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Dr. Rolf-Dieter Grass
Head of Capital Markets

Tel: +49 30 2000 914 29
Mobil: +49 172 386 255 8
Fax: +49 30 639 6192 28
r.grass@adler-ag.com

Berlin, den 10 April 2017 – ADLER Real Estate Aktiengesellschaft (ISIN DE0005008007) decided today to tap its 2015/2020 corporate bond (EUR 350 million; 4.75%) (ISIN XS1211417362, WKN A14J3Z) with target proceeds of EUR 100 million in a private placement significantly above par corresponding to a tighter yield of c. 2.6%. The resulting net proceeds will predominantly be used in connection with the acquisition of property portfolios, the ongoing refinancing of liabilities with higher interest rates and for general corporate purposes.

In this context, ADLER Real Estate today also decided to call its 2014/2019 corporate bond (EUR 130 million, 6%) (ISIN DE000A11QF02, WKN A11QF0) and to redeem it as of May 10, 2017 at 101.5 % of its nominal value plus interest accrued to this day (exclusive).

Arndt Krienen, CEO of ADLER Real Estate AG commented: “We intend to grow further in 2017. We already took a first step in the first quarter by acquiring around 700 residential units in the Greater Bremen region and we are currently reviewing other portfolios. By tapping the corporate bond, we are creating additional financial capabilities in order to acquire property portfolios at short notice and favourable conditions. This will both increase our flexibility in regards to acquisitions and improve our performance as a result of our ongoing refinancing.”

“Moreover”, adds Krienen, “we are now implementing what we have communicated for some time, namely repaying liabilities with higher interest rates. Our group company ACCENTRO took a similar step two weeks ago and called a bond with a volume of EUR 10 million with a 9.25 % coupon. With the proceeds from the sale of the conwert shares to Vonovia we have also repaid short-term loans amounting to EUR 200 million and higher yielding long-term liabilities of EUR 27 million.”

Overall, the measures decided today will further reduce the company’s interest expense, increase its FFO and will not affect the guided target of reaching 55% LTV by the end of 2017.