Peach Property Group AG repaid approximately EUR 170 million in debt during the first half of 2026, reducing its total leverage to roughly EUR 850 million from about EUR 1 billion, CEO Gerald Klinck told analysts on the company's earnings call.
The deleveraging advance also brought the group's loan-to-value ratio down to 45%, from roughly 50%, reaching the firm's 2028 target well ahead of schedule. The debt-to-EBITDA multiple improved to 15.5 times from 20 times; the company is targeting 12 times by 2028.
Adjusted EBITDA rose 25% year over year to about EUR 30 million in the half. Full-year 2026 funds-from-operations guidance remains unchanged at EUR 17 million to EUR 19 million, while the long-term target for 2028 sits at EUR 30 million to EUR 32 million.
"On an annualized basis, we were almost done with our top line growth," Klinck said. "Good on track, but we have to close a little bit here to achieve the 100% target for 2026." On leverage he added: "LTV as I mentioned, we achieved that target — 45%. This is still our target for 2028 and onwards."
Peach also fully repaid its convertible bond in the first half of the year, clearing a significant maturity obligation. The next major debt maturity does not surface until 2028, when a EUR 60 million facility comes due alongside another facility carrying a two-year extension option. Average cost of debt rose only marginally to just above 4%. All remaining borrowings are secured, and 90% carry fixed rates.
Operating metrics continued to improve. Like-for-like rent growth reached 5.1% in June 2026 on a year-over-year basis, approaching the company's 6% annual ambition. Net cold rent per square meter climbed 3.2% over the half, with a 2028 target of above EUR 7 per square meter. Vacancy fell to 3.3% from 6.3% a year earlier, and the company expects to push it below 3% — specifically toward 2.8% — by year-end 2026. Bad debt and rent-collection losses dropped sharply to 1.1% from 4.4% in 2025.
Net operating income margin on the strategic portfolio improved to 75%, against an 80% target for 2028. The group also recorded EUR 5.4 million in operating-cost savings in H1 against a full-year target of EUR 6 million to EUR 7 million.
The strategic portfolio now accounts for 80% of total assets, up from 74% at the end of 2025, and is expected to approach 100% by the end of 2027. That portfolio targets roughly 16,000 residential units concentrated in Germany's North Rhine-Westphalia region. Roughly 3,700 non-strategic units remained on the disposal list as of end-June, with an additional 700 units notarized for sale after the half-year cutoff, leaving about 3,000 units to be disposed of through the remainder of 2026 and into 2027.
Swiss operations have been consolidated, with accounting functions moved to Cologne and controlling moved to Berlin as of December of last year. The lakeside development project named Peninsula is 100% notarized, with roughly half the ownership change already completed; the balance is scheduled for the first half of 2027. Remaining yielding Swiss assets reached agreement for handover in July.
Peach's stock closed at 5.83 Swiss francs, up 3.2% from the previous session's 5.65 CHF. The share has declined roughly 25% year to date, trading between a 52-week low of 5.11 CHF and a high of 8.18 CHF. Analyst consensus remains a "Strong Buy," with price targets ranging from $8.89 to $10.59.
