Adler’s Woes Are Dragging Down Bonds of Other German Landlords

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The bonds of German real estate companies have fallen on concern that Adler Group SA’s recent woes may prompt investors to question the industry’s asset valuations.

Most notably, the long-dated bonds of Germany’s largest landlord Vonovia SE, which are investment-grade and typically have stable prices, fell below 90 cents for the first time this week, according to data compiled by Bloomberg. The company last week agreed to a deal with Adler’s biggest shareholder Aggregate Holdings to pay off a margin loan and an option on half its stake.

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