DGAP-News: ADLER Real Estate AG / Key word(s): Half Year Results
ADLER Real Estate AG: First half year 2016: Continued strong improvement in
operations
12.08.2016 / 10:47
The issuer is solely responsible for the content of this announcement.
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First half year 2016: Continued strong improvement in operations
- Income and earnings from property lettings rise by more than 50 percent
- Significant increases in funds from operations (FFO) and EBITDA
- 2016 FFO guidance increased
- Disposal of non-core properties initiated
- Continued reduction in the loan-to-value ratio (LTV)
- Further increases to net asset value
Hamburg, 12 August 2016. ADLER Real Estate AG, Frankfurt/M. has shown
strong improvement in operations in the first half-year 2016.
Income and earnings from property lettings rise by more than 50 percent
During this period gross rental income which predominantly comprises income
from property lettings, reached EUR 130.8 million. This represents a year-
on-year increase of 61.7 percent resulting mainly from the expansion in
property holdings as a result of the acquisitions made in the previous
year, but more importantly from the continued improvements to the property
management performance indicators such as in place rent and occupancy rate.
Earnings from property lettings amounted to EUR 61.0 million for the first
half of 2016, equivalent to a 55.6 percent rise compared to the same period
in the previous year (EUR 39.2 million).
Significant increases in funds from operations (FFO) and EBITDA
As is customary in the property sector, to assess the profitability of its
operating business ADLER Real Estate refers to funds from operations (FFO)
as its major cash flow-based key indicator. FFO increased significantly to
EUR 27.4 million with FFO I for the first half of 2016 contributing by EUR
12.0 million and almost double compared with the previous year's figure of
EUR 6.3 million. For the first half of the year, FFO I corresponded to EUR
0.21 per basic share representing an increase of 1.5 times over the
previous year's figures of EUR 0.14.
A comparison between the earnings figures for the two periods adjusted for
non-recurring and extraordinary items shows a significant increase of 32.3
percent between the two.
Adjusted EBITDA for the first half of 2016 amounted to EUR 65.1 million, up
from EUR 49.2 million in 2015. After the deduction of all non-financial
expenses, earnings before interest and taxes (EBIT) for the first six
months of the current financial year amounted to EUR 83.8 million. The
equivalent figure for the previous year was significantly higher at EUR
97.1 million due to the one-off effect resulting from the acquisition of
the Wohnungsbaugesellschaft JADE mbH in January 2015 which massively
boosted earnings.
2016 FFO guidance increased
At the beginning of August, ACCENTRO Real Estate AG in connection with its
ordinary business successfully sold a portfolio of 419 centrally located
apartments in Berlin. The improved performance generated an earnings
contribution of around EUR 10 million after taxes. The proceeds from this
trade are to be added to our guidance as they had not been taken into
account in the original forecast for 2016. The positive momentum of
ACCENTRO and the privatization sector will have a significant impact on
FFO. Therefore, the forecast for FFO has been stepped up by roughly 20
percent to an amount of around EUR 55 million.
Disposal of non-core properties initiated
A total of 683 units sold by the group were attributable to holdings
identified as "non-core" at several of the Group's property companies. The
sale of these units represents approximately 15 percent of the Group's
total non-core portfolio which is earmarked to be sold as a block or
through similar trades. The sale of non-core assets generated EUR 26
million in proceeds to the Group.
Continued reduction in the loan-to-value ratio (LTV)
The ratio of net financial liabilities to total assets (loan-to-value),
with both figures adjusted to exclude cash and cash equivalents, amounted
to 67.0 percent, 1.0 percentage point lower than at the end of 2015 and in
line with management's targets.
Further increases to net asset value
ADLER refers to net asset value (NAV) as its key group management figure
and calculates this in accordance with the guidelines issued by the
European Public Real Estate Association (EPRA). At the middle of the year,
NAV reached EUR 908.6 million and was thus 3.3 percent higher than at the
end of 2015. NAV per share came to EUR 16.01.
The complete report for the first half-year is available on the website of
ADLER Real Estate AG under www.adler-ag.com.
For inquiries please contact:
Dr. Rolf-Dieter Grass (Management)
Alrike Allameh
ADLER Real Estate AG
Gänsemarkt 50 / 5. OG
20354 Hamburg
Telefon +49 (0)40 29 81 30-0
Telefax +49 (0)40 29 81 30-99
E-Mail info@adler-ag.com
Key financial data for the first half-year 2016
<pre>
In EUR m
Consolidated statement of income H1 2016 H1 2015
Gross rental income 130.8 80.9
Earnings from property lettings 61.0 39.2
Earnings from the sale of properties 16.5 18.3
EBIT 83.8 97.1
EBITDA adjusted 65.1 49.2
FFO I 12.0 6.3
per share (EUR)* 0.21 0.14
FFO II 27.4 32.9
per share (EUR)* 0.48 0.71
Consolidated balance sheet 30.06.2016 31.12.2015
Investment Properties 2,306.1 2,270.2
EPRA NAV 908.6 879.5
per share (EUR)* 16.01 15.51
Loan-to-value (%) 67.0 68.0
Cashflow H1 2016 H1 2015
From operating activities 57.2 22.9
From investing activities 12.7 -262.6
From financing activities -51.6 302.9
Employees 30.06.2016 31.12.2015
Number of employees 305 251
FTE's (Full-time-equivalents) 281 249
</pre>
About ADLER Real Estate AG: ADLER Real Estate AG is one of Germany's
leading property companies. In recent years, the company has grown rapidly
by making acquisitions. ADLER owns almost 50,000 residential units. These
are mostly located in northern and western Germany and offer affordable
homes to tenants with medium to low incomes. Most of this portfolio will be
held and managed on a permanent basis. To this end, ADLER has established a
professional, central asset management department and is also developing
proprietary property management companies that should manage the entire
portfolio by the end of 2017. This way, ADLER is set to become an
integrated property group offering its tenants all relevant services from a
single source.
Via a group company, ADLER is also active in the privatisation market, i.e.
in converting rented apartments into freehold apartments. By selling
suitable holdings, the company can draw on market opportunities to the
benefit of its liquidity and earnings position.
By acquiring individual portfolios and stakes in companies, ADLER exploits
benefits of scale and synergies. These involve pooling external services in
order to optimise costs and adjusting internal structures. During 2016,
central administration structures previously distributed across several
locations are to be pooled in Berlin. To harmonise the company's
organisational and legal structures, its legal domicile is also being
transferred to Berlin.
ADLER is committed to generating value growth in the interests of its
shareholders. With its stable financing structures and its SDAX listing,
the company has built up a strong reputation on the capital.
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12.08.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: ADLER Real Estate AG
Herriotstr. 5
60528 Frankfurt am Main
Germany
Phone: +49 (0)40 - 29 8130-0
Fax: +49 (0)40 - 29 8130-99
E-mail: info@adler-ag.com
Internet: www.adler-ag.com
ISIN: DE0005008007, XS1211417362, DE000A1R1A42, DE000A11QF02
WKN: 500800, A14J3Z, A1R1A4, A11QF0
Indices: SDAX, GPR General Index
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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492201 12.08.2016
DGAP-News: ADLER Real Estate AG: First half year 2016: Continued strong improvement in operations
| Source: EQS Group AG