DGAP-News

ADO Properties S.A. reports successful kick-off of the financial year 2017 - Seite 2

Further portfolio expansion and conservative financial strategy

ADO Properties' portfolio is valued at EUR 2,349 million as of 31 March 2017 and is comprised of 18,801 units at the end of the reporting period, of which are 17,776 residential units. The Net Asset Value of the portfolio amounted to EUR 1,601 million or EUR 36.31 per share as of 31 March 2017. ADO Properties' financial structure remains conservative with an LTV of 33.8% by the end of the reporting period and an average interest rate of the loan portfolio of 2.1%. Nearly all loans have a fixed interest rate or are hedged. The average maturity of the loans is approximately 5 years. ADO Properties will continue with this conservative strategy targets and LTV of around 45% after executing further acquisitions.

Positive Outlook for 2017 confirmed

In consideration of the company's ongoing strong development the management board confirmed its positive outlook for the financial year 2017. "We are positive that ADO Properties will continue to increase the value of its assets, its NAV and NAV per share by generating significant rental growth in the future", says Rabin Savion, CEO of ADO Properties. "We anticipate our like-for-like rental growth for 2017 to be approximately 5% and our 2017 year-end FFO 1 run rate to be at least EUR 60 million after deploying our cash position by the end of the year. This positive outlook is based on the very positive macroeconomic outlook for residential investments in Berlin, first of all the above-average economic growth, the increasing household incomes, the lower unemployment and the rising rent index especially in the inner-city-areas favoured by young urban professionals."