Adler Group S.A. reported a net loss of €160 million for the first half of 2026, narrowing from a €381 million loss in the same period last year, as the Luxembourg-based real estate company highlighted continued improvement in its Berlin-focused residential portfolio.
Net rental income totaled €63 million in H1 2026, down from €68 million a year earlier, while adjusted EBITDA from rental activities reached €37 million. Total adjusted EBITDA stood at €29 million, with funds from operations (FFO 1) remaining negative at €40 million. Revenue surged to €284 million from €107 million in H1 2025, driven by asset disposals and portfolio revaluations.
The company’s Berlin residential portfolio, representing 99.9% of its 17,465 yielding rental units, saw like-for-like rental growth of 3.0% in H1 2026, accelerating from 2.4% in the prior year period. This growth was supported by a 5% increase in Berlin’s Mietspiegel rent benchmark in June 2026, enabling 8,700 planned rent increases by year-end. Average residential rent rose to €8.68 per square meter per month from €8.45, while the vacancy rate improved to 0.9% from 2.0% a year earlier. The portfolio’s rental yield increased to 3.6% from 3.5%.
Adler Group’s total nominal interest-bearing debt declined to €3.52 billion as of June 30, 2026, down from €3.6 billion at the end of March. The weighted average cost of debt stood at 7.1%, with 99.2% of debt either fixed or hedged. The weighted average maturity was 2.9 years, with no capital market debt maturing before the end of 2028. The loan-to-value ratio rose to 79.2% from 77.1% in March, while cash reserves decreased to €155 million from €301 million.
Disposal activity accelerated in Q2 2026, with partial redemptions totaling €116 million from the 1L New Money Facility, funded by proceeds from the Holsten Quartier development sale and Berlin condominium transactions. Hedemannstrasse and Hansastrasse assets were also partially redeemed, contributing to a year-to-date disposal and debt reduction total of €201 million. The company’s disposal proceeds holdback neared its €250 million cap at €245 million.
Adler Group maintained its S&P issuer credit rating at B- with a stable outlook. CEO Karl Reinitzhuber emphasized the Berlin portfolio’s role in driving rental growth, with full-year 2026 net rental income guidance set at €124–129 million.
