Adler - comment

The Berlin portfolio - the yielding assets to which Adler has been reduced - has seen its first value write-up in H224. This is a significant turnaround for Adler. The company has guided a much-reduced NRI figure for 2025, which is arithmetically understandable. However, the cost reduction that has to go along with the downsizing is less quantifiable, and management naturally did not make any disclosures. The company aims to sell all its development assets to German developers by 2026, a statement we find both confident and regrettable, given that we are at the bottom of the market. Management signalled twice that it intends to tap the new 1L to refi the 2026 ARE bonds this summer.