DGAP-News: Adler Real Estate AG

DGAP-News: Adler Real Estate AG: ADLER Real Estate AG: Subscription period for convertible bond 2016/2021

DGAP-News: ADLER Real Estate AG / Key word(s): Corporate Action ADLER Real Estate AG: ADLER Real Estate AG: Subscription period for convertible bond 2016/2021

18.07.2016 / 16:03 The issuer is solely responsible for the content of this announcement.

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ADLER Real Estate AG: Subscription period for convertible bond 2016/2021 ended

- Total placement volume of EUR 137.9 million

- c. 2.9 million subscription rights exercised by shareholders and existing convertible bondholders

- c. EUR 60 million proceeds from the issue used to execute pre-agreed refinancing of higher yielding debt

- c. EUR 15 million proceeds to be invested as Capex in existing core units

- Remaining funds to be used for acquisition of additional properties or further refinancing

Hamburg, 18 July 2016: ADLER Real Estate AG has successfully completed the placement of its convertible bond. Following the end of the subscription period, 10 million convertible bonds with a total placement volume of EUR 137.9 million were assigned to institutional and private investors. More than 90% of the subscriptions to the convertible bond came from European investors located outside Germany. C. 2.9 million subscription rights - equivalent to c. 445.000 convertible bonds - were exercised by shareholders and existing convertible bondholders.

"The fact that we were able to successfully place the convertible bond notwithstanding the uncertainty caused by the vote for Brexit is a testament that we have a good standing in the capital markets," said Arndt Krienen, Chairman of the Management Board of ADLER Real Estate AG. "With the use of proceeds from the convertible bond, we can now implement, as previously planned, the necessary measures in order to improve our profitability."

The measures predominantly relate to refinancing existing liabilities that have relatively high interest rates. Krienen commented: "We will use c. 60 million euro or almost half of the funds we have now received to pay off expensive liabilities. This will reduce our interest expenses by c. EUR 2.7 million per year, resulting in a corresponding increase in FFO. Furthermore, it will bring the weighted average cost of debt down to 3.85 percent. An agreement to refinance the higher interest bearing liabilities has already been signed with a creditor and will be executed today."

The measures to improve profitability also include the renovation of c. 1,500 apartments from the existing portfolio, which is to be implemented over the next 18 months. "We have identified vacant flats part of our core portfolio which, once renovated, can immediately be let out. The new lettings will generate an additional contribution to earnings and FFO that is expected to exceed EUR 5 million a year going forward," said Krienen, explaining the advantages of this plan.

ADLER is keeping the remaining funds available for general corporate purposes such as acquiring smaller portfolios of residential properties if suitable opportunities arise on the market or further refinancing activities.

"All in all, we are confident that with these measures - and the other measures included in the overall package - we will continue to improve our earnings and thus contribute to a further increase in the shareholder value of our company."

ADLER Real Estate AG: ADLER Real Estate AG, headquartered in Frankfurt and with its administrative headquarters in Hamburg, focuses on the acquisition, management and administration of residential property privatisation. ADLER invests primarily in portfolios with residential property companies in B-locations of major conurbations with units that achieve a positive cash flow and can demonstrate a sustained appreciation potential.

The ADLER subsidiary, ACCENTRO Real Estate AG, is one of the largest privatisers of residential property in Germany. ACCENTRO markets suitably targeted residential property from the holdings of the ADLER Group and procures condominiums for third party owner-occupiers and investors seeking to provide for their retirement.

In addition, ADLER holds a 23.5 percent stake (31 December 2015) in conwert Immobilien Invest SE, Vienna, one of the leading real estate companies in Austria. conwert holds more than 82 per percent of its property portfolio in Germany, many of them in A-cities.

With nearly 50,000 residential units, ADLER is among the top five largest German residential property companies listed in Germany. In addition to the listing on the FTSE EPRA / NAREIT Global Real Estate Index in London and the GRP General Index, shares in ADLER are also listed in the small cap index SDAX of the Deutschen Börse.

For inquiries please contact:

Dr. Rolf-Dieter Grass (Director) Alrike Allameh ADLER Real Estate AG Gänsemarkt 50 / 5. OG 20354 Hamburg Fon: +49 (0)30 2000 91 429 mailto: r.grass@adler-ag.com

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18.07.2016 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

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Language: English Company: ADLER Real Estate AG Herriotstr. 5 60528 Frankfurt am Main Germany Phone: +49 (0)40 - 29 8130-0 Fax: +49 (0)40 - 29 8130-99 E-mail: info@adler-ag.com Internet: www.adler-ag.com ISIN: DE0005008007, XS1211417362, DE000A1R1A42, DE000A11QF02 WKN: 500800, A14J3Z, A1R1A4, A11QF0 Indices: SDAX, GPR General Index Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service ---------------------------------------------------------------------------

483391 18.07.2016