Adler Group Sa · XETR:ADJ
Adler Group Sa — Q3 2024 Earnings Presentation
37 slides from Adler Group Sa's earnings presentation, Nov 28, 2024
Slide 1: Q3 Results 2024 presentation
Q3 Results 2024 presentation 28 November 2024
Slide 2: Content
Content 1 Disposal Update 2 Q3 2024 Highlights 3 Portfolio & Operational Performance 4 Financial Update 5 Guidance & Concluding Remarks 6 Appendix 2 Bundesallee 38, Berlin
Slide 3: Disposal Update
1 Disposal Update 3
Slide 4: Disposal Update
Disposal Update Following the BCP transaction signed in November 2024, Adler Group will be sufficiently funded throughout 2025 and be in a position to execute its corporate strategy which foresees the Group to focus on yielding assets in the Berlin area 4 Nov-2024 2 Jan-2025 1 Jan-2026 (latest) Sale
Slide 5: Q3 2024 Highlights
2 Q3 2024 Highlights 5
Slide 6: Q3 2024 Highlights
Q3 2024 Highlights The rental business continued to develop positively while the capital structure and equity position significantly improved following the successful completion of the comprehensive recapitalization in September 2024 PORTFOLIO FINANCIAL DISPOSALS & PERFORMANCE OVERVIEW DEVELOPMENTS2
Slide 7: Portfolio & Operational Performance
3 Portfolio & Operational Performance 7
Slide 8: Berlin-anchored Yielding Asset Portfolio
Berlin-anchored Yielding Asset Portfolio As per September 2024, the portfolio size remained stable at c. 25,000 units, primarily located in Berlin Number of rental units Residential core portfolio as per Sep-20241 25,043 25,005 24,935 OTHER CITIES €0.6bn GAV 7,262 Berlin units Oberhausen Dec-23 Jun-
Slide 9: No Portfolio Revaluation in Q3 2024
No Portfolio Revaluation in Q3 2024 Rental yield for assets outside Berlin remains significantly higher than yields observed in Berlin; next portfolio revaluation will be concluded in Q4 2024 with stable values to be expected Like-for-like fair value development until Q3 2024 (%)2 Rental yield (%)3
Slide 10: Significant Rental Growth on a Like-for-Like Basis
Significant Rental Growth on a Like-for-Like Basis Like-for-like rental growth mainly driven by indexation of in-place rent for existing tenants Average rent (€/sqm/month) Like-for-like rental growth (%)2 Detailed breakdown of the like-for-like rental growth as per Sep-2024 (%) 7.71 7.39 Without CAP
Slide 11: Financial Update
4 Financial Update
Slide 12: Development of GAV in Q3 2024
Development of GAV in Q3 2024 Portfolio GAV remains largely unchanged in Q3 2024 GAV excl. BCP (€bn)1 Comments 1 Sales of a few condominium units in Berlin as well as two multi- 5.5 5.5 family buildings were completed in Q3 2024, leading to a total (0.0) (0.0) - reduction in GAV in the amount of c.
Slide 13: Financing Update
Financing Update Besides the completion of the comprehensive recapitalisation on 19 September 2024, all Adler Group 2024 financial maturities have been addressed RECAPITALISATION PROLONGATIONS IN Q3 ‘24 UPCOMING MATURITIES COMPLETED ◼ Extension and reprofiling of bond maturities ◼ Successful prolong
Slide 14: Overview of Debt KPIs as per Sep 2024
Overview of Debt KPIs as per Sep 2024 Following the completion of the recapitalisation in September 2024, the weighted average maturity of debt has increased from 2.3 years to 3.8 years Debt KPIs as per Sep-2024 incl. BCP Sources of funding incl. BCP Restructuring security package - 2L3 14.8% Total
Slide 15: Debt Maturity Schedule
Debt Maturity Schedule The Adler Group Bond maturities were extended to 2028 and beyond, as part of the recapitalisation Overview of debt maturities1 as per Sep-2024 (€m) Comments 0% 9% 16% 2% 36% 17% 20% ◼ Per 30 Sep-2024, all 2024 maturities have been resolved through prolongations; the Group has
Slide 16: Loan to value (LTV) – Development in Q3 2024
Loan to value (LTV) – Development in Q3 2024 In Q3 2024, the LTV decreased significantly due to the conversion of certain debt instruments into equity as part of the recapitalisation of Adler Group LTV evolution (%) Comments 105.7% 1◼ The recapitalisation completed in Sep-2024 let to a significant d
Slide 17: Development of Cash Position – Changes during Q3 2024
Development of Cash Position – Changes during Q3 2024 The increase in cash was mainly driven by the 1L New Money Upsizing as well as the remaining shareholder loan to BCP that was repaid Cash position excl. BCP (€m) 363 334 6 (16) (7) 82 (8) (11) 5 (20) (14) 27 (10) (6) 3 (1) 4 | Financial Update 19
Slide 18: Guidance & Concluding Remarks
5 Guidance & Concluding Remarks 18
Slide 19: Guidance and Concluding Remarks
Guidance and Concluding Remarks Adler Group has been significantly stabilised through the successful completion of its comprehensive recapitalisation, the publication of audited annual reports, and the execution of significant disposals Full-year 2024 guidance Concluding remarks Successful disposal
Slide 20: Q&A
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Slide 21: Appendix
Appendix 22-23 Portfolio & Operational Performance 24-29 Financials 30-31 Debt Overview 32-33 Development Projects 34-35 Corporate Governance 36 Corporate Agenda 21
Slide 22: Breakdown of the like-for-like Rental Growth and CPI-linked Rent
Breakdown of the like-for-like Rental Growth and CPI-linked Rent Berlin l-f-l rental growth as per Sep-2024 (%) Other cities l-f-l rental growth as per Sep-2024 (%) Consumer price index (CPI) linked leases as per Sep-2024 (%) Without CAPEX CAPEX Without CAPEX CAPEX Based on units Based on NRI +6.4%
Slide 23: CAPEX and Maintenance in 9M 2024 in the Yielding Asset Portfolio
CAPEX and Maintenance in 9M 2024 in the Yielding Asset Portfolio CAPEX and maintenance (€m) Maintenance expense (€/sqm) CAPEX invested (€/sqm) 39 6.2 16.1 6.0 33 13.3 11 29 4.5 11.9 11 8 29 21 23 FY 2023 9M 2023 9M 2024 FY 2023 9M 2023 9M 2024 FY 2023 9M 2023 9M 2024 Maintenance CAPEX Appendix 23 Ge
Slide 24: Profit and Loss Statement
Profit and Loss Statement P&L statement Comments In €m 9M 2024 9M 2023 1▪ Compared to H1 2023, net rental income slightly decreased due to the disposal of the Net rental income 155 1 160 “Wasserstadt” portfolio in August 2023, and the Hamm portfolio by BCP in December 2023. The Income from facility
Slide 25: Adj. EBITDA Rental and FFO
Adj. EBITDA Rental and FFO 1 Adj. EBITDA Rental and FFO 1 calculation Comments In €m 9M 2024 9M 2023 ▪1 Income from rental activities decreased slightly as a result of asset disposals in 2023 Net rental income 155 160 ▪2 Costs from rental activities include costs of utilities recharged in the amount
Slide 26: Adj. EBITDA Total and FFO
Adj. EBITDA Total and FFO 2 Adj. EBITDA Total and FFO 2 calculation Comments In €m 9M 2024 9M 2023 ▪1 Income from property development includes revenue recognition from forward sales and condo Income from rental activities 230 237 sales. The position is negative due to the cancellation of the forwar
Slide 27: Balance Sheet
Balance Sheet Balance sheet Comments In €m Sep-24 Dec-23 ▪1 The decrease in investment properties was mainly due to the fair value adjustments of Adler Investment properties including advances 4,730 1 4,911 Group’s yielding assets and development assets booked under investment properties, following
Slide 28: LTV – Methodology
LTV – Methodology LTV calculation as of Sep-2024 Comments Proportionate consolidation ▪ The main objective of the LTV metric is to provide Group as Share of joint Share of material Non-controlling clarity on and assess the gearing of the shareholder In €m reported ventures associates interests1 Comb
Slide 29: LTV – Overview
LTV – Overview LTV Comments In €m Sep-24 Dec-23 1 Total interest-bearing debt of €3,633m significantly decreased compared to the Dec-2023 value Borrowings from Financial Institutions 3,124 1 2,259 of €6,051m mainly due the fact that c. €2.3bn of the 2L Notes were converted into Perpetual Notes Bond
Slide 30: Breakdown of Debt Maturities per Sep-2024
Breakdown of Debt Maturities per Sep-2024 Nominal amount (€m) IFRS (€m) Maturity Nominal interest rate ADLER Real Estate Bonds SSNs 2018/26 300 294 27 Apr-26 3.00% Total 300 294 1.6 years 3.00%2 BCP Bonds Debenture B 5 5 31 Dec-24 4.04% Debenture C 76 77 20 Jul-26 4.05% Debenture D 127 126 1 Feb-29
Slide 31: Capital Structure (excl. Intercompany Loans) per Sep-2024
Capital Structure (excl. Intercompany Loans) per Sep-2024 ADLER Real Estate GmbH – Capital structure Consus Real Estate AG – Capital structure Adler Group S.A. (standalone) – Capital structure In €m Amount O/S Maturity Interest In €m Amount O/S Maturity Interest In €m Amount O/S Maturity Interest Ba
Slide 32: Upfront Sale Projects
Upfront Sale Projects Continued progress in disposals despite difficult market conditions Actual Remaining Building Construc. Land plot Area # Project name Entity City Zoning CAPEX 9M CAPEX Q4 permit started (k sqm) (k sqm) 20241 (€m) 20241 (€m) 1 Offenbach project2 Consus Offenbach ✓ ✓ ✓ 32 88 1 1
Slide 33: Forward Sale and Condominium Projects
Forward Sale and Condominium Projects Majority of projects to be completed and handed over by 2025 Total remaining Actual Remaining Construc. Building Construc. Land plot Area GAV1 GDV1 # Project name Entity City Zoning construc. CAPEX 9M CAPEX Q4 period permit started (k sqm) (k sqm) (€m) (€m) CAPE
Slide 34: Corporate Governance – Composition of the Board and Senior Management
Corporate Governance – Composition of the Board and Senior Management Composition of the Board and Senior Management1 Stefan Brendgen Matthias Moser Thilo Schmid Paul Copley Chairman of the Board Member of the Board Member of the Board Member of the Board2 Chairman of the Nomination & Member of the
Slide 35: Corporate Governance – Shareholder and Voting Securities Composition
Corporate Governance – Shareholder and Voting Securities Composition Adler Group shareholder composition1 Adler Group composition of total voting rights3 Vonovia 15.9% PIMCO 151.6m 18.0% voting rights 84.1% 606.5m 10.0% Taconic Capital Advisors 52.6% voting rights Free Float 9.0% Adler Group holder
Slide 36: Corporate Agenda
Corporate Agenda Adler Group S.A. financial calendar 2025 Investor relations contacts 29 April 2025 Publication Annual Report 2024 Julian Mahlert Head of IR & PR 27 May 2025 Publication Q1 2025 Results j.mahlert@adler-group.com 25 June 2025 Annual General Meeting 2025 Gun Vardhan Gupta IR Manager 28
Slide 37: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation (“Presenta