Conclusion for 2021: BaFin expands Adler test

Status: 06/22/2022 4:55 p.m

The financial supervisory authority BaFin is now also examining the balance sheet for 2021 at Adler Real Estate, the subsidiary of the real estate group Adler Group. To date, the Financial Regulator has only examined the financial statements for 2019 and 2020.

The Federal Financial Supervisory Authority (BaFin) is now also reviewing the 2021 balance sheet of Adler Real Estate AG. The reason for this is the refusal of an attestation by the auditors from KPMG for the 2021 annual financial statements. A BaFin spokeswoman confirmed that the accounting control procedure against the listed subsidiary of the real estate group Adler Group had been expanded.

The Luxembourg-based Adler Group had previously announced that it welcomed the BaFin audit order for the consolidated financial statements as of December 31, 2021 and the combined management report for the 2021 financial year of the subsidiary Adler Real Estate AG. The auditors from KPMG had previously not wanted to confirm the accuracy of the balance sheets of the Luxembourg Adler Group and Berlin Adler Real Estate from 2021.

Now three balance sheets in sight

At the beginning of the year, BaFin took over the tasks of the former “balance sheet police” DPR (German Financial Reporting Enforcement Panel) after it was accused of being too hesitant in the Wirecard scandal. In August 2021, the DPR had already initiated corresponding control procedures for Adler Real Estate’s balance sheets for the years 2019 and 2020. According to BaFin, these are still ongoing.

According to the authority, there are “concrete indications that relationships and business transactions with related persons or companies (…) may not have been fully and correctly recorded and represented in the group accounting”, which would be a violation of the international accounting regulations (IAS). . If BaFin actually finds significant errors, the company must publish them and, under certain circumstances, also correct the balance sheet.

However, the authority can only examine the balance sheets of Adler Real Estate AG, but not the almost 97 percent major shareholder Adler Group, which has its legal seat in Luxembourg.

clarification desirable

Adler himself hopes that the audit will provide further information as to whether the Accusations by short seller Fraser Perring are valid that persons close to Adler had unduly influenced Adler’s company and transactions.

In the afternoon, the shares of mother and daughter were mixed, but changed little overall. Both papers are still significantly below the level of a year ago. Investors’ doubts remain.

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