Adler Group posts 1.67 bln eur net loss in 2022

Adler SA

25/04/2023 07:10

BERLIN, April 25 (Reuters) - Adler Group  ADJ.DE  on
Tuesday posted a 1.67 billion euro  ($1.85 billion) net loss for
2022 after it wrote down real estate assets and booked
impairment losses on receivables to keep its business going.
    Adler, one of Germany's biggest landlords, is fighting a
liquidity crisis triggered by a downturn in the German property
market, rising energy and building prices caused by Russia's
invasion of Ukraine and the impact of the COVID-19 pandemic.
    Funds from operations (FFO 1), a measure of recurring free
cash flow and a key indicator for operational strength, fell 37%
to 86.78 million euros last year, the group said in an unaudited
annual report. 
    Adler did not give a FFO 1 outlook for 2023, saying it would
rather focus "on steering its liquidity position and
deleveraging through asset and portfolio disposals".    
    Its total equity fell 48% to 1.91 billion euros last year.  
  
    "We are not out of the woods yet as there are still risks
that threaten our liquidity such as the unsolved auditor issue
or higher than anticipated restructuring expenses," said senior
management in a letter to shareholders in the annual report. 
    Since its former auditor KPMG quit in 2022, it has not been
able to appoint a new one, said Stefan Kirsten, chairman of the
board of directors, in the annual report.


($1 = 0.9051 euros)

 (Reporting by Kirsti Knolle, Editing by Rachel More)
 ((kirsti.knolle@thomsonreuters.com;  +49 30 220133561;))