EQS-News

Adler Group with robust operational performance in 2023 - Seite 3

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 €191m of 1.5 lien notes with annual PIK interest amount of 21% due end July 2025. Gross proceeds from disposals amount to €530m with associated debt repaid of €270m and net cash generation of €200m. The total cash position at year end 2023 amounts to €377m.

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 €1,464m in FY 2023 (previous year: minus €1,272m). In addition, there was a negative financial result of €497m (previous year: minus €535m).

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 €43m (previous year: plus €87m) due to the increasing interest burden. The EPRA NTA amounted to €529m, or €3.49 per share, as of 31 December 2023, compared to €2.4bn / €20.77 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.