DGAP-News: ADLER Real Estate AG: Revised guidance following the successful completion of its tender offer to buy back EUR 200 million of the 2015/2020 4.75 percent coupon notes

ADLER Real Estate AG: Revised guidance following the successful completion of its tender offer to buy back EUR 200 million of the 2015/2020 4.75 percent coupon notes

- Successful completion of liabilities management strategy aimed at reducing refinance risk deriving from expected future interest rate increases

- FFO I Guidance 2018 increased by EUR 3.0 m or 5 percent to EUR 68 to 73 m

- Interest saving of EUR 4.8 m p.a.

- WACD guidance to be revised to 2.4 percent from 2.5 percent (- 4 percent)

Berlin, 30 April 2018 - ADER Real Estate AG on Friday last week successfully closed its EUR 200 million tender offer to buy back 2015/2020 4.75 percent coupon notes. The buyback was financed with the proceeds from the successful placement of the EUR 800 million bonds which settled two weeks ago. While the 2015/2020 notes had a coupon of 4.75 percent, the new bonds were placed with a blended coupon of 2.30 percent. The refinancing measure thus saves ADLER EUR 4.8 million in interest expenses on an annualized basis resulting into a circa 5 percent improvement to the 2018 FFO I guidance.

The buyback will also lead to an improvement in the average maturity of ADLER's total liabilities and will reduce the weighted average cost of debt to an expected 2.4 percent at the end of 2018 outperforming the initial 2.5 percent guidance for the year. With this buyback, ADLER has proactively managed up and coming debt redemptions and contributed to its strategy of de-risking, i.e. reducing the pricing risk of refinancing in the light of the expected increase in interest rates connected to the likely ending of the quantitative easing program of the European Central Bank later this year.

Tomas de Vargas Machuca, Co-CEO of ADLER Real Estate AG, said: "The recent success we had with placing our latest EUR 800 million longer maturities bond at an attractive coupon of 2.30 percent for a BB+ issue in a volatile environment is a testament Adler's significantly improved reputation in the capital markets. This liability management strategy strengthens key financial ratios which are at the core to improve our rating and reach Investment Grade as quickly as possible."

Maximilian Rienecker, Co-CEO of ADLER Real Estate AG, added: "With the successful closing of the tender offer we have already achieved most of our refinancing targets that we had set ourselves for the full financial year 2018."

Deutsche Bank AG London Branch, Goldman Sachs International, J.P. Morgan Securities plc and Morgan Stanley & Co. International plc were acting as Dealer Managers for the tender offer.

For enquiries, please contact:
Dr Rolf-Dieter Grass
Head of Corporate Communication
ADLER Real Estate AG
Telephone: +49 (30) 2000 914 29
r.grass@adler-ag.com