Adler Group Sa · XETR:ADJ
Adler Group Sa — Q1 2023 Earnings Presentation
39 slides from Adler Group Sa's earnings presentation, May 25, 2023
Slide 1: Results presentation
Results presentation 25 May 2023
Slide 2: Content
Content 1 Strategy Update 2 Update on the Restructuring Plan 3 Q1 2023 Overview 4 Portfolio & Operational Performance 5 Financial Performance 6 Concluding Remarks 7 Appendix 2 Kaiserstraße, Berlin
Slide 3: Strategy Update
ae FIADLER I] << 4 3 Te A psi Dh ib care
Slide 4: Update on Adler Group's Strategy
Update on Adler Group’s Strategy Continuous progress in all Adler Group’s strategy pillars Portfolio Berlin-anchored portfolio with Strategy limited development exposure ✓ Continued progress on disposal of yielding assets and development projects Asset Management Limited CAPEX policy ✓ Non-committed
Slide 5: Update on the Restructuring Plan
Update on the Restructuring Plan 5
Slide 6: Update on the Restructuring Plan
Update on the Restructuring Plan Restructuring plan in place, Group stabilisation underway Recent events Most recent progress ◼ Restructuring plan in place: Implementation ◼ Approval of the restructuring plan safeguards the Group’s liquidity position and ensures its of the Issuance of stabilisation
Slide 7: Q1 2023 Overview
Q1 2023 Overview 7
Slide 8: Q1 2023 Key Highlights
Key Highlights Strong operational performance and secured financial support via the restructuring plan PORTFOLIO FINANCIAL DISPOSALS & PERFORMANCE PERFORMANCE DEVELOPMENTS3 ◼ Lower NRI and FFO 1 on the back of ◼ Forward sale project Köningshöfe successfully ◼ 2.0% like-for-like rental growth1 decrea
Slide 9: Portfolio & Operational Performance
Portfolio & Operational Performance 9
Slide 10: Berlin-anchored Portfolio
Berlin-anchored Portfolio Portfolio quality remains high Standing assets as per Q1 20231 Fair value (€/sqm) 3,060 3,015 GAV 2,938 2,943 €5.2bn standing assets3 Berlin LIKE-FOR-LIKE Oberhausen FAIR VALUE Essen Duisburg DECREASE Dortmund Portfolio & Operational Performance Düsseldorf (3.4%) YoY (vs Q1
Slide 11: Strong Operational Performance Evidenced in Low Vacancy
Strong Operational Performance Evidenced in Low Vacancy... No portfolio appraisals in Q1 2023 Like-for-like fair value growth (%) Yielding portfolio operational vacancy rate2 (%) 1.4% 1.5% LIKE-FOR-LIKE FAIR VALUE DECREASE 1.3% 1.2% (3.4%) 1.1% YoY (vs Q1 2022) 0.0% Portfolio & Operational Performan
Slide 12: Increasing Average Monthly In-Place Rent
...Combined with Increasing Average Monthly In-Place Rent Residential and commercial average rent Like-for-like residential and commercial rental Detailed breakdown of the like-for-like (€/sqm/m) growth (%) residential and commercial rental growth (%) 7.58 7.58 2.5% Without CAPEX CAPEX 7.45 7.46 +3.
Slide 13: Financial Performance
Financial Performance 13
Slide 14: GAV Remained Unchanged in the Absence of Revaluation and Disposals
GAV Remained Unchanged in the Absence of Revaluation and Disposals GAV excluding BCP (€bn)1 Comments 1 Sale of a single yielding asset located in Berlin for c. €14m 7.4 7.3 0.0 0.0 0.0 2 During the first quarter, portfolio valuations remained largely unchanged in the absence of portfolio appraisals
Slide 15: EPRA LTV Remained Stable in Q1
EPRA LTV Remained Stable in Q1 EPRA LTV evolution1 (%) Comments 75.4% 0.5% 0.1% 74.5% 1 Sale of Parkhaus, Weg beim Jäger 206 closed in Q1 2023 0.1% 0.6% 0.1% 2 In the absence of portfolio appraisals, a revaluation loss of €6m was realised following offers received for assets held for sale not yet so
Slide 16: Debt Maturity Schedule
Debt Maturity Schedule Upcoming maturities covered by active refinancing, cash at hand and the New Money Funding Overview of debt maturities1 incl. BCP (€m) Comments Repayment of €7m and extension of 13% 18% 13% 23% 9% 4% 15% 4% €35m of BCP bank debt €500m ADLER Real Estate 2018/2023 bond has been r
Slide 17: Overview of Debt KPIs as per Q1 2023
Overview of Debt KPIs as per Q1 2023 Debt KPIs for Q1 2023 Sources of funding Bond covenants Unsecured debt 67% Incurrence-based Required Total nominal interest-bearing debt (€m) 6,607 Q1 2023 FY 2022 covenants level 2% LTV EPRA LTV 75.4%1 (Financial indebtedness / <60% 63.3% 60.9%1,2 total assets)
Slide 18: Development of Cash Position
Development of Cash Position Cash change driven by ADLER Real Estate squeeze-out, financing, CAPEX and advisory fees to restructuring Cash position, excluding BCP (€m) 387 1 41 30 54 42 38 235 6 387 235 Financial Performance FY 2022 Yielding sales Project sales ADLER Real Financing Dev. CAPEX Restru
Slide 19: Concluding Remarks
Concluding Remarks 19
Slide 20: Concluding Remarks
Concluding Remarks Objectives Concluding remarks Drawdown of New Money Facility and repayment of the Full-year 2023 guidance €500m ADLER Real Estate 2018/2023 bond, covering most of the Group’s 2023 maturities Launch of tender offer and consent solicitation for the €300m ADLER Real Estate 2017/2024
Slide 21: Q&A
dnouo q4341qgvu Q&A
Slide 22: Appendix
Appendix 23-24 Portfolio & Operational Performance 25-31 Financials 32-35 Debt Overview 36-37 Development Projects 38 Corporate Governance 39 Corporate Agenda 22 Kaiserstraße, Berlin
Slide 23: Detailed Breakdown of the Like-for-like Rental Growth
Detailed Breakdown of the Like-for-like Rental Growth Berlin properties as per Q1 2023 (%) Non-Berlin properties as per Q1 2023 (%) Consumer price index (CPI) linked leases as per Q1 2023 (%) Without CAPEX CAPEX Without CAPEX CAPEX Based on units Based on NRI +3.8% +3.8% 1.6% 2.1% 0.1% 1.8% 33.0% 0.
Slide 24: CAPEX and Maintenance in Q1 2023
CAPEX and Maintenance in Q1 2023 Total CAPEX and maintenance (€m) Maintenance expense (€/sqm) Maintenance CAPEX 8.6 7.2 6.7 6.3 5.2 4.6 165 149 1.8 41 0.8 132 31 120 2017 2018 2019 2020 2021 2022 Q1 2022 Q1 2023 34 23 95 CAPEX invested (€/sqm) 26.1 24.4 31 21.8 62 18.9 124 118 17.4 13 14.7 98 97 App
Slide 25: Profit and Loss Statement
Profit and Loss Statement P&L statement Comments In € million Q1 2023 Q1 2022 1 Compared to Q1 2022, net rental income in Q1 2023 has decreased to €53m mainly due to Net rental income 53 1 71 the disposal of the Eastern portfolio to Velero/KKR, the Waypoint portfolio and the portfolio disposal by BC
Slide 26: EBITDA from Rental Activities and EBITDA Total
EBITDA from Rental Activities and EBITDA Total EBITDA from rental activities EBITDA Total In € million Q1 2023 Q1 2022 In € million Q1 2023 Q1 2022 Net rental income 53 71 Income from rental activities 80 108 Income from facility services and recharged utilities costs 26 37 Income from property deve
Slide 27: FFO Calculation
FFO 1 and FFO 2 FFO 1 calculation FFO 2 calculation In € million, except per share data Q1 2023 Q1 2022 In € million, except per share data Q1 2023 Q1 2022 Net rental income 53 71 EBITDA Total 37 1 43 Income from facility services and recharged utilities costs 26 37 Net cash interest (32) (23) Incom
Slide 28: Balance Sheet
Balance Sheet Balance sheet Comments In € million Q1 2023 FY 20221 1 Fair value of investment properties slightly decreased on the back of reclassification of yielding assets Investment properties including advances 6,321 1 6,344 to assets held for sale Other non-current assets 327 325 Non-current a
Slide 29: EPRA NAV Metrics
EPRA NAV Metrics EPRA NAV metrics calculation In € million, except per share data Q1 20232 FY 20221,2 EPRA NAV metrics NAV NRV NTA NDV NAV NRV NTA NDV Total equity attributable to owners of the Company 1,345 1,345 1,345 1,345 1,417 1,417 1,417 1,417 Revaluation of inventories (5) (5) (5) (5) (2) (2)
Slide 30: EPRA LTV - Methodology
EPRA LTV - Methodology EPRA LTV calculation for Q1 2023 Comments Proportionate consolidation Group as Share of joint Share of material Non-controlling In € million reported ventures associates interests2 Combined The main objective of EPRA’s LTV metric is to provide 1,621 – – – 1,621 clarity on and
Slide 31: EPRA LTV - Overview
EPRA LTV - Overview EPRA LTV Comments In € million Q1 2023 FY 20221 1 Interest-bearing debts slightly decreased compared to FY 2022 figures on the back of 1,621 1 1,646 repayment of €7m BCP bank debt as well as early repayments associated to the sale of Borrowings from Financial Institutions Parkhau
Slide 32: Breakdown of Debt Maturities
Breakdown of Debt Maturities Volume (€m) IFRS (€m) Maturity Nominal interest rate Other comments Premature redemption Rate, at which premature redemption is possible ADLER Real Estate Bonds (unsecured) Tender offer launched 2017/24 300 297 6 Feb 24 2.10% Anytime Under condition of make whole Repaid
Slide 33: Debt Maturity per Entity
Debt Maturity per Entity Upcoming maturities covered by active refinancing, cash at hand and the New Money Funding Overview of debt maturity per entity1 incl. BCP (€m) Breakdown per entity 13% 18% 13% 23% 9% 4% 15% 4% Adler RE (excl. BCP) 1,544 22.8% Launch of tender offer and €400m Adler Group bond
Slide 34: Covenants Overview: Adler Group
Covenants Overview: Adler Group Due to Adler Group's unsecured bonds having effectively been amended on 17 April 2023, the ratio-based incurrence tests have been removed. Adler Group now has fixed incurrence baskets and All Adler Group covenants are incurrence-based covenants a maintenance-based LTV
Slide 35: Covenants Overview: ADLER Real Estate
Covenants Overview: ADLER Real Estate All ADLER RE covenants are incurrence-based covenants except the ICR which is a maintenance-based covenant 1 LTV: Defined as net debt / total assets (<60%) 2 Secured LTV: Defined as secured debt / total assets (<40%) In € million In € million Q1 2023 Pro forma2
Slide 36: Upfront Sale Projects
Upfront Sale Projects Progress in disposals despite difficult market conditions # Project name1 Entity City Zoning Building permit Construc. started Land plot (k sqm) Area (k sqm) 1 Arthur-Hoffmann-Straße 2 Consus Leipzig ✓ 1 2 PROJECT SOLD 2 Quartier Kaiserlei3 Consus Offenbach ✓ ✓ ✓ 33 88 3 Gr
Slide 37: Forward Sale and Condominium Projects
Forward Sale and Condominium Projects Majority of projects to be completed and handed over by 2023 Construc. Building Construc. Land plot Area GAV2 Total remaining GDV # Project name1 Entity City Zoning period permit started (k sqm) (k sqm) (€m) construc. CAPEX (€m) (€m) Forward sale projects 1 Quar
Slide 38: Adler Group Corporate Governance and Shareholder Composition
Adler Group Corporate Governance and Shareholder Composition Current composition of the Board and Senior Management Shareholder composition1,2 Prof. Dr. A. Stefan Kirsten Chairman of the Board Chairman of the Nomination & Compensation Committee Vonovia 15.9% Thilo Schmid Thomas Zinnöcker Gerda Caner
Slide 39: Corporate Agenda
Corporate Agenda Adler Group S.A. financial calendar 2023 Investor relations contacts 21 June 2023 Annual and Extraordinary General Meeting Gundolf Moritz Head of IR 29 August 2023 Publication Q2 2023 Results g.moritz@adler-group.com 28 November 2023 Publication Q3 2023 Results Julian Mahlert Senior