At this time, it's my pleasure to hand over to Gundolf Moritz. Please go ahead, sir.
Yeah, thank you, Sandra, and good morning, everyone, and thank you for joining us here today for the Adler Group Q1 2024 Results Analyst and Investor Conference Call. My name is Gundolf Moritz, Head of Financial and Corporate Communications for Adler Group. For me today, will be my last call with you. As planned a long time ago, I will leave Adler and embark on a sabbatical. I'd like to thank you for all your support and patience with me throughout these turbulent times. I have always appreciated working with you and have been honored to be part of a great team with extremely skilled and friendly, lovely people. As such, and with great confidence, I hand over all responsibilities to my successor, Julian Mahlert, whom you already know very well.
Thank you, Gundolf, and welcome everyone here from Luxembourg. Along with me, we have Thierry Beaudemoulin, CEO, and Thomas Echelmeyer, CFO of Adler Group, who will now guide us through today's presentation. This presentation will be followed by a Q&A session, in which management will answer your questions. Please note that this call will be recorded and made available on the company's website, where you can also download today's presentation. With that, I would like to hand you over to Thierry.
Thank you, Julian. Welcome, everyone, and thanks for joining us here today. On behalf of the whole management team, I would also like to thank Gundolf for his tremendous effort over the last couple of years. So it was a great pleasure for us to work together in this turbulent time. We wish you all the best for your next adventure. Let us start now with an update on the restructuring process on page four. We told you in our full year 2023 investor call that we had reached a non-binding agreement on a refined restructuring plan with our bondholders. On Friday last week, we have advanced to a binding agreement with the steering committee of our bondholders to enter into a comprehensive recapitalization.
The lock-up agreement has been signed by bondholders, representing more than 60% of our second lien bonds and is open for additional bondholders to access. This agreement includes three main components. The first component is to extend Adler Group existing bond maturity to December 2028, 2029, and January 2030. Thereby, we avoid a significant portfolio disposal at unfavorable term, which would be immediately required to deal with our 2025 and 2026 maturities. The second component is to strengthen the group equity position by converting the majority of our second lien notes of circa EUR 2.3 billion into perpetual notes. These notes will be classified as equity under IFRS. As a third component, Adler Group will receive up to EUR 350 million of additional liquidity.
The main message is that, subject to successful implementation, this agreement provide us with an extended runway to execute our strategy, stabilize the platform for the year to come, and avoid unnecessary asset disposal too far below their fair value. There is more detailed information on our investor relations website, such as the investor presentation and the detailed Adler notification, as published on Friday. We expect this transaction to be implemented and concluded by end of September 2024. We will provide you with further update on this topic as we progress. Let's continue the Q1 2024 highlight on page six. Our residential portfolio has continued to show strong operational performance in the first quarter of 2024. We achieved a like-for-like rental growth of 5.1%. This was mainly driven by indexation of the current rental contract, and to a lesser extent, by our relating activities.
The operational vacancy rate remained at a low level, 1.7%, just marginally higher than the 1.5% we had in Q1 2023. The average in-place rent rose to 7.63 EUR per square meter per month, at the end of March 2024. This is a slight increase versus the previous year. This increment was achieved despite the sizable disposal of Wasserstadt portfolio in Berlin, with 700 new-built units not falling under the Mietspiegel. The fair value of our portfolio has not changed compared to year-end 2023. As you may know, our portfolio revaluation is done semi-annually. The next portfolio revaluation will be conducted through June 2024. The group net rental income decreased only slightly by 4% from EUR 53 million in the previous year to EUR 51 million in Q1 2024.
The reduction was mainly due to the recent portfolio sale, such as the Wasserstadt transaction, complete in the second half of 2023. Fortunately, the decrease in size was partly compensated by the beforementioned like-for-like rental growth. FFO1 from rental activity was negative at EUR -27 million, compared to EUR 16 million positive in Q1 2023. This decline is mainly attributed to the increase in interest rate following the amended bond term in 2023. So FFO 1 include EUR 47 million of non-cash effective picking interest in the first quarter of 2024. Further, the EPRA NCS stood at EUR 448 million, or EUR 2.96 per share at the end of March 2024.
Compared to Q4 2023, EPRA has increased by 1.5 percentage point to 91.1%, mainly due to the non-cash interest expenses recording in our liability. The weighted average cost of debt remained at 6.3%. We have EUR 350 million cash on our balance sheet, excluding cash out at BCP. We will have a closer look at the development of our cash position later in this presentation. Regarding our disposal activity, we signed sales of several condominium units in Berlin for roughly EUR 6 million during the first quarter of 2024. Additionally, circa EUR 4 million sales of yielding multifamily assets were also signed in Q1. We received cash proceeds of EUR 17 million from the disposal of the development project in Berlin.
We also received net proceeds of EUR 26 million by closing the sale of the Leipzig 416 project to the City of Leipzig. This transaction was completed after the end of the first quarter. In addition to that, two projects here in Cologne and Düsseldorf are currently under exclusivity. Further intended disposal are in advanced discussion. Therefore, we are optimistic to be able to complete additional transaction this year. Let's proceed to portfolio and operational performance on page eight. As in prior presentation, assets owned by our subsidiary, BCP, are not included in our portfolio KPIs, as we aim to sell our stake in BCP. For more detail on the BCP portfolio, please refer to the BCP website, where you find both the Q1 report and results presentation.
Compared to the year-end 2023, the value of our yielding portfolio has remained constant at EUR 4.2 billion, given there were no major disposal and no valuation adjustment in the quarter. The value of our portfolio per sq m remained almost unchanged at EUR 2.47 per sq m. 86% of the GAV in our portfolio, EUR 3.6 billion in absolute figure, relate to our assets in Berlin. Let's move on to page nine. As already mentioned, there was no portfolio revaluation in Q1 2024. With the next scheduled portfolio revaluation for Q2 2023, we could probably see a low single-digit % decrease in line with overall market expectation for the sector.
If you look back at rental yield, you can see the increase compared to last year, mainly driven by the value adjustment done in the course of 2023. For rental yield outside Berlin, remain significantly higher than yields observed in Berlin. Please join me on page 10 to discuss our rental growth in more detail. We continue to realize significant like-for-like rental growth of 5.1% as per March 2024, compared to 2% in March last year. This was primarily achieved through our high exposure to the Berlin market, where we saw rental growth of +5.5%, compared to 3.9% in the other city. As you can see on the chart on the right, this was mainly driven by indexation of our current rental contract, and to a lesser extent, by our relating activity.
As per year whole basis, our average rent per square meters per month marginally increased to EUR 7.63 by the end of Q1 2024. As mentioned before, the last year figure includes portfolio, which was not subject to rent regulation. Our operational vacancy rate has remained on a very low level at 1.7% in March 2024, just slightly higher than the 1.5% at the end of the last year. It can be seen that both our asset and the market we are operating in remain highly attractive for tenant. Now, I would like to hand over to Thomas, who will update you on our financial performance on page 12.
Thank you, Thierry, and also extending a warm welcome from my side. We can be fairly quick on this slide, as you can see that there were no significant changes in our GAV compared to last quarter. We sold a few condominium units in Berlin, as well as two multifamily buildings outside of Berlin. This reduced the GAV by roughly EUR 2 million in the first quarter. No additional disposals of development projects were signed in Q1 2024. As mentioned by Thierry, our development project in Leipzig was sold after the end of the quarter. The disposal of Wasserstadt in Berlin was already deducted in the GAV bridge in Q4 2023, when we signed the sale contract with the investor. As stated by Thierry, there was no revaluation done in this quarter. This will be performed semiannually only, as it is common practice in the real estate sector.
Now, let's have a look at EPRA LTV on the next page, 13. At the end of March 2024, our loan to value, according to EPRA methodology, increased to 99.1% from 90... 2023. As you can see in the PNL, the main driver for the increase were interest expenses. Please allow me to remind you that the EPRA LTV deviates from the covenant LTV definition in our bonds. This covenant has been temporarily lifted and will be tested for the first time on 31 December 2024. Also, please keep in mind that the capital structure of Adler Group will fundamentally change post-implementation of the lock-up agreement. With this, we will see a significantly lower LTV ratio, both according to EPRA and our bond covenant definition. With this, let us move to page 14 for financing update.
In February this year, our subsidiary, BCP, issued a new series of secured bonds, the so-called Series D. The volume was approximately EUR 90 million and will be amortized between February 2027 and February 2029. Also, Adler Real Estate fully repaid the remaining amount of EUR 3 million of its 2017-2024 bond, the position that had not been tendered last year. Further maturities in 2024 consist almost entirely of asset-linked secured bank financing. We are confident to address these maturities by means of prolongation. Discussions with the respective lending banks are currently in very advanced stages, and we expect to have agreements in place by the middle of June. Let's continue on page 15 to discuss the debt KPI. Our nominal interest-giving debt position stood at EUR 6.5 billion at the end of March this year.
This is a slight increase of approximately EUR 80 million compared to December 2023, mainly resulting from aforementioned bond series issued by BCP. Furthermore, the weighted average cost of debt remains stable at 6.3%. Our total debt has an average maturity of 2.5 years. This is without taking into account the intended prolongation as part of the comprehensive recapitalization that we have agreed upon with our bondholders. It goes without saying that following the implementation of the lock-up agreement, our capital structure will fundamentally change. For this, we also refer to the investor update document that we published on our website on Friday. The detailed maturity schedule as of March 2024 is shown on the next page. Looking at the 2024 maturity, the majority of the maturities consist of asset-linked, secured bank debt and are envisaged to be prolonged.
As stated, we are in very advanced negotiations with our lending banks regarding the prolongation of these loans. In short, we do not expect any major challenges in 2024. The volume of maturities in both 2025 and 2026 looks somewhat challenging, also taking into consideration that the transaction markets for larger portfolio sales have not fully opened up again. This is one of the key reasons for the comprehensive recapitalization that we have negotiated with our bondholders. As explained before, we expect the maturity profile of our debt obligation to change fundamentally following the implementation of the transaction. Let's turn to cash on the next page, 17. At the end of Q1, our cash position stood at EUR 353 million, EUR 25 million less than at year-end 2023.
The restricted cash position of EUR 105 million in December 2023 was only temporary, as highlighted in fiscal year 2023 investor call. A large proportion of it became available in January 2024. So the restricted cash position at the end of March 2024 was EUR 23 million. Please let me remind you that the EUR 353 million does not include EUR 142 million of cash held at BCP level, which is classified under assets and liabilities held for sale on our balance sheet. Let me point out some of the positions. First, a cash inflow of EUR 21 million from disposals of development projects and yielding assets. This includes the EUR 17 million proceeds from Wasserstadt Tankstelle that came in in Q1.
Second, a positive inflow of EUR 15 million related to the operating income, both from the rental and the project development activities. Third, EUR 60 million inflow from the release of trapped cash, a result of the forward sale project, Bundesallee, being completed and partly handed over to the buyer. Fourth, CapEx related to development projects at Consus level decreased the cash position by EUR 34 million. Fifth, a cash outflow of EUR 23 million related to advisory fees, partly relating to the restructuring plan update. And finally, EUR 16 million on cash, effective interest payments and amortization. Thierry, now back to you.
Thank you, Thomas. As always, we would like to end the presentation with some concluding remarks. We continue to make good progress step by step in various parts of our business: operation, asset disposal, and corporate financing. On our rental activity, we deliver strong performance with 5.1%, like-for-like rental growth compared to the previous year. The operational vacancy of the total portfolio remain at a structurally low level of 1.7%. We confirm our net rental guidance in the range of EUR 200 million-EUR 210 million for 2024. Until today, we generate net proceeds of EUR 43 million from disposal of development project in Berlin and Leipzig. By reaching a binding agreement with over 60% of our second lien bondholder for comprehensive recapitalization, we must stabilize the group for the years to come.
While current market conditions are still somewhat adverse, we expect better condition in our industry over the period of our reprofiled maturities. Furthermore, the prolongation talk for our 2024 bank maturity are in advanced stage. At the upcoming AGM on 25th June, Matthias Moser, an expert in real estate and finance with more than 30 years experience, will be up for appointment for a board member position. This follows the resignation of Professor Kirsten, Dr. Arnoldi, and Thomas Zinnöcker. With that, we would like to conclude the presentation and open the floor for any question you may ask. Julian, over to you for the Q&A.
Thank you, Thierry. With this, back to Sandra. Sandra, please start with the Q&A.
We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only hands while asking a question. Anyone with a question may press star and one at this time. The first question comes from Niki Tucakov from Jefferies. Please go ahead.
Hi, good morning. I hope you can hear me. Thank you very much for the results and the presentations. I have one question on the rental growth, and sort of putting aside your guidance for this year, which was confirmed. How should we think about, you know, the like-for-like growth, from here over the next, let's say, 12-18 months? The last six months now, we've had over 5%. This used to be, and, you know, in Berlin, it's even higher than that, but that used to be more like 2%-3% range.
Are we to expect that to continue for quite some time, to sort of catch up with inflation that we've seen in 2022, 2023, as your contracts roll through the CPI link, the rental indices in the various locations you have your assets, and all of that? Thank you.
Yeah, thank you for this question. Of course, the demand in the rental market, especially in Berlin, is very high, but there's also a different level of regulation on the rental market. The 5% is a result of a catch-up effect, because in the year before, the company, like all the major player, have adhered to a rent moderation, and Adler has been out of this rent moderation. That's why we have a catch-up effect in 2023. In 2024, we expect more to be in line with the long-term potential, which is between 3%-4% per year, because only one third of our contract are CPI indexed.
The other one, you need the relating, you need the CapEx, or you need the evolution of the Mietspiegel to be able to catch that. And as you know, the Mietspiegel is, is the result of the inflation, but with, with, with delaying effect, due to the, due to the period. Thank you.
Got it. Okay. Thank you.
As a reminder, if you wish to register for a question, please press star followed by one. It seems that there are no further questions. I hand back over to Thierry Beaudemoulin for any closing remarks.
Thank you for attending our call today, and we look forward to speak to you on our next call after the holiday season. Thank you. Have a good day.
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