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ADO Properties S.A. shows solid growth in the first nine months 2018

DGAP-News: ADO Properties S.A. / Key word(s): Quarterly / Interim Statement

14.11.2018 / 07:00
The issuer is solely responsible for the content of this announcement.

ADO Properties S.A. shows solid growth in the first nine months 2018
  • Further dynamic increase of the income from rental activities by +26.6%
  • Portfolio grown by approx. 16%
  • Like-for-like rental growth improved to 5.5%
  • EBITDA from rental activities +26.4% and FFO1 +26.8%
  • EPRA Net Asset Value per share at EUR 49.92 as of 30 September 2018
    (31 December 2017: EUR 45.10)
  • Management board confirms positive outlook for the 2018 financial year with an increased FFO 1 run rate guidance of at least EUR 66 million
Berlin, 14 November 2018 - ADO Properties S.A., the only Prime Standard listed residential real estate company solely focused on the city of Berlin, shows a solid portfolio expansion as well as an ongoing growth of its value. This is reflected by the key figures for the first nine months of 2018 published today.
Ongoing growth of the main key figures
The income from rental activities of ADO Properties increased in the first nine months 2018 by 26.6% to EUR 99.6 million (9M 2017: EUR 78.7 million), driven by a strong 5.5% like-for-like rental growth and the permanent expansion of the residential portfolio. The EBITDA from rental activities rose by 26.4% to EUR 70.7 million (9M 2017: EUR 55.9 million).
The FFO1 (from rental activities) increased by 26.8% up to EUR 50.9 million (9M 2017: EUR 40.2 million) equivalent to an FFO1 of EUR 1.15 per share (9M 2017: EUR 0.91 per share) due to the solid operational performance.
The average in-place rent of the residential portfolio was EUR 6.65 per sqm per month at the end of the reporting period (31 December 2017: EUR 6.42). The vacancy rate for the residential portfolio decreased by 50 basis points to 3.1% as of 30 September 2018 (31 December 2017: 3.6%) - a result of the good pace of unit modernization.
Portfolio value grows by approximately 16%
In the first nine months 2018 the portfolio value of ADO Properties has grown strongly by EUR 527 million or 15.9% to EUR 3,848 million as of 30 September 2018 (31 December 2017: EUR 3,321 million). The portfolio comprised 23,667 units at the end of the reporting period, of which are 22,218 residential units (31 December 2017: 20,649 residential units), representing a growth of the number of residential units of 7.6%. The EPRA Net Asset Value of the portfolio amounted to EUR 2,201 million or EUR 49.92 per share as of 30 September 2018.
Financial structure remains conservative - low interest rate of 1.8%
ADO Properties' financial structure remains conservative with an LTV of 41.9% by the end of the reporting period and the company has reduced its target LTV to 40%, which is expected to be reached over the course of the next business year. The average weighted maturity of the outstanding debts is approximately 4.9 years while the average interest rate of the long-term debt is 1.8%. Almost all loans have fixed interest rates or are hedged. After the end of the reporting period ADO Properties placed successfully a debut Schuldschein and entered into a bilateral loan agreement with a leading international bank, both measures enlarging the company's funding resources by EUR 74.5 million. Proceeds will be used for general corporate purposes of the Group and repayment of short-term debt, mainly Commercial Papers. ADO Properties intends further refinancing transactions until the end of the business year 2018 to repay different short-term debt.
Management board confirms positive outlook and FFO1-prognosis for 2018
"Anticipating further growth and value increases for ADO Properties, we confirm once more that we expect our 2018 year-end FFO 1 run rate to be at least EUR 66 million after closing all signed transactions and implementation of the long term financing", comments Rabin Savion, CEO of ADO Properties. "The results of the first nine months 2018 demonstrate that our value-creating strategy fits in very well with the current environment at Berlin's residential market and its future potentials."
Florian Goldgruber, CFO of ADO Properties, says: "The latest transactions allowed us to extend our debt maturity profile and contributed to the further diversification of our refinancing instruments as well as our debt investor base. The transaction represents another step in our capital market-oriented financing strategy. For the next months a further diversification of our funding sources is envisaged."

Key Figures
01.01.18-30.09.18 01.01.17-30.09.17 Difference absolute Difference percentage
Income from rental activities, in MEUR 99.6 78.7 20.9 26.6%
EBITDA from rental activities, in MEUR 70.7 55.9 14.8 26.4%
EBITDA, in MEUR 74.2 58.3 15.9 27.3%
FFO 1 (from rental activities),
50.9 40.2 10.7 26.8%
FFO 1 per share, EUR 1.15 0.91 0.24 26.4%
FFO 2 (incl. disposal results),
54.5 42.6 11.9 27.9%
  30.09.18 31.12.17 Difference absolute Difference percentage
EPRA NAV, in MEUR 2,201 1,989 213 10.7%
EPRA NAV per share, EUR 49.92 45.10    
LTV, percent 41.9% 39.6%    
Residential units 22,218 20,649 1,569 7.6%
Portfolio value, in MEUR 3,848 3,321 527 15.9%
In-place-rent residential EUR/sqm/month 6.65 6.42    
Vacancy rate residential percent 3.1% 3.6%    
Maintenance and CAPEX, EUR per sqm 36.70 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 Berlin-based business focused on residential real estate with a portfolio of approximately 24,000 units in Berlin. 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.

14.11.2018 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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