Peach Property Group (PEAN) H1 2024 earnings summary

Executive summary

• Rental income rose to €61.5 million for H1 2024, up between 2.7% and 2.8% year-over-year, despite a higher vacancy rate.

• Equity raises of €17.2 million in April 2024 and plans for up to CHF 120 million in September aim to reduce leverage and fund capex.

• New CEO Gerald Klinck appointed in April 2024, with a reorganization of management and Board of Directors, and new board members appointed at the AGM in June.

• Strategic focus shifted to high-quality, ESG-compliant core regions, with non-strategic assets targeted for disposal over 2–3 years.

• Net loss after taxes improved to €22.8 million in H1 2024, mainly due to property write-downs and increased costs.

Financial highlights

• Rental income reached €61.5 million in H1 2024, with like-for-like growth of 3.3%.

• Vacancy rate increased to 7.8%, mainly due to deferred refurbishments and underinvestment in CapEx.

• Adjusted EBITDA for H1 2024 was €30.9 million, impacted by higher repair costs and one-off restructuring expenses.

• FFO I for H1 2024 was €8.9 million, with FFO II rising to €15.5 million due to disposal gains.

• Portfolio market value declined 5.7% year-over-year to €2.37 billion as of June 30, 2024.

Outlook and guidance

• Like-for-like rent growth guidance raised to above 4% for the full year.

• Net rental income guidance updated to €122–124 million for FY 2024, with FFO I guidance maintained at €17–19 million.

• No dividend planned for 2024; new dividend policy to be communicated for 2025.

• Focus for H2 2024: centering the strategic portfolio, accelerating ESG strategy, debt reduction, and strengthening financing.