Peach Property Group Ag · SIX:PEAN
Peach Property — H1 2024 Earnings Presentation
50 slides from Peach Property's earnings presentation, Aug 22, 2024
Slide 1: HY 2024 Results
HY 2024 Results August 22, 2024 ©peach PROPERTY GROUP
Slide 2: Today's Presenter
Today's Presenter Gerald Klinck Chief Executive Officer * CEO of the Peach Pro} April 2024 dition to his role as operty Group, he also takes over the responsibilities of the CFO * He has more than 25 years of experience in the real estate industry ®peach
Slide 3: Peach Property at a glance
Peach Property at a glance Affordable German residential properties in selected B-cities June 30, 2023 Dec 31, 2023 aw Fy Rental income €59.8m €120.9m wy Actual Rent per sqm € 6.11 €6.20 Peach Property Group 2 4 iy ERE Per sal = owns 727 000° ? Portfolio Market Rent per sqm 1 €717 €731 residential u
Slide 4: Agenda
Agenda 1. Executive Summary 2. Operational and Financial Performance 3. Update on ESG 4. Overview of Balance Sheet 5. Guidance 6. Appendix
Slide 5: What happened so far in 2024
What happened so far in 2024 New CEO Effective 15 April 2024, Gerald Klinck became the new CEO of Peach Property Group AG FY 2023 Results Financial year 2023 shows best operating results in Group's history BoD Chairman Equity raise Issue of 1.93 million new shares with an issue volume of EUR 17.2 mi
Slide 6: Our portfolio strategy
Our portfolio strategy Focus on Strategic Assets to create EBITDA growth (=) 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 ——___ ee Privatization potential (declaration o
Slide 7: Strategic Focus and Portfolio Optimization
Strategic Focus and Portfolio Optimization Continue operational improvement of Strategic Portfolio while monetizing Non-Strategic Portfolio Strategic (76%) 20 630 units 44 locations 6.40 €/m? in-place rent vs. 7.51€/m? market rent * 6.1% vacancy (based on units) €1 835m FMV / 44% Secured LTV Operati
Slide 8: Financial KPIs on potential Equity Raise
Financial KPIs on potential Equity Raise New emission of CHF 5.00 per share generates approx. €120m new cash Equity Raise Invitations will be sent out in early September Doubling of shares, subscription rights trading, 5.00 CHF with an outcome of 120 million in equity * EGM will take place on Septem
Slide 9: Agenda
Agenda 1. Executive Summary 2. Operational and Financial Performance 3. Update on ESG 4. Overview of Balance Sheet 5. Guidance 6. Appendix
Slide 10: Sustained rental growth
Sustained rental growth On track with 1-f-1 rental increase and still upside to market rents Net cold rent growth without modernization effects + Anticipated sources of rental growth target Figures in € / sqm 745 ~50% 40-45% LL growth ~20% target ~30% Fluctuation Vacancy reduction Increase Target in
Slide 11: Increase in vacancy due to revision of renovation plan
Increase in vacancy due to revision of renovation plan Vacancy in strategic portfolio leads to future rent upside Development of vacant residential units and vacancy ratio Strategic 2190 2121 FY 2020 FY 2021 FY 2022 FY 2023 HY 2024 Increase in vacancy rate due to deferred refurbishment measures ®pea
Slide 12: Operating costs in HY 2024
Operating costs in HY 2024 Administration costs are moving into the right direction; future focus is on REM Repair & Maintenance in € per sqm p.a. Administration in € per sqm p.a. Comments 6.00 + The increase in maintenance expenses is 1097 a mostly due to inflation-related price : 4.98 i og increas
Slide 13: Platform costs in HY 2024
Platform costs in HY 2024 Clear focus on increasing EBITDA in line with improvement of EBITDA margin Personnel expenses in €m Other operating expenses in €m Comments 10.06 * Operating costs incl. € 1.3m right-offs and . 897 bad debt allowances of 2022 ancillary cost 16.72 17.48 DES 799 . billing rec
Slide 14: EBITDA bridge HY 2023 to HY 2024
EBITDA bridge HY 2023 to HY 2024 Due to one-off effects HY 2024 cannot be annualized ra WU Comments * Inflation and increase of REM 16 |] | a overcompensated by rental income increase 7 32.1 + Disposal effects are not part of the -13 | | operational EBITDA -07 30.9 + Other operating expenses incl. €
Slide 15: Operational KPIs in HY 2024
Operational KPIs in HY 2024 Number of residential units Actual rental income (€m) Target rental income (€m) Adjusted EBITDA (€m) HY 2023 27541 HY 2023 59.8 HY 2023 68.2 HY 2023 32.1 CS) o © ©) HY 2024 27 292 615 70.7 HY 2024 30.9 Vacancy Actual rental income per sqm* Target rental income per sqm? EB
Slide 16: CAPEX is coming back on track
€m CAPEX is coming back on track In the first six months we almost spent the same amountas in the FY 2023 CAPEX HY 2024 Figures in €m 70 60 | €10.8/sqm | 50 40 = CAPEX Measures 30 = Tenant Improvements 20 + EUR 17.0m (o/w approx. 10 63.5% Tl and 36.5% Capex) spent in HY 2024 22.5 41.60 57.60 19.1 ie
Slide 17: Sales in HY 2024
Sales in HY 2024 Selling small-scale assets leads to prices close to fair market value frome . & ™~? SNe a ‘ of a warn, & i) J — J ‘ iy Telgte Hametn d ; solingen 4 ue ‘ ‘ ~ yA a ‘y / Heiderheim fy / a / +) ene aw) Units (residential) Book value In thousands Sales price In thousands Secured debt In
Slide 18: Portfolio valuation
Portfolio valuation Devaluation reached bottom line and value per sqm far below new construction cost Valuation result HY 2024 Key valuation indicators 2 ™ Operational progress & discount rate Dec 31, 2023 mlnitial valuation Total f = Total revaluation loss as % of investment properties otal fair ma
Slide 19: Debt structure as of June 30, 2024
Debt structure as of June 30, 2024 Refinancing of Promissory Notes and Bond in progress Maturity profile! 700 578 600 3 g 5 500 3 fa = 400 5 289 300 g 3 162 as mS 13 14 100 2 = i cts 2024 2025 2026 2027 2028 2029 > 2030 Unencumbered assets: €368m ‘As of June 30, 2024 msecured “unsecured =Corporate B
Slide 20: Financial KPIs in HY 2024
Financial KPIs in HY 2024 Portfolio market value in €m 4 Debt volume in€m FFO I (€m) Debt/EBITDA multiple? HY 2023 25701 fered OSIM HY 2023 0.476/share__ OM HY 2023 a a - S VIM HY 2024 < 89 22.7K = 3 ie} Multiple on target rent EPRA NTA (€/share) Loan-to-value jy 2023 = Fa HY 2025 Cn) 20% [ees RE HY
Slide 21: Agenda
Agenda 1. Executive Summary 2. Operational and Financial Performance 3. Update on ESG 4. Overview of Balance Sheet 5. Guidance 6. Appendix
Slide 22: Sustainability Report 2023 published
Sustainability Report 2023 published Affordable and sustainable living spaces * Second Sustainability Report in accordance with the Global Reporting Initiative (GRI) standards ty. i * Published on May 10, 2024; available on https://www.peachproperty.com/en/news- en/sustainability-reports/ (} 2 % 8 M
Slide 23: Further implementation of energy-efficient solutions
Further implementation of energy-efficient solutions : : Focus in 2024 Cooperation with Paul Tech * Cooperation with Paul Tech: Installing digital valves to achieve dynamic hydraulic balancing as well as precise control of volume flows and system temperatures + Steadily expanding the smart meter inf
Slide 24: Tenant satisfaction
Tenant satisfaction “One-touch” rate 90.0! 2020 2021 2022 2023 HY 2024 Ata consistently Tenant satisfaction high level 78.05 2020 2021 2022 2023 HY 2024 Tenant inquiries Tenant tickets received 86 287 Peach Points Incl. externals Time to resolve queries directly by Peach Points 19.6h Time to resolve
Slide 25: Agenda
Agenda 1. Executive Summary 2. Operational and Financial Performance 3. Update on ESG 4. Overview of Balance Sheet 5. Guidance 6. Appendix
Slide 26: Consolidated statement of income (I/II)
Consolidated statement of income (I/II) Figures in EUR thousands Rental income Valuation gains from investment properties Profit on disposal of investment properties Income from development properties Other operating income Operating income _/. Expenses from letting of investment properties _/. Valu
Slide 27: Consolidated statement of income (II/II)
Consolidated statement of income (II/II) Figures in EUR thousands EBIT Financial income ./. Financial expenses EBT J. Income taxes Results after taxes attributable to Peach Property Group AG equity holders attributable to non-controlling interests Basic earnings per share for loss in EUR Diluted ear
Slide 28: Funds from operations (FFO)
Funds from operations (FFO) Figures in EUR thousands EBIT Depreciation and amortization EBITDA _/. Reversal of impairment loss on development properties ./. Valuation result of investment properties _/. Net result on disposal of investment properties Share-based compensation Other non-cash accrued e
Slide 29: Consolidated statement of financial position (I/II)
Consolidated statement of financial position (I/TI) Figures in EUR thousands June 30, 2024 Dec 31, 2023 Comments Cash & Cash equivalents 22 661 21555 Trade receivables 9045 13.962 . 5 Other receivables mG 15687 @ Peninsula Coe aaa ees reflects development Current financial receivables 1042 Progress
Slide 30: Consolidated statement of financial position (II/II)
Consolidated statement of financial position (IT/TI) Figures in EUR thousands Trade payables Other payables and advance payments Current income tax liabilities Current financial liabilities Current provisions Total current liabilities Non-current financial liabilities Non-current provisions Employee
Slide 31: Agenda
Agenda 1. Executive Summary 2. Operational and Financial Performance 3. Update on ESG 4. Overview of Balance Sheet 5. Guidance 6. Appendix
Slide 32: Guidance & mid-term financial targets
Guidance & mid-term financial targets Guidance FY 2024 Guidance FY 2024 Update Net Rental Income L-f-l rental growth FFO| Dividend Policy (-f-L rental growth >4% €124 - 126m Net Rental Income €122 - 124m 2 Ht x €17- 19m FFO| €17 - No dividend for 2024; Guidance update will follow at the end of the y
Slide 33: Appendix
©peach PROPERTY GROUP Appendix
Slide 34: Our Management
Our Management Highly skilled and experienced Executive Management and Board of Directors Executive Management Gerald Klinck ® Chief Executive Officer, CFO responsibilities : CURE = aisete \ AMG yonovia Board of Directors , Michael Zahn Chairman of the ; a Board © peutscHt Freshfields EifRestructuri
Slide 35: 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 36: Portfolio structure as of Jun 30, 2024
Portfolio structure as of Jun 30, 2024 Investment properties €26m (1%) Total portfolio market value Development properties €75m (3%) s €2 445m DPEACh __— Mervaver setrinedey woetPatner AGas oI 30, 2024, rung raheor we sss
Slide 37: Rent potential in strategic & non-strategic portfolio
Rent potential in strategic & non-strategic portfolio Strategic Non-Strategic Figures in € / sqm Figures in € / sqm 751 727 6.40 6.23 6.01 6.08 6.23 | @in-place rent @in-placerentDec @ in-place rent @ market rent June @ in-place rent Dec@ in-place rent Dec @ in-place rent @ market rent June June 30,
Slide 38: Portfolio fully focused on residential space
Portfolio fully focused on residential space Rental income by use category as of June 30, 2024 Breakdown of residential units by federal state as of June 30, 2024 In % of total rentalincome In % of target rental income Parking & other 8% Strategic Portfolio Commercial 3.0% 2.9%37: 1 9} 37% previous
Slide 39: Typical properties in Peach's portfolio
Typical properties in Peach's portfolio 39
Slide 40: Peach Points — our regional tenant shops
Peach Points — our regional tenant shops Cornerstone of direct dialogue with our tenants Dortmund | & Il Munster / FaBberg Recklinghausen Mart Helmstedt Gelsenkirchen Lower Serany Essen Central point of contact for rental and admini matter Oberhausen Witzenhausen Erkrath. Heidenheim Kaiserslautern’
Slide 41: Top locations of the Peach portfolio
Top 20 locations of the Peach portfolio ion Kaiserslautern Dortmund Marl Gelsenkirchen Oberhausen Bochum Heidenheim Essen Ludwigshafen Velbert Helmstedt Recklinghausen Minden Neukirchen-Vluyn Duisburg Schéningen Bielefeld Herne Erkrath Munster Others incl. CH Rhineland-Palatinate NRW NRW NRW NRW NRW
Slide 42: Development project in CH «Peninsula Wädenswil»
Development project in CH «Peninsula Wadenswil» 57 condominiums in 5 buildings Total sales volume expected CHF 130-140m Sales status as of June 30, 2024 Construction status as of June 30, 2024 * Notarized: 1 residential unit (Dec 31, 2023: 33). + Stage of completion: 21.0% (Dec 31, 2023: 11.5%). + —
Slide 43: Consolidated statement of cash flows
Consolidated statement of cash flows Figures in EUR thousands June 30, 2024 June 30, 2024 Result before taxes -92054 Payments for real estate companies | sd Payments for equipment | sti - 348 Adjustments for non-cash expenses/income Disposal of equipment rt—iOY 18 Depreciation and amortization 1011
Slide 44: Loan-to-value and interest coverage ratio
Loan-to-value and interest coverage ratio LTV ICR Figures in EUR thousands June 30, 2024 Dec 31, 2023 Figures in EUR thousands TS) eve June 30, 2023 Market value of real estate investment EBIT -11920 -70 238 portfolio 2 3697: 2 408 473 Market value of real estate development 28 153 25598 Depreciatio
Slide 45: EPRA NRV & NTA
EPRA NRV & NTA Figures in EUR thousands. Equity attributable to Peach Property Group AG equity holders ./, Hybrid instruments Diluted NAV at fair value ./, Deferred tax in relation to fair value gains ./. Fair value of derivative financial instruments ./. Intangibles Acquisition costs (assumption 7
Slide 46: Energy KPIs of Peach Portfolio
Energy KPIs of Peach Portfolio Distribution of energy efficiency classes Source of heat energy & supply 7 [20% 3%} 146.5 k Gas =District Heating = Electricity = Oil [23% mcentral m decentralized German CO, levy Share tenant = Share landlord 1% 10% 20% 1% 1% 50% % 70% 80% 95% 10% 30% 40% 1 50% 1 gq%
Slide 47: Capital market development
Capital market development Credit ratings (Corporate Rating) Recent capital market transactions Issue of 1.93 million new shares with an issue volume of EUR 17.2 million BB H BB BB Secured financing of EUR 33 million FitchRatins | BB Convertible bond 3.0% CHF 50.0 million; conversion price CHF 15.00
Slide 48: Share data
Share data Significant shareholders! as of June 30, 2024 749% 28.59% 8.87% 9.35% Ares Management Corporation, through: Peak Investment S.a.r.. = Rainer- Marc Frey, through: H21 Macro Limited = Beat Frischknecht, Switzerland = Franciscus Zweegers, through: Arquus Capital N.V. and LFH Corporation SA.
Slide 49: Disclaimer
Disclaimer 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, reasonable. Forward-loo
Slide 50: Investors, Analysts and Media
Investors, Analysts and Media Gerald Klinck, Chief Executive Officer Vanessa da Cruz, Head of IR +41 44 485 50 31 investors@peachproperty.com