Interim report
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Q2 QUARTERLY FINANCIAL STATEMENTS 2026
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Profit and loss statement For the six months ended For the three months ended For the year ended In EUR thousand 30 Jun 2026 30 Jun 2025 30 Jun 2026 30 Jun 2025 31 Dec 2025 Income from rental activities 89,768 106,281 44,141 49,262 197,494 Adj. EBITDA from rental activities 37,157 40,495 16,605 19,344 72,410 Adj. EBITDA from rental activities margin 58.9% 59.4% 52.4% 61.4% 55.0% Adj. EBITDA Total 28,765 (19,622) 14,768 (19,441) (6,454) FFO 1 (from rental activities) (39,846) (28,794) (22,805) (12,362) (68,029) FFO 2 (incl. disposal results and development activities) (98,474) (143,404) (51,081) (73,759) (252,599) Further KPIs Residential(*) 30 Jun 2026 31 Dec 2025 Monthly in-place rent (EUR per m2) 8.68 8.61 Total vacancy rate 0.9% 1.3% Number of units 17,465 17,504 Like-for-like rental growth (LTM) 3.0% 3.6% (*) All values include ground floor commercial units and exclude units under renovation and development projects. Balance sheet In % 30 Jun 2026 31 Dec 2025 LTV 79.2% 76.3% Key FiguresQ2 2 Adler Group Q2 2026 Quarterly Financial Statements
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3 Adler Group Q2 2026 Quarterly Financial Statements 1 To our Stakeholders 04 About the Group 06 Adler Group Share 2 Interim Management Report 10 Fundamentals of the Group 12 Portfolio Overview 15 Financial Overview 27 Material Events 28 Forecast Report 29 Opportunities and Risk Report 32 Responsibility Statement 3 Condensed Consolidated Interim Financial Statements 36 Condensed Consolidated Interim Statement of Financial Position 38 Condensed Consolidated Interim Statement of Profit or Loss 39 Condensed Consolidated Interim Statement of Comprehensive Income 40 Condensed Consolidated Interim Statement of Cash Flows 42 Condensed Consolidated Interim Statement of Changes in Equity 44 Notes to the Condensed Consolidated Interim Financial Statements 4 Financial Calendar & Imprint Content
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About the Group The Adler Group S.A. (the Company) is a Luxembourg- based real estate holding company with numerous sub - sidiaries (Adler Group) mainly operating in Germany. It specialises in the management and development of income- producing, multi-family residential real estate. As per the end of Q2 2026, Adler Group owns and manag - es a core rental portfolio of 17,465 units, almost entirely located in Berlin. Most of the properties fall into the mar - ket segment of affordable housing. Besides the residential rental portfolio, Adler Group owns a portfolio of development projects located in some of the largest cities of Germany. Adler Group does not intend to hold them but rather to generate cash flow and earnings through either forward sales or upfront sales. As of 30 June 2026, Adler Group had 302 employees based in Luxembourg and in several locations across Germany. Rental portfolio as at 30 June 2026 (*) (*) Residential units including ground level commer- cial units, not considering 49 units located outside of the Berlin metropolitan area. Residential rental portfolio locations Berlin 4 Adler Group Q2 2026 Quarterly Financial Statements 1 TO OUR STAKEHOLDERS About the Company
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1 TO OUR STAKEHOLDERS About the Company Adler Group Q2 2026 Quarterly Financial Statements 5
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Adler Group Share Shares Stock exchange Frankfurt Stock Exchange Market segment Regulated market (Prime Standard) ISIN LU1250154413 WKN A14U78 Total number of shares outstanding 151,626,107 Ticker symbol ADJ Primary listing 23 July 2015 Stock exchange Frankfurt Stock Exchange Issue price EUR 20 Price at the end of Q2 2026 EUR 0.150 Highest share price LTM EUR 0.237 Lowest share price LTM EUR 0.141 Shareholder structure (1) (as at 30 June 2026) Vonovia SE 15.9% Free Float 84.1% Voting securities Stock exchange Luxembourg Stock Exchange Date of issuance 15 October 2024 ISIN LU2900363131 Nominal value EUR 0.01 Total number of voting securities 454,878,321 Composition (2) (as at 30 June 2026) PIMCO 24.0% Taconic Capital Advisors 12.3% Sculptor Capital Manage - ment Inc 11.1% Arini Capital Management 8.7% Other 44.0% General Note: As part of the comprehensive recapitalisation completed in September 2024, holders of the Investor Notes received new voting securities that represent 75% of the voting rights in Adler Group S.A. (but 0% of the distribution rights). Common shares represent 25% of the voting rights in Adler Group S.A. and 100% of the distribution rights. (1) Based on approx. 151.6m voting rights attached to the share capital (ISIN LU1250154413); according to the official notifications received from the shareholders; based on the German stock exchange’s definition, free float refers to shares that are not owned by major shareholders holding more than 5% of the total shares. (2) Based on approx. 454.9m voting rights attached to the voting securities (parts bénéficiaires avec le droit de vote; ISIN LU2900363131); based on the voting rights notifi- cations received by the Company in accordance with article 11 of the Luxembourg law of 11 January 2008 on transparency requirements for issuers (as supplemented and amended, the “Luxembourg Transparency Law”), these shareholders hold more than 5% of the voting rights in the Company. (3) Based on approx. 606.5m total voting rights attached to both the share capital and the voting securities (parts bénéficiaires); according to the official notifications re- ceived from the shareholders and holders of voting securities (parts bénéficiaires). 6 Adler Group Q2 2026 Quarterly Financial Statements 1 TO OUR STAKEHOLDERS Adler Group Share
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Total number of voting rights (606,504,428) (3) (as at 30 June 2026) Dividend policy Following the implementation of the proposed amend - ments pursuant to the Restructuring Plan, the Company is not permitted to declare or pay any dividends to share - holders for the year 2022 and thereafter. If and as long as any of the subordinated notes issued by the Company’s subsidiary AGPS BondCo PLC in the nom - inal amount of approximately EUR 2.3 billion under the Company’s guarantee as part of its 2024 financial restruc - turing (the “Subordinated Notes”) remain outstanding, and to the extent that any payments have been made in respect of the Subordinated Notes since the issuance thereof (the "Subordinated Notes Payments"), the Board of Directors may, when approving the annual financial statements of any given financial year, recommend to the Annual General Meeting that a dividend be declared and paid in an amount equivalent to one thirty-ninth (1/39) of the total Subordinated Notes Payments. 18.0% PIMCO 10.0% Taconic Capital Advisors 9.0% Sculptor Capital Management 6.5% Arini Capital Management 4.0% Vonovia 52.6% Other Key stock market data Adler Group shares are traded on the Prime Standard of the Frankfurt Stock Exchange. During the 12 months ended 30 June 2026, the shares traded between EUR 0.141 and EUR 0.237. Shareholder structure As at 30 June 2026, the total number of outstanding shares of Adler Group amounted to 151.6 million. At that time, the main shareholder with holdings of over 5% was Vonovia SE (15.88%) according to the official notifications received from the shareholders. The remaining 84.12% free float shares were mainly held by institutional investors. On 15 October 2024, approximately 454.9 million voting securities (parts bénéficiaires) were issued to certain bond investors, thereby increasing the number of total voting rights to approximately 606.5 million (including the approx - imately 151.6m voting rights attached to the share capital). 7 Adler Group Q2 2026 Quarterly Financial Statements 1 TO OUR STAKEHOLDERS Adler Group Share
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Interim Management Report 8 Adler Group Q2 2026 Quarterly Financial Statements
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2 Interim Management Report 10 Fundamentals of the Group 12 Portfolio Overview 15 Financial Overview 27 Material Events 28 Forecast Report 29 Opportunities and Risk Report 32 Responsibility Statement 9Adler Group Q2 2026 Quarterly Financial Statements
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Fundamentals of the Group Business model Adler Group S.A. is a residential real estate company which – through its subsidiaries – holds and manages 17,465 rent- al units, primarily based in Berlin. This rental portfolio is valued at EUR 3.5 billion as per 30 June 2026. Besides the rental portfolio, Adler Group owns a portfolio of develop - ment projects in some of the larger cities in Germany val - ued at EUR 0.5 billion. In agreement with the bondholders under the terms of the Restructuring Plan, these develop - ment projects are to be sold – some sales processes have already begun, others are to be initiated. Hence, the Adler Group’s business model focuses on asset and portfolio management, property and facility manage - ment, aiming at improving operating results by increasing rents and decreasing vacancies in its existing portfolio. The portfolio shall be further optimised depending on op - portunities or necessities. Our 302 employees (as per 30 June 2026) are based in Luxembourg and in several locations across Germany in order to bring Adler Group as close as possible to assets and tenants. Objectives and strategy Focus on active management of the portfolio to grow earnings and improve EBITDA margins. Adler Group focuses on increasing rents through active asset management and targeted investments to mod - ernise, refurbish and re-position properties, while con - stantly screening and anticipating developments in dif - ferent sub-markets. In order to realise upside potential, Adler Group pursues regular rent increases up to the market levels within the regulatory and legal limits with - out CapEx investment. In addition, Adler Group continu - ously reviews rent potentials and pursues growth be - yond the rent tables through targeted CapEx investments to modernise, refurbish and/or re-position properties. Vacancies are kept low through active marketing tai - lored to the respective micro-location. As apartments are typically renovated to market stand - ard after a tenant has moved out, Adler Group is in the position to rent vacant apartments to higher quality ten - ants and thus to continuously improve the tenant struc - ture and average rent. 10 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Fundamentals of the Group
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Optimise the portfolio and recycle capital through se - lective investments and disposals. By disposing of non-core assets, Adler Group aims to streamline the rental portfolio and to focus on Berlin where a critical mass of assets can be managed thereby improving profitability and portfolio KPIs. Active capital recycling enables Adler Group to reduce leverage and ultimately to improve its capital structure. Committed to adding value through refurbishment and modernisation. Investing selected CapEx in refurbishment and moderni - sation measures in the existing portfolio will elevate the quality of the rental portfolio, improve energy efficiency in line with sustainability targets to reduce greenhouse gas emissions and thus add value overall. Corporate Governance The Company’s corporate governance practices are gov - erned by Luxembourg Law (particularly the Luxembourg law of 10 August 1915 on commercial companies, as amended) and the Company’s articles of association. As a Luxembourg company with its shares admitted to trading on the regulated market (Prime Standard) of the Frankfurt Stock Exchange, the Company is not subject to any spe - cific mandatory corporate governance rules. The corpo - rate governance practices applied by the Company are those applied under general Luxembourg law. Composition of the Board As at 30 June 2026, the Board comprises the follow - ing members: Mr Stefan Brendgen Independent Director Dr. Karl Reinitzhuber Director Mr Thorsten Arsan Director Mr Paul Copley Independent Director Mr Matthias Moser Independent Director Mr Thilo Schmid Independent Director 11 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Fundamentals of the Group
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Portfolio Overview Business performance highlights As at 30 June 2026, the residential rental portfolio is fully focussed on Berlin after the Company sold its North Rhine-Westphalia (NRW)-based portfolio in February 2025. Portfolio overview (*) Location Fair value EUR m Q2 26 Fair value EUR/m2 Q2 26 Units Lettable area m2 NRI(**) EUR m Q2 26 Rental yield (in-place rent) Vacancy Q2 26 Vacancy Δ Y oY LFL Q2 26 Avg. rent EUR/m2/ month NRI Δ Y oY LFL Rever- sionary potential Berlin 3,485 2,892 17,416 1,205,038 127 3.6% 0.9% (0.6%) 8.68 3.0% 21.9% Other 1 330 49 2,636 0 11.3% 16.8% (12.2%) 4.90 (2.5%) 78.4% Total 3,486 2,886 17,465 1,207,673 127 3.6% 0.9% (0.6%) 8.68 3.0% 22.0% (*) All values include ground floor commercial units and exclude units under renovation and development projects. (**) Annualised net rental income. In addition to our financial performance indicators, we also use the following non-financial operating performance indicators : The vacancy rate shows the ratio of m² of vacant units in our properties to total m². Vacancy rate is used as an indicator of the current letting performance. The in-place rent per m² provides an insight into the average rental income from the rented properties. It serves as an indicator of the current letting performance. The like-for-like rental growth is the change rate of the net rents generated by the like-for-like residential portfolio over the last 12 months. The total amounts spent on maintenance and CapEx in relation to the total lettable area of the portfolio are further operational figures to ensure an appropriate level of investment in the real estate portfolio. Maintenance expenses are spent to keep the property in its current condition and are typically charged to the consolidated income statement. These maintenance measures ensure the living quality of tenants and tenant satisfaction, which in turn decreases va - cancies and increases reletting rents, giving place to higher and stable rental income. CapEx measures comprise tar - geted investments that increase the quality, safety and overall features of the assets in the portfolio, supporting the 12 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Portfolio Overview
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ability to capture higher rents. Examples of these investments include refurbishments of facade or roof as well as refur - bishments of apartments. CapEx are typically capitalised to the investment properties. The diverse CapEx projects support the value growth of the portfolio and the letting process, resulting in lower vacancies and higher rent potential. Additionally, Adler Group carries investments aimed at improving the energy efficiency and CO 2 reduction. All of the above-described non-financial performance indicators are key drivers for the development of rental income. Portfolio performance Rental portfolio (*) 30 Jun 2026 31 Dec 2025 Number of units 17,465 17,504 Average rent/m²/month (EUR) 8.68 8.61 Vacancy(**) 0.9% 1.3% (*) All values include ground floor commercial units and exclude units under renovation and development projects. The average rent per m 2 amounted to EUR 8.68 as at 30 June 2026, a solid increase compared to the previous period. The vacancy rate decreased to a low level of 0.9%. Like-for-like rental growth (*) In % LTM(**) 30 Jun 2026 1 Jan - 31 Dec 2025 Like-for-like rental growth 3.0% 3.6% (*) All values include ground floor commercial units and exclude units under renovation and development projects. (**) Last 12 months (LTM). Like-for-like rental growth of the portfolio amounted to 3.0% over the last twelve months. Adler Group’s fully integrated active asset management is focused on rental growth and employs dedicated strategies to drive all relevant components. In units that require modernisation, Adler Group invests CapEx to improve quality to meet today’s standards and regulations. Applying the relevant regulatory framework accurately and efficiently is key to successfully maximising rental growth for let units. 13 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Portfolio Overview
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Maintenance and CapEx In EUR per m² 1 Jan - 30 Jun 2026 1 Jan - 31 Dec 2025 Maintenance 5.89 9.71 CapEx 13.64 20.62 Total 19.53 30.33 In EUR million 1 Jan - 30 Jun 2026 1 Jan - 31 Dec 2025 Maintenance 7.2 13.1 CapEx 16.6 27.8 Total 23.8 40.9 In the first six months of 2026, total investment in the core portfolio amounted to EUR 23.8 million resulting in mainte - nance and CapEx expenses per m 2 of EUR 19.53. Vacancy split Adler Group’s active asset management aims to minimise the vacancy rate while keeping the necessary flexibility for portfolio optimisation. Vacancy(*) 30 Jun 2026 31 Dec 2025 Total vacancy (units) 143 188 Total vacancy (m²) 11,196 15,547 Total vacancy rate 0.9% 1.3% (*) All values include ground floor commercial units and exclude units under renovation and development projects. 14 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Portfolio Overview
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Financial performance indicators Adler Group has been exposed to a challenging situation that was partly self-inflicted and largely caused by external factors since financial year 2022. The situation itself man - ifested in liquidity constraints, lack of financing capacities and dried real estate markets that made portfolio sales almost impossible. In order to cope with this situation, management decided to focus on always preserving enough liquidity as well as on net rental income as the main key performance indicators. The other financial per - formance indicators outlined below were not suspended but were followed with a much lower focus than usual. Consequently, we waive the explicit description of the fi - nancial performance indicators listed below. After the recapitalisation completed in September 2024, the Company decided to no longer report the EPRA NAV & NTA metrics as a result of the IFRS accounting treatment of the newly introduced perpetual notes, which would ac - count these as equity. As such, in management’s view, EPRA NAV & NTA no longer reflect the intrinsic value of Adler Group correctly. Income from rental activities equals net rental income plus income from facility services and recharged utilities costs. NOI (net operating income) equals total revenue from the property portfolio less all reasonably necessary operating expenses. Aside from rent, a property might also generate revenue from parking and service fees. NOI is used to track the real estate portfolio’s capability of generating income. Financial Overview Adj. EBITDA from rental activities is an indicator of a com - pany’s financial performance and is calculated by deducting the overhead costs from NOI. It is used as a proxy to assess the recurring earnings potential of the letting business. Adj. EBITDA Total can be derived by adding the net prof - it from project development activities to Adj. EBITDA from rental activities. In addition, we present the NOI margin from rental ac - tivities – calculated as NOI divided by net rental income, as well as Adj. EBITDA margin from rental activities – calculated as Adj. EBITDA from rental activities divided by net rental income. These metrics are useful to analyse the operational efficiency at real estate portfolio level as well as at Company level. Calculation of Adj. EBITDA (from rental activities) Net rental income (+) Income from facility services and recharged utilities costs = Income from rental activities (–) Cost from rental activities 1) = Net operating income (NOI) from rental activities (–) Overhead costs from rental activities 2) = Adj. EBITDA from rental activities 1) Cost from rental activities is the aggregate amount of (a) Salaries and other expenses related to rental activities; (b) Net cost of utilities recharged; and (c) Property operations and maintenance, excluding one-off costs. Adjustments for one-off costs include items that are of a non-periodic nature, recur irregularly, are not typical for operations, or are non-cash-effective. 2) Overhead costs from rental activities represent the “General and administrative expenses” from the profit or loss statement excluding one-off costs and depreci- ation and amortisation relating to rental activities. Adjustments for one-off costs include items that are of a non-periodic nature, recur irregularly, are not typical for operations, or are non-cash-effective like impairment losses on trade receivables. 15 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Calculation of Adj. EBITDA Total Income from rental activities (+) Income from property development (+) Income from real estate inventories disposed of (+) Income from other services (+) Income from selling of trading properties = Revenue (–) Cost from rental activities 1) (–) Other operational costs from development and privatisation sales 3) = Net operating income (NOI) (–) Overhead costs from rental activities 2) (–) Overhead costs from development and privatisation sales 4) = Adj. EBITDA Total (–) FFO 2 net interest expenses 5) (+/–) Other net financial costs 6) (–) Depreciation and amortisation (+) Change in fair value of investment properties (+/–) Other expenses/income 7) (–) Net income from at-equity valued investments 8) = EBT 3) Other operational costs from development and privatisation sales is the aggregate amount of (a) Costs of real estate inventories disposed of; (b) Costs of property development; and (c) Costs of selling of trading property (condominiums) excluding one-off costs and depreciation and amortisation. Adjustments for one- off costs include items that are of a non-periodic nature, recur irregularly, are not typical for operations, or are non-cash-effective. 4) Overhead costs from development and privatisation sales represent the “General and administrative expenses” from the profit or loss statement excluding one-off costs and depreciation and amortisation excluding costs relating to rental activities. Adjustments for one-off costs include items that are of a non-periodic nature, recur irregularly, are not typical for operations, or are non-cash-effective. 5) FFO 2 net interest expenses is equal to “Interest on other loans and borrow- ings”, excluding day-1 fair value non-cash adjustment and interest capitalised for development projects, plus the nominal interest expense on bonds. 6) Other net financial costs is equal to the total “Net finance costs” from the profit and loss statement less “Net cash interest” as calculated in footnote 5) above. 7) Other expenses/income relates to adjustments for one-off costs which include items that are of a non-periodic nature, recur irregularly, are not typical for opera- tions, or are non-cash-effective. 8) Net income from at-equity valued investments from the profit and loss statement. Starting with Adj. EBITDA from rental activities, we calcu - late the main performance figure in the sector, the FFO 1 (from rental activities). This KPI serves as an indicator of the sustained operational earnings power after cash interest expenses and current income taxes of our letting business. Calculation of FFO 1 (from rental activities) Adj. EBITDA from rental activities (–) FFO 1 net interest expenses 9) (–) Current income taxes relating to rental activities 10) = FFO 1 (from rental activities) 9) FFO 1 net interest expenses is equal to “Interest on other loans and borrow- ings” relating to rental activities, excluding day-1 fair value non-cash adjustment, plus the nominal interest expense on bonds. 10) Only current income taxes relating to rental activities. Starting from Adj. EBITDA Total, we calculate FFO 2 (incl. disposal results and development activities) . FFO 2 is used to indicate the total operational earnings power. Calculation of FFO 2 (incl. disposal results and development activities) Adj. EBITDA Total (–) FFO 2 net interest expenses 5) (–) Current income taxes 11) = FFO 2 (incl. disposal results and development activities) 11) Current income taxes as presented in the financial statements exclude the income tax relating to the disposal of the non-core portfolio. The Company's loan-to-value (LTV) illustrates the rela - tionship between net debt and total property value of a real estate company and thus evaluates the gearing of shareholder equity. The methodology and illustrative LTV calculation as well as the information taken from the Adler Group balance sheet is depicted in the following table (the calculation of LTV as per 30 June 2026 can be found at the end of this section): 16 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Calculation of LTV Group as reported Share of joint ventures19) Share of material associates19) Non- controlling interests20) Total21) Borrowings from financial institutions 12) (+) Commercial paper (+) Hybrids 13) (+) Bond loans 14) (+) Foreign currency derivatives (+) Net payables 15) (+) Owner-occupied property (debt) (+) Current accounts (equity characteristic) (–) Cash and cash equivalents = Net debt Owner-occupied property (+) Investment properties at fair value (+) Properties held-for-sale 16) (+) Properties under development 17) (+) Intangibles (+) Net receivables 15) (+) Financial assets 18) = Total property = LTV in % 12) Including current and non-current other loans and borrowings. 13) Not including perpetual notes because these instruments are accounted for as equity in the balance sheet according to IFRS. 14) Containing current and non-current corporate bonds. 15) Net payables are equal to payables less receivables on the IFRS balance sheet if that number is positive. Net receivables are equal to receivables less payables on the IFRS balance sheet if that number is positive. Please refer to the following table on net payables to see what this item includes: 16) Incorporating inventories at fair value and non-current assets held-for-sale. 17) This position is included in investment properties at fair value. 18) Containing other financial assets. 19) Net debt and total property value of joint ventures and associated companies are disregarded due to immateriality reasons. 20) Non-controlling interests were only adjusted for minority shareholders in Adler’s former subsidiary Brack Capital Properties N.V. (BCP) for reasons of materiality, thus any other minority shareholders are not considered due to their insignificancy. After the disposal of BCP became effective on 3 January 2025, there is no such adjustment anymore. 21) Total column illustrates the combined values of the previous columns. 17 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Calculation of net payables Investments in financial instruments (+) Advances related to investment properties (+) Restricted bank deposits (+) Contract assets (+) Trade receivables (+) Other receivables and financial assets (+) Advances paid on inventories (–) Other financial liabilities (–) Pension provisions (–) Other payables (–) Contract liabilities (–) Trade payables (–) Provisions (–) Prepayments received (–) Non-current liabilities held-for-sale = Net amount We believe that the alternative performance measures described in this section constitute the most important indicators for measuring the operating and financial per - formance of the Group’s business. We expect all of the above-described alternative per - formance measures to be useful for our investors when evaluating the Group’s operating performance, the net value of the Group’s property portfolio and the level of the Group’s indebtedness. Due to rounding, the figures reported in tables and cross-references may deviate from their exact values as calculated. 18 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Profit situation Compared to the prior year period, net rental income in H1 2026 decreased due to the lack of rental income from the NRW-based portfolio, disposed of in Q1 2025. The decrease was partly compensated by rent increases realised on the remaining assets. The adjusted EBITDA from rental activities amounted to EUR 37 million, a decrease compared to the prior year period reflecting primarily the smaller portfolio size. The adjusted EBITDA Total amounted to EUR 29 million as the develop - ment segment was impacted by construction costs. FFO 1 and FFO 2 were both negatively impacted by net interest expenses. EBITDA Adj. EBITDA from rental activities For the six months ended For the three months ended For the year ended In EUR thousand 30 Jun 2026 30 Jun 2025 30 Jun 2026 30 Jun 2025 31 Dec 2025 Net rental income 63,058 68,212 31,672 31,484 131,565 Income from facility services and recharged utilities costs 26,710 38,069 12,469 17,778 65,929 Income from rental activities 89,768 106,281 44,141 49,262 197,494 Cost from rental activities (33,543) (44,718) (17,003) (22,007) (79,872) Net operating income (NOI) from rental activities 56,225 61,563 27,138 27,255 117,622 NOI from rental activities margin (%) 89.2% 90.3% 85.7% 86.6% 89.4% Overhead costs from rental activities (19,069) (21,069) (10,534) (7,912) (45,212) Adj. EBITDA from rental activities 37,157 40,495 16,605 19,344 72,410 Adj. EBITDA margin from rental activities (%) 58.9% 59.4% 52.4% 61.4% 55.0% 19 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Adj. EBITDA Total For the six months ended For the three months ended For the year ended In EUR thousand 30 Jun 2026 30 Jun 2025 30 Jun 2026 30 Jun 2025 31 Dec 2025 Income from rental activities 89,768 106,281 44,141 49,262 197,494 Income from property development 12,811 (1,027) 2,030 (1,502) (9,630) Income from other services 487 1,438 114 1,567 2,266 Income from real estate inventory disposed of 178,754 - - - 111,250 Income from sale of trading properties 2,371 - 1,297 - 840 Revenue 284,191 106,692 47,582 49,327 302,220 Cost from rental activities (33,543) (44,718) (17,003) (22,007) (79,872) Other operational costs from development and privatisation sales (200,517) (56,263) (5,134) (37,974) (172,627) Net operating income (NOI) 50,130 5,711 25,445 (10,655) 49,721 Overhead costs from rental activities (19,069) (21,069) (10,534) (7,912) (45,212) Overhead costs from development and privatisation sales (2,297) (4,265) (143) (875) (10,962) Adj. EBITDA Total 28,765 (19,622) 14,768 (19,441) (6,454) FFO 2 net interest expenses (122,441) (120,011) (61,051) (55,765) (241,773) Other net financial costs (31,106) (56,798) (15,884) 10,476 (116,696) Depreciation and amortisation (5,280) (6,600) (2,354) (4,500) (24,258) Other income/(expenses) (30,730) (125,409) (19,228) (92,733) (126,595) Change in valuation 1,600 (63,348) 986 (63,348) (92,449) Net income from at-equity valued investments - (1) - (1) (47) EBT (159,191) (391,789) (82,763) (225,312) (608,272) 20 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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FFO FFO 1 (from rental activities) For the six months ended For the three months ended For the year ended In EUR thousand 30 Jun 2026 30 Jun 2025 30 Jun 2026 30 Jun 2025 31 Dec 2025 Adj. EBITDA from rental activities 37,157 40,495 16,605 19,344 72,410 FFO 1 net interest expenses (76,526) (67,753) (38,933) (30,983) (141,283) Current income taxes (477) (1,536) (477) (723) 843 FFO 1 (from rental activities) (39,846) (28,794) (22,805) (12,362) (68,029) No. of shares(*) 151,626 151,626 151,626 151,626 151,626 FFO 1 per share (0.26) (0.19) (0.15) (0.08) (0.45) (*) The number of shares is calculated as weighted average for the related period. FFO 2 (incl. disposal results and development activities) For the six months ended For the three months ended For the year ended In EUR thousand 30 Jun 2026 30 Jun 2025 30 Jun 2026 30 Jun 2025 31 Dec 2025 Adj. EBITDA Total 28,765 (19,622) 14,768 (19,441) (6,454) FFO 2 net interest expenses (122,441) (120,011) (61,051) (55,765) (241,773) Current income taxes (4,799) (3,771) (4,799) 1,448 (4,372) FFO 2 (98,474) (143,404) (51,081) (73,759) (252,599) No. of shares(*) 151,626 151,626 151,626 151,626 151,626 FFO 2 per share (0.65) (0.95) (0.34) (0.49) (1.67) (*) The number of shares is calculated as weighted average for the related period. 21 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Financial and asset position Investment properties increased due the positive fair value adjustments following the revaluation of development projects in H1 2026. Other non-current assets include other financial assets of EUR 123 million (mainly comprising loans against non-controlling shareholders of subsidiaries), investments in financial instruments of EUR 8 million, prop - erty, plant and equipment of EUR 10 million and restricted bank deposits of EUR 10 million. Inventories primarily include upfront sale projects and the land value of forward sale projects. Other current assets include other receivables (EUR 62 million), trade receivables (EUR 60 million) and restricted bank deposits (EUR 28 million). Non-current assets and liabilities held-for-sale reduced significantly mainly due to the disposals in H1. Interest-bearing debts include bonds, bank debt and the refinanced facilities as part of the recapitalisation completed in September 2024. Other liabilities include provisions (EUR 46 million), other current payables (EUR 121 million) includ - ing income tax payables of EUR 63 million, and trade payables (EUR 28 million). Non-controlling interests decreased primarily as a result of the participation of non-controlling-interest-holders in the loss of certain subsidiaries. As at 30 June 2026, the total interest-bearing nominal debts amounted to around EUR 3,515 million. The average inter - est rate on all outstanding debt was 7.1%, with a weighted average maturity of 2.9 years. 22 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Financial position In EUR thousand 30 June 2026 31 Dec 2025 Investment properties and advances related to investment properties 3,655,424 3,640,360 Other non-current assets 162,672 140,978 Non-current assets 3,818,096 3,781,338 Cash and cash deposits 154,769 213,737 Inventories 172,943 217,430 Other current assets 177,291 186,662 Current assets 505,003 617,829 Non-current assets held-for-sale 127,900 307,932 Total assets 4,450,999 4,707,099 Interest-bearing debts 3,373,682 3,442,173 Other liabilities 211,493 235,109 Deferred tax liabilities 166,436 170,302 Liabilities classified as available for sale - - Total liabilities 3,751,611 3,847,585 Total equity attributable to owner of the Company 744,895 841,313 Non-controlling interests (45,507) 18,201 Total equity 699,388 859,514 Total equity and liabilities 4,450,999 4,707,099 23 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Loan-to-value The table below shows the loan-to-value (LTV). 30 Jun 2026 In EUR thousand Group loan-to-value Non-controlling interests Total Borrowings from financial institutions 3,018,332 3,018,332 Commercial paper Bond loans 355,350 355,350 Foreign currency derivatives Net payables 11,966 11,966 Owner-occupied property (debt) Current accounts (equity characteristics) Cash and cash equivalents (154,769) (154,769) Net financial liabilities 3,230,879 3,230,879 Owner-occupied property Investment properties at fair value 3,655,424 3,655,424 Properties held for sale(*) 300,843 300,843 Properties under development Intangibles Net receivables Financial assets 122,846 122,846 Total property value 4,079,113 4,079,113 Loan-to-value 79.2% 79.2% (*) Considers inventories as well as non-current assets held for sale. 24 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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31 Dec 2025 In EUR thousand Group loan-to-value Non-controlling interests Total Borrowings from financial institutions 3,119,155 3,119,155 Commercial paper Bond loans 323,018 323,018 Foreign currency derivatives Net payables 24,718 24,718 Owner-occupied property (debt) Current accounts (equity characteristics) Cash and cash equivalents (213,737) (213,737) Net financial liabilities 3,253,154 3,253,154 Owner-occupied property Investment properties at fair value 3,640,360 3,640,360 Properties held for sale(*) 525,362 525,362 Properties under development Intangibles Net receivables Financial assets 96,740 96,740 Total property value 4,262,462 4,262,462 Loan-to-value 76.3% 76.3% (*) Considers inventories as well as non-current assets held for sale. 25 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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The table below shows the breakdown of net payables as included in the LTV calculation presented above. For the detailed methodology of the LTV calculation, please also refer to the beginning of this section. Net payables In EUR thousand 30 Jun 2026 31 Dec 2025 Investments in financial instruments 7,525 7,525 Restricted bank deposits 37,790 40,247 Contract assets 11,794 13,128 Trade receivables 59,535 50,059 Other receivables and financial assets 62,436 79,780 Advances paid on inventories 15,591 13,398 Deduct: Other financial liabilities (9,094) (9,094) Pension provisions (604) (604) Other payables (121,121) (114,770) Contract liabilities 0 0 Trade payables (27,885) (41,844) Provisions (46,363) (61,090) Prepayments received (1,570) (1,453) Non-current liabilities held for sale 0 0 Net payables (11,966) (24,718) 26 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Financial Overview
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Material Events In the reporting period 1. On 13 January 2026, Adler Group completed the sale of the development project “Kaiserlei” in Offenbach. 2. On 16 March 2026, Adler Real Estate GmbH, a subsid - iary of Adler Group, fully repaid the remaining outstand - ing amount of EUR 14.8 million of its notes maturing in April 2026. 3. On 19 March 2026, Adler Group completed the sale of the development project “Benrather Gärten” in Düsseldorf. 4. On 31 March 2026, Adler Group completed the first closing of the development project “Holsten Quartier” in Hamburg. This first closing comprises the largest part of the project. 5. On 31 March 2026, Adler Group completed the sale of “Kornversuchsspeicher“, an office property in Berlin. 6. On 2 April 2026, Adler Group completed the sale of “Hedemannstrasse“, a mixed-use property in Berlin. 7. On 24 June 2026, the Annual General Meeting (“AGM”) of Adler Group, following the recommendation of the Board of Directors, approved the appointment of AVEGA Revision S.à r.l. as the approved statutory auditor of the standalone annual accounts and consolidated financial statements of the Company for the financial year ending 31 December 2026. The engagement will continue until the Company's AGM to be held in 2027. Among other resolutions, the AGM also re-appointed Mr Stefan Brendgen and Mr Matthias Moser as directors of the Company for a period running from the date of this AGM until the annual general meeting Annual General Meeting to take place in the year 2029. 8. The Company repaid the 1L Facility in the aggregate amount of EUR 153 million (excluding accrued interest) in the first half of 2026. Additional information can be found on the Adler Group website: https://www.adler-group.com/en/investors/ publications/news . 27 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Material Events
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Forecast Report Forecast for 2026 Following certain disposals made from the yielding asset - portfolio, Adler Group expects to generate net rental in - come for 2026 in the range of EUR 124-129 million. In accordance with the Restructuring Plan, the Group con - tinues to focus on liquidity management and deleverag - ing through planned asset and portfolio disposals. Following the sanctioning of the Restructuring Plan in April 2023, the Company refrained from announcing an FFO 1 guidance for the year 2023 and thereafter due to the current situation of the Group which is primarily fo - cused on steering its liquidity situation and de-leveraging through asset and portfolio disposals. 28 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Forecast Report
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Opportunities and Risk Report In addition to the opportunities and risks presented in Adler Group S.A.'s Integrated Annual Report for financial year 2025, the first half of 2026 showed a stable trend in the Company's overall risk assessment. With regard to opportunities, reference is made to the Integrated Annual Report for 2025. Following further significant disposals during the first half of 2026 that resulted in significant cash proceeds and sub - stantial debt repayments, Adler Group has made further progress in partially redeeming its 1L New Money Facility. While the redemption of the 1L New Money Facility contin - ues with the inflow of disposal proceeds, almost all re - maining maturities in 2026 have now been addressed. For further details, see the section “Debt Maturity Sched - ule” provided by Investor Relations. In April 2026, Adler Group published its Integrated Annual Re- port for financial year 2025 with an unqualified audit opinion. For further details on the recent developments, please re - fer to the section “Material events” of the Interim Manage - ment Report. Risk management system Also in the first half of 2026, the further implementation of the comprehensive recapitalisation had an impact on the Group’s business structure, risk profile and planning as - sumptions. Against this background, the risk catalogue, risk weightings, correlation assumptions, risk ownership and the EUR ranges applied for risk quantification were reviewed and, where appropriate, adjusted. The objective was to ensure a consistent and risk-adequate representa - tion of the Group’s current structure and outlook. Compared to 31 December 2025, there have been no sig - nificant or major changes in the Risk Management System except for those described below. The successful disposal of several projects resulted in a reduced relative risk contribution of the ADLER Real Es - tate subgroup segment in favour of the Adler Group (stand-alone), the subgroup weightings applied for the aggregation of bottom-up assessed risks were adjusted as at 30 June 2026. • Adler Group (stand-alone): 70% (YE 2025: 60%) • ADLER Real Estate subgroup: 15% (YE 2025: 25%) • Consus subgroup: 15% (YE 2025: 15%) As at 30 June 2026, the EUR ranges applied for risk quantifi- cation were adjusted as follows to reflect the corporate plan- ning horizon, which is based on an 18-month planning period. The reduced materiality thresholds are attributable to the restructuring plan (downsizing). The internal risk report is prepared on a half-year basis (as at 30 June and 31 December of the given year). 29 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Opportunities and Risk Report
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Risk class of expected loss Liquidity (HY 2026) (in EUR million) Liquidity (YE 2025) (in EUR million) Total assets (HY 2026) (in EUR million) Total assets (YE 2025) (in EUR million) Threatening (6) >= 75 >= 90 >= 120 >= 180 Severe (5) >= 37.5 - < 75 >= 45 - < 90 >= 60 – < 120 >= 90 – < 180 Serious (4) >= 11.25 - < 37.5 >= 13.5 - < 45 >= 18 – < 60 >= 27 – < 90 Significant (3) >= 3.75 - < 11.25 >= 4.5 - < 13.5 >= 6 - < 18 >= 9 - < 27 Medium (2) >= 1.5 - < 3.75 >= 1.8 - < 4.5 >= 2.4 - < 6 >= 3.6 - < 9 Low (1) < 1.5 < 1.8 < 2.4 < 3.6 Quantification scoring model The risks with a high probability of occurrence and at the same time with a high potential amount of damage are shown in the red area of the heat map as presented in the FY 2025 management report. As at 30 June 2026, the number of such risks remained at zero. As at 31 December 2025, the assessment as at 30 June 2026 was characterised for Adler Group by a further im - proved economic environment, a continued recovery of the real estate market as well as progress made in im - proving the Company’s structure and processes. Repu - tation risk was upgraded to the yellow area, while risks from forward sales projects could be downgraded to the green area. In total, 7 (YE 2025: 7) risk sub-categories are located in the yellow area and 25 (YE 2025: 25) in the green area of the heat map. Expected loss (in EUR million) affecting liquidity resp. affecting equity > = 75 or > = 120 6 1 37.5 – < 75 or 60 – < 120 5 11.25 – < 37.5 or 18 – < 60 4 1 1 3.75 – < 11.25 or 6 – < 18 3 1 1 1 1.5 – < 3.75 or 2.4 – < 6 2 2 1 < 1.5 or < 2.4 1 2 8 11 1 1 1 2 3 4 5 6 Probability of occurrence (in %) < 10 10 – < 25 25 – < 50 50 – < 75 75 – < 90 > = 90 30 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Opportunities and Risk Report
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Qualitative assessment As of 30 June 2026, unchanged from 31 December 2025, no risk sub-categories have been assigned a risk score greater than 4.5 according to the qualitative assessment and are therefore considered highly relevant. Neverthe - less, the following risks are considered to be material to the Company (i.e., with a weighting of more than 5% in the overall risk assessment): “risks from recapitalisation and from other non-financial covenants” (qualitative risk score of 3.65) and “risks from upfront sales projects” (qualitative risk score of 4.03) as well as “risks from financial cove - nants”, “liquidity risks” and “valuation risks” with risk as - sessments at or below 3.0 (the applied threshold is defined as greater than 3.0) as at 30 June 2026. Highly relevant and material risks The Group has identified no risks or risk sub-categories as highly relevant (i.e. with a risk score of more than 4.5 in the qualitative assessment) and material (i.e. with a weighting in the overall risk assessment exceeds 5%). There are no risks classified as risks that threaten the ex - istence of the Company according to the quantitative risk assessment. Overall assessment of risks and opportuni - ties by the Senior Management Based on the ongoing stabilisation and successful busi - ness in the first half of 2026, the Senior Management of Adler Group has identified no risks threatening the Com - pany’s continued existence as at 30 June 2026. To date, the Senior Management does not see any financial and financing risks or risks from the operating business that could jeopardise the mid-term continuation of Adler Group as a going concern in terms of its results of oper - ations and/or net assets. Nevertheless, despite proactive measures, the going concern assessment is inherently subject to certain risks and uncertainties. 31 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Opportunities and Risk Report
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Dr. Karl Reinitzhuber CEO Thorsten Arsan CFO 26 August 2026 Responsibility Statement We confirm, to the best of our knowledge, that the Condensed Interim Financial Statements of Adler Group S.A. presented in these Q2 2026 Quarterly Financial Statements, prepared in conformity with the International Financial Reporting Standards as issued by the International Accounting Standards Board and as adopted by the European Union, give a true and fair view of the net assets, financial and earnings position of the Group, and that the Interim Management Report includes a fair review of the development of the business and describes the main opportunities, risks, and uncertainties associated with the Group for the remaining six months of the year. 32 Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Responsibility Statement
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33Adler Group Q2 2026 Quarterly Financial Statements 2 INTERIM MANAGEMENT REPORT Responsibility Statement
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34 Adler Group Q2 2026 Quarterly Financial Statements Condensed Consolidated Interim Financial Statements 34 Adler Group Q2 2026 Quarterly Financial Statements
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35 Adler Group Q2 2026 Quarterly Financial Statements 3 Condensed Consolidated Interim Financial Statements 36 Condensed Consolidated Interim Statement of Financial Position 38 Condensed Consolidated Interim Statement of Profit or Loss 39 Condensed Consolidated Interim Statement of Comprehensive Income 40 Condensed Consolidated Interim Statement of Cash Flows 42 Condensed Consolidated Interim Statement of Changes in Equity 44 Notes to the Condensed Consolidated Interim Financial Statements 35
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In EUR thousand Note 30 June 2026 31 Dec 2025 Assets Non-current assets Investment properties 5A 3,655,424 3,640,360 Investments in financial instruments 7,525 7,525 Property, plant and equipment 9,698 12,870 Other financial assets 5C 122,846 96,740 Derivatives 8,163 7,905 Restricted bank deposits 9,855 9,974 Right-of-use assets 4,551 5,934 Other intangible assets 34 30 Total non-current assets 3,818,096 3,781,338 Current assets Inventories 5E 172,943 217,430 Restricted bank deposits 27,935 30,273 Trade receivables 5F 59,535 50,059 Other receivables and financial assets 5G 62,436 79,780 Contract assets 5D 11,794 13,128 Derivatives - 24 Cash and cash equivalents 154,769 213,737 Advances paid on inventories 15,591 13,398 Total current assets 505,003 617,829 Non-current assets held-for-sale 5H 127,900 307,932 Total assets 4,450,999 4,707,099 Condensed Consolidated Interim Statement of Financial Position 36 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Statement of Financial Position
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In EUR thousand Note 30 June 2026 31 Dec 2025 Shareholders' equity Share capital 188 188 Share premium 1,775,304 1,775,304 Equity of Group's hybrid investors 5I 716,707 716,707 Reserves 206,288 206,288 Retained earnings (1,953,592) (1,857,174) Total equity attributable to owners of the Company 5I 744,895 841,313 Non-controlling interests (45,507) 18,201 Total equity 5I 699,388 859,514 Liabilities Non-current liabilities Corporate bonds 5J 355,350 308,218 Other loans and borrowings 5K 2,899,137 3,077,879 Other financial liabilities 9,094 9,094 Pension provisions 604 604 Lease liabilities 2,132 3,321 Deferred tax liabilities 166,436 170,302 Total non-current liabilities 3,432,753 3,569,418 Current liabilities Corporate bonds 5J - 14,800 Other loans and borrowings 5K 119,195 41,276 Trade payables 27,885 41,844 Other payables 5L 121,121 114,767 Provisions 5L 46,363 61,090 Lease liabilities 2,724 2,937 Prepayments received 5M 1,570 1,453 Total current liabilities 318,858 278,167 Total shareholders' equity and liabilities 4,450,999 4,707,099 Date of approval: 26 August 2026Dr. Karl Reinitzhuber CEO Thorsten Arsan CFO 37 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Statement of Financial Position
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For the six months ended 30 June For the three months ended 30 June In EUR thousand Note 2026 2025 2026 2025 Revenue 6A 284,191 106,692 47,582 49,327 Cost of operations 6B (245,661) (178,576) (26,402) (134,594) Gross profit 38,530 (71,884) 21,180 (85,267) General and administrative expenses 6C (42,833) (59,961) (21,207) (26,923) Other expenses 6D (24,229) (62,718) (16,127) (33,560) Other income 6E 21,288 42,933 9,340 29,077 Changes in fair value of investment properties 1,600 (63,348) 986 (63,348) Results from operating activities (5,644) (214,978) (5,828) (180,021) Finance income 6F 10,485 14,701 5,459 9,075 Finance costs 6F (164,032) (191,510) (82,394) (54,364) Net finance income / (costs) (153,547) (176,809) (76,935) (45,289) Net income / (losses) from investments in associated companies - (1) - (1) Profit / (loss) before tax (159,191) (391,788) (82,763) (225,311) Income tax income / (expense) (935) 10,507 (5,261) 14,043 Profit / (loss) for the period (160,126) (381,281) (88,024) (211,268) Profit attributable to: Owners of the Company (96,418) (350,144) (86,209) (189,778) Non-controlling interests (63,708) (31,137) (1,815) (21,490) Profit / (loss) for the period (160,126) (381,281) (88,024) (211,268) Earnings per share in EUR (undiluted) 6G - - - - Earnings per share in EUR (diluted) 6G - - - - Condensed Consolidated Interim Statement of Profit or Loss 38 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Statement of Profit or Loss
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For the six months ended 30 June For the three months ended 30 June In EUR thousand 2026 2025 2026 2025 Profit / (loss) for the period (160,126) (381,281) (88,024) (211,268) Items that may be reclassified subsequently to profit or loss Currency translation reserve - (256) - (734) Reserve from financial assets measured at fair value through other comprehensive income - (44) - - Total other comprehensive income / (loss) - (300) - (734) Total comprehensive income / (loss) for the period (160,126) (381,581) (88,024) (212,002) attributable to: Owners of the Company (96,418) (350,427) (86,209) (189,989) Non-controlling interests (63,708) (31,154) (1,815) (22,013) Total comprehensive income / (loss) for the period (160,126) (381,581) (88,024) (212,002) Condensed Consolidated Interim Statement of Comprehensive Income 39 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Statement of Comprehensive Income
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Condensed Consolidated Interim Statement of Cash Flows For the six months ended 30 June For the three months ended 30 June In EUR thousand Note 2026 2025 2026 2025 Cash flows from operating activities Profit / (loss ) for the period (160,126) (381,281) (88,024) (211,268) Adjustments for: Depreciation 4,521 3,961 1,938 2,079 Change in fair value of investment properties 5A (1,600) 63,348 (986) 63,348 Non-cash other income and expense 6B, 5L 13,527 108,310 20,625 106,117 Non-cash income from at-equity valued investment associates - (1) - (1) Net finance costs / (income) 6F 153,547 176,809 76,935 45,289 Income tax expense 935 (10,506) 5,261 (14,042) Changes in net working capital (9,944) 51,525 (57,136) 39,594 Income tax paid 5,472 (18,105) 4,064 (8,282) Net cash from operating activities 6,332 (5,940) (37,323) 22,834 Cash flows from investing activities Purchase of and CapEx on investment properties 5A (18,153) (12,555) (9,659) (6,746) Proceeds from investment property disposal and/or portfolio share deal 5H 179,399 18,729 45,294 14,837 Purchase of and CapEx on property, plant and equipment (98) (3,138) (48) (2,893) Interest received 1,221 1,804 989 174 Proceeds from sale of fixed assets 268 199 9 47 Repayment of long-term loans 5K - 10,737 - - Disposal of subsidiaries, net of cash disposed - 298,286 - - Change in short-term restricted bank deposits, net 119 1,019 83 324 Net cash from (used in) investing activities 162,756 315,081 36,668 5,743 40 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Statement of Cash Flows
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For the six months ended 30 June For the three months ended 30 June In EUR thousand Note 2026 2025 2026 2025 Cash flows from financing activities Repayment of bonds 5J (14,800) (280,922) - (280,922) Long-term loans received 5K - 294,512 - 280,927 Repayment of long-term loans 5K (169,928) (303,398) (127,875) (28,557) Repayment of short-term loans 5K (5,565) (14,912) (2,738) (4,428) Interest paid 6F (36,186) (20,172) (14,498) (7,956) Payment of lease liabilities (1,577) (1,626) (766) (438) Transaction costs - (18,583) - - Net cash from (used in) financing activities (228,056) (345,101) (145,877) (41,374) Change in cash and cash equivalents during the period (58,968) (35,960) (146,533) (12,797) Changes in the carrying amount of cash and cash equivalents that are presented among assets held-for-sale as part of a disposal group - 73,545 - 4,841 Cash and cash equivalents at the beginning of the period 213,737 246,990 301,301 292,530 Cash and cash equivalents at the end of the period 154,769 284,575 154,769 284,575 41 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Statement of Cash Flows
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Condensed Consolidated Interim Statement of Changes in Equity In EUR thousand Share capital Share premium Equity of Group's hybrid in- vestors Hedging reserve Currency trans- lation reserve Other capital reserves Reserve finan- cial assets measured at FVTOCI Retained earnings Total Non-con- trolling interests Total equity Balance as at 1 January 2026 188 1,775,304 716,707 145 10,476 315,746 (120,079) (1,857,174) 841,313 18,201 859,514 Profit / (loss) for the year - - - - - - - (96,418) (96,418) (63,708) (160,126) Other comprehensive income / (loss), net of tax - - - - - - - - - - - Total comprehensive income / (loss) for the year - - - - - - - (96,418) (96,418) (63,708) (160,126) Transactions with ow- ners, recognised directly in equity Transactions with non- controlling interest wit- hout a change in control - - - - - - - - - - - Change in consolidation scope related to sale - - - - - - - - - - - Balance as at 30 June 2026 188 1,775,304 716,707 145 10,476 315,746 (120,079) (1,953,592) 744,895 (45,507) 699,388 42 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Statement of Changes in Equity
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In EUR thousand Share capital Share premium Equity of Group's hybrid in- vestors Hedging reserve Currency trans- lation reserve Other capital reserves Reserve finan- cial assets measured at FVTOCI Retained earnings Total Non-con- trolling interests Total equity Balance as at 1 January 2025 188 1,775,304 716,707 145 16,949 315,746 (146,239) (1,352,066) 1,326,734 238,444 1,565,178 Profit / (loss) for the year - - - - - - - (350,144) (350,144) (31,137) (381,281) Other comprehensive income / (loss), net of tax - - - - (239) - (44) - (283) (17) (300) Total comprehensive income / (loss) for the year - - - - (239) - (44) (350,144) (350,427) (31,154) (381,581) Transactions with ow- ners, recognised directly in equity Transactions with non- controlling interest wit- hout a change in control - - - - - - - (2,505) (2,505) 5,301 2,796 Change in consolidation scope related to sale - - - - - - - - - (168,432) (168,432) Balance as at 30 June 2025 188 1,775,304 716,707 145 16,710 315,746 (146,283) (1,704,715) 973,802 44,159 1,017,961 43 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Condensed Consolidated Interim Statement of Changes in Equity
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Note 1 – Adler Group S.A. Adler Group S.A. (the “Company” or “Adler Group”) is a public limited liability company (société anonyme) incorporated un- der Luxembourg law. The address of the Company’s regis - tered office is 55 Allée Scheffer, 2520 Luxembourg, Grand Duchy of Luxembourg. The Company is specialised in and focused on the purchase, management and development of income-producing multi-family residential real estate. In addition to being ac - countable for the condition of its apartments and build - ings, Adler Group S.A. assumes responsibility for the ten - ants, its own employees and the surrounding environment. The portfolio of Adler Group S.A. and its subsidiaries is situated in or on the outskirts of major urban areas with a significant portion in Berlin. Adler Group provides an inte - grated German residential platform that covers the entire real estate value chain, from acquisition of land, planning and development of projects to property management and letting of residential units. The condensed consolidated interim financial statements of the Company as at 30 June 2026 and for the six-month period then ended comprise the Company and its sub - sidiaries (together referred to as the “Group”). Note 2 – Basis of preparation A. Statement of compliance The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Fi - nancial Reporting as applicable in the European Union (“EU”). They do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and trans- actions that are significant for understanding the changes in the Group’s financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December 2025. These condensed consolidated interim financial statements are presented in Euro (“EUR”) and have been rounded to the nearest thousand except where otherwise indicated. Due to rounding, the figures reported in tables and cross-referenc - es may deviate from their exact values as calculated. These condensed consolidated interim financial state - ments were authorised for issue by the Company’s Board of Directors on 27 August 2026. B. Use of judgments, estimates and fair value measurements In preparing these condensed consolidated interim finan - cial statements, management has made judgments, esti - mates and assumptions that affect the application of ac - counting policies and the reported amounts of assets and liabilities, income and expense. This also applies to fair value measurements and the determination of fair values. Actual results may differ from these estimates. Unless specified otherwise in the following sections, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the consolidated financial statements as at and for the year ended 31 December 2025. 44 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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C. Uncertainties on the continuation as a go - ing concern The going concern assessment is inherently subject to - certain risks and uncertainties. The consolidated financial statements of the Company, presuppose the entity’s abil - ity to continue as a going concern. Following the comprehensive recapitalisation completed in September 2024, the Group has further improved its - debt profile and successfully refinanced its 1L and 1.5L Facilities, securing a reduction in the marginal cost of debt. While the Group’s cost of capital remains elevated, these refinancings, combined with the successful exten - sion of various secured bank facilities to 2028, have pro - vided the basis for the Group’s going concern assess - ment. The Group remains committed to a structured deleverag - ing of the balance sheet, primarily through the allocation of net proceeds from targeted asset divestments to the amortisation of debt. The successful execution of the 2024/2025 refinancing measures, coupled with contin - ued stabilisation in the real estate market, bolsters the Group’s assertion of its going concern status, underpin - ning its capability to fulfil financial commitments. The continuation of business operations, the realisation of asset sales, and the settlement of liabilities in the ordi - nary course of business for at least 12 months from the reporting date form the basis for the going concern as - sessment. Note 3 – Accounting policies The accounting policies applied by the Group in these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidat - ed financial statements for the year ended 31 December 2025. These condensed consolidated interim financial statements should therefore be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2025. A. Initial application of new standards, amendments to standards and interpretations The following new or amended standards and inter - pretations became effective and have been applied as per 1 January 2026 without any material impact on the consolidated financial statements. • Annual Improvements Volume 11: Amendments to IFRS 1 First-time Adoption of International Financial Report - ing Standards, IFRS 7 Financial Instruments: Disclo - sures, IFRS 9 Financial Instruments, IFRS 10 Consoli - dated Financial Statements and IAS 7 Statement of Cash Flows (issued on 18 July 2024) • Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 (issued on 18 De - cember 2024) • Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 (issued on 30 May 2024) 45 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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B. New standards and interpretations not yet applied Application of the following standards, interpretations and amendments was not mandatory for the 2026 financial year and the Group did not elect to apply them in advance. The Group intends to apply these standards, interpretations and amendments from their respective effective dates: IFRS Standards and Interpretations Title Endorsement status in the EU Effective date of initial application in the EU IFRS 18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024) IFRS 18 Presentation and Disclosures endorsed 1 January 2027 IFRS 20 Regulatory Assets and Regulatory Liabilities (issued on 27 May 2026) IFRS 20 Regulatory Assets and Regulatory Liabilities pending pending IFRS 19 Subsidiaries without Public Account- ability: Disclosures (issued on 9 May 2024) IFRS 19 Subsidiaries without Public Accountability pending pending Amendments IAS 28 Amendments to the Fair Value Option in IAS 28 Investments in Associ- ates and Joint Ventures (issued on 26 June 2026) pending pending IAS 21 Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency (issued on 13 November 2025) pending pending IFRS 19 Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on 21 August 2025) pending pending In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1 Pres - entation of Financial Statements. IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027. Accordingly, the Group will apply IFRS 18 from 1 January 2027 using the full retrospective approach, including the re - statement of comparative information. IFRS 18 does not change the recognition or measurement of assets, liabilities, income or expenses. Instead, it introduces new requirements for the presentation and disclosure of financial information, with the aim of improving comparability and transparency in financial reporting. The standard introduces a revised structure for the statement of profit or loss, includ - ing defined categories for income and expenses and new mandatory subtotals, such as operating profit and profit before financing and income taxes. It also introduces enhanced requirements regarding the aggregation and disaggregation of information and requires entities to disclose management-defined performance measures (MPMs) in a single note, includ - ing reconciliations to the most directly comparable IFRS-defined subtotal and related explanatory information. The Group has commenced its assessment of the impact of adopting IFRS 18 on its consolidated financial statements. The assessment includes, among other matters, the future presentation of the statement of profit or loss, the classifica - 46 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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tion of income and expenses within the prescribed categories, the identification of management-defined performance measures, and the related disclosure requirements. At the reporting date, the Group’s assessment of the impact of IFRS 18 is ongoing. The Group continues to evaluate the effects of the new requirements on the presentation and disclosures in its consolidated financial statements. Not yet effective IASB standards and amendments are not expected to have a material impact on the consolidated fi - nancial statements. Note 4 – Changes in consolidation scope There were no changes in the scope of consolidation during the reporting period. Note 5 – Selected notes to the condensed consolidated interim state - ment of financial position A. Investment properties Investment properties — residential In EUR thousand 30 June 2026 31 Dec 2025 Balance as at 1 January 3,458,959 3,486,802 Other capital expenditure 16,607 27,426 Transfer from investment properties to assets or disposal groups classified as held-for-sale (4,687) (67,147) Transfer from assets or disposal groups classified as held-for-sale to investment properties 901 - Disposal of investment properties (581) (1,243) Fair value adjustments 4,777 13,121 Balance as at end of period 3,475,976 3,458,959 Investment properties under construction — project developments In EUR thousand 30 June 2026 31 Dec 2025 Balance as at 1 January 181,401 477,030 Other capital expenditure 1,547 1,281 Transfer from investment properties to assets or disposal groups classified as held-for-sale - (191,340) Removals from the scope of consolidation (323) - Fair value adjustments (3,177) (105,570) Balance as at end of period 179,448 181,401 47 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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According to the Group’s fair value valuation policies, investment properties generally undergo a detailed valuation as at 30 June and 31 December of each year, unless the Group identifies material changes in the value of these properties at an earlier date. The fair value of the residential investment properties as at 30 June 2026 was determined by the valuation expert CBRE, an independent industry specialist that has appropriate, recognised professional qualification and up-to-date experience regarding the location and category of the properties. The fair value of the investment properties under construction (pro - ject development) was determined by the valuation expert NAI Apollo, an independent industry specialist with appropriate, recognised professional qualifications and up-to-date experience regarding the location and category of the properties. The fair value measurement for all the investment properties has been categorised as Level 3 fair value due to prevailing use of unobservable inputs to the adopted valuation method. The Group values its portfolio of residential investment properties using the discounted cash flow (DCF) method. Under the DCF method, the net rental income (here: expected future rental income and costs of the residential assets) is forecasted for a period of 10 years (the cashflow period) and discounted to the date of valuation. For the determination of the net rental income after the cashflow period, a capitalisation rate is used. The residual value method is applied for investment properties under construction (project development). This approach is common to calculate the value of real estate develop- ments in planning stage or still under construction. The approach is a deductive method to derive the market value of an undeveloped project according to its construction/development progress and represents the amount a market participant would be willing to pay for the property (land). The approach is based on the assumption that the market value of an ongoing project can be derived from an indicative market value less the anticipated costs for the realisation of the project (e.g., con- struction, marketing, financing costs). Financing costs are considered for the interim financing for both the land and con - struction, using a project-specific market interest rate applicable throughout the development period until completion. The following tables outline the key valuation parameters for residential properties as at 30 June 2026 and as at 31 December 2025. Location Balance as at 30 June 2026 Berlin Other Total Value (EUR/m²) 3,073 2,180 3,069 Average residential in-place rent 8.90 8.12 8.89 CBRE market rent (EUR/m²) 10.41 10.94 10.41 Multiplier (current rent) 28.86 22.19 28.83 Multiplier (CBRE market rent) 22.97 16.43 22.94 Discount rate (%) 4.94 5.23 4.94 Capitalisation interest rate (%) 3.00 3.78 3.01 Market rental growth (%) 2.42 1.69 2.41 Stabilised vacancy rate (%) (*) 0.88 7.73 0.94 Fair value (EUR thousand) 3,459,876 16,100 3,475,976 (*) In the current year, the vacancy rate has been amended to include both the structural and turnover vacancy rate (i.e. stabilised vacancy rate). 48 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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Location Balance as at 31 Dec 2025 Berlin Other Total Value (EUR/m²) 3,053 2,056 3,047 Average residential in-place rent 8.69 7.54 8.68 CBRE market rent (EUR/m²) 9.88 10.30 9.88 Multiplier (current rent) 29.09 22.44 29.05 Multiplier (CBRE market rent) 23.82 16.07 23.78 Discount rate (%) 4.87 5.16 4.87 Capitalisation interest rate (%) 2.94 3.77 2.94 Market rental growth (%) 2.42 1.61 2.41 Stabilised vacancy rate (%) (*) 0.92 4.52 0.96 Fair value (EUR thousand) 3,440,086 18,872 3,458,959 (*) In the prior year, the vacancy rate only included the structural vacancy rate and has been amended to include both the structural and turnover vacancy rate (i.e. stabilised vacancy rate). The following table outlines the key valuation parameters for investment properties under construction (development) as at 30 June 2026 and as at 31 December 2025. Valuation parameters for investment properties under construction 30 June 2026 31 Dec 2025 Market rent, weighted average (EUR) 17.77 14.12 Project development costs (EUR/m²) 3,973 4,042 Cost of financing, weighted average (in %) 3.91 4.17 Sensitivity analysis The main value drivers influenced by the market are the market rents and their development, current rent increases, the vacancy rate and interest rates. The effect of possible fluctuations in these parameters is shown separately for each para - meter and group in the following table for residential investment properties. Additional value drivers are cost of financing and construction costs for the investment properties under construction. Interactions between the parameters are pos - sible but cannot be quantified due to the complexity of the interrelationships: Investment properties – residential Valuation parameters current year Change in parameters In EUR thousand Change in values % Market rent (EUR/m²) 10% 221,366 6.37 Stabilised vacancy rate (%) 1% (48,176) (1.39) Discount and capitalisation rate (%) 25bps (277,712) (7.99) 49 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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The following table gives an overview of the sensitivity analysis for the prior year: Valuation parameters prior year Change in parameters In EUR thousand Change in values % Market rent (EUR/m²) 10% 221,335 6.40 Stabilised vacancy rate (%) 1% (47,831) (1.38) Discount and capitalisation rate (%) 25bps (284,563) (8.23) Assuming all other variables remain constant, a negative change in the parameters at the same percentage would have a similar impact on the value, albeit in the opposite direction. Investment properties – project development (under construction) Sensitivity current year Market rent Cost of financing Construction costs Change in parameters (10%) 10% (0.25%) 0.25% (10%) 10% Change of fair value (EUR thousand) (52,400) 52,400 35,400 (31,100) 58,500 (58,400) The following table gives an overview of the sensitivity analysis for the prior year: Sensitivity prior year Market rent Cost of financing Construction costs Change in parameters (10%) 10% (0.25%) 0.25% (10%) 10% Change of fair value (EUR thousand) (97,200) 97,200 63,700 (56,200) 115,800 (115,900) B. Investments accounted under the equity method In EUR thousand 30 June 2026 31 Dec 2025 Balance as at 1 January - 502 Share in profit and loss - (47) Impairment - (353) Removals from the scope of consolidated entities - (102) Balance as at end of period - - investments in associates have a carrying amount of 0 TEUR and relate to AB Immobilien B.V. (AB Immobilien) and Caesar JV Immobilienbesitz und Verwaltungs GmbH (Caesar). 50 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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C. Other financial assets Other financial assets include the following items: In EUR thousand 30 June 2026 31 Dec 2025 Loans to holders of non-controlling interest in subsidiaries 120,556 93,545 Miscellaneous other financial assets 2,290 3,195 Other financial assets 122,846 96,740 The loans to holders of non-controlling interests in subsidiaries are non-current, bear market-rate interest, and are se - cured by share liens. The increase in Loans to holders of non-controlling interest in subsidiaries is primarily due to the reclassification of receivables from current to non-current, following an extension of their contractual maturity terms (refer to Note 5G). D. Contract assets and liabilities Contract assets and liabilities mainly result from development contracts with customers. The following table provides in - formation about contract assets and contract liabilities from contracts with customers: In EUR thousand 30 June 2026 31 Dec 2025 Gross contract assets - current 177,388 179,684 Prepayments received on current contract balances (165,594) (166,556) Net contract asset - current 11,794 13,128 E. Inventories Inventories also include the land from forward sales and can be broken down as follows: In EUR thousand 30 June 2026 31 Dec 2025 Real Estate "Trading properties (including condominiums)" 172,942 217,429 Other inventories: not development 1 1 Total balance 172,943 217,430 Based on the updated estimates of the expected sales prices, a write-off of EUR 17,301 thousand (prior period: EUR 29,738 thousand) was recognised in cost of operations. The expected sales prices were determined by the valu - ation expert NAI Apollo, an independent valuation expert with appropriate, recognised professional qualifications and up-to-date experience regarding the location and category of the properties. 51 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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F. Trade receivables As at the reporting date, trade receivables mainly consist of rental receivables (EUR 13,034 thousand; 31 December 2025: EUR 15,229 thousand), receivables from the sale of real estate inventories (EUR 4,025 thousand; 31 December 2025: EUR 4,025 thousand) and receivables from property development (EUR 28,180 thousand; 31 December 2025: EUR 16,010 thousand). The balances represent gross amounts less allowances for expected credit losses. G. Other receivables and financial assets – current In EUR thousand 30 June 2026 31 Dec 2025 Receivables from income tax 18,658 23,471 Receivables from other taxes 13,694 11,372 Advances to suppliers 5,374 3,974 Prepaid expenses 10,589 1,931 Miscellaneous other receivables (non-financial) 6,935 3,419 Total other receivables (non-financial) 55,250 44,167 Receivables against non-controlling shareholders of subsidiaries (*) - 25,593 Loans 4,337 4,054 Deposits 2,849 3,470 Miscellaneous other receivables (financial) - 2,496 Other receivables (financial) 7,186 35,613 Total other receivables and financial assets 62,436 79,780 (*) Reclassification to other financial assets (refer to Note 5C). H. Non-current assets and liabilities held-for-sale The non-current assets classified as held-for-sale amount to EUR 127,900 thousand (31 December 2025: EUR 307,932 thousand) and comprise mostly development projects designated for disposal through individual assets sales. They are measured at fair value determined based on independent valuation reports or observed transaction prices in case of sale agreement. I. Equity The equity of the Group’s hybrid investors amounts to EUR 716,707 thousand (31 December 2025: EUR 716,707 thou - sand) and comprises subordinated perpetual notes. The notes are classified as equity as they are perpetual, and the Group has the unconditional right to defer payments. The nominal amount of the subordinated perpetual notes, including accumulated Payment-In-Kind (PIK) interest, stood at EUR 2,610,165 thousand as of 30 June 2026 (31 December 2025: EUR 2,531,805 thousand). 52 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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J. Corporate bonds These liabilities are structured as follows as at the balance sheet date: In EUR thousand 30 June 2026 31 Dec 2025 Adler Bond 2018/2026 - 14,800 AGPS Bond Reinstated 2L 2024/2030 355,350 308,218 Total balance 355,350 323,018 On 16 March 2026, Adler Real Estate GmbH, a subsidiary of Adler Group, fully repaid the remaining outstanding amount of EUR 14.8 million of its notes maturing in April 2026 (Adler Bond 2018/2026). As at 30 June 2026, the Group was compliant with the covenants stipulated in the bond agreements. K. Other loans and borrowings During the first half of 2026, the Group used proceeds from asset disposals to repay the 1L Facility in an aggregate principal amount of EUR 153.0 million, excluding accrued interest. In addition, proceeds from the sale of a real estate asset were used to make an early repayment of EUR 15.0 million of a bank loan originally maturing in March 2028. The Group also refinanced a bank loan with a nominal amount of EUR 8.5 million upon its maturity. The new loan ma - tures on 29 December 2028 and bears interest at a fixed rate of 4.3% per annum. At the end of June 2026, the Compa - ny agreed to extend several bank loans with an aggregate nominal amount of EUR 6.0 million that were due in 2026. These loans now mature on 31 December 2028. All loans are secured by assets (investment properties and inventory properties, financial assets, trade and other re - ceivables, cash and cash equivalents). As at 30 June 2026, other loans and borrowings of Adler Group carry an average effective interest rate (i.e., considering the swap interest hedging effect from variable to fixed interest) of 7.3 percent per annum including the New Money Facility (as at 31 December 2025: 7.2 percent). The average maturity of other loans and borrowings including the New Money Facility is 2.8 years (as at 31 December 2025: 3.2 years). As at 30 June 2026, the Company was in compliance with all applicable financial covenants. 53 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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L. Provisions, other payables and contingent liabilities In EUR thousand 30 June 2026 31 Dec 2025 Provisions for litigations 12,241 12,982 Onerous contracts 6,514 13,509 Other provisions 27,608 34,599 Provisions 46,363 61,090 Income tax payables 62,971 52,870 Accrued expenses 1,038 3,256 Deferred income 5,875 6,170 Value added tax 6,872 6,611 Miscellaneous other payables (non-financial) 1,164 1,534 Total other payables (non-financial) 77,920 70,441 Accrued interest 12 593 Tenants' deposits 23,083 20,380 Liability to holders of non-controlling interest in subsidiaries 592 3,254 Purchase price liabilities 9,626 8,453 Prepayments received 872 1,384 Security retentions - 4,907 Miscellaneous other payables (financial) 9,016 5,355 Total other payables (financial) 43,201 44,326 Total provisions and other payables 167,484 175,857 The provision for onerous contracts decreased by EUR 6,995 thousand mainly through utilisation as underlying costs were incurred in the course of construction progress. The decrease in other provisions mainly reflects the utilisation of provisions for outstanding invoices and accruals based on the stage of completion for construction services received. Contingent liabilities In 2025, a legal dispute of EUR 18 million was initiated against a Group subsidiary regarding a lease termination, which was previously disclosed as a contingent liability. Pursuant to a court order dated 3 July 2026, the litigation was settled through an agreement with the lessor. As an adjusting event after the reporting period, the Group has recognised a provision of EUR 4.5 million in the interim financial statements as of 30 June 2026, to reflect the settlement obligation. M. Prepayments received Prepayments received by the Group on contract assets and liabilities (development projects under the scope of IFRS 15) are included in the respective asset or liability balance. Prepayments received on inventories (development projects under the scope of IAS 2) and other assets are disclosed separately in the balance sheet. 54 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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Note 6 – Selected notes to the condensed consolidated interim state - ment of profit and loss A. Revenue for the six months ended 30 June In EUR thousand 2026 2025 Net rental income 63,058 68,212 Revenue from charged cost of utilities 26,710 38,069 Revenue from property development 12,811 (1,027) Revenue from the sale of trading properties 2,371 - Revenue from real estate inventories disposed of 178,754 - Miscellaneous other revenue 487 1,438 Total 284,191 106,692 Disaggregation of revenue The following table presents the revenue streams and their allocation to the segments according to IFRS 15.114 in addi - tion to rental income which represents a major source of income in the Group: 1 Jan - 30 June 2026 Segments Residential Property manage- ment Privat- isation Adler RE Consus Consoli- dation Total Revenue from charged costs of utilities 18,962 - 10,950 - (8,951) 20,961 Revenue from sale of trading properties - 1,947 424 - - 2,371 Revenue from property development contracts - - - 12,811 - 12,811 Revenue from real estate inventories disposed of 48,004 - - 130,750 - 178,754 Miscellaneous other revenue - - - 836 (349) 487 Revenue from contracts with customers (IFRS 15) 66,966 1,947 11,374 144,397 (9,300) 215,384 thereof: products and services transferred at a point in time 48,004 1,947 424 130,750 - 181,125 thereof: products and services transferred over time 18,962 - 10,950 13,647 (9,300) 34,259 Rental income (IFRS 16) 52,012 - 9,895 1,151 - 63,058 Revenue from ancillary costs (IFRS 16)(*) 5,255 - 494 - - 5,749 Rental income (IFRS 16) 57,267 - 10,389 1,151 - 68,807 Revenues (IFRS 15/IFRS 16) 124,233 1,947 21,763 145,548 (9,300) 284,191 (*) Includes land tax and building insurance. 55 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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1 Jan - 30 June 2025 Segments Residential Property manage- ment Privat- isation Adler RE Consus Consoli- dation Total Revenue from charged costs of utilities 30,706 - 18,376 - (16,697) 32,385 Revenue from property development contracts - - - (1,027) - (1,027) Miscellaneous other revenue - - - (9,459) 10,897 1,438 Revenue from contracts with customers (IFRS 15) 30,706 - 18,376 (10,486) (5,800) 32,796 thereof: products and services transferred at a point in time - - - - - - thereof: products and services transferred over time 30,706 - 18,376 (10,486) (5,800) 32,796 Rental income (IFRS 16) 51,473 - 15,473 1,266 - 68,212 Revenue from ancillary costs (IFRS 16)(*) 5,149 - 535 - - 5,684 Rental income (IFRS 16) 56,622 - 16,008 1,266 - 73,896 Revenues (IFRS 15/IFRS 16) 87,328 - 34,384 (9,220) (5,800) 106,692 (*) Includes land tax and building insurance. B. Cost of operations For the six months ended 30 June In EUR thousand 2026 2025 Salaries and other expenses (8,208) (13,826) Costs of utilities recharged, net (25,408) (31,596) Costs of property development (20,360) (121,560) Cost of real estate inventories disposed of (178,976) (133) Costs of sale of trading properties (condominiums) (1,639) (664) Property operations and maintenance (11,070) (10,797) Total (245,661) (178,576) The cost of operations includes inventory write-downs of EUR 17,301 thousand (prior period: EUR 29,738 thousand). 56 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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C. General and administrative expenses For the six months ended 30 June In EUR thousand 2026 2025 Salaries and related expenses (11,081) (11,653) Directors fee (432) (478) Rent (481) (1,099) Professional services (10,341) (25,729) Traveling (143) (327) Office, communication and IT expenses (5,138) (5,389) Advertising and marketing (206) (125) Impairment loss on trade receivables (2,897) (8,542) Depreciation (422) (698) Depreciation of right-of-use assets (1,452) (2,688) Other (10,240) (3,233) Total (42,833) (59,961) D. Other expenses 2026 2025 Impairment of other non-financial assets (38) - One-off legal and consulting fees (8,798) (18,377) Penalties from contractual obligations (1,101) - Miscellaneous other expense (14,292) (44,341) Total other expenses (24,229) (62,718) E. Other income In EUR thousand 2026 2025 Reversal of provisions 11,329 - Derecognition of liabilities 643 18,714 Income from prior periods 7,425 17,785 Income from insurances (compensation) 341 31 Income from the sale of property, plant and equipment 20 - Miscellaneous other income 1,530 6,403 Total other income 21,288 42,933 57 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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F. Net finance costs For the six months ended 30 June In EUR thousand 2026 2025 Interest received 9,678 13,210 Change in fair value of other derivatives 484 - Other finance income 323 1,491 Total finance income 10,485 14,701 Interest on bonds (47,224) (41,631) Change in fair value of other derivatives - (639) Impairment of financial instruments (3,736) (3,426) Interest on other loans and borrowings (111,753) (108,106) One-off refinance costs (37) (9,324) Loss from derecognition or modification of financial instruments - (24,617) Other finance expenses (1,282) (3,767) Total finance costs (164,032) (191,510) Total net finance costs (153,547) (176,809) G. Earnings per share For the purpose of computing earnings per share (EPS), profit and loss of the reporting period has been allocated to the holders of the subordinated perpetual notes. This allocation is based on their cumulative potential dividend claims up to the nominal amount of the perpetual notes, inclusive PIK. Consequently, earnings per share is nil. 58 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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Note 7 – Financial instruments The following table shows an overview of different classes of financial instruments, their carrying amount, measure - ment basis, fair value and fair value hierarchy level: 30 June 2026 In EUR thousand Category Carrying amount Amortised cost Fair value through PL Carrying amounts acc. to IFRS 16 / IAS 28 Fair Value Fair value hie- rarchy level Assets Investments in financial instruments Other investments in finan- cial instruments aafvPL 7,525 - 7,525 - 7,525 Level 3 Other financial assets Loans to holders of non-controlling interest in subsidiaries aac 120,556 120,556 - - 120,556 1) Miscellaneous other finan- cial assets aafvPL 252 - 252 - 252 1) Miscellaneous other finan- cial assets aac 2,038 2,038 - - 2,038 Level 1 Derivatives aafvPL 8,163 - 8,163 - 8,163 Level 3 Restricted bank deposits (non-current) aac 9,855 9,855 - - 9,855 1) Restricted bank deposits (current) aac 27,935 27,935 - - 27,935 1) Trade receivables aac 59,535 59,535 - - 59,535 1) Other receivables (financial) Receivables against holders of non-controlling interest in subsidiaries aac - - - - - 1) Loans aac 4,337 4,337 - - 4,337 Level 3 Deposits aac 2,849 2,849 - - 2,849 Level 3 Miscellaneous other recei- vables (financial) aac - - - - - Level 3 Cash and cash equivalents aac 154,769 154,769 - - 154,769 1) Total financial assets 397,814 381,874 15,940 - 397,814 59 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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30 June 2026 In EUR thousand Category Carrying amount Amortised cost Fair value through PL Carrying amounts acc. to IFRS 16 / IAS 28 Fair Value Fair value hie- rarchy level Liabilities Corporate bonds flac 355,350 355,350 - - 363,015 Level 1 Other loans and borrowings flac 3,018,332 3,018,332 - - 3,014,734 Level 3 Other financial liabilities flac 9,094 9,094 - - 9,094 1) Trade payables flac 27,885 27,885 - - 27,885 1) Lease liabilities n/a 4,856 - - 4,856 - n/a Other payables (financial) flac 43,201 43,201 - - 43,201 Level 3 Total financial liabilities 3,458,718 3,453,862 - 4,856 3,457,929 1) The carrying amounts of certain financial assets and liabilities, including cash and cash equivalents, trade and other receivables, restricted and other bank deposits and trade and other payables are considered to be the same or proximate to their fair value due to their short-term nature. 60 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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31 Dec 2025 In EUR thousand Category Carrying amount Amortised cost Fair value through PL Carrying amounts acc. to IFRS 16 / IAS 28 Fair Value Fair value hie- rarchy level Assets Investments in financial instruments Other investments in finan- cial instruments aafvPL 7,525 - 7,502 - 7,502 Level 3 Other financial assets Loans to holders of non-controlling interest in subsidiaries aac 93,545 93,545 - - 93,545 1) Miscellaneous other finan- cial assets aafvPL 1,441 - 1,441 - 1,441 1) Miscellaneous other finan- cial assets aac 1,754 1,754 - - 1,754 Level 1 Derivatives aafvPL 7,929 - 7,929 - 7,929 Level 3 Restricted bank deposits (non-current) aac 9,974 9,974 - - 9,974 1) Restricted bank deposits (current) aac 30,273 30,273 - - 30,273 1) Trade receivables aac 50,059 50,059 - - 50,059 1) Other receivables (financial) Receivables against holders of non-controlling interest in subsidiaries aac 25,593 25,593 - - 25,593 1) Loans aac 4,054 4,054 - - 4,054 Level 3 Deposits aac 3,470 3,470 - - 3,470 Level 3 Miscellaneous other recei- vables (financial) aac 2,496 2,496 - - 2,496 Level 3 Cash and cash equivalents aac 213,737 213,737 - - 213,737 1) Total financial assets 451,850 434,955 16,872 - 451,827 61 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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31 Dec 2025 In EUR thousand Category Carrying amount Amortised cost Fair value through PL Carrying amounts acc. to IFRS 16 / IAS 28 Fair Value Fair value hie- rarchy level Liabilities Corporate bonds flac 323,018 323,018 - - 334,686 Level 1 Other loans and borrowings flac 3,119,155 3,119,155 - - 3,123,498 Level 3 Other financial liabilities flac 9,094 9,094 - - 9,094 1) Trade payables flac 41,844 41,844 - - 41,844 1) Lease liabilities n/a 6,258 - - 6,258 - n/a Other payables (financial) flac 44,326 44,326 - - 44,326 Level 3 Total financial liabilities 3,543,695 3,537,437 - 6,258 3,553,448 1) The carrying amounts of certain financial assets and liabilities, including cash and cash equivalents, trade and other receivables, restricted and other bank deposits and trade and other payables are considered to be the same or proximate to their fair value due to their short-term nature. The fair value of liabilities is estimated by discounting future cash flows by the market interest rate of similar instru - ments at the date of measurement. In respect of the liability component of convertible bonds, the market rate of inter - est is determined by bid and ask quotes in the market. 62 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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Note 8 – Segments reporting The basis of segmentation and the measurement basis for segment profit or loss are the same as presented in Note 34 regarding operating segments in the annual consolidated financial statements for the year ended 31 December 2025. ADLER and Consus are presented as independent segments in accordance with current internal reporting to the chief operating decision maker. Information about reportable segments Information regarding the results of each reportable segment is included below. 1 Jan - 30 June 2026 In EUR thousand Residential property ma- nagement Privatisation Adler RE Consus Consoli- dation Total conso- lidated Revenue from residential property management 124,233 - 21,339 1,151 (8,951) 137,772 Revenue from sale of trading properties (condominiums) - 1,947 424 - - 2,371 Revenue from selling of other real estate inventories - - - 130,750 - 130,750 Revenue from property development - - - 12,811 - 12,811 Miscellaneous other revenue - - - 836 (349) 487 Consolidated revenue 124,233 1,947 21,763 145,548 (9,300) 284,191 Cost of operations (30,440) (49,671) (14,233) (156,421) 5,104 (245,661) Reportable segment gross profit 93,793 (47,724) 7,530 (10,873) (4,196) 38,530 General and administrative expenses (42,833) Changes in fair value of investment properties 1,600 Other expenses (24,229) Other income 21,288 Finance income 10,485 Finance costs (164,032) Net income from at-equity valued investments - Consolidated profit / (loss) before tax (159,191) Income tax (935) Consolidated profit / (loss) after tax (160,126) 63 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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1 Jan - 30 June 2025 In EUR thousand Residential property ma- nagement Privatisation Adler RE Consus Consoli- dation Total conso- lidated Revenue from residential property management 87,328 - 34,384 1,266 (16,697) 106,281 Revenue from sale of trading properties (condominiums) - - - - - - Revenue from selling of other real estate inventories - - - - - - Revenue from property development - - - (1,027) - (1,027) Miscellaneous other revenue - - - (9,459) 10,897 1,438 Consolidated revenue 87,328 - 34,384 (9,220) (5,800) 106,692 Cost of operations(*) (28,748) - (25,847) (117,352) (6,629) (178,576) Reportable segment gross profit 58,580 - 8,537 (126,572) (12,429) (71,884) General and administrative expenses (59,961) Changes in fair value of investment properties (63,348) Other expenses (62,718) Other income 42,933 Finance income 14,701 Finance costs (191,510) Net income from at-equity valued investments (1) Consolidated profit / (loss) before tax (391,788) Income tax 10,507 Consolidated profit / (loss) after tax (381,281) (*) Prior year presentation adjusted. 64 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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Note 9 – Material events in the reporting period and subsequent events 1. On 13 January 2026, Adler Group completed the sale of the development project “Kaiserlei” in Offenbach. 2. On 16 March 2026, Adler Real Estate GmbH, a sub - sidiary of Adler Group, fully repaid the remaining out - standing amount of EUR 14.8 million of its notes matur - ing in April 2026. 3. On 19 March 2026, Adler Group completed the sale of the development project “Benrather Gärten” in Düs - seldorf. 4. On 31 March 2026, Adler Group completed the first closing of the development project “Holsten Quartier“ in Hamburg. This first closing comprises the largest part of the project. 5. On 31 March 2026, Adler Group completed the sale of “Kornversuchsspeicher“, an office property in Berlin. 6. On 2 April 2026, Adler Group completed the sale of “Hedemannstrasse“ a mixed use property in Berlin. 7. On 24 June 2026, the Annual General Meeting (“AGM”) of Adler Group, following the recommendation of the Board of Directors, approved the appointment of AVEGA Revision S.à r.l. as the approved statutory audit of the standalone annual accounts and consolidated fi - nancial statements of the Company for the financial year ending 31 December 2026. The engagement will continue until the Company’s AGM to be held in 2027. Among other resolutions, the AGM also re-appointed Mr Stefan Brendgen and Mr Matthias Moser as direc - tors of the Company for a period running from the date of this AGM until the annual general meeting to take place in the year 2029. 8. The Company repaid the 1L Facility in the aggregate amount of EUR 153 million (excluding accrued interest) in the first half of 2026. Additional information can be found on the Adler Group website: https://www.adler-group.com/en/investors/ publications/news . 65 Adler Group Q2 2026 Quarterly Financial Statements 3 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Notes to the Condensed Consolidated Interim Financial Statements
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Adler Group Q2 2026 Quarterly Financial Statements66 4 FINANCIAL CALENDAR & IMPRINT
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Adler Group Q2 2026 Quarterly Financial Statements 67 4 FINANCIAL CALENDAR & IMPRINT Financial Calendar 2026 Imprint Coordination: Investor Relations Adler Group S.A. Concept, Design & Artwork: brandcooks GmbH by UPWIRE Group Hamburg, Zurich, Cape Town Felix Ernesti Art Director & Graphic Designer, Berlin Online Financial Calendar www.adler-group.com Adler Group S.A. 26 November 2026 Publication Q3 2026 Results
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QUARTERLY FINANCIAL STATEMENTS 2026 Adler Group S.A. 55 Allée Scheffer 2520 Luxembourg Grand Duchy of Luxembourg investorrelations@adler-group.com www.adler-group.com