Aroundtown Sa · XETR:AT1
Aroundtown Sa — Aroundtown Sa Ord — 9M 2021 Earnings Presentation
86 slides from Aroundtown Sa's earnings presentation, Nov 24, 2021
Slide 1: 9M 2021 Financial Results
AROUNDTOWN SA 9M 2021 FINANCIAL RESULTS NOVEMBER 2021
Slide 2: Table of Contents
TABLE OF CONTENTS 1 2 OPERATIONS & HIGHLIGHTS PORTFOLIO 3 4 FINANCIAL RESULTS GUIDANCE 5 APPENDIX 2
Slide 3: Highlights
HIGHLIGHTS NAVIGATE BACK TO TABLE OF CONTENTS 3
Slide 4: Largest landlord, solid diversification, top tier locations
LARGE SCALE WITH A FOCUS ON STRONG ASSET TYPES IN TOP TIER LOCATIONS 1 LARGEST LANDLORD ✓ Top 3 largest listed RE company in Europe with €39bn asset base. ✓ Largest office landlord in Berlin, Munich and Frankfurt among listed peers. ✓ Strong diversification across several real estate asset classes
Slide 5: 9M 2021 Financial Highlights
9M 2021 FINANCIAL HIGHLIGHTS (GCP IS FULLY CONSOLIDATED AS OF 01.07.2021) CONSERVATIVE DEBT TOP & BOTTOM LINE FINANCIAL DISCIPLINE PROFILE €773m €3.3bn €1.6bn Net rental income (NRI) Debt repayments 2021 YTD, of which €1.1bn Cash and liquid assets bond repayments with avg. 2.2% coupon rate +2% YOY +
Slide 6: Operations & Portfolio
OPERATIONS & PORTFOLIO NAVIGATE BACK TO TABLE OF CONTENTS 6
Slide 7: Well-balanced portfolio
HIGH DIVERSIFICATION, BALANCED ACCROSS STRONG ASSET TYPES IN STRONG LOCATIONS WELL-BALANCED PORTFOLIO Due to the GCP consolidation, the portfolio increases by 65k residential units, located mainly in Germany, as well as in London The portion of residential units in the asset type increases to 28%, t
Slide 8: Larger platform from net acquisitions and GCP consolidation
LARGER PLATFORM AS A RESULT OF NET ACQUISITIONS AND GCP CONSOLIDATION INVESTMENT PROPERTY (IN € BILLIONS) 11% growth since Dec 2019 due to net acquisitions. This growth is further supported by the GCP CAGR +31% 29.0 consolidation +60% 23.2 GCP +11% All valuations are done by professional external 18
Slide 9: Larger and higher quality portfolio
LARGER AND HIGHER QUALITY PORTFOLIO AS A RESULT OF PORTFOLIO ENHANCEMENT ACTIVITIES Non-core disposals, merger with TLG and GCP consolidation result in higher quality portfolio Non-core asset types % of portfolio in top cities in Germany and Core asset types (Office + Resi + Hotel) (Retail + Logisti
Slide 10: Capital recycling update YTD 2021
CAPITAL RECYCLING UPDATE YTD 2021* DISPOSALS OF NON-CORE AND MATURE ...ABOVE BOOK VALUE, VALIDATING ... FUNDING SHARE BUYBACKS AT A ASSETS... PORTFOLIO VALUATIONS... DISCOUNT AND DEBT REPAYMENTS 2021 YTD DISPOSALS OF over €2.5BN, ca. €400m bought back as of Nov 19th Hotel (80% of the €500m program a
Slide 11: Defensive portfolio with strong tenant structure
DEFENSIVE PORTFOLIO WITH STRONG TENANT STRUCTURE Limited dependency on single tenants: Large tenant base of approx. 3,500 Tenant base is highly diversified Top 10 Tenants: less than 20% of commercial tenants is further supported across wide range of industries rental income by highly granular German
Slide 12: Upside potential as a downside protection
UPSIDE POTENTIAL AS A DOWNSIDE PROTECTION Sep 2021 annualized rental income of the total portfolio vs. Large upside potential from rent increases to market Market potential including vacancy reduction not including development potential (in €m) levels will act as a buffer against a downside scenario
Slide 13: Office portfolio
OFFICE PORTFOLIO – WELL-LOCATED IN TOP TIER CITIES OF GERMANY AND THE NETHERLANDS OFFICE: 45% of the portfolio No dependency on a single location, single WELL-DIVERSIFIED tenant, single asset or single industry. Long lease structure with 4.6y WALT FOCUS ON CENTRAL LOCATIONS OF TOP TIER CITIES AT is
Slide 14: German & Dutch office market resilient during pandemic
GERMAN & DUTCH OFFICE MARKET – RESILIENT DURING THE PANDEMIC GERMANY TOP 8 & AMSTERDAM OFFICE TAKE-UP GERMANY TOP 8 & AMSTERDAM OFFICE VACANCY Take-up recovered by 54% 1.5m sqm Q3 21 vs Q3 20: Pre-GFC: 11% compared to the dip during 1.2m sqm ca. +34% 13% vs Q3 21: 5% the pandemic. Vacancy, 0.9m sqm
Slide 15: Residential portfolio
RESIDENTIAL PORTFOLIO RESIDENTIAL (GCP): 28%*of the portfolio CONSOLIDATION IN Q3 Residential becomes the Group’s second largest asset type after STRENGTHENING THE offices, providing the Group with a GROUP’S PLATFORM well-balanced portfolio breakdown German residential is the most MOST RESILIENT REA
Slide 16: Hotel portfolio
HOTEL PORTFOLIO Across Europe with a focus on locations HOTEL: 18% of the portfolio WELL-DISTRIBUTED with large catchment areas Long fixed contracts with no variable components with over 30 different strong 15.6 YEARS WALT third-party hotel operators, operating with high profitability for many years
Slide 17: Hotel collection rates and recovery expectation
RECOVERY EXPECTATION: UNCERTAINTY REMAINS COLLECTION RATES ASYMMETRIC RECOVERY OF DEMAND DRIVERS Business & international travel not Domestic leisure saw a strong recovery during FASTEST RECOVERY FROM the summer months supported by the holiday expected to recover in 2021 and only DOMESTIC LEISURE TR
Slide 18: Logistics and retail portfolio
LOGISTICS AND RETAIL PORTFOLIO LOGISTICS: 2% RETAIL: 7% of of the portfolio the portfolio 5.0y WALT 4.7y 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 ESSENTIAL GOODS RETAIL Over 40% of
Slide 19: Development/building rights
DEVELOPMENT/BUILDING RIGHTS VALUE POTENTIAL VALUE EXTRACTION STRONG LOCATIONS AND ASSET TYPES STRATEGY Hamburg STRONG MARKET DEMAND + - SELL: Identify and lift potential, obtain permits, Berlin crystalize gains through disposals SCARCITY OF LAND - DEVELOP: In selective top tier locations at low risk
Slide 20: Stronger commitment to ESG matters
STRONGER COMMITMENT TO ESG MATTERS ENVIRONMENTAL SOCIAL GOVERNANCE & AWARDS Energy Investment Program: EPRA Awards: Further investments during 2021 targeted at Aroundtown Foundation: Consecutive awards for high standards of financial reducing GHG emissions. The goal is to equip transparency and sust
Slide 21: Financial Results
FINANCIAL RESULTS NAVIGATE BACK TO TABLE OF CONTENTS 21
Slide 22: Profit and loss
PROFIT AND LOSS 1-9/2021 1-9/2020 Net rental income, recurring long-term1) (in €m) in € millions REVENUE 935.8 890.4 CAGR RECURRING LONG-TERM NET RENTAL INCOME 755.6 729.6 +17% 730 +38% 756 GCP 548 PROPERTY REVALUATIONS AND CAPITAL GAINS 321.6 735.5 +21% Share in profit from investment in equity-acc
Slide 23: Adjusted EBITDA
ADJUSTED EBITDA 1-9/2021 1-9/2020 in € millions ▪ Subtracted as these profits include AT’s share in non-operational profits generated by Operating profit 1,002.4 1,430.2 the equity accounted investees Total depreciation and amortization 5.8 2.9 EBITDA 1,008.2 1,433.1 ▪ Other adjustments also include
Slide 24: FFO I & FFO II
FFO I & FFO II 1-9/2021 1-9/2020 FFO I PER SHARE (IN €) in € millions FFO I per share FFO I per share before Covid adjustment FFO I BEFORE JV CONTRIBUTION 306.2 294.6 Contribution of joint ventures’ FFO I 60.7 76.8 0.31 0.29 0.28 FFO I BEFORE COVID ADJUSTMENT 366.9 371.4 0.22 0.23 Extraordinary expe
Slide 25: EPRA NAV KPIs
EPRA NAV KPIS Sep 2021 Dec 2020 in € millions unless otherwise indicated EPRA NTA EPRA NTA ▪ Any change in the goodwill is neutral for the EPRA NTA: EQUITY ATTRIBUTABLE TO THE OWNERS OF THE COMPANY 10,505.2 10,424.8 Deferred tax liabilities 1,755.9 1,494.5 ▪ For the purposes of EPRA NTA calculation,
Slide 26: Conservative capital structure
CONSERVATIVE CAPITAL STRUCTURE DEBT MATURITY PROFILE Consistently low leverage (LTV) Cash cover ratio Debt maturity Cost of debt 2,000 Company BOD limit of 45% Millions 1,800 2 times 5.8 years 1.3% 1,600 Liquidity/ debt maturing in 2y Ø maturity Ø cost of debt 1,400 39% 1,200 35% 34% 34% 1,000 800 6
Slide 27: Guidance
GUIDANCE NAVIGATE BACK TO TABLE OF CONTENTS 27
Slide 28: 2021 Guidance confirmed
2021 GUIDANCE CONFIRMED FY 2021 GUIDANCE FFO I (in € million)* 340 - 370 FFO I per share (in €)* 0.29-0.31 Dividend per share (in €) 0.22-0.24 * previously defined as FFO I after perpetual, Covid adjusted 28
Slide 29: Appendix
APPENDIX NAVIGATE BACK TO TABLE OF CONTENTS 29
Slide 30: Share information
SHARE INFORMATION THE SHARE SHAREHOLDER STRUCTURE Frankfurt Stock Exchange Placement (Prime Standard) Incorporation Luxembourg 13.07.2015 Free First equity issuance float (€3.2 per share) 62% Shares held Number of shares (basic) 1,537,025,609 in treasury* 28% Number of shares, base for share KPI cal
Slide 31: Investment properties
INVESTMENT PROPERTIES SEP 2021 Investment Lettable area Annualized EPRA Vacancy In-place rent/sqm (€) Value/sqm (€) Rental Yield WALT (years) Portfolio by asset type* property (€m) (k sqm) net rent (€m) Office 12,057 3,930 10.5% 492 11.1 3,068 4.1% 4.6 Residential 7,670 3,710 5.3% 342 8.0 2,067 4.5%
Slide 32: Strong locations & property quality
STRONG LOCATIONS & PROPERTY QUALITY ARE KEY TO SUCCESS & STABILITY OF THE PORTFOLIO GERMANY & THE NETHERLANDS: 85% OF THE PORTFOLIO GERMANY & THE NETHERLANDS Well-diversified across Germany and the top tier cities with a Netherlands: AAA sovereign focus on central locations credit rating of the port
Slide 33: Best in class Berlin portfolio
BEST IN CLASS BERLIN PORTFOLIO – SEP 2021 LOCATED IN THE BEST 85% 85% of the Group portfolio is NEIGHBORHOODS OF BERLIN Top Tier located in top tier neighborhoods: Strongly benefiting from the unique dynamics & growth of Charlottenburg, Wilmersdorf, Berlin’s most in demand Mitte, Kreuzberg, Friedric
Slide 34: 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 35: Attractive investment in Globalworth
ATTRACTIVE INVESTMENT IN GLOBALWORTH – THE LEADING OFFICE COMPANY IN CEE GWI OFFER PRIME ASSETS & STRONG TENANT BASE RIGHT INVESTMENT VEHICLE IN CEE ❑ Through a JV, AT and CPI hold together 61% of ❑ GWI is a leader in the Polish & Romanian office GWI’s shares. AT spent approx. €130m for the ❑ GWI is
Slide 36: 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 37: 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 38: Equity analyst research coverage and share performance
EQUITY ANALYST RESEARCH COVERAGE AND SHARE PERFORMANCE Analyst Research Target Price €7.6 average target price 8.70 8.60 8.60 8.50 8.50 7.90 7.90 7.80 7.70 7.60 7.50 7.50 7.25 7.00 7.00 7.00 6.40 5.90 RESTRICTED HSBC First Hauck & SRC Deutsche Oddo Kepler M.M. Societe Berenberg Commerz- Goldman Baad
Slide 39: 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 40: ESG
ESG NAVIGATE BACK TO TABLE OF CONTENTS 40
Slide 41: Commitment to ESG
COMMITTMENT TO ESG 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 67% of BoD is Increase employee consumption and independent/non retent
Slide 42: AT's ESG target set overview
AT’S ESG TARGET SET OVERVIEW 42
Slide 43: ESG – Environment part 1
ESG – ENVIRONMENT PART 1: CONSERVING ENERGY MEASURES, REDUCING CARBON FOOTPRINT GHG EMISSIONS REDUCTION ENERGY INVESTMENT PROGRAM Several buildings are already equipped with PVs on their roofs. Energy Investment Program: installation of PV's, CHP/CCHP, EV charging stations, smart meters, AI Current
Slide 44: ESG – Environment part 2
ESG – ENVIRONMENT PART 2: ENERGY EFFICIENT BUILDINGS GREEN BUILDING CERTIFICATIONS Building upgrades with the goal to receive certifications (DGNB, LEED, BREEAM). Development/major refurbishments aimed to build for certification eligibility PILOT PROJECT IN THE DUTCH PORTFOLIO SELECTED PORTFOLIO CER
Slide 45: ESG – Environment part 3
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 46: 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 ~A dozen of charities across portfolio’s locations, working in cl
Slide 47: 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 48: 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 49: Board of Directors
BOARD OF DIRECTORS BOARD OF DIRECTORS – 4/6 MEMBERS ARE INDEPENDENT/NON-EXECUVITE & 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
Slide 50: Board committees and the advisory board
BOARD COMMITTEES AND THE ADVISORY BOARD ALL COMMITTEES ARE IN PLACE WITH INDEPENDENT MEMBERS IN PLACE AUDIT ESG/CSR IT/ CYBER SECURITY RISK NOMINATION REMUNERATION COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE (MAINTAINING THE INTEGRITY (REVIEWING SHAREHOLDER (PROTECTING THE (ASSESSING
Slide 51: Management team
MANAGEMENT TEAM MANAGEMENT BODY IS SUPERVISED BY THE BOARD OF DIRECTORS BARAK BAR-HEN – CO-CEO & COO (CO-CHIEF EXECUTIVE EYAL BEN DAVID – CFO (CHIEF FINANCIAL OFFICER) OFFICER AND CHIEF OPERATING OFFICER) SINCE 2008 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SINCE 2020 IN THE MANAGEMENT OF AROUNDTOWN A
Slide 52: Management team – senior management
MANAGEMENT TEAM – 2 SENIOR MANAGEMENT NIKOLAI WALTER- HEAD OF ASSET & PROPERTY MANAGEMENT ALFRED KANDL - HEAD OF CONSTRUCTION MANAGEMENT 20 YEARS EXPERIENCE IN THE REAL ESTATE INDUSTRY. BEFORE JOINING THE GROUP, WAS A MR KANDL HAS 35 YEARS OF EXPERIENCE IN THE REAL ESTATE AND BUILDING INDUSTRY. HE M
Slide 53: Appendix: Development projects
APPENDIX: DEVELOPMENT PROJECTS NAVIGATE BACK TO TABLE OF CONTENTS 53
Slide 54: Sold development rights – Berlin Warschauer Straße
SOLD DEVELOPMENT RIGHTS – BERLIN WARSCHAUER STRAßE PROPERTY DESCRIPTION MARKET DEMAND DEVELOPMENT POTENTIAL ❑ This neighbourhood supermarket covers 4k sqm and is ❑ The area is seeing high demand for all uses due to its ❑ Re-Development into mixed-use property situated in one of Berlin’s most popular
Slide 55: Development rights – Berlin Alexanderplatz office
DEVELOPMENT/BUILDING RIGHTS – BERLIN ALEXANDERPLATZ PRIME CITY CENTER OFFICE PROPERTY DESCRIPTION MARKET DEMAND DEVELOPMENT POTENTIAL ❑ This large office property, covering 24k sqm, is situated in ❑ The asset’s district “Mitte” is one of Berlin’s top office ❑ Development of low-build portion of exis
Slide 56: Development rights – Berlin Tiergarten office
DEVELOPMENT/BUILDING RIGHTS – BERLIN TIERGARTEN OFFICE PROPERTY DESCRIPTION VALUE POTENTIAL & MARKET DEMAND DEVELOPMENT POTENTIAL ❑ The property is situated in Berlin’s western center, ❑ This building is surrounded by a new built fully rented ❑ Complete demolition and re-development. walking distanc
Slide 57: Development rights – Brussels prime center
DEVELOPMENT/BUILDING RIGHTS – BRUSSELS PRIME CENTER PROPERTY DESCRIPTION MARKET POSITION REPOSITIONING ❑ The Brussels Hotel is situated in the center of Brussels on ❑ The property is centrally located, right in the middle ❑ Repositioning and rebranding into Cardo by Autograph the main inner-city bou
Slide 58: Development rights – Berlin Rosa-Luxemburg-Platz
DEVELOPMENT/BUILDING RIGHTS – BERLIN PRIME CENTER MITTE ROSA-LUXEMBURG-PLATZ PROPERTY DESCRIPTION PROPERTY LOCATION REPOSITIONING ❑ The hotel is situated in Berlin’s prime central district, ❑ The property is located in the heart of the city, within a ❑ Complete upgrade, redesign and new branding exp
Slide 59: Development 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 60: Development 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 61: Development rights – Berlin Ku'damm
DEVELOPMENT/BUILDING RIGHTS – BERLIN PRIME CENTER KU’DAMM PROPERTY DESCRIPTION MARKET DEMAND DEVELOPMENT POTENTIAL ❑ This 7k sqm property is located at Kurfürstendamm 69, ❑ The area surrounding Ku’damm is highly demanded for all ❑ Addition of new floors with condominiums expected to 10707 Berlin, on
Slide 62: Development rights – Berlin Mediaspree office
DEVELOPMENT/BUILDING RIGHTS – BERLIN MEDIASPREE OFFICE DEVELOPMENT PROPERTY DESCRIPTION MARKET DEMAND DEVELOPMENT POTENTIAL ❑ The property is located in Berlin’s popular central district ❑ The Mediaspree district is seeing strong and growing ❑ Development of Office Campus Mediaspree, which is home t
Slide 63: Development 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 at Schnellerstraße 137, ❑ Located between Treptower Park and Adlershof Science ❑ Conversion and development into mixed use urban
Slide 64: Development 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 ❑ The office tower is located at the corner of ❑ Refurbishment and creating additional sqm: situated adjacent to Frankfu
Slide 65: Development 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 66: Development 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 67: Appendix: Focus on central locations of top tier cities
APPENDIX: FOCUS ON CENTRAL LOCATIONS OF TOP TIER CITIES NAVIGATE BACK TO TABLE OF CONTENTS 67
Slide 68: Berlin Alexanderplatz
BERLIN ALEXANDERPLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER landmark AT property 68
Slide 69: Berlin Potsdamer Platz
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 70: Berlin Ku'damm
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 71: Frankfurt: quality assets in central locations
FRANKFURT: QUALITY ASSETS IN CENTRAL LOCATIONS landmark AT property Frankfurt Büro Center (FBC) Frankfurt Stadtmitte InterContinental Frankfurt Frankfurt HBF Frankfurt Office Campus Office Office Hotel Office Office European Central Bank Headquarters Frankfurt Hauptbahnhof Banking District (Central
Slide 72: Frankfurt: 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 Hotel Frankfurt Banking District Frankfurt HBF Offic
Slide 73: 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 Siemens Offic
Slide 74: 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 75: Hamburg – well placed across Germany's second-largest city
HAMBURG – WELL PLACED ACROSS GERMANY’S SECOND-LARGEST CITY landmark Hamburg Business District Hamburg Business AT property Office District Office Hamburg Business District Science Campus Office Altstadt Main Central Train Station HafenCity Hamburg City Center Dev Office 75
Slide 76: 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 City Center Office City Center Zwinger Palac
Slide 77: Leipzig – top tier assets at Hauptbahnhof
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 Main central train station Hotel Office City Center Promenade Nikolaikirche Office/Retail University of Leipzig 77
Slide 78: Appendix: Market data
APPENDIX: MARKET DATA NAVIGATE BACK TO TABLE OF CONTENTS 78
Slide 79: 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 80: 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 81: 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 82: 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 83: Dutch office market – low vacancies and stable rents
DUTCH OFFICE MARKET – LOW VACANCIES AND STABLE RENTS DUTCH OFFICE MARKET MAINTAINS ITS ATTRACTIVENESS DURING THE PANDEMIC Demand for high quality office space is high and supply is still scarce. New letting was lower due to delay in relocation decisions. Rents and values were stable during the pande
Slide 84: 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 below demand
Slide 85: Hotel market – fast recovery expected in Germany
HOTEL MARKET – RECOVERY IS EXPECTED TO BE FAST IN GERMANY, UK AND NL 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
Slide 86: 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