ADO Properties S.A. pursues its solid growth path throughout the first half year 2017

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

17.08.2017 / 07:00
The issuer is solely responsible for the content of this announcement.

ADO Properties S.A. pursues its solid growth path throughout the first half year 2017

  • Income from rental activities +23% due to new acquisitions and
    steady like-for-like rental growth
  • EBITDA from rental activities +23% and FFO1 +35%
  • Significant annual like-for-like rental growth of 5.4%
  • Net Asset Value per share increased by 10% to EUR 39.58 as of 30 June 2017
  • Management board confirms once more the positive outlook and expects the FFO1 run-rate to be at least EUR 62 million after investing the proceeds of the recent bond placement

Berlin, 17 August 2017 - ADO Properties S.A., the only Prime Standard listed residential real estate company solely focused on the city of Berlin, pursued its solid growth path throughout the first six months 2017. This shows the half year financial report published today.

Key figures reflecting the company's operative strength and ability to create value
The income from rental activities of ADO Properties increased by 23% to EUR 51.4 million (H1 2016: EUR 41.7 million) due to new acquisitions as well as due to the strong 5.4% like-for-like rental growth. The EBITDA from rental activities rose by 23% to EUR 36.5 million (H1 2016: EUR 29.7 million).

The FFO1 (without profit from disposals) increased by 35% up to EUR 26.7 million (H1 2016: EUR 19.9 million) equivalent to an FFO1 of EUR 0.61 per share (H1 2016: EUR 0.55 per share). The main drivers of the growing FFO were the strong operational performance and the relative improvement of interest expenses.

The average in-place rent of the residential portfolio increased to EUR 6.28 per sqm per month at the end of the first six months 2017 (31 December 2016: EUR 6.11). The vacancy rate for the residential portfolio persisted at a low level of 2.7% as of 30 June 2017 (31 December 2016: 2.5%).

Further portfolio expansion
ADO Properties' portfolio is comprised of 19,124 units at the end of the reporting period, of which are 18,061 residential units. The portfolio is valued by CBRE at EUR 2,596 million as of 30 June 2017, a value gain of EUR 160 million. The Net Asset Value of the portfolio amounted to EUR 1,745 million or EUR 39.58 per share as of 30 June 2017.

Conservative financial strategy provides good access to the capital market
ADO Properties' financial structure remains conservative with a solid investment grade rating of Baa2, providing the company a positive acceptance at the capital market and a good access to financing opportunities. The LTV was at 33.2% by the end of the reporting period while the average interest rate of the loan portfolio decreased to 1.9% (31 December 2016: 2.1%). Nearly all loans have a fixed interest rate or are hedged. The average maturity of the loans is approximately 5.1 years. ADO Properties will continue with its conservative strategy.

Positive Outlook for 2017 confirmed - adjusted FFO1 run-rate prognosis
In consideration of the company's successful development during the first half of the year the management board confirmed once more its positive outlook and raised the prognosis for the FFO1 run-rate. "We are positive that ADO Properties will continue to increase the value of its assets, its NAV and its NAV per share by generating significant like-for-like rental growth in the future. We anticipate our like-for-like rental growth for 2017 to be approximately 5% and our FFO1 to be at least EUR 62 million after investing the proceeds of our recent bond placement", says Rabin Savion, CEO of ADO Properties. "Our excellent access to the capital market and the solid Baa2 rating provide our company further growth perspectives in the Berlin residential market which continues to be one of the most vibrant and promising ones in Europe."


Key Figures
Difference absolute Difference percentage
Income from rental activities, in MEUR 51.4 41.7 9.7 23.1%
EBITDA from rental activities, in MEUR 36.5 29.7 6.8 22.7%
EBITDA, in MEUR 37.8 31.3 6.5 20.8%
FFO 1 from rental activities
26.7 19.9 6.8 34.5%
FFO 1 per share, EUR 0.61 0.55 0.06 10.9%
FFO 2 (incl. disposal results),
28.0 21.4 6.6 31.0%
  30.06.17 31.12.16    
EPRA NAV, in MEUR 1,745 1,591 154 9.7%
EPRA NAV per share, EUR 39.58 36.08    
LTV, percent 33.2% 31.4%    
Residential units 18,061 17,701 360 2.0%
Portfolio value, MEUR 2,596 2,326 270 11.6%
In-place-rent residential EUR/sqm/month 6.28 6.11    
Vacancy rate residential percent 2.7% 2.5%    
Maintenance and CAPEX, EUR per sqm 25.8 28.1    

Definitions of our alternative performance measures like FFO1 or EPRA NAV are available in our latest financial report http://investors.ado.immo/websites/ado/English/4010/reports.html in the Financial Performance Indicators section.

About ADO Properties

ADO Properties is a pure-play, Berlin-based residential real estate company with 19,100 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.

17.08.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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