ADO Properties S.A.: ADO Properties with strong first half of 2015
ADO Properties S.A. / Key word(s): Half Year Results
- Distinct growth in income from rental activities (+80%), EBITDA (+78%)
- Portfolio volume increases to EUR 1.2 billion thanks to further acquisitions
- Integrated management platform and significant investments to modernize and re-position residential units as key success drivers
- Current Net Asset Value per share at EUR 20.73 (pro forma EUR 20.35)
- Company anticipates strong like-for-like rental growth of approximately
- FFO1 guidance for total year raised to approximately EUR 30 million
Berlin, 27 August 2015 - ADO Properties S.A., the only Prime Standard listed, pure-play Berlin residential real estate company, looks back on a successful first half of the year in 2015. All of the company's key figures verify the substantial growth in 2015.
It is the first time that ADO Properties has issued a quarterly report after its start of trading on the regulated market (Prime Standard) at the Frankfurt Stock Exchange on 23 July. Part of the IPO was a capital increase which led to gross proceeds of approximately EUR 200 million for further acquisitions and investments in the quality of the portfolio. The net proceeds reached approximately EUR 194 million.
Distinct growth in operational key figures
The company's EBITDA from rental activities increased by 72% from EUR 12.3 million for the first six months 2014 to EUR 21.1 million for the first six months 2015. The Q2 result represents an annualized EBITDA of EUR 52 million.
In addition, the company started a privatization program at the end of 2014. In the first half of 2015, ADO sold 20 apartments, in line with the goal of selling 50 apartments by the end of the year. The average sales price of EUR 2,791 per sqm compares very positively to the average portfolio value of EUR 1,250 per sqm. The company expects to sell around 100 to 150 units per annum from 2016 onwards.
The FFO1 (without profit from disposals) in Q2 2015 rose by approximately 119% in comparison to the corresponding Q2-period of the previous year, resulting in EUR 0.53 per share. Taking into account the 10 million new shares issued in the course of the IPO in July, the pro forma FFO1 per share amounts to EUR 0.38. The FFO1 of the second quarter represents an annualized FFO1 from rental activities of EUR 34 million and reflects a FFO yield of 6.5% on our NAV.
The average in place rent of the residential portfolio amounted to EUR 5.71 per sqm and month. In comparison, the average rent for new lettings was at EUR 8.21 per sqm and month. Over the past three years, there was an average annual rental growth of 6.2% on a like-for-like basis. The company managed to reduce the vacancy rate for its residential portfolio from 4.8 % as of 31 December 2014 to 4.3 % as of 30 June 2015.
Integrated management platform and individual modernization strategies as key drivers for value enhancement
Portfolio growth and solid financial structure
The financial structure of the company remains conservative and solid with an LTV of 57.6% and an average interest rate of 2.6%. More than 95% of the loans have fixed interest rates or are hedged. The loan maturity period is approximately six years. ADO Properties expects net proceeds from the IPO of approximately EUR 194 million, which will improve the conservative financial structure going forward (pro forma LTV 41.6%).
Continuing positive outlook for year's end
Berlin residential market offers potential for further improvement
* Proforma numbers include the effect of the expected net proceeds of the IPO of MEUR 194 and 35 million shares post IPO
About ADO Properties
ADO Properties is a pure-play, Berlin-based residential real estate company with approximately 14,500 units, thereof 13,700 are residential units. The Company has a fully integrated, scalable in-house platform with its own property management. Along with the responsibility for the condition of its apartments and buildings, ADO Properties also assumes responsibility towards people, employees, and neighborhoods. ADO Properties' portfolio is focused on central locations in Berlin and attractive suburban districts.
Tel.: +49 30 2844987-48
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|Company:||ADO Properties S.A.|
|20 rue Eugène Ruppert|
|Grand Duchy of Luxembourg|
|Phone:||+49 (0)30-403 907 900|
|Fax:||+49 (0)30-403 907 901|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange|
|End of News||DGAP News-Service|