensive portfolio and balance sheet transformation to further develop the capital structure and significantly reduce net debt. All key sub-targets were achieved. Two capital increases and the sale of 5,200 units increased Group liquidity to over EUR 220 million at the end of 2024. The loan-to-value (LTV) ratio was reduced from 57.5 % to 50.9 %. The significantly improved balance sheet structures thus form the basis for refinancing the EUR 300 million bond maturing in November 2025, which was already partially repaid by around EUR 127 million in January 2025. A promissory note loan due in the amount of EUR 55 million was also repaid in the first quarter of 2025. The outstanding nominal amount of the bond of around EUR 173 million is to be redeemed in the coming months through various new financings. The Group is already in concrete and advanced talks with a German credit institution regarding the short-term implementation of a first major financing tranche.

Operating result for 2024 in line with expectations

The operating performance was in line with expectations. Rental income increased by 3.0 % to around EUR 124.5 million and is therefore in line with the forecast. The vacancy rate for the overall portfolio on a rental basis was 8.4 % as at December 31, 2024 (previous year: 9.5 %), 6.5% in the core portfolio (Strategic Portfolio) and 13.9 % in the non-core segment (Non-Strategic Portfolio). The average rent per square meter at around EUR 6.40 in the Strategic Portfolio is around 15 % below average market rents. Peach Property Group sees further potential for a gradual increase in rents in the medium term. On the income side, funds from operations (FFO I) of around EUR 18.1 million were achieved in 2024 (previous year: EUR 22.8 million). Against the backdrop of a challenging real estate market environment, the adjusted total market value of the existing portfolio fell slightly by 2 % on a like-for-like basis to EUR 1.9 billion at the end of 2024 compared to the end of the previous year. The negative valuation results and the effect from the portfolio sale consummated in December 2024 therefore also determine earnings before taxes at EUR - 176.9 million. At the same time, the new shares issued in the business year 2024 lead to dilution effects, resulting in EPRA NTA of EUR 20.31 per share and EPRA NRV of EUR 23.03 per share.

Outlook for 2025

In the 2025 financial year, in addition to the refinancing of the 2025 maturing facilities that has already begun, the focus will primarily be on further developing operating profitability. The appointment of Stefanie Koch as the new Chief Operating Officer in March 2025 has laid the foundation for this on the management side; this also completes the Group's personnel realignment. The key area of action for increasing the earnings potential in the core portfolio (Strategic Portfolio) is to reduce the vacancy rate to below 4.0 % in the medium term. The investment measures required for this will be financed primarily through the sale of residential properties from the Non-Strategic Portfolio, which has already begun in the current year. At the same time, rents are gradually being brought into line with regional market rents. As these will also continue to rise, this will have a positive reinforcing effect on the structural rental trend in the portfolio.

For the 2025 financial year, Peach Property Group expects net rental income to increase by > 4 % on a like-for-like basis. FFO I should be between EUR 18 to 20 million. The Group is also aiming for an LTV of less than 45 % in the medium term.

Gerald Klinck, CEO of Peach Property Group:"Following the comprehensive transformation and strategic realignment initiated in 2024, we have created a solid structural and financial foundation for our business model. This is already reflected positively in the ongoing discussions with our banking partners for new financings and is an important step towards a secured credit structure. In 2025, we are also focusing on strengthening our platform through process optimization and increasing our operating results and profitability. We finance investments primarily from the sale of assets from the non-strategic portfolio. On the market side, a robust bottom has now emerged in the residential segment with a corresponding stabilizing effect on valuations and demand. Together with the entire team, I therefore look forward to our goals for 2025 with great confidence and drive."

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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Emitter:	Peach Property Group AG Neptunstrasse 96 8032 Zürich Switzerland
Contact Person:	Gerald Klinck, Chief Executive Officer
Phone:	+41 44 485 50 00
E-Mail:	investors@peachproperty.com
Website:	www.peachproperty.com
ISIN(s):	CH0118530366 (Share)
Stock Exchange(s):	SIX Swiss Exchange; Free Market in Berlin, Frankfurt, Stuttgart