ADLER Real Estate AG: Portfolio acquisition with 2,500 units

ADLER grows further: Portfolio acquisition with 2,500 units

- Portfolio located predominantly in strongly growing locations

- More than 60% in North Rhine-Westphalia

- Vacancy rate of 5.95%

- Net annual rental income approximately EUR 9 million

Berlin, 12. September 2017 - ADLER Real Estate AG yesterday acquired a portfolio of 2,505 rental units primarily in strongly growing locations. Approximately 60% of the 2,453 apartments and 52 commercial units are located in North Rhine Westphalia with a concentration on the Ruhr and East Westphalia. 15% of the the units in the portfolio are located in Southern Lower Saxony and in Bremen respectively and almost 10% in the Schleswig-Holstein catchment area of Hamburg. Arndt Krienen, Chairman of the ADLER Real Estate AG Management Board, comments: "The new portfolio strengthens us where we are already comparatively strong, in the West and North of Germany. In North Rhine Westphalia, we now have nearly 11,000 rental units, in Lower Saxony nearly 18,000 rental units. What is more, the new acquisition is in line with our strategic objective of offering affordable housing in or at the edge of urban conurbations. And all of the units can be integrated easily into our existing property and facility management structures. The resulting economies of scale will thus facilitate cost-efficient administration of the properties."

Rental income from the newly acquired portfolio total a good EUR 9 million on an annual basis which will first be received in the fourth quarter and will only then impact the income statement.

The newly acquired portfolio has a vacancy rate close to 6%.

With this acquisition, ADLER Real Estate AG is continuing its growth strategy after a period of internal optimisation. Krienen: "After the consolidation of the group structures last year, we again targeted growth for 2017. And we succeeded. Overall, including the smaller acquisitions made in the first half of the year, we have increased our property portfolio by a good 7% this year." "What is more", Krienen continued, "we are achieving a rental return over 6% and a positive cash flow directly after the acquisition, which is also in line with our strategic objectives. In addition, we see potential for rent increases at many locations and also expect to be able to further reduce the existing vacancy levels. All of this makes the acquisition extremely attractive for us. The acquisition will thus not only enlarge the existing portfolio, it will also have a positive impact on net rental income, FFO I and WACD."

The parties involved in the transaction agreed on confidentiality in respect to the purchase price and further details of the transaction.

Your contact for enquires:

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