Slide 1: Aroundtown
WC 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 +28% at €177.6m. Recurring long-term net rental income at €175.5m Adjusted EBITDA +34% YoY at €179.6m FFO I +29% YoY at €118.1m FFO I per share +12% YoY at €0.105 (representing a yield of 5.7%1)) FFO I after perpetual notes attribution +14% YoY
Slide 4: Financial Results
& SA (Carounvrown FINANCIAL RESULTS
Slide 5: Profit and Loss
PROFIT AND LOSS Net rental income, recurring long-term* (in €m) 1-3 / 2019 1-3 / 2018 in € millions REVENUE 207.5 166.3 CAGR RECURRING LONG-TERM NET RENTAL INCOME 175.5 130.5 +63% 702 2016-Q1 2019 Annualized 614 Property revaluations and capital gains 239.9 346.6 Share in profit from investment in e
Slide 6: Adjusted EBITDA
ADJUSTED EBITDA 1-3 / 2019 1-3 / 2018 in € millions Subtracted as these profits include AT’s share in Operating profit 479.2 519.6 non-operational profits generated by the equity Total depreciation and amortization 0.5 0.5 accounted investees EBITDA 479.7 520.1 Property revaluations and capital gain
Slide 7: FFO I
FFO I 1-3 / 2019 1-3 / 2018 in € millions ADJUSTED EBITDA COMMERCIAL PORTFOLIO, 148.1 107.8 RECURRING LONG TERM Finance expenses1) (33.7) (24.4) FFO I PER SHARE (in €) DIVIDEND PER SHARE (in €) Current tax (12.5) (9.7) CAGR Contribution to minorities (3.9) (2.1) CAGR +26% Other adjustments 1 3 2016-
Slide 8: Total Assets
TOTAL ASSETS TOTAL ASSETS (in €bn) Additions in key strategic locations CAGR Mar 2019 Dec 2018 +51% in € millions 2016- Investment property 14,803.2 14,174 Mar 2019 Solid like-for-like gains 20.5 Equity-accounted investees in publicly 19.0 1,832.2 1,807.6 traded company - holding in GCP SA Equity-ac
Slide 9: EPRA NAV
EPRA NAV Mar 2019 Dec 2018 € millions Per share € millions Per share EPRA NAV (in €bn) NAV per the financial statements 10,393.3 9,944.3 Equity attributable to perpetual notes investors (1,527.6) (1,547.7) CAGR NAV excluding perpetual notes 8,865.7 8,396.6 +49% Fair value of derivative financial ins
Slide 10: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE Debt maturity profile Proactive debt management Debt maturity Cost of debt 7.5 years average 1.8% Ø maturity cost of debt Interest hedging structure Mar 2019 95% hedged 6% 89% 5% Fixed, swapped cap variable Loan-to-Value Continuously strong ICR Unencumbered assets Comp
Slide 11: Best in Class Financial Ratios 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 12: Operations and Portfolio
& SA (Carounvrown OPERATIONS AND PORTFOLIO
Slide 13: Commercial Investment Properties (Mar 2019)
COMMERCIAL INVESTMENT PROPERTIES (MAR 2019) Portfolio breakdown per asset type Investment Area EPRA Annualized net In-place Value Rental MARCH 2019 properties (in k sqm) Vacancy rent rent per sqm per sqm (in €) yield (in €M) (in €M) (in €) Office 7,183 3,006 11.1% 360 10.7 2,390 5.0% Hotel 4,392 1,3
Slide 14: Top Tier Cities (Mar 2019)
TOP TIER CITIES (MAR 2019) * Others includes, Brussels, Rome, Vienna, Edinburgh, Dublin, Bremen, Nuremberg, Kassel and others 14
Slide 15: Top Tier Cities (Mar 2019)
TOP TIER CITIES (MAR 2019) *accounting for 39% holding in GCP Residential Commercial 15
Slide 16: Top Tier Cities Within Asset Classes
TOP TIER CITIES WITHIN ASSET CLASSES (MAR 2019) 16
Slide 17: 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 18: Berlin: 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 19: Berlin: 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 20: Frankfurt
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 20 p
Slide 21: 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 March 2019: Office Hotel Logistics/Whole Retail Total sale/Other 4.4 15.9
Slide 22: Highly Performing Hotel Locations
HIGHLY PERFORMING HOTEL LOCATIONS Well diversified portfolio of over 130 hotels totaling €4.4bn and approx. 1.4m sqm as of March 2019 High proportion (83%) 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 23: 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 24: Commercial Portfolio – Potential to Come
COMMERCIAL PORTFOLIO – POTENTIAL TO COME Commercial June annualized Rental Income vs. Commercial in-place rent Market potential including vacancy reduction compared to market rent prices (in € millions) +33% 935 18% 82% 703 Mar 2019 annualized Annualized market potential below market rent at market
Slide 25: 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 Hamburg Extracting additional value as part of our value add strategy Berlin Identifying underutilized land, building rights and conversion o
Slide 26: Guidance Confirmed
GUIDANCE 2019 Guidance1) FFO I (in € million) 460-470 FFO I per share (in €) 0.41-0.422) GUIDANCE 65% of FFO I per Dividend per share (in €) share CONFIRMED FFO I per share 0.37-0.382) after perpetual (in €) Like-for-like net rental growth ~4% LTV <45% 1) Based on current portfolio, signed acquisiti
Slide 27: Appendix
& SA (Carounvrown APPENDIX
Slide 28: Development/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 and cultural landmarks and excellent connectivity and transportation options. Value ex
Slide 29: Development/Building Rights: Berlin Kreuzberg/Alt-Treptow
DEVELOPMENT/BUILDING RIGHTS BERLIN KREUZBERG/ALT-TREPTOW The cinema center holds 7k sqm and is located across the Park Center retail/office center in a mixed use office, residential and touristic area of the district of Treptow/Kreuzberg around the corner of the Treptowers office towers. Strong conn
Slide 30: Development/Building Rights: The 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 31: Development/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 32: 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 32 - DIMAX 32
Slide 33: 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 34: 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 €8.6bn EUROPE 600 €1.6bn €2.9bn €0.8bn Equity and bond Continuously bookrunners Equity Convertible bonds Straight Bonds among the largest Capita
Slide 35: 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 36: 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 Capital Germany/NL Income STRONG TENANT STRUCTURE, recycling by generating WHILE DISPOSING MATURE selling non- portfolios AND NON-CORE PROPERTIES core/mature with
Slide 37: 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 38: 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 development in Markus 11 European countries with a development volume of more than €2bn. Mr. Neurauter holds a masters in e
Slide 39: 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 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) 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 r
Slide 41: Germany/NL – Strong Labor Market
GERMANY/NL – STRONG LABOR MARKET Development of gross wages Germany (in €) Unemployment rate Sep 2018 Source: destatis, industry and service sector, fulltime employment excluding bonuses Source: Tradingeconomics.com …which is further supported by a strong labor market with increasing purchasing powe
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… 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 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 Source: hotelstars.eu – January 2019 Source: Smith Travel Research (STR) Source: destatis 45412-0012 – extracted May 2019 Tourism in
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 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 50: Berlin
Ih iy . l Ht Nh Mit ' it iS ill ling!
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 NRW Essen Düsseldorf Düsseldorf 54
Slide 55: Amsterdam
Amsterdam 55
Slide 56: Stuttgart Baden-Baden
Stuttgart Baden-Baden 56
Slide 57: Hamburg
Hamburg 57
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