Slide 1: Q1 2017 Financial Results Presentation
Berlin Nuremberg Dortmund Leipzig Frankfurt Q1 2017 FINANCIAL RESULTS PRESENTATION Amsterdam Munich
Slide 2: Table of Contents
TABLE OF CONTENTS UPLISTING TO PRIME STANDARD HIGHLIGHTS FINANCIAL RESULTS & CAPITAL MARKET ACHIEVEMENTS OPERATIONS AND PORTFOLIO APPENDIX 2
Slide 3: Uplisting and Migration
UPLISTING AND MIGRATION Listing upgrade to Migration to Prime Standard Luxembourg Trading symbol On June 2, 2017, Aroundtown is on track to Aroundtown was uplisted move the company seat AT1 to the Prime Standard of to Luxembourg and the Frankfurt Stock continue as a Luxembourg Exchange company MARKE
Slide 4: Highlights
HIGHLIGHTS P&L Highlights – Q1 2017 Rental and operating income €114 million +128% Profit €247 million +7% Earnings per share (basic) €0.33 +22% Adjusted EBITDA €93 million +75% FFO I €59 million +82% FFO I per share €0.09 +80% FFO yield1) 7.7% Annualized dividend per share €0.23 +44% Div yield1) 5.
Slide 5: Financial Results
FINANCIAL RESULTS 5
Slide 6: Profit and Loss
PROFIT AND LOSS 1-3/2017 1-3/2016 Rental and Operating income (in €M) € million Rental and operating income 114 50 Capital gains, revaluations and other income 212 224 Share in profit from investment in equity-accounted 31 26 investees Property operating expenses (31) (13) Administrative and other e
Slide 7: Adjusted EBITDA
ADJUSTED EBITDA € million 1-3/2017 1-3/2016 Operating profit 323 285 Depreciation and amortization 1 1 EBITDA 324 286 subtracted as these profits Capital gains, revaluations and other income (212) (224) include AT’s share in non- Share in profit from investment in equity-accounted operational profit
Slide 8: FFO I
FFO I € million 1-3/2017 1-3/2016 Adjusted EBITDA commercial portfolio 80 36 Finance expenses (15) (9) Current tax (10) (4) Contribution to minorities (2) (1) Minorities in PCI and on SPV level FFO I commercial portfolio 53 22 FFO relating to properties marked for disposal (7) - FFO I commercial por
Slide 9: Total Assets
TOTAL ASSETS € million Mar 2017 Dec 2016 Investment property 5,794 5,016 Equity accounted investee, holding in GCP SA 1,361 1,317 High balance of cash Equity accounted investee, other 236 240 and liquid assets Non-current assets 7,813 6,989 enable Aroundtown to Assets held as held for sale 628 153 p
Slide 10: EPRA NAV
EPRA NAV Mar 2017 Dec 2016 EPRA NAV (€ bn) € million Per share € million Per share NAV per the financial statements 4,291 3,941 Equity attributable to perpetual notes investors (576) (478) NAV excluding perpetual notes 3,715 3,463 Effect of in-the-money convertible bond 387 394 Fair value of derivat
Slide 11: Conservative Capital Structure
CONSERVATIVE CAPITAL STRUCTURE Debt maturity profile (Mar 2017)* > 6 years Series H, average maturity Maturity of 1.8% 15 years cost of debt * including the effect of Series B bond conversions and the amount held by the Company as of the date of the Q1 2017 report publication Loan-to-Value Strong co
Slide 12: Financial Policy and Investment Grade Rating
FINANCIAL POLICY AND INVESTMENT GRADE RATING Financial risk profile Aroundtown financial policy: 1 2 3 4 5 6 Minim Modest Intermediate Significant Aggre High al ssive Levera Strive to achieve A- global rating in the ged long term 1 aaa/ bbb- Business risk profile Excellent aa a+/a a- bbb aa+ /bb+ (D
Slide 13: Capital Market Achievements
CAPITAL MARKET ACHIEVEMENTS First issuance in USD in 2017 to single Asian investor (full currency hedge until maturity) Equity and bond bookrunners Established EMTN program of €1.5 bn in March 2017 Largest European real estate issuer in 2016 Issued €3.5 bn since 2016 alone 13
Slide 14: Operations and Portfolio
OPERATIONS AND PORTFOLIO 14
Slide 15: Top Tier German/NL Cities (March 2017)
TOP TIER GERMAN/NL CITIES (MARCH 2017) Group Regional distribution* (by value) inhabitants per sqkm (2013) WALT In-place rent 7.6 €/sqm 7.6 years EPRA Vacancy 7.8% 15 * accounting for 36% in GCP’s portfolio
Slide 16: Commercial Investment Properties (March 2017)
COMMERCIAL INVESTMENT PROPERTIES (MARCH 2017) Portfolio breakdown per asset type Investment Area EPRA Annualized net In-place rent Value per sqm Rental properties (in €M) (in 000' sqm) vacancy rent (in €M) per sqm (in €) (in €) yield Office 3,102 1,481 10.5% 178 10.7 2,094 5.7% Retail 1,153 803 7.5%
Slide 17: Commercial Portfolio – Potential to Come
COMMERCIAL PORTFOLIO – POTENTIAL TO COME Commercial current annualized Rental Income vs. Commercial in-place rent compared to market rent prices Market potential including vacancy reduction Large upside potential from rent increases to market levels with very limited downside risk Long lease terms w
Slide 18: Top Tier Cities (March 2017)
TOP TIER CITIES (MARCH 2017) Asset Type Breakdown* *Accounting for 36% in GCP portfolio Residential geographical breakdown Commercial geographical breakdown 18 All breakdowns are by value
Slide 19: Top Tier Cities within Asset Classes (March 2017)
TOP TIER CITIES WITHIN ASSET CLASSES (MARCH 2017) Commercial asset type breakdown* * all breakdowns are by value Retail geographical breakdown Office geographical breakdown Hotel geographical breakdown 19
Slide 20: Quality Locations in Berlin Inner City
QUALITY LOCATIONS IN BERLIN INNER CITY 79% in top neighborhoods including the inner city, strongly benefiting from the unique dynamics and growth of Berlin’s most in demand neighborhoods, business areas and tourist centres 63% of the Berlin portfolio is located within inner-city 16% are well located
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 approx. 2,500 tenants 21
Slide 22: Highly Performing Hotel Locations
HIGHLY PERFORMING HOTEL LOCATIONS 72 hotels - by category (by value) Many of the hotel assets are held through a 98% stake in Prime 4% 3% City Investment 12% Well diversified portfolio of branded hotels totaling €1.1 bn and 5 stars 575k sqm as of March 2017 4 stars 81% High proportion (81%) in 4 sta
Slide 23: Appendix
APPENDIX 23
Slide 24: Equity Analyst Research Coverage
EQUITY ANALYST RESEARCH COVERAGE Covering Analysts Analyst Research Target Price Recommendations are set to Buy and above the current share price 24
Slide 25: Aroundtown's Share Price Performance
AROUNDTOWN‘S SHARE PRICE PERFORMANCE Share performance since initial placement of capital (13.7.2015) The share Share issue price development Shareholder structure (fully diluted) Frankfurt Stock Exchange Placement (Prime Standard) Euronext Paris First equity issuance 13.07.2015 Number of shares (ba
Slide 26: Aroundtown's Bond Performance
AROUNDTOWN’S BOND PERFORMANCE Convertible bond Series B performance since placement (27.4.2015) Convertible bond Series C performance since placement (15.12.2015) 26
Slide 27: Aroundtown's Bond Performance
AROUNDTOWN’S BOND PERFORMANCE Spread over mid-€-swap for straight bonds A and D, remaining 5 years Spread over mid-€-swap for 3.75% Perpetual Notes 27
Slide 28: Strategy and Business Model
STRATEGY AND BUSINESS MODEL STRONG CASH FLOW, QUALITY Quality assets PORTFOLIO WITH GROWTH top tier cities, POTENTIAL Germany/NL REPOSITIONING AND Healthy capital OPERATIONAL Creation Attractive IMPROVEMENTS structure with a Keep improving the acquisitions below strong & company rating market & belo
Slide 29: Investment Highlights
INVESTMENT HIGHLIGHTS 1 Proven business model and successful track-record Well allocated assets in the top cities of Germany and NL Highly cash generative portfolio resulting from successful repositioning Proven ability to drive operational performance, increase rents and occupancy and exten
Slide 30: Full Control over the Entire Operational Value Chain
FULL CONTROL OVER THE ENTIRE OPERATIONAL VALUE CHAIN • signs off on finalized rent contracts • Rental and marketing responsibility • monitors performance Head of • Lease management Operations • Contract negotiations • WALT management • 24/7 tenant service • Capex analysis Legal • Performance monitor
Slide 31: Lease Management as Drivers for Growth
LEASE MANAGEMENT AS DRIVERS FOR GROWTH – ACHIEVING LONG-TERM GROWING CASH FLOWS Localized one team touchpoint approach – building strong and long-term relationships with tenants. Teams become specialized with the individual asset, the tenants and the regional markets – proactively meeting tenants on
Slide 32: Rental and Marketing as Drivers for Additional Growth
RENTAL AND MARKETING AS DRIVERS FOR ADDITIONAL GROWTH Tailor made rental and marketing strategy on an asset basis Comprehensive vacancy analysis – conducting usability studies/letting concepts of vacant spaces in order to attract a large pool of diverse tenants Optimizing the usage of each asset and
Slide 33: Management
MANAGEMENT CEO and CFO CEO of Aroundtown. Previously, Mr. Mayo was the CEO of the Dankner Group, which under his management was a leading Shmuel international investment conglomerate with over $8 billion of assets. Mr. Mayo is since 2006 in the management of Aroundtown and its Mayo subsidiaries and
Slide 34: Office, Retail and Hotel Management Team
OFFICE, RETAIL AND HOTEL MANAGEMENT TEAM Markus Head of commercial operations. Before joining the Group he was a board member of Strabag AG and CEO of Raiffeisen evolution, responsible for project Neurauter development on 11 European countries with a development volume of more than €2bn. Mr. Neuraut
Slide 35: Regional Market Overview
REGIONAL MARKET OVERVIEW Hamburg ► GDP growth1: 1.9% ► Migration balance2: 0.9% Bremen ► Population density3: 2,334 per km2 ► GDP growth1 : 2.7% ► Migration balance2: 0.4% ► Population density3: 1,695 per km2 Hannover ► GDP growth (LS) 1: 2.1% NRW ► Migration balance2: 0.4% ► GDP share 2015 : 21% of
Slide 36: Germany – Growing and Strong Economy
GERMANY – GROWING AND STRONG ECONOMY GDP growth Debt/GDP 2016 Budget Surplus/Deficit 2015 Source: Eurostat Source: Eurostat, data as of Q3 2016 Source: destatis Germany has a growing GDP paired with a strong budget discipline… Unemployment rate 2016 Unemployment rate 1991-2016 Source: destatis Sourc
Slide 37: German Office Market: Low Supply and Strong Demand
GERMAN OFFICE MARKET LOW SUPPLY AND STRONG DEMAND… * in Top 7 locations according to DG HYP: Berlin, Munich, Construction of new commercial buildings in Germany Low addition of new office space* Frankfurt, Cologne, Hamburg, Düsseldorf, Stuttgart Increasing and above average office space take-up* Off
Slide 38: German Office Market: Increasing Rents and Occupancy
GERMAN OFFICE MARKET …LEAD TO INCREASING RENTS AND OCCUPANCY Top 7 locations: Berlin, Munich, Frankfurt, Cologne, Hamburg, Office rents are increasing Düsseldorf, Stuttgart Decreasing vacancy… …across Germany… 38 Source: DG HYP German Real Estate Market report
Slide 39: German Retail Market
GERMAN RETAIL MARKET Development of wages and consumer prices Increase in real disposable income Disposable income is increasing as real wages are increasing while inflation is decreasing,… Consumer climate Strong increase in retail sales 39 …which leads to a higher consumer climate and higher retai
Slide 40: German Retail Market
GERMAN RETAIL MARKET Retail rents are increasing Especially in the Top 7 cities Source: DG HYP German Real Estate Market report Strong consumer spending from strong employment market supports increasing rents 40
Slide 41: German Hotel Market Overview
GERMAN HOTEL MARKET OVERVIEW Overnight stays across all accommodation types Transaction volume of hotel properties € millions millions RevPar development Rated hotels by category Insolvencies in the accommodation services sector # of bankruptcies Total: 8,521 *Jan 2017 Source: Smith Travel Research
Slide 42: Macro Fundamentals Support GCP
MACRO FUNDAMENTALS SUPPORT GCP Population in Germany Population Density Annualized growth in rent price index* 2012-2016 (residents per km²) From 1991 to 2015 the amount of households increased by 15.7% International and domestic immigration trends to cities also support House price index in real te
Slide 43: Hamburg Dortmund Hannover
Hamburg Dortmund Hannover Amsterdam Leipzig Berlin Berlin Baden-Baden Rheinsberg 43
Slide 44: Frankfurt Mainz Düsseldorf
Frankfurt Mainz Düsseldorf Rotterdam Nuremberg Stuttgart 44
Slide 45: Berlin Potsdam Munich
Potsdam Berlin Frankfurt Munich Amsterdam Hamburg Utrecht Halle Dresden 45
Slide 46: 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
Slide 47: Rotterdam Frankfurt Munich
Rotterdam Frankfurt Munich Leipzig Amsterdam Berlin 47