Peach Property Group Ag · SIX:PEAN
Peach Property — Investor Presentation (July 2024)
31 slides from Peach Property's investor presentation, Jul 15, 2024
Slide 1: Company presentation July 2024
Company presentation July 2024 ©peach PROPERTY GROUP
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) was prepared exclusively by Peach Property Group AG ("Peach") solely for informational purposes and has not been independently verified and no representation or warranty, express or implied, is made or given by or on behalf of Peach. Nothing in this Pres
Slide 3: Today's Representatives
Today's Representatives Gerald Klinck Rita Sprenger Dr. Holger Franz Chief Executive Officer Head of Corporate Finance Chief of Staff EO of the Peach Prog + At Peach Property Group sin roup since April 2024 July 2021 + In addition to his r Property Group, he also er the responsibilities o ©peach
Slide 4: Agenda
Agenda Peach Property at a glance Our Portfolio Strategy Key components to drive EBITDA Our Financing Strategy What is next? Appendix ©peach
Slide 5: Our Management
Our Management Highly skilled and experienced Executive Management and Board of Directors Executive Management Gerald Klinck ® Chief Executive Officer, CFO responsibilities : CURE > ease \ AMG. yonowia Board of Directors Marcus Schmitt Chief Operating Officer Dr. Andreas Steinbauer Head of Letting &
Slide 6: Peach Property at a glance
Peach Property at a glance Affordable German residential properties in selected B-cities Rental income Actual Rent per m? Peach Property Group owns ~27 000 residential units across 8 federal states Market Rent per m? Vacancy (based on units) Portfolio Residential floor space in Germany / Portfolio v
Slide 7: Market fundamentals
Market fundamentals Dynamics support Peach Property's future performance Undersupply in the German housing market is expected to persist German inflation reduces while construction price growth slows down 450 mmm Completed new 400 appartments (000}+ Government target eed rate (000) 300 ected tionsin
Slide 8: Agenda
Agenda Peach Property at a glance Our Portfolio Strategy Key components to drive EBITDA Our Financing Strategy What is next? Appendix ©peach
Slide 9: Our portfolio strategy
Our portfolio strategy Focus on Strategic Assets to create EBITDA growth ~\ German . Portfolio =) Defining the Non-Strategic bucket... Selection Criteria Small assets (<75 residential units) Distance to next Peach Point (>40 km) High vacancy Low rental upside Capex backlog Privatisation potential (d
Slide 10: Strategic Focus and Portfolio Optimization
Strategic Focus and Portfolio Optimization Continue operational improvement of Strategic Portfolio while monetizing Non-Strategic Portfolio Strategic! (79%) Non-Strategic (21%) 20 630 units 6 461 units* 44 locations 72 locations 5.99 €/m? in-place rent vs. 7.03 €/m? 2 market rent® 6.28 €/m? in-place
Slide 11: Agenda
Agenda Peach Property at a glance Our Portfolio Strategy Key components to drive EBITDA Our Financing Strategy What is next? 0600006 Appendix ©peach 11
Slide 12: EBITDA Drivers
EBITDA Drivers Improvement of EBITDA is key for sustainable debt structure Strategic ($] Create Net il Sales Proceeds Selective capex spend to enhance Increased portfolio efficiencies Improved Sustained vacancy rate rental growth
Slide 13: EBITDA Driver — Rental Growth
EBITDA Driver — Rental Growth Material further upside potential on Peach's Strategic Portfolio Net cold rent growth without modernization effects! Sensitivity Analysis on Strategic Portfolio Flguresin €/ sqm Assumptions 7.38 * Starting Point: 31.12.2023 * Inplace rent of Strategic assets €96m + 100%
Slide 14: EBITDA Driver — Vacancy Reduction
EBITDA Driver — Vacancy Reduction Solid track record in vacancy reduction, aiming to achieve a normalized vacancy rate of <4% Positive trend on vacancy despite more renovations in 2023 Sensitivity Analysis on Strategic Portfolio Vacancy based on units Assumptions * Starting point 31.12.2023 2'190 +
Slide 15: EBITDA Driver — Investments
EBITDA Driver — Investments Investments in apartments (TI) to support Rental Growth Sensitivity Analysis on spendings for TI investments regarding Strategic Portfolio for... . fluctuation ..vacancy reduction Assumptions Assumptions + Starting point 31.12.2023 * Starting point 31.12.2023 1 280k m? ar
Slide 16: EBITDA Driver — Efficiency
EBITDA Driver — Efficiency Improvements on OPEX and platform costs to increase profitability Development of adjusted EBITDA margin Sensitivity Analysis on Strategic Portfolio Assumptions * Starting point 31.12.2023 Target 2028 + Variable OPEX including property management costs of €27.3m * Peach pla
Slide 17: EBITDA Driver — ESG Capex
EBITDA Driver — ESG Capex Selective capex spend to improve portfolio quality and energy efficiency Development of historical ongoing Capex Sensitivity Analysis on Strategic Portfolio Assumptions * Starting point 31.12.2023 + 100% EBITDA effect of rent increase from vacancy reduction * Capex is spent
Slide 18: EBITDA Driver — Disposals
EBITDA Driver — Disposals Disposals of Non-Strategic assets over the next years to fund investments Sensitivity Analysis on Strategic Portfolio Sales buckets Assumptions * Starting Point 31.12.2023 with market values Condominiums * Different discounts for sales buckets ere hed * Net proceeds before
Slide 19: Scenario Cash Development for years
Scenario Cash Development for 5 years Key building blocks of our portfolio strategy to sustainably position Peach for the future Scenario EBITDA Development of the Strategic Portfolio” EBITDA Drivers Figures in €m sueak Joy UoeZIOWe JejNnbay Hulobuo s}so9 xodeD -22.46 9S] s}soo xadep uolyonpad A2UeD
Slide 20: Agenda
Agenda Peach Property at a glance Our Portfolio Strategy Key components to drive EBITDA Our Financing Strategy What is next? 0600006 Appendix ©peach 20
Slide 21: Debt structure as of December 31, 2023
Debt structure as of December 31, 2023 Expected interest increase impacts FFO significantly “incl hedges Maturity profile! 700 594 600 ~ 3 500 5 29% 400 5 & 290 3 300 5 nm 163 & 200 140 116 95 SS = | 2024 2025 2026 2027 2028 2029 > 2030 Unencumbered assets: €371m msecured unsecured m Corporate Bonds
Slide 22: Access criteria for incremental secured (bank) debt
Access criteria for incremental secured (bank) debt Focus on key requirements to reach target by 2028 Corporate Governance Platform/ Organizational structure Financial KPIs Requirements for secured financing capability Corporate Governance * Supervisory Board * Audit opinion * Certified external Str
Slide 23: EBITDA Drivers
EBITDA Drivers Key building blocks of our portfolio strategy to sustainably position Peach for the future Sensitivity on Debt volume with ICR and Market Interest Rate* Secured Debt in 2028 144.91 1.60x 1.70x 1.80x 1.90x 2.00x 4.50% €1'152.54m_ €1'084.74m €1'02448m €970.56m = €922.03m 4.25% €1'220.33
Slide 24: Agenda
Agenda Peach Property at a glance Our Portfolio Strategy Our Financing Strategy Key components to drive EBITDA What is next? Appendix ©peach 24
Slide 25: Peach's focus in 2024
Peach's focus in 2024 E2 Portfolio and platform optimization ESS Capital structure and optimization Start executing Portfolio Strategy Solution of unsecured debt coming due in 2025/2026 (bond, promissory notes, convertible) Ongoing efficiency optimisation on Peach platform level Early extension of s
Slide 26: Agenda
Agenda Peach Property at a glance Our Portfolio Strategy Key components to drive EBITDA Our Financing Strategy What is next? Appendix ©peach 26
Slide 27: The environment in H1 2024
The environment in H1 2024 Economy under pressure. Inflation rates declining. Real Estate prices seem to stabilize... GDP Germany! German Consumer Price Index ImmoScout24 WohnBarometert 10 3 1084 05% 5 ° mHouse Apartments 1083 0.4% 30 1082 03% 8 5 108.1 0.2% ye 25 108 01% ye 7 E50 107.9 0.0% 26 ¥ 10
Slide 28: Portfolio fully focused on residential space
Portfolio fully focused on residential space Rental income by use category as of December 31, 2023 Rental income breakdown by federal state as of December 31, 2023 In % of total rental income In % of target rental income Parking & other 2.6% 3.9% 2.8% 3.9% ine. Commercial Sevcusyear \ | = North Rhin
Slide 29: Typical properties in Peach's portfolio
Typical properties in Peach's portfolio
Slide 30: Peach Points — our regional tenant shops
Peach Points — our regional tenant shops Cornerstone of direct dialogue with our tenants CS Dortmund | & Il Munster / FaBberg Recklinghausen Helmstedt Marl Gelsenkirchen Essen Central point of contact for rental and adminis matters Oberhausen Witzenhausen Erkrath. Heidenheim \ 3 -e Ludwigshafen With
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