Aroundtown Sa · XETR:AT1

Aroundtown Sa — Aroundtown Sa Ord — H1 2022 Earnings Presentation

93 slides from Aroundtown Sa's earnings presentation, Aug 24, 2022

  1. Slide 1: H1 2022 Financial Results

    H1 2022 FINANCIAL RESULTS AROUNDTOWN SA | AUG 2022 H1 2022 FINANCIAL RESULTS AROUNDTOWN SA BERLIN

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS ↗ HIGHLIGHTS ↗ OPERATIONS AND PORTFOLIO ↗ FINANCIAL RESULTS ↗ GUIDANCE & STRATEGY ↗ APPENDIX ↗ ESG ↗ DEVELOPMENT PROJECTS ↗ MAIN CITIES AERIAL VIEW BERLIN ↗ MARKET DATA H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 2

  3. Slide 3: Highlights

    HIGHLIGHTS | BERLIN H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 3

  4. Slide 4: H1 2022 Financial Highlights

    H1 2022 FINANCIAL HIGHLIGHTS OPERATIONAL RESULTS FINANCIAL DISCIPLINE CONSERVATIVE DEBT PROFILE ↗ NET RENTAL INCOME ↗ CASH AND LIQUID ASSETS ↗ CURRENT CASH AND DISPOSAL PROCEEDS* COVERING DEBT REPAYMENTS €613m €2.2 bn (15% of debt) 3 YEARS +34% YOY JUN 2022 *Cash & liquid assets, expected disposal p

  5. Slide 5: Disposals

    DISPOSALS DISPOSALS OF NON-CORE AND MATURE ...AT BOOK VALUE, VALIDATING PORTFOLIO ... FUNDING DEBT REPAYMENTS AND ASSETS... VALUATIONS... SHARE BUYBACKS €1.3BN SIGNED Office 36% Signed not closed: €220m Hotel Signed H1 2022: €785m 27% Closed after H1 22: (Q1:€280m / Q2: €505m) €410m ↗ Disposals at b

  6. Slide 6: Operations & Portfolio

    OPERATIONS & PORTFOLIO | FRANKFURT H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 6

  7. Slide 7: Well-balanced, diversified portfolio across asset types and cities

    HIGH DIVERSIFICATION, BALANCED ACROSS STRONG ASSET TYPES IN STRONG LOCATIONS 92% OFFICE/RESIDENTIAL/HOTEL, 92% IN GERMANY, THE NL & LONDON, WELL-BALANCED WITH STRONG DIVERSIFICATION AMONG WELL-DIVERSIFIED ACROSS TOP TIER CITIES WITH A FOCUS ASSET TYPES WITH DIVERSE FUNDAMENTALS ON CENTRAL LOCATIONS

  8. Slide 8: Defensive portfolio with strong tenant structure

    DEFENSIVE PORTFOLIO WITH STRONG TENANT STRUCTURE JUN 2022 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 12,043 3,738 10.7% 484 11.6 3,222 4.0% 4.3 Residential 8,546 3,7

  9. Slide 9: Operational growth potential as a defense against cost inflation

    OPERATIONAL GROWTH POTENTIAL AS A DEFENSE AGAINST COST INFLATION ↗ MOSTLY CPI-INDEXED OR STEP-UP RENTS, COMMERCIAL SUPPORTED BY CONTINUOUS DEMAND AND ↗ Expected rent increase from indexation & step-up rents LOW SUPPLY - due to market uncertainties future demand remains subject to market conditions ↗

  10. Slide 10: Office portfolio

    OFFICE PORTFOLIO – WELL-LOCATED IN TOP TIER CITIES OF GERMANY AND THE NETHERLANDS ↗ WELL-DIVERSIFIED OFFICE: 44% OF THE PORTFOLIO, WITH FOCUS ON TOP TIER CITIES ↗ No dependency on a single location, single tenant, single asset or single industry. Long lease structure with 4.3y WALT ↗ LARGEST LANDLOR

  11. Slide 11: Residential portfolio

    RESIDENTIAL PORTFOLIO ↗ GCP IS CONSOLIDATED AND THE HOLDING RATE IS 54% AS OF JUNE 30, RESIDENTIAL (GCP): 31% OF THE 2022 (58% excluding the shares GCP holds in treasury) PORTFOLIO ↗ Residential asset class is the Group’s second largest asset type after offices, providing the Group with a well-balan

  12. Slide 12: Hotel portfolio

    HOTEL PORTFOLIO ↗ WELL-DIVERSIFIED HOTEL: 17% OF THE PORTFOLIO 156 HOTELS: Mainly in top tier European cities ↗ Across Europe with a focus on locations with large catchment areas ↗ 15.0 YEARS WALT ↗ Long fixed contracts with no variable components with over 30 different strong third-party hotel oper

  13. Slide 13: Hotel recovery expectations

    HOTEL RECOVERY EXPECTATIONS H1 2022 PERFORMANCE 2022 EXPECTATIONS ↗ 2022 is expected to be better than 2021 with domestic leisure to drive the performance of 2022 higher, assuming no unexpected disruption ↗ Collection rate: 80% in July 2022 ↗ Expected collection rate: 70% - 80% for H2 2022 and 60% -

  14. Slide 14: Logistics and retail portfolio

    LOGISTICS AND RETAIL PORTFOLIO LOGISTICS: 2% OF THE PORTFOLIO RETAIL: 6% OF THE PORTFOLIO 5.1 YEAR WALT 4.3 YEAR WALT ↗ 6% of portfolio is retail, of which: ↗ Over 1/4 is part of other asset types (ground floor retail, service areas, etc.) ↗ REDUCED SHARE ↗ REDUCED SHARE ↗ Reduced from 7% in March 2

  15. Slide 15: Development / building rights

    DEVELOPMENT / BUILDING RIGHTS DEVELOPMENTS: 5% OF TOTAL ASSETS. AT’S DEVELOPMENT STRATEGY IN 3 STEPS: 1) IDENTIFYING THE POTENTIAL 2) CRYSTALLIZING THE GAINS 3) SELECTIVE DEVELOPMENTS IN MARKETS WITH STRONG THROUGH SALE OF RIGHTS IN SMALL SCALE AT LOW RISK DEMAND & SCARCITY OF LAND ↗ Identifying und

  16. Slide 16: Financial Results

    FINANCIAL RESULTS | MUNICH H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 16

  17. Slide 17: Profit and Loss

    PROFIT AND LOSS 1-6/2022 1-6/2021 Net rental income, recurring long-term1) (in €m) in € millions REVENUE 789.9 541.4 CAGR 602 +10% RECURRING LONG-TERM NET RENTAL INCOME 601.7 442.2 498 442 GCP PROPERTY REVALUATIONS AND CAPITAL GAINS 400.7 108.7 Share of profit from investment in equity-accounted inv

  18. Slide 18: Valuations

    VALUATIONS ↗ STABLE VALUATIONS ACROSS THE ↗ VALUATIONS ARE WELL-BELOW ↗ INDEXATION CAN ABSORB SOME PORTFOLIO REPLACEMENT COSTS YIELD INCREASE LFL VALUE GAINS LFL VALUE GAINS ASSET TYPE NET OF CAPEX INCL CAPEX (JUN 2022 VS DEC 2021) (JUN 2022 VS DEC 2021) 45% ↗ POTENTIAL LONG-TERM INCREASES IN THE ex

  19. Slide 19: Adjusted EBITDA

    ADJUSTED EBITDA 1-6/2022 1-6/2021 in € millions ▪ Subtracted as these profits include AT’s share in non-operational profits generated by the Operating profit 869.2 496.2 Total depreciation and amortization 9.0 3.3 equity accounted investees EBITDA 878.2 499.5 ▪ Other adjustments also include expense

  20. Slide 20: FFO I & FFO II

    FFO I & FFO II 1-6/2022 1-6/2021 FFO I (in €m) & FFO I per share (in €) in € millions FFO I BEFORE JV CONTRIBUTION 212.5 192.6 Contribution of joint ventures’ FFO I 18.1 54.6 234 FFO I BEFORE EXTRAORDINARY COVID ADJUSTMENT 230.6 247.2 +8% 186 172 Extraordinary expenses for uncollected rent (45.0) (7

  21. Slide 21: EPRA NAV KPIs

    EPRA NAV KPI’S Jun 2022 Dec 2021 EPRA NAV KPI’s (in €m) & EPRA NAV per share KPI’s (in €) in € millions unless otherwise indicated EPRA NTA EPRA NTA EPRA NRV (/ps) EPRA NTA (/ps) EQUITY ATTRIBUTABLE TO THE OWNERS OF THE COMPANY 10,481.3 10,533.6 13,094 13,058 13,044 11,187 11,564 11,428 Deferred tax

  22. Slide 22: Conservative capital structure

    CONSERVATIVE CAPITAL STRUCTURE CONSISTENTLY LOW LEVERAGE (LTV) FINANCING SOURCES MIX UNENCUMBERED INVESTMENT PROPERTIES Company BOD limit of 45% Straight bonds €23.8bn €24.2bn HEALTHY 39% 40% Loans & borrowings 38% 42% 41% BALANCE 34% 5% €15.6bn 3% SHEET Equity 3% 83% 84% of rent 57% 55% 56% of rent

  23. Slide 23: Ample liquidity mitigates dependency on market conditions

    AMPLE LIQUIDITY MITIGATES THE DEPENDENCY ON MARKET CONDITIONS DEBT MATURITY PROFILE – excluding perpetual notes CURRENT CASH AND DISPOSAL PROCEEDS 2,500 Straight bond Bank debt ↗ Cash and liquid assets €2,200m Millions This liquidity (Jun 2022) 2,000 balance covers the debt maturities in the next 3

  24. Slide 24: Perpetual notes – options for upcoming call dates

    PERPETUAL NOTES – OPTIONS FOR UPCOMING CALL DATES Options for upcoming call dates Impact on equity content (for S&P) ↗ Refinance with a new hybrid if rates are reasonable (new rates<step up rates) ↗ No impact ↗ Cash repayment using the authorized allowing according to S&P (10% of total outstanding a

  25. Slide 25: Guidance & Strategy

    GUIDANCE & STRATEGY | AMSTERDAM H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 25

  26. Slide 26: 2022 Guidance Confirmed

    2022 GUIDANCE CONFIRMED FY 2022 GUIDANCE FFO I €350 million – €375 million FFO I per share €0.31 – €0.34 Dividend per share €0.23 – €0.25 ↗ Total FFO I to be supported by debt optimization measures and higher collection rate of the hotels compared to 2021, offset by the full year impact of 2021 disp

  27. Slide 27: Agile & adaptive strategy in the current market environment

    NAVIGATING THROUGH THE CURRENT MARKET ENVIRONMENT WITH AN AGILE & ADAPTIVE STRATEGY MAINTAINING STRONG FOCUS ON FOCUSING ON DISPOSALS AND ON WELL-POSITIONED THANKS TO ITS LIFTING THE UPSIDE POTENTIAL ACCRETIVE ACQUISITIONS DISCIPLINED LIABILITY MANAGEMENT EMBEDDED IN THE PORTFOLIO ↗ Continuous effor

  28. Slide 28: Appendix

    APPENDIX | HAMBURG/LH H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 28

  29. Slide 29: Share Information

    SHARE INFORMATION THE SHARE SHAREHOLDER STRUCTURE Frankfurt Stock Exchange Placement (Prime Standard) Free Shares held float in treasury* 56% 29% Incorporation Luxembourg 13.07.2015 First equity issuance of which Blackrock Inc. Avisco Group (€3.2 per share) 5.6% 15% *12% are held through TLG Immobil

  30. Slide 30: Investment Properties

    INVESTMENT PROPERTIES JUN 2022 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 12,043 3,738 10.7% 484 11.6 3,222 4.0% 4.3 Residential 8,546 3,762 4.8% 361 8.3 2,272 4.2%

  31. Slide 31: Best-in-class Berlin portfolio – Jun 2022

    BEST-IN-CLASS BERLIN PORTFOLIO – JUN 2022 LOCATED IN THE BEST 85% NEIGHBORHOODS OF BERLIN Top Tier 85% of the Group portfolio is located in top Strongly benefiting from the unique dynamics tier neighborhoods: & growth of Berlin’s most in demand Charlottenburg, Wilmersdorf, Mitte, neighborhoods, busi

  32. Slide 32: 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 Prime 601 NH Hotel Dortmund Prime Center 190 Mark Apart Berlin Prime Center Ku’damm 120 Center Steigenberger Hotel de Saxe Dresden Prime Cen

  33. Slide 33: Investment in Globalworth

    ATTRACTIVE INVESTMENT IN GLOBALWORTH – THE LEADING LISTED OFFICE COMPANY IN POLAND & ROMANIA PRIME ASSETS & STRONG RIGHT INVESTMENT VEHICLE IN GLOBALWORTH OFFER TENANT BASE THE CEE MARKET ↗ Through a JV, AT and CPI hold together 61% of ↗ GWI is a leader in the Polish & Romanian office ↗ GWI is the r

  34. Slide 34: Highest rated German commercial real estate company

    HIGHEST RATED GERMAN COMMERCIAL REAL ESTATE COMPANY S&P Ratings Matrix Financial risk profile ↗ FINANCIAL POLICY 1 2 3 4 5 6 Minimal Modest Intermediate Significant Aggressi High ve Leverag ed ↗ Strive to achieve A global rating in the long term 1 aaa/ bbb- Excellent aa a+/a a- bbb Business risk pro

  35. Slide 35: 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

  36. Slide 36: Perpetual notes

    PERPETUAL NOTES OUTSTANDING CURRENT FIRST CALL CHARACTERISTICS OF PERPETUAL NOTES AMOUNT COUPON RESET RATE DATE 4.375% 369M EUR 3.75% 20 Jan 2023 +5Y MID-SWAP ↗NO MATURITY: 2.345% 3.546% ↗Perpetual notes have no maturity date. 641.5M USD (Swapped) +5Y MID-SWAP 21 Jul 2023 ↗NO COVENANTS & FULL OPTION

  37. Slide 37: Upcoming new EPRA KPI – EPRA LTV

    UPCOMING NEW EPRA KPI – EPRA LTV EPRA LTV DESCRIPTION ↗ The EPRA LTV disclosure aims to provide a Loan-to-Value (LTV) metric which EPRA believes is more relevant to shareholders and considers all equity which is senior to common shares not as equity but as debt. ↗ The main impact of the EPRA LTV rec

  38. Slide 38: Capital market activity

    CAPITAL MARKET ACTIVITY Capital market activity per year Capital market activity per issuance type 2015-2021 €4.6bn €4.2bn €4.2bn €4.0bn Str. Bond €12.3bn €2.6bn €1.9bn Conv. Bond €0.8bn €1.2bn Equity €6.2bn €3.2bn €0.2bn 2015 2016 2017 2018 2019 2020 2021 Equity (incl. Conversions) Perpetual notes

  39. Slide 39: Appendix – ESG

    APPENDIX – ESG | Across the portfolio H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 39

  40. Slide 40: Commitment to ESG

    COMMITTMENT TO ESG E CLEARLY S SOCIALLY G HIGH LEVEL OF SET TARGETS RESPONSIBLE GOVERNANCE Strong commitment to maintain Management oversight from Board Reduce GHG emission high tenant satisfaction of Directors (BoD) 67% of BoD is independent/ non Reduce water consumption and Increase employee reten

  41. Slide 41: AT's ESG target set overview

    AT’S ESG TARGET SET OVERVIEW H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 41

  42. Slide 42: Green building certifications

    ESG – ENVIRONMENT PART 1: 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 ↗ Ca. 30% of the Dutch portfolio already certified with BRE

  43. Slide 43: Conserving energy measures, reducing carbon footprint

    ESG – ENVIRONMENT PART 2: CONSERVING ENERGY MEASURES, REDUCING CARBON FOOTPRINT GHG EMISSIONS REDUCTION ENERGY INVESTMENT PROGRAM ↗ Energy Investment Program: installation of Photovoltaics (PV), Combined Heat and Power (CHP), Combined Cooling, Heat & Power (CCHP), EV charging stations, smart meters,

  44. Slide 44: Water and waste management

    ESG – ENVIRONMENT PART 3: WATER AND WASTE MANAGEMENT WATER CONSUMPTION WASTE MANAGEMENT ↗ A new initiative to further ↗ Remote water meters create optimize waste and awareness, influence tenant operational costs through behavior, detect water leaks waste management systems and unusual water usage (i

  45. Slide 45: 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 ↗ Numerous charities across portfolio’s locations, working in c

  46. Slide 46: Holistic tenant management approach

    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

  47. Slide 47: Goal to become top employer in commercial real estate

    GOAL TO BECOME TOP EMPLOYER IN COMMERCIAL REAL ESTATE TO ATTRACT BEST NEW TALENT Goal to become top employer in commercial real estate to attract best new talent COLLABORATION TRAINING Dynamic & open RETENTION Employee training corporate culture, Employee retention programs to ensure fostering perso

  48. Slide 48: Board of Directors

    BOARD OF DIRECTORS BOARD OF DIRECTORS – 4/6 MEMBERS ARE INDEPENDENT/NON-EXECUVITE AND 2/6 ARE FEMALE DIVERSE MIX OF PROFESSIONALS WITH STRONG & LONG EXPERIENCE, FOCUS ON REAL ESTATE INDUSTRY & FINANCING FRANK ROSEEN – EXECUTIVE DIRECTOR MARKUS LEININGER- INDEPENDENT DIRECTOR FORMER SENIOR BANKER WIT

  49. Slide 49: Board committees and the Advisory Board

    BOARD COMMITTEES AND THE ADVISORY BOARD ALL COMMITTEES ARE IN PLACE WITH INDEPENDENT MEMBERS IN PLACE AUDIT RISK NOMINATION REMUNERATION ESG COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE (MAINTAINING THE INTEGRITY OF THE (ASSESSING, MONITORING AND MITIGATING (IDENTIFYING SUITABLE CANDIDATES FOR

  50. Slide 50: Management Team

    MANAGEMENT TEAM MANAGEMENT BODY IS SUPERVISED BY THE BOARD OF DIRECTORS BARAK BAR-HEN – CO-CEO & COO EYAL BEN DAVID – CFO OSCHRIE MASSATSCHI – CCMO (CO-CHIEF EXECUTIVE OFFICER & CHIEF (CHIEF FINANCIAL OFFICER) (CHIEF CAPITAL MARKETS OFFICER) OPERATING OFFICER) SINCE 2013 IN THE MANAGEMENT OF SINCE 2

  51. Slide 51: Management Team – 2

    MANAGEMENT TEAM – 2 SENIOR MANAGEMENT NIKOLAI WALTER- HEAD OF ASSET & PROPERTY MANAGEMENT CHRISTIAN HUPFER - CHIEF COMPLIANCE OFFICER 20 YEARS EXPERIENCE IN THE REAL ESTATE INDUSTRY. BEFORE JOINING THE GROUP, WAS A MANAGING DIRECTOR OF SINCE 2008 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SUBSIDIARIES.

  52. Slide 52: ESG awards and indices

    ESG AWARDS AND INDICES S&P Europe ↗2021: 350 ESG Index STRONG RANKING SUSTAINABILITY CONSECUTIVE EPRA WITH SUSTAINALYTICS INDICES AWARDS ↗Top 4% globally across all industries ↗Included in S&P EUROPE 350 ESG Index ↗AT received EPRA BPR Gold award for the since May 2021 5th time and EPRA sBPR Gold aw

  53. Slide 53: Appendix: Development Projects

    APPENDIX: DEVELOPMENT PROJECTS | TOP TIER LOCATIONS BERLIN FRANKFURT BERLIN BERLIN H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 53

  54. Slide 54: Development/building rights – Berlin Grunewald/Schmargendorf

    DEVELOPMENT/BUILDING RIGHTS – BERLIN GRUNEWALD/SCHMARGENDORF PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION ↗ The 4k sqm property is situated in Berlin’s upscale residential district Grunewald/Schmargendorf, in Charlottenburg-Wilmersdorf. The ↗ Full re-development into assisted living facility,

  55. Slide 55: Development/building rights – Berlin Alexanderplatz

    DEVELOPMENT/BUILDING RIGHTS – BERLIN PRIME CENTER ALEXANDERPLATZ PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ The 11k sqm property is in the heart of Berlin Alexanderplatz, one of Berlin’s prime centers for both visitors and residents. The ↗ Complete renovation and refurbishment i

  56. Slide 56: Development/building rights – Berlin Mitte Annenstraße

    DEVELOPMENT/BUILDING RIGHTS – BERLIN MITTE ANNENSTRAßE PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ This neighborhood retail property is situated in Berlin’s central Mitte district, next to the St. Michael church and the ↗ Re-Development into mixed-use property Engelbecken, and co

  57. Slide 57: Development/building rights – Kassel logistics/industrial center

    DEVELOPMENT/BUILDING RIGHTS – KASSEL LOGISTICS/INDUSTRIAL CENTER PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ Identified underutilized and unused land plot. ↗ Kassel is strategically located in the center of Germany. Its ↗ Development of the land plot into 11k sqm logistics hall,

  58. Slide 58: Development/building rights – Berlin Tempelhof-Schöneberg logistics

    DEVELOPMENT/BUILDING RIGHTS – BERLIN TEMPELHOF-SCHÖNEBERG LOGISTICS PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ Berlin’s logistics market continues to experience a shortage of logistics space in areas close to the city center along motorways 1). ↗ Identified underutilized land pl

  59. Slide 59: Development/building rights – Berlin Tempelhof-Schöneberg logistics

    DEVELOPMENT/BUILDING RIGHTS – BERLIN TEMPELHOF-SCHÖNEBERG LOGISTICS PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ The 7k sqm property comprises a newly developed logistics and ↗ Berlin’s logistics market continues to experience a shortage of ↗ Identified underutilized land plot to

  60. Slide 60: Development/building 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 one of Berlin’s prime city centers, the central Alexanderplatz. The property is directly ↗ The asset’s

  61. Slide 61: Development/building rights – Berlin Tiergarten office

    DEVELOPMENT/BUILDING RIGHTS – BERLIN TIERGARTEN OFFICE VALUE POTENTIAL & PROPERTY DESCRIPTION DEVELOPMENT POTENTIAL MARKET DEMAND ↗ Complete demolition and re-development of the resi building & an ↗ The properties are situated in Berlin’s western center, walking distance ↗ The resi building is surro

  62. Slide 62: Development/building rights – Berlin Marzahn-Hellersdorf

    DEVELOPMENT/BUILDING RIGHTS – BERLIN MARZAHN-HELLERSDORF PROPERTY DESCRIPTION MARKET DEMAND DEVELOPMENT POTENTIAL ↗ Demolition of existing and re-development of new residential properties ↗ The property is situated in Berlin’s eastern residential district of ↗ The existing structure of the former re

  63. Slide 63: Development/building rights – Berlin Prime Center 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, 10707 Berlin, on ↗ Addition of new floors with condominiums expected to be Adenauerplatz in Berlin’s western prime center, Ku’Dam

  64. Slide 64: Development/building rights – Berlin Prime Center Ku'damm

    DEVELOPMENT/BUILDING RIGHTS – BERLIN PRIME CENTER KU’DAMM PROPERTY DESCRIPTION MARKET POSITION DEVELOPMENT POTENTIAL ↗ This 4k sqm property is located on Adenauerplatz in Berlin’s ↗ Addition of new floors with office space western prime center, Ku’Damm, an area attractive for prime ↗ The area surrou

  65. Slide 65: Development/building rights – Berlin Potsdamer Platz

    DEVELOPMENT/BUILDING RIGHTS – BERLIN POTSDAMER PLATZ PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ The 10k sqm property is situated in the prime center of Berlin, between ↗ Full property repositioning into hotel and serviced apartments Potsdamer Platz and Anhalter Bahnhof. The prop

  66. Slide 66: Development/building rights – Berlin Rosa-Luxemburg-Platz

    DEVELOPMENT/BUILDING RIGHTS – BERLIN PRIME CENTER MITTE ROSA-LUXEMBURG-PLATZ PROPERTY DESCRIPTION MARKET POSITION REPOSITIONING ↗ Complete upgrade, redesign and new branding expected to be finalized in 2022 ↗ The hotel is situated in Berlin’s prime central district, Mitte, adjacent Rosa-Luxemburg-Pl

  67. Slide 67: Development/building 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 main ↗ Repositioning and rebranding into Cardo by Autograph inner-city boulevard. The hotel is located at the main shopping street

  68. Slide 68: Development/building rights – Frankfurt InterContinental

    DEVELOPMENT/BUILDING RIGHTS – FRANKFURT PRIME CENTER INTERCONTINENTAL PROPERTY DESCRIPTION MARKET POSITION DEVELOPMENT POTENTIAL ↗ The large hotel is situated in the center of Frankfurt, right on the bank of ↗ Hotel refurbishment, with floor additions, adding new built the river Main and in close pr

  69. Slide 69: Development/building rights – Hotel Paris city center

    DEVELOPMENT/BUILDING RIGHTS – HOTEL PARIS CITY CENTER PROPERTY DESCRIPTION MARKET POSITION REPOSITIONING ↗ The 4-star hotel is centrally located in the 14th arrondissement ↗ Complete renovation and refurbishment, with a dual brand, of Paris. The surrounding area has a large variety of restaurants, h

  70. Slide 70: Development/building rights – Hilton Berlin Gendarmenmarkt

    DEVELOPMENT/BUILDING RIGHTS – HILTON BERLIN PRIME CENTER GENDARMENMARKT PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ The asset’s district “Mitte” is Berlin’s top office district with highest rents in ↗ The 4 star Hilton Hotel is located in the heart of Berlin on the city1). Averag

  71. Slide 71: 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 at Schnellerstraße 137, 12439 Berlin, in ↗ Conversion and development into mixed use urban quarter. Ca the Niederschöneweide qua

  72. Slide 72: Development/building rights – Frankfurt main central train station

    DEVELOPMENT/BUILDING RIGHTS – FRANKFURT MAIN CENTRAL TRAIN STATION PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ The office tower is located at the corner of Bahnhofsviertel, ↗ Refurbishment and creating additional sqm: ↗ The 22-storey office tower covers 20k sqm and is situated Eu

  73. Slide 73: Development/building rights – Berlin Kreuzberg/Alt-Treptow

    DEVELOPMENT/BUILDING RIGHTS – BERLIN KREUZBERG/ALT-TREPTOW PROPERTY DESCRIPTION MARKET DEMAND VALUE EXTRACTION POTENTIAL ↗ Located between Mediaspree and Adlershof Science Park, Alt- ↗ The cinema center holds 7k sqm & is located across the Park Treptow office market has a strong demand Center retail

  74. Slide 74: Appendix: Focus on central locations of top tier cities

    APPENDIX: FOCUS ON CENTRAL LOCATIONS OF TOP TIER CITIES | TOP TIER LOCATIONS DRESDEN BERLIN AMSTERDAM BERLIN H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 74

  75. Slide 75: Berlin Alexanderplatz: prime commercial and tourist center

    BERLIN ALEXANDERPLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER Landmark AT property H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 75

  76. Slide 76: Berlin Potsdamer Platz: prime commercial and tourist center

    BERLIN POTSDAMER PLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER Landmark Potsdamer Platz Office AT property Potsdamer Platz Checkpoint Charlie Mixed-use Residential/Office/Hotel (GCP) Office Potsdamer Platz Checkpoint Charlie Office Office Gendarmenmarkt Office Gendarmenmarkt Gendarmenmarkt Office R

  77. Slide 77: Berlin Ku'damm: prime commercial and tourist center

    BERLIN KU’DAMM: THE PRIME COMMERCIAL AND TOURIST CENTER Berlin City Center Mitte Retail Potsdamer Platz Landmark Moxy by Marriot Berlin Mitte Ku’Damm KaDeWe Residential Hotel (GCP) AC by Marriot Berlin Mitte Hotel AT property Ku’Damm KaDeWe Office Berlin City Center Mitte Office Ku’damm /Uhlandstr.

  78. Slide 78: 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

  79. Slide 79: 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) Office Frankfurt Messe Frankfurt Messe Frankfurt Messe AT property Office Office Office Intercontinental Frankfurt Hotel Frankfurt Banking District Frankfurt HBF Offic

  80. Slide 80: Munich: assets in central locations

    MUNICH: ASSETS IN CENTRAL LOCATIONS, NEAR EXHIBITION CENTER & COMMERCIAL HUBS Landmark Global HQs of Allianz Global Corporate German HQs of Generali & Specialty Insurance AT property Schwabing – Munich’s highest Global HQs of Wacker Chemie AG populated district Englischer Garten Munich Siemens Offic

  81. Slide 81: Amsterdam – centrally located high quality assets

    AMSTERDAM – CENTRALLY LOCATED HIGH QUALITY ASSETS Amsterdam Zuidoost Landmark Amsterdam Zuidoost Amsterdam Office Office Sloterdijk Train Station Amsterdam West AT property Office Complex Office Amsterdam Arena Office Amsterdam Sloterdijk Office Amsterdam Westpoort Office Amsterdam Arena Amsterdam A

  82. Slide 82: Hamburg – well placed across Germany's second-largest city

    HAMBURG – WELL PLACED ACROSS GERMANY’S SECOND-LARGEST CITY Landmark Hamburg Business District AT property Office Hamburg Business District Office Hamburg Business District Science Campus Office Altstadt Main Central Train Station HafenCity Hamburg City Center Dev Office H1 2022 FINANCIAL RESULTS ARO

  83. Slide 83: Dresden – prime assets in historic city center

    DRESDEN – PRIME ASSETS IN HISTORIC CITY CENTER Dresden main central train Landmark Main central train station 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 Zwinger Palace City Cente

  84. Slide 84: Leipzig – centrally located top tier assets at Hauptbahnhof

    LEIPZIG – CENTRALLY LOCATED TOP TIER ASSETS AT HAUPTBAHNHOF Landmark Main central train station Office Leipzig main central AT property train station Main central train station Hotel Main central train station Office City Center Promenade Nikolaikirche Office/Retail University of Leipzig H1 2022 FIN

  85. Slide 85: Appendix: Market Data

    APPENDIX: MARKET DATA | TOP TIER LOCATIONS ROTTERDAM DRESDEN COLOGNE LEIPZIG H1 2022 FINANCIAL RESULTS AROUNDTOWN SA 85

  86. Slide 86: Regional market overview

    REGIONAL MARKET OVERVIEW Amsterdam Berlin ◼ GDP growth: 3.5% p.a. (avg 2016-2020) ◼ GDP growth: 4.5% p.a. (avg 2016-2020) ◼ Net migration: 6k p.a. (avg 2016-2020) GERMANY ◼ Net migration: 28k p.a. (avg 2016-2020) ◼ Population density: 5.3k per km2 ◼ Population density: 4.1k per km2 Utrecht Hamburg ◼

  87. Slide 87: Real estate remains attractive with large yield spread

    REAL ESTATE REMAINS ATTRACTIVE WITH ITS LARGE YIELD SPREAD & STRONG FUNDAMENTALS Large spread between German Bund yields and ↗ CONTINUOUS STRONG DEMAND SUPPORTED BY LARGE SPREAD German prime Office & Residential yields ↗ Approx. €1 trillion of German government bonds will mature in the next 4 years1

  88. Slide 88: 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 THE COVID-19 LOCKDOWN WITH DEMAND KEEPS THE OFFICE FURTHER THROUGHOUT 2021 RECORD LOW VACANCY RATES MARKET RENTS STABLE IN BIG 7 ↗ Vacancy Rates in German

  89. Slide 89: Office market Germany – supportive values

    OFFICE MARKET GERMANY – SUPPORTIVE VALUES CONTINUOUS STRONG DEMAND RECENT MARKET DEALS SHOW THE SUPPORTED BY HISTORICALLY INVESTMENT VOLUMES REMAIN SUSTAINED HIGH DEMAND IN LARGE SPREAD OF PRIME OFFICE HIGH, WELL ABOVE GFC LEVELS GERMAN OFFICE REAL ESTATE YIELDS TO GOVT. BOND YIELDS ↗ Germany Big 7

  90. Slide 90: Dutch office market remains strong

    DUTCH OFFICE MARKET – LOW VACANCIES AND STABLE RENTS DUTCH OFFICE MARKET REMAINS STRONG DESPITE PANDEMIC DISRUPTIONS DEMAND FOR HIGH QUALITY OFFICE SPACE IS HIGH AND VACANCIES REMAIN LOW. RENTS AND VALUES WERE STABLE DURING THE PANDEMIC THANKS TO THE STRONG FUNDAMENTALS ↗ VACANCIES ARE SIGNIFICANTLY

  91. Slide 91: Resilient German residential market

    RESILIENT GERMAN RESIDENTIAL MARKET POSITIVE NET MIGRATION RESULTS REDUCTION OF HOUSEHOLD SIZE SIGNIFICANT UNDERSUPPLY 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 d

  92. Slide 92: Highest share of domestic travel supports fast recovery 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 THAN INTERNATIONAL TRAVEL. THANKS TO ITS HIGH SHARE OF DOMESTIC TRAVEL, THE LAG IN INTERNATIONAL TRAVEL HAS A REDUCED

  93. Slide 93: 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

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