Peach Property Group (PEAN) H2 2024 earnings summary

Executive summary

• 2024 featured a major portfolio transformation with the sale of over 5,200 units, generating up to €122.2 million net cash, and capital increases totaling up to €135 million, strengthening liquidity and supporting refinancing.

• Management changes included the appointment of Gerald Klinck as CEO, Stefanie Koch as COO, and a new Chairman, Michael Zahn, reflecting strategic realignment.

• Strategic focus shifted to core German residential assets, especially North Rhine-Westphalia, with improved occupancy and operational KPIs.

• Year marked by significant balance sheet restructuring, deleveraging, and capital increases, raising up to €135 million.

• Operational performance supported by sustainable rent increases and improved management efficiency.

Financial highlights

• Rental income rose to €127.1 million in 2024 (+1.8% year-over-year), with like-for-like growth of up to 3.7%.

• Adjusted EBITDA declined to €62.2 million (–5.9% year-over-year), mainly due to one-off write-offs and higher operating expenses.

• Net loss after taxes widened to €200.5 million, driven by valuation and divestiture losses.

• EPRA NTA per share fell to €20.31 (from €47.37 in 2023) due to equity issuance and valuation effects.

• Portfolio market value dropped to €1.9 billion (–21.2% year-over-year) after disposals and revaluations.

Outlook and guidance

• FY 2025 guidance targets vacancy on rent below 4%, like-for-like rental growth above 4%, LTV below 45%, and FFO I of €18–20 million.

• Focus remains on refinancing maturing bonds, operational efficiency, and further non-strategic asset sales.

• No active acquisitions planned for 2025, but open to opportunistic growth.

• Targeting further vacancy reduction and rent increases in the Strategic Portfolio, with increased investments in modernization and ESG initiatives.

• Management is confident of completing refinancing on time, with a €120 million secured financing term sheet in place.