ADO Properties S.A. shows another significant growth step in 2017

• Ongoing strong increase of income from rental activities (+21.6%)
• EBITDA from rental activities (+21.6%) and FFO1 (+24.9%)
• Solid annual like-for-like rental growth of 4.8%
• Portfolio value increased to EUR 3.3 billion driven by acquisitions and valuation gains - financial structure remains conservative
• EPRA Net Asset Value per share at EUR 45.10 as of 31 December 2017
  (31 December 2016: EUR 36.08) - an increase of 25%
• Dividend proposal for the business year 2017 of EUR 0.60 per share
  (2016: EUR 0.45 per share)
• Positive outlook for the 2018 financial year and expected FFO 1 run rate in 2018 around EUR 64 million after closing all signed transactions

Berlin, 20 March 2018 - ADO Properties S.A., the only Prime Standard listed residential real estate company solely focused on the city of Berlin, shows once more a significant growth step. This is reflected by the key figures and the annual financial report for the full year 2017 published today.

Operational key figures are essential growth drivers
The income from rental activities of ADO Properties increased in 2017 by 21.6% to EUR 109.2 million (2016: EUR 89.8 million) due to the solid 4.8% like-for-like rental growth and continuing expansion of the residential portfolio. The EBITDA from rental activities rose by 21.6% from EUR 63.4 million in 2016 to EUR 77.1 million in the full year 2017.
 
The FFO1 (from rental activities) rose by 24.9% up to EUR 54.3 million (2016: EUR 43.5 million) equivalent to an FFO1 of EUR 1.23 per share (2016: EUR 1.11 per share) due to the ongoing strong operational performance.
 
The average in-place rent of the residential portfolio increased to EUR 6.42 per sqm per month at the end of the year 2017 (31 December 2016: EUR 6.11). The vacancy rate for the residential portfolio was furthermore low with 3.6% as of 31 December 2017 (31 December 2016: 2.5%).
 
Further strong portfolio expansion
In 2017 ADO Properties' portfolio has grown by EUR 1 billion to EUR 3,321 million as of 31 December 2017. It comprised 21,970 units at the end of the reporting period, of which are 20,649 residential units (31 December 2016: 17,701 units). The EPRA Net Asset Value of the portfolio amounted to EUR 1,989 million or EUR 45.10 per share as of 31 December 2017.
 
Financial structure remains conservative - average interest rate reduced to 1.8%
ADO Properties' financial structure remains furthermore conservative with an LTV of 39.6% by the end of the reporting period and an average interest rate of 1.8%. The average maturity of the outstanding debts is approximately 5.4 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 2017 we took important steps to diversify our funding sources. We received a solid investment grade rating of Baa2 by Moody's which allowed us to place a EUR 400 million inaugural bond with a coupon of 1.5%. With that we were able to reduce our average interest rate once more to 1.8%. After the end of the reporting period we took the next steps to optimize our funding structure by adding a EUR 175 million revolving credit line and a commercial paper program to our funding toolbox", says Florian Goldgruber, CFO of ADO Properties.
 
Expected FFO 1 run rate in 2018 around EUR 64 million
"The successful development of ADO Properties in 2017 shows very well how important the strong focus on one dynamic market like Berlin can be. Thanks to our close look on the local market we were able to acquire once more a considerable number of assets and to achieve our operational growth targets", says Rabin Savion, CEO of ADO Properties. "We anticipate further growth and value increases for ADO Properties. Since the reporting of our Q3 2017 figures we have been able to acquire another 1,330 units which will be added to our portfolio in 2018. We expect our 2018 year-end FFO 1 run rate to be around EUR 64 million after closing all signed transactions. For the business year 2017 the board has recommended a dividend of EUR 0.60 per share, a 33% increase compared to the previous year. With our fully integrated management platform, our results-driven corporate culture and our outstanding knowledge of the Berlin residential market and its potentials we are well prepared to deliver further attractive returns to our investors."
  
Definitions of our alternative performance measures like FFO1 or EPRA NAV are available in our latest financial report under http://investors.ado.immo/websites/ado/English/4010/reports.html 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 22,000 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.