Peach Property Group Ag · SIX:PEAN
Peach Property — Investor Presentation (December 2021)
42 slides from Peach Property's investor presentation, December 2021
Slide 1: Company Presentation December 2021
PROPERTY GROUP Company Presentation Growing December 2021 with values
Slide 2: Disclaimer
Disclaimer ©peach PROPERTY GROUP These materials contain forward-looking statements based on the currently held beliefs and assumptions of the management of Peach Property Group AG (hereinafter also referred to as "PPG" or “Peach Property”), which are expressed in good faith and, in their opinion, r
Slide 3: Dr. Thomas Wolfensberger, Chief Executive Officer
©peach PROPERTY GROUP Dr. Thomas Wolfensberger, Chief Executive Officer >20 years of experience, including Project manager for successful IPO, bond issuances and real estate transactions with total volume of more than EUR 3 billion Previously formed and later sold an international financial technolo
Slide 4: Introduction and strategy
©peach PROPERTY GROUP 1. Introduction and strategy 2. Portfolio as of June 30, 2021 3. Half year results, 2021 4. Outlook
Slide 5: Peach Property Group as of half year 2021
©peach PROPERTY GROUP * me 2 7 = = e 7 ae Peach Property Group as of half year 2 Well-located portfolio with relevant scale 4 @ Investment Portfolio @ Peach Point New Peach Point 2022 Active real estate investor within the attractive German residential market, with a clear focus on secondary (“B’) c
Slide 6: Why invest in Peach Property Group?
Why invest in Peach Property Group? ©peach PROPERTY GROUP Experienced team with a proven transaction track record Germany: attractive real estate market with very good perspectives Long term growth and value orientation Sl. Sound equity basis 2° 4S | =e = is <1 Attractive investment case 1 Share pri
Slide 7: Portfolio has grown to CHF 2.6 bn
io has grown to CHF 2.6 bn ©peach 5 nsaction PROPERTY GROUP Peach Portfolio as Peach Portfolio as Peach Portfolio as of HY 2020 of YE 2020 of HY 2021 Residential units 12,906 23,201 Lettable area 848,224 sqm 1,505,900 sqm Market value! CHF 1.12 bn CHF 2.04 bn Target rent p.a. GHE 63.3 mama CHF 112.3
Slide 8: ©peach
©peach PROPERTY GROUP
Slide 9: Portfolio locations
©peach PROPERTY GROUP Marl North Rhine- Westphalia Dortmund North Rhine- Westphalia Bremen, Delmenhorst, Ganderkesee Bremen/ Lower Saxony Bochum North Rhine- Westphalia Gelsenkirchen North Rhine- Westphalia
Slide 10: Source: Company information as of June 30, 2021
~ Source: Company information as of June 30, 2021
Slide 11: German Coalition Agreement 2021
German Coalition Agreement 2021 @peach from a real estate perspective PE BiNDNIS 90 DIE GRUNEN Image: Andreas Prott- stock adobe.com Coalition Agreement draft foresees for the real estate sector the following key points: * Rent cap to 11% in 3 years (from 20%/15%) which does not affect modernization
Slide 12: Population, households and housing completions in Germany
Total population per country Total households 83.9 65.4 68.2 60.4 42.3 30.3 28.5 26.4 Germany France UK Italy 700 Completions ('000) Government target rate ('000) 600 500 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 13: Germany total vs North Rhine Westphalia
2.5% 1.7% Germany total North Rhine Westphalia
Slide 14: Consistent price momentum
~ … resulting in a consistent price momentum ▪ ▪ ▪ Sources: (1) Bulwiengesa, Multifamily house, apartment building, average (weighted average); (2) Bulwiengesa, Yield in A, B, C and D cities (2020, Multifamily house-apartment building rent multiplier reciprocal) (3) Bulwiengesa, Rental prices indexe
Slide 15: Key economic regions in Germany
Key economic regions in Germany… …and home to a high number of large German corporates • • Bielefeld Gutersloh • Essen Mulheim/Ruhr Dusseldorf Leverkusen • Cologne Bonn • Highest number of new German business establishments… … coupled with low unemployment in NRW1 13% 12.0% 12% 11.4% 11% 9.5% 10% 10
Slide 16: Source: Company information as of June 30, 2021
✓ ✓ ✓ ✓ ✓ ✓ ✓ Source: Company information as of June 30, 2021
Slide 17: Tried and tested service model
Tried and tested service model that forms the basis for Peach Property Group’s high regard by tenants, ultimately resulting in vacancy reduction and rent optimization
Slide 18: Peach Points
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Source: Company information * New Peach Points opening in January 2022
Slide 19: Satisfied tenants as central focus point
Satisfied tenants as central focus point ©peach PROPERTY GROUP Higher rent, better letting and fewer damages all increase value of real estate Value of our real properties Satisfied tenants look better after their apartments and hold “misconduct” accountable through social control Satisfied tenants
Slide 20: Credit ratings, capital market transactions and analyst coverage
©peach PROPERTY GROUP Credit ratings (instrument Rating) Most recent capital market transactions IGarea ------------------ BB+ June 2021 Mandatory convertible bond 2.5% CHF 180 million; conversion price CHF 55.00 BB BB Ba2 BB-Ba3BB- BB-Ba3 EuroBond 4.375% EUR 300 million; maturity 5 years | | | | Oc
Slide 21: Peach's comprehensive sustainability view
Peach's comprehensive sustainability view | ©peach PROPERTY GROUP Ethical values in daily dealings with Responsibility towards all shareholders one another* GOVERNANCE + EPRA NTA per share: CHF 63.60 (+11%) * Proportion of employees with Code of + FFO | per share: CHF 0.40 (tax adjusted Conduct trai
Slide 22: Portfolio as of June 30, 2021
©peach PROPERTY GROUP 1. Introduction and strategy 2. Portfolio as of June 30, 2021 3. Half year results, 2021 4. Outlook
Slide 23: Portfolio structure as of Jun 30, 2021
-ortfolio structure as of Jun 30, 2021 ©peach PROPERTY GROUP Total portfolio market value CHF 2 651.6 million* 98% a Development Investment portfolio CHF 2 599.2 million CHF 52.4 million 0.9% 99.1% 100% i Switzerland Switzerland Germany CHF 24.2 _ CHF 52.4 million CHF 2 575.0 million million * Marke
Slide 24: Split by location and usage
Split by location (% of market value) Hesse 2% Others 4% Baden-Wurttemberg 4% Lower Saxony 12% North Rhine- Rhineland- Westphalia 66% Palatinate 12% Split by usage (% of rental income) Commercial / Office 4.5% Parking / Other 3.2% (previous full year 3.7%) (previous full year 3.4%) Residential 92.3%
Slide 25: Key figures of investment properties
investment properties as of ©peach PROPERTY GROUP Dec 31, 2021 2020 Number of residential units 27,497 23,201 Total floor space in sqm 1,777,254 1,505,900 «Vacancy ratio Residential floor space in sqm 1,708,497 1,436,857 residential units Commercial floor space (DIN 277) in sqm 68,757 69,043 reduced
Slide 26: Vacancy has been further reduced
has been further reduced ©peach PROPERTY GROUP Development of vacant residential units : Vacant residential units by vaca ratio 2,067 “effective vacancy" (c. 2.1%) Total Future In Inreno- Notyet Letting vacancy letting letting vation classified reserve ¢ Vacancy rate reduced significantly in existin
Slide 27: Potential to further increase rent
to furtherincrease rent | ©peach PROPERTY GROUP ° Attractive rent potential in all core portfolios * Focus on leveraging potential over next quarters (tenant satisfaction, targeted renovations, etc.) Peach Portfolio Kaiserslautern Niedersachsen Ostwestfalen Rheinland Ruhrgebiet Average Rent New Lett
Slide 28: Development project Peninsula, Wädenswil
opment project in ©peach enswil on Lake vAthatelal PROPERTY GROUP NINSULA, Wadenswil * Peninsula on Lake Zurich with 17,837 sqm of land * 5,600 sqm commercial space plus 29 rental apartments as investment properties * Additionally, 56 condominiums in planning stage; combination of redevelopment and
Slide 29: COVID-19 and flooding update
©peach PROPERTY GROUP Introduction and strategy Portfolio as of June 30, 2021 Half year results, 2021 Outlook COVID-19 and flooding update 29
Slide 30: Operating income, result, equity ratio and portfolio 2018-2021
©peach PROPERTY GROUP Operating income 2018 - 2021 Result after tax 2018 - 2021 CHF millions 177,139 CHF millions 110,096 I | I | 65,039 a 51,789 49,362 | | : ! 26,496 22,267 Agee | I , | | im 6m a | HY 2018 HY 2019 Hy 2020 ! Hy 2021 HY 2018 HY 2019 HY 2020 | HY 2021 Equity ratio 2018 - 2021 Portfol
Slide 31: Earnings and FFO I per share
ings and FFO I per share ©peach PROPERTY GROUP Diluted earnings per share Diluted FFO | per share CHF 7.96 CHF 0.60 : 0.39 2.70 1.75 -0.46 Jun 30,2019 = Jun 30,2020. = Jun 30, 2021 Jun 30,2019 Jun 30,2020* Jun 30, 2021 * Steep increase compared to HY 2020 * Total FFO | of ~ CHF 14 million — CHF 18 (
Slide 32: Development of rental income and margin
of rentalincome andmargin peach PROPERTY GROUP Development of rental income . . . Rental income by nature operating margin HEB Rental income Operating Margin TCHF in% Commercial and Parking ane other office Y 50,220 4.5% | (HY 2020: 3.3%) ( HY 2020: 3.8% \ Residential 92.3% (HY 2020: 92.9%) Jun 30,
Slide 33: Vacancy and operating costs
©peach PROPERTY GROUP Vacancy * Vacancy reduction due to Eagle acquisition (as % of total # * The speed of completing renovations is the main driver apartments) for vacancy reduction *2.1% effective vacancy on lettable apartments 2020 HY 2021 6.62 6.27 . . : . 9:97 5.69 * A total of 1,463 rental agr
Slide 34: Valuation gains and attractive yield
valuation gains and attractive ©peach PROPERTY GROUP Valuation gains as % of investment properties Initial valuation BB Total revaluation gain as % of investment properties HB Operational progress & discount rate 4.80% Average discount rate: 2019: 3.9% 2020: 3.9% HY 2021: 3.8% Jun 30, 2019 Jun 30, 2
Slide 35: Personnel and other operating expenses
©peach PROPERTY GROUP Personnel expenses as Other operating expenses as % of rental income % of rental income 26.58 21.12 11.91 16.90 Jun 30, 2019 Jun 30, 2020 Jun 30, 2021 Jun 30, 2019 Jun 30, 2020 Jun 30, 2021 * Insourcing of central steps in the value chain (network of 12 Peach Points, facility m
Slide 36: Financial policy
nancial policy on the back of successful peach ortfolio expansion and equity increase PROPERTY GROUP Maintain a well-balanced maturity profile, with a mix of secured & unsecured funding Lower weighted average cost of debt to < 2% in the medium term Maximum LTV of 50% in the medium term Achieve an in
Slide 37: Loan to value
TCHF Property financing liabilities Excluding market value of derivative financial instruments 14,828 Excluding cash & cash equivalents (incl. short term financial claims) 73,507 Net Debt 1,199,125 Market value of development properties 47,405 Total market value of investments properties without rig
Slide 38: Debt maturity and refinancing
offers refinancing Debt maturity schedule 700 600 500 400 300 596 275 200 n [ 123 150 151 493 48 mo Oo 2021 2022 2023 2024 2025 2026 2027 2028 2029 > 2030 CHFm msecured munsecured Sources of funding ™ unsecured ™ secured ©peach PROPERTY GROUP Net LTV FY 2020 i 575°. HY 2021 NN 54.5% ICR (x) FY 2020
Slide 39: Significant increase in equity
Significant increase in equity ©peach PROPERTY GROUP EPRA NTA per share (CHF) Equity values Jun 30, Dec 31, NAV IFRS (TCHF) + 1,052,850 754,862 NAV market value (TCHF) 1,062,253 | 762,459 Equity ratio (NAV market Tm 34.2% EPRA NAV (TCHF) value) = EPRA NAV (TCHE) 1,072,352 5 ea NAV (market value) per
Slide 40: Outlook
©peach PROPERTY GROUP 1. Introduction and strategy 2. Portfolio as of June 30, 2021 3. Half year results, 2021 4. Outlook
Slide 41: 2021 Guidance and 2022 Outlook
©peach PROPERTY GROUP 2021 Guidance 2022 Outlook Rental income ~ CHF 108 million — CHF 112 million growing \-f-Lrent growth ~ 3.5% growing FFO | ~ CHF 14 million — CHF 18 million growing LTV < 55% reducing Dividend 50% of FFO | stable pay-out ratio 41
Slide 42: Investors, Analysts and Media
Investors, Analysts and Media: Stefan Feller, Head of Investor Relations Dr. Thomas Wolfensberger, Chief Executive Officer Thorsten Arsan, Chief Financial Officer +41 44 485 50 18 investors@peachproperty.com Op y = each PROPERTY GROUP Wachsen mit Werten.
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