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ADLER Real Estate AG: First nine months of 2016: Performance improved further
DGAP-News: ADLER Real Estate AG / Key word(s): Quarter Results/9-month figures
2016-11-14 / 08:00
The issuer is solely responsible for the content of this announcement.
First nine months of 2016: Performance improved further
Berlin, 14 November 2016. ADLER Real Estate AG has once again further improved its key earnings and net asset figures in the first nine months of the current financial year while at the same time significantly reducing its loan-to-value. "The first nine months offer confirmation that we are on the right track with the measures we have taken in the year to date to enhance our operations and consolidate our finances", comments Arndt Krienen, CEO of ADLER Real Estate AG. "They also show we will meet our current year forecast and even exceed it for our LTV ratio."
Substantial increase in funds from operations (FFO)
Operating performance and fair value adjustments increase earnings significantly
In its property letting business, comprising almost 48,000 units, the Company generated earnings of EUR 91.3 million, 38.1 percent more than in the equivalent period in the previous year. A substantial share of this increase resulted from the successful integration of Westgrund AG which was acquired at the half year stage in 2015 and generated full year returns in 2016. In addition, growth was also driven by improved property management capabilities. When comparing September 2016 to September 2015, the average in-place-rent per square metre per month increased by 1.8 percent from EUR 4.90 to EUR 4,99 while the occupancy rate rose by 1.2 percentage points from 88.1 percent to 89.3 percent and as such in line with expectations and guidance
In its property trading business, which is predominantly conducted by the Group Company ACCENTRO Real Estate AG, ADLER Real Estate AG reported an increase in earnings of 64.7 percent to EUR 34.1 million. Further to positive earnings result, ACCENTRO also managed to sell a total of 897 units specially designated for privatisation. Moreover, nearly the same amount of non-core units (894) were disposed of in the first nine months representing more than one fifth of the investment properties designated for sale.
The substantial increase in earnings was generated not only by the Company's improved operating performance but also by fair value adjustments in line with market trends. Fair value adjustments as of 30 September 2016 accounted for a total of EUR 123.5 million, in line with the conservative end of the spectrum of the current strong momentum of property valuations in the market. In the course of the current business year, investment properties of ADLER Real Estate AG have been revalued by 5.4 percent.
Ongoing growth in net asset value (NAV)
Significant reduction in loan-to-value (LTV) and WACD
Through diverse financing measures, among them the refinancing of EUR 60 million of higher yielding liabilities, ADLER was able to reduce the weighted average cost of debt (WACD) from 3.99 percent to 3.8 percent. This equates to an improvement of 0.2 percentage points as compared to the beginning of the year. The target for the full year stands at 3.75 percent or below.
"To me", Krienen commented, "the results of the first nine months clearly show that we are able to deliver on the reported future guidance and even outperform them. Not only does ADLER promise, but we are also committed to deliver on what we plan to do"
The complete interim report of ADLER Real Estate AG for the first nine months of 2016 is available on the company's website (www.adler-ag.com).
Your contacts for enquiries:
Dr. Rolf-Dieter Grass (Management) /Alrike Allameh
Key financial and real estate figures
1) Based on number of shares at balance sheet date plus shares from assumed conversion of mandatory convertible bond
2) Excluding convertible bonds
3) Contractually agreed rent as of 30 September in each case
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|Company:||ADLER Real Estate AG|
|Joachimsthaler Straße 34|
|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, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|