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ADLER Real Estate AG: ADLER Real Estate: Significant increase in profits in the nine months of 2014

ADLER Real Estate AG / Key word(s): 9-month figures/Interim Report

17.11.2014 / 17:42

Corporate News

ADLER Real Estate: Significant increase in profits in the nine months of 2014

- The group's earnings more than double to EUR101.1 million

- Fair value assessment has high income effect

- Establishes a basis for considerable further growth

Hamburg, the 17th November 2014. The steady expansion of the housing stock of ADLER Real Estate AG, Frankfurt/M., (ISIN DE0005008007), is also reflected in the turnover and other results of the first nine months of the current business year. Almost all of the financial figures have increased significantly and now stand at multiples of their previous value. When this is combined with acquisitions in the fourth quarter, it is clear that ADLER is set to grow even more. The submitted interim report for the first three quarters of the current business year already shows that revenue has increased threefold to EUR187.1 million (previous year's time period: EUR57.8 million). The group's earnings increased at the end of September to EUR101.1 million (previous year: EUR42.2 million) and the group's balance sheet to EUR1.3 billion (end of 2013: EUR460.9 million). The numbers result from changes in the residential property portfolio, which in the third quarter grew from 7800 to 21000 housing units. ADLER took over a further 4300 housing units at the end of October as well as at the same time securing the acquisition of a further 6750 by the year's end.

"The new ADLER group is growing so strongly and so quickly that direct comparison with previous periods is hardly possible; this interim report shows just a short momentary extract of ADLER's rise to an even larger housing management business," explained Axel Harloff, CEO of ADLER Real Estate AG. The considerable increase in profits results from the fair value assessment of newly acquired holdings of residential property portfolios. In particular, the purchase of a portfolio of around 8500 units at the end of the first half of the year, which was acquired based on expert assessments, greatly impacted profits, with fair value adjustments at a level of EUR105 million (previous year EUR47.4 million). Note, this number is qualified by deferred taxes of EUR19.4 million (previous year: EUR12.3 million).

"However, it is the operating revenues that are decisive for our long-term oriented strategy of professional housing management and portfolio optimisation," explained Harloff. Pleasingly, the revenue for the first nine months of the year of EUR62.3 million is almost six times its previous level (previous year: EUR11.1 million). Also included in this figure is income from optimisation and privatisation of selected housing units which were obtained at the end of June of this year through a 92.7% takeover of ESTAVIS AG, Berlin, and its sister company ACCENTRO. This accounted for over seven million Euros in the third quarter alone. In addition, revenues of approximately three million Euros came from the sale of old ADLER stock that no longer belonged in ADLER's core housing management business. All together, this resulted in a positive cash flow for the ADLER group in the first nine months of the year of EUR6.9 million (previous year: EUR2.0 million).

"It should be noted that the stated cash flow also includes outflows for stock purchases; that is, outgoings for the purchase of housing units intended for privatisation." From the beginning of the coming year, the ADLER group will have a minimum of 32,000 housing units at its disposal, which from today's perspective will already result in rental income of around EUR108 million. "Clearly, revenues and cash flow will grow further," stated Harloff.

All of the balance sheet figures make the sustained growth of the group equally clear. Alone, the volume of the investment properties increased by more than double to EUR1.07 billion (previous year: EUR417.9 million). The group's accounts show a credit of EUR36 million (previous year: EUR5.8 million). "We can further strengthen the cash flow situation in the fourth quarter through the further sale of old stock and have already received an additional EUR21 million from the capital increase at the end of October," noted Harloff. "Further separations of old stock set for nearly complete liquidation are pending. Accordingly, we are well prepared for our expansion."

Your contacts points for enquiries

Press: german communications dbk ag
Jörg Bretschneider
Milchstr. 6 B, 20148 Hamburg
Tel.: 040/46 88 33 0, Fax: 040/46 88 33 40

Investor relations: Hillermann Consulting
Christian Hillermann
Poststraße 14, 20354 Hamburg
Tel.: 040/32 02 79 10, Fax: 040/32 02 79 114

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