Aroundtown Sa · XETR:AT1
Aroundtown Sa — Aroundtown Sa Ord — Q1 2021 Earnings Presentation
83 slides from Aroundtown Sa's earnings presentation, May 27, 2021
Slide 1: Q1 2021 Financial Results
AROUNDTOWN SA Q1 2021 FINANCIAL RESULTS MAY 2021
Slide 2: Table of Contents
TABLE OF CONTENTS 1 2 OPERATIONS & HIGHLIGHTS PORTFOLIO 3 4 FINANCIAL RESULTS GUIDANCE 5 APPENDIX 2
Slide 3: Highlights
HIGHLIGHTS NAVIGATE BACK TO TABLE OF CONTENTS 3
Slide 4: Business Highlights and Solid Financial Position
BUSINESS HIGHLIGHTS AND SOLID FINANCIAL POSITION CONSERVATIVE DEBT TOP & BOTTOM LINE FINANCIAL DISCIPLINE PROFILE €233m €3.1bn 6.0y Net rental income Cash and liquid assets Long average debt maturity -1% YOY +0.1% LFL Net rental income growth €15.9bn / 80% of rent 1.4% Mar 2021 Unencumbered investme
Slide 5: Capital Recycling During 2021
CAPITAL RECYCLING DURING 2021 DISPOSALS ABOVE BOOK VALUE VALIDATE VALUATIONS, INCREASE PORTFOLIO QUALITY ... AND FREE UP FUNDS WHICH ARE UTILIZED THROUGH SALE OF NON-CORE... IN SHARE BUYBACKS AND DEBT REPAYMENTS 23x Average rent multiple 2021 YTD DISPOSAL OVER €970M 23x Up to €500m additional buybac
Slide 6: Operations & Portfolio
OPERATIONS & PORTFOLIO NAVIGATE BACK TO TABLE OF CONTENTS 6
Slide 7: Strong Locations & Property Quality Are Key to Success
STRONG LOCATIONS & PROPERTY QUALITY ARE KEY TO SUCCESS & STABILITY OF THE PORTFOLIO GERMANY & THE NETHERLANDS: 86% OF THE PORTFOLIO GERMANY & THE NETHERLANDS 64% in Germany’s and the Well-diversified across Netherlands’ top cities top tier cities with a (Berlin, Frankfurt, Munich, Cologne, Dusseldor
Slide 8: High Diversification
HIGH DIVERSIFICATION DIVERSIFICATION ASSET TYPE TENANT & INDUSTRY High tenant & industry 65% / 24% diversification with no Office & Residential / Hotel dependency Each location has distinct Strong diversification key demand drivers, among asset types with supporting industry diverse fundamentals div
Slide 9: Defensive Portfolio with Strong Tenant Structure
DEFENSIVE PORTFOLIO WITH STRONG TENANT STRUCTURE Limited dependency on single tenants: Large tenant base of approx. 3,500 Collection rate is nearly back to pre- Top 10 Tenants: less than 20% of tenants is further supported by Covid levels for all asset types excl. rental income highly granular Germa
Slide 10: Commercial Portfolio: Upside Potential as a Downside Protection
COMMERCIAL PORTFOLIO: UPSIDE POTENTIAL AS A DOWNSIDE PROTECTION Commercial Mar 2021 annualized rental income vs. Large upside potential from rent increases to Market potential including vacancy reduction not including development potential (in €m) market levels will act as a buffer against a downsid
Slide 11: German & Dutch Office Market – Resilient During the Pandemic
GERMAN & DUTCH OFFICE MARKET – RESILIENT DURING THE PANDEMIC SUSTAINABLE VALUES DRIVEN BY RESILIENT GERMAN & DUTCH OFFICE RECORD LOW MARKET VACANCY & SOLID DEMAND, SUPPORTED BY THE MARKETS, EXPECTED TO REMAIN LARGE UNDERSUPPLY KEEP RENTS HISTORICALLY LARGE SPREAD TO RESILIENT DURING THE PANDEMIC STA
Slide 12: Office Portfolio
OFFICE PORTFOLIO – WELL-LOCATED IN TOP TIER CITIES OF GERMANY AND THE NETHERLANDS OFFICE: 51% of the Group portfolio No dependency on a single location, single WELL-DIVERSIFIED tenant, single asset or single industry FOCUS ON CENTRAL LOCATIONS OF TOP TIER CITIES Diversified lease structure with 4.7
Slide 13: Residential Portfolio
RESIDENTIAL PORTFOLIO RESIDENTIAL: 14% of the Group GERMAN RESIDENTIAL: portfolio THE MOST RESILIENT NRW: 17% Berlin: 25% ASSET TYPE IN Dresden/Leipzig/Halle: 13% EUROPEAN London: 21% 9 YEARS AVERAGE GRANULAR TENANT REAL ESTATE... TENANCY LENGTH BASE ...REMAINED RESILIENT 1.8% like-for-like net rent
Slide 14: Hotel Portfolio
HOTEL PORTFOLIO HOTEL: 24% of the Group portfolio WELL-DISTRIBUTED Across Europe with a focus on locations with large catchment areas Long fixed contracts with no variable components with over 30 different strong 17.2Y WALT third-party hotel operators, operating with high profitability for many year
Slide 15: Hotel Portfolio Recovery Potential Once Restrictions Are Lifted
HOTEL PORTFOLIO RECOVERY POTENTIAL ONCE RESTRICTIONS ARE LIFTED RESTRICTIONS HAVE RESTRICTIONS IN CURRENT AS OF MAY 2021, ~90% RECENTLY BEEN EASED GERMANY REMAIN: RESTRICTIONS OF HOTELS 1) BY RENT IN UK AND BENELUX, HOTELS ONLY ALLOWED ACROSS HOTEL ARE OPEN. IN THE UK PORTFOLIO ALLOWING FOR LEISURE
Slide 16: Roadmap to Recovery: A Case Study from the UK
ROADMAP TO RECOVERY: A CASE STUDY FROM THE UK SWIFT VACCINATION DISTRIBUTION & REOPENING ROADMAP IN THE UK TRIGGERED A SPIKE UK REOPENINGS ROADMAP IN THE HOTEL BOOKINGS, SUPPORTING A FASTER RECOVERY ➢ As UK reopened hotels as of 17 May 2021 and permitted most of the outdoor activities, event 17 May
Slide 17: Logistics and Retail Portfolio
LOGISTICS AND RETAIL PORTFOLIO LOGISTICS: 4% RETAIL: 7% of of the Group the Group portfolio portfolio 5.4y WALT 4.9y WALT Reduced from 7% in March 2020 due to Reduced from 9% in March 2020 due to REDUCED SHARE disposals above book value REDUCED SHARE disposals above book value ESSENTIAL GOODS RETAIL
Slide 18: Development/Building Rights
DEVELOPMENT/BUILDING RIGHTS STRONG MARKET DEMAND + SCARCITY OF LAND ❑ Value of building rights increased significantly in central locations in top tier cities Hamburg VALUE EXTRACTION POTENTIAL Berlin ❑ Identifying underutilized land, building rights & conversion optionality in the existing portfoli
Slide 19: ESG
ESG NAVIGATE BACK TO TABLE OF CONTENTS 19
Slide 20: Further ESG Updates
FURTHER ESG UPDATES NEW SUSTAINABILITY REPORTING INDEX INCLUSION NON-FINANCIAL REPORT SUSTAINABILITY INSIGHTS SUSTAINABILITY – IN FOCUS S&P EUROPE 350 ESG INDEX Intended primarily for legislators Intended primarily for investors Intended primarily for a wider AS OF MAY 2021, AROUNDTOWN IS and invest
Slide 21: Financial Results
FINANCIAL RESULTS NAVIGATE BACK TO TABLE OF CONTENTS 21
Slide 22: Profit and Loss
PROFIT AND LOSS 1-3/2021 1-3/2020 Net rental income, recurring long-term* (in €m) in € millions REVENUE 274.9 277.7 CAGR RECURRING LONG-TERM NET RENTAL INCOME 226.1 233.4 +20% 233 226 176 PROPERTY REVALUATIONS AND CAPITAL GAINS 56.8 318.4 131 Share in profit from investment in equity-accounted inves
Slide 23: Adjusted EBITDA
ADJUSTED EBITDA 1-3/2021 1-3/2020 in € millions Subtracted as these profits include AT’s share in non-operational profits generated by the Operating profit 238.0 536.4 equity accounted investees Total depreciation and amortization 1.5 1.0 EBITDA 239.5 537.4 Property revaluations and capital gains (5
Slide 24: FFO I & FFO II
FFO I & FFO II 1-3/2021 1-3/2020 FFO I PER SHARE (IN €) in € millions FFO I per share FFO I per share before Covid adjustment FFO I COMMERCIAL PORTFOLIO, RECURRING LONG-TERM 97.5 98.3 0.105 Adjustment for GCP's and other investments' FFO contribution 27.1 28.3 0.098 0.095 FFO I BEFORE EXTRAORDINARY
Slide 25: EPRA NAV KPIs
EPRA NAV KPIS EPRA NAV KPIs (in €bn) EPRA NAV per share KPIs (in €) EPRA NRV EPRA NTA EPRA NDV EPRA NRV/ps EPRA NTA/ps EPRA NDV/ps CAGR: +8% CAGR: +6% CAGR: +2% CAGR: +11% CAGR: +9% CAGR: +3% 13.1 13.3 11.2 11.4 11.1 11.2 12.0 10.5 8.6 6.9 7.1 7.2 8.4 8.4 9.8 9.5 9.6 8.6 Dec 2019 Dec 2020 Mar 2021 D
Slide 26: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE DEBT MATURITY PROFILE Consistently low leverage (LTV) 1,200 Cash cover ratio Debt maturity Cost of debt Millions 1,000 3 times 6.0 years 1.4% Liquidity/ debt maturing in 3y Ø maturity Ø cost of debt Company BOD limit of 45% 800 600 400 35% 34% 34% 34% 200 0 2021 2022 2
Slide 27: Guidance
GUIDANCE NAVIGATE BACK TO TABLE OF CONTENTS 27
Slide 28: 2021 Guidance Confirmed
2021 GUIDANCE CONFIRMED FY 2021 GUIDANCE FFO I (in € million)* 340 - 370 FFO I per share (in €)* 0.29-0.31 Dividend per share (in €) 0.22-0.24 * previously defined as FFO I after perpetual, Covid adjusted ❖ Q1 2021 results are in line with expectations ❖ Guidance is based on the conservative assumpt
Slide 29: Appendix
APPENDIX NAVIGATE BACK TO TABLE OF CONTENTS 29
Slide 30: Share Information
SHARE INFORMATION THE SHARE SHAREHOLDER STRUCTURE Frankfurt Stock Exchange Placement (Prime Standard) Incorporation Luxembourg Free 13.07.2015 float First equity issuance (€3.2 per share) 64% Shares held Number of shares (basic) 1,537,025,609 in treasury* Number of shares, base for share KPI calcula
Slide 31: Commercial Investment Properties
COMMERCIAL INVESTMENT PROPERTIES MAR 2021 Investment Lettable area Annualized EPRA Vacancy In-place rent/sqm (€) Value/sqm (€) Rental Yield Portfolio by asset type* property (€m) (k sqm) net rent (€m) Office 11,471 3,755 11.3% 468 11.2 3,055 4.1% Hotel 5,373 1,760 3.9% 294 14.3 3,053 5.5% Retail 1,5
Slide 32: Best in Class Berlin Portfolio
BEST IN CLASS BERLIN PORTFOLIO – MAR 2021 LOCATED IN THE BEST 90% NEIGHBORHOODS OF BERLIN 90% of the commercial portfolio is Top Tier located in top tier neighborhoods: Strongly benefiting from the unique dynamics & growth of Charlottenburg, Wilmersdorf, Berlin’s most in demand Mitte, Kreuzberg, Fri
Slide 33: Strategic Top Tier Hotels in Strong Locations
STRATEGIC TOP TIER HOTELS IN STRONG LOCATIONS WITH FASTER RECOVERY POTENTIAL Hotel Rooms Brand Hotel Rooms Brand Hotel Rooms Brand Hilton Berlin Gendarmenmarkt 601 Crowne Plaza Berlin Prime Center Potsdamer Platz 256 Mark Apart Berlin Prime Center Ku’damm 120 Prime Center NH Hotel Dortmund Prime Cen
Slide 34: Highest Rated German Commercial Real Estate Company
HIGHEST RATED GERMAN COMMERCIAL REAL ESTATE COMPANY S&P Ratings Financial risk profile Financial policy: Matrix 1 2 3 4 5 6 Minim Modest Intermediate Significant Aggre High al ssive Lever aged Strive to achieve A global rating in the long term 1 aaa/ bbb- Business risk profile Excellent aa a+/a a- b
Slide 35: Aroundtown Bond Covenants
AROUNDTOWN BOND COVENANTS ✓ Each of the bond covenants is met with a significant headroom. Internal financial policy is set at stricter levels ✓ ECB eligibility: Bonds issued under the EMTN Programme (Listed in the EU)* ✓ The bonds are unsecured and have the below covenant package: Overview of Coven
Slide 36: Equity Analyst Research Coverage and Share Performance
EQUITY ANALYST RESEARCH COVERAGE AND SHARE PERFORMANCE Analyst Research Target Price €7.4 average target price 8.60 8.60 8.50 8.50 8.00 7.90 7.90 7.90 7.60 7.50 7.25 7.00 6.90 6.50 6.00 5.50 5.20 RESTRICTED First BerlinHauck & Aufhäuser SRC ResearchDeutsche Bank HSBC M.M. Warburg Oddo BHF Kepler Che
Slide 37: Capital Market Activity
CAPITAL MARKET ACTIVITY Capital market activity per year Capital market activity per issuance type 2015-2021 YTD €4.6bn €4.0bn €4.2bn €4.2bn Str. €11.0bn Bond €2.6bn Conv. €0.8bn Bond €1.2bn €0.6bn Equity €6.2bn €3.2bn €0.2bn 2015 2016 2017 2018 2019 2020 2021 YTD Equity (incl. Conversions) Perpetua
Slide 38: Appendix: ESG
APPENDIX: ESG NAVIGATE BACK TO TABLE OF CONTENTS 38
Slide 39: Commitment to ESG
COMMITTMENT TO ESG E CLEARLY S SOCIALLY G HIGH LEVEL OF SET TARGETS RESPONSIBLE GOVERNANCE Strong commitment to Management oversight Reduce GHG emission maintain high tenant from Board of Directors satisfaction (BoD) Reduce water 67% of BoD is Increase employee consumption and independent/non retent
Slide 40: AT's ESG Target Set Overview
AT’S ESG TARGET SET OVERVIEW 40
Slide 41: ESG – Environment Part 1: Conserving Energy, Reducing Carbon Footprint
ESG – ENVIRONMENT PART 1: CONSERVING ENERGY MEASURES, REDUCING CARBON FOOTPRINT GHG EMISSION REDUCTION (SCOPE 1, 2 & 3) ENERGY INVESTMENT PROGRAM Energy Investment Program: Replacing/upgrading fossil fuel installation of PV's, CHP/CCHP, EV heating systems and switching to charging stations, smart me
Slide 42: ESG – Environment Part 2: Energy Efficient Buildings
ESG – ENVIRONMENT PART 2: ENERGY EFFICIENT BUILDINGS GREEN BUILDING CERTIFICATIONS Building upgrades with the goal to receive green building certifications (DGNB, LEED, Development/major refurbishments: BREEAM). Pilot project started in the NL to get Aimed to build for certification eligibility the
Slide 43: ESG – Environment Part 3: Water and Waste Management
ESG – ENVIRONMENT PART 3: WATER AND WASTE MANAGEMENT WATER CONSUMPTION WASTE MANAGEMENT Remote water meters create Efficiently incentivized in Germany awareness, influence tenant and other locations of portfolio (no behavior, detect water leaks and charge for recycling and paper) unusual water usage
Slide 44: ESG – Social Part 1: Community Building
ESG – SOCIAL PART 1: COMMUNITY BUILDING Aroundtown Foundation Local partnerships AT focuses on establishing productive partnerships with local stakeholders to ensure that corporate activities are aligned to the tenants and communities Around a dozen of charities across portfolio’s locations, working
Slide 45: ESG – Social Part 2: Tenant Management
ESG – SOCIAL PART 2: TENANT MANAGEMENT HOLISTIC TENANT MANAGEMENT APPROACH ENGAGEMENT AVAILABILITY POLICY ENFORCEMENT Tailor-made approach, Finalizing new tenant policy Main tool to monitor and customized leases, balancing which sets standardized goals 24/7 tenant support enforce tenant satisfaction
Slide 46: ESG – Social Part 3: Workforce & Diversity
ESG – SOCIAL PART 3: WORKFORCE & DIVERSITY Goal to become top employer in commercial real estate to attract best new talent TRAINING COLLABORATION Employee training Dynamic & open RETENTION programs to ensure corporate culture, Employee retention knowledge sharing fostering personal program to reduc
Slide 47: Board of Directors
BOARD OF DIRECTORS BOARD OF DIRECTORS – 4/6 MEMBERS ARE INDEPENDENT/NON-EXECUTIVE & 2/6 ARE FEMALE DIVERSE MIX OF PROFESSIONALS WITH STRONG & LONG EXPERIENCE, FOCUS ON REAL ESTATE INDUSTRY & FINANCING MARKUS LEININGER- INDEPENDENT DIRECTOR FRANK ROSEEN – EXECUTIVE DIRECTOR FORMER SENIOR BANKER WITH
Slide 48: Board Committees and the Advisory Board
BOARD COMMITTEES AND THE ADVISORY BOARD ALL COMMITTEES ARE IN PLACE WITH INDEPENDENT MEMBERS IN PLACE AUDIT ESG/CSR IT/ CYBER SECURITY RISK NOMINATION REMUNERATION COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE (MAINTAINING THE INTEGRITY (REVIEWING SHAREHOLDER (PROTECTING THE (ASSESSING
Slide 49: Management Team
MANAGEMENT TEAM MANAGEMENT BODY IS SUPERVISED BY THE BOARD OF DIRECTORS BARAK BAR-HEN – CO-CEO & COO (CO-CHIEF EXECUTIVE EYAL BEN DAVID – CFO (CHIEF FINANCIAL OFFICER) OFFICER AND CHIEF OPERATING OFFICER) SINCE 2008 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SINCE 2020 IN THE MANAGEMENT OF AROUNDTOWN A
Slide 50: Management Team – Senior Management
MANAGEMENT TEAM – 2 SENIOR MANAGEMENT MARKUS NEURAUTER - HEAD OF COMMERCIAL OPERATIONS ALFRED KANDL - HEAD OF CONSTRUCTION MANAGEMENT MR KANDL HAS 35 YEARS OF EXPERIENCE IN THE REAL ESTATE AND BUILDING INDUSTRY. HE BEFORE JOINING THE GROUP HE WAS A BOARD MEMBER OF STRABAG AG AND CEO OF RAIFFEISEN WO
Slide 51: Appendix: Development Projects
APPENDIX: DEVELOPMENT PROJECTS NAVIGATE BACK TO TABLE OF CONTENTS 51
Slide 52: Development/Building Rights – Dresden Prime Center
DEVELOPMENT/BUILDING RIGHTS – DRESDEN PRIME CENTER PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ❑ Dresden Annenhöfe Project where modern meets historic ❑ The property is located in the heart of Dresden where ❑ Currently in the construction phase / expected city center: Creating 25k
Slide 53: Development/Building Rights – Hotel im Wasserturm Cologne
DEVELOPMENT/BUILDING RIGHTS – HOTEL IM WASSERTURM COLOGNE PRIME CENTER PROPERTY DESCRIPTION REPOSITIONING ❑ The hotel is situated in the prime center of Cologne’s old ❑ Complete upgrade, redesign and branding to Curio city, not far from the main train station. The landmark Collection by Hilton expec
Slide 54: Development/Building Rights – Hotel Paris City Center
DEVELOPMENT/BUILDING RIGHTS – HOTEL PARIS CITY CENTER PROPERTY DESCRIPTION PROPERTY LOCATION REPOSITIONING ❑ The 4-star hotel is centrally located in the 14th ❑ Complete renovation and refurbishment, with a dual ❑ The property is located in the heart of Paris and benefits arrondissement of Paris. Th
Slide 55: Development/Building Rights – Berlin Mitte Rosa-Luxemburg-Platz
DEVELOPMENT/BUILDING RIGHTS – BERLIN PRIME CENTER MITTE ROSA-LUXEMBURG-PLATZ PROPERTY DESCRIPTION PROPERTY LOCATION REPOSITIONING ❑ The hotel is situated in Berlin’s prime central district, ❑ The property is located in the heart of the city, within a ❑ Complete upgrade, redesign and branding accordi
Slide 56: Development/Building Rights – Berlin Brewery Project
DEVELOPMENT/BUILDING RIGHTS – BERLIN TREPTOW-KÖPENICK – THE BREWERY PROJECT PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ❑ This office property is located in the Niederschöneweide ❑ Located between Treptower Park and Adlershof Science ❑ Conversion and development into mixed use urba
Slide 57: Development/Building Rights – Frankfurt Main Central Train Station
DEVELOPMENT/BUILDING RIGHTS – FRANKFURT MAIN CENTRAL TRAIN STATION PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ❑ The 22-storey office tower covers 20k sqm and is ❑ The office tower is located at the corner of ❑ Capex for repositioning and renting at market rents: situated adjacent
Slide 58: Development/Building Rights – Berlin Alexanderplatz
DEVELOPMENT/BUILDING RIGHTS – PRIME CENTER BERLIN ALEXANDERPLATZ PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ❑ TLG’s office building on Berlin’s Alexanderplatz covers ❑ The asset’s district “Mitte” is Berlin’s top office district ❑ Development plans include three new buildings, inc
Slide 59: Development/Building Rights – Hilton Berlin Gendarmenmarkt
DEVELOPMENT/BUILDING RIGHTS – HILTON BERLIN PRIME CENTER GENDARMENMARKT PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ❑ The 4 star Hilton Hotel is located in the heart of Berlin on ❑ The asset’s district “Mitte” is Berlin’s top office district ❑ Overground parking garage: Conversion
Slide 60: Development/Building Rights – Berlin Kreuzberg/Alt-Treptow
DEVELOPMENT/BUILDING RIGHTS – BERLIN KREUZBERG/ALT-TREPTOW PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ➢ The cinema center holds 7k sqm & is located across the ❑ Located between Mediaspree and Adlershof Science Park, ❑ Conversion into an office building: Park Center retail/office c
Slide 61: Development/Building Rights – Berlin Prime Center Ku'damm
DEVELOPMENT/BUILDING RIGHTS – BERLIN PRIME CENTER KU’DAMM PROPERTY DESCRIPTION MARKET DEMAND DEVELOPMENT POTENTIAL ❑ This 7k sqm property is located on Adenauerplatz in ❑ The area surrounding Ku’damm is highly demanded for all ❑ Addition of new floors with condominiums expected to Berlin’s western p
Slide 62: Development/Building Rights – Frankfurt Mainzer Landstraße
DEVELOPMENT/BUILDING RIGHTS – FRANKFURT PRIME CENTER (MAINZER LANDSTRAßE) PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ❑ The 40-story property is an office skyscraper standing ❑ The office tower is located in the Bahnhofsviertel, ❑ The asset is leased to the German National Bank 140
Slide 63: Appendix: Focus on Central Locations of Top Tier Cities
APPENDIX: FOCUS ON CENTRAL LOCATIONS OF TOP TIER CITIES NAVIGATE BACK TO TABLE OF CONTENTS 63
Slide 64: Berlin Alexanderplatz: Prime Commercial and Tourist Center
BERLIN ALEXANDERPLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER landmark AT property 18% of Berlin (AT’s commercial, by full value) 64
Slide 65: Berlin Potsdamer Platz: Prime Commercial and Tourist Center
BERLIN POTSDAMER PLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER Potsdamer Platz Potsdamer Platz landmark Office Office AT property Crowne Plaza Potsdamer Platz Hotel Checkpoint Charlie Potsdamer Platz Hotel Office Potsdamer Platz Checkpoint Charlie Residential (GCP) Office Potsdamer Platz Checkpoint
Slide 66: Berlin Ku'damm: Prime Commercial and Tourist Center
BERLIN KU’DAMM: THE PRIME COMMERCIAL AND TOURIST CENTER Berlin City Center Mitte Berlin City Center Mitte Retail Office Potsdamer Platz landmark Moxy by Marriot Berlin Mitte Ku’Damm KaDeWe Hotel Residential (GCP) AC by Marriot Berlin Mitte AT property Hotel Ku’Damm KaDeWe Office Berlin City Center M
Slide 67: Frankfurt: Quality Assets in Central Locations
FRANKFURT: QUALITY ASSETS IN CENTRAL LOCATIONS landmark AT property Frankfurt Büro Center (FBC) Frankfurt HBF Frankfurt Stadtmitte InterContinental Frankfurt Frankfurt HBF Frankfurt Office Campus Office Office Office Hotel Office Office European Central 53% Bank Headquarters Frankfurt Hauptbahnhof o
Slide 68: Frankfurt: Quality Assets Near Main Central Train Station and Messe
FRANKFURT: QUALITY ASSETS NEAR MAIN CENTRAL TRAIN STATION AND MESSE Frankfurt Stadtmitte Office landmark Frankfurt Büro Center (FBC) AT property Frankfurt Messe Frankfurt Messe Frankfurt Messe Office Office Office Office Intercontinental Frankfurt Frankfurt HBF Hotel Office Frankfurt Banking Distric
Slide 69: Munich: Assets in Central Locations, Near Exhibition Center
MUNICH: ASSETS IN CENTRAL LOCATIONS, NEAR EXHIBITION CENTER & COMMERCIAL HUBS Global HQs of Allianz Global landmark German HQs of Generali Corporate & Specialty Insurance AT property Schwabing – Munich’s highest Global HQs of Wacker Chemie populated Englischer AG district Garten Munich Schwabing Mun
Slide 70: Amsterdam – Centrally Located High Quality Assets
AMSTERDAM – CENTRALLY LOCATED HIGH QUALITY ASSETS Amsterdam Amsterdam Zuidoost Amsterdam landmark Zuidoost Office Sloterdijk Office Amsterdam West Train Station AT property Office Complex Office Amsterdam Arena Office Amsterdam Sloterdijk Amsterdam Office Westpoort Office Amsterdam Arena Amsterdam A
Slide 71: Hamburg – Well Placed Across Germany's Second-Largest City
HAMBURG – WELL PLACED ACROSS GERMANY’S SECOND-LARGEST CITY landmark Hamburg Business Hamburg Business AT property District District Office Office Hamburg Business District Science Campus Office Hamburg Business District Office Mercure Hamburg Business District Hotel 53% of Hamburg (AT’s commercial,
Slide 72: Dresden – Prime Assets in Historic City Center
DRESDEN – PRIME ASSETS IN HISTORIC CITY CENTER Dresden main central landmark Main central train station train station Hotel AT property Main central train station Office City Center Office Zwinger Main High Street Office Retail Historic City Center Retail City Center 65% Office of Dresden (AT’s comm
Slide 73: Leipzig – Centrally Located Top Tier Assets at Hauptbahnhof
LEIPZIG – CENTRALLY LOCATED TOP TIER ASSETS AT HAUPTBAHNHOF Main central train landmark station Office Leipzig main central AT property train station Main central train station Main central train station Hotel Office City Center Promenade Nikolaikirche Office/Retail 38% of Leipzig (AT’s commercial,
Slide 74: Appendix: Market Data
APPENDIX: MARKET DATA NAVIGATE BACK TO TABLE OF CONTENTS 74
Slide 75: Regional Market Overview
REGIONAL MARKET OVERVIEW Bremen Hamburg ◼ GDP growth1 : 3.3% ◼ GDP growth1 : 2.4% ◼ Migration balance2: 1.1% ◼ Migration balance2: 0.9% ◼ Population density3: 1,734 per km2 ◼ Population density3 : 2,397 per km2 Amsterdam Hannover ◼ GDP growth1 : 3.8% ◼ GDP growth1 (NI): 2.5% ◼ Migration balance2: 6.
Slide 76: Office Market Germany – Historically Low Vacancies and Stable Rents
OFFICE MARKET GERMANY – HISTORICALLY LOW VACANCIES AND STABLE RENTS GERMAN OFFICE MARKET ENTERED PRE-LET RATIOS INCREASED UNDERSUPPLY WITH STRONG THE COVID-19 LOCKDOWN WITH FURTHER DURING THE LOCKDOWN DEMAND KEEPS THE OFFICE MARKET RECORD LOW VACANCY RATES PERIOD RENTS STABLE IN BIG 7 Germany Top 52
Slide 77: Office Market Germany – Supportive Values
OFFICE MARKET GERMANY – SUPPORTIVE VALUES CONTINUOUS STRONG DEMAND RECENT MARKET DEALS SHOW THE SUPPORTED BY HISTORICALLY LARGE INVESTMENT VOLUMES REMAIN SUSTAINED HIGH DEMAND IN SPREAD OF PRIME OFFICE YIELDS TO HIGH, WELL ABOVE GFC LEVELS GERMAN OFFICE REAL ESTATE GOVERNMENT BOND YIELDS Pre-GFC lev
Slide 78: Office Market Compared to Previous Crisis and Recovery
OFFICE MARKET COMPARED TO PREVIOUS CRISIS AND RECOVERY GERMAN OFFICE VACANCY DEVELOPMENT 2007 vs 2020e HIGH PRE-LET RATIOS, INCREASED DURING PANDEMIC VERY LOW VACANCIES ENSURE THAT THE MARKET IS CURRENTLY AS A RESULT OF LOW NEW SUPPLY AT STRONG DEMAND WELL POSITIONED TO SUSTAIN A DOWNTURN Vacancies
Slide 79: Dutch Office Market – Low Vacancies and Stable Rents
DUTCH OFFICE MARKET – LOW VACANCIES AND STABLE RENTS DUTCH OFFICE MARKET MAINTAINS ITS ATTRACTIVENESS DURING THE PANDEMIC Demand for high quality office space is high and supply is still scarce. New letting was lower due to delay in relocation decisions. Rents and values were stable during the pande
Slide 80: Resilient German Residential Market
RESILIENT GERMAN RESIDENTIAL MARKET POSITIVE NET MIGRATION REDUCTION OF HOUSEHOLD SIZE SIGNIFICANT UNDERSUPPLY RESULTS IN HIGH DEMAND RESULTS IN HIGH DEMAND Positive Net Migration in Germany 1) Increase in the share of 1 person households1) Building permits at low levels, significantly 1,200k 450 be
Slide 81: Highest Share of Domestic Travel Supports Fast Recovery in Germany
HOTEL MARKET – RECOVERY IS EXPECTED TO BE FAST IN GERMANY, UK AND NL HIGHEST SHARE OF DOMESTIC TRAVEL SUPPORTS FAST RECOVERY IN GERMANY Domestic travel is expected to recover faster while it will take longer for international travel to recover. Thanks to its high share of domestic travel, the lag in
Slide 82: German Hotel Market – Domestic Travel Key for Recovery
GERMAN HOTEL MARKET - DOMESTIC TRAVEL WILL BE THE KEY FOR RECOVERY FROM COVID GERMAN HOTEL MARKET RECOVERED FAST DURING PAST CRISIS, OWING TO HIGH SHARE OF DOMESTIC TRAVEL AND LOW DEPENDENCY ON LONG-HAUL FLIGHTS, MUCH QUICKER THAN THE REST OF EUROPE AND ALSO AT A HIGHER ACCELERATION RATE 82
Slide 83: Disclaimer
DISCLAIMER IMPORTANT: This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law, e.g. regarding national and international insider dealing rules, and must not be distribute