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ADLER Real Estate AG: First half year 2016: Continued strong improvement in operations

DGAP-News: ADLER Real Estate AG / Key word(s): Half Year Results

2016-08-12 / 10:47

The issuer is solely responsible for the content of this announcement.

Corporate News

First half year 2016: Continued strong improvement in operations

- Income and earnings from property lettings rise by more than 50 percent

- Significant increases in funds from operations (FFO) and EBITDA

- 2016 FFO guidance increased

- Disposal of non-core properties initiated

- Continued reduction in the loan-to-value ratio (LTV)

- Further increases to net asset value

Hamburg, 12 August 2016. ADLER Real Estate AG, Frankfurt/M. has shown strong improvement in operations in the first half-year 2016.

Income and earnings from property lettings rise by more than 50 percent
During this period gross rental income which predominantly comprises income from property lettings, reached EUR 130.8 million. This represents a year-on-year increase of 61.7 percent resulting mainly from the expansion in property holdings as a result of the acquisitions made in the previous year, but more importantly from the continued improvements to the property management performance indicators such as in place rent and occupancy rate.

Earnings from property lettings amounted to EUR 61.0 million for the first half of 2016, equivalent to a 55.6 percent rise compared to the same period in the previous year (EUR 39.2 million).

Significant increases in funds from operations (FFO) and EBITDA
As is customary in the property sector, to assess the profitability of its operating business ADLER Real Estate refers to funds from operations (FFO) as its major cash flow-based key indicator. FFO increased significantly to EUR 27.4 million with FFO I for the first half of 2016 contributing by EUR 12.0 million and almost double compared with the previous year's figure of EUR 6.3 million. For the first half of the year, FFO I corresponded to EUR 0.21 per basic share representing an increase of 1.5 times over the previous year's figures of EUR 0.14.

A comparison between the earnings figures for the two periods adjusted for non-recurring and extraordinary items shows a significant increase of 32.3 percent between the two.
Adjusted EBITDA for the first half of 2016 amounted to EUR 65.1 million, up from EUR 49.2 million in 2015. After the deduction of all non-financial expenses, earnings before interest and taxes (EBIT) for the first six months of the current financial year amounted to EUR 83.8 million. The equivalent figure for the previous year was significantly higher at EUR 97.1 million due to the one-off effect resulting from the acquisition of the Wohnungsbaugesellschaft JADE mbH in January 2015 which massively boosted earnings.

2016 FFO guidance increased
At the beginning of August, ACCENTRO Real Estate AG in connection with its ordinary business successfully sold a portfolio of 419 centrally located apartments in Berlin. The improved performance generated an earnings contribution of around EUR 10 million after taxes. The proceeds from this trade are to be added to our guidance as they had not been taken into account in the original forecast for 2016. The positive momentum of ACCENTRO and the privatization sector will have a significant impact on FFO. Therefore, the forecast for FFO has been stepped up by roughly 20 percent to an amount of around EUR 55 million.

Disposal of non-core properties initiated
A total of 683 units sold by the group were attributable to holdings identified as "non-core" at several of the Group's property companies. The sale of these units represents approximately 15 percent of the Group's total non-core portfolio which is earmarked to be sold as a block or through similar trades. The sale of non-core assets generated EUR 26 million in proceeds to the Group.

Continued reduction in the loan-to-value ratio (LTV)
The ratio of net financial liabilities to total assets (loan-to-value), with both figures adjusted to exclude cash and cash equivalents, amounted to 67.0 percent, 1.0 percentage point lower than at the end of 2015 and in line with management's targets.

Further increases to net asset value
ADLER refers to net asset value (NAV) as its key group management figure and calculates this in accordance with the guidelines issued by the European Public Real Estate Association (EPRA). At the middle of the year, NAV reached EUR 908.6 million and was thus 3.3 percent higher than at the end of 2015. NAV per share came to EUR 16.01.

The complete report for the first half-year is available on the website of ADLER Real Estate AG under

For inquiries please contact:

Dr. Rolf-Dieter Grass (Management)
Alrike Allameh
ADLER Real Estate AG
Gänsemarkt 50 / 5. OG
20354 Hamburg
Telefon +49 (0)40 29 81 30-0
Telefax +49 (0)40 29 81 30-99


Key financial data for the first half-year 2016

In EUR m    
Consolidated statement of income H1 2016 H1 2015
Gross rental income 130.8 80.9
Earnings from property lettings 61.0 39.2
Earnings from the sale of properties 16.5 18.3
EBIT 83.8 97.1
EBITDA adjusted 65.1 49.2
FFO I 12.0 6.3
per share (EUR)* 0.21 0.14
FFO II 27.4 32.9
per share (EUR)* 0.48 0.71
Consolidated balance sheet 30.06.2016 31.12.2015
Investment Properties 2,306.1 2,270.2
EPRA NAV 908.6 879.5
per share (EUR)* 16.01 15.51
Loan-to-value (%) 67.0 68.0
Cashflow H1 2016 H1 2015
From operating activities 57.2 22.9
From investing activities 12.7 -262.6
From financing activities -51.6 302.9
Employees 30.06.2016 31.12.2015
Number of employees 305 251
FTE's (Full-time-equivalents) 281 249



About ADLER Real Estate AG: ADLER Real Estate AG is one of Germany's leading property companies. In recent years, the company has grown rapidly by making acquisitions. ADLER owns almost 50,000 residential units. These are mostly located in northern and western Germany and offer affordable homes to tenants with medium to low incomes. Most of this portfolio will be held and managed on a permanent basis. To this end, ADLER has established a professional, central asset management department and is also developing proprietary property management companies that should manage the entire portfolio by the end of 2017. This way, ADLER is set to become an integrated property group offering its tenants all relevant services from a single source.

Via a group company, ADLER is also active in the privatisation market, i.e. in converting rented apartments into freehold apartments. By selling suitable holdings, the company can draw on market opportunities to the benefit of its liquidity and earnings position.

By acquiring individual portfolios and stakes in companies, ADLER exploits benefits of scale and synergies. These involve pooling external services in order to optimise costs and adjusting internal structures. During 2016, central administration structures previously distributed across several locations are to be pooled in Berlin. To harmonise the company's organisational and legal structures, its legal domicile is also being transferred to Berlin.

ADLER is committed to generating value growth in the interests of its shareholders. With its stable financing structures and its SDAX listing, the company has built up a strong reputation on the capital.

2016-08-12 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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