EQS-News

Adler Group with robust operational performance in 2023 - Seite 2

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 €210m compared to €245m 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 €207m to €219m. Adj. EBITDA from rental income was €110m (2022: €148m). For FY 2024, Adler Group expects net rental income in the range of €200m to €210m.

The gross asset value (GAV) of the yielding portfolio came down from €5.2bn as per December 2022 to €4.2bn as per December 2023 (of which €3.6bn 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.