Ado Properties: Barclays sees Adler deal as negative, cuts

Adler Real Estate AG

09/01/2020 09:53

** Barclays cuts Ado Properties  ADJ.DE  to "underweight"
from "equal weight"
    ** The broker says it believes that the reverse takeover of
Adler Real Estate  ADLG.DE  and the acquisition of diversified
developer Consus  CC11.DE   urn:newsml:reuters.com:*:nL8N28Q119 are negative events for
Ado shareholders, as they show that "investors do not have a say
in the direction of the company"
    ** The broker sees significant loan-to-value ratio
(LTV)increase and operational risks due to a "large, expensive
and highly diversified development pipeline" 
    ** It also sees potential future equity raises to weigh on
ADO shares
    ** "Despite the optically high 30% discount to FY20E NAV
(net asset value), we would not invest in ADO Properties at this
time," Barclays says
    ** Shares in Ado and Adler Real Estate are down 4% and 1.8%
respectively, with both stocks at the bottom of the German
smallcap index  .SDAXI  
    






 ((Linda.pasquini@tr.com))