Company Presentation March 2017 FY 2016 results and 2017 guidance ADLER REAL ESTATE AG

Transcription

1 Company Presentation March 2017 FY 2016 results and 2017 guidance ADLER REAL ESTATE AG

2 Content 1. ADLER Real Estate AG at a glance 2. Market environment 3. Financial performance 4. Operational performance 5. ACCENTRO Real Estate AG 6. ADLER in the Capital Markets 7. Governance and operational organisation 8. Guidance and outlook 9. Appendix I Top 5 locations 10. Appendix II German residential market Company presentation March 2017 Unlock organic growth potential Page 2

3 1. ADLER Real Estate AG - at a glance An ongoing success story 3

4 1.1 ADLER Real Estate AG at a glance A leading listed real estate company in Germany SDAX-listed since 2015 (also included in FTSE EPRA/Nareit, Global Real Estate Index, GPR General Index, DIMAX) Focus on growth and value creation Event-driven/special situation strategy Strong acquisition-led growth 2013 to 2015 and consolidation in 2016/2017 Focus on affordable housing in specific regions in Germany Supplier of affordable housing A clear equity story for value investors Page 4

5 1.2 ADLER Real Estate AG at a glance Significant FFO increases for the next 3 years Through operational efficiencies Through reduction of interest expenses for higher yielding debt Further portfolio growth (pipeline of more than 10,000 units) Continued improvements of key financial metrics Reduction of LTV from 69.8% (2013) to 61.3% (2016) Reduction of WACD from 4.70 % (2013) to 3.69% (2016) Rating improvements from B+ to BB-/positive outlook Internalisation of key operational functions Property management Facility management A simple, clear business model Consistently delivering on targets and building a stronger track record Page 5

6 1.3 Execution and track record of growth Acquisitions/Disposals Portfolio 1,906 units Portfolio 2,400 units Portfolio 8,500 units ESTAVIS AG* 2,100 units Successful disposal of legacy Commercial assets Portfolio 4,300 units Successful disposal of Berlin assets 1,174 units Portfolio 6,750 units Westgrund AG Takeover offer c. 21,000** units Ajax portfolio c. 2,700 units Acquisition of 24.79% of ATX listed conwert Immobilien Invest SE 29,896 units From 7,000 to 50,000 units in 3 years ADLER announces a package of measures to sustainably boost earnings strength Portfolio 160 units Additional 5 m shares in conwert aquired Stake in conwert sold to Vonovia SE Portfolio 700 units Corporate Bond 14/19 EUR 50m Capital increase EUR 80m Capital markets Tap 14/19 Corporate Bond EUR 50m Capital Increase EUR 21m Tap 14/19 Corporate Bond EUR 30m Corporate Bond 15/20 EUR 300m Capital increase EUR 190m Mandatory Convertible Bond (IFRS Equity) EUR 175m Tap Corporate Bond 15/20 EUR 50m Change in the Group s Management Board Convertible Bond 16/21 EUR 137m Redemption Schuldscheindarlehen EUR 62m Redemption Schuldscheindarlehen EUR 27m Redemption Margin Loan EUR 200m Considerable growth and value creation as a result of a successful strategy and its execution Page 6

7 1.4 Strong performance track record Number of rental units Gross rental income Fastest growing company in the real estate industry Market value investment properties -1.2 % m m % % FFO I NAV LTV m m % % PP Significant growth and year on year value creation Page 7

8 2. Market environment German residential market offers huge potential 8

9 2.1 German economy stable growth GDP Germany, yoy change in % Index of manpower demand All economic indicators positive Immigration balance (000) ,5 1 0, * Source: Statistisches Bundesamt * Source: Bundesanstalt für Arbeit Source: Statistisches Bundesamt Ifo business climate index Unemployment rate (%) Origin of immigration (000), Other ,5 6 5,5 Asia Europe Each year December * * 2017 Estimates, Gemeinschaftsprognose der führenden Wirtschaftsinstitute 11 Americas 81 Africa Positive macro backdrop Page 9

10 2.2 German economy regional differences GDP 2015, in bn GDP 2015, yoy growth in % Employment growth*, Δ 2015 to 2010 in % Germany total NRW Lower Saxony Berlin Saxony Brandenburg Thuringia Saxony-Anhalt Mecklenb.-Pom Source: Statistische Ämter der Länder 3,026 Berlin Brandenburg Lower Saxony Mecklenb.-Pom Germany total Saxony Thuringia Saxony-Anhalt NRW Berlin 9.3 9,3 % % Source: Arbeitskreis VGR des Bundes und der Länder Lower Saxony Germany total NRW Saxony c 70 % of portfolio located in strongly growing federal states , Brandenburg Thuringia * Number of employed persons Mecklenb.-Pom. Saxony-Anhalt Source: Arbeitskreis Erwerbstätigenrechnung des Bundes und der Länder 6.0 ADLER exposed to strong and growing regions Page 10

11 Financial performance Financial metrics improved 11

12 3.1 Results 2016 highlights Change in% 2016 guidance Δ result to guidance in % Gross rental income ( m) * Net rental income ( m) Income from property lettings ( m) Income from the sale of properties ( m) EBITDA adj. ( m) FFO I ( m) FFO II ( m) EBITDA adj. EBITDA adj. Mio Improved fundamentals 00 as result of value creation FFO I FFO II FFO I % % % Mio * Including NRI from disposed non-core assets Mio ADLER outperforming guidance Page 12

13 3.2 Results 2016 highlights (cont d) 00 ADLER with improved financial profile Change in % Investment properties ( m) 2, , guidance Δ result to guidance in % EPRA NAV ( m) 1, , Equity ratio (%) PP LTV (excl. convertibles) (%) PP 62* -1.1 WACD (%) PP EPRA NAV LTV WACD Mio % * Guidance originally at 65 %, updated to 62 % at half-year stage % PP PP 4,5 4 3, ADLER outperforming guidance Page 13

14 3.3 Profit and loss statement Strong year-on-year growth in EUR million Comments Gross rental income increased by 16.5% yoy benefitting from the income received from the WESTGRUND AG which had been acquired mid Earnings from the sale of properties benefited from disposal of a Berlin portfolio which was earmarked for privatisation, but sold as a whole by ACCENTRO in Q3. The variance in other operating income was generated by negative goodwill arising upon the initial consolidation of JADE (EUR 42.3 million), which was recognized as a nonrecurring item for the first time in the previous year s comparative period and reported under other operating income. Income from fair value adjustment of investment properties increased strongly to EUR million reflecting the underlying performance of the company s portfolio as well as the uplift of valutions in line with the market. Of which EUR 9.5 m current tax expense and EUR 44.2 m deferred taxes Announced optimization measures have started to kick-in in the second half of 2016 Page 14

15 3.4 Balance sheet In EUR million Reflecting the company s successful activities of financial consolidation % of total % of total Comments Investment properties increased due to income from fair value adjustments of investment properties amounting to EUR million - reflecting the underlying performance of the company s portfolio as well as the uplift of valutions in line with the market. Assets 3, , ADLER has significantly grown its cash position in 2016, partly due to successful issue of convertible bond (EUR 137 million). Non-current assets held for sale include shares held in conwert Immobilien Invest SE as ADLER signed irrevocable agreement to tender them to Vonovia. Equity rose considerably due to increasing profits, bringing equity ratio up 1.3 percentage points to 26.6 percent. Assets Equity and liabilities 3, , Financial liabilities to banks declined following the refinancing of EUR 62 million of Schuldscheindarlehen through convertible bond. Significant increase in assets and balance sheet strengthening Page 15

16 3.5 Sources of funding and debt schedule No major refinancing risk over the next three years m Secured debt Corporate bonds Convertibles Reducing the company s WACD Diversified sources of funding (99 % fixed) Convertibles* Corporate Bonds* * unsecured 27.1 % 8.6 % 64.3 % Secured debt (Schuldschein- Darlehen and bank loans)* years 10 WAM % 2 1,5 1 0,5 0 ICR Covenant of 04/2020 corporate bond ISIN XS WACD % 5 4,5 4 3, PP Improved credit credentials Page 16

17 3.6 Debt redemption schedule High yielding bonds can be payed back prematurely Bonds Volumen ( m) Due date Nominal interest rate Premature redemption 2013/18 35 April 3, None Rate, at which premature redemption is possible 2014/ April 1, Anytime, but total amount only from to from to from / April 8, Anytime until from capital increases, max. 35 % of total volume 100,0 from /18 Accentro 10 Nov 14, from June 26, Convertibles 2013/ June ,0 Anytime At face value, if amount outstanding falls below 30 % of original amount 2013/18 11, Dec ,0 Anytime At face value, if amount outstanding falls below 30 % of original amount 2016/ June ,5 From Juli 19, 2019 At face value, if trading at more than 130 percent of strike price for at least 20 out of 30 trading days 2014/19 Accentro Mar ,25 If less than 30 percent outstanding At nominal value plus accrued interest Redemption of debt to improve financial metrics Page 17

18 Operational performance Operational metrics improved 18

19 4.1 Operational performance - portfolio at a glance TOP 20 Locations Units NRI per year m Wilhelmshaven 6, Duisburg 4, Berlin 1, Wolfsburg 1, Cottbus 1, Halle 1, Göttingen 1, Helmstedt 1, Leipzig 1, Chemnitz Dortmund Ludwigshafen Borna Düsseldorf Norden Aurich Schöningen Schwerin Fürstenwalde Dresden Top 20 locations account for c. 60 % of rental income Portfolio* Total Core Portfolio Non Core Portfolio Rental units 47,366 44,560 2,806 Ø rent/sqm/month in (actual) Ø rent/sqm/month in (re-letting) Occupancy rate in % Market value m 2,408 2, Market value/sqm in Contracted net cold rent in m Multiple * Investment Properties, without 274 units of project development in Erfurt which have become part of the portfolio in Q and gone into marketing only then Upside potential in rents, occupancy rates and market value Page 19

20 operational performance ADLER Group Change 2016 guidance Gross rental income ( m) % 260* Net rental income % Occupancy rate (%) PP 90.8 Ø rent /sqm/month ( ) % 5.04 * Including NRI from disposed non-core assets Core portfolio (like for like) Change Residential & Commercial Units 44,309 Ø rent in /sqm/month % Occupancy rate in % pp Residential only Gross rental income m Occupancy rate % 91,0 90,0 89,0 88,0 87,0 ADLER in line with guidance Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q /sqm/month 5,00 4,95 4,90 4,85 Ø rent Q1 Q2 Q3 Q4 Q1 Q2 Q3Q Units 43,385 Ø rent in /sqm/month % Occupancy rate in % pp Commercial only Core portfolio accounts for c. 93 % of total portfolio Units 924 Ø rent in /sqm/month % Occupancy rate in % pp Page 20

21 4.3 Top 20 locations with vacancy reduction/rent increase Top 20 locations account for c. 60 % of rental income Location Federal State Units Ø Inplace rent /sqm/month vacancy rate (%) Change in % When reletting Wilhelmshaven Lower Saxony 7, Duisburg Northrhine-Westphalia 4, Berlin Berlin 1, Wolfsburg Lower Saxony 1, Cottbus Brandenburg 1, Halle (Saale) Saxony-Anhalt 1, Göttingen Lower Saxony 1, Helmstedt Lower Saxony 1, Leipzig Saxony 1, Chemnitz Saxony 1, Dortmund Northrhine-Westphalia Norden Lower Saxony Borna Saxony Schöningen Lower Saxony Aurich Lower Saxony Düsseldorf Northrhine-Westphalia Schwerin Mecklenburg-Pomerania Ludwigshafen Rhineland-Palatinate Fürstenwalde Brandenburg Oberhausen Northrhine-Westphalia Change in PP Success in vacancy reduction and rental increase and considerable future upside potential Page 21

22 4.4 Focus on occupancy rate/rent level - selected examples Berlin Spandau Rostock/Kiel/Lübeck/Bad Bramstedt Ludwigshafen 10.8% 1.4% % 1.8% % 3.5% Investment of c. EUR 4 m in renovation and modernization On-site office (Letting & Tenant services) Change of Property and Facility Management post asset acquisition to reduce the fluctuation. Rent increase EUR 0.5/sqm p.m. Covered by in-house Property Management on-site Modernization and maintenance at fluctuation Ongoing rent adjustments Saalfeld Duisburg Berlin Hellersdorf I 13.1% 13.0% % 2.5% % 0.7% year rental contract has been signed with district administration to accomodate refugees Change of Property Management Opportunistic investment in 2012 Change of Property Management post asset acquisition As at December 31, 2016 Vacancy rate (%) Inplace-rent ( /sqm/month) Properties need specific measures for successful vacancy reduction and rent increase Page 22

23 5. ACCENTRO Real Estate AG Trading and Privatisation platform as a key contributor to the Group 23

24 5.1 ACCENTRO at a glance Privatisation (unit by unit) FY 2014 FY 2015 FY 2016 Asset base with significant upside potential Location % of total book value Units* sqm (000) BW/sqm ( ) Units sold No Sales proceeds EUR m Disposal of book values EUR m Profit from disposals EUR m Gross margin % Trading (block trades) FY 2014 FY 2015 FY 2016 Units sold No , Sales proceeds EUR m Disposal of book values EUR m Profit from disposals* EUR m Gross margin % Considerable reserves in inventories Strong exposure to attractive Berlin market Berlin 83% 1, ,755 Short- to medium term market expectation: District Units Altglienicke 75 Charlottenburg 41 Friedrichshain 186 Hermsdorf 17 Lichtenberg 139 Hohenschönhausen 779 Mitte 40 Neukölln 207 Oberschöneweide 13 Reinickendorf 163 Schöneberg 9 Spandau 171 Steglitz 63 Tegel 15 Tempelhof 6 Wilmersdorf 27 Zehlendorf 36 Total ACCENTRO s Berlin exposure per district > 32% gross margin * without 675 units of project in Hohenschönhausen which was taken over end of 2016 Page 24

25 6. ADLER on the Capital Markets Outperforming benchmarks 25

26 6.1 ADLER share performance benchmarked Company Recommendation Target (EUR) Date DZ Bank Buy /2017 Lampe Bank Buy /2017 Berenberg Buy /2017 ODDO Seydler Buy /2017 HSBC Buy /2017 BoA Merril Lynch Sell /2016 Consensus ADLER share traded at discount to NAV In NAV/share, basic/diluted (Dec. 31, 2016) 18.35/16.93 Consensus Actual trading (Apr 4, 2017) Upside Potential % 115 ADLER share versus peers ADLER share versus indices ADLER ADO Dt.Wohnen Vonovia Grand City LEG TAG ADLER SDAX DAX DIMAX In line with benchmarks Page 26

27 6.2 Market cap and shareholder structure Trading volumes Market cap* Mio 800 * , valuation at end of year Average trading volume March 17: c. 58,000 shares Market cap tripled in 3 years Mar 2017 Shareholders (31.Dec 2016) Holdings in % Wecken Cie. Basel 24.9 Mezzanine IX Investors S.A. Luxembourg 21.1 Uhlandstrasse Immobilien GmbH Berlin 6.3 Asset Value Investors Ltd London 5.1 Free float 42.6 Total Capital stock: Listed Stock exchange Indices: Basic information 47,702,374 shares Prime Standard Frankfurt/Main SDAX, CDAX, FTSE EPRA/NAREIT Global Real Estate Index, GPR General Index, DIMAX In line with benchmarks Page 27

28 7. Governance and operational organisation Operational activities re-aligned 28

29 7.1 Group governance organisational chart Lean organisational structure ADLER REAL ESTATE AG Supervisory Board Dr. D. Hoffmann, T. Katzuba von Urbisch, T. Schmid Executive Committee Management Board Dr. T. de Vargas Machuca (CFO and Head), A. Krienen, S. Frank, M. Rienecker, C. Wolff A. Krienen (CEO), S. Frank (COO) Corporate Governance Compliance & Human Resources Corporate Finance & Strategy Accounting & Controlling Bank Financing Legal Corporate Communication Operational Management / Transaction A. Wolf M. Rienecker C. Wolff P. Hoffmann F. Sitta Dr. R.-D. Grass S. Frank Lean organisational structure Page 29

30 7.2 Management Experienced international team Arndt KRIENEN CEO, Management Board, Executive Committee CEO since 9 June 2016 Member of the Management Board of ADLER Real Estate AG as from January 2016 CEO of Westgrund AG since 2000 which ADLER has taken over in 2015 Experience of more than 15 years in real estate business Born 1966, attorney at law Sven-Christian FRANK COO, Management Board, Executive Committee Since 9 June 2016 Responsible for operational management (asset, property and facility mgmt) and transaction Formerly held various leading positions in real estate business, notably at Gestrim Deutschland AG and Deutsche Real Estate AG Born 1965, attorney at law, mediator (DAA), real estate asset manager (IREBS) Tomas DE VARGAS MACHUCA CFO and Head of Executive Committee Responsible for the Company s Capital Markets operations since 2013 Before joining ADLER, Tomas de Vargas Machuca spent 15 years in the real estate business of which 10 years in banking He was an Executive Director at UBS Investment Bank s Real Estate Finance He holds a B.A. and a MSc in Economics from Bocconi University in Milan, Italy Carsten WOLFF Head of Accounting and Finance, Executive Committee Joined ADLER Real Estate AG in 2003 as Head of Accounting and Finance department Carsten Wolff has a degree in business management and has worked in the areas of accounting, controlling, risk management as well as internal auditing for more than 25 years Born 1960, worked for many years at Deutsche Steinzeug Cremer & Breuer, most recently as Head of auditing Page 30

31 7.3 Operational organisation streamlined Regional structure established Complete internalisation of Property and Facility Management Shared Service Centre established for rent and operating cost administration Single IT system throughout the company Capex and modernisation program concerning 1,500 vacant residential units Head: S. Frank Asset management Property management Head of operational management ADLER to become fully integrated real estate company Facility management Integrated real estate group Page 31

32 8. Guidance and Outlook 2017 Taking ADLER to the next level 32

33 8.1 Guidance and Outlook 2017 ADLER set to improve operational and financial metrics further Target 2017 Change % Measures Net rental income ( m) Compensate sale of non-core by improved operational performance and portfolio growth Occupancy rate (%) Internalisation of property/facility management, tenant app Ø rent /sqm/month ( ) Internalisation of property/facility management FFO I ( m) Debt redemption leads to decrease in financial liabilities, cost cutting, improved operational performance FFO II ( m) Net of potential of block trades EPRA NAV ( m) , , Further fair value adjustments LTV (excl. convertibles) (%) PP Debt redemption, fair value adjustments WACD (%) PP Redemption of higher yielding debt, refinancing Unveiling organic growth potential Page 33

34 9. APPENDIX I Top 5 locations at a glance 34

35 9.1 Top 1 location Wilhelmshaven No 2 seaport in Germany Δ yoy (%) Units 6,799 Ø rent ( /sqm/m) Vacancy rate (%) Ca. 80,000 inhabitants No 1 location of the German navy Only German seaport independent of tides Handles more than 70 % of all crude oil shipments that pass through german ports Traditional home of ancillary port services Logistics IT-services Crane building Handling services Upcoming in tourism and science/education (Senckenberg maritime institute /Jade high school) Demographic trend Unemployment rate Jan 17 Actual Δ prev. month Available per capita income ( 000) Wilhelmshaven Average rent 2016 /sqm/month Actual ADLER Lower Saxony Mietspiegel Page 35

36 9.2 TOP 2 location Duisburg No 1 inland port in Germany Δ yoy (%) Units 4,152 Ø rent ( /sqm/m) Vacancy rate (%) Ca 500,000 inhabitants No 1 in German steel production Mittal Steel Ruhrort Thyssen-Krupp Largest German inland port Strong in logistics Kühne& Nagel Rhenus Traditional home of Franz Haniel (logistics, trade, etc) Klöckner Werke (engineering) Grillo Werke (metal and chemicals) Lehnkering (logistics) Demographic trend Unemployment rate Jan 17 Actual Δ prev. month Available per capita income ( 000) Duisburg Average rent 2016 /sqm/month Actual ADLER NRW Mietspiegel Page 36

37 9.3 TOP 3 location Berlin Capital of Germany Ca Einwohner Hauptstadt und größte Stadt Deutschlands Demographic trend Diversifizierter Industriestandort Δ yoy (%) Units 1,541 Ø rent ( /sqm/m) Vacancy rate (%) Life sciences 300 meditech Unternehmen 230 biotech Unternehmen 30 pharmazeutische Unternehmen IT Dienstleistungen Unternehmen Sehr lebhafte Start-up Scene Dienstleistungen Versicherungen, Call-Center, Tourismus, Kommunikation, Beratung Unemployment rate Jan 17 Actual Δ prev. month Available per capita income ( 000) Berlin 18.6 Average rent 2016 /sqm/month Actual ADLER Mietspiegel Page 37

38 9.4 TOP 4 location Wolfsburg The Volkswagen city Δ yoy (%) Units 1,300 Ø rent ( /sqm/m) Vacancy rate (%) Ca 125,000 inhabitants Founded in 1938 solely for the purpose of buildung cars Volkswagen is the dominant Company Amongst cities with highest per capita income in Germany Demographic trend Unemployment rate Jan 17 Actual Δ prev. month Available per capita income ( 000) Wolfsburg Lower Saxony Average rent 2016 /sqm/month Actual ADLER Mietspiegel Page 38

39 9.5 TOP 5 location Cottbus Cultural centre of the Sorbs Ca 100,000 inhabitants Second largest city in Brandenburg Demographic trend Centre of admistration, service and science Δ yoy (%) Units Ø rent ( /sqm/m) Vacancy rate (%) Political and cultural centre of the Sorbs in Germany Important companies: LEAG, mining and electricity, 4th largest energy supplier in Germany ABB Deutsche Bahn (maintenance works) Deutsche Post (distribution centre) Unemployment rate Jan 17 Actual Δ prev. month Available per capita income ( 000) Cottbus Brandenburg Average rent 2016 /sqm/month Actual ADLER Mietspiegel Page 39

40 10. APPENDIX II German residential market 40

41 10.1 German residential market Fewer households and new constructions, increasing construction costs Households New constructions Construction costs Mio. % , , Demand* Euro/sqm % 40 39, , , Flats constructed Number of housholds Single-household in % * As determined by Bundesinstitut für Bau-, Stadt- und Raumforschung (BBSR) Average construction costs per sqm Existing property remains attractive Page 41

42 10.2 German residential market Increasing sales Portfolio-Transactions Transactions of flats (existing and new) Euro bn Euro bn Tsd Source: Ernst & Young Sales Number of units Source: Accentro AG 2016 fewer portfolio-transactions, but more transactions of flats expected Page 42

43 10.3 German residential market Stable development of rents with strong regional differences German market average rental expense: Change yoy in percent, yearly average Germany: Huge regional differences in rental development 1,6 1,4 1, ADLER Real Estate AG: Rental premium when reletting, in % Mecklenb.-Pom. Berlin Thuringia Brandenburg Lower Saxony Schleswig-Holstein Northrhine-Westfalia Saxony Source: Bulwiengesa ADLER with potential to increase rents when re-letting Page 43

44 10.4 Not affected by Mietpreisbremse Rent restrictions in strained residential markets only Mietpreisbremse effective in areas with strained residential market only. These areas are determined by federal states. In these areas when re-letting existing apartments rents may be increased to the level of comparable local apartments plus 10 percent. For newly constructed apartments there is no such limit. Mietpreisbremse is not effective either for the first re-letting after comprehensive modernisaton measures. Federal state Number of ADLER units in area with strained residential market Berlin 1,662 Thuringia 714 Northrhine-Westfalia 507 Brandenburg 240 Hesse 199 Schleswig-Holstein 104 Other 0 Total 3, percent of ADLER units in areas, where Mietpreisbremse is effective Page 44

45 Disclaimer This document and its contents are confidential and not meant for forwarding. transmission. publication. duplication. or disclosure (in whole or part) to other persons. Outside of Germany the distribution of this document may be restricted by applicable laws. This document does not constitute an offer to sell or an invitation to make an offer to buy or subscribe for securities. This document and the information contained therein may not be distributed in the United States of America. Canada. Australia. Japan or other jurisdictions. in which such offer. respectively. such invitation to make an offer to buy or subscribe for securities is not allowed. This document does not constitute an offer to sell securities in the United States. Securities. including the securities of ADLER Real Estate Aktiengesellschaft may not be sold or offered for sale within the United States or to or for the account of / in favour of US citizens (as defined in Regulation S under the U.S. Securities Act of 1933 in the current version (the "Securities Act") unless they are registered under the regulations of the Securities Act or unless they are subject to an exemption from registration. This document includes 'forward-looking statements'. Forward-looking statements are all statements. which do not describe facts of the past. but containing the words "believe". "estimate". "expect". "anticipate". "assume". "plan". "intend". "could". and words of similar meaning. These forward-looking statements are subject to inherent risks and uncertainties since they relate to future events and are based on current assumptions and estimates of ADLER Real Estate Aktiengesellschaft. which might not occur at all or occur not as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of ADLER Real Estate Aktiengesellschaft. The actual financial position and the actual results of ADLER Real Estate Aktiengesellschaft. as well as the overall economic development and the regulatory environment may differ materially from the expectations. which are assumed explicitly or implicitly in the forward-looking statements and do not comply to them. Therefore. investors are warned to base their investment decisions with respect to ADLER Real Estate Aktiengesellschaft on the forward-looking statements mentioned in this document. Page 45

46 Contact ADLER Real Estate AG Joachimsthaler Straße Berlin Tel: +49 (0) Investor Relations Dr. Rolf-Dieter Grass Corporate Communication Tel: +49 (0) Mobile: Page 46