Ado increases rents by 4% – “price cap benefits investors”

14/08/2019

Ado Properties, a residential real estate company solely focused on the city of Berlin, increased income from rental activities in the first half of 2019 by 9.9% year-on-year to €71.4mn, with a like-for-like rental growth of 4.0%. The average in-place rent is now €6.81/sqm (end of 2018: €6.73/sqm). However, FFO 1 (from rental activities) stagnated at €33.4mn due to higher interest charges and taxes on earnings. The company’s opinion on the rent cap: “We believe that this – or similar measures – will only contribute to another housing shortage in Berlin. However, that would be a positive for investors, as they will almost certainly benefit from such conditions in the long run.” The company also announced that Eyal Merdler will be its new CFO, starting in October. Merdler is currently CFO at Ado Properties’ parent company, Ado Group Ltd. The company has thus found successors for two of three positions after its announcement of the resignation of senior management in June.


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