Adler Group Sa · XETR:ADJ
Adler Group Sa — Q3 2020 Earnings Presentation
34 slides from Adler Group Sa's earnings presentation, Nov 30, 2020
Slide 1: Results presentation
Results presentation Berlin, 30 November 2020
Slide 2: Welcome to the Adler Group
Adler Group | Third quarter results 2020 Welcome to the Adler Group Well diversified €14.6bn pan German Adler in short Driving future growth residential real estate portfolio Rental units1 EPRA NAV Adler is a pure play German residential company with a unique development Schleswig-Holstein Mecklenbu
Slide 3: Highlights – first time consolidation of Consus
Adler Group | Third quarter results 2020 Highlights – first time consolidation of Consus ▪ €203.2m of NRI realized over the nine months of 2020, up from €101.7m in Q3 19 mainly as a result of the consolidation of Adler per April 2020 Operational ▪ ▪ €6.25/sqm/month average residential rent, up from
Slide 4: Agenda
Adler Group | Third quarter results 2020 Agenda Operational performance Financing structure Developments Guidance confirmed Appendix 4
Slide 5: Operational performance
Operational performance
Slide 6: Operational highlights, portfolio optimization ongoing
Adler Group | Third quarter results 2020 Operational highlights, portfolio optimization ongoing ✓ ✓ ✓ ✓ Successful sale of Vacancy reduction Further rent increase Value uplift non-core assets ✓ As announced in September, we ✓ As of the end of Q3 2020, vacancy ✓ Despite the challenging regulatory ✓ O
Slide 7: Value of the underlying portfolio continues to increase
Adler Group | Third quarter results 2020 Value of the underlying portfolio continues to increase Development of GAV (€m) Development of number of units Development of fair value (€/sqm) 10,000 90,000 2,000 9,396 9,039 81,807 9,000 8,551 1,800 1,741 80,000 75,721 1,635 1,624 70,741 1,553 8,000 68,149
Slide 8: Positive trend in average monthly rents
Adler Group | Third quarter results 2020 Positive trend in average monthly rents Residential average rent (€/sqm/m) LfL residential rental growth YTD Residential portfolio vacancy rate 7.0 2.5% 9.0% 6.2 6.1 6.2 8.0% 6.0 8.0% 6.0 5.6 2.0% 5.4 2.0% 5.1 7.0% 5.0 6.0% 5.7% 1.5% 1.4% 5.0% 4.0 5.0% 4.3% 4
Slide 9: Investments in the rental portfolio continue
Adler Group | Third quarter results 2020 Investments in the rental portfolio continue Total Capex and Maintenance (€m) Maintenance expense (€/sqm) 180.0 10.0 8.9 8.6 8.0 7.2 6.5 6.7 160.0 6.0 4.9 4.8 40.8 140.0 4.0 2.0 120.0 34.4 – 2015 2016 2017 2018 2019 Q3 2019 Q3 2020 100.0 25.4 80.0 31.3 Capex
Slide 10: Vacancy reduction and rent increase ongoing
Adler Group | Third quarter results 2020 Vacancy reduction and rent increase ongoing Fair Value Fair Value Lettable area NRI1 Rental yield Vacancy Vacancy Q3 20 Avg. Rent NRI Location Units €m Q3 20 €/sqm Q3 20 sqm €m Q3 20 (in-place rent) Q3 20 Δ YoY €/sqm/month Δ YoY LFL Berlin 3,948 2,967 19,193
Slide 11: Financing structure
Financing structure
Slide 12: Financial highlights, already refinanced €1.9bn in 2020
Adler Group | Third quarter results 2020 Financial highlights, already refinanced €1.9bn in 2020 ✓ ✓ ✓ ✓ Secured financing Financing and Refinancing of Rights issue and extended mezzanine debt and & Bond placement LTV maturities synergy generation ✓ Completion of €457m rights issue with ✓ Secured ma
Slide 13: Potential to further improve financial KPIs
Adler Group | Third quarter results 2020 Potential to further improve financial KPIs Net loan to value Weighted average cost of debt Interest coverage ratio 70% 3.5% 3.3% Pro-forma 3.5 3.2% 63.3% Pro-forma 2.9% 3.0% 3.0 60% 3.0% 3.0 2.8 Pro-forma 53.8% 54.1% 53.0% 51.0% 52.9% > 2.4 50% 2.5% 2.5 2.4
Slide 14: Well balanced debt maturity profile offers opportunities
Adler Group | Third quarter results 2020 Well balanced debt maturity profile offers opportunities Debt maturity schedule (€m) Debt KPIs Sources of funding Total interest-bearing debt (€m) 7,911 Developments 2,500 Undrawn facilities (€m) 100 16% 54.1%1/ 53.0%1 Net LTV / Pro-forma LTV 8% 2,000 €250m a
Slide 15: Developments
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Slide 16: Enhanced focus on top cities and newly built flats
Adler Group | Third quarter results 2020 Enhanced focus on top 7 cities and newly built flats The portfolio today – Berlin anchored The portfolio in the future1 Other Geographical split 24.3% Berlin Other 36.8% 42.0% 50.8% Berlin 7.2% 38.9% Top 7 Top 7 4.0% 2.0% 0.7% 12.0% Sector split 10.8% GAV GAV
Slide 17: Pipeline with €5.2bn worth of future rental product
Adler Group | Third quarter results 2020 Pipeline with €5.2bn worth of future rental product Projects under Build-to-Hold strategy Portfolio overview Construction Yield on cost2 # Project Name City Area (k sqm) GAV (€m) GDV (€m) Period (%) Hamburg 1 Wasserstadt - Kornspeicher & Building 7 Berlin 201
Slide 18: Expected capex requirements of build to hold projects
Adler Group | Third quarter results 2020 Expected capex requirements of build to hold projects Annual overview of envisaged capex for the build to hold development projects (€m) 495 Envisaged capex Annual capex as % of 475 GAV1 Avg. 381 €380m 346 CAPEX P.A. 185 37 2020 2021 2022 2023 2024 2025 0.3%
Slide 19: Guidance confirmed
Guidance confirmed
Slide 20: Synergies at top end of guidance - €71m realised
Adler Group | Third quarter results 2020 Synergies at top end of guidance - €71m realised Achievements Run-rate synergies realized year-to-date (€m) During 2020 we expect to be able to meet all Operational synergies Financial synergies Expected synergies synergy targets and will continue to work on
Slide 21: 2020 guidance confirmed despite COVID-19
Adler Group | Third quarter results 2020 2020 guidance confirmed despite COVID-19 Objectives 2020 Key takeaways 2020 Guidance (i.e. combining the companies as of the effectuation in April 2020) ▪ The acquisition of ADLER has been successfully completed and Net rental income (€m) €280-300m Consus has
Slide 22: Appendix
FIADLER GROUP Appendix
Slide 23: Guidance - Net rental income for FY20E of €280-300m
Adler Group | Third quarter results 2020 Guidance - Net rental income for FY20E of €280-300m NRI in the range of €280-300m for existing portfolio for 2020E Legend 1 First full year effect from the €920m disposal of 5,900 units to Gewobag effective 1 December 2019 60 2 Berlin rental growth at zero un
Slide 24: Guidance - FFO I for FY20E of €105-125m
Adler Group | Third quarter results 2020 Guidance - FFO I for FY20E of €105-125m FFO I of €105-125m generated by existing portfolio* for 2020E Legend 1 First full year effect from the €920m disposal to Gewobag, corrected for impact of lower overhead 12 and lower financing costs 2 First full year eff
Slide 25: Profit & Loss statement
Adler Group | Third quarter results 2020 Profit & Loss statement P&L statement Comments In € thousand, except per share data 9M 2020 1 9M 2019 •1 Net rental income increased on the back of solid like-for-like rental growth of 1.4% and Net rental income 203,223 101,727 consolidation of ADLER into the
Slide 26: FFO I and FFO II
Adler Group | Third quarter results 2020 FFO I and FFO II FFO I calculation FFO II calculation In € thousand, except per share data 9M 2020 9M 2019 In € thousand, except per share data 9M 2020 9M 2019 Net rental income 203,223 101,727 Income from rental activities 266,114 107,494 Income from facilit
Slide 27: Balance sheet
Adler Group | Third quarter results 2020 Balance sheet Balance sheet Comments In € thousand Q3 2020 FY 2019 ▪1 The fair value of the portfolio was assessed by CBRE & NAI Apollo and shows the impact of Investment properties including advances 10,039 1 3,631 positive revaluation of the combined group
Slide 28: EPRA NAV and EPRA NRV
Adler Group | Third quarter results 2020 EPRA NAV and EPRA NRV EPRA NAV calculation EPRA NRV calculation In € thousand, except per share data Q3 2020 FY 2019 In €thousand, except per share data Q3 2020 FY 2019 Total equity attributable to owners of the Company 3,775,081 1 2,646,792 Total equity attr
Slide 29: Net LTV
Adler Group | Third quarter results 2020 Net LTV LTV calculation Comments In € thousand Q3 2020 FY 2019 ▪1 On the back of the combined consolidation of both ADLER and Consus into the group, the Corporate bonds, other loans and borrowings and other associated debt has increased in line with the incre
Slide 30: Composition of the Board of Directors
Adler Group | Third quarter results 2020 Composition of the Board of Directors Dr. Peter Maser Arzu Akkemik Maximilian Rienecker Thierry Beaudemoulin Chairman Director Executive Director Executive Director German, born in 1961 Turkish, born in 1968 German, born in 1985 French, born in 1971 Fund mana
Slide 31: Experienced management team with a real estate track record
Adler Group | Third quarter results 2020 Experienced management team with a real estate track record Maximilian Rienecker Thierry Beaudemoulin Sven-Christian Frank Jürgen Kutz Theodorus Gorens Co-Chief Executive Officer Co-Chief Executive Officer Chief Legal Officer Chief Development Officer Chief I
Slide 32: Selected development projects in detail (1/2)
Adler Group | Third quarter results 2020 Selected development projects in detail (1/2) Cologne Dusseldorf Dusseldorf COL III Benrather Gärten Grand Central GDV (€m): 136.8 GDV (€m): 1,128.1 GDV (€m): 565.3 Yield on cost: 5.0% Yield on cost: 5.0% Yield on cost: 3.7% GLA (K sqm): 24.2 GLA (K sqm): 215
Slide 33: Selected development projects in detail (2/2)
Adler Group | Third quarter results 2020 Selected development projects in detail (2/2) Frankfurt Hamburg Stuttgart Ostend Holsten Quartiere VAI Campus GDV (€m): 300.8 GDV (€m): 942.6 GDV (€m): 952.6 Yield on cost: 4.2% Yield on cost: 4.3% Yield on cost: 4.5% GLA (K sqm): 42.6 GLA (K sqm): 150.0 GLA
Slide 34: Disclaimer
Adler Group | Third quarter results 2020 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