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ADLER Real Estate AG: Successful bond increase of EUR 50 million

ADLER Real Estate AG / Key word(s): Miscellaneous

16.07.2014 / 17:30

ADLER Real Estate: Successful bond increase of EUR 50 million

- Successful increase of corporate bond 2014/2019 to EUR 100 million

- Coupon of 6.00 percent p.a. with interest paid semi-annually

- Private placement transaction

- Foundation set for further growth

Hamburg, 15 July 2014. ADLER Real Estate Aktiengesellschaft ("ADLER Real Estate," ISIN: DE0005008007 / WKN: 500800), Frankfurt am Main, Germany, has set the foundation for further significant expansion in the second half of 2014 on the back of significant growth in the first half of the year. The corporate bond 2014/2019, which was issued in April this year, was increased by EUR 50 million to EUR 100 million and fully placed within hours in a private placement transaction. "This transaction provides us with additional capital to invest actively in the acquisition of residential property portfolios across Germany," says Axel Harloff, CEO of ADLER Real Estate. Following the takeover of ESTAVIS AG, Berlin, and recent portfolio acquisitions spanning some 8,500 residential and commercial properties worth roughly EUR 409 million, ADLER Real Estate has firmly established its position as a medium-sized residential property owner in Germany in just two years, now managing some 25,000 units. "We continue to pursue our goal of acquiring residential properties with long-term value and earnings potential," continues Harloff. "These properties are predominantly located in B-locations of German metropolitan areas, providing recurrent rental income that contributes to the success of the company as a whole."

Investors and shareholders who did not participate in the corporate bond 2014/2019 increase placement may buy securities over the stock exchange. The bond (ISIN: DE000A11QF02 / WKN: A11QF0) has already been trading on the Open Market of the Frankfurt Stock Exchange. From 21 July 2014 onwards, the bond is set to be traded on the Prime Standard for corporate bonds. An application has already been submitted for admission to this higher transparency segment, which requires approval by the Frankfurt Stock Exchange. The corporate bond has a term of five years and a coupon of 6.00 percent p.a.; interest is paid semi-annually. The first bond tranche has been trading since early April and the price has increased from par value to 101.4 percent (closing price on the Frankfurt Stock Exchange on 14 July 2014). Close Brothers Seydler Bank AG, Frankfurt am Main, Germany, and Berenberg (Joh. Berenberg, Gossler & Co. KG), Hamburg, Germany, managed the placement of the increased bond transaction as Joint Global Coordinators and Bookrunners.

"Despite the further expansion of liabilities due to the bond increase, we want to improve the value ratios in the ADLER Group," Harloff says. The ADLER Group's loan-to-value ratio (LTV), an important performance indicator for real estate companies, has already been improved. According to initial estimates from ADLER, the LTV ratio has decreased to just over 65 percent as of 30 June 2014 (end of 2013: 71 percent). Estimates also show the significant growth of the balance sheet, with total assets increasing to roughly EUR 1.25 billion as of the end of the first half of 2014. At the end of the first quarter of the year, total assets amounted to EUR 540.9 million.

"Both quantitative and qualitative growth remain our objectives and we want to increase our earnings, in particular, our cash flows, even further," says Harloff. Other pending acquisitions will provide a further boost to net rental income, which will come in at roughly EUR 77 million over a 12-month period according to the latest projection, and to cash flow, which is set to reach approximately EUR 20 million on a 12-month basis according to recent forecasts.


This communication does not constitute an offer to sell or an invitation to make an offer to purchase or sub-scribe securities. No public offer of bonds of ADLER Real Estate AG is being made.

The distribution of this communication may be restricted by law in certain jurisdictions. Persons who come into possession of this communication are requested to obtain appropriate information about the relevant legal requirements and to comply with these. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This communication is not intended for distribution in or within the United States of America, Canada, Australia or Japan or in other jurisdictions where an offer or a solicitation of an offer is restricted by law. This communication does not constitute a public offer for securities in the United States of America. The bonds have not been and will not be registered under the U.S. Securities Act of 1933 in its respectively recent version (the "Securities Act") and may be offered or sold in the United States of America only based on a registration or an applicable exemption from registration requirements under the Securities Act.

For inquiries please contact:

Press: german communications dbk ag
Jörg Bretschneider
Milchstr. 6 B, 20148 Hamburg, Germany
Phone: +49-(0)40/46 88 33 0, Fax: +49-(0)40/47 81 80

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

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