Adler Group, a real estate group facing serious charges, has released figures for the past year. Operating profit increased, but millions were lost due to depreciation. It was previously known that the auditor was unable to issue an audit certificate for the KPMG team. Adler stock continued its steep fall on Monday. How investors should behave.

Despite the negative feedback from auditor KPMG, the Adler Group released business figures for the past year on Saturday. The Company aims to fulfill the reporting obligations under the terms of the outstanding securities.

To reduce its high debt, the Adler Group sold a number of assets in late 2021 and early 2022, for example to investment firm KKR and its rival LEG. Adler expects a significant decline in operating results (FFO 1) between EUR 73 and 76 million this year, due to higher sales. In 2021, it increased by 28 percent to 137.1 million euros.

Loss of nearly 1.2 billion euros

The bottom line for Adler shareholders is a loss of nearly 1. 1.2 billion for 2021, down from 19 191 million a year ago. The company, among other things, points to the consequences of a lack of goodwill in connection with the acquisition of Kansas Real Estate AG for 1. 1.08 billion due to increased construction costs and a significant reduction in expected project growth.

Adler previously announced that auditor KPMG could not comment on the final audit. The so-called KPMG Disclaimer (Disclaimer Note) for consolidated financial statements and personal financial statements for the year 2021.

Wireguard hunters have already been warned in 2021

In the controversy surrounding their report, it was a serious setback for SDAX. One week ago, after a special KPMG audit, Adler described himself as acquitted of allegations made by investment firm Viceroy about short buyer Fraser Bering.

Defects were found in the processing of documents and some transactions, but special auditors found no evidence of formal “fraudulent transactions or transactions that rob the company with related persons,” Adler said.

The Viceroy put pressure on the bankrupt financial services provider Wirecard through publications early on, and in early October last year, for the first time, filed serious allegations against Adler, considering the value of real estate projects. . As a result, stock prices plummeted.

The Adler Group has its legal seat in Luxembourg and its operational headquarters in Berlin. The company was formed from a merger of Ado Properties, Adler Real Estate and Berlin project developer Kansas Real Estate. Ado Properties Adler seized real estate and then swallowed up Kansas.

Börs online rating of Adler stock

Shares of Adler Group fell from EUR 23 in the summer of 2021 to below EUR 10 in October, following short selling allegations. After a temporary lull of 14 euros in mid-March, stock prices recently plummeted again. The Xetra closed at EUR 7.24 on Monday, down more than 45 percent from the new all-time low of EUR 3.95.

Börse Online had already suggested selling Adler shares in the fall of 2021. While prices are likely to remain high in the coming weeks, investors should watch the buzz from the sidelines. Skip!

mmr with dpa and rtr

Image source: BÖRSE ONLINE