Adler Group (ADJ) Q2 2025 earnings summary

Executive summary

• Completed major disposals, including BCP and NRW portfolios, generating €219.3m and €422.5m in proceeds, with cash used for debt repayment and liquidity preservation.

• Core rental portfolio now focused on Berlin, with 17,610–17,772 units and strong like-for-like rental growth of 3.4% and low vacancy rates.

• Project development valuations declined by 15.5% due to rising construction costs and weak transaction markets.

• Landmark lease signed with Deloitte for Ostforum Leipzig, the largest commercial lease in Leipzig this year.

• Comprehensive refinancing and recapitalisation completed, extending debt maturities and improving liquidity.

Financial highlights

• Net rental income for H1 2025 was €68–68.2m, down year-over-year due to disposals; adjusted EBITDA Rental €40–40.5m; total adjusted EBITDA negative due to development losses.

• Group equity at €1.0bn; LTV at 72.1%; cash position stable at €285m.

• Net loss for H1 2025 was (€381–381.3m), improved from (€507–507.4m) in H1 2024.

• NOI margin from rental activities improved to 90.3% in H1 2025 from 86.8% in H1 2024.

• FFO 1 for H1 2025 was negative €28.8–29m, reflecting impact of disposals and development devaluations.

Outlook and guidance

• Net rental income for 2025 expected in the range of €127–135m, with rental growth target of ~3% per year reaffirmed.

• Continued focus on asset disposals, debt redemption, and liquidity preservation.

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