Adler Group (ADJ) Q1 2026 earnings summary

Executive summary

• Multiple major asset disposals in Q1 2026, including Quartier Kaiserlei, Benrather Gärten, Holsten Quartier, and Berlin properties, generated significant proceeds used for debt reduction and improved cash position.

• Berlin-anchored yielding portfolio maintained strong operational performance with 3.6% like-for-like rental growth and low vacancy.

• Core residential rental portfolio now fully focused on Berlin after the sale of the NRW-based portfolio in February 2025, with 17,434–17,483 units as of March 2026.

• Cash position improved to EUR 301 million at quarter end, supported by disposal inflows and debt repayments.

• No portfolio revaluation conducted in Q1 2026; revaluations are semi-annual or as needed.

Financial highlights

• Net rental income for Q1 2026 was EUR 31.4 million, down year-over-year due to disposals, but on track for full-year guidance of EUR 124–129 million.

• Adjusted EBITDA from rental activities reached EUR 20.6–21 million; adjusted total EBITDA was EUR 14 million.

• FFO 1 for Q1 2026 was negative at EUR -17.7 to -18 million, mainly due to high net interest expenses.

• Net loss for Q1 2026 was EUR -72.1 million, mainly due to lower rental income from disposals and high finance costs.

• Revenue for Q1 2026 was EUR 236.6 million, up from EUR 57.4 million in Q1 2025, mainly due to property sales.

Outlook and guidance

• Full-year 2026 net rental income guidance confirmed at EUR 124–129 million.

• Focus remains on liquidity management, deleveraging, and further asset disposals.

• No capital market debt maturities before end of 2028.

• No FFO 1 guidance provided due to ongoing restructuring and liquidity focus.

• Rental growth above 3% expected for year-end 2026, supported by new Mietspiegel and inflation.