DGAP-News: ADLER Real Estate AG: Solid performance for first quarter - well positioned for the future

ADLER Real Estate AG announces solid performance for first quarter - well positioned for the future

- Solid operational performance with like-for-like rental growth of 2.3%, YoY vacancy decrease to 6.2% and in-place rent increase to EUR 5.6 per sqm/month

- Net rental income stood at EUR 60.2m following optimization of portfolio through disposal of non-core assets

- FFO I reached EUR 19.1m

- EPRA NRV stood at EUR 2,121.0m

- We expect no material impact on FFO in 2020 from COVID-19 with rent deferrals relating to COVID-19 currently at merely 1.4%

Berlin, 18 May 2020 -- ADLER Real Estate AG ("ADLER" and together with its consolidated subsidiaries, the "Group") remains committed to the safety and wellbeing of the Group's employees and tenants during the COVID-19 pandemic. The ADLER Group is complying with Public Health and Government guidance to ensure everyone's safety and to limit the spread of COVID-19.

ADLER announced today its interim financial results for the first quarter of 2020 reporting a solid performance, which has seen limited impact from COVID-19. Currently, rent deferrals related to COVID-19 stand at only 1.4% of ADLER's total monthly rental income and are split into 0.1% of the residential rent and 1.3% of the commercial rent.

Financial key performance indicators were mainly impacted by disposal of non-core residential properties and BCP's retail portfolio aimed to optimize our portfolio. Some 3,700 non-core residential units with gross asset value (GAV) of EUR 179.2m were sold, with transaction completed in Q1 2019. Throughout 2019, we sold c. 71% of BCP's retail assets with GAV of EUR 341.1m.

Net rental income of EUR 60.2m
As of Q1 2020, ADLER's portfolio comprised of 58,190 units. Net rental income decreased by 7.1% to EUR 60.2m (Q1 2019: EUR 64.8m). This decrease was mainly driven by disposal of non-core residential units and BCP's retail portfolio throughout 2019, partially offset by operational improvements with all of the ADLER's main key performance indicators improved. ADLER achieved like-for-like rental growth of 2.3% and decreased its vacancy rate year-on-year to 6.2%. The average in-place rent increased to EUR 5.6 per sqm/month (Q1 2019: EUR 5.5 sqm/month).

FFO I reached EUR 19.1m
FFO I amounted to EUR 19.1m, representing a 11.6% decrease YoY (Q1 2019: EUR 21.6m). On a fully diluted basis, FFO I per share amounted to EUR 0.24 (Q1 2019: EUR 0.27). Decrease in FFO I mainly reflects disposal of non-core residential portfolio and BCP's retail portfolio throughout 2019.

EPRA NRV now at EUR 2,121.0m
EPRA NRV (excluding goodwill and on a fully diluted basis) amounted to EUR 2,121.0m, a 3.9% decrease compared to EUR 2,206.2m as of Q1 2019. The corresponding diluted EPRA NRV per share was at EUR 26.55 (Q1 2019: EUR 27.62).

Cooperation with ADO makes significant progress
ADLER's cooperation with ADO is progressing well and the combined group is capitalizing on the benefits of the transaction. The cooperation is being led by a dedicated and experienced Cooperation Management Office. The combined group is ahead of schedule in realizing its operational synergies of EUR 6.5m run rate expected for 2020. In addition, the combined group is seeking to simplify its corporate structure to unlock further shareholder value. To cover the entire asset-lifecycle effectively, a link between the "Build to Hold" and "Manage and Service" business lines has been established.

Delivering a leader in residential real estate
ADLER's successful combination with ADO was completed on April 9, 2020 and is on track to create one of the largest listed residential real estate companies in Europe. The combination of the two companies will result in approximately EUR 8.6bn in combined residential assets as of 31 March 2020. ADO's high-quality Berlin portfolio will be complemented by ADLER's Germany-wide portfolio, focused on German cities with attractive upside potential. The diversified, residential-focused portfolio of the combined group and its robust financial position enable it to navigate any headwinds resulting from COVID-19.

In light of the ongoing housing shortage in Berlin and other densely populated regions in Germany, the combined group is committed to providing solutions through accelerating the construction of new residential units.

We will be hosting a conference call today, 18 May 2020, at 3pm CET / 2pm GMT / 9am EDT. For dial in details and link to the webcast please follow the below link:
https://adler-ag.com/en/investor-relations/financial-calendar/

Your contact for enquiries:
Tina Kladnik
Head of Investor Relations
ADLER Real Estate AG
Tel: +49 (162) 424 6833
[email protected]