EQS-News

Adler Group S.A. continues strong operational performance in the first six months of 2023 in a challenging market environment

EQS-News: Adler Group S.A. / Key word(s): Half Year Results Adler Group S.A. continues strong operational performance in the first six months of 2023 in a challenging market environment 29.08.2023 / 07:00 CET/CEST The issuer is solely responsible for the content of this announcement. Adler Group S.A. continues strong operational performance in the first six months of 2023 in a challenging market environment

 

• Net rental income in first half 2023 at €108m, FFO 1 at €8m
• Like-for-like (“LFL”) rental growth of +3.1% YoY, with a further lowering vacancy rate of 1.4%
• FY 2023 guidance confirmed with net rental income expected in range of €207-219m
• Valuation losses mainly due to higher interest rates
• Transaction markets still dried up; focus remains on managing liquidity

 

Luxembourg, 29 August 2023 - Adler Group S.A. (“Adler Group”) reports a continued strong operational performance in the first six months of the financial year 2023, evidenced by low vacancy combined with increasing average monthly in-place rent. EBITDA from rental activities and funds from operations (FFO 1) declined mainly on the back of the decreased size of the portfolio. “Our core portfolio continues to demonstrate strength. At the same time, we are experiencing value losses as everyone else in the market due to a significantly changed interest rate environment. As the transaction markets still stay dried up, we focus on managing liquidity which remains our number one priority ", commented Thierry Beaudemoulin, CEO of Adler Group.

Net rental income was at €108 compared to €131m in the first half of 2022, Funds from operations from rental activities (FFO 1) totaled €8m compared to €50m in the same period of 2022, reflecting also increased financing costs. This corresponds to a FFO 1 per share of €0.06 (H1 2022: €0.42). EBITDA from rental activities was down to €60m from €86m in H1 2022. The decline reflects the significantly reduced rental portfolio following the portfolio disposals in 2022.