Adler Group Sa · XETR:ADJ
Adler Group Sa — ADO Properties — FY2018 Earnings Presentation
27 slides from Adler Group Sa's earnings presentation, Mar 20, 2019
Slide 1: Annual Report 2018 Financial Results
ADO Annual Report 2018 FINANCIAL RESULTS March 20, 2019
Slide 2: Overview & Investment Highlights
OVERVIEW & INVESTMENT HIGHLIGHTS 1
Slide 3: ADO – The Pure Play Berlin Residential Specialist
ADO – THE PURE PLAY BERLIN RESIDENTIAL SPECIALIST Investment highlights A focused residential portfolio(2,3)… 1 Berlin residential pure play with a EUR 4.1bn quality portfolio Residential 84% Efficient, fully integrated and scalable platform with a clear strategy to create value. 2 This unique platf
Slide 4: Highlights 2018
HIGHLIGHTS 2018 • Addition of more than 1,750 units during 2018, adding EUR 333m of fair market value Growth delivered • Annual l-f-l rental growth of 5.6% • Portfolio optimization continues with the start of Furnished Apartments • Received a second investment grade rating of BBB- from Standard & Po
Slide 5: Highlights 2018
HIGHLIGHTS 2018 Financials 2018 2017 • Strong growth continues with an increase of more than 23% for income from rental activities compared to 2017 Income from rental activities EUR 134.6m EUR 109.2m EBITDA from rental activities EUR 93.8m EUR 77.1m • Like-for-like rental growth of 5.6% slightly ahe
Slide 6: ADO Portfolio & Strategy
ANNUAL REPORT: ADO PORTFOLIO & STRATEGY ah 12) m2=m alegre) Mar N) |
Slide 7: Balanced, High-Quality Portfolio Focused on Berlin
BALANCED, HIGH-QUALITY PORTFOLIO FOCUSED ON BERLIN High-quality turn-of-the-century buildings… …with attractive rents... …and a low number of remaining restrictions 35% 657 658 # of units to be released from 30% rent restrictions 25% 28% 19% 12% 9% 10% 207 8% 7% 5% 116 7% 82 4% 54 23 31 11 1919- 195
Slide 8: Strong Growth Continued
STRONG GROWTH CONTINUED Growth profile with more than 1,750 units acquired in 2018 Angerburger Allee Kiekebuschstr. 9 S-Bahn Ring City Ring Total acquisitions (2018) Central S-Bahn Ring City Ring Total (1960-1990) (1960-1990) Property Value (year-end in EUR m) 69 33 188 20 24 333 Value/m² (EUR) 2,64
Slide 9: Strong Like-for-Like Growth and Stable Vacancies
STRONG LIKE-FOR-LIKE GROWTH AND STABLE VACANCIES Very strong l-f-l result of 5.6% in 2018 (1) Vacancy split 6.0 % 5.3% / 4.8% 5.6% 0.3% 3.5% 3.1% 3.1% 3.2% 0.2% 0.6% 0.2% Guidance 5.0% 0.2% 0.2% 0.2% 2.7% 2.7% 2.4% Privatization Fluctuation w/o CAPEX 2.2% 2.0% 2.1% 2.2% Unit CAPEX Modernization 1.3%
Slide 10: ADO's Commercial Units Support Our Growth
ADO’s COMMERCIAL UNITS SUPPORT OUR GROWTH Commercial portfolio Retail 23% 2018 2017 Office 20% Number of units 1,456 1,321 Average rent/m²/month EUR 9.42 EUR 8.94 Vacancy 4.6% 4.9% Other 24% Food & Beverages • ADO owns 1,456 commercial units at the end of 2018 which are mainly part 11% of residentia
Slide 11: Furnished Apartments
Furnished Apartments Highlights (as of today) 1) Started in October 2018 after planning phase 2) 75 units already identified as suitable, of which 33 units, are in the furnished stage and under letting 3) 14 units have been let since for an average new letting rent of EUR 22.07 per m² 4) New letting
Slide 12: Furnished Apartments
Furnished Apartments Example pictures Babelsberger Str: 1 room / 56m² / 3rd floor / €23 per m² net rent) ADO Annual Report 2018 – Financial Results 12
Slide 13: Privatization Activities Continue
PRIVATIZATION ACTIVITIES CONTINUE Sales profit – avg. sales price vs. portfolio value (*) 2018 • 66 units sold during 2018 for gross proceeds of EUR 20.3m, generating 2017 28% value uplift compared to average fair value of Central Locations +17% • Our acquisitions allowed us to increase our medium a
Slide 14: Financial Overview
FINANCIAL OVERVIEW 3
Slide 15: Overview of Balance Sheet
OVERVIEW OF BALANCE SHEET In EUR m Dec 31, 2018 Dec 31, 2017 Comments (Audited) (Audited) 1 The fair value of the portfolio was assessed by CBRE as at Dec 31, 2018. Investment properties 4,050 3,306 1 Total portfolio value of EUR 4,092m as at Dec 31, 2018 includes Other non-current assets 16 8 inves
Slide 16: Total Portfolio Value of 4.1bn
TOTAL PORTFOLIO VALUE OF 4.1bn 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) 1,524 485 678 316 1,089 4,092 Fair value (EUR/m²) 3,022 2,655 2,435 2,494 1,970 2,488 Discount rate 4.59% 4.73% 4.77% 4.93% 4.97% 4.71% Avg.
Slide 17: Fair Market Value of Portfolio Increased by 771m
FAIR MARKET VALUE OF PORTFOLIO INCREASED BY 771m Fair market value (in EUR m)1): 400 4,092 190 Yield effect 52 (14) 210 Rent effect 333 3,321 2) FMV 2017 FMV Acquisitions CAPEX Privatization Revaluation FMV 2018 1) Including condominium units with a fair market value of EUR 48m which are held at a b
Slide 18: Solid Balance Sheet with Fixed Rate Financing
SOLID BALANCE SHEET WITH FIXED RATE FINANCING Key financing figures Diversified permanent profile with weighted average debt maturity of approximately 4.7 years • Long-term debt of EUR 1,609m, almost completely fixed or hedged from diversified funding sources (EUR m) 1.7% • Diversified funding sourc
Slide 19: Overview of Profit and Loss
OVERVIEW OF PROFIT AND LOSS In EUR m Year 2018 Year 2017 Q4 2018 Comments Net rental income 128.0 103.3 33.3 1 Income from rental activities increased by 23% and is driven by l-f-l Income from facility services 6.6 5.9 1.7 rental growth of 5.6%. Q4 reflects an annualized income from rental Income fr
Slide 20: Overview of FFO
OVERVIEW OF FFO In EUR m Year 2018 Year 2017 Q4 2018 Comments EBITDA from rental activities 93.8 77.1 23.1 1 1 EBITDA from rental activities increased by 22% due to our strong 5.6% Net cash interest (25.4) (21.7) (6.3) like-for-like rental growth. Q4 reflects an annualized EBITDA of EUR 92m Current
Slide 21: Guidance 2019
GUIDANCE 2019 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 approximately EUR 65m 3 Average cost of long-term debt of 1.7% with an LTV target of maximu
Slide 22: Financial Calendar
FINANCIAL CALENDAR 4
Slide 23: Financial Calendar 2019
Financial Calendar19 April 11, 2019 May 22, 2019 June 19, 2019 Publication Ordinary Three-Month General Financial Report Ex-Dividend Meeting (Q1 2019) Date June 20, 2019 August 14, 2019 November 13, 2019 Annual Publication Publication General Half-Year Nine-Month Meeting Financial Report Financial R
Slide 24: First-Class References
First-Class References Alte Schönhauser Str. Badensche Str. 32 Mitte Wilmersdorf Berliner Str. Buddestraße Prenzlauer Berg Reinickendorf ADO Annual Report 2018 – Financial Results 24
Slide 25: Furnished Apartments
Furnished Apartments Example pictures Olivaer Platz: 2 rooms / 46m² / 1st floor / € 33 per m² net rent) ADO Annual Report 2018 – Financial Results 25
Slide 26: ADO Properties SA Shareholder Structure
ADO Properties SA shareholder structure(*) Apollo Global CGE Institutional Investors‘ Management LLC Dune International S.à r.l. Investments (No. 1) S.à r.l. Shikun & Binui Ltd. Holdings & Float no further individual (USA) (Luxembourg) (Luxembourg) (Israel) shareholder >= 10% on each level 31.96 % 1
Slide 27: mm, COLORS
mm, COLORS Annual ~ Report