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Adler Real Estate

EdisonTV | Property | 24/03/2015

Executive Interview - Adler Real Estate AG

2014 saw considerable progress in Adler’s plans to increase the scale of its residential investment portfolio, funded in part by disposals of non-core real estate. In 2015, Adler has kept up the pace of development, including the completion of the acquisition of 6,750 units in Wilhelmshaven, followed by the pre-agreed bid for listed competitor, Westgrund AG. Assuming completion, the combined entity will have a portfolio of c 52,000 residential units, achieving the intermediate scale target that was planned to be reached by the end of 2016. Adler had targeted this level as being consistent with achieving operational and financing efficiency. The latter includes better access and terms in debt funding, and an increased equity market capitalisation to support improved liquidity and access to capital. With increasing earnings and cash flow potential, we would expect Adler to turn its attention to shareholder distributions and further gearing reduction, as well as further portfolio growth once Westgrund is integrated.
Preliminary figures show that in 2014, Adler increased the scale of its completed, income-generating portfolio from fewer than 8,000 units to c 24,000. The Wilhelmshaven assets were notarised at year end and have since completed. Gross rental income increased more than three times to c €84m, although the year-end run rate was higher still, even before the inclusion of the Wilhelmshaven assets. Fair value gains of c €133m were mostly generated in the first half, representing special situation portfolio acquisitions at below-market valuation levels. Non-core property asset sales of
c €70m contributed towards an increase from c €2m to c €57m in revenues from the sale of property (the balance reflecting investment asset disposals not taken through the P&L). Net profits increased to c €112m from €47m in 2013 and net equity reached €311m (including c €21m of equity raised), an equity ratio of 22%.
In addition to greater portfolio scale and earnings potential, Adler expects that a combination with Westgrund will generate c €20m of synergy over three years, lower the cost of debt and reduce LTV to c 67%. Adler estimates a pro forma EPRA NAV per share of c €14.60, with a market capitalisation likely to exceed €700m.

Executive Interview - Regional REIT

Executive Interview - Regional REIT

RGL has an active asset management strategy, built on detailed plans for each property and targeting a 10-15% pa return to shareholders, including a 7-8% pa dividend return on the IPO price of 100p. The existing portfolio assets are relatively high yielding (H116 net initial yield 7.1%), capable of supporting a fully covered 2016e dividend yield of 7.3%, and well-diversified by property, region and tenant. The asset manager, LSI, brings a well-resourced and dedicated team, with cross-cycle experience, essential to exploit the opportunity provided by significant lease breaks and expiries over the next three years to grow income and valuation.
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25/10/2016 | Regional REIT

Executive Interview - Secure Income REIT

Executive Interview - Secure Income REIT

Nick Leslau is the Chairman of Secure Income REIT’s investment advisor, Prestbury Investments, and has long experience in the UK commercial property sector. Here he discusses Secure Income’s unique portfolio and the highly predictable long-term returns it will generate. He also explains how the long leases are beneficial to tenants as well as Secure Income and covers the recent acquisition of 55 Travelodge hotels.
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19/10/2016 | Secure Income REIT

Executive Interview - Adler Real Estate AG

Executive Interview - Adler Real Estate AG

2014 saw considerable progress in Adler’s plans to increase the scale of its residential investment portfolio, funded in part by disposals of non-core real estate. In 2015, Adler has kept up the pace of development, including the completion of the acquisition of 6,750 units in Wilhelmshaven, followed by the pre-agreed bid for listed competitor, Westgrund AG. Assuming completion, the combined entity will have a portfolio of c 52,000 residential units, achieving the intermediate scale target that was planned to be reached by the end of 2016. Adler had targeted this level as being consistent with achieving operational and financing efficiency. The latter includes better access and terms in debt funding, and an increased equity market capitalisation to support improved liquidity and access to capital. With increasing earnings and cash flow potential, we would expect Adler to turn its attention to shareholder distributions and further gearing reduction, as well as further portfolio growth once Westgrund is integrated. Preliminary figures show that in 2014, Adler increased the scale of its completed, income-generating portfolio from fewer than 8,000 units to c 24,000. The Wilhelmshaven assets were notarised at year end and have since completed. Gross rental income increased more than three times to c €84m, although the year-end run rate was higher still, even before the inclusion of the Wilhelmshaven assets. Fair value gains of c €133m were mostly generated in the first half, representing special situation portfolio acquisitions at below-market valuation levels. Non-core property asset sales of c €70m contributed towards an increase from c €2m to c €57m in revenues from the sale of property (the balance reflecting investment asset disposals not taken through the P&L). Net profits increased to c €112m from €47m in 2013 and net equity reached €311m (including c €21m of equity raised), an equity ratio of 22%. In addition to greater portfolio scale and earnings potential, Adler expects that a combination with Westgrund will generate c €20m of synergy over three years, lower the cost of debt and reduce LTV to c 67%. Adler estimates a pro forma EPRA NAV per share of c €14.60, with a market capitalisation likely to exceed €700m.
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24/03/2015 | Adler Real Estate