ADLER Real Estate AG: New leadership team to drive growth and performance

ADLER Real Estate AG: New leadership team to drive growth and performance

- Tomas de Vargas Machuca (Chair of the Executive Committee and acting CFO) and Maximilian Rienecker (Head of Corporate Finance and Strategy) were appointed Co-CEOs with immediate effect on December 22 2017.

- Sven Frank to remain Chief Operating Officer (COO).

- Operating performance to be significantly enhanced following the successful internalisation of property management capabilities with focus on digitalization.

Berlin, 27^th December - The Supervisory Board of ADLER Real Estate AG, Berlin, appointed Tomas de Vargas Machuca and Maximilian Rienecker to the Management Board as Co-CEOs as of December 22^nd 2017.

Tomas de Vargas Machuca has been the Chairman of the Executive Committee and acting CFO of the Company since 2013. He has successfully overseen the development of the Company's capital markets activities and capital structure reducing the Company's LTV (from more than c.70% as at FY13 to a current c.60%), its WACD (from c.4.7% as at FY13 to a current 2.7%) as well as generating an FFO as at FY13 of EUR -4.5 million to a current EUR c.40 million.

"We have worked relentlessly since 2013 to grow ADLER from owning just a few apartments to our current 50,000+ units' portfolio. It wasn't easy to grow so significantly whilst simultaneously reducing our LTV and WACD as well as other metrics and indicators such as FFO. We were able to do so by taking advantage of the favourable macroeconomic backdrop and the general appetite for German residential real estate both on the debt and the equity side." said Tomas de Vargas Machuca.

"We will carry on improving the Company's key metrics in line with what we have been currently reported and guided. Our successful bond issuance of EUR800m with a coupon of 1.73% and our vastly improved rating to BB/Positive outlook are key indicators of the Company's improvements to date and its plan to reach IG in 2019 at the latest. We also grew our property portfolio by c.8% in 2017 and are committed carry on growing the Company by way of selective acquisitions using the cash we have from the successful sale of ACCENTRO earlier this year. I am delighted to take up this tremendous opportunity in becoming Co-CEO together with Maximilian Rienecker, whom I have personally known for years and who has been instrumental for the Company since joining as Head of Corporate Finance & Strategy earlier this year.

"We have made the relevant investments in the different areas of the Company in order to significantly accelerate the Company's operating performance following our rapid growth in recent years." said Maximilian Rienecker and adds: "Through the increased focus on digitalization of the value chain we will create intelligent networks that will enable ADLER to grow efficiently and realize hidden reserves to the maximum benefit of all stakeholders. Not many German residential real estate companies have such a straight forward and exciting prospect."

Sven-Christian Frank (COO) who joined ADLER as Head of Asset Management in September 2015 and was appointed to the Management Board in June 2016 said "Our new internal property management capabilities will allow us to increase rents and reduce vacancies in the short to medium term, thus aligning ADLER's property management capabilities with the industry's top performers. We invested considerable time internalising property management in 2017 so we could perform to our maximum potential in the years to come as our assets become more and more appreciated by tenants in our focus regions. I look forward to continue working with Tomas and Maximilian and making ADLER Real Estate the success it can be."

For enquiries, please contact:

Dr Rolf-Dieter Grass
Head of Corporate Communication
ADLER Real Estate AG
Telephone: +49 (30) 2000 914 29
r.grass@adler-ag.com