ADLER Group (ADJ) Q4 2025 Earnings Report

The call showed clear operational momentum in the Berlin yielding portfolio — steady disposals, successful partial deleveraging, positive like‑for‑like revaluations (+0.6% H2, +1% for 2025), solid rental growth (3.6% LFL), low vacancy (1.3%) and active liquidity/debt management (bond repaid, loan extended). However, the development business remains a drag (adjusted EBITDA negative, development valuations down -6.5% H2), the group still carries high absolute debt (EUR 3.7bn) and LTV increased to 76.3%, and there is ongoing financing and regulatory uncertainty. Overall, operational and strategic positives outweigh the challenges but key risks remain concentrated in the development segment and leverage profile.

Guidance for 2026: Adler expects net rental income of EUR 124–129 million, underpinned by continued rental growth with management confident of like‑for‑like rental growth north of 3% at year‑end 2026 (after 3.6% in 2025), average rent of EUR 8.61/sqm/month (Dec‑25) and a very low vacancy of ~1.3%; group GAV was ~EUR 4.0 billion (yielding portfolio EUR 3.5bn, development ~EUR 0.5bn), LTV stood at 76.3%, total nominal interest‑bearing debt was EUR 3.7bn with a weighted average cost of debt of 7% and average debt maturity ~3.4 years (97% of debt maturing in 2028+), there are no bond maturities until 2028 providing strategic flexibility, and management will continue disposals (disposal holdback basket ~EUR 245m almost full; 49 remaining non‑Berlin units) to reduce the first‑lien facility and return net proceeds (Karl cited ~EUR 125m, Thorsten referenced ~EUR 110m) while addressing remaining 2026 bank maturities.