ADLER Group S.A.

ADO Properties notes statements from rating agencies

18 December 2019 - ADO Properties notes the press releases from Moody's and S&P, including Moody's recognition that the business and financial profiles being aligned with investment grade, and we intend to further communicate with the agencies to address their outstanding concerns in the coming weeks.

We thank both S&P and Moody's for their prompt response to our announcement.

ADO Properties continues to reiterate the benefits of the combination, which will create a German EUR 8.6 billion residential company, with likely MDAX inclusion, which will benefit from significant operational and financial synergies and a larger, more diversified business profile. It is management's intention to maintain financial discipline by adherence to the following principles:

Net loan to value less than 50%
Interest coverage ratio of at least 2.5x
Predominantly unsecured capital structure
Dividend policy of up to 50% of FFO I, with a proposed EUR 0.75 dividend per share over 2019
for all existing and new ADO shareholders

For ADO Properties, this is a highly synergistic business combination, which enables the company to diversify outside Berlin into core growth cities across Germany, whilst becoming value accretive from day one.

The combined entity will adopt best in class corporate governance with the creation of a Tier 1 Board comprising ten members, of which five will be fully independent, including the Chairman who will retain the casting vote.

The new, larger entity will also benefit from enhanced liquidity and post the combination no single shareholder will control the company and there will be a free float of at least 80%.

Contacts

Finsbury

+44 (0) 207 251 3801

Edward Simpkins

Jenny Davey

Gordon Simpson
 

Rueckerconsult

Peter Dietze-Felberg, Senior Consultant

Direct Line: +49 (0) 30 28 44 987 62

Switch Board: +49 (0) 30 28 44 987 3

Mobile: +49 (0) 151 27616562

Email: dietze@rueckerconsult.de