– Core Portfolio to grow by c.12,000 units (c. 24 percent increase)
– Net Rental Income expected to grow between EUR 210 million – EUR 220 million (c. 25 percent increase)
– FFO I expected to increase between EUR 65 million – EUR 70 million (c.65 percent increase)
– LTV to be reduced to 55 percent
Berlin, March 26, 2018: Based on the expectation of a successful acquisition of Brack Capital Properties N.V., adding approximately 12,000 “core” residential units to the Company’s portfolio (c. 24 percent) and the significantly improved Group operations, ADLER has set itself once again ambitious objectives for 2018:
Net Rental Income is expected to increase by circa 25 percent to between EUR 210 and 220 million.
FFO I will profit strongly from operational improvements – which include the anticipated efficiency gains from the integration of all tenant-related services and the sharp drop in interest expenses related to the extensive debt repayments and refinancing carried out in 2017 as well as the expected acquisition of Brack Capital. In total, FFO I is expected to reach between EUR 65 to EUR 70 million in 2018. This would correspond to an increase of more than 65 percent compared to 2017.
LTV computed as Net Debt over Gross Asset Value (GAV) is expected to reach 55 percent in 2018 – after 59.4 percent at the end of 2017.
Further improvements are also expected for the WACD in 2018. ADLER expects the WACD to continue to decline to about 2.5 percent in the context of ongoing refinancing, portfolio purchases or projects.
Tomas de Vargas Machuca, Co-CEO of ADLER Real Estate AG said: “The significant efforts undergone in 2017 to transform ADLER to an integrated real estate company will be a significant contributor to our future success. Our operations and ongoing future capital structure improvements, together with our latest acquisition of Brack Capital Properties gives our Company the opportunity to deliver significant results in 2018 on the back of a very successful 2017.”
Maximilian Rienecker, Co-CEO added: “Our 2018 Guidance not only provides the opportunity for investors to look at ADLER as a genuine growth and value story, but is very much in line with our publicly known financial policy to reach Investment Grade as early as possible.”
|Results 2017||Targets 2018||∆ Target to
result in %
|Net rental income (EUR m)||170.3||210-220||c. 25|
|Occupancy rate in %||92.1||94||c.2 PP|
|Ø Rent EUR/square meter/month||5.21||5.40||c. 4|
|FFO I (EUR m)||40.5||65 – 70||c. 65|
|EPRA NAV (EUR m)||1,207.2||–||significantly up|
|LTV in %||59.4||55||c. – 4.4 PP|
|WACD in %||2.72||2.5||c. – 0.2 PP|