adler real estate ag...1.2 adler real estate ag –at a glance significant ffo increases for the...
TRANSCRIPT
ADLER REAL ESTATE AG
Company Presentation – November 2017
9M 2017 results
Content
1. ADLER Real Estate AG – at a glance
2. Market environment
3. 9M 2017 Financial performance
4. 9M 2017 Operational performance
5. ACCENTRO Real Estate AG
6. ADLER on the Capital Markets
7. Governance and operational organisation
8. Guidance and outlook
Page 2Unlock organic growth potential
Company presentation
9M 2017
An ongoing success story
1. ADLER Real Estate AG - at a glance
3
1.1 ADLER Real Estate AG – at a glance
■ A leading listed real estate company in Germany
■ SDAX-listed since 2015 (also included in FTSE EPRA/Nareit, Global Real Estate Index, GPR General Index, DIMAX)
■ Focus on growth and value creation
■ Event-driven/special situation strategy
■ Strong acquisition-led growth 2013 to 2015 and consolidation in 2016, growth and capital structure optimization in 2017
■ Focus on affordable housing in specific regions in Germany
■ After sale of trading activities (ACCENTRO) focused exclusively on letting business
Page 4A clear equity story for value investors
Supplier ofaffordable
housing
1.2 ADLER Real Estate AG – at a glance
■ Significant FFO increases for the next 3 years
Through operational efficiencies Through reduction of interest expenses for higher yielding debt Further portfolio growth (pipeline of ca. 5,000 units)
■ Continued improvements of key financial metrics
Reduction of LTV from 66.9% (2013) to 59,6% (9M 2017) Reduction of WACD from 4.70% (2013) to 3.45% (9M 2017) Rating improvements from BB- to BB/stable outlook
■ Internalisation of key operational functions
Property management (ADLER Wohnen Service) Facility management (ADLER Gebäude Service) Energy management (ADLER Energie Service)
Consistently delivering on targets and building a stronger track record Page 5
A simple, clearbusiness model
1.3 Execution and track record of growth
Acquisitions/Disposals
Capital markets
Page 6
Portfolio 1,906 units
Portfolio2,400 units
Portfolio8,500 units
ESTAVIS AG2,100 units
Portfolio4,300 units
Successful disposalof legacy
Commercial assets
Westgrund AGTakeover offer
c. 21,000 units
Successful disposalof Berlin assets
1,174 units
Ajax portfolioc. 2,700 units
Acquisition of 24.79% of ATX listedconwert Immobilien
Invest SE29,896 units
ADLER announces a package of
measures to sustainably boost earnings strength
Portfolio700 units
Portfolio160 units
Corporate Bond 14/19
EUR 50m
Capital increaseEUR 80m
Tap 14/19Corporate Bond
EUR 50m
Capital IncreaseEUR 21m
CorporateBond 15/20EUR 300m
Capital increaseEUR 190m
MandatoryConvertible Bond
(IFRS Equity)EUR 175m
Tap CorporateBond 15/20
EUR 50mChange in the
Group’sManagement Board
Convertible Bond16/21
EUR 137m
RedemptionSchuldscheindarlehen
EUR 62m
RedemptionSchuldscheindarlehen
EUR 30m
2014 2015 20172016
RedemptionMargin LoanEUR 200m
Portfolio6,750 units
Tap 14/19Corporate Bond
EUR 30m
Additional 5m sharesin conwert aquired
Stake in conwertsold to Vonovia SE
Considerable growth and value creation as a result of a successful strategy and its execution
From 7,000 to50,000 units
in 3 years
Tap CorporateBond 15/20EUR 150m
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N
Portfolio200 units
Buyback ACCENTRO convertibleEUR 12m
RedemptionBond 14/19EUR 130m
Portfolio2,500 units
Sale of ACCENTRO2,400 units
7.9
15.7
27.1
0
10
20
30
3M 6M 9M FY
2016 2017
43.9
86.4
130.5
0
50
100
150
200
3M 6M 9M FY
2016 2017
1.4 Strong performance track record
Significant growth and year on year value creation Page 7
Net rental incomeNumber of rental units
NAVFFO I
Market value investment properties
LTV
€ m
€ m € m
Growth and valuecreation
7,797
20,086
48,218 47,662 50,641
0,000
10,000
20,000
30,000
40,000
50,000
60,000
2013 2014 2015 2016 9M2017
+ 6.3%
+ 3.8%
418
1,171
2,2352,442
0,000
0,500
1,000
1,500
2,000
2,500
2013 2014 2015 2016 9M 2017
€ m
+ 45,3%
95
351
880
1,066 1,102
0,000
0,200
0,400
0,600
0,800
1,000
1,200
2013 2014 2015 2016 9M2017
€ m+ 3.0%
66.968.7 68.0
61.359.6
55
60
65
70
2013 2014 2015 2016 9M2017
%
- 1.7 PP
+ 8.1%
2,641
German residential market offers huge potential
2. Market environment
8
2.1 German economy – stable growth
Positive macro backdrop
Source: Bundesanstalt für ArbeitSource: Statistisches Bundesamt
0
500
1.000
1.500
2011 2012 2013 2014 2015
Immigration balance (000)
Source: Statistisches Bundesamt
Index of manpower demand
Page 9
Source: ifo institute, 2013 - 2016 December
* 2017/2018 Estimates, Gemeinschaftsprognose der führenden Wirtschaftsinstitute *Esimate based on August figures
Unemployment rate (%)
433
8111
531
83
Asia
America
Africa
Europe
Other
Ifo business climate index Origin of immigration (000), 2015
Positive economicoutlook supports the
industry
1,5
1,7
1,9
2,1
2014 2015 2016 2017* 2018*
2.1
1.9
1.7
1.5 100
150
200
250
300
2013 2014 2015 2016 2017*
* 2018 Estimate, Gemeinschaftsprognose der führenden Wirtschaftsinstitute
5
5,5
6
6,5
7
2014 2015 2016 Sep 17 2018*
100
105
110
115
120
2013 2014 2015 2016 Sep 17
7.0
6.5
6.0
5.5
5.0
GDP Germany, yoy change (%)
2.2 German economy – regional differences
ADLER exposed to strong and growing regions
GDP 2016, yoy growth (%)
Source: Arbeitskreis Erwerbstätigenrechnung des Bundes und der Länder
Employment growth*, Δ 2016 to 2011 (%)
GDP 2016, in € bn
Source: Statistische Ämter der Länder
% %
Page 10
Germany total
NRW
Lower Saxony
Berlin
Saxony
Brandenburg
Thuringia
Saxony-Anhalt
Mecklenb.-Pom.
Berlin
Saxony
Thuringia
Brandenburg
Germany total
NRW
Mecklenb.-Pom.
Lower Saxony
Saxony-Anhalt
* Number of employed persons
41
59
61
69
118
129
264
0 100 200 300 400 500 600 700
3.133
at current prices at current prices
2.6
2.9
3.1
3.2
3.3
3.3
3.5
4.3
4.6
0 2 4
Portfolios located in strongly growing
federal states
-1.4
-0.7
0.4
1.6
2.7
4.2
4.9
5.2
6.2
-5 0 5 10
Berlin
Lower Saxony
Germany total
NRW
Saxony
Brandenburg
Mecklenb.-Pom.
Thuringia
Saxony-Anhalt
670
EUR bn
Financial metrics improved
3. 9M 2017 Financial performance
11
Net rental income
43.9
86.4
130.5
0
50
100
150
200
3M 6M 9M FY
€ m
7.9
15.7
27.1
0
5
10
15
20
25
30
3M 6M 9M FY
FFO I
3.1 Results 9M 2017 – highlights
9M 2017 9M 2016 Change (%)
Net rental income 130.5 125.7 3.8
Earnings from property lettings 95.1 91.3 4.2
Earnings from the sale of properties 22.6 34.1 -33.7
EBIT 120.0 217.3 - 44.8
FFO I 27.1 18.6 45.3
FFO II 38.1 45.3 - 15.9
€ m
9.4
20.1
38.1
0
20
40
60
3M 6M 9M FY
FFO II
€ m
Page 12ADLER in line with 2017 guidance
00
+ 3.8%+ 45,3%
- 15.9%
Solid operational performance
Euro m
*at reporting date, ACCENTRO had additional sales of c. EUR 30 m signed, but rights and obligations had not yet been transferred
66.968.7 68.0
61.359.6
55
60
65
70
2013 2014 2015 2016 9M2017
%
4.70
4.153.99
3.693.45
3
3,5
4
4,5
5
2013 2014 2015 2016 9M2017
%
3.2 Results 9M 2017 – highlights (cont´d)
Sep 30,2017
Dec 31,2016
Change (%)
Investment properties (€ m) 2,640.7 2,442.0 8.1
EPRA NAV (€ m) 1,101.8 1,069.9 3.0
Equity ratio (%) 28.0 26.6 1.4 PP
LTV (excl. convertibles) (%) 59.6 61.3 -1.7 PP
WACD (%) 3.45 3.69 -0.24 PP
Equity ratio LTV WACD
Page 13ADLER in line with 2017 guidance
- 1.7 PP- 0.24 PP
00
ADLER with improved financial profile
18.922.0
25.3 26.6 28.0
05
1015202530
2013 2014 2015 2016 9M2017
%
+ 1.4 PP
Euro m
3.5
4.5
3.3 Profit and loss statement 9M
Insourcing impacts structure of expenses
Comments
Page 14
Expenses from property lettings reduced due to ongoing insourcing of services.
Financial result already shows efforts toreduce interest expenses. But also affectedby one-offs amounting to EUR 7.5 millionfrom prepayment penalties and utilisation ofreserves resultig from conwert participation.
Other operating expenses impacted by one-off expenses for advisory services connectedto sale of conwert stake, tap of corporte bondand Westgrund squeeze-out.
Personnel expenses up due to insourcing ofproperty and facility management activities.
Of which EUR 7.2 m current tax expense and EUR 19.2 m deferred taxes
2016 dividends of conwert participation.Change due to sale of conwert stake.
Operating results increased
3.4 Balance sheet as of September 30, 2017
Balance sheet strengthening through redemption of liabilities Page 15
Comments
Investment properties increased due to acquisition of portfolios comprising 3,398units and value adjustments.
Current financial liabilities declined strongly following redemption of liabilities used to finance purchase of conwert shares..
Equity increased after conversion of 2013/2017 convertible, equity ratio rose by 1.4 PP to 28.0 percent.
Cash position surpasses working capital needs. To be used for future acquisitions.
Non-current assets held for sale strongly reduced after sale of conwert shares to Vonovia.
Inventories up with acquisition of 860 units for privatisation by ACCENTRO. At the same time 669 units were sold in 9M.
Reflecting the company´s successful activities of financial consolidation
3.5 Sources of funding and debt schedule (September 30, 2017)
Diversified sources of funding (99% fixed)
€ m
0
100
200
300
400
500
600
2017 2018 2019 2020 2021 2022 2023 2024 2025
Secured debt Corporate bonds Convertibles
No major refinancing risk over the next three years
67.9%
26.0%
6.1%
Convertibles*
Corporate Bonds*
Secured debt(Schuldschein-Darlehen andbank loans)
* unsecured
7.078.0
5.6 5.24.5
0
2
4
6
8
10
2013 2014 2015 2016 9M2017
WAM
0
0,5
1
1,5
2
2015 2016 9M 2017
ICR
%
Covenant of 04/2020 corporate bondISIN XS1211417362
Page 16Improved credit credentials
4.70
4.153.99
3.693.45
3
3,5
4
4,5
5
2013 2014 2015 2016 9M 2017
%
WACD
3.45%1.694.5
Reducing thecompany´s interest expense
years
Volume
(€ m)
Due date Strike-
price (€)
No. of potential
ADLER shares from
conversion (m)
Nominal
interest rate
Premature
redemption
Rate, at which premature
redemption is possible
Bonds
2013/18 35 April 3, 2018 8.75 No call
2015/20 500 April 8, 2020 4.75* Anytime 104.75 until 8. 4. 2019 from capital
increases, max. 35% of total volume
100,0 from 8. 4. 2019
Convertibles
2013/18 11.25 Dec 10, 2018 3.41 3.3 6.0 No call At face value, if amount outstanding falls
below 30% of original amount
2016/2021 138 June 29, 2021 12.54 11.0 2.5 From Juli 19, 2019 At face value, if trading at more than
130 percent of strike price for at least 20
out of 30 trading days
2014/19
Accentro
15 Mar 27, 2019 2.50 - 6,25 If less than 30
percent outstanding
At nominal value plus accrued interest
3.6 Debt redemption modalities
Redemption of debt to improve financial metrics Page 17
Most high yielding bonds can be paid back prematurely
As at Sep 30, 2017
* 150 m Euro Tap in April, yield to call 2,5%
Operational metrics improved
4. 9M 2017 Operational performance
18
4.1 9M Operational performance – portfolio at a glance
Portfolio*
30.09.2017 TotalCore
PortfolioNon Core Portfolio
Rental units 50,641 47,310 3,331
Ø rent/sqm/month in €(actual)
5.08 5.11 4.72
Ø rent/sqm/month in €(re-letting)
5.47 5.50 5.04
Occupancy rate in% 89.9 91.1 75.9
Market value/sqm in € 829 849 583
Contracted annual netcold rent (NRI) in € m
174.0 163.6 10.4
Multiple 15.1 15.2 13.6
TOP 20 Locations
NRI per year € m Units
Wilhelmshaven 21.7 6,908
Duisburg 16.5 4,281
Berlin 7.5 1,698
Wolfsburg 5.5 1,300
Cottbus 5.2 1,868
Göttingen 4.4 1,139
Halle (Saale) 4.3 1,656
Helmstedt 4.1 1,219
Leipzig 3.6 1,167
Chemnitz 2.9 1,023
Dortmund 2.9 776
Ludwigshafen 2.7 526
Norden 2.6 747
Düsseldorf 2.5 466
Aurich 2.4 782
Schöningen 2.4 846
Borna 2.3 900
Schwerin 2.3 816
Erfurt 1.9 643
Fürstenwalde 19 573
Page 19
* Investment Properties, without 192 units acquired at the end of Q2
Upside potential in rents, occupancy rates and market value
Top 20 locationsaccount for c. 60%
of rental income
4,90
4,95
5,00
5,05
5,10
Q1 Q2 Q3 Q4 Q1 Q2 Q3
€/qm/Monat
88,0
89,0
90,0
91,0
Q1 Q2 Q3 Q4 Q1 Q2 Q3
%
4.2 9M 2017 – operational performance
ADLER Group 9M 2017
9M 2016
Change 2017 guidance
Net rental income 130.5 125.7 3.8 3.0%
Occupancy rate (%)* 89.9 89.3 0.6 PP 3 PP
Ø rent €/sqm/month (€)* 5.08 4.95 2.6% 1.6%
Net rental income
0
50
100
150
200
3M 6M 9M FY
2016 2017
€ m
Occupancy rate* Ø rent*
Core portfolio* 9M 2017
6M 2017
Change
Residential & Commercial
Units 44,612
Ø rent in €/sqm/month 5.11 5.07 0.8%
Occupancy rate in% 90.9 90.9 0.0 pp
Residential only
Units 43,810
Ø rent in €/sqm/month 5.06 5.02 0.8%
Occupancy rate in% 91.4 91.4 0.0 pp
Commercial only
Units 802
Ø rent in €/sqm/month 6.66 6.64 0.3%
Occupancy rate in% 76.5 76.6 -0.1 pp
Page 20ADLER in line with guidance
Core portfolioaccounts for 93.4%
of total portfolio
2016 2017 2016 2017
+ 3.8%
+ 2.6%+ 0.6 PP
* Total portfolio* All figures like-for-like
5.10
5.05
5.00
4.95
4.90
90.0
89.0
88.0
Success in vacancy reduction and rental increase and considerable future upside potential Page 21
4.3 Top 20 locations with vacancy reduction/rent increase
* Change as against 30.6.2017
Location Federal stateNRI
in € mUnits
Area
(sqm)
Ø rent
€/sqm/month *
Occupancy rate
(%)*
As at September 30, 2017 30.9.2017Change
in EUR30.9.2017
Change
in PP
1 Wilhelmshaven Lower Saxony 21.7 6,908 407,280 4.82 0.05 92.15 -0.26
2 Duisburg North Rhine-Westphalia 16.5 4,281 268,499 5.31 0.02 96.75 -0.89
3 Berlin Berlin 7.5 1,698 111,576 5.68 0.18 97.98 -0.68
4 Wolfsburg Lower Saxony 5.5 1,300 87,539 5.51 0.05 95.49 -0.30
5 Cottbus Brandenburg 5.2 1,868 110,045 4.59 0.05 85.06 0.15
6 Goettingen Lower Saxony 4.4 1,139 76,141 5.02 0.04 96.82 0.17
7 Halle (Saale) Saxony-Anhalt 4.3 1,656 93,131 4.52 0.00 85.85 -0.19
8 Helmstedt Lower Saxony 4.1 1,219 70,703 5.03 0.03 95.76 0.67
9 Leipzig Saxony 3.6 1,167 70,859 4.43 0.03 94.57 1.18
10 Chemnitz Saxony 2.9 1,023 62,932 4.83 0.09 78.73 -0.68
11 Dortmund North Rhine-Westphalia 2.9 776 51,740 4.83 0.08 95.40 -0.06
12 Ludwigshafen Rhineland-Palatinate 2.7 526 34,098 7.00 1.07 94.90 0.34
13 Norden Lower Saxony 2.6 747 46,779 4.87 0.07 95.01 -1.62
14 Duesseldorf North Rhine-Westphalia 2.5 466 28,029 7.68 0.14 95.62 -2.17
15 Aurich Lower Saxony 2.4 782 52,467 4.60 0.06 83.12 1.37
16 Schoeningen Lower Saxony 2.4 846 50,192 4.94 0.03 79.65 0.76
17 Borna Saxony 2.3 900 50,135 4.60 0.03 84.82 -2.57
18 Schwerin Mecklenburg-Pomerania 2.3 816 48,021 4.47 0.07 89.07 -0.54
19 Erfurt Thuringia 1.9 643 38,883 5.60 0.08 74.65 5.39
20 Fuerstenwalde Brandenburg 1.9 573 30,567 5.35 -0.01 94.25 -1.31
Top 20 locationsaccount for c. 60%
of rental income
4.4 Focus on occupancy rate/rent level - selected examples
As at September 30, 2017 Vacancy rate (%) Inplace-rent (€/sqm/month)
Berlin – Spandau
• Investment of c. EUR 4 m in renovation and modernization• On-site office (Letting & Tenant services)
Towers Erfurt
• Active marketing after development project was finished.• Rent higher than average in Erfurt.
Ludwigshafen
• Covered by in-house Property Management on-site• Modernization and maintenance at fluctuation• Ongoing rent adjustments
Saalfeld
• 10 year rental contract has been signed with district administration to accomodate refugees
Duisburg
• Change of Property Management
Wilhelmshaven
• Capex measures (also in infrastructure)• Change in tenant structure
Page 22Properties need specific measures for successful vacancy reduction and rent increase
10.8%
1.9%
2013 9M 17
4.95€ 5.56€
2013 9M17
100%
48.7%
2016 9M
0€
6.26€
2016 9M 17
4.4%3.1%
2013 9M 17
4.71€5.94€
2013 9M 17
13.1% 12.9%
2013 9M 17
4.15€ 4.63€
2013 9M 17
7.3%
3.2%
2015 9M 17
4.71€ 5.31€
2015 9M 17
8.8% 8.4%
2015 9M 17
4.65€ 4.78€
2015 9M 17
Positive impact on FFO and WACD Page 23
Hamburg
Heiligenhaus
Gelsenkirchen
Iserlohn
Hagen
Soest
Hannover
Bielefeld
Höxter
Holzminden
Duderstadt
Goslar
Delmenhorst
Bremerhaven
Bremen
Kiel
Bad Oldesloe
Düsseldorf
Aachen
Willich
DuisburgEssen
State capital
Location
Overview
Units 2,505
of which residential 2,453
of which commercial 52
Annual NRI (EUR m) 9
Ø rent/sqm/month (EUR) 5.07
Occupancy rate (%) 94.0
Positive financial effects
Units (total) c. + 5 %
Occupancy rate (%) c. + 0,1 PP
NRI* (EUR m) c. + 5 %
FFO* (EUR m) c. + 3 %
WACD (%) c. - 0,04 PP
LTV (%) c. + 1 PP
7.8
8.0
9.0
10.4
16.5
0 5 10 15 20
Heiligenhaus
Soest
Bad Oldesloe
Bremen
Essen
Percent of acquired portfolio
Locations in growth regions
4.5 Acquisition of portfolio comprising 2,500 units
* Calculated on a yearly basis
4.6 Project „Wasserstadt Mitte“ in central Berlin
Key data
Located in government district near mainstation
44,000 sqm for up to 700 apartments
5,200 sqm for office and retail
Secured contract with general contractor
Completion until end of 2019, lease-up untilend of 2020 expected
Financing secured and in line with target toreduce LTV below 55 percent
Net rental income of EUR 11 m per annum expected
Strengthening of position in attractive Berlin market
Forward deal to secure growth Page 24
5. ACCENTRO Real Estate AGTrading and privatisation platform as a key contributor to the Group
25
5.1 ACCENTRO – 9M 2017 at a glance
Considerable reserves in inventories
Privatisation(unit by unit)
FY 2015 FY 2016 9M 2017
Units sold No. 476 976 669
Sales proceeds EUR m 31.4 116.9 82.0
Disposal of bookvalues
EUR m 25.9 80.5 60.7
Profit from disposals EUR m 5.5 36.4 21.3
Gross margin % 21.3 45.1 35.1
Trading (block trades) FY 2015 FY 2016 9M 2017
Units sold No. 1,310 717 16
Sales proceeds EUR m 101.8 19.7 3.5
Disposal of bookvalues
EUR m 86.0 17.3 3.4
Profit from disposals* EUR m 26.0 2.4 0.1
Gross margin % 30.2 13.9 2.0
Location % of total book value Units sqm (000) BW/sqm (€)
Berlin* 71.6% 1,281 85.4 2,257
Short- to medium term market expectation: > 28% gross margin
Asset base with significant upside potential
Berlin exposure per district
Page 26
Strong exposureto attractive
Berlin market
District units
Altglienicke 75
Charlottenburg 36
Friedrichshain 178
Hellersdorf 19
Lichtenberg 164
Hohenschönhausen 686
Johannisthal 24
Köpenick 40
Lichtenrade 23
Mitte 102
Moabit 42
Neukölln 150
Oberschöneweide 13
Reinickendorf 77
Schöneberg 87
Schöneweide 27
Spandau 83
Steglitz 35
Tegel 15
Tempelhof 3
Wedding 54
Wilmersdorf 23
Total 1.956
*Does not include acquired development project of 675 units in Hohenschönhausen
5.2 Sale of ACCENTRO to improve financial metrics
Key facts
Subject 82 % share in ACCENTRO (fully diluted),consisting of• 80 % of outstanding shares• 92 % of outstanding convertibles
Buyer Private partnership
Price EUR 180 m
Payment terms
Down payment plus tranches in next13 months
Closing December 1, 2017
Option Additional 6% of shares at same price
Business model simplified and focussed Page 27
Other effects
Rating Up to BB/stable outlook
Business model
Focused exclusively on letting
Outperforming benchmarks
6. ADLER on the Capital Markets
28
6.1 ADLER share performance – benchmarked
In €
NAV/share, basic/diluted (September 30, 2017) 16.10/15.19
Consensus 15.84
Actual trading (November 10 2017) 13.10
Upside Potential 10-15%
Company Recommendation* Target (EUR) Date
ODDO BHF Buy 15.91 10/2017
Equinet Accumulate 15.20 10/2017
Berenberg Buy 16.20 10/2017
HSBC Hold 15.50 10/2017
DZ Bank Buy 16.40 08/2017
Consensus 15.84
ADLER share versus peers ADLER share versus indices
Page 29Outperforming peers and indices
ADLER sharetraded at
discount to NAV
*Only recommendations after bonus shares and conversion of convertible
80
100
120
140
160
180
200
220
240
Jan
-15
Ap
r-1
5
Jul-
15
Oct
-15
Jan
-16
Ap
r-1
6
Jul-
16
Oct
-16
Jan
-17
Ap
r-1
7
Jul-
17
Oct
-17
ADLER
ADO
Dt. Wohnen
Vonovia
Grand City
LEG
TAG 80
100
120
140
160
180
200
220
240
Jan
-15
Ap
r-1
5
Jul-
15
Oct
-15
Jan
-16
Ap
r-1
6
Jul-
16
Oct
-16
Jan
-17
Ap
r-1
7
Jul-
17
Oct
-17
ADLER
SDAX
DAX
DIMAX
6.2 Market cap and shareholder structure
Successful share buy back programme
Average trading volume per day 2017: c. 60,000 shares
Shareholders (October, 2017) Holdings (%)
Mezzanine IX Investors S.A. Luxembourg 18.7
Wecken Cie, Basel 17.8
Uhlandstrasse Immobilien GmbH Berlin 5.2
Asset Value Investors Ltd London 4.2
Free float 52.4
Owned by ADLER 1.7
Total 100.0
Total voting rights 57,545,464
Of which acquired via buy back programme
782,982
Listed/Stock exchange Prime Standard/Frankfurt am Main
Indices:SDAX, CDAX, FTSE EPRA/NAREIT Global Real Estate Index, GPR General Index, DIMAX
Basic information (September 30, 2017)
* 2014 – 2016, valuation at end of year
0
200
400
600
800
2014 2015 2016 Sep 17
€ Mio
Market cap*
Page 30
Market captripled in 3 years
Average trading volume per day
1,000
0
20.000
40.000
60.000
80.000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Operational activities re-aligned
7. Governance and operational organisation
31
7.1 Group governance organisational chart
Lean organisational structure
Management Board
A. Krienen (CEO), S. Frank (COO)
Executive Committee
Dr. T. de Vargas Machuca (CFO and Head), A. Krienen,
S. Frank, C. Wolff
ADLER REAL ESTATE AG Supervisory Board
Dr. D. Hoffmann,T. Katzuba von Urbisch,
T. Schmid
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Operational Management /
Transaction
S. Frank
Corporate Communication
Dr. R.-D. Grass
Legal
F. Sitta
Bank Financing
P. Hoffmann
Accounting & Controlling
C. Wolff
Corporate Finance & Strategy
M. Rienecker
Corporate Governance Compliance & Human
Resources
A. Wolf
Lean organisational
structure
7.2 Management
Tomas DE VARGAS MACHUCACFO and Head of Executive Committee
■ Responsible for the Company’s Capital Markets operations since 2013
■ Before joining ADLER, Tomas de Vargas Machucaspent 15 years in the real estate business of which 10 years in banking
■ He was an Executive Director at UBS Investment Bank’s Real Estate Finance
■ He holds a B.A. and a MSc in Economics from Bocconi University in Milan, Italy
Arndt KRIENENCEO, Management Board, Executive Committee
■ CEO since 9 June 2016■ Member of the Management Board of ADLER Real
Estate AG as from January 2016■ CEO of Westgrund AG since 2000 which ADLER has
taken over in 2015■ Experience of more than 15 years in real estate
business■ Born 1966, attorney at law
Sven-Christian FRANKCOO, Management Board, Executive Committee
■ Since 9 June 2016 ■ Responsible for operational management (asset,
property and facility mgmt) and transaction■ Formerly held various leading positions in real estate
business, notably at Gestrim Deutschland AG and Deutsche Real Estate AG
■ Born 1965, attorney at law, mediator (DAA), real estate asset manager (IREBS)
Carsten WOLFFHead of Accounting and Finance, Executive Committee
■ Joined ADLER Real Estate AG in 2003 as Head of Accounting and Finance department
■ Carsten Wolff has a degree in business management and has worked in the areas of accounting, controlling, risk management as well as internal auditing for more than 25 years
■ Born 1960, worked for many years at Deutsche Steinzeug Cremer & Breuer, most recently as Head of auditing
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Experiencedinternational team
7.3 Operational organisation streamlined
Integrated real estate group
■ Regional structure established
■ Complete internalisation of Property and Facility Management
■ Shared Service Centre established for rent and operating cost administration
■ Single IT system throughout the company
■ Capex and modernisation program concerning 1,500 vacant residential units nearly finished
■ 2nd tranche of modernization program resolved
■ Energy Service company founded
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ADLER to becomefully integrated real
estate company
Taking ADLER to the next level
8. Guidance and Outlook 2017
35
8.1 Guidance and Outlook 2017
Unveiling organic growth potential
2015 2016 9M 2017 Target2017
Change vs2016 (%)
Measures
Net rental income (€ m) 131.6 167.5 130.5 172.5 + 3.0 Compensate sale of non-core by improvedoperational performance and portfolio growth
Occupancy rate (%) 88.8 90.0 91.1* 93.0 + 3.3 Internalisation of property/facility management,tenant app
Ø rent €/sqm/month (€) 4.93 5.00 5.11* 5.08 + 1.6 Internalisation of property/facility management
FFO I (€ m) 16.1 27.3 27.1 40 + 46.5 Debt redemption leads to decrease in financialliabilities, cost cutting, improved operational performance
FFO II (€ m) 44.3 55.3 38.1 50 - 9.6 Net of potential of block trades
EPRA NAV (€ m) 879.5 1,069.9 1,101.8 1,250 + 16.8 Further fair value adjustments
LTV (excl. convertibles) (%) 68.0 61.3 59.6 55 - 6.3 PP Debt redemption, fair value adjustments
WACD (%) 3.99 3.69 3.45 3.45 - 0.3 PP Redemption of higher yielding debt, refinancing
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ADLER set to improveoperational and
financial metrics further
* Core portfolio
Disclaimer
This document and its contents are confidential and not meant for
forwarding. transmission. publication. duplication. or disclosure (in
whole or part) to other persons. Outside of Germany the distribution of
this document may be restricted by applicable laws.
This document does not constitute an offer to sell or an invitation to
make an offer to buy or subscribe for securities.
This document and the information contained therein may not be
distributed in the United States of America. Canada. Australia. Japan or
other jurisdictions. in which such offer. respectively. such invitation to
make an offer to buy or subscribe for securities is not allowed. This
document does not constitute an offer to sell securities in the United
States. Securities. including the securities of ADLER Real Estate
Aktiengesellschaft may not be sold or offered for sale within the United
States or to or for the account of / in favour of US citizens (as defined in
Regulation S under the U.S. Securities Act of 1933 in the current version
(the "Securities Act") unless they are registered under the regulations of
the Securities Act or unless they are subject to an exemption from
registration.
This document includes 'forward-looking statements'. Forward-looking
statements are all statements. which do not describe facts of the past.
but containing the words "believe". "estimate". "expect". "anticipate".
"assume". "plan". "intend". "could". and words of similar meaning.
These forward-looking statements are subject to inherent risks and
uncertainties since they relate to future events and are based on current
assumptions and estimates of ADLER Real Estate Aktiengesellschaft.
which might not occur at all or occur not as assumed. They therefore do
not constitute a guarantee for the occurrence of future results or
performances of ADLER Real Estate Aktiengesellschaft. The actual
financial position and the actual results of ADLER Real Estate
Aktiengesellschaft. as well as the overall economic development and the
regulatory environment may differ materially from the expectations.
which are assumed explicitly or implicitly in the forward-looking
statements and do not comply to them. Therefore. investors are warned
to base their investment decisions with respect to ADLER Real Estate
Aktiengesellschaft on the forward-looking statements mentioned in this
document.
Page 37
Contact
ADLER Real Estate AG
Joachimsthaler Straße 34
10719 Berlin
www.adler-ag.com
Tel: +49 (0)30 39 80 18 10
E-mail [email protected]
Investor Relations
Dr. Rolf-Dieter Grass
Corporate Communication
Tel: +49 (0) 30 200 09 14 29
Mobile: +49 172 386 25 58
Email: [email protected]
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