First Quarter 2019: On track to reach full year targets
– Sale of EUR180.6m (c.37%) of BCP’s commercial portfolio on 25 March 2019 at c.7.6% premium to the book equity value.
– Strong operational performance with l-f-l rental growth of 3.9%, YoY reduction in vacancy to 6.6% and increase in average in-place rent to EUR5.52 per sqm/month
– FFO increased by 52.1 %, EPRA NAV stable
Berlin, 15 May 2019 – During the first quarter of 2019 ADLER Real Estate AG completed the sale of first part of BCP’s commercial portfolio. In an initial transaction, three commercial units were sold, which accounted for approximately 37% of the total commercial portfolio with a total gross asset value of EUR 180.6m. The remaining commercial properties are expected to be sold opportunistically throughout the year. Non-core residential portfolio consisting of c. 3.700 units which were sold at the end of December have now been notarized with the final transfer of rights and obligations taking place during Q1 2019.
Operational metrics further improved
As of Q1 2019, ADLER’s portfolio comprised 58,105 units. Net rental income increased by 44.3% YoY to EUR 64.8m as of Q1 2019. Significant increase was driven by operational improvements achieved through internalization of property and facility management as well as the acquisition of BCP. Consequently, all the main key performance indicators improved. ADLER achieved like-for-like (l-f-l) rental growth of 3.9%, 170bps YoY decrease in vacancy rate to 6.6%. The average in-place rent increased to EUR 5.52 per sqm/month (Q1 2018: EUR 5.23 sqm/month).
Strong increase in FFO
As of Q1 2019 FFO I stood at EUR 21.6m, representing 52.1% YoY increase (Q1 2018: EUR 14.2m). Fully diluted FFO I per share amounted to EUR 0.27. Strong growth in FFO is reflecting positive operational performance and acquisition of BCP in April 2018.
Stable EPRA NAV
EPRA NAV remained stable compared to 2018-year end. As of Q1 2019 EPRA NAV (excl. goodwill and fully diluted) amounted to EUR 1,641.6m, 0.2% increase compared to EUR 1,639.0 as of Q4 2018. Diluted EPRA NAV per share (excl. goodwill) stood at EUR 20.81 (Q4 2018: EUR 20.77).
“With our continued good performance of the first quarter”, Tomas de Vargas Machuca, Co-CEO of ADLER Real Estate AG said, “ADLER Real Estate is well under way to meet its full-year targets once again in 2019, following successful takeover of BCP.”
Maximilian Rienecker, Co-CEO of ADLER Real Estate AG, added: “We remain committed to achieving our FY 2019 LTV target of c.55%. We will see further improvements with the sale of remaining of BCP’s commercial properties.”
The complete financial report of ADLER Real Estate AG for the first quarter 2019 is available on the company’s website (www.adler-ag.com).
Key financials Q1 2019
|In EUR millions|
|Consolidated Statement of Income||Q1 2019||Q1 2018|
|Net rental income||64.8||44.9|
|Earnings from property lettings||55.5||39.0|
|Earnings from the sale of properties||-0.4||0.9|
|Consolidated net profit||14.7||-12.8|
|FFO I per share in EUR 1)||0.32||0.21|
|Consolidated Balance Sheet||31.03.2019||31.12.2018|
|EPRA NAV per share in EUR 1)||23.86||23.84|
|LTV in % 2)||61.2||61.4|
|Cashflow||Q1 2019||Q1 2018|
|Net cash flow from operating activities||18.5||32.9|
|Net cash flow from investing activities||15.4||-222.3|
|Net cash flow from financing activities||-31.3||210.1|
|of which residential||57,202||49,216|
|Average rent (EUR/sqm/month)||5,52||5.23|
|Occupancy rate (%)||93,4||91.7|
|Number of employees||824||828|
|1) based on the number of shares outstanding as at balance sheet date
2) excluding convertible bonds
Your contact for enquiries:
Head of Investor Relations
ADLER Real Estate AG
Tel: +49 162 424 68 33