ADLER Real Estate AG: FY 2018 results presentation March 2019 1
Agenda Introduction and executive summary 1 2 FY 2018 Operational performance FY 2018 Financial performance 3 4 ADLER Real Estate in the Capital Markets Guidance 5 Appendix 6 2
1. Introduction and executive summary 3
FY 2018 highlights ■ Like-for-like rental growth of 3.4%, average in-place rent increased to €5.49 per sqm/month as of Dec 2018 (2017: €5.21 per sqm/month), outperforming the 2018 guidance Rental ■ Vacancy rate further reduced by 1.9ppts from 7.9% in 2017 to 6.0% in 2018 as guided operation ■ FFO I almost doubled again from €40.5m in 2017 to €74.2m in 2018, in line with the 2018 guidance ■ Fully diluted FFO I per share in 2018 at €0.94 (2017: €0.51) ■ Successful placement of €800 million bonds in April 2018 to refinance bridge loan facility and buyback of €200m 2015/2020 4.75% bonds Financing ■ WACD decreased by 0.49ppts from 2.72% at end of 2017 to 2.23% in 2018, outperforming the 2018 guidance and LTV ■ Temporary increase in LTV due to the acquisition of BCP in April 2018. As of Dec 2018, LTV stood at 61.4% (2017: 59.4%) with pro-forma as of 28 March 2019 of 58.3% . Long term target of 50-55% and guidance for FY 2019 of c.55% ■ 2018 fair value of investment properties (incl. inventories) reached €5,077.1m (2017: €3,021.5m) following acquisition Valuation and of Brack Capital Properties N.V. (BCP) and improved operational performance EPRA NAV ■ Fully diluted EPRA NAV (excluding goodwill) per share of €20.77 , up 35.1% on FY 2017 (€15.37) ■ Strong growth through acquisition of BCP in April 2018 Acquisitions / ■ Non-core residential portfolio sold in December 2018 – c.3,700 units with GAV of €179.2m sold at c.3% premium Disposals and ■ Sale of €180.6m (c.37%) of the retail portfolio on 25 March 2019 at c.7.6% premium to the book equity value. other Remaining of the retail portfolio is expected to be sold by the end of 2019. 4
ADLER Real Estate at a glance Company description Total portfolio sector split 1 ■ ADLER Real Estate AG is one of Germany’s leading residential property companies. ADLER owns c. 58k Residential €181m sold residential units primarily located in - or on the outskirts of - large and growing conurbations in Development 25 Mar 19, Retail Parks 7,1% remaining Northern, Eastern and Western Germany. 9,8% exposure ■ Berlin Focus on affordable housing in specific regions in Germany, with a portfolio with considerable upside 6.5% of GAV Riverside³ potential in terms of rent uplifts, vacancy reduction and revaluation gains. Benefitting from favourable 6,6% market dynamics in German B-cities ensuring recurring and predictable cash flows. ■ The main business objective is the letting of residential property. Recently, ADLER has also selectively Completed engaged in residential developments (limiting exposure in developments to an amount which complies by the end Total GAV with IG credit rating) in order to complement and diversify the existing portfolio. of 2019 €5.1bn ■ Focus on value creation through organic growth and M&A strategies. In recent years, the company has Residential grown rapidly by making acquisitions, the latest one being Brack Capital Properties N.V. in April 2018 portfolio ■ SDAX-listed since 2015 (also included in FTSE EPRA/NAREIT Global Real Estate Index, GPR General Index, 76,5% DIMAX, CDAX) Total residential portfolio geographical split 2 Residential portfolio KPIs Number of units 58,113 Mecklenburg-Pomerania Schleswig-Holstein 3.1% 1,508 2.4% 1,899 Rentable area (sqm) 3,547,275 Bremen Brandenburg 1,515 3,625 2.4% 5.9% Fair value (€/sqm) 1,095 Lower Saxony 30.3% 18,767 2.7% Berlin Average rent (€/sqm/month) 5.49 1,699 6.5% North Rhine-Westphalia 24.7% Rental yield (%) 5.6% 15,325 Saxony-Anhalt 17.1% 3.2% 4,053 Vacancy (%) 6.0% Saxony LfL rental growth (%) 3.4% 10,609 Other units Thuringia 1,044 1.7 % 1,966 Note: 1 In percentage of gross asset value (“GAV”; investment properties and inventories) 5 2 In percentage of total number of units of residential portfolio 3 Riverside / Wasserstadt- Mitte, Berlin development project is currently valued at €332.7m and is due to be completed by the end of 2019. Further infor mation on page 12
2. Operational performance Finalised internalisation driving operational improvements 6
Operational performance significantly improved following internalization of property and facility management… Total number of residential units* Investment properties Residential portfolio FV per sqm Residential Retail €m €/sqm 70.000 6.000 1.200 1.095 5.077 58.113 60.000 928 5.000 1.000 48.218 47.662 817 46.179 50.000 732 735 4.000 800 3.022 40.000 3.000 600 2.442 2.235 30.000 24.086 4.579 2.000 400 20.000 1.171 1.000 200 10.000 0 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Residential portfolio vacancy rate Residential average rent (€/sqm/month) Residential portfolio LfL rental growth 3,8% €/sqm/month 14,0% 5,60 4,0% 12,8% 5,49 3,4% 5,50 11,2% 3,5% 12,0% 5,40 3,0% 10,0% 8,6% 5,30 5,21 7,9% 2,5% 5,20 8,0% 5,04 6,0% 5,10 5,02 2,0% 1,5% 6,0% 4,93 5,00 1,5% 1,2% 4,90 4,0% 1,0% 4,80 0,3% 2,0% 0,5% 4,70 0,0% 4,60 0,0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 7 Note: * Residential units only; excludes commercial units in the multi-family houses
…continuously focused on enhancing operational excellence Berlin – Beusselstr./Sickingenstr. Osterholz-Scharmbeck Towers Erfurt 10,7% 10,1% 10,0% 8,06€ 6,65€ 5,40€ 6,39€ 5,25€ 4,1% 2,0% 1,0% 0,00€ 2017 2019 2017 2019 2016 2018 2016 2018 2017 2018 2017 2018 • Active marketing after development project • • Investment in renovation and modernisation Special budget for refurbishment of vacant was finished areas Jena – Am Herrenberge Duisburg Wilhelmshaven 10,48€ 5.50€ 8,8% 9,54€ 7,3% 4.71€ 5.06€ 4.65€ 7.3% 4,5% 3,9% 2.6% 2015 2018 2015 2018 2015 2018 2015 2018 2015 2018 2015 2018 • • Investment in kitchens Change of Property Management • Capex measures (also in infrastructure) • • Ongoing rent adjustments Ongoing rent adjustments • Change in tenant structure In place- rent (€/sqm/month) Vacancy rate (%) ▪ Some of the properties require specific measures for successful vacancy reduction and rent increase 8
Recommend
More recommend
