Adler Group Sa · XETR:ADJ
Adler Group Sa — FY2024 Earnings Presentation
40 slides from Adler Group Sa's earnings presentation, Apr 29, 2025
Slide 1: FY 2024 Results presentation
FY Results 2024 presentation 29 April 2025
Slide 2: Content
Content 1 Macro Environment & Milestones 2024 2 Disposal Update 3 Q4 2024 Highlights 4 Portfolio & Operational Performance 5 Financial Update 6 Guidance and Concluding Remarks 7 Appendix 2 Bizetstr. 1 / Gürtelstr. 4, Berlin
Slide 3: Macro Environment & Milestones 2024
1 Macro Environment & Milestones 2024 3
Slide 4: Macro Environment
Macro Environment With global uncertainties persisting, the volatile market environment of the real estate sector has not yet stabilised • Geopolitical risks with effects on Germany: Ukraine War, trade conflict etc. Global uncertainties • Fiscal initiatives in Europe to address military and infrastr
Slide 5: Milestones 2024
Milestones 2024 Adler Group has made significant progress in stabilising its position for the years to come • Equity position significantly improved Adler recapitalised • Financial maturities extended to 2028 and beyond and partly refinanced in early 2025 • Sufficient liquidity for the years to come
Slide 6: Disposal Update
2 Disposal Update 6
Slide 7: Disposal Update
Disposal Update Following the completion of the disposals of BCP and the NRW portfolio, Adler Group has made significant progress to partially redeem its 1L New Money Facility Sale of stake in BCP Sale of NRW portfolio Development projects Other yielding assets 2 | Disposal Update ➢ Following the re
Slide 8: Q4 2024 Highlights
3 Q4 2024 Highlights 8
Slide 9: Q4 2024 Highlights
Q4 2024 Highlights While the yielding asset valuations have stabilised, valuation of project developments remain negatively affected by continuously rising construction costs PORTFOLIO FINANCIAL PERFORMANCE OVERVIEW ◼ 1.8% like-for-like (l-f-l) rental growth on a year-on-year basis driven by ◼ Lower
Slide 10: Portfolio & Operational Performance
4 Portfolio & Operational Performance 10
Slide 11: Berlin-anchored Yielding Asset Portfolio
Berlin-anchored Yielding Asset Portfolio Following the disposal of the North Rhine-Westphalia-based portfolio, the portfolio size decreased to c. 17,900 units, almost entirely located in Berlin Number of rental units Residential portfolio as per Dec-20242 25,043 24,935 (108) (6,884) 17,9291 (122) Be
Slide 12: Portfolio Revaluation in FY 2024
Portfolio Revaluation in FY 2024 Devaluation has come to an end – H2 2024 with first positive result of +0.04% Like-for-like fair value development until FY 2024 (%) Rental yield (%)3 3.7% 3.5% 10.1% H1 20242: (2.22%) 4 | Portfolio & Operational Performance Dec-23 Dec-24 H2 20242: (1.9%) (2.2%) 0.04
Slide 13: Operational Performance
Operational Performance Increase in average rent per square meter largely driven by the disposal of the NRW “Cosmopolitan portfolio” with a lower-than-average rent Average rent (€/sqm/month) Like-for-like rental growth (%)2 Detailed breakdown of the like-for-like rental growth as per Dec-2024 (%) €8
Slide 14: Financial Update
5 Financial Update
Slide 15: Development of GAV in Q4 2024
Development of GAV in Q4 2024 Portfolio GAV primarily impacted by the disposal of the NRW “Cosmopolitan portfolio” and the further devaluation of development projects GAV excl. BCP (€bn)1 Comments 1 Following the public announcement in Dec-2024 to sell the NRW- 5.5 based “Cosmopolitan portfolio”, co
Slide 16: Financing Update
Financing Update With the refinancings of the 1L and 1.5L facilities completed in early 2025, Adler Group is reducing its cost of debt and saving approx. €134m interest costs over the expected remaining lifetime of both the 1L and 1.5L 1L and 1.5L REFINANCINGS1 DEBT REPAYMENTS AND UPCOMING MATURITIE
Slide 17: Overview of Debt KPIs as per Dec-2024
Overview of Debt KPIs as per Dec-2024 Due to reduced refinancing risks, S&P has revised its outlook on Adler Group to stable Debt KPIs as per Dec-2024 Sources of funding Reinstated 2L Notes3 Total nominal interest-bearing debt (€m) 1 4,177 16.8% LTV2 72.7% Secured bank debt 31.1% Fixed / hedged debt
Slide 18: Debt Maturity Schedule
Debt Maturity Schedule Adler Group’s 2025 maturities are completely addressed; remaining 2026 maturities now in focus Overview of debt maturities1 as per Dec-2024 (€m) Comments 8% 14% 2% 39% 16% 18% 3% ◼ As of today, all 2025 maturities have been resolved through either prolongations or repayments;
Slide 19: Loan to value (LTV) – Development in Q4 2024
Loan to value (LTV) – Development in Q4 2024 “One-off“ effects relating to the disposals of BCP and the “Cosmopolitan portfolio” and asset revaluations had a negative impact on the LTV LTV evolution (%) Comments 97.6% 1◼ In Q4 2024, provisions for impending losses relating to the ongoing disposals o
Slide 20: Development of Cash Position – Changes during Q4 2024
Development of Cash Position – Changes during Q4 2024 The decrease in cash was driven by “one-off“ tax payments following the portfolio disposal to Velero/KKR in 2022 and non-recurring restructuring costs following the comprehensive recapitalisation completed in Sep-2024 Cash position (€m) 363 (6) (
Slide 21: Guidance and Concluding Remarks
6 Guidance and Concluding Remarks 21
Slide 22: Guidance and Concluding Remarks
Guidance and Concluding Remarks Following larger portfolio disposals, Adler Group is transforming into a more efficient and streamlined platform with focus on the attractive Berlin rental market Full-year 2025 guidance Concluding remarks Post the successful disposals of Adler’s 62.8% stake in BCP an
Slide 23: Q&A
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Slide 24: Appendix
Appendix 25-26 Portfolio & Operational Performance 27-32 Financials 33-34 Debt Overview 35-36 Development Projects 37-38 Corporate Governance 39 Corporate Agenda 24
Slide 25: Yielding Asset Portfolio – CAPEX and Maintenance
Yielding Asset Portfolio – CAPEX and Maintenance CAPEX and maintenance (€m) Maintenance expense (€/sqm) CAPEX invested (€/sqm) 47 8.6 18.9 39 16.1 15 11 6.0 32 29 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 Maintenance CAPEX Appendix 25 General note: Excluding BCP, as it is classified as asset h
Slide 26: Portfolio Breakdown of Standing Assets and Developments
Portfolio Breakdown of Standing Assets and Developments Yielding portfolio per city1 Development projects per city2 # City Value (€m) Value (%) # City Value (€m) Value (%) 1 Berlin 3,482 99.8 1 Berlin 351 31.1 2 Other cities 8 0.2 2 Frankfurt / Offenbach 156 13.8 Total 3,490 100.0% 3 Hamburg 140 12.
Slide 27: Profit and Loss Statement
Profit and Loss Statement P&L statement Comments In €m FY 2024 FY 2023 1▪ Compared to FY 2023, net rental income slightly decreased due to the lack of rental income Net rental income 208 1 210 following the disposal of the “Wasserstadt” portfolio in Aug-2023, and the Hamm portfolio by BCP Income fro
Slide 28: Adj. EBITDA Rental and FFO
Adj. EBITDA Rental and FFO 1 Adj. EBITDA Rental and FFO 1 calculation Comments In €m FY 2024 FY 2023 ▪1 Income from rental activities decreased slightly as a result of asset disposals in 2023 Net rental income 208 210 ▪2 Costs from rental activities include costs of utilities recharged in the amount
Slide 29: Adj. EBITDA Total and FFO
Adj. EBITDA Total and FFO 2 Adj. EBITDA Total and FFO 2 calculation Comments In €m FY 2024 FY 2023 ▪1 Income from property development includes revenue recognition from forward sales and condo Income from rental activities 310 315 sales. The position is smaller than last year due to the cancellation
Slide 30: Balance Sheet
Balance Sheet Balance sheet Comments In €m Dec-24 Dec-23 ▪1 The decrease in investment properties was mainly due to the negative revaluation of yielding Investment properties including advances 3,964 1 4,911 assets (€227m) and development assets (€256m) and the disposal of the NRW-based Other non-cu
Slide 31: LTV – Methodology
LTV – Methodology LTV calculation as of Dec-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 32: LTV – Overview
LTV – Overview LTV Comments In €m Dec-24 Dec-23 1 Total interest-bearing debt of €3,535m significantly decreased compared to the Dec-2023 value Borrowings from Financial Institutions 3,007 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 33: Breakdown of Debt Maturities per Dec-2024
Breakdown of Debt Maturities per Dec-2024 Nominal amount (€m) IFRS (€m) Maturity Nominal interest rate ADLER Real Estate Bonds SSNs 2018/26 300 296 27 Apr-26 3.00% Total 300 296 1.6 years 3.00%3 Adler Group Bonds Refinanced in Jan-25; 1L New Money Facility1 1,205 1,226 31 Dec-28 12.50% PIK interest
Slide 34: Capital Structure per Dec-2024
Capital Structure (excl. Intercompany Loans) per Dec-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 35: Upfront Sale Projects
Upfront Sale Projects Actual Budget Building Construc. Land plot Area # Project name Entity City Zoning CAPEX 12M CAPEX FY permit started (k sqm) (k sqm) 20241 (€m) 20251 (€m) 1 CologneApart2 Consus Köln ✓ ✓ ✓ 11 23 2 1 2 Grand Central3 Consus Düsseldorf ✓ ✓ 34 76 1 0 PROJECT DISPOSALS SIGNED 3 Eu
Slide 36: Forward Sale and Condominium Projects
Forward Sale and Condominium Projects Actual Budget Project Expected year Building Construc. Land plot Area GAV1 GDV1 # Project name Entity City Zoning CAPEX 12M CAPEX FY category of completion permit started (k sqm) (k sqm) (€m) (€m) 20242 (€m) 20252 (€m) 2 of 3 sections 1 Quartier Hoym Forward sal
Slide 37: 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 Board Chairman of the Nomination & Member of the A
Slide 38: 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 39: Corporate Agenda
Corporate Agenda Adler Group S.A. financial calendar 2025 Investor relations contacts German Spring Conference 2025, 13 May 2025 Julian Mahlert Equity Forum, Frankfurt Head of IR & PR j.mahlert@adler-group.com 27 May 2025 Publication Q1 2025 Results Gun Vardhan Gupta 25 June 2025 Annual General Meet
Slide 40: 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