© Reuters LUXEMBOURG (dpa-AFX) – As per its own estimates, the hard-hit Adler Group (ETR 🙂 performed strongly in day to day business in the first quarter. Net rental income fell about 16 percent to 71.1 million euros compared to the same period last year, the company announced Monday evening based on preliminary figures. The operating result (FFO1) was €29.7 million, eight percent lower than the previous year. Adler attributed the declines primarily to the sale of a real estate portfolio. For example, the average rent rose 2.1 percent to 7.46 euros per square metre.
Thanks to real estate sales, liquidity increased by more than 200 million euros to reach 760 million euros at the end of the quarter. However, the bottom line was that the numbers in the first quarter were still low due to higher other expenses: the net loss attributable to owners was €2 million after a profit of €83.2 million last year. Management confirmed the forecast for the year. The net rental income should be between 203 and 212 million euros, and the operating result is in the range between 73 and 76 million euros. Adler’s stock, which has recently come under heavy pressure, is up nearly nine percent after the trading day on the Tradegate trading platform compared to Xetra’s closing.
Financial regulator Bafin is currently examining Adler’s books. The agency stepped in after the real estate company first came under fire from short-term seller Fraser Bering in October. This and his research service Viceroy raised serious allegations against Adler, which included the appraisal of real estate projects. The company has long denied the allegations. At the end of April, Adler presented figures for 2021 despite the refusal to believe the auditors of KPMG – billions were incurred due to high consumption. The Adler share was last listed at less than 5 euros – at the beginning of 2021 it cost almost 30 euros at the top.
Currently the most important shareholder in Adler is Vonovia (ETR:) the largest residential real estate group in Germany, which owns about 20.5 percent of Adler’s shares.