ADO Properties : S.A. again improves financial key figures and enlarges its portfolio during the first nine months 2017

ADO Properties S.A. again improves financial key figures and enlarges its portfolio during the first nine months 2017

• Income from rental activities +21% due to further acquisitions and
  solid like-for-like rental growth
• EBITDA from rental activities +21% and FFO1 +27%
• 1,100 units integrated into the portfolio in Q3 2017
• Further 1,613 units acquired during Q3
• Management board confirms the positive outlook and raises the prognosis for the FFO1 run-rate up to EUR 64 million after deploying the company's cash position

Berlin, 15 November 2017 - ADO Properties S.A., the only Prime Standard listed residential real estate company solely focused on Berlin, once more improved its financial key figures during the first nine months 2017 and enlarged its portfolio by further acquisitions. This shows the nine-months financial report published today.

Key figures reflecting the company's steady growth
The income from rental activities of ADO Properties rose by 21% to EUR 78.7 million (9M 2016: EUR 65.2 million) due to the strong 4.6% like-for-like rental growth as well as due to new acquisitions during the reporting period. The EBITDA from rental activities increased also by 21% to EUR 55.9 million (9M 2016: EUR 46.4 million).

The FFO1 (from rental activities) increased by 27.5% up to EUR 40.2 million (9M 2016: EUR 31.5 million) equivalent to an FFO1 of EUR 0.91 per share (9M 2016: EUR 0.84 per share). Like in the previous quarters, the strong operational performance and the relative improvement of interest expenses were the main drivers of the FFO growth.

The average in-place rent of the residential portfolio increased to EUR 6.37 per sqm per month at the end of the first nine months 2017 (31 December 2016: EUR 6.11). The vacancy rate for the residential portfolio was 3.3% as of 30 September 2017, an increase by 0.6% compared to the previous quarter which was caused by high volume of acquisitions in the quarter.

Further portfolio expansion
ADO Properties' portfolio comprises 20,224 units at the end of the reporting period, of which are 19,053 residential units. The portfolio is valued at EUR 2,782 million as of 30 September 2017. The Net Asset Value of the portfolio amounted to EUR 1,742 million or EUR 39.51 per share as of 30 September 2017.

Conservative financial strategy
ADO Properties' financial structure remains conservative with a solid investment grade rating of Baa2 and a stable outlook. This provides the company a positive acceptance at the capital market and a good access to financing opportunities. In July 2017 ADO Properties placed its inaugural EUR 400 million corporate bond, rising additional liquidity for further acquisitions. The LTV was at 38.5% (42.7% pro forma for the signed acquisitions) by the end of the reporting period while the average interest rate of the debt portfolio decreased to 1.8% (31 December 2016: 2.1%). The average maturity of the outstanding debts is approximately 5.5 years. Almost all loans have a fixed interest rate or are hedged. ADO Properties intends to continue with its conservative strategy.

Positive Outlook for 2017 confirmed - FFO1 run-rate prognosis raised
In consideration of the company's successful development during the first nine months of the year 2017 the management board confirmed again its positive outlook and raised the prognosis for the FFO1 run-rate. "We are positive that ADO Properties will continue to increase its portfolio value, its NAV and its NAV per share by generating significant like-for-like rental growth in the future. We anticipate our like-for-like rental growth for 2017 to be approximately 5% and our FFO1 to be at a run-rate of at least EUR 64 million after deploying our cash position by the end of the year", says Rabin Savion, CEO of ADO Properties. "The demographic and socio-economic trends in Berlin remain positive and the residential demand continues to be high while supply is limited. This supply and demand imbalance provides excellent growth opportunities for long-term residential real estate investors like ADO Properties."

Definitions of our alternative performance measures like FFO1 or EPRA NAV are available in our latest financial report http://investors.ado.immo/websites/ado/English/4010/reports.html in the Financial Performance Indicators section.

About ADO Properties

ADO Properties is a pure-play, Berlin-based residential real estate company with more than 20,000 units. The Company has a fully integrated, scalable in-house platform with its own property management. Along with the responsibility for the condition of its apartments and buildings, ADO Properties also assumes responsibility towards people, employees, and neighborhoods. ADO Properties' portfolio is focused on central locations in Berlin and attractive suburban districts.