21
HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, 2016

HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

HALF YEAR

FINANCIAL RESULTS 2016

AUGUST 17, 2016

Page 2: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

01 OVERVIEW &

INVESTMENT

HIGHLIGHTS

Page 3: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

Key portfolio metrics (end of Q2 2016)

Investment highlights

2

Overview ADO – the pure-play Berlin residential specialist

…a focussed residential portfolio¹…

Residential

86%

Commercial²

12%

Other

2%

Long term potential;

10.7%

Mid term potential;

10.8%

Privatization

portfolio, 2.5%

Buildings 314

Residential units 15,749

Commercial units 957

Total units 16,706

Lettable area (k sqm) 1,096

Property value € 1.7bn

EPRA NAV € 1,061m

Current cash position € 108m

LTV 40.3%

In-place rent € 80.1m

1 Based on in-place rent total portfolio

2 Commercial in-place rent mainly as part of residential buildings

3 Based on total units

…with potential for privatization³

Berlin residential pure play with a € 1.7bn quality portfolio

Efficient, fully integrated and scalable platform with clear strategy

to create value. This unique platform allows management to have

in-depth knowledge of the Berlin market from a decade of local

presence

Exceptional rental growth demonstrated over the last years,

supported by our quality portfolio, smart targeted CAPEX

investments and active management. Q2 2016 like-for-like rental

growth of 5.2%

Conservative financial strategy with c. 45-50% target LTV, c. 6 years

weighted average maturity, with low (1.97%) average cost of debt

and marginal cost of debt of 1.1% supporting the FFO profile

2

3

1

4

Our properties…

Christburger Str.

Prenzlauer Berg

Möckernstr.

Kreuzberg

Schildhornstr.

Steglitz

Current hold portfolio

97.5%

Page 4: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

Highlights Q2

3

Financials Q2 2016 H1 2016

Income from rental activities € 21.4m € 41.7m

EBITDA from rental activities € 15.3m € 29.7m

EBITDA Margin 77% 76%

FFO1 € 10.5m € 19.9m

FFO1 per share € 0.28 € 0.55

Operations & Balance Sheet Q2 2016 2015

Rental growth l-f-l (LTM) 5.2% 7.3%

Vacancy rate 2.8% 4.0%

Privatization - avg. sales price /sqm € 3,041 € 2,801

Total maintenance & CAPEX /sqm € 26.7 € 20.8

EPRA NAV per share € 27.55 € 24.10

LTV1 40.3% 43.6%

• Strong operational performance in Q2 with Income

from rental activities growing by 5% and EBITDA from

rental activities by 6%

• Like-for-like rental growth of 5.2% including for the first

time the Carlos portfolio confirms our target of 5% like-

for-like rental growth for 2016

• Vacancy rate significantly improved by 120bps since

the beginning of the year to 2.8%

• EBITDA-margin improving over the year as expected

• Privatization program remains strong with an avg. sale

price of € 3,041 per sqm

• On April 21, 2016 we issued 3.5m new shares at a

discount of only 1.7% raising net proceeds of € 98m

• EPRA NAV per share increased by 14% since the

beginning of the year, after dividend payment of € 0.35

per share

• LTV at the end of the quarter at 40.3%, increasing to

approx. 45% including new acquisitions after the

reporting period

1 Excl. € 229 million new acquisitions signed after the end of the quarter

Page 5: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

02 ADO

PORTFOLIO

AND

STRATEGY

Page 6: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

Key metrics residential portfolio (end of Q2 2016)1

Well balanced portfolio by locations

5

Central Locations3 North East South West Total

Property value (in mill. €) 827 291 187 118 317 1,740

Number of units 6,170 3,150 1,720 823 3,886 15,749

Avg. Rent in € / sqm / month 6.32 5.58 6.55 6.12 5.31 5.92

Avg. New letting rent in € / sqm / month2 9.90 6.25 8.61 8.62 6.31 7.68

Occupancy (physical) 97.3% 97.9% 98.8% 97.1% 95.8% 97.2%

ADO has a quality, balanced Berlin focused portfolio

100% exposure within Berlin city borders with around 50% in Central Locations

1 All values except the property value are for the residential portfolio only

2 Based on the last three months

3 Berlin’s Central Locations comprise the districts Charlottenburg-Wilmersdorf, Friedrichshain, Kreuzberg, Mitte, North Neukölln, North Steglitz, Prenzlauerberg, South Reinickendorf and Schöneberg

High quality turn of the century…

N

W E

S

Spandau

Reinickendorf

Charlottenburg

-Wilmersdorf

Steglitz-

Zehlendorf

Mitte

Pankow

Lichten-

berg

Marzahn-

Hellersdorf

Treptow-

Köpenick Tempelhof-

Schöneberg

Friedrichshain-Kreuzberg

Central

Neukölln

Building locations:

Central Locations4

North

East

South

West

58%

5%

11% 11% 10% 4%

Year of construction

1991-

2002

1973-

1990

1965-

1972

1950-

1964

< 1918 1919-

1949

20%

44%

23%

12%

0% 1%

>18 6

# of floors

< 4 12-18 5 7-11

% of buildings % of buildings

…mostly low rise buildings

Page 7: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

6

Sizeable acquisition with a strong fit to the existing ADO portfolio

• 2 central location portfolios with assets located in Neukölln,

Schöneberg and Wilmersdorf

• Mixed property type with “Altbau” buildings and settlements from

the 70s

• Substantial reversionary potential of 38% for the “Altbau” assets

and 17% in the large housing estates

• € 78 million of existing debt taken over which will be refinanced

• Expected annual FFO contribution of ca. € 6.9m in the first year

and overall like-for-like rental growth supporting our 5% target

Feurigstr. 22

Schöneberg

Key metrics

Acquisition cost €229m

€1,665 / sqm

Residential / commercial area sqm 125,559 /5,427

Number of residential/commercial units 1,877 / 28

Rental income p.a. €10.2m

Avg. rent / sqm / month – current € 6.26

Avg. new lettings rent / sqm / month € 7.56

Vacancy residential/commercial 0.8% / 3.6%

Estimated FFO1 €6.9m

1,905 units acquired and integrated since the end of Q2

N

W E

S

Spandau

Reinickendorf

Charlottenburg

-Wilmersdorf

Steglitz-

Zehlendorf

Mitte

Pankow

Lichten-

berg

Marzahn-

Hellersdorf

Treptow-

Köpenick

Neukölln Tempelhof-

Schöneberg

Friedrichshain-Kreuzberg

Central

Hohenzollerndamm 6

Wilmersdorf

Sonnenallee 277

Neukölln

Taken over in Q3 2016

Page 8: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

1.8% 2.4% 3.1%

0.8% 0.7%

1.5% 1.0%

1.6%

2.7% 1.6%

2.5% 1.3%

3.3%

3.8%

2.9%

5.8%

4.7%

8.0% 7.3%

5.2%

2012 2013 2014 2015 Q2 16

Residential like-for-like rental growth1 (%) Q2 growth of 5.2% in line with our 2016 target

Exceptional rental growth continues at 5.2% including Carlos, on track for the 2016 target of at least 5%

Growth beyond rent table through targeted capex

investments, improving the quality and rent level of the

portfolio

1

High regular rent increases implemented up to the

legal limits. Effects of the 2015 Mietspiegel will drive

growth over the year 2016

Rent increases to market levels through tenant

fluctuation without capex & reducing portfolio vacancy

by active marketing with location specific approach

2

3

Regular rent increases

From fluctuation w/o CAPEX and vacancy reduction

From modernization CAPEX

Maintenance & CAPEX (€ / sqm)

2014 2015 Avg.

2012-2015

H1 2016

Maintenance 6.5 6.3 5.7 6.8

Capitalized

maintenance 7.6 4.6 5.6 4.9

Modernization CAPEX 13.2 9.9 10.0 14.9

Total 27.2 20.8 21.3 26.7

1 Includes vacancy changes

Avg.:

6.5%

Smart targeted CAPEX investments combined with active asset management are the key drivers of our successful business model

7

• Maintenance & Modernization CAPEX started to normalize in

Q2 as expected, but are still elevated due to the high level in

Q1 (€ 8.7 Maintenance / € 16.1 Modernization CAPEX)

• Main driver was the high ratio of newly acquired units over

the last 12 months and the exceptional high number of units

modernized

• We expect maintenance and CAPEX levels over the year to

come back to our long term averages

Page 9: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

Reduction to an overall vacancy rate of 2.8% demonstrates operational performance

• High completion rate of modernization works and subsequent

letting results in a decrease of vacancy by 110bps. More than

570 residential units have been completed during H1 of which

330 units are out of the Carlos portfolio

• Success of the privatization program results in further decrease

of vacancy by 20bps.

• Overall reduction in vacancy by 120bps in the first half 2016

Vacancy split¹

1 Based on physical vacancy, residential only. Commercial vacancy rate Q2 2016 4.9% vs. Q4 2015 5.5%.

0.7% 0.4% 0.4%

0.4%

0.4% 0.6%

0.9% 1.0% 0.8%

1.8% 1.6%

0.7%

0.5%

0.5%

0.3%

4.3%

4.0%

2.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Q2 2015 Q4 2015 Q2 2016

Marketing Marketing (Carlos) Modernization

Modernization (Carlos) Privatization

8

Significant vacancy reduction of 120bps delivers additional growth

Page 10: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

Integration and improvement ongoing

Carlos Portfolio well on track with 3.5% LFL rental growth

Turn-around of Carlos on track with 570 units modernized and occupancy increasing by 1.0%

Key metrics (per July, 2016)

Location Spandau & Reinickendorf

Acquisition price € 376m

Current fair value € 448m/ €1,124 per sqm

Number of residential units 5,748

Avg. rent / sqm / month:

– At acquisition € 5.19

– Current average € 5.31

– Avg. new lettings € 5.93

Rent restricted units 48%

Occupancy rate improving above pre-acquisition levels

9

New letting volumes demonstrate operational improvements

Investment program on track

95.9%

96.9%

92.0%

94.0%

96.0%

98.0%

Apr

15

May

15

Jun

15

Jul

15

Aug

15

Sep

15

Oct

15

Nov

15

Dec

15

Jan

16

Feb

16

Mar

16

Apr

16

May

16

June

16

July

16

0 5

16

27

34

26

20

31

42

35

41

53

73

42

60

53

0

10

20

30

40

50

60

70

80

Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 June

16

July 16

No. of New lettings Average No. of cancellations

0 2 2 24 9

30

40

60

23

45

116

39

50

38 39

56

573

0

100

200

300

400

500

600

700

0

20

40

60

80

100

120

140

Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 June

16

July 16

No. of finished Units (resi) Finished Units accumulated

Page 11: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

• 57 units sold in H1 2016 for gross proceeds of € 10.6m,

generating close to 64% value uplift compared to

average book value of Central Locations

• We target to sell around 100 units in 2016 as we expect

further price increases for condominiums especially in

inner city locations and try to maximize profits not sales

volume

Privatization results and outlook

Privatization activities on target

57 units sold in H1 2016 for an average sales price of € 3,041 per sqm

3,041

1,857

0

500

1,000

1,500

2,000

2,500

3,000

Avg. Portfolio value

Central locations

30/06/16

Avg. sales price

H1 2016

€/sqm

Sales profit – Avg. sales price vs. portfolio value

10

386

1,764

1,756 3,906

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Privatization

portfolio

Medium term

potential

Long term

potential

Total

Units

Privatization potential

+64%

Page 12: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

03 FINANCIAL

OVERVIEW

Page 13: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

• Total portfolio value of € 1,740m investment as at 30 June, 2016

includes investment properties (€ 1,703m) and trading properties

(€ 37m). The fair value of the portfolio was assessed by CBRE as of

June 30, 2016 resulting in valuation gains of € 127m and will be

updated again on December 31, 2016

• Around € 98m cash added via equity raising on April 21, 2016 while

more than € 126m cash has been deployed for acquisitions in H1 2016.

Remaining free cash was mostly deployed after the end of the period

for new acquisition. Refinancing of new acquisitions will provide

sufficient liquidity for further acquisitions of up to € 200m

• Interest bearing loans include € 798m loans from banks and a loan

from Harel Insurance in an amount of € 20m related to the WayPoint

portfolio. The increase in our interest-bearing loans results from loans

taken over with acquired assets and the refinance took place in Q2

• Our EPRA NAV per share is € 27.55 as of 30 June, 2016, an increase

of 14% since the start of the year

Overview of balance sheet

12

1

Comments

In €m June 30, 2016 Dec 31, 2015

(Unaudited) (Audited)

Investment properties 1,740 1,459

Other non-current assets 4 4

Non-current assets 1,744 1,463

Cash and cash equivalents 108 134

Other current assets 75 73

Current assets 183 207

Total assets 1,927 1,670

Interest bearing loans 818 785

Other liabilities 40 42

Deferred tax liabilities 68 48

total Liabilities 926 875

Total equity attributable to shareholders of the company

987 786

Non-controlling interests 14 9

Total Equity 1,001 795

Total shareholder’s equity and liabilities 1,927 1,670

EPRA NAV 1,061 844

No. of shares 38.5 35

EPRA NAV per share 27.55 24.10

1

1

3

4

2

1

2

3

4

Page 14: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

Total portfolio value of € 1.7 billion with further upside

13

Portfolio Valuation Central1 North East South West Total

Fair Value (€k)1 827 291 187 118 317 1,740

Discount rate (%) 4.6% 5.2% 4.7% 4.7% 5.2% 4.8%

Average in-place rent 6.32 5.58 6.55 6.12 5.31 5.92

CBRE market rent 7.62 6.39 7.26 7.31 6.13 6.92

Avg. new letting rent 9.90 6.25 8.61 8.62 6.13 7.68

Reversionary potential

57% 12% 31% 41% 15% 30%

Value per sqm (€)

Share of fair value (%)

Rent multipliers1

New letting rents imply further upside on current portfolio value

1 € 37m of fair value is attributable to condominiums

Central

locations

48%

North

17%

East

11%

South

7%

West

17%

23

.6x

19

.0x

21

.2x

22

.0x

18

.7x

21

.3x

19

.5x

16

.2x

18

.7x

18

.5x

15

.5x

17

.9x

15

.0x

16

.6x

15

.8x

15

.7x

15

.5x

16

.1x

Central locations North East South West Total

Current rent CBRE market rent New letting rent

N

W E

S

Spandau

Reinickendorf

Charlottenburg

-Wilmersdorf

Steglitz-

Zehlendorf

Mitte

Pankow

Lichten-

berg

Marzahn-

Hellersdorf

Treptow-

Köpenick Tempelhof-

Schöneberg

Friedrichshain-Kreuzberg

Central

Neukölln

Building locations:

Central Locations

North

East

South

West

1,857

1,269

1,163

1,711

1,642

1 Avg. new letting rents in North and West are negatively influenced by the high proportion of Carlos units let in Q2.

Like-for-like CBRE market rents are at similar levels as the avg. new letting rent with € 6.25 for North and € 6.12 for West

Page 15: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

Solid balance sheet with a targeted LTV of 45% to 50%

14

• Total debt of € 818m - primarily mortgage backed/secured

• Average cost of debt reduced to 1.97% as planned

• Almost all loans are fixed interest rate or hedged

• No near term maturities with avg. weighted maturity of c. 6 years

• LTV at the end of the quarter at 40.3%, increasing to around 45%

after closing transactions post the end of the quarter

• Refinancing of new acquisitions will provide sufficient liquidity for

further acquisitions of up to € 200m at the high end of our LTV target

range

• Target maturity for mortgage debt between 5 to 7 years allows to

optimize amortization requirements

• Marginal interest costs of around 1.1%

Average interest rate

Diversified funding profile with weighted average debt maturity of

approx. 6 years

Key financing figures and strategy

Solid financing structure supporting FFO with an LTV target of 45% to 50%

25 57

1 61

674

-

100

200

300

400

500

600

700

800

2017 2018 2019 2020 2021+

Bank debt (€m)

1.4% 3.2% 1.9%

1.9%

% Average interest rate

2.0%

2.3% 1.97%

December 31, 2015 June 30, 2016

Page 16: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

In € m H1 2016 Q2 2016 Year 2015

Income from rental activities 41.7 21.4 65.8

Cost of rental activities (7.5) (3.6) (11.4)

Net operating income 34.2 17.8 54.4

Overhead costs (4.5) (2.4) (5.9)

EBITDA from rental activities 29.7 15.3 48.5

EBITDA from rental activities margin (%) 76% 77% 78%

Net result from privatization sales 1.5 0.8 1.5

EBITDA total 31.2 16.1 50.0

Financial cost interest bearing loans (9.7) (4.8) (17.7)

Financial costs shareholder loans - - (5.8)

Other net financial costs (8.6) (8.0) (0.7)

IPO related expenses - - (0.4)

Depreciation & Amortization (0.1) (0.1) (0.3)

EBT 12.8 3.2 25.1

15

• Income from rental activities increased by 46% driven by like-for-like

rental growth of 5.2% and acquisitions. Quarter-on-quarter growth was

5%. Q2 reflects an annualized income from rental activities of € 86

million

Strong rental growth supported by our investment strategy

• EBITDA from rental activities increased by 41%. Quarter-on-quarter

growth was 6%. Q2 2016 results represent an annualized EBITDA of

€ 61 million. EBITDA-margin is improving quarter to quarter as expected

over the year

• Financing relies predominately on bank financing provided by German

mortgage banks. The average interest rate amounts to 1.97%

• Interest on loans from ADO Group which were all converted into equity at

July 23, 2015 upon the completion of the IPO

• Q2 2016 includes mostly one-off refinancing costs

• One-off expenses related to the IPO that were classified to the P&L in

the financial statements

Comments

Overview of profit and loss

1

1

3

4

3

2

4

In % LTM June

30, 2016

Jan 1 – Dec

31, 2015

CAPEX 2.9% 3.8%

Fluctuation 1.6% 2.7%

Regular Increases 0.7% 0.8%

Total 5.2% 7.3%

2

5

5

6

6

Page 17: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

In € m H1 2016 Q2 2016 Year 2015

EBITDA from rental activities 29.7 15.3 48.5

Net cash interest (9.7) (4.8) (17.7)

Current income taxes (0.2) (0.0) (0.1)

FFO1 (from rental activities) 19.9 10.5 30.7

Maintenance capital expenditures (3.8) (1.4) (4.1)

AFFO from rental activities 16.1 9.1 26.6

Net profit from privatizations 1.5 0.8 1.5

FFO2 (incl. disposal results) 21.4 11.3 32.2

FFO 1 € per share 0.55 0.28 1.04

FFO2 € per share 0.59 0.30 1.09

Avg. number of shares 36.334 37.683 35.000

• EBITDA from rental activities increased by 41% due to our strong 5.2%

like-for-like rental growth and successful acquisitions. Quarter-on-quarter

growth was 6%. The annualized Q2 figures represent an EBITDA of more

than € 61 million

• FFO1 has increased by 51% due to our operational performance and the

relative improvement of our net cash interest expenses which only

increased by 22%. Quarter-on-quarter growth was 11%, significantly

outperforming our EBITDA growth

• Maintenance and CAPEX levels are still elevated due to the high

proportion of newly acquired units during the last 12 months and the high

rate of modernization projects finalized. Growth in the absolute number

results from the growth in the portfolio

• Our privatization business started at the end of 2014. In H1 2016 we sold

57 units for a gross profit of € 1.5 million, on track with our 2016 target.

The comparably low profit of results from the fact that most of these units

have already been acquired as condominiums and have therefore been

carried at higher values in our books compared to assets which have

been acquired as rental only properties. The average sales price of

€ 3,041 per sqm compares to an average portfolio value for Central

Locations, which we see as most comparable, of € 1,857 per sqm

• The FFO per share in Q2 was slightly negatively effected by the additional

cash raised in April 2016 which got invested after the end of the reporting

period

16

1

1

2

Comments

3

3

In € / per sqm Jan 1 – Jun

30, 2016 (*)

Jan 1 –

Dec 31, 2015

Maintenance 6.8 6.3

Capitalized maintenance 4.9 4.6

Modernization CAPEX 14.9 9.9

Total 26.7 20.8

3

Overview of FFO

Maintenance and CAPEX

2

(*) Annualized figures based on total lettable area.

4

4

5

5

Page 18: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

17

Guidance

We maintain our FFO1 run-rate guidance of at least € 50 million by the end of year 2016, but

see upside potential after further acquisitions and refinancing

We expect to privatize around 100 units p.a.

We anticipate like-for-like rental growth going forward to be at least 5% which should positively

impact our portfolio value, NAV and NAV per share 1

2

3

We target a dividend pay-out ratio of up to 50% of FFO1

4

5

Average cost of debt below 2% with a LTV in the range of 45% to 50%

Milastr.

Prenzlauer Berg

Lübecker Str.

Mitte

Horstweg

Charlottenburg

Transvaalstr.

Wedding

Seelchower Str.

Neukölln

Kalischer Str.

Wilmersdorf

Sommerstr.

Reinickendorf

Page 19: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

04 CONTACT

INFORMATION ADO Properties

20 Rue Eugene Ruppert

L-2453 Luxemburg City

Luxemburg

Investor Relations

[email protected]

+352 26 493 412

Page 20: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147

19

Financial Calendar 2016/2017

Publication Q3/2016 financial report Nov 17, 2016

Publication 2016 annual financial report Mar 22, 2017

Annual General Meeting May 02, 2017

Publication Q3/2017 financial report Nov 15, 2017

Publication Q2/2017 financial report Aug 17, 2017

Publication Q1/2017 financial report May 17, 2017

Leibnizstr.

Charlottenburg

Bötzowstr.

Pankow

Ahornstr.

Steglitz

Gutenbergstr.

Köpenick

Putbusser Str.

Wedding

Schichauweg

Tempelhof

Page 21: HALF YEAR FINANCIAL RESULTS 2016 AUGUST 17, …ado.properties/download/companies/adoproperties/...letting results in a decrease of vacancy by 110bps. More than 570 residential units

0/0/0

255, 255, 255

30/60/112

221/221/221

100/153/209

163/177/186

196/217/47

116/222/189

30/60/112

225/204/102

109/62/152

0/159/147