Financial expert reveals: Adler Real Estate with questionable accounting in 2020 and 2021

Financial expert reveals: Adler Real Estate with questionable accounting in 2020 and 2021

According to a report by www.faz.net,

According to the financial regulator Bafin, the real estate group Adler Real Estate presented its financial situation too rosily in its balance sheets for 2020 and 2021. In addition to inflated valuations for the “Glasmacherviertel” real estate project in Düsseldorf and an excessive valuation of the investment in the housing company Accentro, a 265 million euro loan to the Luxembourg parent Adler Group without collateral was also not noted in the 2021 financial statements. Bafin has completed the accounting control proceedings against Adler Real Estate, which lasted more than two years.

The inflated valuations of the “Glasmacherviertel” in the 2020 and 2021 balance sheets as well as the incorrect valuation of the investment in the Accentro housing company are having an impact on the real estate market. These errors can affect investors' confidence in the company's accounting practices and call into question the valuation of real estate projects in general. In addition, Bafin could take further measures to correct the company's balance sheets and sanction the company, which could lead to a further decline in trust and a loss of image.

The obvious errors in the balance sheets and the criticism from Bafin could also have an impact on the share prices of Adler Real Estate. Investors who rely on the accuracy of a company's balance sheet may sell shares due to uncertainty about the company's true financial condition, which could result in a decline in share price.

Overall, the errors identified in Adler Real Estate's balance sheets could lead to a significant loss of image, a loss of confidence among investors and a decline in share prices. This could weaken the company financially and affect its future growth and investment plans.