Adler Group implemented a series of strategic measures in the first half of the 2026 financial year to strengthen the operational performance of its real estate portfolio. These initiatives primarily focus on the Berlin market and include improved direct communication with tenants, comprehensive digitisation of property management, and a significant reduction in processing times for repairs. Additionally, investments were made in climate-friendly heat supply. These advancements were facilitated by optimised IT infrastructure and established partnerships.
In the year to date 2026, net proceeds from sales amounting to EUR 201 million were realised. These funds were used to reduce total indebtedness, with a focus on partial repayment of the 1L New Money Facility. This consistent capital discipline underscores the company's efforts to further consolidate its financial stability.
Development in the Letting Business
Adler Group's letting business showed robust development in the first half of 2026. Like-for-like rental growth for the remaining units amounted to 3.0 per cent. Concurrently, the operational vacancy rate was reduced to a very low level of 0.9 per cent. The average residential rent increased from EUR 8.45 per square metre per month in June 2025 to EUR 8.68 per square metre per month in June 2026. As of 30 June 2026, the rental portfolio comprised a total of 17,465 units, of which 17,416 units are located in the Berlin area. The value of this rental portfolio is quantified at EUR 3.5 billion.
Net rental income for the first six months of 2026 saw a decrease from EUR 68 million in the previous year to EUR 63 million. This decline is largely attributable to the effects of portfolio disposals in 2025 and further sales in the first half of 2026. Despite these adjustments, Adler Group confirmed its forecast for net rental income for the full year 2026 within a range of EUR 124 to 129 million.
Earnings Situation and Capital Structure
The operating result improved significantly in the first six months of 2026 to minus EUR 6 million, compared to minus EUR 215 million in the prior-year period. This improvement resulted from lower depreciation and the adjustment of the organisational structure to the reduced portfolio. Adjusted EBITDA from letting activities reached EUR 37 million, slightly below the previous year's figure. The net result was minus EUR 160 million, influenced by interest expenses; in the previous year, this figure was minus EUR 381 million.
Regarding the capital structure, the company has no capital market debt maturities until the end of 2028. 97 per cent of total financial debt matures in 2028 or later. The company's Loan-to-Value (LTV) stood at 79.2 per cent in June 2026. As of the end of the first half of 2026, Adler Group had cash and cash equivalents of EUR 155 million. The company continues to focus on sustainably strengthening its capital structure.
