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ADLER Real Estate AG: ADLER Real Estate AG increases results considerably in 2013

ADLER Real Estate AG / Key word(s): Final Results

01.04.2014 / 11:22

ADLER Real Estate AG increases results considerably in 2013

- Cash flow from operating activities up to just short of EUR 11 million

- Fair value measurement of new investments

- Company aiming to double current portfolio

Hamburg, 1 April 2014. Thanks to a number of extensive investment programmes, ADLER Real Estate AG (ISIN: DE0005008007 / SIN: 500800), Frankfurt am Main, was able to generate significant growth in its financial, earnings and liquidity position in financial year 2013. Based on the annual financial statements approved by the Supervisory Board, ADLER's consolidated result according to IFRS rose to EUR 46.88 million (previous year: EUR 0.52 million). Other figures are also a testament to the success of the company's realignment programme, which is aimed at turning ADLER into a key owner and operator of large residential real estate portfolios. By the end of the reporting year, ADLER had holdings in residential real estate portfolios with roughly 7,800 units (previous year: 215).

ADLER was able to increase its operating result by a considerable margin through the management of real estate acquired in 2013. Adjusted EBITDA rose to EUR 4.67 million (previous year: EUR -2.31 million). All in all, the cash flow from operating activities rose significantly to EUR 10.91 million (previous year: EUR 0.45 million). Consolidated cash and cash equivalents climbed to EUR 5.87 million as of the 2013 reporting date (previous year: EUR 1.08 million). This cash flow also includes the proceeds from the successful sale of a portfolio that was only acquired in the spring. "These results show that our investment has been targeted at portfolios that were already in a position to contribute to consolidated cash flow in 2013," said Axel Harloff, CEO of ADLER Real Estate.

The measurement of the residential real estate portfolio carried out according to IFRS accounting rules had a major influence on the earnings position. The rules stipulate that portfolios are to be measured according to their respective market value or rather fair value on the basis of current expert valuations. In the reporting year, this method led to a major positive adjustment in the value of the portfolios. In total, fair value measurements rose to EUR 59.55 million (previous year: EUR 0.97 million). This accounted for the mayor share of operating income, which rose overall to EUR 78.24 million (previous year: EUR 5.85 million).

ADLER's growth was also reflected in revenues. For example, sales revenues rose to EUR 19.24 million in the reporting year (previous year: EUR 5.72 million) due to the effect of pro rata rental income from the consolidated portfolios. Likewise, the consolidated balance sheet is further proof of the enormous expansion of the company. Total assets rose to EUR 460.89 million (end of 2012: EUR 43.76 million), while, thanks to the considerable improvement in earnings, shareholders' equity climbed to EUR 86.95 million (previous year: EUR 26.45 million).

"Our efforts to expand the company will continue unabated this year," said Mr Harloff. Due to the acquisition of another residential real estate portfolio as at the end of the reporting year, which is only due to made up the balance in 2014, ADLER's current portfolio has grown to approx. 10,140 units. Moreover, ADLER is confident that the takeover bid submitted to the shareholders of ESTAVIS AG, Berlin, will be accepted. ADLER is aiming to acquire a majority interest in ESTAVIS and fully consolidate the company, which could see the consolidated portfolio potentially rise to approx. 16,500 units.

"We are looking to double the volume of our current portfolio," said Mr Harloff. ADLER already has access to the funding required for the acquisition of further portfolios. Last Friday, the company ends the private placement of another corporate bond with issuance volume totalling EUR 50 million.

For inquiries please contact

Press: german communications dbk ag
Jörg Bretschneider
Alsterufer 34, 20354 Hamburg
Tel.: +49 (0) 40/46 88 33 0,
Fax: +49 (0) 40/47 81 80,

Investor Relations: Hillermann Consulting
Christian Hillermann
Poststraße 14, 20354 Hamburg
Tel.: +49 (0) 40/32 02 79 10
Fax: +49 (0) 40/32 02 79 114

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