Adler Group Sa · XETR:ADJ
Adler Group Sa — ADO Properties — Q2 2017 Earnings Presentation
20 slides from Adler Group Sa's earnings presentation, Aug 17, 2017
Slide 1: August 17, 2017
AUGUST 17, 2017 1
Slide 2: Overview & Investment
ADG 0 VerVvcew! & hveptment ae | So | Ci) ae | vo als Ss a
Slide 3: ADO – The Pure Play Berlin Residential Specialist
ADO – THE PURE PLAY BERLIN RESIDENTIAL SPECIALIST Investment highlights Key metrics (end of Q2 2017)1 Buildings 345 1 Berlin residential pure play with a € 2.6bn quality portfolio Residential units 18,061 Efficient, fully integrated and scalable platform with clear Commercial units 1,063 Total units
Slide 4: Highlights Q2 2017
HIGHLIGHTS Q2 2017 FINANCIALS Q2 2017 H1 2017 • Strong operational performance continued with like- for-like rental growth of 5.4% above our target of 5% Income from rental activities € 26.1m € 51.4m EBITDA from rental activities € 18.5m € 36.5m • Income from rental activities increased by 23% compa
Slide 5: So | Ci) ae |
So | Ci) ae |
Slide 6: Quality, Balanced, Berlin Focused Portfolio
QUALITY, BALANCED, BERLIN FOCUSED PORTFOLIO High quality turn of the century buildings… …with attractive rents... …and low number of remaining restrictions 700 37.7% 36% 659 % of Fair Value # of units 621 600 27.9% 500 24% 409 400 18.1% 300 12% 11% 200 6.2% 6% 116 4.0% 6.1% 5% 86 100 3% 29 0 1919- 1
Slide 7: Further Units Acquired
FURTHER UNITS ACQUIRED 881 units acquired in 9 transactions since Q1 2017 reporting Signed after Q1 2017 reporting • € 145.3m of gross asset value (including transaction costs), mostly Altbau, acquired in 9 transactions mixing asset and share deals • 26 buildings in total, of which 7 are in Central
Slide 8: Strong Like-for-Like Growth and Stable Vacancies
STRONG LIKE-FOR-LIKE GROWTH AND STABLE VACANCIES Continuously strong L-f-L results of 5.4% in Q2 2017 Vacancy split 8.0% 7.3% 3.3% 6.0% 5.4% 2.5% 2.7% 2.7% 3.8% Guidance: 0.3% 0.3% 2.7% 5.0% 0.2% 2.4% 1.6% From modernization CAPEX 0.2% 1.6% From fluctuation w/o CAPEX and 2.7% 1.3% 1.4% vacancy chang
Slide 9: ADO's Commercial Units Support Our Growth
ADO´s COMMERCIAL UNITS SUPPORT OUR GROWTH COMMERCIAL PORTFOLIO Commercial units by type Q2 2017 2016 Other Retail Number of units 1,063 999 12% 29% Average rent / sqm / month € 8.93 € 8.60 Education Vacancy 3.6% 3.2% & Social 14% • ADO owns 1,063 commercial units by the end of Q2 which are mainly pa
Slide 10: Horizon Portfolio: Case Study
HORIZON PORTFOLIO: Case Study Strong new-letting results continue KEY METRICS (per June 2017) Location Neukölln Acquisition cost € 174m/ € 1,599 per sqm +11.5% value uplift Current fair value € 194m/ € 1,784 per sqm Number of residential units 1,677 Avg. rent / sqm / month: At acquisition € 6.17 Cur
Slide 11: Privatization Activities on Target
PRIVATIZATION ACTIVITIES ON TARGET Privatization results and outlook Sales profit – Avg. sales price vs. portfolio value • 40 units sold in H1 2017 for gross proceeds of €/sqm 3,146 € 8.3m, generating around 27.8% value uplift Avg. portfolio value 2,461 +27.8% compared to average book value of Centr
Slide 12: Financial Overview
ADG Ht ypwapotadl. 0 VerVvcew aa 8. | So | Ci) ae | ws oe Ss c =i r ee = a == L = =
Slide 13: Overview of Balance Sheet
OVERVIEW OF BALANCE SHEET In € m Jun 30, 2017 Dec 31, 2016 Comments (Unaudited) (Audited) •1 Total portfolio value of € 2,646m as at June 30, 2017 includes Investment properties 1 2,597 2,291 investment properties (€ 2,547m) and trading properties (€ 49m Other non-current assets 7 6 fair value / € 4
Slide 14: Total Portfolio Value of € 2.6bn
TOTAL PORTFOLIO VALUE OF € 2.6bn S-Bahn Ring City Ring Portfolio Valuation Central S-Bahn Ring City Ring Total (1960-1990) (1960-1990) Fair Value in €m 1,053 309 367 161 706 2,596 Fair Value / sqm in € 2,461 2,155 1,958 2,260 1,496 1,994 Discount rate (%) 4.5% 4.7% 4.7% 4.7% 5.0% 4.7% Average in-pla
Slide 15: Solid Balance Sheet with Fixed Rate Financing
SOLID BALANCE SHEET WITH FIXED RATE FINANCING Key financing figures Q2 2017 Diversified funding profile with weighted average debt • Total debt of € 917m, primarily mortgage backed/secured with maturity of approx. 5.1 years almost all loans with fixed interest rate or hedged Bank debt (€m) • No mate
Slide 16: Overview of Profit and Loss
OVERVIEW OF PROFIT AND LOSS Comments In € m H1 2017 Q2 2017 Year 2016 1• Income from rental activities increased by 23% driven by l-f-l rental Net rental income 48.3 24.3 84.7 growth of 5.4% and acquisitions. Quarter-on-quarter growth was 3%. Q2 Income from facility services 3.1 1.8 5.1 reflects an
Slide 17: Overview of FFO
OVERVIEW OF FFO Comments In € m H1 2017 Q2 2017 Year 2016 1• EBITDA from rental activities increased by 23% due to our strong 5.4% 1 like-for-like rental growth and successful acquisitions. Quarter-on-quarter EBITDA from rental activities 36.5 18.5 63.4 growth was 3%. Q2 reflects an annualized EBITD
Slide 18: Guidance 2017
GUIDANCE 2017 We anticipate like-for-like rental growth going forward to be at least 5% which should positively 1 impact portfolio value, EPRA NAV and EPRA NAV per share We update our FFO1 run-rate guidance to be at least € 62m after investing the proceeds of our 2 bond placement 3 Average cost of d
Slide 19: Financial Calendar 2017
FINANCIAL CALENDAR 2017 Nov 15, 2017 Publication Q3/2017 financial report “Leibnizstr.”, “Bötzowstr.”, “Ahornstr.”, “Gutenbergstr.”, “Putbusser Str.”, “Schichauweg”, Charlottenburg Pankow Steglitz Köpenick Wedding Tempelhof 19
Slide 20: ADO Properties S.A.
ADO Properties S. A. Aerogolf Center 1B Heienhaff, L-1736 Senningerberg Grand Duchy of Luxembourg T +352 26 493 412 F +352 27 860 722 E [email protected] W investors.ado.immo 20