The Adler Group's accounts contain "further accounting errors," according to BaFin

The regulator has already found inconsistencies with the real estate investment firm twice.

According to BaFin, Adler Real Estate AG should not have included ADO Properties SA in its 2019 consolidation, which caused an inflation of €3.9BN to the balance sheet and €543M to the earnings of the company, according to Bloomberg.

The investment business has nonetheless declared that it will contest the ruling.

In an effort to strengthen its internal governance, the corporation has reorganized its management team in response to accusations of systemic fraud. KPMG's investigation did not turn up any proof of systemic fraud.

The regulator has said that the firm’s 33.25% shareholding of ADO Properties was not sufficient to give it control of the firm, due to the fact that ADO was going to acquire Adler Real Estate. 

According to Addler's statement, it "was and is firmly convinced that the aforementioned indirect shareholding represents a de facto controlling majority taking into account the usual attendance at annual general meetings of ADO Properties SA."

According to the company, it "continues to maintain the full accuracy and correctness of the audited consolidated financial statements for the 2019 financial year."

The German regulator, which has reportedly been looking into Adler since August 2021, stated that it was still looking into the company's 2019–20, 2020–2021 financial statements.

Although Adler emphasized that it was in "good and constructive dialogue" with BaFin, it would "like BaFin to provide a swift overall assessment" for 2019.

By fLEXI tEAM