Adler Group Sa · XETR:ADJ
Adler Group Sa — Q1 2021 Earnings Presentation
33 slides from Adler Group Sa's earnings presentation, May 28, 2021
Slide 1: Results presentation
Results presentation 28 May 2021
Slide 2: Welcome to the Adler Group
Welcome to the Adler Group Well diversified €11.7bn pan German Adler Group in short Driving future growth residential real estate portfolio Rental units1 EPRA NRV Adler Group is a pure play German residential company with a unique development pipeline, striving to deliver sustainable shareholder val
Slide 3: Highlights – Fully integrated platform
Highlights – Fully integrated platform ▪ €84.3m of NRI realised over Q1 2021, up from €27.9m in Q1 2020 mainly on the back of the consolidation of ADLER Real Estate since April 2020 €6.34/sqm/month average residential rent, up from €6.18/sqm/month in Q1 2020 Operational ▪ ▪ 1.3% like-for-like rental
Slide 4: Agenda
01. Operational performance 02. Financing structure 03. Developments 04. ESG targets 05. Guidance 2021 06. Appendix 4 Holsten Quartier, Hamburg
Slide 5: Operational performance
Operational performance 5
Slide 6: Operational highlights, portfolio optimization ongoing
Operational highlights, portfolio optimization ongoing ✓ ✓ ✓ ✓ Success with sale Operational efficiency of assets and with Further rent increase Value uplift improvements lettings ✓ In December 2020, we announced a ✓ Active capital recycling has resulted in a ✓ The portfolio outside Berlin continues
Slide 7: Fair value and quality continues to increase
Fair value and quality continues to increase Development of residential GAV (€m) Development of number of units Development of fair value (€/sqm) 10,000 90,000 2,000 1,939 1,887 9,039 81,771 9,000 8,551 8,539 80,000 75,721 1,800 8,313 1,635 68,149 69,722 69,712 1,553 8,000 70,000 1,600 66,362 63,957
Slide 8: Positive trend in average monthly rents
Positive trend in average monthly rents Residential average rent (€/sqm/m) LfL residential rental growth Residential portfolio vacancy rate 7 5.0% 9.0% 4.2% 4.2% Impact of Berlin 6.34 6.19 6.30 6.18 rent freeze since 4.0% November 2020 8.0% 6.02 3.1% 3.0% 3.3% 8.0% 6 5.60 3.0% 2.2% 5.35 5.13 2.0% 7.
Slide 9: Investments in the rental portfolio continue
Investments in the rental portfolio continue Total CAPEX and Maintenance (€m) Maintenance expense (€/sqm) 8.9 8.6 7.2 6.7 6.5 6.3 1.9 1.3 40.8 30.5 2015 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 34.4 CAPEX invested (€/sqm) 26.1 24.4 31.3 18.9 34.4 124.3 118.4 14.7 97.7 10.8 26.6 63.5 6.0 5.8 6.1 9.1
Slide 10: Vacancy reduction and rent increase ongoing
Vacancy reduction and rent increase ongoing Q1 21 Avg. Fair Value Fair Value Lettable area NRI* Rental yield Vacancy Vacancy NRI Reversionary Location Units Rent €m Q1 21 €/sqm Q1 21 sqm €m Q1 21 (in-place rent) Q1 21 Δ YoY Δ YoY LFL Potential €/sqm/month Berlin 4,591 3,344 19,853 1,372,770 117.1 2.
Slide 11: Financing structure
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Slide 12: Crystallising extensive financial synergies
Crystallising extensive financial synergies ✓ ✓ ✓ ✓ Secured financing Integration and Bond placements Debt KPIs and RCF synergy generation ✓ Successful placement of €1.5bn dual ✓ In Q1 2021 two 7 year secured loans with ✓ With a combination of successful bond ✓ Financial integration process and syne
Slide 13: Potential to further improve financial KPIs
Potential to further improve financial KPIs The group anticipates a further strengthening of the capital structure as well as improvements of the average cost of debt and the average maturity Net loan to value Weighted average cost of debt Interest coverage ratio 2.2% following Excludes future early
Slide 14: Further optimisation of the capital structure
Further optimisation of the capital structure Debt maturity schedule (€m) Debt KPIs for Q1 2021 Sources of funding 740m of cash Total interest-bearing net debt (€m) 7,608 Q1 2021 Undrawn facilities (€m) 300 2,500 €450m refinanced Net LTV 50.4%1/ 53.0%2 4% with €500m bond maturing in 2027 1,992 ICR (
Slide 15: Developments
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Slide 16: Enhanced focus on top cities and newly built flats
Enhanced focus on top 7 cities and newly built flats The portfolio today – Berlin anchored The portfolio in the future1 Other Geographical split 25.0% Other Berlin 39.4% 39.0% 53.7% Berlin 6.9% 36.0% Top 7 Top 7 16.0% Sector split 11.0% GAV GAV €11.7bn €13.2bn 73.0% 100.0% Residential rental portfol
Slide 17: Pipeline with €4.7bn worth of future rental product
Pipeline with €4.7bn worth of future rental product Projects under build to hold strategy Total GDV = €4.7bn Portfolio overview Construction Area Yield on # Project Name City GAV (€m) Period (k sqm) cost2 (%) Hamburg 1 2 1 Schwabenlandtower (Residential) Stuttgart 2019 - 2022 11.5 46.1 3.9% 403 181
Slide 18: ESG targets
GROUP FIADLER FIADLER GROUP
Slide 19: ESG has a high priority for Adler Group
ESG has a high priority for Adler Group ESG excellence is a key strategic pillar ESG ambitions in the context of new group setup Upgrade of ESG Value enhancement transparency More future Per m2 ✓ Close the gaps regarding missing and ✓ Continued improvement of value-relevant relevant ESG data ESG asp
Slide 20: Impact on Sustainable Development Goals
Impact on Sustainable Development Goals Eight of the UN Sustainable Development Goals were selected Our impact: Our impact: Our impact: Our impact: Preserve and Equal treatment of Renewal of Predominantly promote no women and men, heating systems, open-ended health endangering equal pay for switchin
Slide 21: CO2 reduction roadmap for Adler Group
CO2 reduction roadmap for Adler Group Our goal: reduce CO2 emissions of the existing portfolio by 50% by 2030 With a total lettable area of approx. 4.4 million square metres, the targeted CO2 reduction amounts to ▼ 80,000 t CO2 by 2030 Energetic Green refurbishments electrification 40 36 30 Electrif
Slide 22: Six pillars of the CO2 reduction roadmap
Six pillars of the CO2 reduction roadmap The roadmap to reach our goal by 2030 1 Green Electrification 4 Hybrid technologies Green electrification of the buildings with Electrification of heat supply by using ecological decentralised power generation hybrid technologies (heat pumps, power-to- system
Slide 23: Rolling out decentralised electricity systems
Rolling out decentralised electricity systems Pillar 1 CO2 roadmap electrification Action steps Installation of photovoltaic systems (PV) Photovoltaics for 1,000 roofs In a first step, approx. 1,000 roofs will be equipped to cover a demand-based Output: 5 kWp = 5,000 kWh per roof power supply. Fur
Slide 24: Guidance 2021
Guidance 2021 24
Slide 25: Guidance for 2021 reiterated
Guidance for 2021 reiterated 2021 Guidance Net rental income (€m) €325-339m FFO 1 (€m) €127-133m Dividend (€/share) 50% of FFO 1 Ahornstraße Steglitz Allerstr. 46 Neukölln 25
Slide 26: Appendix
GROUP FIADLER 26 Appendix
Slide 27: FFO 1 and FFO 2
FFO 1 and FFO 2 FFO 1 calculation FFO 2 calculation In € million, except per share data Q1 2021 Q1 2020 In € million, except per share data Q1 2021 Q1 2020 Net rental income 84 28 EBITDA total 60 2 18 Income from facility services and recharged utilities 28 2 Net cash interest -31 3 -5 costs Current
Slide 28: Balance sheet
Balance sheet Balance sheet Comments In € million Q1 2021 FY 2020 1 The fair value of the residential investment properties was assessed Investment properties including advances 10,339 1 10,111 by CBRE and shows the impact of positive revaluation of the group. Other non-current assets 1,750 2 1,839
Slide 29: EPRA NAV metrics
EPRA NAV metrics EPRA NAV metrics calculation In € million, except per share data Q1 2021 FY 2020 EPRA Measure NAV NRV NTA NDV NAV NRV NTA NDV Total equity attributable to owners of the Company 4,286 4,286 4,286 4,286 4,146 4,146 4,146 4,146 Revaluation of inventories 61 61 61 61 52 52 52 52 Deferre
Slide 30: Net LTV
Net LTV LTV calculation Comments 1 As of 31 March 2021, the group reports an unchanged net debt position compared to In € million Q1 2021 FY 2020 FY 2020, as gross debt has increased due to the issuance of bonds in Q1 2021 Corporate bonds, other loans and borrowings and while at the same leading to
Slide 31: Composition of the Board of Directors
Composition of the Board of Directors Dr. Peter Maser Maximilian Rienecker Thierry Beaudemoulin Arzu Akkemik Chairman Executive Director Executive Director Director German, born in 1961 German, born in 1985 French, born in 1971 Turkish, born in 1968 Partner Deloitte Legal Co-CEO Adler Group Co-CEO A
Slide 32: Experienced management team with a real estate track record
Experienced management team with a real estate track record Maximilian Rienecker Thierry Beaudemoulin Co-Chief Executive Co-Chief Executive Officer Officer Sven-Christian Frank Jürgen Kutz Theodorus Gorens Chief Legal Officer Group Development Group Integration Carsten Wolff Michael Grupczynski Gerr
Slide 33: 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