EQS-News: Adler Group publishes its annual report 2024 with unqualified audit opinion

Adler Group publishes its annual report 2024 with unqualified audit opinion

• FY 2024 positive net income of €793m driven by the extraordinary result of the recapitalisation
• Successful completion of disposals of Adler’s stake in BCP and the NRW-based “Cosmopolitan portfolio”
• Focus on the residential portfolio with c. 17,900 units centred in Berlin, an attractive market with strong fundamentals and substantial embedded potential
• FY 2025 net rental income guidance in the range of €127m-135m
• Key priority to dispose of all upfront sale development projects and to complete the few remaining forward sale projects
• Sound capital structure following the completed comprehensive recapitalisation in September 2024 and partial refinancing in early 2025
• No remaining debt maturities in 2025 following significant prolongations and repayments in early 2025

Luxembourg, 29 April 2025 – Adler Group S.A. (“Adler Group”) today published its results for the fiscal year 2024 together with its audited annual report. The publication was completed within the regulatory timeframe following the subsequent publication of the audited annual reports 2022 and 2023 in September 2024.

“In FY 2024 and in the recent months, we have delivered important milestones in the implementation of our corporate strategy. With the significant disposals that we have recently completed, we can now focus on managing our rental portfolio in the attractive Berlin market and create further value”, says Dr. Karl Reinitzhuber, member of the Board of Directors and CEO of Adler Group.

“We are grateful to have published our audited annual report again within the usual regulatory timeframe. With our significantly improved capital structure and no near-term financial maturities ahead, we are on a good path to further stabilise the company and transforming it into a more effective and efficient platform” says Thorsten Arsan, member of the Board of Directors and CFO of Adler Group.

Overview of the rental business – portfolio quality significantly increased

Net rental income came in at the upper end of the guidance of €200-210m at €208m in FY 2024. This reflects a slight decrease by 1% from €210m in FY 2023 to due to portfolio sales in 2023 that no longer contributed to the 2024 income, e.g. the Wasserstadt transaction, partly compensated by rental growth.

By year-end 2024, the rental portfolio amounted to 17,929 units, of which 17,709 units are located in the Berlin area. Following the disposal of the North Rhine-Westphalia-based “Cosmopolitan portfolio” as announced on 23 December 2024, the c. 6,900 units were excluded from the Adler portfolio as per year-end 2024. The average residential rent increased significantly from €7.30/sqm/month as per December 2023 to €8.29/sqm/month as per December 2024, partially driven by the overall quality improvement of the portfolio following this disposal. The vacancy rate remained at a low level of 1.3%.

Post the successful disposals of Adler’s 62.8% stake in Brack Capital Properties N.V. (BCP) and the “Cosmopolitan portfolio”, both completed in early 2025, the company’s focus lies on the residential portfolio in Berlin, an attractive market with strong fundamentals and substantial embedded potential. For 2025, Adler Group expects to generate net rental income in the range of €127-135m.

After a valuation loss was recorded in the portfolio for the first half of 2024, a small valuation gain was recorded in the second half of the year for the first time in over two years (+0.04% like-for-like increase in value compared to 30 June 2024) with the portfolio value amounting to €3.5bn as per December 2024.

Project developments – progress on disposals

In order to fully concentrate on the yielding portfolio in Berlin, it remains the key priority to dispose of all upfront sale development projects and to complete and hand over the few remaining forward sale projects, both until the end of 2026.

Besides the larger BCP and “Cosmopolitan” transactions, Adler Group also made progress on the disposals of its upfront sale projects. The group entered into sales agreements for the Düsseldorf-based project “Grand Central” and the project “Cologne Apart” in December 2024. Further sales agreements were signed for the Frankfurt-based development project “Eurohaus” and the Düsseldorf project “UpperNord Tower” within the first months of 2025. The sale of the project “Cologne Apart” was completed at the end of April 2025 with net proceeds of €34m received. The other transactions are expected to close within the next few months.

Financial performance – positive impact from the recapitalisation

The income from operating activities amounted to minus €881m in FY 2024 (previous year: minus €1,464m) and was largely affected by the negative portfolio revaluation results in the first and second half of the year, the latter driven by the devaluation of the project developments. The Adj. EBITDA from rental activities increased slightly to €112m, up from €110m in the previous year. The net income was positive with €793m (previous-year period: net loss of €1,810m) as a result of the comprehensive recapitalisation completed in September 2024 with the conversion of certain financial instruments into equity, resulting in a largely extraordinary net finance income of €1,671m.

Capital structure – sound basis following recent measures

Due to the recapitalisation, the group’s total equity increased significantly to €1,565m as per December 2024 up from €42m as per December 2023. The loan-to-value (LTV) reduced from 97.6% as per December 2023 to 72.7% as per December 2024. At year-end 2024, Adler Group had cash and cash equivalents of €247m, not yet including proceeds from disposals of the BCP and the NRW-based “Cosmopolitan portfolio”, both completed in early 2025. As of today, there are no remaining debt maturities due in 2025 following significant prolongations and repayments completed in early 2025.
 

Webcast

A webcast for analysts and investors will be held today, 29 April 2025, at 10:00am CEST / 09:00am BST. The webcast is available at the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=WLkxKGlk

Contact

Investor Relations:
T +352 203 342 10
E investorrelations@adler-group.com