Peach Property Group AG reported a sharper recovery in its first half of 2026, cutting total debt by EUR 168 million and slashing its strategic portfolio vacancy rate to 3.3% from 6.3% a year earlier, as the Swiss-listed German residential landlord continued a two-year transformation aimed at refocusing on its North Rhine-Westphalia core.
Adjusted EBITDA rose to EUR 29.9 million from EUR 23.8 million in the prior-year period, a 25% increase. The improvement was driven mainly by a EUR 3.3 million reduction in letting expenses tied to lower vacancy and EUR 1.1 million in cut personnel costs from restructuring, partially offset by a EUR 0.3 million drop in target rent from ongoing non-strategic asset sales, the company said.
Funds from operations came in at EUR 8.9 million, or EUR 0.16 per share, down slightly from EUR 9.4 million in HY 2025. Full-year FFO guidance was set at EUR 17–19 million.
The firm disposed of roughly 2,054 residential units during the period, reducing its non-strategic portfolio to approximately 3,000 units valued at EUR 185 million, all of which is slated for disposal by end-2027. The strategic portfolio now accounts for 80% of total assets, up from 74% at year-end 2025. Investment property fair market value rose about 1% to EUR 1,810 million.
Like-for-like rental income grew 5.1% on an annualized basis from HY 2025 to HY 2026, with full-year growth projected at around 6%. Net cold rent climbed 3.2% to EUR 6.68 per square meter, carrying an estimated 13% embedded upside to market rents. The net operating income margin on the strategic portfolio improved to 75%.
On the balance sheet, total debt fell to EUR 854 million from EUR 1,022 million at year-end 2025. The loan-to-value ratio dropped to 45.2% from 49.2%, reaching the company's 2028 target ahead of schedule. The debt-to-EBITDA multiple tightened to 15.5x from above 20x a year earlier, with a 2028 aim of 12–13x.
No significant debt maturities are due until March 2028, when approximately EUR 60 million comes due. About 90% of outstanding debt carries fixed rates, including hedges, and the weighted average cost of debt rose modestly to 4.15% from 3.89%.
During the period, Peach repaid its EUR 54 million convertible bond, secured EUR 62 million in new financing from a German bank in August, and completed a CHF 10 million tender offer for hybrid bonds, with CHF 4.7 million in nominal value tendered. Castlelake facility arrangements were also referenced in connection with the financing activity.
Rental collection risk fell sharply to 1.1% from 4.4% a year earlier. Net operating yield based on target rent stood at 6.5%, with a target rent multiple of 15.5x and a value per square meter of EUR 1,405.
The company, which oversees approximately 20,000 residential units across Germany, moved its Swiss corporate functions to Berlin. CEO Gerald Klinck said the business remained on track to deliver full-year guidance despite a challenging European real estate environment.
On ESG, Peach earned a CDP B-rating in 2025 and retained its EPRA Gold sustainability reporting award. Scope 1 and 2 greenhouse gas intensity declined to 24.9 kg CO2e per square meter from 26.9 in 2023, while building energy intensity fell to 121 kWh per square meter from 140. The workforce grew to 225 employees, with women making up 50% of staff. Capital expenditure totaled EUR 13.2 million in the first half, with 64% directed toward tenant improvements and 36% toward ordinary maintenance.
