Adler - comment

We are reviewing our residual 2L position. The continued erosion of equity cushion from the 1L PIK narrows the window for the 2Ls to capture residual value.

Adler has formally mandated Evercore to explore "strategic options" for the Berlin portfolio and financing structure. A long-anticipated step that confirms the direction of travel toward a portfolio transaction or second restructuring ahead of the 2028 1L maturity. 

The disposal programme has meanwhile accelerated materially, with several development projects (Holsten Quartier, Kaiserlei, UpperNord, Benrather Gärten) signing or closing in Q4; confirmation of the land bank’s realisable value. The sale of the non-core out-of-Berlin yielding assets, however, shrinks the income base (FY26 NRI guided EUR124-129m vs EUR132m in FY25).

LTV deteriorated to 76.3%, driven almost entirely by mechanical PIK accrual rather than operational weakness; the yielding portfolio delivered in line with forecast, but the PIK is PIKing faster.