Adler Group S.A. / LU1250154413

Adler Group S.A. reduces debt thanks to successful portfolio sales in difficult market environment

Adler Group S.A. / Key word(s): Quarterly / Interim Statement


28.11.2023 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

---

Net rental income of €160m in the first nine months of 2023 Like-for-like rental growth of 2.4%, vacancy rate falls to 1.6% Guidance for net rental income of €207m to €219 m in the 2023 financial year confirmed Gross proceeds of around €530m and debt reduction of circa €270m through disposals year-to-date, which were realized despite tight transaction markets Rising interest costs and high one-off expenses for restructuring weigh on earnings and key performance indicators Luxembourg, 28 November 2023 - Adler Group S.A. ("Adler Group") has further improved its operating key performance indicators in the first nine months of the current financial year 2023. Net rental income decreased year-on-year from €187m in the previous year to €160m due to portfolio sales that have since then been completed. At the same time, however, like-for-like rental growth of 2.4% was achieved, while at the same time the vacancy rate improved slightly from 1.7 to 1.6%. Accordingly, Adler Group has also confirmed its guidance for the net rental income expected in the full year 2023 between €207m and €219m. The third quarter was largely characterised by the sale of assets, which were successfully realised despite difficult market conditions. With two development projects and the "Wasserstadt" portfolio property in Berlin, which was sold at almost book value, assets in the amount of around €530m were sold and associated secured debt of circa €270m was repaid year-to-date. At the end of September 2023, Adler Group had cash and cash equivalents of €432m, €55m more than at the beginning of the year, which are partly earmarked for further debt reduction. “Even though the transaction markets remain more difficult now than we expected, we are making progress step by step. Managing liquidity and deleveraging remain at the top of our list of priorities. Above all, we successfully addressed all our 2023 refinancing requirements and accumulated a sizeable cash position to successfully continue with our plan in 2024. The fact that we can sell some of our assets at book value also proves that they are valuable and attractive. Therefore, I am confident that we will also be able to complete the projects we are currently discussing with interested buyers in the coming months,” comments Thierry Beaudemoulin, CEO of Adler Group. On the other hand, results were negatively impacted by extraordinary expenses related to the restructuring program and its financing. Legal and consultancy costs as well as interest expenses were particularly noticeable here. Due to the changed market conditions, there were also high devaluations of the investment properties, although these had already been recognised in the half-year financial statements. No revaluation of investment properties was carried out at the end of the third quarter. Overall, the aforementioned expenses resulted in a loss from operating activities of €971m in the first nine months of the current financial year (previous year: minus €479m). In addition, there was a negative financial result of €375m (previous year: minus €447m).  The negative earnings situation is also reflected in the key figures FFO, EPRA NTA and EPRA LTV. For the first time, FFO I was negative at minus €7m (previous year: plus €68m) due to the increasing interest burden. The EPRA NTA amounted to €1.1bn, or €7.27 per share, as of 30 September 2023, compared to €2.4bn / €20.77 per share as of 31 December 2022. EPRA LTV was 89.1% (74.5% at the end of 2022). Following the successful amendment of the terms and conditions of the bonds as part of the restructuring plan, Adler Group is currently not subject to any financial covenants.   Webcast A webcast for analysts and investors will be held today, 28 November 2023, at 10 a.m. CET.

The webcast is available at the following link: https://media.choruscall.eu/mediaframe/webcast.html?webcastid=t5zzrsy0   Contact
Investor Relations:
T [phone]
[e-mail]  

---

28.11.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

---

Language:	English
Company:	Adler Group S.A.
	55 Allée Scheffer
	2520 Luxembourg
	Luxemburg
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.adler-group.com
ISIN:	LU1250154413
WKN:	A14U78
Indices:	FTSE EPRA/NAREIT Global Index, FTSE EPRA/NAREIT Developed Europe Index, FTSE EPRA/NAREIT Germany Index
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, Luxembourg Stock Exchange, SIX
EQS News ID:	1782851

End of News	EQS News Service

---

1782851  28.11.2023 CET/CEST