Adler Group (ADJ) Q1 2025 earnings summary

Executive summary

• Major disposals of BCP and NRW portfolios completed, shifting focus to Berlin residential assets and reducing leverage, with the core portfolio now at 17,908 units.

• Q1 2025 results aligned with strategy, showing no major surprises, and a comprehensive cost-cutting program including a headcount reduction of 150 was launched.

• Net rental income for Q1 2025 was €36.7m, with adjusted EBITDA Rental at €21m and cash position rising to €293m.

• LTV improved to 67.9% from 72.7% at year-end 2024, reflecting deleveraging and extraordinary deconsolidation effects.

• No remaining 2025 debt maturities; refinancing and prolongations completed, with 2026 maturities addressed.

Financial highlights

• Net rental income fell to €36.7m in Q1 2025 from €51.1m in Q1 2024, mainly due to asset disposals.

• Adjusted EBITDA from rental activities was €21.2m; total adjusted EBITDA was slightly negative due to minimal development segment earnings.

• Cash position increased to €293m, up nearly €50m from year-end, mainly from disposals and after debt repayments.

• Total equity at €1.2bn; total nominal interest-bearing debt at €3.8bn as of March 2025.

• Weighted average cost of debt dropped to 6.4%, down 200 basis points from December 2024, with a weighted average maturity of 3.9 years.

Outlook and guidance

• Full-year 2025 net rental income guidance confirmed at €127–135m, reflecting the smaller portfolio post-disposals.

• Like-for-like rental growth of 1.9% in Q1 is expected to accelerate in Q2, targeting an annual rental growth of 3%.

• No FFO 1 guidance provided due to focus on liquidity and deleveraging.

• No remaining 2025 debt maturities; focus is on refinancing the €300m bond maturing in April 2026, with completion expected in June.

• Focus remains on disposing of upfront sale development projects and completing forward sale projects by end of 2026.