Adler Group Reports Strong Operational Results for 2023

Adler Group S.A. experienced a robust operational performance in 2023, achieving a 5.1% increase in like-for-like rental growth and maintaining a low operational vacancy rate of 1.1%. The company successfully handled significant asset disposals, generating approximately €530 million in gross proceeds. These transactions included the "Wasserstadt" rental portfolio and various development projects.

The firm ended the year with a strong liquidity position, marked by €377 million in cash reserves. This financial stability was supported by new placement of "New PIK 1.5L notes" and cash inflows from project sales, despite repaying approximately €280 million in debt during Q4 2023. Looking ahead to 2024, Adler Group anticipates a net rental income range of €200 million to €210 million.

Despite challenges in the transaction market, Adler Group is proactively revising its restructuring plans, focusing on strategic asset repositioning and financial restructuring to stabilize its financial outlook. The management, in coordination with bondholders, has reached a non-binding principle agreement on restructuring plans expected to solidify the company's operations for the coming years.

FY 2023 also saw adjustments in gross asset value, mainly due to asset disposals and portfolio revaluations, lowering from €5.2 billion in 2022 to €4.2 billion. The company's financial results were affected by extraordinary expenses related to restructuring, which impacted overall profitability. Nonetheless, Adler Group remains committed to addressing these financial challenges and optimizing its strategic direction in the wake of market fluctuations.