Adler Group Sa · XETR:ADJ
Adler Group Sa — ADO Properties — FY2017 Earnings Presentation
24 slides from Adler Group Sa's earnings presentation, Mar 20, 2018
Slide 1: Financial Results 2017
FINANCIAL RESULTS 2017 March 20, 2018
Slide 2: Overview & Investment Highlights
OVERVIEW & INVESTMENT HIGHLIGHTS EPRA NAV growth: Chapter 01 Kapitel Titel
Slide 3: ADO – The Pure Play Berlin Residential Specialist
ADO – THE PURE PLAY BERLIN RESIDENTIAL SPECIALIST Investment highlights …a focused 1 Berlin residential pure play with a EUR 3.3bn quality portfolio residential portfolio2,3… Efficient, fully integrated and scalable platform with clear strategy to 2 create value. This unique platform enables in-dept
Slide 4: Highlights 2017
HIGHLIGHTS 2017 Growth • • Addition of 3,270 units during 2017, adding EUR 580m of fair market value On track for our medium-term goal to increase the portfolio to 30,000 units by 2020 delivered • • Annual l-f-l rental growth of 4.8% Integration and turn-around of Horizon portfolio successfully conc
Slide 5: Highlights 2017
HIGHLIGHTS 2017 Financials 2017 2016 • Strong growth continues with income from rental activities increased by 22% compared to 2016 Income from rental activities EUR 109.2m EUR 89.8m • 1,746 units added in Q4 2017 with 1,330 further units EBITDA from rental activities EUR 77.1m EUR 63.4m signed sinc
Slide 6: ADO Portfolio & Strategy
ADO PORTFOLIO & STRATEGY Chapter 02 Kapitel Titel
Slide 7: Balanced, High-Quality Portfolio Focused on Berlin
BALANCED, HIGH-QUALITY PORTFOLIO FOCUSED ON BERLIN High-quality turn-of-the-century …with attractive rents... …and low number of remaining restrictions buildings… 40% 657 659 50% 700 35% 42% 600 40% 30% 500 30% 22% 25% 400 20% 300 297 20% 16% 11% 12% 10% 7% 8% 200 10% 6% 86 4% 7% 4% 100 29 7 0% 0% 0
Slide 8: Strong Growth Continued
STRONG GROWTH CONTINUED Strong growth profile with more than 3,200 units acquired in 2017 Tempelhofer Damm / Boxhagener Straße Friedrich-Karl-Straße S-Bahn Ring City Ring Total acquisitions (2017) Central S-Bahn Ring City Ring Total (1960-1990) (1960-1990) Property Value (year-end in EUR m) 235 98 2
Slide 9: Further Units Acquired
FURTHER UNITS ACQUIRED 1,330 units acquired in 10 transactions since reporting Q3 2017 • EUR 233m of gross asset value (including transaction costs) acquired in 10 transactions mixing asset and share deals • 20 buildings in total, of which 8 are in Central Locations, 6 in the S-Bahn Ring and 6 in th
Slide 10: Strong Like-for-Like Growth and Stable Vacancies
STRONG LIKE-FOR-LIKE GROWTH AND STABLE VACANCIES Continuously strong l-f-l results of 4.8% in 2017 Vacancy split 3.6% 7.3% 3.3% 0.3% 0.3% 6.0% 2.7% 2.7% 5.3% / 4.8% * 0.3% 3.8% Guidance: 5.0% 0.3% 2.7% From modernization CAPEX 2.3% 2.7% 2.7% 1.4% 1.7% From fluctuation w/o CAPEX and vacancy change* 1
Slide 11: ADO's Commercial Units Support Our Growth
ADO´s COMMERCIAL UNITS SUPPORT OUR GROWTH Commercial portfolio Commercial units by type 2017 2016 Retail 24% Number of units 1,321 999 Average rent/m²/month EUR 8.94 EUR 8.60 Vacancy 4.9% 3.2% Office 20% Other • ADO owns 1,321 commercial units at the end of 2017 which are 21% mainly part of resident
Slide 12: Horizon Portfolio: Case Study
HORIZON PORTFOLIO: Case Study Strong new letting results continue Key metrics (as at Dec 2017) Location Neukölln Acquisition cost (Aug 2016) EUR 174m/ EUR 1,599 per m² +24% value uplift Current fair value EUR 215m/ EUR 1,983 per m² Number of residential units 1,677 Avg. rent/m²/month: At acquisition
Slide 13: Privatization Activities on Target
PRIVATIZATION ACTIVITIES ON TARGET Privatization results and outlook Sales profit – avg. sales price vs. portfolio value • 84 units sold in 2017 for gross proceeds of 2016 2017 EUR 20m, generating 23.2% value uplift compared to average book value of Central +9.8% EUR/m² +23.2% Locations • Our acquis
Slide 14: Financial Overview
FINANCIAL OVERVIEW Chapter 03 Kapitel Titel Annual Report 2017
Slide 15: Overview of Balance Sheet
OVERVIEW OF BALANCE SHEET In EUR m Dec 31, 2017 Dec 31, 2016 Comments (Audited) (Audited) Investment properties 1 3,306 2,291 1 The fair value of the portfolio was assessed by CBRE as at Other non-current assets 8 6 Dec 31, 2017. Total portfolio value of EUR 3,321m as at Non-current assets 3,314 2,2
Slide 16: Total Portfolio Value of EUR 3.3bn
TOTAL PORTFOLIO VALUE OF EUR 3.3bn 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) 1,296 412 433 240 940 3,321 Fair value (EUR/m²) 2,684 2,360 2,171 2,378 1,699 2,198 Discount rate 4.79% 4.96% 4.86% 5.00% 5.20% 4.95% Avg
Slide 17: Fair Market Value of Portfolio Increased by EUR 995m
FAIR MARKET VALUE OF PORTFOLIO INCREASED BY EUR 995m Fair market value (in EUR m)1: 397 3,321 31 (13) 580 2,326 2 FMV 2016 FMV Acquisitions CAPEX Privatization Revaluation FMV 2017 1) Including condominium units with a fair market value of EUR 50m which are held at a book value of EUR 43m 2) Revalua
Slide 18: Solid Balance Sheet with Fixed Rate Financing
SOLID BALANCE SHEET WITH FIXED RATE FINANCING Key financing figures 2017 Diversified funding profile with weighted average debt maturity of approx. 5.4 years • Total debt of EUR 1,423m, almost completely fixed or hedged (EUR m) 1.7% • Diversified funding sources with flexible access to the 600 548 1
Slide 19: Overview of Profit and Loss
OVERVIEW OF PROFIT AND LOSS In EUR m Year 2017 Year 2016 Q4 2017 Comments Net rental income 103.3 84.7 29.1 1 Income from rental activities increased by 22% driven by Income from facility services 5.9 5.1 1.4 l-f-l rental growth of 4.8% and acquisitions. Quarter-on- Income from rental activities 1 1
Slide 20: Overview of FFO
OVERVIEW OF FFO In EUR m Year 2017 Year 2016 Q4 2017 Comments EBITDA from rental activities 1 77.1 63.4 21.2 1 EBITDA from rental activities increased by 22% due to our Net cash interest (21.7) (19.2) (6.6) strong 4.8% like-for-like rental growth and successful Current income taxes (1.0) (0.7) (0.8)
Slide 21: Guidance 2018
GUIDANCE 2018 1 We anticipate like-for-like rental growth going forward at approximately 5%. This should positively impact portfolio value, EPRA NAV and EPRA NAV per share 2 We expect our FFO 1 run rate to be approx. EUR 64m after closing all signed transactions 3 Average cost of debt of 1.8% with a
Slide 22: Financial Calendar
FINANCIAL CALENDAR May 16, 2018 June 19, 2018 June 20, 2018 Chapter Publication Q1/2018 Annual General 04 Financial Report Meeting Ex-Dividend Date Kapitel Titel Aug 15, 2018 Nov 14, 2018 Publication Publication Q2/2018 Q3/2018 Financial Report Financial Report Annual Report 2017 22
Slide 23: Annual Report 2017
Hakenfelder Straße Hermannstraße / Selchower Straße Spandau Neukölln Kottbusser Damm / Lenaustraße Großbeerenstraße / Obentrautstraße Kreuzberg Kreuzberg Annual Report 2017 23
Slide 24: Imprint
IMPRINT ADO Properties S.A. Aerogolf Center 1B Heienhaff L-1736 Senningerberg Grand Duchy of Luxembourg Chapter Investor Relations 03 T +352 26 493 412 F +352 27 860 722 Kapitel Titel M ir@ado.properties W www.ado.properties Annual Report 2017