ADO Properties is promisingly launching the new fiscal year and confirming its predictions regarding the consolidated company with Adler Real Estate for 2020. Following the successful completion of the recently completed Adler Real Estate business, ADO has expanded its operations substantially, diversifying its portfolio into leading cities in Germany. And reduced its overall exposure to business tenants. The merger benefits are already starting to come to fruition, and the group is well positioned to generate good returns on investment for its shareholders in the future.
As mentioned, on April 9, 2020, ADO Properties completed the business merger with Adler Real Estate, which created one of Europe's largest public real estate companies. As of March 31, 2020, the value of the consolidated portfolio was EUR 8.6 billion (compared with EUR 8.6 billion on December 31, 2019). The portfolio includes close to 76,000 units at the end of the reporting period, the vast majority of which are housing units. The company reports that in the first quarter of the year, combined income from rentals totaled EUR 88.1 million in the first quarter, and cash flow from operating activities of ADO Property amounted to EUR 11.5 million in the first quarter of 2020.
Maximilian Rienecker, Co-CEO of ADO Properties said: "It is a testament to the strength and resilience of ADO Properties' business model that we are able to deliver a strong set of results for the first quarter of 2020 and confirm our guidance for the full year despite the turbulence caused by COVID-19. Particularly given current market conditions, the decision to proceed with the business combination with ADLER Real Estate has clearly strengthened the group's position and allows us to confirm our full year 2020 guidance of combined rental income of between EUR 280 million and EUR 300 million or EUR 340 million to EUR 360 million if ADLER Real Estate would have been fully consolidated for the entire year."