25.04.2024 12:08:47 - EQS-News: Adler Group with robust operational performance in 2023

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EQS-News: Adler Group S.A. / Key word(s): Annual Results
Adler Group with robust operational performance in 2023
2024-04-25 / 12:07 CET/CEST
The issuer is solely responsible for the content of this announcement.


Adler Group with robust operational performance in 2023


. 5.1% like-for-like rental growth compared to previous year and operational vacancy of 1.1%
. Successful disposals in FY 2023 such as the "Wasserstadt" rental portfolio at close to book value and
several development projects at expected prices contributing to c.EUR530m in gross proceeds
. Stable liquidity position with EUR377m cash^as a result of both the "New PIK 1.5L notes" placement and cash
inflows from project sales, despite debt repayments in the amount of
c. EUR280m in Q4 2023
. Adler Group expects to generate net rental income in the range of EUR200m-210m^in FY 2024
. Publication of the audited annual reports 2022 and 2023 by 30 September 2024
. Considerable steps taken to reinforce the Group's capacity to continue as a going concern, leading into a
non-binding agreement in principle on a restructuring with bondholders


Luxembourg, 25 April 2024 - Adler Group S.A. ("Adler Group") concluded the fiscal year 2023 with a robust operational
performance, underlined by a strong like-for-like rental growth of 5.1% over the financial year and a vacancy rate of
just 1.1%. The average residential rent per square meter increased to EUR7.60 compared to EUR7.58 in 2022 despite the
disposal of the "Wasserstadt" portfolio in Berlin, with c.700 new built units not falling under the Mietspiegel. By
year-end 2023, the rental portfolio amounted to 25,043 units, of which 17,738 units are in the Berlin area.
The FY 2023 results reflect Adler Group's successful disposals of portfolio assets, in order to generate liquidity,
cover financial maturities and to reposition the portfolio. The disposal of the Berlin-based "Wasserstadt" rental
portfolio was one of the largest transactions in the German residential sector last year.
However, given the tough transaction market environment, disposals are lagging the original plans. In response, Adler
Group is proactively revising its restructuring framework, focusing on two key pillars: (i) a revised business plan to
restructure the Group's most difficult assets and to participate in the expected market recovery, and (ii) a financial
restructuring which improves the Group's cash position, stabilises the debt structure by postponement of maturities
beyond 2026/27 and provides a sufficient equity position until maturity of Adler Group's prolonged debt in order to
provide a solid foundation for the Group's going concern for at least, but not limited to the next two years.
Management has reached a non-binding agreement in principle on a restructuring with bondholders. Based on the
achievement thus far and considering alternative options available, management takes the view that a solution can be
implemented until end of September 2024.
Commenting on the 2023 results, Thierry Beaudemoulin, CEO of Adler Group, said: "The perfect storm in the financing and
the transaction parts of our industry is not yet over, but market turbulences have calmed down. We are proud of the
strong performance of our rental activities, being core business and reflect Adler Group's strong position in the
Berlin residential market."
Net rental income was EUR210m compared to EUR245m in 2022, a decrease which was mainly due to asset disposals, both in 2022
and 2023. Hence, the Company met its FY 2023 guidance of EUR207m to EUR219m. Adj. EBITDA from rental income was EUR110m
(2022: EUR148m). For FY 2024, Adler Group expects net rental income in the range of EUR200m to EUR210m.
The gross asset value (GAV) of the yielding portfolio came down from EUR5.2bn as per December 2022 to EUR4.2bn as per
December 2023 (of which EUR3.6bn in Berlin), driven by both disposals and the portfolio revaluations. The l-f-l yielding
portfolio revaluation amounted to minus 12.8%. However, the pace of devaluation slowed down significantly in the second
half of 2023 compared to the first half.
Commenting the financial performance, Thomas Echelmeyer, CFO of Adler Group, said: "We successfully addressed all our
financial obligations due in 2023, secured new financing in a challenging environment and ensured sufficient
liquidity." In the fourth quarter 2023, Adler Group placed EUR191m of 1.5 lien notes with annual PIK interest amount of
21% due end July 2025. Gross proceeds from disposals amount to EUR530m with associated debt repaid of EUR270m and net cash
generation of EUR200m. The total cash position at year end 2023 amounts to EUR377m.
The financial results were, however, 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, as well
as the significant devaluations of the real estate assets. Overall, the aforementioned expenses resulted in a loss from
operating activities of EUR1,464m in FY 2023 (previous year: minus EUR1,272m). In addition, there was a negative financial
result of EUR497m (previous year: minus EUR535m).
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 EUR43m (previous year: plus EUR87m) due to the increasing interest burden. The EPRA NTA
amounted to EUR529m, or EUR3.49 per share, as of 31 December 2023, compared to EUR2.4bn / EUR20.77 per share as of 31 December
2022. EPRA LTV was 97.6% (74.5% at the end of 2022).
Referring to the outlook for 2024, Thierry Beaudemoulin explained: "2024 has started with a robust operational
performance again. Market conditions and in particular financing of transactions remain somewhat uncertain, even though
most analysts expect lower interest rates in 2024, with the first rate cut this summer. Regardless of this development,
we will continue our efforts to restructure the Company and will focus on our business."
The 2023 consolidated financial statements and annual accounts for Adler Group published today are still unaudited. As
the auditing process for the 2022 and 2023 consolidated financial statements and annual accounts is ongoing as
expected, the Company envisages the publication of these audited figures by 30 September 2024.

Webcast
A webcast for analysts and investors will be held today, 25 April 2024, at 14:30 CET.

The webcast is available at the following link:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=6KFOO7IE

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

2024-04-25 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.
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Archive at www.eqs-news.com  
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, SIX
EQS News ID: 1889625

End of News EQS News Service
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1889625 2024-04-25 CET/CEST

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END) Dow Jones Newswires

April 25, 2024 06:08 ET (10:08 GMT)
Name WKN Börse Kurs Datum/Zeit Diff. Diff. % Geld Brief Erster Schluss
ADLER GROUP S.A. NPV A14U78 Xetra 0,121 08.05.24 17:35:36 -0,010 -7,61% 0,000 0,000 0,140 0,131

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