Adler Group S.A. with continued solid operational performance in Q1 2024

EQS-News: Adler Group S.A. / Key word(s): Quarterly / Interim Statement
Adler Group S.A. with continued solid operational performance in Q1 2024

28.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Adler Group S.A. with continued solid operational performance in Q1 2024

  * Net rental income of EUR51m in Q1 2024, 4% lower compared to EUR53m in Q1
    2023 due to portfolio disposals in 2023

  * Like-for-like rental growth of 5.1%, vacancy rate at 1.7%, average
    residential rent at EUR7.63/sqm/month

* FY 2024 net rental income guidance confirmed

  * Completed disposals of the development projects in Berlin and Leipzig
    with total cash proceeds of EUR43m received year-to-date

  * Rising interest costs and high one-off expenses for restructuring
    continue to weigh on net income

  * Binding agreement with bondholders for a comprehensive recapitalization
    enables extended runway for orderly disposal of assets and strengthening
    of the group's equity position

Luxembourg, 28 May 2024 - Adler Group S.A. ('Adler Group') announces its
results for the three-month period ending March 2024 with a solid
operational performance. Net rental income decreased only slightly by 4%
from EUR53m in the previous year to EUR51m due to portfolio sales that have
since then been completed, e.g. the Wasserstadt transaction in 2023. The
decrease in size was partly compensated by like-for-like rental growth of
5.1% resulting in an average residential rent of EUR7.63/sqm/month for the
core portfolio as per March 2024. The operational vacancy rate stood at 1.7%
as per end of Q1 2024. Adler Group confirms its guidance for the net rental
income expected in the full year 2024 between EUR200m and EUR210m.

As per 31 March 2024, Adler Group's residential core portfolio (not
comprising units owned by the subsidiary BCP) includes 25,015 units, with
the majority of 17,733 units located in Berlin. Compared to the year-end
2023, the portfolio value remains unchanged at EUR4.2bn as there was no
portfolio revaluation in Q1 2024. The next portfolio revaluation will be
concluded in Q2 2024.

In Q1 2024, Adler Group signed disposals of condominium units in Berlin for
a total sales price of c. EUR6m. Additionally, yielding asset sales for a
total price of c. EUR4m were signed in Q1 2024. The disposal of the
development project Wasserstadt Tankstelle in Berlin was completed in Q1
2024 with cash proceeds of EUR17m received. Subsequent to the Q1 reporting
period, the Leipzig FourLiving VauVau development project was sold to the
city of Leipzig with net proceeds of EUR26m received.

'We continue to make good progress step by step in various parts of our
business - operations, asset disposals and corporate financing. In
particular, by reaching a binding agreement with a large part of our
bondholders for a comprehensive recapitalization to reprofile maturities and
strengthen the equity position of the Group, we will stabilise the platform
for the years to come. While current market conditions are still somewhat
adverse, we expect better conditions in our industry over the period of our
reprofiled maturities' comments Thierry Beaudemoulin, CEO of Adler Group.

The income from operating activities amounted to EUR12m in the first three
months of the current financial year (previous year: minus EUR32m). The net
result of minus EUR81m (previous year: minus EUR55m) was negatively impacted by
extraordinary advisory costs for the restructuring update as well as
increased interest expenses. The weighted average cost of debt stood at 6.3%
as per March 2024. At the end of Q1 2024, Adler Group had cash and cash
equivalents of EUR353m, a reduction of EUR25m compared to the December 2023
balance sheet.

The negative net earnings situation is also reflected in the financial key
figures FFO, EPRA NTA and EPRA LTV. FFO I was negative at minus EUR27m
(previous year: plus EUR16m) due to the increasing interest burden. The EPRA
NTA amounted to EUR448m, or EUR2.96 per share, as of 31 March 2024, compared to
EUR529m or EUR3.49 per share as of 31 December 2023. EPRA LTV stood at 99.1%
(97.6% at the end of 2023). 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, Tuesday, 28 May
2024, at 10:00am CEST / 09:00am BST.
The webcast is available at the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=xqFmKGGD

Contact

Investor Relations:
T +352 203 342 10
investorrelations@adler-group.com


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28.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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The issuer is solely responsible for the content of this announcement.

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   Language:       English
   Company:        Adler Group S.A.
                   55 Allée Scheffer
                   2520 Luxembourg
                   Luxemburg
   Phone:          +352 278 456 710
   Fax:            +352 203 015 00
   E-mail:         investorrelations@adler-group.com
   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
   EQS News ID:    1912109

End of News EQS News Service
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1912109 28.05.2024 CET/CEST