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ADLER Real Estate AG: 2019 Half Year Results: Solid progress with KPIs driven by ongoing portfolio optimisation and further capital structure improvements
DGAP-News: ADLER Real Estate AG / Key word(s): Half Year Results
14.08.2019 / 07:00
The issuer is solely responsible for the content of this announcement.
2019 Half Year Results:
- Strong earnings growth with FFO I up 18.8% to EUR 41.7m from EUR 35.1m in H1 2018 driven by strong underlying l-f-l rental growth of 3.4% and the positive effects from the BCP acquisition
- Diluted EPRA NAV per share (excl. goodwill) 7% higher at EUR 22.23 (FY 2018: EUR 20.77)
- Good progress to focus ADLER on core activities post M&A with disposals of non-strategic assets to date totalling EUR 500.9m allowing for net debt repayment of c. EUR 260m
- WACD lowered to 2.08% through net debt repayment and the issue of a EUR 400m bond at a 1.5% fixed coupon, resulting in a c. EUR 12m of annualised savings in interest payments and 2019 FFO I guidance raised from EUR 80-85m to EUR 83-86m
- 8.8ppts LTV reduction since the BCP acquisition to 58.7% for H1 2019, on track to achieve around 55% at the year end
Berlin, 14 August 2019 - Reporting its H1 2019 results today, ADLER Real Estate has made solid progress on a number of fronts to consolidate its activities as well as continuing to improve its capital structure through lowering its cost of debt via a new bond issue.
The first part of the BCP retail portfolio was sold at the end of March 2019 and closed in Q2 2019. It included three retail assets located in Rostock, Celle and Castrop-Rauxel with GAV of EUR 180.6m and was sold at c.7.6% premium to book equity value.
The second cluster was sold at the end of June and included 11 retail assets with a GAV of EUR 141.1m representing an 8.8% discount to book value.
Total retail sales from the BCP portfolio represent a GAV of EUR 321.7m and were disposed at an average discount of c.2.3% to ADLER's current book value. The remaining EUR 158.2m of retail assets, for which we have received interest from a number of different real estate investors, will be sold opportunistically during 2019/2020.
Treasury shares exchanged for assets
Net rental income increased by 16.6% to EUR 127.2m compared to the same period in previous year
FFO I grew by 18.8% to EUR 41.7m
EPRA NAV increased further to EUR 1,754.2m
WACD was further reduced to 2.08%
historically tight spread for BB+ rated bond, representing the significantly improved capital structure and general metrics of the Company. Proceeds were used to refinance the outstanding 4.75% 2020 notes, called back in June 2019, as well as the refinancing of other debt. Annual FFO contribution from savings of the refinancing amounted to c. EUR 12m, triggering an upgrade in FFO I guidance from EUR 80-85m to EUR 83-86m.
Commenting on the results Co- CEO Tomas de Vargas Machuca said "we continue to extract value from the transformative effects of the BCP acquisition and its related disposals, which together with good rental growth and the restructuring of our management activities has significantly improved ADLER's profile. The first half of 2019 demonstrates the ongoing progress we are making across a number of fronts to consolidate our position as a value creator in the affordable residential real estate sector in Germany."
Maximilian Rienecker, Co-CEO of ADLER Real Estate AG, added "bringing down our cost of debt has been a core focus of our recent activities and our efforts in the first half have reduced our WACD from 2.23% to 2.08%, the resultant cost savings will flow directly through to earnings."
The complete financial report of ADLER Real Estate AG for the first half 2019 is available on the company's website (www.adler-ag.com).
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Key financials H1 2019
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|Company:||ADLER Real Estate AG|
|Joachimsthaler Straße 34|
|Phone:||+49 30 398 018 10|
|Fax:||+49 30 639 61 92 28|
|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|
|EQS News ID:||857079|
|End of News||DGAP News Service|