Vacancy rate halved; sales are clearing up the legacy issues

Peach Property Group has reported a significant operational boost for the first half of 2026. Falling vacancy rates, higher like-for-like rents and the largely completed sale of around 2,000 units are stabilising both cash flow and the capital structure.

The momentum is coming from two directions. In the strategic portfolio, the vacancy rate fell to 3.3 per cent as at 30 June 2026, down from 6.3 per cent a year earlier, whilst net rental income on a like-for-like basis rose by 5.1 per cent to €42.3 million in the first half of the year.

At the same time, the Group is continuing to divest its non-strategic portfolio. The sale of around 2,000 residential and commercial units, which was formalised in December 2025, was largely completed in the first half of 2026, with more than 85 per cent of the proceeds already received. This resulted in a net cash inflow of over €40 million.

Profitability on the rise
According to the preliminary half-year figures published on 31 August 2026, adjusted operating profit rose by around 25 per cent to approximately 30 million euros. Funds from operations increased from €6.7 million to around €9 million. For portfolio holders and financiers, this is more than just a snapshot. The group is demonstrating that operational improvement and portfolio streamlining can be achieved simultaneously, even though sales initially reduce the earnings base.

Targets remain ambitious
The company is sticking to its full-year forecast. Funds from operations of between 17 and 19 million euros are expected for 2026. Within its strategic portfolio, the group is targeting like-for-like rental growth of around 6.0 per cent and a vacancy rate of around 3.5 per cent by the end of the year. Compared with the 3.3 per cent vacancy rate now achieved as at the end of June, this target appears conservative, suggesting possible fluctuations over the course of the year or portfolio-related effects.

Non-strategic portfolio continues to shrink
In addition, a further 292 units were transferred; 359 units had already been notarised as at the end of August 2026. Based on these transactions, the remaining non-strategic portfolio comprises around 3,000 units with a market value of approximately 185 million euros. At the end of 2025, the figure stood at 5,399 units. For the property portfolio, this means a clearer distinction between the yield-oriented core portfolio and divestment positions, which is intended to further simplify the capital structure.