Adler Group Sa · XETR:ADJ
Adler Group Sa — ADO Properties — Q1 2017 Earnings Presentation
19 slides from Adler Group Sa's earnings presentation, May 17, 2017
Slide 1: Q1 2017 Results
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Slide 2: Overview
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Slide 3: ADO – The Pure Play Berlin Residential Specialist
ADO – THE PURE PLAY BERLIN RESIDENTIAL SPECIALIST Investment highlights Key metrics (end of Q1 2017)1 Buildings 335 1 Berlin residential pure play with a € 2.3bn quality portfolio Residential units 17,776 Efficient, fully integrated and scalable platform with clear Commercial units 1,025 Total units
Slide 4: Highlights Q1 2017
HIGHLIGHTS Q1 2017 • Strong operational performance with like-for-like OPERATIONS & BALANCE SHEET Q1 2017 2016 rental growth of 6.1% above our target of 5% Rental growth l-f-l (LTM) 6.1% 6.0% • Income from rental activities increased by 24% Vacancy rate 2.7% 2.5% compared to Q1 2016 Privatization -
Slide 5: Portfolio & Strategy
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Slide 6: Quality, Balanced, Berlin Focused Portfolio
QUALITY, BALANCED, BERLIN FOCUSED PORTFOLIO High quality turn of the century buildings… …with attractive rents... …and low number of remaining restrictions 36% 659 36% % of Fair Value # of units 621 29% 24% 409 18% 12% 11% 6% 6% 6% 4% 5% 90 86 3% 29 1919- 1950- 1965- 1973- 1991- <= 5,00 > 5,00 > 6,0
Slide 7: Further Units Acquired
FURTHER UNITS ACQUIRED Signed after 2016 reporting 389 units acquired in 2 transactions since reporting FY 2016 • € 76.1m of gross asset value (including transaction costs), mostly Altbau, acquired in 2 transactions mixing asset and share deals • 22 buildings in total, of which 7 are in Central Loca
Slide 8: Strong Like-for-Like Growth and Stable Vacancies
STRONG LIKE-FOR-LIKE GROWTH AND STABLE VACANCIES Continuously strong L-f-L results of 6.1% in Q1 2017 Vacancy split 8.0% 7.3% 2.7% 2.6% 2.5% 0.3% 3.3% 6.0% 6.1% 0.4% 0.2% 3.8% Guidance: 2.7% 2.7% 5.0% 1.6% From modernization CAPEX 1.3% 1.4% 1.1% 1.6% 1.4% 2.7% From fluctuation w/o CAPEX and 3.1% vac
Slide 9: ADO's Commercial Units Support Our Growth
ADO´s COMMERCIAL UNITS SUPPORT OUR GROWTH COMMERICAL PORTFOLIO Commercial units by type Q1 2017 2016 Number of units 1,025 999 Other Retail Average rent / sqm / month € 8.84 € 8.60 11% 28% Vacancy 4.6% 3.2% Education & Social 14% • ADO owns 1,025 commercial units by the end of Q1 which are mainly pa
Slide 10: Horizon Portfolio: Case Study
HORIZON PORTFOLIO: Case Study Strong new-letting results continue KEY METRICS (per April 2017) Location Neukölln Acquisition cost € 174m/ € 1,599 per sqm Current fair value € 177m/ € 1,626 per sqm Number of residential units 1,677 Avg. rent / sqm / month: At acquisition € 6.17 Current € 6.42 new let
Slide 11: Privatization Activities on Target
PRIVATIZATION ACTIVITIES ON TARGET Privatization results and outlook Sales profit – Avg. sales price vs. portfolio value • 24 units sold in Q1 2017 for gross proceeds of €/sqm 3,053 € 4.8m, generating close to 33.7% value uplift Avg. portfolio value +33.7% compared to average book value of Central L
Slide 12: Financial Overview
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Slide 13: Overview of Balance Sheet
OVERVIEW OF BALANCE SHEET In € m Mar 31, 2017 Dec 31, 2016 Comments (Unaudited) (Audited) •1 Total portfolio value of € 2,349m as at Mar 31, 2017 includes Investment properties 1 2,387 2,291 investment properties (€ 2,300m) and trading properties (€ 49m Other non-current assets 6 6 fair value / €43m
Slide 14: Solid Balance Sheet with Fixed Rate Financing
SOLID BALANCE SHEET WITH FIXED RATE FINANCING Key financing figures Diversified funding profile with weighted average debt maturity of approx. 5 years • Total debt of € 898m, primarily mortgage backed/secured Bank debt (€m) • Almost all loans are fixed interest rate or hedged 1.7% 400 • No material
Slide 15: Overview of Profit and Loss
OVERVIEW OF PROFIT AND LOSS Comments In € m Q1 2017 Q1 2016 Year 2016 1• Income from rental activities increased by 24% driven by l-f-l rental Net rental income 24.0 19.2 84.7 growth of 6.1% and acquisitions. Q1 2017 reflects an annualized income Income from facility services 1.3 1.1 5.1 from rental
Slide 16: Overview of FFO
OVERVIEW OF FFO Comments In € m Q1 2017 Q1 2016 Year 2016 1• EBITDA from rental activities increased by 25% due to our strong 6.1% 1 like-for-like rental growth and successful acquisitions. The annualized Q1 EBITDA from rental activities 18.0 14.4 63.4 figures represent an EBITDA of more than € 72m
Slide 17: Guidance 2017
GUIDANCE 2017 We anticipate like-for-like rental growth going forward to be at least 5% which should positively 1 impact portfolio value, EPRA NAV and EPRA NAV per share We confirm our year-end 2017 FFO1 run-rate to be at least € 60m after investing our 2 cash position 3 Average cost of debt improvi
Slide 18: Financial Calendar 2017
FINANCIAL CALENDAR 2017 Aug 17, 2017 Publication Q2/2017 financial report Nov 15, 2017 Publication Q3/2017 financial report “Leibnizstr.”, “Bötzowstr.”, “Ahornstr.”, “Gutenbergstr.”, “Putbusser Str.”, “Schichauweg”, Charlottenburg Pankow Steglitz Köpenick Wedding Tempelhof 18
Slide 19: ADO Properties S.A. contact details
ADO Properties S. A. Aerogolf Center 1B Heienhaff, L-1736, Senningerberg, Grand Duchy of Luxembourg T +352 26 493 412 F +352 27 860 722 E ir@ado.properties W investors.ado.immo 19