Adler Group Sa · XETR:ADJ
Adler Group Sa — ADO Properties — Q3 2017 Earnings Presentation
18 slides from Adler Group Sa's earnings presentation, Nov 15, 2017
Slide 1: Q3 2017 Presentation, November 15, 2017
November 15, 2017 1
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 Q3 2017)1 Buildings 384 1 Berlin residential pure play with a € 2.8bn quality portfolio Residential units 19,053 Commercial units 1,171 Efficient, fully integrated and scalable platform with clear Total units
Slide 4: Highlights Q3 2017
HIGHLIGHTS Q3 2017 FINANCIALS Q3 2017 Q1-Q3 2017 • Strong growth continues with income from rental activities increased by 21% compared to the same Income from rental activities €27.3 m €78.7m period 2016 EBITDA from rental activities € 19.4m €55.9m • 1,100 units added in Q3 with another 1,613 of fu
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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 700 657 659 38% % of Fair Value 35% # of units 600 500 26% 21% 409 400 18% 297 13% 12% 300 7% 7% 200 7% 7% 4% 86 4% 100 29 7 0 1919- 1950- 1965-
Slide 7: Further Units Acquired
FURTHER UNITS ACQUIRED 1,613 units acquired in 7 transactions since reporting Q2 2017 Signed Signed after after Q2 Q2 2017 2017 reporting reporting • € 269.6m of gross asset value (including transaction costs), mostly Altbau, acquired in 7 transactions mixing asset and share deals • 24 buildings in
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 4.6% in Q3 2017 Vacancy split 3.3% 8.0% 2.7% 2.7% 0.3% 7.3% 6.0% 0.3% 0.3% 3.3% 3.8% 5.1% / 4.6%* Guidance: 5.0% 2.3% 2.7% 1.4% 1.6% From modernization CAPEX 1.7% 2.5% From fluctuation w/o CAPEX and 1.6% vacancy ch
Slide 9: Horizon Portfolio: Case Study
HORIZON PORTFOLIO: Case Study Strong new-letting results continue KEY METRICS (per Sep 2017) Location Neukölln Acquisition cost (08/2016) € 174m/ € 1,599 per sqm +12% value uplift Current fair value € 195m/ € 1,792 per sqm Number of residential units 1,677 Avg. rent / sqm / month: At acquisition € 6
Slide 10: Privatization Activities on Target
PRIVATIZATION ACTIVITIES ON TARGET Privatization results and outlook Sales profit – Avg. sales price vs. portfolio value • 62 units sold until Q3 2017 for gross proceeds of €/sqm 3,207 € 13.8m, generating around 29.8% value uplift Avg. portfolio value 2,470 +29.8% compared to average book value of C
Slide 11: Financial Overview
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Slide 12: Overview of Balance Sheet
OVERVIEW OF BALANCE SHEET In € m Sep 30, 2017 Dec 31, 2016 Comments (Unaudited) (Audited) •1 Total portfolio value of € 2,782m as at Sep 30, 2017 Investment properties 1 2,831 2,291 includes investment properties (€ 2,737m) and trading Other non-current assets 7 6 properties (€ 45m fair value / € 41
Slide 13: Solid Balance Sheet with Fixed Rate Financing
SOLID BALANCE SHEET WITH FIXED RATE FINANCING Key financing figures Q3 2017 Diversified funding profile with weighted average debt maturity of approx. 5.5 years • Total debt of € 1,319m, almost completely fixed or hedged Bank debt (€m) • Diversified funding sources with flexible access to the bank a
Slide 14: Overview of Profit and Loss
OVERVIEW OF PROFIT AND LOSS Q1-Q3 Comments In € m 2017 Q3 2017 Year 2016 1• Income from rental activities increased by 21% driven Net rental income 78.7 27.3 84.7 by l-f-l rental growth of 4.6% and acquisitions. Quarter- Income from facility services 4.5 1.4 5.1 Income from rental activities 1 74.2
Slide 15: Overview of FFO
OVERVIEW OF FFO Comments In € m Q1-Q3 2017 Q3 2017 Year 2016 1• EBITDA from rental activities increased by 21% due to our EBITDA from rental activities 1 55.9 19.4 63.4 strong 4.6% like-for-like rental growth and successful Net cash interest (15.1) (5.6) (19.2) acquisitions. Quarter-on-quarter growt
Slide 16: 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 2 We update our FFO1 run-rate guidance to be approx. € 64m after investing the current free cash 3 Average cost of debt of 1.8% wi
Slide 17: Financial Calendar 2018
FINANCIAL CALENDAR 2018 March 22, 2018 Publication 2017 annual financial report May 16, 2018 Publication Q1/2018 financial report June 19, 2018 Annual General Meeting Aug 15, 2018 Publication Q2/2018 financial report Nov 14, 2018 Publication Q3/2018 financial report “Leibnizstr.”, “Bötzowstr.”, “Aho
Slide 18: ADO Properties S.A.
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 18