Enlarge image
Adler logo in Berlin
Photo: Achille Abboud / IMAGO
According to its own statements, the financial supervisory authority has discovered further errors in the 2019 consolidated financial statements of the Adler subsidiary Adler Real Estate Aktiengesellschaft.
The Federal Financial Supervisory Authority (BaFin) announced that a total of three further accounting errors had been identified.
For example, Adler Real Estate was not allowed to include ADO Properties as a fully consolidated subsidiary in the consolidated financial statements.
"The consolidated balance sheet total was 3.9 billion euros and the overall result was 543 million euros too high," the supervisory authority further stated.
The Adler Group had already announced legal action against BaFin and stated that it did not share the authority's view.
"The consolidation of ADO Properties SA was not permitted," BaFin said.
She had previously discovered mistakes and continues to keep an eye on Adler.
The audit of the accounting for the consolidated financial statements and the combined management report of Adler Real Estate AG for the 2019 financial year is ongoing.
The same applies to the audit of the 2020 and 2021 financial years.
However, the Bafin is not responsible for examining the financial statements of the parent company Adler Group: The real estate investor is based in Luxembourg and is subject to the local securities regulator CSSF.
The Adler Group has long been criticized for allegations by a British short seller that the company artificially inflated property valuations in some cases.
The Adler Group had suffered setbacks in the struggle for the credibility of its balance sheets.
For example, KPMG Luxembourg had refused the company the attestation for the 2021 annual financial statements.
dab/Reuters