EQS-News

Adler Group S.A. continues strong operational performance in the first six months of 2023 in a challenging market environment - Seite 2

On a like-for-like basis, the first half of 2023 demonstrates again strong rental fundamentals. The average rent of the rental portfolio increased to €7.69/sqm/month in the reporting period, representing a like-for-like rental growth of 3.1% on a 12-months-base. At 1.4% as of 30 June 2023, the vacancy rate of the core portfolio remained at very low levels compared to 1.5% as of 31 March 2023 and 1.3% as of 31 December 2022.

On the back of mainly increasing interest rates, portfolio appraisals conducted by independent appraisers led to devaluation of the portfolio during the first half. The fair value of the entire portfolio including developments amounted to €6.4bn as of 30 June 2023 (year-end 2022: €7.4bn) while the fair value of the yielding portfolio decreased to €4.8bn compared to €5.2bn at the end of the previous year. The EPRA NTA as of 30 June 2023 amounted to €1.33bn or €8.76 per share, compared to €2.44bn / €20.77 per share as of 31 December 2022. The EPRA Loan-to-Value (LTV) ratio of Adler Group stood at 87.7% (74.5% as of end 2022). However, it is important to note that Adler Group has currently no financial covenants in place after the successful amendment of its bond terms following the restructuring plan.

Outlook 2023 confirmed: net rental income in the range of €207-219m

Adler Group confirms its guidance to generate net rental income for the full year 2023 in the range of €207-219m. The Company refrained from providing a FFO 1 guidance for the year 2023, as the Group's current focus is on steering its liquidity position and deleveraging through asset and portfolio disposals in a highly uncertain market environment.

The liquidity position of Adler Group is solid with €231m in Cash on Balance as of 30 June 2023.

Adler Group's affiliate ADLER Real Estate AG will receive an early repayment of an intracompany loan from its subsidiary BCP in a partial amount of €75m by 31 August 2023. The early repayment is part of an original intercompany loan facility of €200m from which €150m had been drawn. Beside the early repayment of €75m, another €75m of the drawn credit will be prolonged until 29 December 2024. The remaining un-drawn credit line of €50m will be terminated.