Adler Group’s leverage increases – net loss of 604 million euros

Dusseldorf The Adler Group SA slipped deep into the red in the second quarter due to value adjustments in the three-digit million range and is approaching a critical limit in terms of net debt. For its financing, the troubled landlord is building on successful sales in the second half of the year.

Because of the weakening German real estate market, Adler made value adjustments on receivables from the sale of real estate and the fair value of investment properties. The remaining goodwill for the Consus Real Estate AG subsidiary was written off in full, as Adler announced on Monday night.

The bottom line was a net loss of 604 million euros for the first half of the year – after a profit of 355 million euros in the previous year. The debt ratio rose to 58 percent at the end of June. At the end of March it was 52 percent.

According to the group’s bond terms, the ratio must remain below 60 percent. Rental income fell by a quarter year-on-year due to large property sales.