ADO Properties is a pure-play, Berlin-based residential real
estate company with 18,700 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.
Properties S.A. shows ongoing strong growth in 2016
- Strong increase of income from rental activities (+36.5%)
- EBITDA from rental activities (+30.7%) and FFO1 (+41.7%)
- Significant annual like-for-like rental growth of 6.0%
- Portfolio value increased to EUR 2.3 billion driven by acquisitions
and valuation gains
- Net Asset Value per share at EUR 36.08 as of 31 December 2016 (31
December 2015: EUR 24.10) - an increase of 50%
- Dividend proposal for the business year 2016 of EUR 0.45 per share
(2015: EUR 0.35 per share)
- Positive outlook for the 2017 financial year and expected FFO 1 run
rate in 2017 around EUR 60 million after investing the current cash
Berlin, 22 March 2017 - ADO Properties S.A., the only Prime Standard
listed residential real estate company solely focused on the city of
Berlin, reports a strong growth during the financial year 2016. This is
reflected in the annual financial report for the full year 2016
Further improvements of operational key figures
The income from rental activities of ADO Properties increased in 2016
by 36.5% to EUR 89.8 million (2015: EUR 65.8 million) due to the strong
6.0% like-for-like rental growth and further expansion of the
residential portfolio. The EBITDA from rental activities rose by 30.7%
from EUR 48.5 million in 2015 to EUR 63.4 million in the full year 2016.
The FFO1 (without profit from disposals) has increased by 41.7% up to
EUR 43.5 million (2015: EUR 30.7 million) equivalent to an FFO1 of EUR
1.11 per share (2015: EUR 1.04 per share) due to the strong operational
performance and the relative improvement of interest expenses.
The average in-place rent of the residential portfolio rose to EUR 6.11
per sqm per month at the end of the fourth quarter 2016 (31 December
2015: EUR 5.82). The vacancy rate for the residential portfolio was
reduced again by the company from 4.0% as of 31 December 2015 to 2.5%
as of 31 December 2016.
Two successful capital raises and further portfolio expansion
Two successful capital increases generating total net proceeds of EUR
293 million cleared the way for further acquisitions, particularly in
Berlin's attractive inner-city locations. Consequently ADO Properties'
portfolio has grown by EUR 824 million up to EUR 2,326 million as of 31
December 2016. It comprised 18,700 units at the end of the reporting
period, of which are 17,701 residential units (31. December 2015:
14,856 units). The Net Asset Value of the portfolio amounted to EUR
1,591 million or EUR 36.08 per share as of 31 December 2016.
Conservative financial strategy
ADO Properties' financial structure remains very conservative with an
LTV of 31.4% by the end of the reporting period and an average interest
rate of 2.1%. Almost all loans have fixed interest rates or are hedged.
The loans average maturity is approximately 5.3 years. ADO Properties
will continue with this conservative strategy targets and LTV of around
45% after executing further acquisitions.
Expected FFO 1 run rate in 2017 around EUR 60 million
"Our two successful capital raises in 2016 and the considerable number
of acquisitions as well as the improvements of our operational key
figures show very well our capability to fulfill the expectations of
our investors. With our fully integrated management platform and
results-driven corporate culture, our company is well prepared to
deliver further attractive returns to our investors", says Rabin
Savion, CEO of ADO Properties. "We expect further growth and value
increases for ADO Properties. We expect our 2017 year-end FFO 1 run
rate to be at least EUR 60 million after investing our cash position of
around EUR 150 million. For the business year 2016 we have recommended
a dividend of EUR 0.45 per share, a close to 30% increase compared to
the previous year. The fundamentals of Berlin support our outlook. They
are solid and getting stronger each year. Berlin continues to attract
newcomers of all ages who appreciate the city's cosmopolitan culture.
The resulting population growth drives an ongoing housing shortage in
Berlin which will remain for many years to come. Therefore the macro
economic outlook for residential investments stays very positive."
Key Figures 31.12.16
31.12.15 Difference absolute
Income from rental activities, in MEUR
89.8 65.8 24.0
EBITDA from rental activities, in MEUR
63.4 48.5 14.9
EBITDA, in MEUR 66.6
50.0 16.6 33.2%
FFO 1 from rental activities
in MEUR 43.5 30.7
FFO 1 per share, EUR 1.11
1.04 0.07 6.7%
FFO 2 (incl. disposal results),
in MEUR 46.7 32.2
EPRA NAV, in MEUR 1,591
844 747 88.5%
EPRA NAV per share, EUR 36.08
LTV, percent 31.4%
Residential units 17,701
14,856 2,845 19.2%
Portfolio value, MEUR 2,326
1,502 824 54.9%
In-place-rent residential EUR/sqm/month
Vacancy rate residential percent 2.5%
Maintenance and CAPEX, EUR per sqm 28.10
About ADO Properties
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Company: ADO Properties S.A.
20 rue Eugène Ruppert
Grand Duchy of Luxembourg
Phone: +352 26 493 412
Fax: +352 27 860 722
Indices: SDAX, FTSE EPRA/NAREIT Global Index, FTSE
EPRA/NAREIT Developed Europe Index, FTSE EPRA/NAREIT Germany Index
Listed: Regulated Market in Frankfurt (Prime
Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart,
End of News DGAP News Service