Slide 1: Aroundtown
G SA We AROUNDTOWN
Slide 2: Table of Contents
TABLE OF CONTENTS HIGHLIGHTS FINANCIAL RESULTS OPERATIONS AND PORTFOLIO GUIDANCE APPENDIX 2
Slide 3: Highlights
HIGHLIGHTS Profitability Highlights: Net rental income +23% at €358.5m. Recurring long-term net rental income at €354.7m (+28% YoY) Adjusted EBITDA +30% YoY at €362.5m FFO I +26% YoY at €239.3m, resulting in an FFO I per share of €0.21 ,+11% YoY (representing a yield of 5.6%1)) FFO I per share after
Slide 4: Financial Results
KS sa © AROUNDTOWN FINANCIAL RESULTS
Slide 5: Profit and Loss
PROFIT AND LOSS 1-6 / 2019 1-6 / 2018 Net rental income, recurring long-term* (in €m) in € millions REVENUE 420.6 347.6 CAGR RECURRING LONG-TERM NET RENTAL INCOME 354.7 277.7 733 +58% 709 2016-June 2019 PROPERTY REVALUATIONS, CAPITAL GAINS AND OTHER INCOME 679.4 899.6 Annualized 614 Share in profit
Slide 6: Adjusted EBITDA
ADJUSTED EBITDA 1-6 / 2019 1-6 / 2018 in € millions Subtracted as these profits include AT’s share in Operating profit 1,175.1 1,248.7 non-operational profits generated by the equity Total depreciation and amortization 0.8 0.8 accounted investees EBITDA 1,175.9 1,249.5 Property revaluations, capital
Slide 7: FFO I & II
FFO I & II 1-6 / 2019 1-6 / 2018 in € millions ADJUSTED EBITDA COMMERCIAL PORTFOLIO, FFO I PER SHARE (in €) DIVIDEND PER SHARE (in €) 298.2 227.3 RECURRING LONG TERM Finance expenses1) (70.3) (52.3) CAGR CAGR Current tax expenses (26.0) (20.2) +23% 0.42 +23% 2016-H1 2019 0.39 0.38 2016-H1 2019 Contr
Slide 8: Total Assets
TOTAL ASSETS TOTAL ASSETS (in €bn) Jun 2019 Dec 2018 in € millions Additions in key strategic locations CAGR Investment property 16,212.7 14,174 +51% 22.7 Equity-accounted investees in publicly 1,834.7 1,807.6 2016- traded company - holding in GCP SA Solid like-for-like gains Jun 2019 19.0 Equity-ac
Slide 9: EPRA NAV
EPRA NAV Jun 2019 Dec 2018 € millions Per share € millions Per share EPRA NAV (€m) NAV PER THE FINANCIAL STATEMENTS 11,453.1 9,944.3 Equity attributable to perpetual notes investors (1,973.6) (1,547.7) CAGR NAV EXCLUDING PERPETUAL NOTES 9,479.5 8,396.6 +47% 11,382 Fair value of derivative financial
Slide 10: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE Debt Maturity Profile* Financing Sources Mix 1,000 31% Millions 900 37% 39% 800 Straight bonds 9% 700 2% 6% 6% Loans & borrowings 600 Convertible Bonds 500 400 Equity 58% 57% 55% 300 200 100 0 Dec 2017 Dec 2018 Jun 2019 Interest Hedging Structure 2019 2020 2021 2022 20
Slide 11: Best in class financial ratios among peers
I. BEST IN CLASS FINANCIAL RATIOS AMONG PEERS II. HIGHEST RATED IN GERMAN COMMERCIAL REAL ESTATE Financial risk profile 1 2 3 4 5 6 Financial policy: Minim Modest Intermediate Significant Aggre High al ssive Levera ged 1 aaa/ bbb- Strive to achieve A- global rating in the long term Business risk pro
Slide 12: Operations and Portfolio
KS - (@arounvtown : OPERATIONS AND PORTFOLIO 12
Slide 13: Top Tier Cities (Jun 2019)
TOP TIER CITIES (JUN 2019) * “Others” includes, Brussels, Rome, Vienna, Edinburgh, Dublin, Bremen, Nuremberg, Kassel and others 13
Slide 14: Top Tier Cities – Central Quality Locations
TOP TIER CITIES – CENTRAL QUALITY LOCATIONS JUN 2019 Residential Commercial *accounting for 39% holding in GCP * * Including land for development and other rights 14
Slide 15: Top Tier Cities within Asset Classes
TOP TIER CITIES WITHIN ASSET CLASSES – JUN 2019 * 15 * Including land for development and other rights
Slide 16: Best in Class Berlin Portfolio
BEST IN CLASS BERLIN PORTFOLIO (JUN 2019) 90% of the commercial portfolio is located in top tier neighborhoods • Charlottenburg, Wilmersdorf, Mitte, Kreuzberg, Friedrichshain, Lichtenberg, Schöneberg, Neukölln, Steglitz and Potsdam • Strongly benefiting from the unique dynamics and growth of Berlin’
Slide 17: Potsdamer Platz: The prime commercial and tourist center
Berlin landmark property Potsdamer Platz: The prime commercial and tourist center Potsdamer Platz Office Potsdamer Platz Office Crowne Plaza Potsdamer Platz Hotel Checkpoint Charlie Potsdamer Platz Potsdamer Platz Potsdamer Platz Office Residential (GCP) Office Office Hilton Gendarmenmarkt Hotel Gen
Slide 18: Quality Berlin assets around Kurfürstendamm
Berlin landmark property Quality Berlin assets around Kurfürstendamm (Ku’Damm) Moxy by Marriot Berlin AC by Marriot Potsdamer Platz Mitte Hotel Berlin Mitte Hotel Ku’Damm KaDeWe Ku’Damm KaDeWe Berlin City Center Mitte Office Residential (GCP) Retail/Office Ku’damm /Uhlandstr. Berlin City Center Mitt
Slide 19: Quality Frankfurt assets in central locations
Frankfurt Quality Frankfurt assets in central locations InterContinental Frankfurt Hotel Frankfurt Office Campus Frankfurt HBF Offices Offices Frankfurt Hauptbahnhof (Central Train Frankfurt Deutsche Bahn Station) Office Frankfurt HBF Office Frankfurt Frankfurt Büro Center (FBC) Office landmark prop
Slide 20: Defensive Portfolio with Strong Tenant Structure
DEFENSIVE PORTFOLIO WITH STRONG TENANT STRUCTURE ➢ Limited dependency on single tenants due to large tenant base of over 3,000 tenants ➢ Top 10 tenants represent less than 20% of rent ➢ Long lease terms ➢ Portfolio WALT as of June 2019: Logistics/Wholesale Office Hotel Retail Total /Other 4.5 15.4 6
Slide 21: Highly Performing Hotel Locations
HIGHLY PERFORMING HOTEL LOCATIONS Well diversified portfolio of over 140 hotels totalling €4.4bn and approx. 1.4m sqm as of June 2019 High proportion (83%) in 4 star hotels, meeting the rising market demand from tourism & business travel Long-term and fixed leases to third party hotel operators Hote
Slide 22: Strategic Top Tier Hotels in Strong Locations
STRATEGIC TOP TIER HOTELS IN STRONG LOCATIONS Hotel: Rooms: Brand: Hilton Berlin Gendarmenmarkt Prime Center 601 Bristol Berlin Ku’damm Prime Center (ex-Kempinski) 301 InterContinental Frankfurt Prime Center 473 Hilton London Hyde Park Prime Center 132 Marriott Conference Hotel Paris City Center 757
Slide 23: Commercial Investment Properties
COMMERCIAL INVESTMENT PROPERTIES Portfolio breakdown per asset type* Investment Area EPRA Annualized net rent In-place Value Rental June 2019 properties (in k sqm) Vacancy (in €M) rent per sqm per sqm (in €) yield (in €M) (in €) Office 8,503 3,382 10.6% 390 10.2 2,514 4.6% Hotel 4,416 1,365 5.4% 213
Slide 24: Commercial Portfolio: Upside Potential
COMMERCIAL PORTFOLIO: UPSIDE POTENTIAL Commercial June annualized Rental Income vs. Commercial in-place rent Market potential including vacancy reduction compared to market rent prices (in € millions) +33% 975 18% 733 82% below market rent at market rent Jun 2019 annualized Annualized market potenti
Slide 25: Guidance Updated
GUIDANCE GUIDANCE UPDATED GUIDANCE IS CONSERVATIVELY BASED ON CURRENT PORTFOLIO AND CURRENT SIGNED DEALS. TAKEOVER OF SIGNED DEALS IS EXPECTED IN Q3 AND Q4 2019, FULL EFFECT STARTING 2020 2019 GUIDANCE 2019 PREVIOUS Following the strong acquisitions and recent UPDATE1) GUIDANCE issuances, Guidance i
Slide 26: Appendix
APPENDIX 26
Slide 27: Equity Analyst Research Coverage
EQUITY ANALYST RESEARCH COVERAGE Analyst Research Target Price 9.50 9.40 9.20 9.00 9.00 9.00 9.00 8.90 8.80 8.80 8.70 8.50 8.50 8.40 8.40 8.30 8.25 7.75 7.55 First Berlin Hauck & Berenberg Deutsche Bank HSBC Commerzbank Baader Bank Citigroup Bankhaus M.M. Warburg SRC Research Jefferies Kepler Oddo B
Slide 28: Aroundtown's Share Price Performance
AROUNDTOWN‘S SHARE PRICE PERFORMANCE Share performance and total return since initial placement of capital (13.7.2015) Aroundtown is the best performer in 2017/2018 amongst European real Estate 8.0 7.0 Aroundtown: +160% 6.0 EPRA Germany (rebased): +52% 5.0 Issue Price of €3.2 MDAX (rebased): +22% 4.
Slide 29: Capital Market Activity
CAPITAL MARKET ACTIVITY Capital market activity per issuance type 2015-2019 YTD Major index inclusions in 2017/2018 Perpetual notes Equity including conversions €2.6bn €10bn EUROPE 600 €3.4bn €0.8bn Equity Conv. Bond Str. Bond Continuously among the largest Equity and bond Capital market activity pe
Slide 30: ESG – Strong Commitment to Sustainability
ESG – STRONG COMMITMENT TO SUSTAINABILITY In April 2019, Aroundtown issued its second Corporate Responsibility Report, for the year 2018, demonstrating the Company’s commitment to sustainability and presenting the developments regarding the ESG related matters. The report is aimed at the Group’s inv
Slide 31: Strategy and Business Model
STRATEGY AND BUSINESS MODEL Quality assets with a focus on large EU 4 cities primarily in ROBUST CASH FLOWS WITH Capital Germany/NL Income LOW VACANCY SUPPORTED BY recycling by generating STRONG TENANT STRUCTURE, selling non- portfolios WHILE DISPOSING MATURE core/mature with value- AND NON-CORE PRO
Slide 32: Management
MANAGEMENT CEO and CFO Shmuel Mayo CEO of Aroundtown. Since 2006 in the management of Aroundtown and its subsidiaries. Previously, was the CEO of a leading international investment conglomerate. BA in Economics and Accounting, Law and CPA. Andrew Wallis Deputy CEO of Aroundtown. Since 2014 in the ma
Slide 33: Operational Management Team
OPERATIONAL MANAGEMENT TEAM Markus Neurauter Head of Commercial Operations. Before joining the Group he was a board member of Strabag AG and CEO of Raiffeisen evolution, responsible for project development in 11 European countries with a development volume of more than €2bn. Mr. Neurauter holds a ma
Slide 34: Development/Building Rights
DEVELOPMENT/BUILDING RIGHTS Strong market demand and scarcity of land Value of building rights increased significantly in central locations in top tier cities Berlin 38% Frankfurt Hamburg 20% Berlin Extracting additional value as part of our value add strategy Munich Stuttgart & 12% other Identifyin
Slide 35: Building Rights: Hilton Berlin Gendarmenmarkt
DEVELOPMENT/BUILDING RIGHTS HILTON BERLIN PRIME CENTER GENDARMENMARKT The 4 star Hilton Hotel is located in the heart of Berlin on Gendarmenmarkt, a prime tourist, residential and commercial center with historical & cultural landmarks and excellent connectivity & transportation options. Value extrac
Slide 36: Building Rights: Berlin Kreuzberg/Alt-Treptow
DEVELOPMENT/BUILDING RIGHTS BERLIN KREUZBERG/ALT-TREPTOW The cinema center holds 7k sqm & is located across the Park Center retail/office center in a mixed use office, residential & touristic area of the district of Treptow/Kreuzberg around the corner of the Treptowers office towers. Strong connecti
Slide 37: Building Rights: Berlin Brewery Project
DEVELOPMENT/BUILDING RIGHTS BERLIN TREPTOW-KÖPENICK – THE BREWERY PROJECT This office property is located in the Niederschöneweide quarter of Berlin’s Treptow-Köpenick borough, which is a mix-use area surrounded of commercial as well as a residential space with the Treptower Park to the north and in
Slide 38: Building Rights: Frankfurt Main Central Train Station
DEVELOPMENT/BUILDING RIGHTS FRANKFURT MAIN CENTRAL TRAIN STATION The 22 storey office tower covers 21k sqm and is situated adjacent Frankfurt’s main central train station and thus is well connected by public transport as well as its location just off Mainzer Landstraße, Frankfurt’s main inner city r
Slide 39: Regional Market Overview
Hamburg REGIONAL MARKET OVERVIEW Bremen ► GDP growth1: 2.4% ► Migration balance2: 0.9% ► Population density3: 2,397 per km2 ► GDP growth1 : 3.3% ► Migration balance2: 1.1% ► Population density3: 1,734 per km2 Hannover ► GDP growth (NI) 1: 2.5% NRW ► Migration balance2: 1.3% ► GDP share 2017 : 21% of
Slide 40: Germany/NL – Growing and Top Tier Economies
GERMANY/NL – GROWING AND TOP TIER ECONOMIES GDP per capita in 2009 – 2018 (in €) Strong trade balance for Germany and NL (in €bn) €43,000 Netherlands, €41,600 *At an average exchange 120 109.9 rate of €1.14477/GBP €38,000 Germany, €35,900 100 France, €32,800 80 €33,000 United Kingdom, €32,400 60 EU
Slide 41: Germany/NL – Strong Labor Market
GERMANY/NL – STRONG LABOR MARKET Development of gross wages Germany (in €) Unemployment rate Jun 2019 18% 4,000 3,880 3,771 3,703 15% 14.0% 3,750 3,612 3,527 3,449 12% 3,500 3,391 3,311 9.7% 3,227 8.7% 3,250 3,141 9% 3,000 6% 3.9% 3.1% 3.4% 2,750 3% 2,500 0% 2009 2010 2011 2012 2013 2014 2015 2016 2
Slide 42: German Office Market: Low Supply and Strong Demand
GERMAN OFFICE MARKET LOW SUPPLY AND STRONG DEMAND… Office employment growth remains strong* Continuously strong demand at low supply *In Top 7 locations according to DZ HYP: Berlin, Munich, Frankfurt, Cologne, Hamburg, Düsseldorf, Stuttgart Source: DZ HYP German Real Estate Market report – 2018/2019
Slide 43: German Office Market: Increasing Rents and Lower Vacancies
GERMAN OFFICE MARKET …LEAD TO INCREASING RENTS AND LOWER VACANCIES Strong reductions in vacancy in top locations Strong economic fundamentals and high office employment drive up demand, whilst supply is lacking, reducing vacancies Source: DZ HYP German Real Estate Market report – 2018/2019 - Bulwien
Slide 44: German Office Market: Investor Appetite Reduces Yields
GERMAN OFFICE MARKET MEANWHILE INVESTOR APPETITE REDUCES YIELDS Low treasury yields and continued high demand, especially in office… Source: DZ HYP German Real Estate Market report – 2018/2019 – Datastream, OECD Source: DZ HYP German Real Estate Market report – 2018/2019 – Ernst & Young Source: DZ H
Slide 45: Netherlands Office Market
NETHERLANDS OFFICE MARKET …RESULTING FROM FAVORABLE DEVELOPMENTS Current trends show very favorable market developments… Passing rents* 2015 –> H1 2018 Vacant space -29.7% *Excl. incentives 4.6% 2015 –> H1 2018 Total Office Stock -4.1% 2015 –> H1 2018 Office take-up 2015 -> 2017 4.5% Office Employme
Slide 46: German Hotel Market Overview
GERMAN HOTEL MARKET OVERVIEW CONTINUED STRONG DEMAND GROWTH Overnight stays across all hotel accommodation types in Germany RevPar development Rated hotels by category 300 5-star 1-star Millions 74€ 123 78 69 71 72€ 250 66 70€ 2-star 61 65 70€ 56 58 413 51 65€ 200 48 62€ 63€ 59€ 4-star 150 58€ 2,639
Slide 47: UK/London Hotel Market
UK/LONDON HOTEL MARKET POSITIVE DEVELOPMENTS AND FORECASTS Continued growth in oversee visits to the UK Strong investor appetite for hotel assets Source: PwC UK hotels forecast 2019 Source: PwC UK hotels forecast 2019 Positive developments in main KPIs across major UK cities from 2016 to 2017 Source
Slide 48: German Wholesale and Logistics
GERMAN WHOLESALE AND LOGISTICS BENEFITING FROM IMPROVED MARKET CONDITIONS Strong consumer climate provides strong benefits to wholesale and logistics, economic metrics such as Germany’s strong export position provide further benefits, increasing take-up sector wide Increasing take-up of space Sharpl
Slide 49: Macro Fundamentals Support GCP
MACRO FUNDAMENTALS SUPPORT GCP Population density H1 2017 Population Development Annualized growth in rent price index* (persons per sqkm) 85 Bremen 237 2.2% Millions of People 83.0 83.2 82.5 82.8 82.2 Hessen 1.7% 81.2 Berlin 1.7% 80.5 80.8 121 Bayern 1.5% 80 Nordrhein-Westfalen 1.5% Niedersachsen 1
Slide 50: Berlin
Berlin Mt , s i ‘ 50
Slide 51: London
London 51
Slide 52: Frankfurt
Frankfurt 52
Slide 53: Munich
Munich 53
Slide 54: NRW
Cologne Dortmund Dortmund Cologne Duisburg Essen Düsseldorf Düsseldorf Düsseldorf Essen Düsseldorf Düsseldorf NRW 54
Slide 55: Amsterdam
Amsterdam 55
Slide 56: Stuttgart, Baden Baden
CS coe ial Stuttgart Baden Baden
Slide 57: Hamburg
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Slide 58: 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