Adler Group S.A.

Net rental income was EUR 132 million, and management said 2025 net rental income was within guidance of EUR 127 million to EUR 135 million. Adjusted EBITDA from rental activities was EUR 72 million, while adjusted EBITDA total was negative because the Development segment did not contribute positive earnings. The group’s equity position was EUR 0.9 billion, LTV was 76.3%, cash was EUR 214 million in the CEO’s remarks and EUR 240 million in the CFO’s cash update, and total nominal interest-bearing debt remained EUR 3.7 billion. On valuations, yielding assets were up 0.6% like-for-like in H2 2025 and 1% for 2025, while development assets were down 6.5% in H2 2025. For 2026, management guided net rental income to EUR 124 million to EUR 129 million.

Karl Reinitzhuber framed the quarter as another step in Adler’s simplification and deleveraging strategy, emphasizing that development-asset disposals are progressing and the organization is being adjusted to a smaller business. He highlighted stabilization in the German residential market, especially for yielding assets in Berlin, while cautioning that no material price uplift is expected for remaining development projects. He also noted uncertainty around interest rates and broader geopolitics, and said the expropriation debate in Berlin is a growing concern that the company is closely monitoring.

Thorsten Arsan focused on balance-sheet cleanup and maturity management. He said total GAV was EUR 4 billion at year-end 2025, down from EUR 4.2 billion in September, mainly because of project closings and a EUR 36 million hit from the 6.5% development-asset devaluation; the weighted average cost of debt fell 0.1 percentage points to 7%, and average debt maturity is around 3.4 years. He also said the company repaid EUR 6 million in Q4 2025, EUR 51 million in Q1 2026, and EUR 50 million of the Adler Real Estate bond due in April 2026, with EUR 80 million of 2026 bank maturities still in discussion but expected to be extended, while 97% of debt now matures in 2028 or later.

There were no analyst questions on the call, so management did not have to address any live Q&A concerns. The main items they proactively clarified were the continued use of disposal proceeds to reduce the first-lien new money facility, the repayment of the remaining 2026 bond, and the progress on extending 2026 and 2027 bank maturities. Management also flagged that the board, advised by Evercore, is reviewing strategic options for the Berlin residential portfolio and related financing structures.