Adler Group (ETR:ADJ) used its full-year 2025 investor call to highlight continued progress on asset disposals, stabilization in the valuation of its Berlin-focused yielding portfolio, and further debt reduction using sales proceeds. CEO Dr. Karl Reinitzhuber and CFO Thorsten Arsan also provided 2026 guidance and outlined a strategic review of options for the company’s Berlin residential portfolio and related financing structures.
Disposals: development exits and non-core sales
Reinitzhuber said the company “continue[s] to make good progress on the disposals of our development projects,” calling the fourth quarter “a particularly eventful quarter.” He noted that Adler closed Upper North Tower in December 2025 (signed in April), then closed Quartier Kaiserlei in January 2026 and Benrather Garten in March 2026, both of which were signed in the fourth quarter of 2025.
Reinitzhuber said sales efforts for remaining development projects would continue “with high priority throughout the year,” adding that some processes were “well advanced” and that the company expected “further signings in the coming weeks.” He emphasized, however, that Adler does not expect “any material price uplift” for remaining development assets.
On the market backdrop, Reinitzhuber said his perception is that the environment for German residential development “has continued to stabilize,” with municipalities more supportive and construction costs “not rising above the CPI,” while financing remains challenging though “transactions get done.” He also said the effect of increased interest rates “driven by the Iran war remains to be seen,” but had not immediately impacted the German residential development business “as their perspective is more long-term.”
The company also reported progress disposing of non-strategic yielding assets. Reinitzhuber said Adler sold Kornversuchsspeicher and two more buildings in Berlin for an aggregate EUR 33 million. Parkhaus Loschwitzer Weg closed in December 2025, and both Kornversuchsspeicher and Hedemannstraße closed “yesterday,” with purchase prices received. He added that Adler is continuing disposals in Eastern Germany and North Rhine-Westphalia, reducing units outside Berlin from 117 to 49, with further deals “in the pipeline.”
In addition, the company signed six condominium unit sales in Berlin for a total sales price of EUR 2 million. Reinitzhuber said Adler’s “disposal holdback basket remains almost fully filled” at EUR 245 million, unchanged from three months prior, and that Adler planned to return net proceeds from recent closings of approximately EUR 125 million “in the coming days” to first lien investors and banks.
2025 financial and portfolio highlights
Reinitzhuber reported net rental income of EUR 132 million for 2025, which he said decreased substantially versus the prior year due to disposals of BCP and the North Rhine-Westphalia portfolio early in 2025. He said the result was within guidance of EUR 127 million to EUR 135 million.
Adjusted EBITDA from rental activities totaled EUR 72 million, with a “slightly higher margin compared to last year,” while adjusted EBITDA total was negative because the development segment did not contribute positive earnings. Reinitzhuber said the negative financial impact from development is becoming smaller as projects are sold and the organization is downsized.
Adler’s equity position stood at EUR 0.9 billion. The company’s loan-to-value (LTV) increased slightly to 76.3% “in line with our expectations,” Reinitzhuber said, and cash was EUR 214 million.
Operationally, management said its Berlin-anchored yielding portfolio continued strong performance, including like-for-like rental growth of 3.66%. At year-end 2025, Adler held 17,504 rental units, down 191 units from September due to fourth-quarter disposals. More than 99% of the portfolio is in Berlin, with 49 units outside Berlin that the company expects to sell “within the coming quarters.”
Valuations: yielding assets stabilize; development values decline
Reinitzhuber said Adler continued to see different dynamics between yielding assets and development projects. He reported that valuations for yielding assets showed another “slight increase,” while like-for-like valuation for development assets fell 6.5% in the second half of 2025, with values “still under pressure” due to rising construction costs and “flat values for newly built residential apartments in Germany.”
On the yielding portfolio, the company reported a stable gross asset value (GAV) of EUR 3.5 billion. GAV per square meter increased to EUR 2,875 from EUR 2,847 in the third quarter.
Reinitzhuber said CBRE conducted the semiannual valuation and that after “three consecutive years of like-for-like value declines,” Adler recorded a positive like-for-like fair value change of 0.6% in the second half of 2025, following +0.4% in the first half. He said valuations were marked up by an aggregate 1% in 2025, which management framed as evidence of stabilization. Rental growth outpaced valuation gains, leading to an increase in rental yield to 3.6% from 3.5%, he said.
Rent growth, vacancy, and Berlin Mietspiegel outlook
Reinitzhuber said Adler delivered 3.6% like-for-like rental growth year over year, in line with a target of around 3% annually, and above the 1.8% reported in the prior year. He attributed the prior year’s lower level to timing of Mietspiegel and CPI-related adjustments.
He said rent increases for almost 1,000 units became effective in the fourth quarter, and over the last 12 months Adler increased rents on more than 9,000 residential units—more than half of the portfolio—with leases “half CPI-indexed and half Mietspiegel-based.” Management said it was confident of reporting rental growth “north of 3% again at year-end 2026.”
The company’s average rent increased to EUR 8.61 per square meter per month in December 2025 from EUR 8.29 a year earlier. Reinitzhuber noted the prior year had been distorted by the now-sold North Rhine-Westphalia portfolio, and that on a like-for-like basis average rent rose from EUR 8.30 to EUR 8.61.
Vacancy remained low at 1.3%, matching the Berlin vacancy rate a year earlier. Reinitzhuber cited “continuous demand for rental apartments in Berlin,” supported by population growth and limited new supply.
Looking ahead, he said the Berlin state government recently announced a new Berliner Mietspiegel would be published in mid-2026, which management expects to provide “some tailwind for 2026 and even more for 2027.”
Debt repayments, maturities, and 2026 guidance
Arsan said the yielding portfolio was valued at EUR 3.5 billion and the development portfolio at around EUR 500 million, bringing total GAV to EUR 4.0 billion at the end of December 2025, down from EUR 4.2 billion in September. He attributed the change primarily to signing and closing of three development projects and to the like-for-like devaluation of development projects, which reduced GAV by around EUR 36 million compared to the third quarter.
On deleveraging, Arsan said Adler made a partial redemption of EUR 6 million under the first lien new money facility in the fourth quarter of 2025 using Berlin condo-sale proceeds. He added that the company made further partial redemptions in the first quarter of 2026 totaling EUR 51 million, including EUR 11 million after Upper North Tower closed, EUR 17 million after closing the Offenbach development project and Parkhaus, and EUR 23 million after Benrather Garten closed.
Arsan also said Adler would return net proceeds from recent closings of approximately EUR 110 million “in the coming days,” alongside repayment of EUR 15 million of bank debt.
Regarding maturities, Arsan said the remaining EUR 50 million of a bond due in April 2026 had been repaid on March 16 from disposal proceeds, “in line with the new money facility.” He said Adler successfully prolonged a EUR 9 million secured bank loan, extending maturity from March 2026 to the fourth quarter of 2028. Discussions on the remaining EUR 80 million of 2026 bank maturities were “well progressing,” and the company expected to reach prolongation agreements “well ahead of maturity.”
As of year-end 2025, total nominal interest-bearing debt was EUR 3.7 billion, LTV was 76.3%, weighted average cost of debt was 7% (down 0.1 percentage points), and average debt maturity was around 2.4 years, Arsan said. He added that, at the company’s request, S&P withdrew its rating on the 2026 notes in the fourth quarter of 2025; the notes were fully redeemed earlier in the month. Other ratings, including an issuer rating of B- with stable outlook, were unchanged, he said.
For 2026, Reinitzhuber guided to net rental income of EUR 124 million to EUR 129 million, with the year-over-year decrease reflecting the impact of strategic disposals—particularly the North Rhine-Westphalia portfolio sale in February 2025—partly offset by rental growth.
He said Adler has “good flexibility” with “no bond maturities until 2028,” and disclosed that the board is being advised by Evercore “to evaluate strategic options for the Berlin residential portfolio and the related financing structures.” Reinitzhuber called the open-ended review a “key strategic focus” for 2026.
He also said the debate on expropriation of private housing in Berlin is a “growing concern,” adding that even if an expropriation initiative is not expected to commence before Berlin’s election in September 2026, Adler is closely monitoring events and legal assessments.
No analyst questions were asked during the Q&A portion of the call. Reinitzhuber said the company plans to publish its first-quarter report on May 28, with the results presentation scheduled for the same day.
About Adler Group (ETR:ADJ)
Adler Group SA engages in the purchase, management, and development of multifamily residential real estate properties in Germany. It operates through Residential Property Management, Adler RE, Consus, and Privatization segments. The company is involved in the rental and management of residential properties, including modernization and maintenance of residential properties, management of tenancy agreements, and marketing of residential units, as well as It also engages in holding, operating, and selling commercial units; and the modernization, maintenance, real estate investment, development of middle income houses, and management of non-vacant units.
