Adler has unnerved investors by failing to refute fraud allegations made against the German residential property giant.
Announcing its third-quarter results on Tuesday (30 November), the company said rents were a third higher and property prices rose by almost 9%. However, its shares still fell by a fifth to a new low.
Investors were rattled by what the German residential property group did not say. They were expecting a detailed refutation of fraud allegations against the company. The appointment of KPMG forensic accountants to review some past transactions was not enough.
Short-seller Viceroy Research, which has stood to benefit from share price falls, has alleged that Adler is secretly controlled by Cevdet Caner, the property magnate who became well known when his Level One empire fell apart in 2008.
Caner vigorously denies Viceroy’s allegations. He says he is just an adviser and not even a shareholder personally.
Adler also rejects Viceroy’s claims. Even so, the argument has left shareholders badly shaken.
