Adler Group Sa · XETR:ADJ
Adler Group Sa — ADO Properties — Q2 2018 Earnings Presentation
20 slides from Adler Group Sa's earnings presentation, Aug 15, 2018
Slide 1: Financial Results Q2 2018
FINANCIAL RESULTS Q2 2018 August 15, 2018
Slide 2: Overview & Investment Highlights
OVERVIEW & INVESTMENT HIGHLIGHTS Chapter 01 Kapitel Titel
Slide 3: ADO – The Pure Play Berlin Residential Specialist
ADO – THE PURE PLAY BERLIN RESIDENTIAL SPECIALIST Investment highlights A focused 1 Berlin residential pure play with a EUR 3.8bn quality portfolio residential portfolio(3,4)… Efficient, fully integrated and scalable platform with clear strategy to 2 create value. This unique platform enables in-dep
Slide 4: Highlights Q2 2018
HIGHLIGHTS Q2 2018 Financials Q2 2018 H1 2018 • Strong growth continues with income from rental activities increased by more than 26% compared to Income from rental activities EUR 33.7m EUR 65.0m the same period 2017 EBITDA from rental activities EUR 24.2 EUR 46.7m • 1,289 units added in Q2 2018 wit
Slide 5: ADO Portfolio & Strategy
ADO PORTFOLIO & STRATEGY Chapter 02 Kapitel Titel
Slide 6: Balanced, High-Quality Portfolio Focused on Berlin
BALANCED, HIGH-QUALITY PORTFOLIO FOCUSED ON BERLIN High-quality turn-of-the-century …with attractive rents... …and low number of remaining restrictions buildings… 40% 32% 657 658 # of units to be released from rent restrictions 24% 24% 19% 12% 11% 207 9% 7% 5% 116 7% 7% 82 4% 54 23 31 11 1919- 1950-
Slide 7: Further Units Acquired
FURTHER UNITS ACQUIRED 85 units acquired in 3 transactions since reporting Q1 2018 • EUR 27m of gross asset value (including transaction costs) acquired in 3 transactions mixing asset and share deals • 3 buildings in total, of which 1 is in Central Location, 1 in the S-Bahn Ring and 1 in the City Ri
Slide 8: Strong Like-for-Like Growth and Decreasing Vacancies
STRONG LIKE-FOR-LIKE GROWTH AND DECREASING VACANCIES Continuously strong l-f-l results of 5.1% in 1st HY 2018 Vacancy split 6.0% 3.3% 3.6% 3.5% 3.1% 5.3% / 4.8% 5.1 % 0.2% 0.2% Guidance: 5.0% 0.3% 2.7% 0.2% From modernization CAPEX 2.7% 2.9% From fluctuation w/o CAPEX 2.2% and vacancy change 2.3% 2.
Slide 9: Privatization Activities on Target
PRIVATIZATION ACTIVITIES ON TARGET Privatization results and outlook(*) Sales profit – avg. sales price vs. portfolio value • 35 units sold in H1 2018 for gross proceeds of EUR 8.4m, H1 2018 generating 30.0% value uplift compared to average fair value of Central Locations +30.0% • Our acquisitions a
Slide 10: Financial Overview
FINANCIAL OVERVIEW Chapter 03 Kapitel Titel
Slide 11: Overview of Balance Sheet
OVERVIEW OF BALANCE SHEET In EUR m June 30, 2018 Dec 31, 2017 Comments (Unaudited) (Audited) Investment properties 1 3,783 3,306 1 The fair value of the portfolio was assessed by CBRE as at Other non-current assets 10 8 June 30, 2018. Total portfolio value of EUR 3,819m as at Non-current assets 3,79
Slide 12: Total Portfolio Value of EUR 3.8bn
TOTAL PORTFOLIO VALUE OF EUR 3.8bn Portfolio Valuation(1) S-Bahn Ring City Ring Central S-Bahn Ring City Ring Total (1960-1990) (1960-1990) Fair value (in EUR m)(2) 1,437 466 623 267 1,026 3,819 Fair value (EUR/m²) 2,862 2,488 2,296 2,507 1,824 2,343 Discount rate 4.67% 4.84% 4.79% 4.90% 5.07% 4.83%
Slide 13: Fair Market Value of Portfolio Increased by EUR 498m
FAIR MARKET VALUE OF PORTFOLIO INCREASED BY EUR 498m Fair market value (in EUR m)(1): 213 3,819 Yield effect 135 268 23 (6) 78 Rent effect 3,321 2 FMV 31.12.2017 FMV Acquisitions CAPEX Privatization Revaluation FMV 30.06.2018 1) Including condominium units with a fair market value of EUR 53m which a
Slide 14: 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 approx. 5.0 years • Long-term debt of EUR 1,417m, almost completely fixed or hedged (EUR m) 1.7% • Diversified funding sources with flexible access to the 600 556
Slide 15: Overview of Profit and Loss
OVERVIEW OF PROFIT AND LOSS In EUR m H1 2018 Q2 2018 Year 2017 Comments Net rental income 61.6 31.8 103.3 1 Income from rental activities increased by 26% driven by Income from facility services 3.4 1.8 5.9 l-f-l rental growth of 5.1% and acquisitions. Quarter-on- Income from rental activities 1 64.
Slide 16: Overview of FFO
OVERVIEW OF FFO In EUR m H1 2018 Q2 2018 Year 2017 Comments EBITDA from rental activities 1 46.7 24.2 77.1 1 EBITDA from rental activities increased by more than 28% Net cash interest (12.8) (6.3) (21.7) due to our strong 5.1% like-for-like rental growth and Current income taxes (0.6) (0.5) (1.0) su
Slide 17: Guidance 2018
GUIDANCE 2018 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 at least EUR 66m after closing all signed transactions based on the long-term financing str
Slide 18: Financial Calendar
FINANCIAL CALENDAR November 14, 2018 Chapter 04 Publication Kapitel Titel Q3/2018 Financial Report 18
Slide 19: Hakenfelder Straße Spandau Hermannstraße / Selchower Straße
Hakenfelder Straße Hermannstraße / Selchower Straße Spandau Neukölln Kottbusser Damm / Lenaustraße Großbeerenstraße / Obentrautstraße Kreuzberg Kreuzberg 19
Slide 20: Imprint
IMPRINT Chapter 03 ADO Properties S.A. Investor Relations Kapitel Titel Aerogolf Center T +352 26 493 412 1B Heienhaff F +352 27 860 722 L-1736 Senningerberg Grand Duchy of Luxembourg E [email protected] W www.ado.properties