The housing company Adler Group could reduce debt by selling parts of its real estate portfolio. The Adler Group has decided to “initiate a fundamental review of its strategic options for action after it has received offers from several institutional interested parties with regard to parts of its rental income-generating portfolio,” the company announced on Monday.
The process could lead to the sale of a substantial part of the real estate portfolio directly and indirectly held by Adler. The aim is to reduce the level of debt. The subsidiary Westgrund stated in a mandatory announcement that it was examining strategic options for action. This process could lead to the sale of part of the real estate portfolio.
The shares of the Adler Group contained in the small value index SDax initially shot up 18 percent at the beginning of trading. In the course of the morning they had to give back most of the profits. Adler Group shares are currently trading 2.3 percent up at EUR 15.21.
The Adler Group has a portfolio of around 70,000 residential units in Germany. The LTV loan ratio, which is important for the debt level of real estate groups, was 54.7 percent in the first half of the year. For comparison: At the same time, it was 40.5 percent for its larger competitor Vonovia.