Adler Group S.A. reports strong operational performance and secured financial support via the restructuring plan in Q1 2023

• Net rental income in first quarter 2023 at €53m, FFO 1 at €16m
• Like-for-like (“LFL”) rental growth of +2.0% YoY, with a vacancy rate of 1.5% remaining at a very low level
• FY 2023 guidance confirmed with net rental income expected in range of €207-219m
• Approval of the restructuring plan safeguards the Group’s liquidity position and ensures its further financial stability

Luxembourg, 25 May 2023: Adler Group S.A. (“Adler Group”) reports a strong operational performance in the first three months of the financial year 2023, evidenced by low vacancy combined with increasing average monthly in-place rent. EBITDA from rental activities and funds from operations (FFO 1) declined mainly on the back of the decreased size of the portfolio. “Our core portfolio continues to be robust and provides a stable basis on which we can implement our restructuring plan while safeguarding the interests of all stakeholders", commented Thierry Beaudemoulin, CEO of Adler Group.

Net rental income was at €53m compared to €71m in the first quarter of 2022, Funds from operations from rental activities (FFO 1) totaled €16m compared to €30m in the same period of 2022. This corresponds to a FFO 1 per share of €0.13 (Q1 2022: €0.25). EBITDA from rental activities was down to €33m from €49m in Q1 2022. The decline reflects the significantly reduced rental portfolio following the portfolio disposals in 2022.

On a like-for-like basis, the first quarter of 2023 demonstrates strong rental fundamentals. The average rent of the rental portfolio increased slightly to €7.58/sqm/month in the reporting period, representing a like-for-like rental growth of 2.0% on a 12-months-base. At 1.5% as of 31 March 2023, the vacancy rate of the core portfolio remained at very low levels compared to 1.3% as of 31 December 2022.

During the first quarter, portfolio valuations remained largely unchanged in the absence of portfolio appraisals. The fair value of the entire portfolio including developments amounted to €7.3bn as of 31 March 2023 (year-end 2022: €7.4bn) while the fair value of the yielding portfolio remained unchanged at €5.2bn compared to the end of the previous year. The EPRA NTA as of 31 March 2023 amounted to €2.37bn or €20.21 per share, compared to €2.44bn / €20.77 per share as of 31 December 2022. The EPRA Loan-to-Value (LTV) ratio of Adler Group stood at 75.4% (74.5% as of end 2022).

Outlook 2023 reiterated: net rental income in the range of €207-219m

After the decision of the London High Court in April 2023, Adler Group is able to implement the restructuring plan based on the agreement with its major bondholders. Following continued progress in the disposal of yielding assets, Adler Group expects to generate net rental income for the full year 2023 in the range of €207-219m. The company refrained from providing a FFO 1 guidance for the year 2023, as the Group's current focus is on steering its liquidity position and deleveraging through asset and portfolio disposals in a highly uncertain market environment.

The liquidity position of Adler Group is solid with €235m in Cash on Balance as of 31 March 2023.

Earnings call

An Analyst & Investor webcast and conference call will be held today, 25 May 2023, at 10.30 am CET.

PLEASE USE THIS LINK FOR THE WEBCAST (LISTEN ONLY):

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Contact

Investor Relations:
T +352 278 456 710
F +352 203 015 00
E investorrelations@adler-group.com