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ADLER Real Estate AG: ADLER Real Estate AG expects continued improvements in operational and financial ratios with further revenue and earnings growth for 2016
DGAP-News: ADLER Real Estate AG / Key word(s): Miscellaneous
2016-04-21 / 09:27
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ADLER Real Estate AG expects continued improvements in operational and financial ratios with further revenue and earnings growth for 2016
- Gross Rental Income to grow by c.20% to c.EUR 260 m by December 2016
- Occupancy to grow from 88.8% to 90.8% by FY 2016 In Place Rent is to increase by 2%
- Funds From Operations I are expected to reach EUR25m (+55%) by December 2016
- Funds From Operations II are expected to reach at least EUR45m excluding one off disposals by December 2016
- Further LTV reduction to c.65% expected by December 2016
- WACD to drop by c.0.25% to 3.75%
- EPRA NAV to grow by more than 10% to c. 1.0bn by FY 2016
Hamburg, 21 April 2016. ADLER Real Estate AG, Frankfurt/M. (ISIN DE0005008007), is set to further improve both its operating and financial performance during 2016. The positive guidance will be partly driven by the 2015 acquisitions and their respective full year contribution to the Company's 2016 results; ranging from the significant synergies generated with the take over of Westgrund AG in June 2015 as well as from the ongoing improvements to the Company's asset management capabilities.
Gross Rental Income is expected to reach c.EUR260m by December 2016 marking a 20% increase compared to the FY 2015 (FY 2015: EUR216,6m). This result will be attributable to both a c.2% increase with the in place rent increasing from EUR4.93 sqm/m as at FY2015 to EUR5.04 sqm/m expected for December 2016, as well as a c.2% reduction in vacancy going from 11.2% as at FY2015 to 9.20% by December 2016. Occupancy is therefore anticipated to increase from 88.8% to 90.8% by December 2016.
As a result of ongoing operational improvements, in place rent, vacancy reduction and synergies, FFO I is expected to significantly increase by c.55% to c.EUR25m. "ADLER's development in recent years has been driven by substantial acquisition-based growth. In 2016, we will reap the first full benefits of income growth from our operating business and exploit initial synergy benefits by integrating our various organisations", comments Arndt Krienen, a member of ADLER's Management Board. "The underlying framework in property markets is still very strong. There is growing demand for living space, and that not only in conurbations but also in the peripheral locations where most of ADLER's housing portfolios are located." Krienen stressed that ADLER continues to review further acquisitions opportunities.
FFO II is expected to reach EUR45m in line with 2015 results and subject to one off transactions, this could substantially increase as the privatisation market evolves, especially in Berlin where c.90% of ACCENTRO Real Estate AG's Residential property portfolio is currently located.
Further improvements to the company's cost of debt are expected in 2016 with a target WACD of 3.75% or below (3.99% for FY 2015 and 4.7% for FY 2014) as ongoing refinancing measures take effect. The Company's Loan to Value ("LTV") is expected to continue to improve with an indicated LTV target of c.65% by FY 2016 ((67.96% FY2015 and 68.7% FY2014). The Company's EPRA NAV should reach c.EUR1.0bn by FY2016 increasing by more than 10% compared to FY2015 result of EUR879m.
"We expect 2016 to be a very solid financial year for ADLER, one in which we continue to seize market opportunities while working to ensure the long-term performance from our property portfolio", concludes Krienen.
ADLER Real Estate AG: ADLER Real Estate AG, headquartered in Frankfurt and with its administrative headquarters in Hamburg, focuses on the acquisition, management and administration of residential property privatisation. ADLER invests primarily in portfolios with residential property companies in B-locations of major conurbations with units that achieve a positive cash flow and can demonstrate a sustained appreciation potential.
The ADLER subsidiary, ACCENTRO Real Estate AG, is one of the largest privatisers of residential property in Germany. ACCENTRO markets suitably targeted residential property from the holdings of the ADLER Group and procures condominiums for third party owner-occupiers and investors seeking to provide for their retirement.
In addition, ADLER holds a 23.5 percent stake (31 December 2015) in conwert Immobilien Invest SE, Vienna, one of the leading real estate companies in Austria. conwert holds more than 82 per percent of its property portfolio in Germany, many of them in A-cities.
With nearly 50,000 residential units, ADLER is among the top five largest German residential property companies listed in Germany. In addition to the listing on the FTSE EPRA / NAREIT Global Real Estate Index in London and the GRP General Index, shares in ADLER are also listed in the small cap index SDAX of the Deutschen Börse.
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|Company:||ADLER Real Estate AG|
|60528 Frankfurt am Main|
|Phone:||+49 (0)40 - 29 8130-0|
|Fax:||+49 (0)40 - 29 8130-99|
|ISIN:||DE0005008007, XS1211417362, DE000A1R1A42, DE000A11QF02|
|WKN:||500800, A14J3Z, A1R1A4, A11QF0|
|Indices:||SDAX, GPR General Index|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg|
|End of News||DGAP News Service|