Led by a significant decrease in rental income, Adler Group records a loss of 971 million euros until September 2023 after the devaluation of its portfolio. The company has announced plans to focus on properties in Berlin in order to cope with the tough situation in the real estate market.

Adler announced in a statement that the value of its portfolio had to be reduced by one billion euros in the first half of the year, leading to an operating loss (FFO1) of seven million euros. The sale of residential properties and the resulting decrease in rental income, as well as interest burdens, contributed to this development.

The Adler Group currently owns 25,000 apartments and plans to focus on real estate in Berlin as part of its restructuring. The company has sold additional properties and has liquid funds totaling €432 million as of the end of September.

Despite current challenges, Adler's board reaffirms its outlook for 2023 and expects net rental income in a similar range as the previous year, namely between 207 and 219 million euros.

These drastic measures are part of Adler's efforts to minimize the impact of the crisis in the real estate market and to remain sustainable. Focusing on the booming Berlin real estate market allows the company to achieve its strategic goals and emerge stronger from the current challenge.

This daring move by Adler shows that the company is ready to adapt to difficult market conditions and act strategically. However, the future remains uncertain as the effects of the pandemic and the real estate crisis continue to be felt. Nevertheless, Adler Group is determined to face these challenges and continue to operate successfully in the market.