05/19/2016

ADO Properties S.A.: ADO Properties S.A. reports strong start into the financial year 2016

DGAP-News: ADO Properties S.A. / Key word(s): Quarter Results

2016-05-19 / 07:00
The issuer is solely responsible for the content of this announcement.


  • Strong growth of income from rental activities (+88%) and FFO1 (+112%)
  • Significant like-for-like rental growth of 5.9%
  • Net Asset Value per share at EUR 24.26 as of 31 March 2016 (31 December 2015 EUR 24.10)
  • Successful capital increase in April strengthening the equity (proforma NAV per share EUR 24.61) and building solid base for further growth
  • Positive outlook for the 2016 financial year confirmed


Berlin, 19 May 2016 - ADO Properties S.A., the only Prime Standard listed residential real estate company solely focused on the city of Berlin, reports a strong start into the financial year 2016 and continued its growth during the first three months 2016.

Further significant improvements of operational key figures
The income from rental activities of ADO Properties increased in the first three months 2016 by 88% to EUR 20.4 million (Q1 2015: EUR 10.8 million). This growth was mainly driven by a strong 5.9% like-for-like rental growth and successful acquisitions. The EBITDA from rental activities increased by 80% from EUR 8.0 million in Q1 2015 to EUR 14.4 million. The annualized Q1 figures represent a total EBITDA of more than EUR 60 million.

The FFO1 (without profit from disposals) has increased by 112% up to EUR 9.4 million (Q1 2015: EUR 4.4 million). This represents an FFO1 of EUR 0.27 per share (Q1 2015: EUR 0.18 per share).

The average in-place rent of the residential portfolio increased to EUR 5.86 per sqm per month at the end of the first quarter 2016 (31 December 2015: EUR 5.82). On a like-for-like basis that reflected an average annual rental growth of 5.9% as of 31 March 2016. The vacancy rate for the residential portfolio was reduced by the company from 4.0% as of 31 December 2015 to 3.8% as of 31 March 2016.

Acquisition of 1,060 additional units in Berlin
Since the beginning of 2016 the company's portfolio size increased once more by acquisition of 1,060 units in Berlin, partly taken over in Q1 and partly in Q2, generating further attractive upside. ADO Properties' portfolio was valued at EUR 1.6 billion as of 31 March 2016, comprising approximately 16,400 units at the end of the reporting period, of which are around 15,500 residential units (31.12.2015: 14,900 units). The Net Asset Value of the portfolio amounted to EUR 849.2 million or EUR 24.26 per share as of 31 March 2016. The financial structure of the company remains conservative with an LTV of 45.6% by 31 March 2016 and an average interest rate of 2.3%. Almost all loans have fixed interest rates or are hedged. The loan maturity is approximately 5.3 years. After the end of the reporting period, the company successfully placed 3.5 million new shares in April, increasing the equity by a net amount of approximately EUR 98 million. As a result of this capital increase the proforma EPRA NAV per share rose up to EUR 24.61, while the proforma LTV decreased to 39.3%.

Positive outlook for the 2016 financial year confirmed
"2016 is a very special year for our company as we are celebrating our ten years anniversary. With the strength of the successes achieved in 2015 and in the first months of 2016, we are looking ahead to this special year with a very positive outlook", explained Rabin Savion, CEO of ADO Properties. "We will remain faithful to our long term acquisition strategy. We will not rush into deals just for sake of growing. Patience, dedication and experience allowed us to find the right deals in the past and it will also allow us to find the accretive deals in the future. In the first quarter we took over accretive deals worth EUR 60 million and signed an additional EUR 56 million to be taken over in the next quarter. Those deals will strengthen our portfolio. After the successful capital increase in April we currently have sufficient liquidity for further growth of our portfolio. In the first three months of 2016 the operational performance is well on track with like-for-like rental growth of 5.9% confirming our target of 5.0% like-for-like rental growth for the full year 2016 and we expect a FFO1 run-rate at the end of 2016 of at least EUR 50 million."


Key Figures
31.03.16 31.03.15 Difference absolute Difference percentage
Income from rental activities, in thousands EUR 20,363 10,830 9,533 88%
EBITDA from rental activities, in thousands EUR 14,406 8,019 6,387 80%
EBITDA, in thousands EUR 15,097 8,531 6,566 77%
FFO 1 from rental activities
in thousands EUR
9,392 4,420 4,972 112%
FFO 1 per share, EUR 0.27 0.18 0.09 50%
FFO 2 (incl. disposal results),
in thousands EUR
10,083 4,932 5,151 104%
         
Key Figures 31.03.16 31.12.15 Difference absolute Difference percentage
EPRA NAV, in thousands EUR 849,203 843,621 5,582 0.7%
EPRA NAV per share, EUR 24.26 24.10 0.16 0.7%
Proforma EPRA NAV per share, EUR 24.61      
LTV, in percent 45.6% 43.6% 2.0%  
Proforma LTV, in percent 39.3%      
         
Portfolio value, MEUR 1,559      
Residential Units 15,493      
In-place-rent residential EUR/sqm/month 5.86      
Vacancy rate residential percent 3.8%      
Rent for new letting, EUR/sqm/month 7.65      
Maintenance and CAPEX per sqm 28.8      
 

About ADO Properties

ADO Properties is a pure-play, Berlin-based residential real estate company with 16,400 units including the latest acquisitions in 2016. 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.

 



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The issuer is solely responsible for the content of this announcement.

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