Adler Group Sa · XETR:ADJ
Adler Group Sa — ADO Properties — H1 2019 Earnings Presentation
21 slides from Adler Group Sa's earnings presentation, Aug 14, 2019
Slide 1: Financial Results
ADO Half-Year Financial Report 2019 FINANCIAL RESULTS August 14, 2019
Slide 2: Overview & Investment Highlights
OVERVIEW & INVESTMENT HIGHLIGHTS 1
Slide 3: ADO – The Pure Play Berlin Residential Specialist
ADO – THE PURE PLAY BERLIN RESIDENTIAL SPECIALIST Investment highlights A focused residential portfolio(2,3)… 1 Berlin residential pure play with a EUR 4.4bn quality portfolio Residential 78% Efficient, fully integrated and scalable platform with a clear strategy to create value. 2 This unique platf
Slide 4: Highlights Q2 2019
HIGHLIGHTS Q2 2019 Financials Q2 2019 H1 2019 • Strong growth continues with an increase of 10% in income from rental activities compared to the same period in 2018 Income from rental activities EUR 35.7m EUR 71.4m EBITDA from rental activities EUR 24.0m EUR 47.9m • Vacancy rate improved by 30bps du
Slide 5: ADO Portfolio & Strategy
I1H4WY aaegian Lew cons oO > PORTFOLIO & ADO STRATEGY
Slide 6: Balanced, High-Quality Portfolio Focused on Berlin
BALANCED, HIGH-QUALITY PORTFOLIO FOCUSED ON BERLIN High-quality turn-of-the-century buildings… …with attractive rents... …and a low number of remaining restrictions 29% 36% 27% 657 658 # of units to be released from rent restrictions 27% 19% 13% 8% 207 7% 7% 7% 6% 116 4% 3% 80 2% 2% 2% 31 11 23 31 1
Slide 7: Strong Like-for-Like Growth and Stable Vacancies
STRONG LIKE-FOR-LIKE GROWTH AND STABLE VACANCIES 5.3% / 4.8% 5.6% 4.0 %* Vacancy split 0.8% 3.5% 3.1% 3.2% 3.1% 2.9% 3.0% 0.2% 0.2% 0.2% 0.1% 2.7% Fluctuation & vacancy 2.5% 2.4% 2.4% Unit CAPEX 2.0% 2.1% 2.2% 2.1% 1.8% Rent Increases 1.5% 2.6% 1.0% 2.3% 1.6% 0.5% 1.0% 0.8% 0.8% 0.8% 0.0% 2017 2018
Slide 8: Privatization Activities Continue
PRIVATIZATION ACTIVITIES CONTINUE Sales profit –average sales price vs. portfolio value (*) H1 2019 • 38 units sold during H1 2019 for gross proceeds of EUR 8.3m, generating 20% value uplift compared to average fair value of Central Locations +19% • As we expect further price increases for condomini
Slide 9: Financial Overview
FINANCIAL OVERVIEW 3
Slide 10: Overview of Balance Sheet
OVERVIEW OF BALANCE SHEET In EUR million June 30, 2019 Dec 31, 2018 Comments (Unaudited) (Audited) The portfolio value of EUR 4,375m as at June 30, 2019 includes 1 Investment properties 4,335 4,050 1 investment properties (EUR 4,329m) and trading properties (EUR 46m Other non-current assets 23 16 fa
Slide 11: Total Portfolio Value of EUR 4.4bn
TOTAL PORTFOLIO VALUE OF EUR 4.4bn Share of fair value (%) S-Bahn Ring City Ring Central S-Bahn Ring City Ring Total (1960-1990) (1960-1990) Fair value (in EUR m) 1,631 523 720 338 1,163 4,375 Fair value (EUR/m²) 3,246 2,857 2,578 2,670 2,103 2,660 Discount rate 4.52% 4.64% 4.67% 4.84% 4.83% 4.61% A
Slide 12: Fair Market Value of Portfolio Increased by EUR 288m
FAIR MARKET VALUE OF PORTFOLIO INCREASED BY EUR 288m Fair market value (in EUR m)1: 261 4,375 170 Yield effect 32 (5) 91 Rent effect 4,092 (5) (2( FMV 2018 Reclassification CAPEX Privatization Revaluation FMV H1 2019 1) Including condominium units with a fair market value of EUR 46m which are held a
Slide 13: Solid Balance Sheet with Fixed Rate Financing
SOLID BALANCE SHEET WITH FIXED RATE FINANCING Key financing figures Diversified permanent profile with weighted average debt maturity of approximately 4.3 years • Interest-bearing debts of EUR 1,713m (including EUR 30m short-term funding), almost completely fixed or hedged from diversified funding s
Slide 14: Overview of Profit and Loss
OVERVIEW OF PROFIT AND LOSS In EUR m H1 2019 Q2 2019 Year 2018 Comments Net rental income 67.4 33.8 128.0 1 Income from rental activities increased by 10% for the same period in Income from facility services 3.9 1.9 6.6 2018 and is driven by l-f-l rental growth of 4.0%. Q2 reflects an Income from re
Slide 15: Overview of FFO
OVERVIEW OF FFO In EUR million H1 2019 Q2 2019 Year 2018 Comments EBITDA from rental activities 47.9 24.0 93.8 1 1 EBITDA from rental activities increased by 2%. Q2 reflects an annualized Net cash interest (13.4) (6.7) (25.4) EBITDA of EUR 96m Current income taxes (1.0) (0.5) (1.6) 2 Maintenance is
Slide 16: Guidance 2019
GUIDANCE 2019 1 We currently do not provide a forward looking like for like rental growth guidance given the upcoming discussions on potential implementation of new rent legislation 2 We expect our FFO 1 run rate to be approximately EUR 65m 3 Average cost of long-term debt of 1.6% with an LTV target
Slide 17: Appendix
APPENDIX 4
Slide 18: Financial Calendar
Financial Calendar 19 November 13, 2019 Publication Nine-Month Financial Report (Q3 2019)
Slide 19: Berliner Mietendeckel
“BERLINER MIETENDECKEL” Summary The Berlin Senate has started a process to introduce an additional Berlin specific regulation with the objective to “freeze” the rental growth in the Berlin residential market. Given the Position Paper approved by the Berlin State Government and the current status of
Slide 20: Alte Schönhauser Str. Mitte Badensche Str. 32
Alte Schönhauser Str. Badensche Str. 32 Mitte Wilmersdorf Berliner Str. Buddestraße Prenzlauer Berg Reinickendorf ADO Half-Year Financial Report 2019 20
Slide 21: iaae
a Si iaae 4) COLORS a ADO Mee Half-Year Financial Report