DGAP-News: ADO Properties S.A. / Key word(s): Final Results ADO Properties S.A. shows ongoing strong growth in 2016 22.03.2017 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ADO Properties S.A. shows ongoing strong growth in 2016 - Strong increase of income from rental activities (+36.5%) - EBITDA from rental activities (+30.7%) and FFO1 (+41.7%) - Significant annual like-for-like rental growth of 6.0% - Portfolio value increased to EUR 2.3 billion driven by acquisitions and valuation gains - Net Asset Value per share at EUR 36.08 as of 31 December 2016 (31 December 2015: EUR 24.10) - an increase of 50% - Dividend proposal for the business year 2016 of EUR 0.45 per share (2015: EUR 0.35 per share) - Positive outlook for the 2017 financial year and expected FFO 1 run rate in 2017 around EUR 60 million after investing the current cash position Berlin, 22 March 2017 - ADO Properties S.A., the only Prime Standard listed residential real estate company solely focused on the city of Berlin, reports a strong growth during the financial year 2016. This is reflected in the annual financial report for the full year 2016 published today. Further improvements of operational key figures The income from rental activities of ADO Properties increased in 2016 by 36.5% to EUR 89.8 million (2015: EUR 65.8 million) due to the strong 6.0% like-for-like rental growth and further expansion of the residential portfolio. The EBITDA from rental activities rose by 30.7% from EUR 48.5 million in 2015 to EUR 63.4 million in the full year 2016. The FFO1 (without profit from disposals) has increased by 41.7% up to EUR 43.5 million (2015: EUR 30.7 million) equivalent to an FFO1 of EUR 1.11 per share (2015: EUR 1.04 per share) due to the strong operational performance and the relative improvement of interest expenses. The average in-place rent of the residential portfolio rose to EUR 6.11 per sqm per month at the end of the fourth quarter 2016 (31 December 2015: EUR 5.82). The vacancy rate for the residential portfolio was reduced again by the company from 4.0% as of 31 December 2015 to 2.5% as of 31 December 2016. Two successful capital raises and further portfolio expansion Two successful capital increases generating total net proceeds of EUR 293 million cleared the way for further acquisitions, particularly in Berlin's attractive inner-city locations. Consequently ADO Properties' portfolio has grown by EUR 824 million up to EUR 2,326 million as of 31 December 2016. It comprised 18,700 units at the end of the reporting period, of which are 17,701 residential units (31. December 2015: 14,856 units). The Net Asset Value of the portfolio amounted to EUR 1,591 million or EUR 36.08 per share as of 31 December 2016. Conservative financial strategy ADO Properties' financial structure remains very conservative with an LTV of 31.4% by the end of the reporting period and an average interest rate of 2.1%. Almost all loans have fixed interest rates or are hedged. The loans average maturity is approximately 5.3 years. ADO Properties will continue with this conservative strategy targets and LTV of around 45% after executing further acquisitions. Expected FFO 1 run rate in 2017 around EUR 60 million "Our two successful capital raises in 2016 and the considerable number of acquisitions as well as the improvements of our operational key figures show very well our capability to fulfill the expectations of our investors. With our fully integrated management platform and results-driven corporate culture, our company is well prepared to deliver further attractive returns to our investors", says Rabin Savion, CEO of ADO Properties. "We expect further growth and value increases for ADO Properties. We expect our 2017 year-end FFO 1 run rate to be at least EUR 60 million after investing our cash position of around EUR 150 million. For the business year 2016 we have recommended a dividend of EUR 0.45 per share, a close to 30% increase compared to the previous year. The fundamentals of Berlin support our outlook. They are solid and getting stronger each year. Berlin continues to attract newcomers of all ages who appreciate the city's cosmopolitan culture. The resulting population growth drives an ongoing housing shortage in Berlin which will remain for many years to come. Therefore the macro economic outlook for residential investments stays very positive." Key Figures 31.12.16 31.12.15 Difference Difference absolute percentage Income from rental 89.8 65.8 24.0 36.5% activities, in MEUR EBITDA from rental 63.4 48.5 14.9 30.7% activities, in MEUR EBITDA, in MEUR 66.6 50.0 16.6 33.2% FFO 1 from rental 43.5 30.7 12.8 41.7% activities in MEUR FFO 1 per share, EUR 1.11 1.04 0.07 6.7% FFO 2 (incl. disposal 46.7 32.2 14.5 45.0% results), in MEUR EPRA NAV, in MEUR 1,591 844 747 88.5% EPRA NAV per share, 36.08 24.10 EUR LTV, percent 31.4% 43.6% Residential units 17,701 14,856 2,845 19.2% Portfolio value, MEUR 2,326 1,502 824 54.9% In-place-rent 6.11 5.82 residential EUR/sqm/month Vacancy rate 2.5% 4.0% residential percent Maintenance and 28.10 20.80 CAPEX, EUR per sqm About ADO Properties ADO Properties is a pure-play, Berlin-based residential real estate company with 18,700 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. --------------------------------------------------------------------------- 22.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: ADO Properties S.A. 20 rue Eugène Ruppert L-2453 Luxembourg Grand Duchy of Luxembourg Phone: +352 26 493 412 Fax: +352 27 860 722 E-mail: [email protected] Internet: www.ado.immo ISIN: LU1250154413 WKN: A14U78 Indices: SDAX, FTSE EPRA/NAREIT Global Index, FTSE EPRA/NAREIT Developed Europe Index, FTSE EPRA/NAREIT Germany Index Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 556589 22.03.2017