Aroundtown Sa · XETR:AT1
Aroundtown Sa — Aroundtown Sa Ord — FY 2020 Earnings Presentation
82 slides from Aroundtown Sa's earnings presentation, Mar 25, 2021
Slide 1: FY 2020 Financial Results
AROUNDTOWN SA FY 2020 FINANCIAL RESULTS MARCH 2021
Slide 2: Table of Contents
TABLE OF CONTENTS 1 2 OPERATIONS & HIGHLIGHTS PORTFOLIO 3 4 ESG FINANCIAL RESULTS 5 6 GUIDANCE APPENDIX 2
Slide 3: Highlights
HIGHLIGHTS NAVIGATE BACK TO TABLE OF CONTENTS 3
Slide 4: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS BOTTOM LINE TOP LINE VALUATIONS FFO I = FFO I after perpetual €358m €0.27 €1,003m €769m / +3.9% FFO I FFO I per share 1) Net rental income (previously defined as FFO I per share Revaluation and capital (previously defined as FFO I after +31% YOY perpetual, Covid adju
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS ACCRETIVE M&A SOLID FINANCIAL CONSERVATIVE DEBT PROACTIVE GROWTH WITH TLG POSITION PROFILE REFINANCING €24.5bn €3.3bn 6.1y Over €1.5bn Group Portfolio* Cash and liquid assets Long average debt maturity Debt repayments during 2020 €15.6bn / 76% of rent 1.4% 65% / 24% Funded by dis
Slide 6: Disposals in 2020
DISPOSALS IN 2020 DISPOSALS OF MAINLY NON-CORE >€2.7 BILLION Mainly spread across Mainly spread across Non-core Signed during 2020 non-core cities in non-core cities in Germany Germany cities 40% Berlin Cologne 2% 20% Stuttgart 3% Development & Hotel 8% Mainly Frankfurt, Frankfurt Dresden/ Dresden &
Slide 7: Strong Distribution to Shareholders via Multiple Channels
STRONG DISTRIBUTION TO SHAREHOLDERS VIA MULTIPLE CHANNELS ACCRETIVE SHARE BUYBACKS DURING 2020, €1BN BOUGHT BACK AT AN AVG. PRICE OF €4.9, FUNDED BY DISPOSALS ABOVE BOOK VALUE CLOSE TO 50% DISCOUNT TO NAV +12% shareholder return including dividends +12% SHAREHOLDER VALUE GROWTH By disposing assets a
Slide 8: Corporate Achievements in 2020
CORPORATE ACHIEVEMENTS IN 2020 EPRA AWARDS INDEX INCLUSION IMPROVED GOVERNANCE (4 YEARS IN A ROW) 50% of Aroundtown’s Board of Directors are independent directors and 33% members are AT is included in the new DAX 50 ESG Index In September 2020, AT received the EPRA BPR female, providing further supp
Slide 9: Operations & Portfolio
OPERATIONS & PORTFOLIO NAVIGATE BACK TO TABLE OF CONTENTS 9
Slide 10: Strong Locations & Property Quality Are Key to Success
STRONG LOCATIONS & PROPERTY QUALITY ARE KEY TO SUCCESS & STABILITY OF THE PORTFOLIO GERMANY & THE NETHERLANDS: GERMANY & THE 86% OF THE PORTFOLIO NETHERLANDS Well-diversified across AAA sovereign top tier cities credit rating of the commercial portfolio Among the lowest >25% of EU’s GDP & Home unemp
Slide 11: 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 12: Defensive Portfolio with Strong Tenant Structure
DEFENSIVE PORTFOLIO WITH STRONG TENANT STRUCTURE Large tenant base of over 4,000 Limited dependency on single tenants: Collection rate is back to pre-Covid tenants is further supported by Top 10 Tenants: 18% of rental income levels for all asset types excl. hotels highly granular German residential
Slide 13: Like-for-Like Rental Income
LIKE-FOR-LIKE RENTAL INCOME POSITIVE ORGANIC GROWTH FROM INTERNAL LFL OCCUPANCY VS IN-PLACE RENT SOURCES TOTAL LIKE-FOR-LIKE POSITIVE ORGANICNET GROWTH RENTAL FROM INTERNAL POSITIVEL-F-L ORGANIC GROWTH FROM In-place rent Occupancy L-F-L INCOME GROWTH +0.4% -0.2% +1.3% SOURCES L-F-L Excl. Hotels +0.2
Slide 14: Property Revaluations in 2020
PROPERTY REVALUATIONS IN 2020 Through the high degree of diversification STRONG VALUATION RESULTS DIVERSIFICATION AS A (asset type, location, tenants, lease structure), AT benefits from many KEY DRIVER different value drivers which support the overall portfolio valuations +3.9% LFL VALUATIONS (Dec 2
Slide 15: Commercial Portfolio: Upside Potential as Downside Protection
COMMERCIAL PORTFOLIO: UPSIDE POTENTIAL AS A DOWNSIDE PROTECTION Commercial Dec 2020 annualized rental income vs. Market potential including vacancy reduction not including Large upside potential from rent increases to development potential (in €m) market levels +23% 1,083 Long lease terms with a WAL
Slide 16: 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 4.6
Slide 17: Residential Portfolio
RESIDENTIAL PORTFOLIO RESIDENTIAL: 14% of the Group portfolio GERMAN RESIDENTIAL: THE MOST RESILIENT GERMANY 80%: NRW: 17% Berlin: 26%, ASSET TYPE IN Dresden/Leipzig/Halle: 13% 9 YEARS AVERAGE GRANULAR TENANT EUROPEAN London: 19% TENANCY LENGTH BASE REAL ESTATE... ...REMAINED RESILIENT 1.8% like-for
Slide 18: Hotel Portfolio
HOTEL PORTFOLIO HOTEL: 24% of the Group portfolio Across Europe with a focus on locations WELL-DISTRIBUTED with large catchment areas Long fixed contracts with no variable 174 HOTELS 17.3Y WALT component Mainly in top tier European cities Benefitting from the largest diverse 4 STAR: 85% demand segme
Slide 19: Tenants and Brands
TENANTS AND BRANDS FIXED OF 10-25 YEARS (WALT OF 17.3Y) leases to over 30 different strong third party hotel operators, operating with high profitability for many years Diverse branding mix, each brand bringing its own unique strengths and market positioning Center Parcs (CP) is the largest tenant w
Slide 20: Update on Hotel Rent Collection
UPDATE ON HOTEL RENT COLLECTION Leases have been extended at a higher rent. In FY 2020 COMPLETED return a rent-free period is granted, providing Collection Rate NEGOTIATIONS AT HIGHER immediate relief to tenants. The higher rent and 60%1)2) RENT AND LONGER WALT longer leases are cash flow accretive
Slide 21: Strength of Lease Structures
HOTEL PORTFOLIO RECOVERY POTENTIAL ONCE RESTRICTIONS ARE LIFTED FIXED LONG LEASES TO NO VARIABLE STRENGTH OF COMPONENTS 77% OF HOTELS 1) BY MORE THAN 30 LEASE The rental agreements are double or RENT ARE OPEN AS OF DIFFERENT THIRD PARTY STRUCTURES triple net, fixed plus CPI linked, with no MARCH 202
Slide 22: Logistics and Retail Portfolio
LOGISTICS AND RETAIL PORTFOLIO LOGISTICS: 4% RETAIL: 7% of of the Group the Group portfolio portfolio 5.7y WALT 5.0y 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 Over 40% of the portfo
Slide 23: Maintenance, CAPEX and AFFO
MAINTENANCE, CAPEX AND AFFO 2019 Ratio of CAPEX over Investment Property: 1.3%* 2020 Ratio of CAPEX over Investment Property: 1.3%* Maintenance (in €m) Maintenance ratio of investment property Expansion Capex Expansion Capex decreased to 0.14% in 2020 from 0.15% in 2019 41% 46% Tenant Tenant Improve
Slide 24: ESG
ESG NAVIGATE BACK TO TABLE OF CONTENTS 24
Slide 25: Further Steps Taken on ESG Commitments
FURTHER STEPS TAKEN ON ESG COMMITMENTS 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 Increase employee 50% of BoD is consumption and re
Slide 26: AT's ESG Target Set Overview
AT’S ESG TARGET SET OVERVIEW 26
Slide 27: Financial Results
FINANCIAL RESULTS NAVIGATE BACK TO TABLE OF CONTENTS 27
Slide 28: Profit and Loss
PROFIT AND LOSS 1-12/2020 1-12/2019 Net rental income, recurring long-term* (in €m) in € millions REVENUE 1,180.3 894.8 RECURRING LONG-TERM NET RENTAL INCOME 953.3 756.1 CAGR +32% +26% PROPERTY REVALUATIONS AND CAPITAL GAINS 769.4 1,217.5 YOY Share in profit from investment in equity-accounted inves
Slide 29: Adjusted EBITDA
ADJUSTED EBITDA 1-12/2020 1-12/2019 in € millions Subtracted as these profits include AT’s share in non-operational profits generated by the Operating profit 1,651.7 2,155.8 equity accounted investees Total depreciation and amortization 4.3 1.7 EBITDA 1,656.0 2,157.5 Property revaluations and capita
Slide 30: FFO I & FFO II
FFO I & FFO II 1-12/2020 1-12/2019 FFO I PER SHARE (IN €) in € millions (PREVIOUSLY DEFINED AS FFO I AFTER PERPETUAL, COVID ADJUSTED) FFO I BEFORE PERPETUAL BEFORE COVID 567.4 503.4 Perpetual notes attribution (89.6) (57.8) FFO I BEFORE COVID 477.8 445.6 (PREVIOUSLY DEFINED AS FFO I AFTER PERPETUAL)
Slide 31: New EPRA NAV KPIs
NEW EPRA NAV KPIS Dec 2020 Dec 2019 in € millions unless otherwise indicated EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV EQUITY ATTRIBUTABLE TO THE OWNERS OF THE COMPANY 10,424.8 10,424.8 10,424.8 9,585.5 9,585.5 9,585.5 Deferred tax liabilities 1) 1,853.2 1,494.5 - 1,119.5 914.0 - Fair va
Slide 32: 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 +9% YOY +6% YOY -1% YOY +13% YOY +10% YOY +3% YOY 13.1 11.2 11.1 9.5 12.0 10.5 8.4 8.4 8.6 6.9 7.1 9.8 Dec 2019 Dec 2020 Dec 2019 Dec 2020 Dec 2019 Dec 2020 Dec 2019 Dec
Slide 33: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE DEBT MATURITY PROFILE Consistently low leverage (LTV) Cash cover ratio Debt maturity Cost of debt 1,200 Millions 4 times 6.1 years 1.4% 1,000 Liquidity/ debt maturing in 3y Company BOD limit of 45% Ø maturity Ø cost of debt 800 600 400 36% 35% 34% 34% 200 0 2021 2022 2
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: Guidance
GUIDANCE NAVIGATE BACK TO TABLE OF CONTENTS 35
Slide 36: 2021 Guidance
2021 GUIDANCE FY 2021 GUIDANCE FY 2020 ACTUAL FFO I (in € million)* 340 - 370 358 FFO I per share (in €)* 0.29-0.31 0.27 Dividend per share (in €) 0.22-0.24 0.22 * previously defined as FFO I after perpetual, Covid adjusted ❖ Growth on a per share basis driven by 2020 share buyback, having a full ye
Slide 37: Appendix
APPENDIX NAVIGATE BACK TO TABLE OF CONTENTS 37
Slide 38: Share Information
SHARE INFORMATION THE SHARE SHAREHOLDER STRUCTURE Frankfurt Stock Exchange Placement (Prime Standard) Incorporation Luxembourg Free float 13.07.2015 65% First equity issuance (€3.2 per share) Shares held Number of shares (basic) 1,537,025,609 in treasury* 25% Number of shares (basic), excl. suspende
Slide 39: Commercial Investment Properties
COMMERCIAL INVESTMENT PROPERTIES DECEMBER 2020 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 11,558 3,841 11.6% 467 10.8 3,009 4.0% Hotel 5,409 1,788 4.0% 295 14.1 3,025 5.5% Retai
Slide 40: Best in Class Berlin Portfolio
BEST IN CLASS BERLIN PORTFOLIO – DECEMBER 2020 LOCATED IN THE BEST 89% NEIGHBORHOODS OF BERLIN 89% 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
Slide 41: 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 42: 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 43: Equity Analyst Research Coverage and Share Performance
EQUITY ANALYST RESEARCH COVERAGE AND SHARE PERFORMANCE Analyst Research Target Price 9.50 €7.2 average target price 8.60 8.60 8.50 8.00 7.90 7.90 7.90 7.50 7.25 7.00 7.00 7.00 6.90 6.30 6.30 6.00 5.50 5.20 4.60 SRC Research First Berlin Hauck & Deutsche Bank HSBC M.M. Warburg Oddo BHF Kepler Commerz
Slide 44: 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 45: ESG – Environment Part 1: Conserving Energy
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 46: 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 47: 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 48: 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 49: 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 50: 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 51: Board of Directors
BOARD OF DIRECTORS BOARD OF DIRECTORS – 3/6 MEMBERS ARE INDEPENDENT & 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 A FOCUS ON FIN
Slide 52: Board Committees and the Advisory Board
BOARD COMMITTEES AND THE ADVISORY BOARD ALL COMMITTEES ARE IN PLACE WITH INDEPENDENT MEMBERS IN PLACE NOMINATION REMUNERATION AUDIT COMMITTEE RISK COMMITTEE ESG/CSR COMMITTEE COMMITTEE COMMITTEE (MAINTAINING THE INTEGRITY OF THE (ASSESSING, MONITORING AND (REVIEWING SHAREHOLDER PROPOSALS FINANCIAL S
Slide 53: Management Team
MANAGEMENT TEAM MANAGEMENT BODY IS SUPERVISED BY THE BOARD OF DIRECTORS BARAK BAR-HEN – CO-CEO & COO (CO-CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER) SINCE 2020 IN THE MANAGEMENT OF AROUNDTOWN AND ITS EYAL BEN DAVID – CFO (CHIEF FINANCIAL OFFICER) SUBSIDIARIES. PREVIOUSLY, HE WAS TLG’S CEO A
Slide 54: 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 55: 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 Berlin VALUE EXTRACTION POTENTIAL Dresden ❑ Identifying underutilized land, building rights & conversion optionality in the existing
Slide 56: 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 57: 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 58: 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 59: 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 60: 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 situated ❑ The office tower is located at the corner of ❑ Aroundtown acquired the office tower with a short WALT. adjace
Slide 61: 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 62: 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 63: 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 64: Berlin Alexanderplatz: Prime Commercial and Tourist Center
BERLIN ALEXANDERPLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER Berlin Mitte Berlin Mitte Berlin Prime Center Mitte Pankow Residential (GCP) Residential (GCP) Hotel Mixed-use Pankow Mixed-use landmark Berlin Mitte Alexanderplatz Prenzlauer Berg Greifswalder str. Mixed-use campus Retail Berlin Mitte R
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 52% 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
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 Zwinger City Center Office 71% Office Zwinge
Slide 73: Leipzig – Centrally Located Top Tier Assets
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 Office Main central train station Main central train station Hotel Office City Center Promenade Nikolaikirche Office/Retail
Slide 74: 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 75: 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 76: 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 77: 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 78: Well-Positioned in the Top Performing European Markets
WELL-POSITIONED IN THE TOP PERFORMING EUROPEAN MARKETS AMSTERDAM AND TOP TIER MARKETS OF GERMANY RENTS ARE EXPECTED TO BE STABLE FOR MOST OF THE HAVE THE LOWEST OFFICE VACANCY AMONG EUROPE MARKETS DURING 2020 WHILE GERMANY AND THE AND PROJECTED TO STAY THAT WAY NETHERLANDS CLEARLY OUTPERFORM THE RES
Slide 79: 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 80: Hotel Market: Recovery Expected to Be Faster in Germany
HOTEL MARKET: RECOVERY IS EXPECTED TO BE FASTER IN GERMANY 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 internati
Slide 81: 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 81
Slide 82: 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