Aroundtown Sa · XETR:AT1
Aroundtown Sa — Aroundtown Sa Ord — 9M 2020 Earnings Presentation
75 slides from Aroundtown Sa's earnings presentation, Nov 25, 2020
Slide 1: 9M 2020 Financial Results Presentation
9M 2020 FINANCIAL RESULTS City: Frankfurt PRESENTATION District: City NOV 2020 Center Type: Office Area: 9k sqm Go to Maps
Slide 2: Table of Contents
9M 2020 AROUNDTOWN SA TABLE OF CONTENTS HIGHLIGHTS p3-p6 OPERATIONS AND PORTFOLIO p7-p28 FINANCIAL RESULTS p29-p34 GUIDANCE p35 KEY REMARKS City: Frankfurt p36-p38 District: CBD Type: Office APPENDIX Area: 43k sqm p39-p75 Go to Maps 2
Slide 3: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS UPCOMING DIVIDEND PROPOSAL OF €0.14 PER SHARE 1) STRONG SOLID CASH FLOW STRONG TOP LINE BOTTOM LINE PER SHARE EQUITY BASE Berlin Munich Frankfurt Amsterdam €723m Adjusted EBITDA €0.28 €736m €758m +30% YOY Revaluation and capital gains FFO I per share after Net Rental
Slide 4: Business Highlights
BUSINESS HIGHLIGHTS STRONG FINANCIAL CONSERVATIVE DEBT QUALITY PORTFOLIO POSITION PROFILE Berlin Frankfurt Amsterdam €25BN €2.5BN 6.2y Group Portfolio* Cash and liquid assets Long average debt maturity 65% / 24% €15BN / 74% of rent 1.6% Office & Residential* / Hotels Unencumbered investment properti
Slide 5: Disposals Year-to-Date
DISPOSALS YEAR-TO-DATE YTD SIGNED DISPOSALS OF MAINLY RETAIL & WHOLESALE YTD SIGNED DISPOSALS OF MAINLY NON-CORE CITIES ca. €2.1bn +3% 18x Non-core cities in Hessen (9%), Sachsen (7%), NRW (7%), Non-core Margin over Baden-Württemberg (4%), cities 50% YTD signed Rent multiple book value Bayern (4%),
Slide 6: Strong Distribution to Shareholders via Multiple Channels
STRONG DISTRIBUTION TO SHAREHOLDERS VIA MULTIPLE CHANNELS SHARE BUYBACK ON THE BACK OF DISPOSALS CLOSE TO €1BN BOUGHT BACK1) AT AN AVG. PRICE OF €4.9, UNIQUE GROWTH IN SHAREHOLDER VALUE 47% DISCOUNT TO EPRA NAV Disposals of assets above book value and fueling proceeds into share buyback at steep dis
Slide 7: Operations and Portfolio
OPERATIONS AND PORTFOLIO City: Berlin District: Mitte - Alexanderplatz Type: Office Area: 24k sqm Go to Maps 7
Slide 8: Germany & The NL: Strong Locations Key to Portfolio Stability
STRONG LOCATIONS & PROPERTY QUALITY ARE KEY TO SUCCESS & STABILITY OF THE PORTFOLIO Germany & The NL 86% of the commercial portfolio, well-diversified AAA credit rating across top tier cities of the commercial portfolio Among the lowest >25% of EU’s GDP & unemployment rate & Home of EU’s 8/15 larges
Slide 9: Strong Operational Diversification
STRONG OPERATIONAL DIVERSIFICATION DIVERSIFICATION ASSET TYPE* TENANT & INDUSTRY 65% / 24% High tenant & industry Office & Residential / diversification with no Hotel dependency Each location has distinct Strong diversification key demand drivers, among asset types with supporting industry diverse f
Slide 10: Defensive Portfolio with Strong Tenant Structure
DEFENSIVE PORTFOLIO WITH STRONG TENANT STRUCTURE Large Tenant Base with over 4,000 tenants Limited dependency Large tenants base of Long lease terms - WALT on single tenants: over 4,000 tenants Total 8.8y (further supported by Top 10 Tenants: <18% highly granular German Office 4.6y of rental income
Slide 11: Property Revaluations in 9M 2020
PROPERTY REVALUATIONS IN 9M 2020 +6.5% LFL VALUATIONS Excluding hotels DIVERSIFICATION AS A KEY DRIVER +3.6% Through the high degree of diversification (asset type, location, tenants, lease structure), AT LFL VALUATIONS benefits from many different value drivers which support the overall portfolio v
Slide 12: 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. Residential (GCP) Mixed-use campus Ret
Slide 13: Berlin Potsdamer Platz: Prime Commercial and Tourist Center
BERLIN POTSDAMER PLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER Potsdamer Platz landmark Office Potsdamer Platz 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 14: Berlin Ku'Damm: Prime Commercial and Tourist Center
BERLIN KU’DAMM: THE PRIME COMMERCIAL AND TOURIST CENTER AC by Marriot Berlin Mitte Berlin City Center Mitte Hotel Potsdamer Platz Office landmark Moxy by Marriot Berlin Mitte Ku’Damm KaDeWe Berlin City Center Mitte Hotel Residential (GCP) Retail AT property Ku’Damm KaDeWe Office Berlin City Center M
Slide 15: 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 16: Office Market Germany – Historically Low Vacancies and Stable Rents
OFFICE MARKET GERMANY – HISTORICALLY LOW VACANCIES AND STABLE RENTS GERMAN OFFICE MARKET ENTERED UNDERSUPPLY WITH STRONG PRE-LET RATIOS INCREASED FURTHER THE COVID-19 LOCKDOWN WITH DEMAND KEEPS THE OFFICE MARKET DURING THE LOCKDOWN PERIOD RECORD LOW VACANCY RATES RENTS STABLE IN BIG 7 Germany Top 52
Slide 17: Office Market Germany – Supportive Values
OFFICE MARKET GERMANY – SUPPORTIVE VALUES CONTINUOUS STRONG DEMAND SUPPORTED BY RECENT MARKET DEALS SHOW THE SUSTAINED HIGH HISTORICALLY LARGE SPREAD OF PRIME OFFICE YIELDS DEMAND IN GERMAN OFFICE REAL ESTATE TO GOVERNMENT BOND YIELDS PRIME OFFICE YIELDS REMAIN STABLE DURING 2020 395 Pre-GFC level w
Slide 18: Office Portfolio
OFFICE PORTFOLIO – WELL-LOCATED IN TOP TIER CITIES OF GERMANY AND THE NL OFFICE: Top 4 locations: 59% Strong tenant industry base Largest Landlord Berlin (27%), >50% of rents from Governmental, Insurance & 52% AT has the largest office portfolio in Berlin, Munich and Frankfurt Munich (14%), Frankfur
Slide 19: 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 Share of domestic travel1) STR Germany Hotel Market Occupancy Forecast2) 90% 80% 85% 70% 81% 60% 50% OCCUPANCY RECOVERY IN THE 61% SHORT TERM IS EXPECTED TO BE 58% 57% 40% BA
Slide 20: Hotel Portfolio
HOTEL PORTFOLIO HOTEL: 24% 176 HOTELS WELL-DISTRIBUTED across Europe with a focus on locations of the Group portfolio Mainly in top tier European cities 17.1y WALT with large catchment areas 4-star: 85% Benefitting from the largest diverse demand segment, incl. business & leisure OPTION TO CONVERT I
Slide 21: Hotel Portfolio Recovery: Strength of Lease Structures
HOTEL PORTFOLIO RECOVERY FIXED LONG LEASES TO NO VARIABLE STRENGTH OF COMPONENTS MORE THAN 30 >70% OF HOTELS* BY LEASE The rental agreements are double or STRUCTURES DIFFERENT THIRD PARTY triple net, fixed plus CPI linked, with no RENT ARE OPEN variable components. Long lease OPERATORS periods (up t
Slide 22: Update on Hotel Rent Collection
UPDATE ON HOTEL RENT COLLECTION COMPLETED NEGOTIATIONS AT HIGHER RENT AND LONGER WALT 9M 2020 Collection: October Collection: These leases are extended at higher rent and a rent free period which is cash flow accretive in ~60% 50%* the long-term and will deliver future operational growth. HOTEL RENT
Slide 23: Hotel Tenants and Brands
TENANTS AND BRANDS FIXED OF 10-25 YEARS (WALT OF 17.1Y) 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 24: 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 25: Residential Portfolio
RESIDENTIAL PORTFOLIO RESIDENTIAL: GRANULAR GERMANY: NRW: 18% Berlin: 26%, 13% TENANT Dresden/Leipzig/Halle: 13% of the Group portfolio BASE London: 17% 9y average tenancy length Only 1% deferral in 9M due to Covid German residential: The most resilient real estate asset type in Europe 25
Slide 26: Logistics Portfolio
LOGISTICS PORTFOLIO LOGISTICS/OTHER: 4%* TOP 5 locations: 81%: of the Group portfolio 5.7y WALT Berlin: 46%, NRW: 12%, Kassel: 10%, Munich: 7%, Hamburg: 6% Resilient during the current disruption * post signed disposals 26
Slide 27: Retail Portfolio
RETAIL PORTFOLIO RETAIL: 7% Reduced from 9% in March 2020 due to disposals of the Group portfolio above book value 5y WALT Over 40% of the portfolio is essential goods – grocery-anchored, bakeries, pharmacies, drugstores, banks, DIY, etc. Grocery-anchored at mainly long-leased retail boxes in locati
Slide 28: Commitment to Sustainability
COMMITTMENT TO SUSTAINABILITY EPRA AWARDS – 4 YEARS IN A ROW SUSTAINALYTICS DAX 50 ESG & MANY OTHER INDICES (Top 8th percentile – Low Risk Category) In September 2020, AT received the EPRA BPR AT is ranked in the Top 8th percentile globally AT is included in the new DAX 50 ESG Index, among 941 real
Slide 29: Financial Results
FINANCIAL RESULTS City: Berlin District: Tiergarten Type: Office Area: 17k sqm Go to Maps 29
Slide 30: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE DEBT MATURITY PROFILE CONSERVATIVE LEVERAGE (LTV) – 1200 Millions CONSISTENTLY MAINTAINED LOW 1000 800 Company BOD limit of 45% 600 400 36% 200 35% 34% 34% 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 >2034 Straight bond Bank debt Dec 2017 De
Slide 31: Profit and Loss
PROFIT AND LOSS 1-9/2020 1-9/2019 in € millions Net rental income, recurring long-term* (in €m) REVENUE 890.4 650.7 RECURRING LONG-TERM NET RENTAL INCOME 729.6 548.3 CAGR PROPERTY REVALUATIONS AND CAPITAL GAINS 735.5 1,066.0 +36% 730 Share in profit from investment in equity-accounted investees 146.
Slide 32: Adjusted EBITDA
ADJUSTED EBITDA 1-9/2020 1-9/2019 in € millions Subtracted as these profits include AT’s share in non-operational Operating profit 1,430.2 1,766.3 profits generated by the equity accounted investees Total depreciation and amortization 2.9 1.3 EBITDA 1,433.1 1,767.6 Other adjustments includes expense
Slide 33: FFO I & II
FFO I & II 1-9/2020 1-9/2019 FFO I PER SHARE (IN €) in € millions CAGR ADJUSTED EBITDA COMMERCIAL PORTFOLIO, RECURRING LONG TERM 604.1 459.4 FFO I per share FFO I FFO I per share after perpetual Finance expenses (151.2) (106.2) per share FFO I per share after perpetual, Covid adjusted Current tax ex
Slide 34: EPRA NAV
EPRA NAV Sep 2020 Dec 2019 EPRA NAV (in €m) in € millions Per share in € millions Per share NAV PER THE FINANCIAL STATEMENTS 16,511.4 13,378.9 CAGR Equity attributable to perpetual notes investors (3,128.5) (2,484.0) EPRA NAV 15,442 NAV EXCLUDING PERPETUAL NOTES 13,382.9 10,894.9 +26% Fair value of
Slide 35: Guidance Confirmed
GUIDANCE FY 2020 FY 2019 Guidance GUIDANCE FFO I after perpetual (in € million) 460-485 446 FFO I per share after perpetual (in €) 0.35-0.37 0.38 CONFIRMED FFO I per share after perpetual, COVID adjusted (in €) 0.26-0.29 0.38 ❑ FFO I AFTER PERPETUAL EXCLUDING CONTRIBUTION FROM CA. €2.1 BILLION YTD S
Slide 36: Key Remarks
KEY REMARKS City: Munich District: Neuperlach Type: Office Area: 370k sqm Go to Maps 36
Slide 37: Reiterating the Defensive Business Model
REITERATING THE DEFENSIVE BUSINESS MODEL 1) EXTERNAL 2) INTERNAL 3) SELECTIVE 4) FINANCIAL GROWTH GROWTH DEVELOPMENTS STRENGTH Berlin Frankfurt Munich Amsterdam Small scale & designed High liquidity, long AT uses the opportunity Internal growth to unlock further maturity schedule, focus to recycle c
Slide 38: Going Forward...
GOING FORWARD... 1) STRONG 2) HIGH 3) HIGH DEMAND 4) CONSERVATIVE FUNDAMENTALS DIVERSIFICATION SUSTAINED PROFILE Berlin Frankfurt Munich Amsterdam Strong structural Diversification provides Disposals above book High liquidity and fundamentals of the defensiveness and value, positive LFL and conserva
Slide 39: Appendix
APPENDIX City: Amsterdam District: Southeast Type: Office Area: 13k sqm Go to Maps 39
Slide 40: Commercial Investment Properties
COMMERCIAL INVESTMENT PROPERTIES Portfolio breakdown per asset type* Investment Lettable area Annualized SEPTEMBER 2020 EPRA Vacancy In-place rent/sqm (€) Value/sqm (€) Rental Yield property (€m) (k sqm) net rent (€m) Office 12,175 3,969 10.2% 495 10.9 3,068 4.1% Hotel 5,571 1,847 4.2% 302 14.0 3,01
Slide 41: Best in Class Berlin Portfolio – September 2020
BEST IN CLASS BERLIN PORTFOLIO – SEPTEMBER 2020 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 Charlottenburg, Wilmersdorf, Mitte, dynamics & growth of Berlin’s most Kreuzberg, Friedri
Slide 42: 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 43: ESG Measures
ESG MEASURES Environmental Social Corporate Governance ✓Experienced and diverse management ✓AT implements environment-friendly board ✓Tenant satisfaction is a top priority and measures throughout its portfolio, with an essential part of AT’s business ✓Committees consisting mostly of the goal of redu
Slide 44: Conserving Energy Measures, Reducing Carbon Footprint
CONSERVING ENERGY MEASURES, REDUCING CARBON FOOTPRINT 2) Installation of highly efficient energy 1) Installation and operation of solar and wind generating systems based on combined heat & Aroundtown has power production systems on rooftops and power production (CHP) or combined cooling implemented
Slide 45: Sustainable Business Strategy
SUSTAINABLE BUSINESS STRATEGY 45
Slide 46: Community Involvement
COMMUNITY INVOLVEMENT AT focuses on establishing productive partnerships with local stakeholders to ensure that corporate activites are aligned to tenant and community Aroundtown Foundation Sponsorship AT is working closely with its local partners to support the development of Aroundtown is the main
Slide 47: Highest Rated in German Commercial Real Estate
HIGHEST RATED IN GERMAN COMMERCIAL REAL ESTATE S&P Ratings Financial risk profile Financial policy: Matrix 1 2 3 4 5 6 Minim Modest Intermediate Significant Aggre High al ssive Levera ged Strive to achieve A global rating in the long term 1 aaa/ bbb- Business risk profile Excellent aa a+/a a- bbb aa
Slide 48: 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 49: Equity Analyst Research Coverage
EQUITY ANALYST RESEARCH COVERAGE Analyst Research Target Price 9.50 8.80 8.60 8.40 8.40 8.00 7.70 7.50 7.10 7.10 7.00 7.00 6.50 6.30 6.30 5.20 5.00 5.00 5.00 4.60 SRC Research M.M. Warburg First Berlin HSBC Oddo BHF JP Morgan Hauck & Commerzbank Kepler Bankhaus Berenberg Deutsche Bank Baader Bank Je
Slide 50: 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 9.0 8.0 Aroundtown +103% 7.0 EPRA Germany +92% 6.0 (rebased) 5.0 Issue price of €3.20 4.0 MDAX +41% (rebas
Slide 51: Capital Market Activity
CAPITAL MARKET ACTIVITY Capital market activity per year Capital market activity per issuance type 2015-2020 YTD €4.6bn €4.2bn €4.2bn Str. Bond €10bn €3.0bn €2.6bn Conv. €1.2bn Bond €0.8bn Equity €6.2bn €2.6bn €0.2bn 2015 2016 2017 2018 2019 2020 YTD Equity Perpetual Conv. Bond Equity (incl. Convers
Slide 52: Boards
BOARDS BOARD OF DIRECTORS – 3/6 MEMBERS ARE INDEPENDENT & 2/6 ARE FEMALE FRANK ROSEEN - DIRECTOR MARKUS LEININGER- INDEPENDENT DIRECTOR FORMER SENIOR BANKER WITH A FOCUS ON FINANCING, PRIVATE EQUITY AND REAL ESTATE. HIGHLY EXPERIENCED WITH A TRACK RECORD OF 30 YEARS. HELD VARIOUS SENIOR MANAGEMENT S
Slide 53: Management Team
MANAGEMENT TEAM MANAGEMENT BODY IS FURTHER STRENGTHENED WITH NEW ADDITIONS BARAK BAR-HEN – CO-CEO & COO (CO-CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER) SHMUEL MAYO – CO-CEO (CO-CHIEF EXECUTIVE OFFICER) JOINED THE MANAGEMENT OF AROUNDTOWN AND ITS SINCE 2006 IN THE MANAGEMENT OF AROUNDTOWN AN
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 ❑ Identifying underutilized land, building rights & conversion optionality in the existing portfoli
Slide 56: Development/Building Rights: Prime Center 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 55k ❑ The asset’s district “Mitte” is Berlin’s top office district ❑ Development plans include three new buildings,
Slide 57: 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 58: 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 59: Development/Building Rights - Berlin Treptow-Köpenick 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 21k sqm and is situated ❑ The office tower is located at the corner of ❑ Aroundtown recently acquired the office tower. The asset adjac
Slide 61: Development/Building Rights – Dresden Prime Center
DEVELOPMENT/BUILDING RIGHTS – DRESDEN PRIME CENTER NEO DRESDEN Project NEO DRESDEN ➢ A modern office complex in Dresden’s vibrant and urban Neustadt district Neustadt Train Station ➢ With its 15k sqm lettable area, the project will provide high quality office space in 0.5km this tight supply market
Slide 62: 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 63: Frankfurt (Eschborn & Niederrad) – Centrally Located Assets
FRANKFURT (ESCHBORN & NIEDERRAD) – CENTRALLY LOCATED ASSETS IN KEY BUSINESS DISTRICTS Eschborn Office Office landmark Eschborn Office Office “Bürostadt Eschborn” Frankfurt Office Complex AT property Main business district Office Eschborn Office Center “Bürostadt Eschborn” Office Main business distri
Slide 64: 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 65: 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 66: 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 52% of Hamburg (AT’s commercial,
Slide 67: 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 Dresden Retail Retail Main central train station Main central train station Office Retail City Center Office Zwinger Main High Street Office Retail Zwinger Historic
Slide 68: 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 69: 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 70: Office Market Compared to Previous Crisis and Recovery
OFFICE MARKET COMPARED TO PREVIOUS CRISIS AND RECOVERY GERMAN OFFICE VACANCY DEVELOPMENT 2007 vs 2020e ❑ HIGH HIGH PRE-LET PRE-LET RATIOS, RATIOS, INCREASED INCREASED DURING Q2DURING 2020 PANDEMIC VERY LOW VACANCIES ENSURE THAT THE MARKET IS CURRENTLY ASAS A RESULT A RESULT OF LOW OF LOW NEW SUPPLY
Slide 71: Office Market on Solid Grounds
OFFICE MARKET ON SOLID GROUNDS DROP IN TAKE-UP DURING Q2 & Q3 2020 DUE TO COVID, RELATIVELY LOWER THAN CORRESPONDINGLY, COMPLETIONS ALSO DROPPED AND DELAYED. VACANCY ONLY PREVIOUS YEARS ALSO DUE TO STELLAR PERFORMANCE IN THE PAST AND VERY LOW SLIGHTLY INCREASED TO 3.4% IN Q3 2020. CONSIDERING THAT M
Slide 72: 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 73: German Office Yields vs German Bund Yields
GERMAN OFFICE YIELDS VS GERMAN BUND YIELDS FAVORABLE DEVELOPMENT OF PRIME OFFICE YIELD VS BUND YIELD ❑The spread between German prime office yields and German bund yields expanded widely, with the 395 7% 345 335 bps 6% current spread of 3.4% being significantly above the 0.7% 2007 Spread 295 5% aver
Slide 74: German Hotel Market - Domestic Travel Key for Recovery
GERMAN HOTEL MARKET - DOMESTIC TRAVEL WILL BE THE KEY FOR RECOVERY FROM COVID GERMAN HOTEL MARKET IS AMONG THE LEAST VOLATILE HOTEL MARKETS IN EUROPE DUE TO: HIGH SHARE OF DOMESTIC TRAVEL & LOW DEPENDENCY ON LONG-HAUL FLIGHTS 85% 81% 61% 58% 57% 53% 47% 42% 31% Germany UK Netherlands France Italy Sp
Slide 75: 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