First nine months 2018: Outperforming 2018 guidance following strong operating performance – Guidance revised
– EPRA NAV increased by 19.8 percent to EUR 1,446.64 million compared to FY 2017
– Fully diluted, adjusted EPRA NAV/share (excl. goodwill) increased by 20.0 percent to EUR 18.45 compared to EUR 15.37 in FY 2017
– Net Rental Income increased by 38.9 percent yoy to EUR 173.3 million
– FFO I more than doubled (102.6 percent) to EUR 54.9 million compared to EUR 27.1 million in Q3 2017
– In-place rent increased by 6.7 percent yoy to EUR 5.45 per sqm/month whilst the core portfolio occupancy rate grew by 2.1 percentage points to 93.2 percent
– Upward revision for full year guidance
Berlin, 28 November 2018 – During the first nine months of 2018, ADLER Real Estate AG showed continued strong performance driven by its sustained focus on operational performance.
EPRA NAV increased by 19.8 percent to EUR 1,446.6 million compared to FY 2017
At the end of the third quarter 2018, EPRA NAV amounted to EUR 1,446.6 million, EUR 239.4 million more than what had been achieved at the end of last year (EUR 1,207.2 million). This corresponds to an increase of 19.8 percent. On a fully diluted basis and excluding goodwill, adjusted EPRA NAV per share increased by 20.0 percent to reach EUR 18.45 per share compared to EUR 15.37 as of FY 2017.
Net rental income increased by 38.9 percent yoy to EUR 173.3 million
Strong portfolio growth and improved operational performance alike contributed to a strong increase in net rental income which reached EUR 173.3 million in the first nine months of 2018 and was thus 38.9 percent higher than in the same period of the previous year (EUR 124.8 million).
FFO I increased by 102.6 percent to EUR 54.9 million compared to EUR 27.1 million in 9M 2017
FFO I for the first nine months of 2018 amounted to EUR 54.9 million, increasing by a staggering 102.6 percent compared to the same period in the previous year (EUR 27.1 million). On a fully diluted basis, FFO I per share increased to EUR 0.70 compared to EUR 0.34 for the first nine months of 2017.
In-place rent increased by 6.7 percent yoy to EUR 5.45 per sqm/month whilst the core portfolio occupancy rate grew by 2.1 percentage points to 93.2 percent
At the end of the third quarter of 2018, ADLER Real Estate operated a portfolio comprising of c.62,000 rental units in its portfolio, 16.4 percent more than one year ago. The portfolio growth is attributable to the acquisition of Brack Capital Properties N.V. which was fully consolidated at H1 2018. ADLER Real Estate showed significant operational performance resulting from the focus on operations and property lettings following the internalization of property and facility management. The average rent per square meter per month in ADLER’s core portfolio increased from EUR 5.11 to EUR 5.45 which corresponds to a 6.7 percent growth rate. On a like-for-like basis, the increase reflected a strong 3.6 percent yoy. The occupancy rate on ADLER’s core portfolio also increased by 2.1 percentage points in the third quarter, demonstrating the Company’s ability to generate significant organic growth.
Upward revision for full year guidance
Due to the strong operational performance of the first nine months, management of ADLER Real Estate AG has stepped up the guidance for the full financial year 2018. Net rental income is now expected to reach c. EUR 230 million and thus to exceed the former target range by at least EUR 10 million. FFO are expected to fall into a range between EUR 73 and 75 million compared to the previous guidance of EUR 68 to 73 million.
Tomas de Vargas Machuca Co-CEO said: „Investors should be reassured by the Company’s continued strong performance both in regard to NAV growth but crucially also with operational KPI’s. In the coming months we will continue to deliver strong results as we look to de-lever to an LTV of c.55 percent and seek rating improvements.“
Maximilian Rienecker Co-CEO added: „There is still significant upside potential and we look to deliver it with the addition of a new Head of Portfolio Management who will further improve portfolio KPI’s but also with a new Head of Investor Relations. Both will be joining our Executive Committee in order to deliver strong results in Q4 and for 2019“
The complete financial report of ADLER Real Estate AG for the first nine months of 2018 is available on the company’s website (www.adler-ag.com).
Your contact for enquiries:
Dr. Rolf-Dieter Grass
Head of Corporate Communication
ADLER Real Estate AG
Tel: +49 (30) 2000 91 429
Key financials 9M 2018
|In EUR millions|
|Consolidated Statement of Income||9M 2018||9M 2017|
|Net rental income||173.3||124.8|
|Earnings from property lettings||151.9||91.0|
|Earnings from the sale of properties||4.3||0.6|
|Consolidated net profit from continuing operations||164.3||11.4|
|Consolidated net profit||164.6||24.0|
|Diluted FFO I per share in EUR 1)||0.70||0.34|
|Consolidated Balance Sheet||30.09.2018||31.12.2017|
|Diluted adjusted EPRA NAV (excl. Goodwill) per share in EUR 1)||18.45||15.37|
|LTV II in % 2)||66.3||59.4|
|Cashflow||9M 2018||9M 2017|
|Net cash flow from operating activities||94.8||0.9|
|of which from continuing operations||94.5||41.2|
|Net cash flow from investing activities||-591.6||321.0|
|of which from continuing operations||-591.6||321.0|
|Net cash flow from financing activities||205.2||-329.2|
|of which from continuing operations||205.2||-341.2|
|of which residential||60.856||49,553|
|Average rent (EUR/sqm/month) core portfolio||5.45||5.11|
|Occupancy rate (%) core portfolio||93.2||91.1|
|Number of employees||815||535|
|1) based on the number of shares outstanding as at balance sheet date plus shares from assumed conversion of mandatory bond which is considered as equity, previous year’s figures adjusted accordingly
2) excluding convertible bonds
3)Adjusted due to sale of trading activities