Adler Group Sa · XETR:ADJ
Adler Group Sa — Q1 2022 Earnings Presentation
43 slides from Adler Group Sa's earnings presentation, May 31, 2022
Slide 1: Results presentation
Results presentation 31 May 2022
Slide 2: Content
Content 1 Q1 2022 Overview 2 Portfolio & Operational Performance 3 Financial Performance 4 Guidance 5 Appendix 2 Braunschweiger Strasse, Berlin
Slide 3: Q1 2022 Overview
Q1 2022 Overview 3
Slide 4: Corporate Governance Update
Corporate Governance Update Implementation of solutions on track Recent events Most recent progress ◼ Management: Publication of the ◼ Appointment of Mr Echelmeyer as interim CFO, starting as per 1 June, and ongoing Appointment of outcomes of the Presentation of Prof. Dr. Kirsten special The Board o
Slide 5: Key Highlights
Key Highlights Robust operational performance, sufficient liquidity position PORTFOLIO FINANCIAL DEVELOPMENT PERFORMANCE PERFORMANCE PROGRESS ◼ +2.1% like-for-like rental growth1 ◼ Lower NRI and FFO 1 on the back of the ◼ €71m GAV condominium and forward sales disposal of non-strategic assets: proje
Slide 6: Portfolio & Operational Performance
Portfolio & Operational Performance 6
Slide 7: Continuous Increase in Portfolio Quality
Continuous Increase in Portfolio Quality Post non-strategic disposals, a high-quality portfolio remains anchored in Berlin Standing assets as per Q1 20221 Fair value (€/sqm) 3,015 3,060 GAV 45 333 2,640 42 2,268 372 €5.7bn standing assets4 Berlin 1,887 LFL fair Oberhausen value growth Essen Duisburg
Slide 8: Reshaping the Portfolio Pushes Vacancy to All-time Lows
Reshaping the Portfolio Pushes Vacancy to All-time Lows… Like-for-like fair value growth (%) Yielding portfolio operational vacancy rate6 (%) 10.1% 3.8% LIKE-FOR-LIKE 3.4% FAIR VALUE GROWTH 6.7% 8.6% 2.6% YoY (vs Q1 2021) Portfolio & Operational Performance 0.1% 1.2% VACANCY 1.1% 1.1% 2.7% DECREASED
Slide 9: Significantly Increases the Average Monthly In-Place Rent
… and Significantly Increases the Average Monthly In-Place Rent Residential and commercial average rent Like-for-like residential rental growth (%) Like-for-like rental growth breakdown3 (%) (€/sqm/m) 7.45 0.01 7.46 2.6% 0.0% 2.6% 0.1% 2.3% 7.22 0.23 2.1% 2.5% 6.82 0.40 6.30 6.34 2.2% 2.1% 1.4% 1.3%
Slide 10: Financial Performance
FIADLER GROUP Financial Performance
Slide 11: GAV Stable with Revaluations Offsetting Sales in Q1 2022
GAV Stable with Revaluations Offsetting Sales in Q1 2022 Further sales of developments and yielding assets to further strengthen the balance sheet GAV (€bn) Comments 1 Sale of c. 14,400 units in eastern regions to Velero/KKR for €1.0bn. 11.2 97% of the assets have been transferred to Velero/KKR as p
Slide 12: Stable LTV in Q1, Moving Towards our <50% Target
Stable LTV in Q1, Moving Towards our <50% Target Pro forma LTV evolution1,2 (%, incl. convertibles) Comments 1 Buyback of the Kreuzstraße development project in Q1 2022, which has been resold in April 2022 generating a cash inflow of c. €17m. 1.1% 52.0% 0.3% 1.4% 2 Positive value changes on the back
Slide 13: More Than Half of the Debt Expirations in 2022 Extended or Repaid
More Than Half of the Debt Expirations in 2022 Extended or Repaid Overview of debt maturities1 (€m) Comments Upcoming maturities are 11% 14% 15% 11% 20% 8% 4% 17% covered through a combination of €940m2 cash on hand as per Q1 2022, expected receivables and active capital recycling measures including
Slide 14: Development of Cash Position
Development of Cash Position Sufficient liquidity to fund CAPEX needs and service debt obligations Cash position excluding BCP cash (€m)1 Expected cash in and outflows for the remainder of 2022 321 1,000 – 1,200 307 217 1,500 – 1,700 17 c.765 394 20 565 55 760 19 298 c. 600 556 20 10 29 Financial Pe
Slide 15: Guidance
Guidance 15
Slide 16: Guidance for 2022 Confirmed
Guidance for 2022 Confirmed Objectives Concluding remarks Yielding asset portfolio value increased by €79m Full-year 2022 guidance resulting in a +1.4% LFL value uplift in the first three months of 2022 on the back of a +2.1% LFL rent increase. Operational vacancy of the total portfolio at a structu
Slide 17: Q&A
q44a1qgvu Q&A
Slide 18: Appendix
FIADLER ae GROUP oe Abeba i’ P a
Slide 19: Profit and Loss Statement
Profit and Loss Statement P&L statement Comments In € million Q1 2022 Q1 20211 1 Compared to Q1 2021, net rental income in Q1 2022 decreased to €71m mainly due to the Net rental income 71 1 84 reshaping of the yielding assets following the disposal of the Northern portfolio to LEG. Income from facil
Slide 20: EBITDA from Rental Activities and EBITDA Total
EBITDA from Rental Activities and EBITDA Total EBITDA from rental activities EBITDA Total In € million Q1 2022 Q1 20211 In € million Q1 2022 Q1 20211 Net rental income 71 84 Income from rental activities 108 112 Income from facility services and recharged utilities costs 37 28 Income from property d
Slide 21: FFO Calculation
FFO 1 and FFO 2 FFO 1 calculation FFO 2 calculation In € million, except per share data Q1 2022 Q1 20211 In € million, except per share data Q1 2022 Q1 20211 Net rental income 71 84 EBITDA total 43 1 25 Income from facility services and recharged utilities costs 37 28 Net cash interest (23) (32) Inc
Slide 22: Balance Sheet
Balance Sheet Balance sheet Comments In € million Q1 2022 FY 2021 1 The fair values of the build-to-hold project developments and the yielding investment properties show Investment properties including advances 7,202 1 7,116 the impact of the positive revaluations. Goodwill 91 91 Other non-current a
Slide 23: EPRA Metrics
EPRA Metrics EPRA metrics calculation In € million, except per share data Q1 20221 FY 20211 EPRA metrics NAV NRV NTA NDV NAV NRV NTA NDV Total equity attributable to owners of the Company 2,984 2,984 2,984 2,984 2,990 2,990 2,990 2,990 Revaluation of inventories 8 8 8 8 8 8 8 8 Deferred tax 884 884
Slide 24: Net LTV
Net LTV LTV calculation Comments In € million Q1 20221 FY 20211 1 The selected financial assets have declined to €727m and contain purchase price Corporate bonds and other loans and borrowings 7,286 7,440 receivables amongst others. They include 1) netted financial receivables (€370m), 2) trade rece
Slide 25: Overview of Debt KPIs as per Q1 2022
Overview of Debt KPIs as per Q1 2022 Debt KPIs for Q1 2022 Sources of funding Bond covenants Unsecured debt 65% Required Total nominal interest-bearing debt (€m) 7,640 Covenants Q1 2022 FY 2021 level 3% LTV Net LTV 52.0%1,2 (Financial indebtedness / <60% 51.3%2 54.5%2 total assets) ICR (x) 2.22 33%
Slide 26: Covenants Overview: Adler Group
Covenants Overview: Adler Group All Adler Group covenants are incurrence-based covenants 1 LTV: defined as net debt / total assets (<60%) 2 Secured LTV: defined as secured debt / total assets (<45%) Secured debt In € million In € million Q1 2022 Pro forma3 Q1 2022 Pro forma3 Pro forma3,4 Consolidate
Slide 27: Covenants Overview: ADLER Real Estate
Covenants Overview: ADLER Real Estate All ADLER RE covenants are incurrence-based covenants except the ICR which is a maintenance-based covenant 1 LTV: defined as net debt / total assets (<60%) 2 Secured LTV: defined as secured debt / total assets (<40%) Secured debt In € million In € million Q1 202
Slide 28: €400m ADLER Real Estate 2019/22 Bond has been Repaid in April
€400m ADLER Real Estate 2019/22 Bond has been Repaid in April Volume (€m) IFRS (€m) Maturity Nominal interest rate Other comments Premature redemption Rate, at which premature redemption is possible ADLER Real Estate Bonds (unsecured) 2017/24 300 293 6 Feb 24 2.10% Anytime Under condition of make wh
Slide 29: Receivables Backed by Underlying Assets and on Track
Receivables Backed by Underlying Assets and on Track Overview of financial receivables Right of withdrawal / # Description Type Receivables (€m) Security Selected financial assets per Q1 2022 726 Partners Immobilien Capital Management bought non-strategic development projects in December 2020. Rever
Slide 30: CAPEX and Maintenance in Q1 2022
CAPEX and Maintenance in Q1 2022 Total CAPEX and maintenance (€m) Maintenance expense (€/sqm) PROCUREMENT Maintenance OPTIMISATION 8.9 CAPEX 8.6 AND INCREASED SCALE 7.2 6.7 6.3 5.2 165 149 41 1.3 0.8 132 31 120 2016 2017 2018 2019 2020 2021 Q1 Q1 34 2021 2022 23 95 CAPEX invested (€/sqm) 26.1 CAPEX
Slide 31: CAPEX 2022-2028E Covered by Cash Reserves and Envisaged Disposals
CAPEX 2022-2028E Covered by Cash Reserves and Envisaged Disposals With a more balanced build-to-hold portfolio, the anticipated cash requirements diminish to healthy levels Annual overview of envisaged construction CAPEX for the build-to-hold development projects (€m)1 Covered by cash Covered by env
Slide 32: Build-to-Hold Projects
Build-to-Hold Projects Two projects under construction Total Construc. 3 remaining Construc. Building Construc. Land plot Area Land value CAPEX GAV GDV YoC # Project name1,2 City Zoning construc. period permit started (k sqm) (k sqm) (€m) spent (€m) (€m) (%) CAPEX (€m) (€m) Wasserstadt 1 Berlin 2018
Slide 33: Upfront Sale Projects
Upfront Sale Projects Twelve projects under construction # Project name1 City Construc. period Zoning Building permit Construc. started Land plot (k sqm) Area (k sqm) 1 Ostend Quartier2 Frankfurt 2023 - 2027 12 44 2 Arthur-Hoffmann-Straße 2 Leipzig 2023 - 2024 ✓ 1 2 PROJECTS SOLD 3 Späthst
Slide 34: Forward Sale Projects
Forward Sale Projects Five projects under construction Total remaining Construc. Construc. Land plot Area GAV construc. GDV # Project name City Zoning Building permit period started (k sqm) (k sqm) (€m) CAPEX (€m) (€m) 1 Magnolia (Dessauer Str.) Leipzig 2019 - 2022 ✓ ✓ ✓ 5 10 38 0 39 HANDED OVER Qua
Slide 35: Condominium Projects
Condominium Projects Three projects under construction Total remaining Construc. Construc. Land plot Area GAV construc. GDV # Project name1 City Zoning Building permit period started (k sqm) (k sqm) (€m) CAPEX (€m) (€m) Dreizeit – Wohnen an 1 Stuttgart 2019 - 2021 ✓ ✓ ✓ 4 4 34 – 34 HANDED OVER der V
Slide 36: Shareholder Structure
Shareholder Structure Largest shareholders1 Vonovia 20.5% 7.4% Gerda Caner 6.1% 66.0% Aggregate Holdings Free Float Appendix 36 1. Notification of Vonovia as at 26 April 2022, notification of Gerda Caner as at 18 January 2022, notification of Aggregate Holdings as at 22 February 2022.
Slide 37: Overview of the Composition of the Board
Overview of the Composition of the Board Current composition of the Board Remarks Prof. Dr. A. Stefan Kirsten New division of responsibilities among Board members Chairman of the Board Chairman of the Nomin. & Compen. Committee Individual vote of confidence on each Board member at the AGM on Co-foun
Slide 38: Current Corporate Governance Status
Current Corporate Governance Status Process Special investigation on the allegations concluded Transparency Result: No fraud, just weak governance Results of special investigation reflected in disclaimer of opinion Implications for Financial Statements 2021. To be resolved by FY 2022 Governance Unde
Slide 39: Corporate Agenda
Corporate Agenda Adler Group S.A. financial calendar 2022 Investor relation contacts 29 June 2022 Annual General Meeting Gundolf Moritz Head of IR 31 August 2022 Publication Q2 2022 Results [email protected] 30 November 2022 Publication Q3 2022 Results Julian Mahlert Senior IR Manager j.mahle
Slide 40: Disclaimer
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 IS UNLAWFUL. This presentation (“Presenta
Slide 41: Clarification update June 2022
Clarification update 2 June 2022
Slide 42: Clarification on promissory notes and cross guarantees
Clarification on promissory notes and cross guarantees Company’s statement At our (Adler Group S.A.’s) Q1 2022 presentation, we have been asked about outstanding promissory notes (Schuldscheindarlehen) and to clarify whether any promissory notes are not reflected in our financial accounts. Additiona
Slide 43: Disclaimer
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 IS UNLAWFUL. This presentation (“Presenta