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ADLER Real Estate AG: Financial year 2016: All guidance targets reached or outperformed
DGAP-News: ADLER Real Estate AG / Key word(s): Final Results
24.03.2017 / 08:02
The issuer is solely responsible for the content of this announcement.
Financial year 2016: All guidance targets reached or outperformed
- Gross rental income increased by 16,5 percent to EUR 252.4 million
- FFO I improved by 69.6 percent to EUR 27.3 million
- Net Asset Value boosted by 21.6 percent to EUR 1,069.9 million
- Loan-to-Value lowered by 6.7 PP to 61.3 percent
- Further improvements expected for 2017
Berlin, 24 March 2017. ADLER Real Estate AG, Berlin successfully reached or outperformed all of its financial targets guided for the financial year 2016. Both operating results and net asset value increased strongly, while significantly improving the Group's financial structure and significantly lowering its LTV ratio during the same period. For 2017, the company expects to continue the positive development.
Gross rental income increased by 16,5 percent
Gross rental income also increased as a result of further improvements achieved in operational performance indicators. At the end of 2016, the average contractually agreed rent per square metre per month in the core portfolio amounted to EUR 5.04. On a like-for-like basis, it was thus EUR 0.06 or 1.2 percent higher than the previous year's figure (overall portfolio: EUR 5.00 at the end of 2016; EUR 4.93 at the end of 2015). The occupancy rate rose by 1.1 percentage points to 91.4 percent in the core portfolio and by 1.2 percentage points to 90.0 percent in the overall portfolio.
Net of expense items, earnings from property lettings amounted to EUR 113.6 million in 2016, 24.0 percent more than in the previous year (EUR 91.6 million).
Substantially higher income from the sale of properties
The sale of 934 non-core units - one of ADLER's strategic objectives since the beginning of 2015 and intended to increase the performance capacity of the overall portfolio - had no effect on earnings as they were predominantly executed at the respective carrying amounts. The non-core portfolio still comprised around 2,800 units at the end of the year.
Property valuation adapted in line with changing market circumstances
Substantial EBIT growth
Funds from Operations I (FFO I) improved by two thirds
Basic FFO I per share amounted to EUR 0.47 as of 31 December 2016 - a significant increase compared to the previous year (EUR 0.28)
Net Asset Value boosted by 21,6 percent
Loan-to-Value lowered to 61,3 percent
Further improvements expected for 2017
These operational improvements - together with the improved cost structure which has resulted from the structural changes in 2016 and the decrease in interest expenses initiated already through the redemption of higher yielding liabilities - should impact positively on FFO I. This key figure should therefore increase to around EUR 40 million, equivalent to year-on-year growth of nearly 50 percent.
In 2017, ADLER's financial indicators will show improvements which are expected to be substantial in some cases. Having already begun to buy back some corporate bonds with higher interest rates in the first quarter of 2017, the Company expects to significantly reduce its LTV figure stabilizing it to around 55 percent as the year progresses. ADLER would then have reached what it sees as the right ongoing level. Furthermore, by redeeming bonds with higher interest rates and implementing refinancing measures ADLER expects to reduce its average interest on debt to around 3.45 percent.
It is particularly difficult to forecast the expected NAV figure, as this crucially depends on the development in the value of property holdings and also on the question whether the expected disposal of "non-core" portfolios can be achieved and new portfolios can be acquired in the course of the year. ADLER expects value growth to be achieved in a low double-digit percentage range in 2017.
The complete annual report of ADLER Real Estate AG for the financial year 2016 is available on the company's website (www.adler-ag.com).
Your contact for enquiries:
Dr. Rolf-Dieter Grass
Key financial data for the financial year 2016
* basic, 47,702,374 shares as at balance sheet date (previous year: 46,103,237) plus 10,606,060 shares from assumed conversion of mandatory convertible bonds (previous year: 10,606,060) which are considered as equity
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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|