Adler - comment

Results are distorted by the sale of Brack, the NRW portfolio, write-downs and sales of development assets, but we note that despite LfL growth of NRI in Berlin and throughout the company, Operating CF is flat, leaving us concerned that the residual cost structure is too heavy and that management is slow in trimming staff. Cash burn is still strong, beyond zero OCF, largely due to the completion of Upfront Sales projects and other development CapEx and is paid for with the ongoing unwind of the land bank portfolio.