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ADO Properties S.A. strengthens its market position in 2018 by strong operational improvements

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

20.03.2019 / 07:00
The issuer is solely responsible for the content of this announcement.

ADO Properties S.A. strengthens its market position in 2018 by strong operational improvements
  • Dynamic increase of income from rental activities (+23.3%)
  • EBITDA from rental activities (+21.7%) and FFO1 (+23.0%)
  • Strong annual like-for-like rental growth of 5.6%
  • Portfolio value increased to EUR 4.1 billion driven by acquisitions and valuation gains - conservative financial structure
  • EPRA Net Asset Value per share at EUR 55.05 as of 31 December 2018
    (31 December 2017: EUR 45.10) - an increase of 22.1%
  • Dividend proposal for the business year 2018 of EUR 0.75 per share
    (2017: EUR 0.60 per share)
Berlin, 20 March 2019 - In the 2018 financial year, ADO Properties S.A., the only Prime Standard listed residential real estate company solely focused on the city of Berlin, strengthened its market position once more by strong operational improvements. This is reflected by the key figures and the annual financial report for the full year 2018 published today.
Operational key figures show dynamic growth
The income from rental activities of ADO Properties rose dynamically in 2018 by 23.3% to EUR 134.6 million (2017: EUR 109.2 million) due to the strong 5.6% like-for-like rental growth as well as to further expansion of the residential portfolio. The EBITDA from rental activities increased by 21.7% from EUR 77.1 million in 2017 to EUR 93.8 million in the full year 2018.
The FFO1 (from rental activities) rose by 23.0% up to EUR 66.8 million (2017: EUR 54.3 million) equivalent to an FFO1 of EUR 1.51 per share (2017: EUR 1.23 per share) due to the ongoing energetic operational performance.
The average in-place rent of the residential portfolio increased to EUR 6.73 per sqm per month at the end of the year 2018 (31 December 2017: EUR 6.42). The vacancy rate for the residential portfolio decreased to 3.2% as of 31 December 2018 (31 December 2017: 3.6%).
Ongoing strong portfolio expansion
In 2018 ADO Properties' portfolio has grown by EUR 771 million to EUR 4,092 million as of 31 December 2018. It comprised 23,694 units at the end of the reporting period, of which are 22,238 residential units (31 December 2017: 20,649 units). The EPRA Net Asset Value of the portfolio amounted to EUR 2.4 million or EUR 55.05 per share as of 31 December 2018.
Conservative financial structure - average interest rate reduced to 1.7%
ADO Properties' financial structure remains conservative with an LTV of 39.6% by the end of the reporting period and an average interest rate of 1.7%. The average maturity of the outstanding debts is approximately 4.7 years. Almost all loans have fixed interest rates or are hedged. ADO Properties will continue with this conservative strategy targets and a LTV of maximum 45% after executing further acquisitions. "In the 2018 financial year we were able to extend once more our repertoire of financial instruments and funding sources. This enabled us to overcome the challenges which the past year presented us and constitutes a firm basis for our further expansion", says Florian Goldgruber, CFO of ADO Properties.
Expected FFO 1 run rate in 2019 approximately EUR 65 million
"Berlin is developing rapidly and ADO is set to benefit from the city's progression. Our focus remains on the optimization of our portfolio in all districts of the city", says Rabin Savion, CEO of ADO Properties. "We expect our 2019 year-end FFO 1 run rate to be approximately EUR 65 million. For the business year 2018 the board has recommended a dividend of EUR 0.75 per share, a 25% increase compared to the previous year. We will continue to focus on Berlin as the most promising property market in Germany and we are convinced that ADO Properties has the perfect base to ensure our sustained success for years to come."

Key Figures
01.01.18-31.12.18 01.01.17-31.12.17 Difference absolute Difference percentage
Income from rental activities, in MEUR 134.6 109.2 25.4 23.3%
EBITDA from rental activities, in MEUR 93.8 77.1 16.7 21.7%
EBITDA, in MEUR 96.3 80.0 16.3 20.4%
FFO 1 (from rental activities),
66.8 54.3 12.5 23.0%
FFO 1 per share, EUR 1.51 1.23 0.28 22.8%
FFO 2 (incl. disposal results),
69.3 57.3 12.0 20.9%
  31.12.18 31.12.17 Difference absolute Difference percentage
EPRA NAV, in MEUR 2,430 1,989 441 22.2%
EPRA NAV per share, EUR 55.05 45.10 9.95 22.1%
LTV, percent 39.6% 39.6%    
Residential units 22,238 20,649 1,589 7.7%
Portfolio value, in MEUR 4,092 3,321 771 23.2%
In-place-rent residential EUR/sqm/month 6.73 6.42    
Vacancy rate residential percent 3.2% 3.6%    
Maintenance and CAPEX, EUR per sqm 39.20 29.10    
Definitions of our alternative performance measures like FFO1 or EPRA NAV are available in our latest financial report under in the Financial Performance Indicators section.
About ADO Properties
ADO Properties is a company that focuses on the residential real estate sector and owns a property portfolio of around 24,000 units in Berlin. The company operates an entirely integrated, scalable in-house platform that includes a dedicated property administration. The portfolio of ADO Properties is concentrated in central locations inside Berlin's S-Bahn-Circle and in attractive districts on the city's periphery.

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

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