ADO Properties sees doubling of FFO after acquisition spree

Four months after its stock exchange public listing, the Berlin-based housing investor ADO Properties presented its figures for the first nine months showing a doubling of funds from operations FFO to €22m after its recent acquisitions, and indicated that it had signed deals on a further €150m which would be concluded before year end.

The company, which invests exclusively in Berlin housing, has increased its average in-place rent per month to €5.75/sqm, reflecting an average annual rental growth of 6.5% on a like-for-like basis. The vacancy rate dropped 3%, like-for-like, and currently stands at 4%. The bottom line shows pre-tax earnings of €15.3m (Q1-3, 2014: €9.9mn).

According to CEO Rabin Savion, “We can confirm our FFO guidance of €30m for the financial year 2015. Including the new acquisitions we are expecting to close in 2015, we expect an annualised FFO run-rate of €39m… After our IPO we promised further growth of our portfolio and since then we have signed five acquisitions adding more than 1,200 units to our portfolio which will positively influence our results from next year.”

At the end of September, ADO Properties owned 14,600 apartments in the capital valued at €1.2bn, up from 6,600 at the end of 2014. The company's LTV ratio is 41.8%, and its net asset value is €20.54, while the share price is trading at about €24.70. (The company listed at €20.00 in July, generating€200m for the company). The Tel Aviv-listed Ado Group remains a 40.7% shareholder in the German group.