Hamburg, 1 September 2015. ADLER Real Estate AG, Frankfurt/M., (ISIN DE0005008007) fully consolidated Westgrund AG, Berlin in the first half of 2015 increasing ADLER's total assets by c. 85% up from c. EUR 1.4 billion in FY 2014 to c. EUR 2.6 billion. The corresponding gross rental income including WESTGRUND is expected to reach c. EUR 196 million by year end. Westgrund AG was taken over in the first half of the year and consolidated for the first time on 30 June 2015. H1 results reflect the first time consolidation but not the corresponding rental income collected during the first six months of the year. The corresponding 12 months gross rental income run rate is expected to reach c. EUR 232 million.

The positive developments in the market and more significantly an increase in earnings during the first half of 2015, led to a considerable increase in the net asset value of ADLER. The corresponding EPRA NAV per share increased by c. 31% from EUR 10.74 to EUR 14.03 from the end of 2014 to the end of June 2015. According to Axel Harloff CEO of ADLER Real Estate AG "Given the current trend in price developments in Germany, we see a further potential for value appreciation in the second half of the fiscal year".

Due to the financing structure, a positive impact on the balance sheet is also expected to be recorded as a result of the 24.79 percent strategic investment in conwert Immobilien Invest SE, Vienna which took place in August 2015. conwert has already reported an increase in its earnings in the first half of 2015 and according to management it is expected to make further improvements to their FFO I by c. 20 percent during the second half of the year.

ADLER will sharply increase its earnings in 2015 due to a significant growth in its property portfolio. Gross rental income ("GRI") rose in first half of 2015 to c. EUR 81.0 million (first half 2014: c. EUR 25.0 million) and is expected to reach at least EUR 196 million by the year end, representing a significant increase compared to the previous year (c. EUR 84 million). "We are now starting to reap the rewards of our extensive acquisition efforts," says Axel Harloff CEO. ADLER now has approximately 50,000 units, almost twice its holdings compared to the end of 2014.

EBITDA, adjusted for extraordinary- and one time effects- increased by a staggering 511% from c. EUR 8.05 million to c. EUR 49.16 million. ADLER also expects additional income from adjustments in rents in the portfolio in line with market trends as well as a better occupancy rate going forward. The occupancy rate alone rose during the second quarter by c.1 percentage point to c.89 percent. In addition to the rental income from the investment properties, additional income from residential privatisations, carried out by the subsidiary ACCENTRO, one of the leading residential privatisation companies in Germany, is likely to rise as well. The price of apartments has continued to rise sharply in Germany, increasing on average by c.5.3 percent in the period between mid-2014 to mid-2015, according to the analysis institute "F+B Forschung und Beratung". According to this data residential rents have increased by 2.9 percent in the same period. For ADLER, these price rises equate to a sustained appreciation in value.

Funds from Operation (FFO I) increased by more than 6 times from c. EUR 1.0 million in H1 2014 to c. EUR 6.3 million in H1 2015 and are expected to more than double to at least c. EUR 14.0 million by the year end. ADLER's FFO II guidance for FY 2015 is expected to reach at least c. EUR 40m in line with current analysts' expectations. This is predominantly due to the sharp rises in rental income as well as improved operating and financial efficiencies from the property portfolios. The operating performance, including sales activities ("FFO II"), reached a considerable EUR 32.9 million (previous half year: EUR 0.8 million) demonstrating the strong contribution of ACCENTRO to the group finances and the strategic value in exploiting the growing privatisation trends.

Despite the substantial growth and the successful issuance of a corporate bond amounting to EUR 330 million, ADLER was nonetheless able to improve on its capital structure. Its equity increased to c. EUR 580.4 million (end of 2014: EUR 311.2 million) as a result of the takeover of Westgrund AG and the related capital increase in kind. Notwithstanding the Group's sharp growth, the equity ratio rose to 22.2 percent (end of 2014: 21.9 percent). The corresponding Loan to Value ratio (LTV), adjusted for convertible bonds remained roughly unchanged at c. 68.9% as at end of June 2015. The Company's WACD however, decreased significantly at the end of first half of 2015 to 4.15 percent down from 4.7 percent in line with management's plans. Management expects further improvement to its WACD, and targets a level of below 4 percent by year end and the LTV to decline further to c. 65 percent.

ADLER will finance its future growth by corresponding capital measures, targeting an LTV below 60%. For further details about H1 2015 results please refer to the respective half-yearly report and a company presentation of ADLER Real Estate AG on website www.adler-ag.com.

The Management Board

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