Slide 1: Aroundtown SA
(\\S aROUND SA
Slide 2: Table of Contents
TABLE OF CONTENTS HIGHLIGHTS & ACHIEVEMENTS FINANCIAL RESULTS OPERATIONS AND PORTFOLIO GUIDANCE APPENDIX 2
Slide 3: Highlights
HIGHLIGHTS Profitability Highlights: Recurring long-term Net Rental Income of the commercial portfolio at €614m +48% YoY Adjusted EBITDA at €606m +41% YoY FFO I at €406m +38% YoY, resulting in a FFO I per share of €0.39 +8% YoY and at €0.34 after perpetual notes attribution is 6% higher YoY Dividend
Slide 4: Aroundtown's High Quality Acquisitions
AROUNDTOWN’S HIGH QUALITY ACQUISITIONS Berlin 22% of the total portfolio 90% in top tier neighborhoods Hilton Hotel London Amsterdam Arena Office Hyde Park London Amsterdam Berlin Prime Center Potsdamer Platz office Bristol Hotel Berlin Prime Center Ku’Damm NRW Hilton Hotel Berlin Prime Center Ibis
Slide 5: Aroundtown's 2018
AROUNDTOWN’S 2018 Inclusion into the MSCI Index series such as the MSCI ACWI Index, MSCI World Index as well as the MSCI Germany Index and others, which becomes effective as of December 3, 2018. Aroundtown is already a constituent of key benchmark indexes such as the MDAX, STOXX 600 and FTSE EPRA In
Slide 6: Financial Results
& SA (arounvrown FINANCIAL RESULTS
Slide 7: Profit and Loss
PROFIT AND LOSS Net rental income, recurring long-term* (in €m) 2018 2017 in € millions REVENUE 747.1 527.1 CAGR RECURRING LONG-TERM NET RENTAL INCOME 613.8 415.2 +85% 687 2015-Dec 2018 614 Annualized Property revaluations and capital gains 1,536.4 1,326.6 Share in profit from investment in equity-a
Slide 8: Adjusted EBITDA
ADJUSTED EBITDA 2018 2017 in € millions Subtracted as these profits include AT’s share in Operating profit 2,293.5 1,920.3 non-operational profits generated by the equity Total depreciation and amortization 1.6 2.0 accounted investees EBITDA 2,295.1 1,922.3 Property revaluations and capital gains (1
Slide 9: FFO I
FFO I 2018 2017 in € millions ADJUSTED EBITDA COMMERCIAL PORTFOLIO, 496.7 339.0 RECURRING LONG TERM Finance expenses (114.6) (69.7) FFO I PER SHARE (in €) DIVIDEND PER SHARE (in €) Current tax (44.4) (33.5) CAGR Contribution to minorities (6.7) (8.9) CAGR +32% Other adjustments 7.9 10.1 2015-2018 +7
Slide 10: Total Assets
TOTAL ASSETS TOTAL ASSETS (in €bn) Additions in key strategic locations Dec 2018 Dec 2017 CAGR 19.0 in € millions +63% Investment property 14,174.0 9,804.1 Solid like-for-like gains 2015-2018 Equity-accounted investees in publicly 1,807.6 1,609.7 traded company - holding in GCP SA 13.8 Equity-accoun
Slide 11: EPRA NAV
EPRA NAV Dec 2018 Dec 2017 € millions Per share € millions Per share EPRA NAV (in €bn) NAV per the financial statements 9,944.3 7,249.9 Equity attributable to perpetual notes investors (1,547.7) (1,173.3) CAGR NAV excluding perpetual notes 8,396.6 6,076.6 +56% 10.3 Effect of conversion of in-the-mon
Slide 12: Total Shareholder Return 2018
TOTAL SHAREHOLDER RETURN 2018 0.23 7.93 1.2 7.7 6.5 Dec 2017 2018 EPRA NAV per share Dec 2018 Dividend paid in 2018 Dec 2018 EPRA NAV per share growth EPRA NAV per share EPRA NAV per share + dividend per share 12
Slide 13: Maintenance, Capex and AFFO
MAINTENANCE, CAPEX AND AFFO Ratio of Capex over Ratio of Capex over Investment Property: 0.7% Investment Property: 1.0% Enhanced tenant improvements leading to high tenant quality through retentions as well as high quality new tenants and maintaining long average lease terms. Expansion Capex Tenant
Slide 14: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE Debt maturity profile Proactive debt management Debt maturity Cost of debt 7.4 years average 1.8% Ø maturity cost of debt Interest hedging structure 98% hedged 8% 90% 2% Fixed, swapped cap variable Loan-to-Value Strong cover ratios 2018 Unencumbered assets 71% 72% Comp
Slide 15: Business risk profile and ratings
I. BEST IN CLASS FINANCIAL RATIOS AMONG PEERS II. HIGHEST RATED IN GERMAN COMMERCIAL REAL ESTATE Financial risk profile Financial policy: 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 pro
Slide 16: Operations and Portfolio
& SA (arounvrown OPERATIONS AND PORTFOLIO
Slide 17: Commercial Investment Properties (Dec 2018)
COMMERCIAL INVESTMENT PROPERTIES (DEC 2018) Portfolio breakdown per asset type Investment Area EPRA Annualized net In-place Value Rental DECEMBER 2018 properties (in k sqm) Vacancy rent rent per sqm per sqm (in €) yield (in €M) (in €M) (in €) Office 7,128 2,998 10.9% 359 10.7 2,377 5.0% Hotel 3,925
Slide 18: Top Tier Cities (Dec 2018)
TOP TIER CITIES (DEC 2018) * Others includes, Brussels, Rome, Vienna, Edinburgh, Dublin, Bremen, Nuremberg, Kassel and others 18
Slide 19: Top Tier Cities (Dec 2018)
TOP TIER CITIES (DEC 2018)* *accounting for 39% holding in GCP Residential Commercial 19 * all breakdowns are by value
Slide 20: Top Tier Cities within Asset Classes (Dec 2018)
TOP TIER CITIES WITHIN ASSET CLASSES (DEC 2018)* 20 * all breakdowns are by value
Slide 21: Best in Class Berlin Portfolio
BEST IN CLASS BERLIN PORTFOLIO 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’s most in d
Slide 22: Berlin landmark property: Potsdamer Platz
landmark Berlin property Potsdamer Platz: The prime commercial and tourist center Potsdamer Platz Office Potsdamer Platz Office Crowne Plaza Potsdamer Platz Checkpoint Charlie Hotel Potsdamer Platz Potsdamer Platz Potsdamer Platz Office Office Residential (GCP) Office Hilton Gendarmenmarkt Hotel Gen
Slide 23: 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 Berlin City Center Mitte Residential (GCP) Retail/Office Ku’damm /Uhlandstr. Berlin City Center Mitte Berlin Tiergarten Of
Slide 24: Quality Frankfurt assets in central locations
Frankfurt Quality Frankfurt assets in central locations InterContinental Frankfurt Hotel Frankfurt Office Campus Frankfurt HBF Offices Offices Frankfurt Frankfurt Deutsche Bahn Hauptbahnhof Office (Central Train Station) Frankfurt HBF Office Frankfurt Frankfurt Büro Center (FBC) Office landmark 24 p
Slide 25: 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 December 2018: Office Hotel Logistics/Whole Retail Total sale/Other 4.6 15
Slide 26: Highly Performing Hotel Locations
HIGHLY PERFORMING HOTEL LOCATIONS Well diversified portfolio of over 120 hotels totaling €3.9bn and over 1.3m sqm as of December 2018 High proportion (85%) in 4 star hotels, meeting the rising market demand from tourism and business travel Long-term and fixed leases to third party hotel operators Ho
Slide 27: 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 Hotel: Rooms: Brand: Hotel Rooms: Brand: Crowne
Slide 28: Guidance
GUIDANCE 2018 Actual 2019 Guidance1) FFO I (in € million) 405.7 460-470 FFO I per share (in €) 0.39 0.41-0.422) 65% of FFO I per Dividend per share (in €) 0.25 share FFO I per share 0.34 0.37-0.382) after perpetual (in €) Like-for-like net rental growth 4.8% ~4% LTV 35% <45% 1) Based on current port
Slide 29: Appendix
& SA (arounvrown APPENDIX
Slide 30: Equity Analyst Research Coverage
EQUITY ANALYST RESEARCH COVERAGE Covering Analysts Analyst Research Target Price Key index inclusions: -MSCI ACWI - MDAX -MSCI World -MSCI Germany - MSCI Index Series - FTSE EPRA/NAREIT -Global Developed -Europe Developed - STOXX Europe 600 -Eurozone -Germany - GPR 250 30 - DIMAX 30
Slide 31: 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 The Share Shareholder structure Share issue price development Frankfurt Stock Exchange Placement (Prime St
Slide 32: Capital Market Activity
CAPITAL MARKET ACTIVITY Capital market activity per issuance type 2015-2019 YTD Major index inclusions in 2017/2018 Equity including conversions Perpetuals €8.1bn EUROPE 600 €1.6bn €2.9bn €0.8bn Equity and bond Largest European bookrunners Equity Convertible bonds Straight Bonds real estate issuer C
Slide 33: ESG – Strong Commitment to Sustainability
ESG – STRONG COMMITMENT TO SUSTAINABILITY In 2018, Aroundtown issued its first annual Corporate Responsibility report, for the year 2017, demonstrating the Company’s commitment to sustainability and can be found on its website. The report is aimed at the Group’s investors, tenants, employees, busine
Slide 34: Strategy and Business Model
STRATEGY AND BUSINESS MODEL Quality assets with a focus 5 on large EU ROBUST CASH FLOWS WITH cities primarily in LOW VACANCY SUPPORTED BY Germany/NL Income STRONG TENANT STRUCTURE, Capital recycling by generating WHILE DISPOSING MATURE portfolios AND NON-CORE PROPERTIES selling non- with value- core
Slide 35: Management
MANAGEMENT CEO and CFO Shmuel CEO of Aroundtown. Since 2006 in the management of Aroundtown and its subsidiaries. Previously, was the CEO of a leading international investment Mayo conglomerate. BA in Economics and Accounting, Law and CPA. Andrew Deputy CEO of Aroundtown. Since 2014 in the managemen
Slide 36: Operational Management Team
OPERATIONAL MANAGEMENT TEAM Head of commercial operations. Before joining the Group he was a board member of Strabag AG and CEO of Raiffeisen evolution, responsible for project Markus development in 11 European countries with a development volume of more than €2bn. Mr. Neurauter holds a masters in e
Slide 37: Regional Market Overview
REGIONAL MARKET OVERVIEW Hamburg ► GDP growth1: 2.4% ► Migration balance2: 0.9% Bremen ► 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 38: 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) Source: Tradingeconomics.com, data for November 2018 *At an exchange rate of €1.1227/GBP Source: Eurostat, unadjusted Aroundtown’s competitive advantage starts with the re
Slide 39: Germany/NL – Strong Labor Market
GERMANY/NL – STRONG LABOR MARKET Development of gross wages Germany (in €) Unemployment rate Sep 2018 Source: destatis Source: Tradingeconomics.com …which is further supported by a strong labor market with increasing purchasing power Unemployment rate Germany 2003 - Sep 2018 Unemployment rate Nether
Slide 40: 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 41: 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 42: 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 43: Netherlands Office Market
NETHERLANDS OFFICE MARKET …RESULTING FROM FAVORABLE DEVELOPMENTS Current trends show very favorable market developments… Office Employment Office take-up 2015 -> 2017 7.5% 2015 -> 2017 4.5% Vacant space -29.7% Passing rents* 2015 –> H1 2018 2015 –> H1 2018 4.6% *Excl. incentives Total Office Stock -
Slide 44: 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 Source: hotelstars.eu – January 2018 Source: Smith Travel Research (STR) Source: destatis 45412-0012 – extracted October 2018 Touris
Slide 45: 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 46: Macro Fundamentals Support GCP
MACRO FUNDAMENTALS SUPPORT GCP Population development Population density H1 Annualized growth in rent price index* 2017 (persons per sqkm) Source: destatis 2012-2017, forecast based European Commission spring 2018 forecasted growth rates From 1991 to 2016 the amount of households increased by 16.2%
Slide 47: Berlin
Ih iy . l Ht Nh Mit ' it iS ill ling!
Slide 48: London
London 48
Slide 49: Frankfurt
Vil SRE Frankfurt
Slide 50: Munich
Munich 50
Slide 51: NRW
Cologne Dortmund Dortmund Cologne Duisburg Essen Düsseldorf Düsseldorf Düsseldorf NRW Essen Düsseldorf Düsseldorf 51
Slide 52: Amsterdam
nelB AD z io enc ceNTER a if & vat ‘ Mt
Slide 53: Stuttgart Baden-Baden
Stuttgart Baden-Baden 53
Slide 54: Hamburg
Hamburg 54
Slide 55: 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