EQS-News: Adler Group S.A. with solid operational performance in Q1 2025

Adler Group S.A. with solid operational performance in Q1 2025

• Successful completion of disposals of Adler’s stake in BCP and the NRW-based portfolio in Q1 2025
• Focus on the residential portfolio with c. 17,900 units centred in Berlin, an attractive market with strong fundamentals and substantial embedded potential
• Rental business continued to develop positively during the first quarter with 1.9% like-for-like rental growth and operational vacancy of just 1.5%; FY 2025 net rental income guidance confirmed
• Refinancings of the 1L and 1.5L facilities successfully completed in Q1 2025
• No remaining debt maturities in 2025 following significant prolongations and repayments in early 2025
• Remaining 2026 maturities of €349m include the €300m Adler RE bond which will be refinanced with a tap under the 1^st lien New Money Facility in the course of June 2025

Luxembourg, 27 May 2025 – Adler Group S.A. (“Adler Group”) today announces its results for the three-month period ending March 2025.

Overview of the rental business – portfolio quality further increased

Post the successful disposals of Adler’s 62.8% stake in Brack Capital Properties N.V. (BCP) and the “Cosmopolitan portfolio”, both completed in early 2025, the company’s focus lies on the residential portfolio in Berlin, an attractive market with strong fundamentals and substantial embedded potential.

Considering the impact of these two disposals, net rental income in Q1 2025 decreased from €51m in the previous year to €37m. The decrease was partly compensated by rent increases realised on the remaining assets. Adler Group confirms its 2025 net rental income guidance in the range of €127-135m.

As per 31 March 2025, the rental portfolio amounted to 17,908 units, of which 17,688 units are located in the Berlin area. The average residential rent increased significantly from €7.63/sqm/month as per March 2024 to €8.31/sqm/month as per March 2025, largely driven by the overall quality improvement of the portfolio following the disposal of the NRW portfolio. Like-for-like rental growth amounted to 1.9% and is expected to further increase in the coming periods. The vacancy rate remained at a low level of 1.5%.

Compared to the year-end 2024, the portfolio value remains unchanged at €3.5bn as there was no portfolio revaluation in Q1 2025. The next portfolio revaluation will be concluded in Q2 2025.

Project developments – divestments until end of 2026

In order to fully concentrate on the yielding portfolio in Berlin, it remains the key priority to dispose of all upfront sale development projects and to complete and hand over the few remaining forward sale projects, both until the end of 2026.

Financial performance – lower rental income and earnings as a result of a smaller portfolio

The income from operating activities amounted to minus €35m in Q1 2025 (previous year: €12m) as it was negatively affected by the result from the project development business. The Adj. EBITDA from rental activities amounted to €21m, down from €31m in the previous year. The net result of minus €170m (previous year: minus €81m) was negatively impacted by interest expenses and one-off effects in relation to the refinancing of the 1L and 1.5L facilities.

Capital structure – sound basis following recent measures

In Q1 2025, Adler Group successfully refinanced the 1L and 1.5L facilities and thereby expects to reduce its cost of debt and to save approx. €134m interest costs over the expected remaining lifetime of both the 1L and 1.5L.

There are no remaining debt maturities due in 2025 following significant prolongations and repayments completed in early 2025. As recently announced, the company launched a cash tender offer to repurchase the outstanding €300m Adler RE 2026 bond with a tap under the 1L New Money Facility. Commitments in the amount of c. €240m had been received from Adler RE bondholders at the beginning of the tender offer period which will expire on 17 June 2025.

With the impact from the deconsolidation of BCP, the loan-to-value (LTV) reduced from 72.7% as per December 2024 to 67.9% as per March 2025. At the end of Q1 2025, Adler Group had cash and cash equivalents of €293m.

Webcast

A webcast for analysts and investors will be held today, 27 May 2025, at 10:00am CEST / 09:00am BST. The webcast is available at the following link:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=EuS8XPaq

Contact

Investor Relations:
T +352 203 342 10
E investorrelations@adler-group.com