Balanced Business Model, Stable Cash Kiel - federal capital; ranked - - PowerPoint PPT Presentation

Balanced Business Model, Stable Cash Flow, Growth

Quality player in the German Multifamily sector One of the top 10 players in the Retail Parks sector in Germany Leading Condo developer in Düsseldorf

March 2017

Kiel - Multifamily complex Rostock - Hanse Center Retail Park 64,000 m2 retail park, 354,000 m2 land, 2,500 parking spaces Kiel - federal capital; ranked in the top 5% of the fastest growing cities in Germany Rostock– a major business center in Northeastern

• Germany. Rostock is ranked in the top 15% of the

fastest growing cities in Germany Grafental - The largest residential development in Düsseldorf Leipzig – Multifamily complexes Leipzig - has the highest population growth rate in Germany Düsseldorf - ranked no. 6 globally in terms of quality of living

1

Legal Disclaimer

2

The purpose of this presentation is to provide information on Brack Capital Properties N.V. (hereinafter: the “Company”), its operations and financial performance. It does not constitute an offer to purchase or sell securities of the Company or an invitation to receive offers as stated, and is designated only for the provision of information. The information provided in the presentation is for the sake of convenience only and does not constitute a basis to make any investment decisions, nor it is an alternative to the gathering and analysis of personal information, does not constitute a recommendation or opinion and does not constitute an alternative to the personal discretion of any investor. This presentation and the information included herein were not intended to replace the need to review the reports published by the Company to the public, including the Company’s periodic reports for 2016 (published on March 26, 2017) The Company is not liable for the completeness or accuracy of the information included in the presentation and will not bear any liability for any damage and/or loss that may be caused as a result of using this information. In any event of a contradiction or discrepancy between the information given in this presentation in a general and summarized manner and between the detailed information appearing in the periodic reports and/or interim reports of the Company and/or the immediate reports of the Company, the statements of these reports shall govern. The presentation includes plans for operations and/or moves and/or evaluations of the Company in relation to its assets constitutes forward- looking information, as the term is defined in the Securities Law, 5728-1968 (hereinafter: the “Securities Law”), including forecasts, business goals, evaluations and standards, and including information presented through drawings, graphs, surveys and any other information, in any manner provided, relating to the future events or matters, the realization of which is uncertain and not under the Company’s control. The realization and/or non-realization of the forward-looking information as stated will be impacted by entities that cannot be evaluated from the outset and are not under the Company’s control, including risk factors characterizing the Company’s operations and from developments in the general and financial environment in the Company’s areas of business, and external factors impacting its operations. The data detailed on pages 5, 14 through 17 and 20 regarding projects in residential development in Dusseldorf regarding data of expected profits, sales, income and expected rate of development profit, as detailed in these slides is forward-looking information that is not under the Company’s full control and the fulfillment of which is not certain. The information based on the current information existing in the Company, regarding: the demand for residential areas in the city, market prices of the residential areas in the city, accumulated knowledge and experience of the Company’s management and forecasts and estimates of the Company regarding the construction, development, marketing costs, etc. A change in circumstances may change the Company’s detailed evaluations, and may materially impact the expectations of income from the projects and their

• verall profitability. Similarly, there is not any certainty that the processes of the zoning change of the real estate sites will take place and/or will be

completed, if at all, since their completion is subject to the planning and construction proceedings required according to the German law, the completion of which is not under the Company’s control. The information included in the presentation may be considered to be presented differently than the manner it is presented in the Company’s reports, but is available for calculation from the data included in the said reports. It shall be emphasized that the pictures attached to this presentation, as well as the statements on slides 3 – 5, 7 – 9, 10 – 11, 14 – 17, 19 – 20, and 22 of the presentation were not included in the past reports of the Company and are provided for the first time in this presentation, are presented in a manner that is different than that which was presented in the Company’s reports, or were updated in accordance with the statements of the Company’s periodic reports for 2016

• Investment grade rating from S&P (-ilAA)
• LTV2 – 51.3% (47.5% post share issuance in January 2017)
• ICR3 - 3.9x.

BCP at Glance

• Multifamily portfolio (10,414 units, 52% of GAV1) - located in large and growing cities, high-quality, compelling valuation (6.6% rental yield), strongly

under-rented (28%), outstanding KPIs (5.4% l-f-l rent growth & 9.5% ERV growth).

• Retail parks portfolio (334,000 sqm, 33% of GAV1) - dominant centers in growing cities, long WALT, compelling valuation (6.1% NOI yield), significant

upside potential (rezoning & development potential).

• Residential Development (15% of GAV1) – Significant development pipeline (1,408 units), mainly in Dusseldorf, with accretive substantial impact on

NAV in the coming years.

1. Company share. 2. Net debt to total real estate portfolio. 3. EBITDA to Interest (incl. annualized contribution from development).

• NAV - 15% CAGR over the last 5 years.
• FFO - 21% CAGR over the last 5 years.
• Share price - 22% CAGR over the last 5 years.
• Our staff has over EUR 10B of collective German investment, development and asset management track record.
• Management and operations are highly scalable.
• Traded on the Tel Aviv Stock Exchange since December 2010.
• Constituent of the TA 100 and TA-15 Real Estate index.
• 52% free float.

Attractive and Unique Risk Return Product Strong Operational, Development and Leasing Team

BCP I.D

Dutch N.V Active in Germany since 2004 Approximately 1.2M sqm of income producing and development properties (~ EUR 1.3B) 155 employees Market Cap (Tel Aviv Stock Exchange, March 23, 2017 ): EUR 603M EPRA NAV: EUR 491.2M (EUR 538.2M post share issuance in January 2017) FFO: EUR 32.1M

Track Record of Value Creation Robust & Flexible Balance Sheet Capital Markets

3

Operational Segments - Profitability & Growth

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% כש תאושת"דןומימה תולע 6.63% 1.52%

5% Margin

Multifamily: 10,414 residential units (52% of GAV)

1

Interest rate Rental yield

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

כש תחימצ" ד םיהז םיסכנב כש תחימצ" ד תושדח תורכשהב

5.4% 9.5% 3.1% 4.9%

BCP םירחתמ

Sustainable High Growth

€ 37.5 € 47.8 € - € 10.0 € 20.0 € 30.0 € 40.0 € 50.0 € 60.0

כש"םויכ דכש" תורכשה יפל ד תושדח

+€10.3M

Significant Upside Potential

Rental growth in l-f-l assets Rental growth in new leases Current Rent ERV (based on new lettings)

Retail Parks portfolio: 334,000 sqm (33% of GAV)

2

Organic Growth

• L-f-L Rental growth– 3.4%
• Development & redevelopment plans to add

and upgrade retail spaces - €50M with a Return

• n Investment (ROI) of 9%.
• Significant rezoning potential in the mid term in

5 assets representing 15% of the Retail Portfolio.

1 With anchor tenants, leasing ca. 50% of total rentable areas.

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% תאושת NOIןומימה תולע 6.15% 2.09%

4% Margin

Large Spread

95% High occupancy rate About 10 years1 Long WALT Approximately 90% of the spaces are leased to national chains Quality tenants 4% - 5% of turnover Low rental burden

Good Operating Parameters

Financing

NOI yield 4

High Cash Flow

Peer Group

Financing costs

Operational Segments - Profitability & Growth (Cont.)

Residential development: 1,408 residential units under construction and planning (15% of GAV)

3

€ 0 € 20 € 40 € 60 € 80 € 100 € 120 € 140 תועקרק יאלמ יופצ חוור(סמ יוכינב)*

€121 €82

High Embedded Value

Land Inventory Expected profit (net of tax *) EUR in millions, the Company’s share

€ 3,585 € 3,937 € 4,152 € 4,571 € 4,940

€ 2,500 € 3,500 € 4,500

Grafental – Evolution of Sales Prices per sq.m

א בלשב בלש'1ב בלש'3ג בלשד בלש

21% 26%26%28%32%

0% 20% 40%

Grafental - Evolution of Developer’s Profitability

א בלשב בלש'1ב בלש'3ג בלשד בלש

Growth High Developer’s Profit

7% + from phase to phase

Stage D Stage B3 Stage B1 Sta ge C Stage A Stage D Stage C Stage B3 Stage B1 Stage A

* Assuming maximal tax rate of 31%. ** Market value net of cash (including proceeds from capital raising) net of land inventory of the development activity

Profitability/FFO yield/ Growth

4 4 3

32.1 47.2 0.0 10.0 20.0 30.0 40.0 50.0 FFO םויכ FFO קוש יריחמ יפל

FFO (EUR in millions)

9.3% 13.7% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% תאושת FFO תאושת FFO יפל קוש יריחמ

תאושת FFO**

Current FFO FFO according to ERV

FFO yield

FFO Yield based on ERV

FFO Yield **

The cash balance (approximately € 136 million) will be used to grow the Portfolio in existing cities while exploiting synergies. Since the beginning of the year, the company reported transactions for a considerations of ca. € 42 million.

1.9 2.4 3.1 3.7 4.4 0.0 2.0 4.0 6.0

FFO הינמל(וריאב)

20122013201420152016

18% p.a.

34.2 38.0 43.4 52.4 63.4 0.0 20.0 40.0 60.0 80.0

NAV הינמל(וריאב)

20122013201420152016

13% p.a. FFO per share (EUR) NAV per share (EUR) 5

Main Developments in 2016 and Beginning of 2017

• Expansion of the income producing portfolio in existing regions of operation, with properties that posses significant upside

potential while exploiting managerial synergies.

Acquisitions

• In 2016, the Company invested EUR 95 million, of which EUR 83 million in acquiring 836 residential units in Kiel, Hannover and Dortmund

with the balance in retail properties.

• Since the start of 2017, the Company purchased in 4 different transactions, 537 residential units in Hannover, Essen and Leipzig for EUR 47
• million. These properties generate a current rental income of EUR 2.5 million and posses significant upside potential in the form of mark-

to–market of the rent/privatization.

• Expanding the development activity to Aachen – an important technological center at the borders of Germany/ Holland/ Belgium
• In February 2016, the Company purchased, with a partner (50%), a land plot of 53K sqm, with an inactive textile plant, for EUR 6 million.
• During 2016, the Company reached understandings with the local planning authorities that will enable to increase the development rights

to 280-300 residential units (compared to 180-220 upon acquisition) and to change the zoning from industrial to residential, which will facilitate the approval of the urban development scheme by the end of 2017 and start construction during the first half of 2018.

Financing

• The average interest rate on bank loans decreased from 2.05% in December 2015 to 1.77% in December 2016 thanks to

refinancing in the amount of EUR 239 million during the course of the year.

• Potential for further interest rate reduction with further refinancings planned
• On January 31, 2017, the Company completed an issuance of shares and warrants for a total consideration of EUR 49.5

million (gross).

• As a result of the share issuance the LTV ratio* amounts to 47.5%.

Capital Issuance

* Net debt to GAV

6

Multifamily Portfolio – Quality Play

Key parameters Attractive Geographic Diversification*

Bremen 10% - 1,044 units Hannover 9% - 904 units General data Total lettable area 609k m2 Occupancy 96% Annual rental income EUR 40 million Average rent psm EUR 5.74 Current yield Rental yield 6.6% NOI yield 5.7% Potential yield ERV yield* 8.5% Adjusted NOI yield** 7.6%

* ERV - rental income based on avg. new lettings. ** Adjusted NOI – under the assumption that all properties are let at ERV.

Rest of NRW

(Duisburg, Essen…

31% - 3,296 units Kiel 10%- 1,015 units

* By no. of units, incl. transactions completed after the balance sheet date.

Leipzig 31% - 3204 units Dortmund 951 units – 9%

 Macro: Locations in cities with rent growing faster than the German average.  Micro: Locations in well- established neighborhoods experiencing rent growth of 2.3% above the market.

Outperforming the Market

7 Source: The company

5.5% 6.5% 9.4% 6.7% 8.2% 5.8%

6.8% Germany NRW Dortmund Hannover Leipzig Bremen Kiel

Average : 7.2%

Market Rent Growth (q4/2016 vs. q4/2015)

9.5% 9.6% 9.5% 7.5% 8.8% 11.8% 8.9%

BCP portfolio NRW Dortmund Hannover Leipzig Bremen Kiel

Like for Like New Lettings (q4/2016 vs. q4/2015)

Source: JLL

Multifamily Portfolio – Quality Play

10,414 residential units in 16 cities were purchased over the last 12 years in 18 difference transactions and are managed by the company over a long period of time

1. Based on actual new lettings – the most influential parameter on future rental growth rates in L-f-l properties. 2. Public companies operating in the German residential market. Data taken from Credit Suisse research reports and from the companies' publications. 3. Average flat size in BCP portfolio is 58 sqm compared to 61-64 sqm among the competitors.

Consistently Outperforming the Market

Performance Strategy /policy Parameter

• The ERV in the company’s cities of operation is

growing at a rate twice the national average.

• The

rent growth in the company’s portfolio

• utperforms the avg. ERV growth in the cities of
• peration (9.5% vs. 7.2%).
• 100% of the portfolio is located in large cities/urban

areas.

• Focusing on cities that are among the top 30% in terms
• f population growth rate and benefiting from robust

rental growth.

• Focusing
• n

well-established neighborhoods with good employment, transportation, and educational institutions. Strong Locations

• Macro
• Micro
• The accelerated growth trend in the number of small

households constitutes a long-term growth factor.

• An attractive product for quality tenants.
• A successfully implemented strategy for many years

which contributes to high collection rates of 98%- 99%.

• High proportion of 1 and 2 room apartments3, the

fastest growing market segment in the major cities.

• Properly maintained by the company staff.
• Strict tenant underwriting policy and quality tenant

service by the Company staff. Property Features

• Apartments’ size
• Good physical

condition

• Good tenant mix
• Critical parameter in a market that undergoes a

structural correction in the rent level where the demand/supply gap will not be bridged in the coming years.

• Regulatory legislation concerning tenant protection

is mostly in the federal state level.

• Only ca. 4% of the apartments are under rent control

compared to 11% - 29% among the German peers.

• Diversification across 16 different cities in 6 different

federal states, thus reducing exposure to possible local regulatory initiatives. Regulation BCP ranking Peer group average2 BCP 12.2016 1 4.9% 9.5% Rental growth in new lettings1 2 3.1% 5.4% Rental growth in L-f-l properties

High rise 1,740 residential units Town houses 1,185 residential units Low rise modern construction 6,878 residential units Buildings for conservation 611 residential units

Well maintained portfolio, Diverse building types 100% in large cities

250 to 500 thousand residents, 30% More than 500 thousand residents, 51% 100 to 250 thousand residents, 19% * Based on book value

8

Multifamily Portfolio – Quality Play

Total Leipzig Hannover Bremen Kiel Dortmund NRW 10,414 3,204 904 1,044 1,015 951 3,296

• No. of units

96% 95% 97% 96% 99% 98% 97% Occupancy € 998 € 962 € 1,490 € 850 € 1,293 € 974 € 873 Value per sqm € 5.74 € 5.81 € 7.02 € 5.48 € 6.02 € 5.87 € 5.28 Rent per sqm € 7.10 € 7.35 € 9.27 € 7.00 € 8.43 € 8.21 € 5.56 ERV per sqm in new lettings

Undemanding Valuation 6.6% Rental yield EUR 998 Book value per sqm Strong KPIs 5.4% L-F-l growth in current rent 9.5 % L-F-l growth in ERV 28% Upside to ERV 9

Key parameters* General information Number of tenants ~ 310 Total lettable area 334k sqm Occupancy 95% Annual rental income EUR 32 million Average WALT* ~ 10 years Current yield Rental yield 6.6% NOI yield 6.1% Potential yield ERV yield** 7.2% Adjusted NOI yield*** 6.7%

A Leading Player in the German Retail Parks Sector

Diversified Portfolio Generating a Stable Cash Flow

*Contracts with anchor tenants. *** ERV - rent according to market price. ***Adjusted NOI - NOI under the assumption that the properties are leased according to ERV.

Well diversified Geographically with a significantpresence in urban and establishedareas

• Ca. 2/3 of BCP's properties are situated in cities ranked in

the top 20% in terms of population growth rate

Top 10%, 17% of portfolio 9th Decile, 47%

• f portfolio

8th decile, 12% of portfolio 7th decile ,16%

• f portfolio

8% of the locations are around the median Ranking of the Company's portfolio locations by population growth forecast index* (according to book value, company share, excl. the non- core portfolio).

*According to a research by Prognos from 2016 which encompasses 402 cities and counties in Germany. The population growth forecast is based on weighing the following parameters: birth rate, rate of the young adults from total population and the total immigrants per city and population development in the last decade.

10

The balance are in cities that grow above average Key parameters

A LeadingPlayerintheGermanRetailParksSector

Breakdown of the retail properties1

• 1. Excl. the non-core portfolio (9% of the retail portfolio and 3% of the total RE portfolio) consisting 3 long held properties, the rezoning potential of which was exhausted and are designated

for sale in the next 2 years.

Strengths Property Description % of the Total portfolio % of the Retail portfolio Property Features Category

• Rostock is ranked in the top 15% of the fastest growing cities in Germany.
• Attractive tenant mix with long term WALT with anchor tenants.
• Rental yield of ca. 6.4%.
• Additional building rights of approx. 5,000 sqm and rezoning potential with significant long term upside.

The largest retail center in Rostock and in the federal state, combining a mall with power center. Has a lettable area of

• approx. 64 k sqm and 2,500 parking spaces on a land plot of

35.4 hectares. 7% 22% Super Regional Retail Park (Hanse Center, Rostock) A

• Very high Retail Centrality index (134).
• Rental yield of ca. 6.4%.
• Building rights of approx. 12,000 sqm.
• Rent increase potential.

4 large properties (lettable area of approx. 60 k sqm) with

• ca. 2,200 parking spaces which constitute the only or

dominant retail center in town. The properties are located in four medium- sized cities serving as the commercial hub of their respective catchment area. 8% 24% The Main Retail Center in Town B

• Rental yield of ca. 7%.
• Low book value per lettable sqm: EUR 1,250.
• Very low value of land: EUR 675 per sqm.

5 properties (lettable area of approx. 58 k sqm) on land plots totaling 11.6 hectares in Dusseldorf, Cologne, Frankfurt and Bavaria in proximity to residential

• neighborhoods. 3 of the properties are leased to Obi and 2
• f them are multi let. The avg. WALT is ca. 6 years.

5% 14% Properties in large cities with rezoning potential C

• Rent increase potential of ca. 40%.
• Rental yield of ca. 6.7%.
• Low book value per lettable sqm: EUR 1,100 - below reinstatement cost.

5 large neighborhood centers with lettable area of approx. 55 k sqm anchored by Kaufland hypermarket in affluent cities near Stuttgart and Munich. 3% 10% Dominant properties in affluent cities in Bavaria and Baden- Württemberg D

• The majority represent the dominant DIY property in the city; limited competition; a strategic asset for the

tenant (the nearest branch is between 15 and 60 km away).

• Turnover of approx. EUR 13-15M per store p.a.
• Rental yield of ca. 7.3%.
• Low book value per lettable sqm: EUR 1,100.
• Large land plots – total of 20.2 hectares; low value of land: < EUR 370 per sqm.

8 properties with total lettable area of ca. 67 k sqm on land plots totaling 20.2 hectares. 7 of the properties are leased to Obi and one property is leased to Toom for long rental periods (avg. WALT of 11 years). 4% 13% DIY properties leased to category leaders in Germany for a long- term term E Long term rezoning potential to residential use 2 office buildings in Düsseldorf + small hypermarket 3% 8% Others F

11

Dominant Properties in Attractive Locations

Rostock Super regional hybrid center, significant development potential The only inner-city shopping center adjacent to the pedestrian area. Significant development potential The city‘s largest retail center Celle - Lower Saxony Castrop Rauxel – NRW The largest retail center in the city Dominant district center in affluent city

near Stuttgart

Borken – NRW Ludwigsburg- Baden Wurttemberg Erlangen - Bavaria City center retail property anchored by Kaufland; 17k sqm land plot. Significant rezoning potential Well located DIY, rezoning potential OBI - Düsseldorf Augsburg - Bavaria Well located, significant development potential Well located DIY, rezoning potential OBI - Cologne

12

Residential development activity in Düsseldorf - An International economic Center, 6th in Quality of Life Worldwide1

13

• 1. The Mercer Quality of Living Survey 2015.

Source: Mercer, City of Dusseldorf 2015

Ranked first in the world in terms of quality of life for cost of living Very high quality of life combined with low cost of living Continued price growth of 6% -7% annually and still remains inexpensive compared with westerncities

Source: JLL, Globalpropertyguide.com, Eurostat, Yad-2 index, The Marker.

Residential Market - Average purchase price per m2

$3,358 $3,370 $3,687 $4,485 $4,647 $6,763 $6,924 $8,007 $9,820 $18,415

Source: Municipality of Dusseldorf, according to 2008 study, InWIS Forschung&BeratungGmbH

Expected shortage of residential units - study of City of Dusseldorf Structural shortage of tens of thousands of residential units

Expected shortage of

Ca.31,000 residential units in 2020

Residential Development– High Profitability & Proven Track Record

14

1. Currently a yielding property, in rezoning to residential process. 2. In rezoning stages. It should be noted that the company has not yet decided to develop these projects. 3. As per the Company’s estimate, subject to the approval of urban scheme by Dusseldorf municipality

Land in Grafenberg1 * Rezoning / Planning stages

Aachen2 Land in Grafenberg 1,2 Grafental I- successful development track-record

• Development project in

a central location in Dusseldorf, with 850 residential units

• 602

residential units were sold to date for EUR 272 million.

• High

Developer’s profitability (32%)

• Increase of ca. 7% in

sales price from phase to phase

• Future Luxury project of
• ca. 100 residential units

adjacent to the Grafenberg forest

• The

approval

• f

the urban development scheme is expected until Q4/2017 and construction is expected to commence in H1/20183.

Grafental II

• Land designated

for offices in advanced stages

• f

converting the urban development scheme to residential (potential for 650 residential units) adjacent to Granfental I project.

• Ca. 300 residential units (out
• f the 650) will be approved

for construction in Q4/2017 and the balance will be approved for construction by the end of 20183

• Rezoning

to residential and construction

• f

ca. 300 residential units (combination

• f

town houses and garden/roof apartments)

• The

approval

• f

the urban development scheme is expected until Q4/2017 and construction is expected to commence in H1/2018.

Old Factory to be demolished

Residential Development in Düsseldorf – Highly Experienced Platform For Continued Growth

15

Highly experienced staff

Skilled team with decades of experience in planning, development and sales of residential units in Dusseldorf and the surrounding area. 3 2 1

Attractive Locations

Central locations within the city, in upper class neighborhoods.

• 1. GrafentalI
• 2. GrafentalII

3 Grafenberg

Grafental I project

Revenues and Profitability per phase

3,585 3,937 4,152 4,571 4,940

• 1,000

2,000 3,000 4,000 5,000 6,000

מל הריכמ ריחמ" ר(וריאב)

א'ב '1ב '3ג'ד'

C

B 1 B 3

A C

69.3 98.3 107.5 113.8 137.8

• 20.0

40.0 60.0 80.0 100.0 120.0 140.0 160.0

ימזי חוור הרידל(אב 'וריא)

א'ב '1ב '3ג'ד'

B 3 B 1

A

Developer’s Profit per apartment (K, EUR) Selling Price per sqm (in EUR)

D D

C

NAV – Growth Drivers

1.Company share. 2.Based on new lettings performed in Q4/2016 without assuming ERV growth. 3.Rental yield in the market - average of multifamily sector in Germany according to Morgan Stanley, Credit Suisse and companies’ publications.

Portfolio book value – ca. EUR 565.5 million1

1 Company share,

2.CBRE, Q4/2016.

Comments Rental housing portfolio Commercial centers Residential development Significant contribution to economic NAV

√Successful track record in Düsseldorf (total sales of EUR 272 million to date). √ 100% sold units in completed stages. √ Very high marketing rate in phases under construction √ High developer’s profit (25%) and growing √ Continuous price increase (ca. 8% compared to the previous stage). Current status ERV Rental income (EUR million)1 € 37.5 € 47.8 Rental yield 6.63% 5.74%3 Sensitivity analysis Rental income (EUR million)1 € 37.5 (current rental income) €47.82 (ERV) Rental yield 6.25% 5.50% 4.75% 6.25% 5.50% 4.75% Implied value (EUR million)1 € 600 € 681 € 789 € 765 € 870 € 1,007 Current status ERV NOI (EUR million)1 € 22.2 € 24.3 NOI yield 6.11% 5.75%2

Portfolio book value– ca. EUR 362.8 million1

Sensitivity analysis NOI (EUR million)1 € 22.2 (current rental income) € 24.3 (ERV) NOI yield 6.00% 5.75% 5.50% 6.00% 5.75% 5.50% Implied value (EUR million)1 € 369 € 385 € 403 € 405 € 423 € 442 Multifamily Retail centres Residential development

EPRA NAV (as of the FS reports signing date) €538.2M Market Cap (23.3.17) €603M

Sensitivity analyses – discounted profit1,2,3 post tax (the company share, MEUR) Annual growth rate in sales price Discount rate 4% 7% 10% 8%

€97.1 €124.7 €154.8

9%

€93.3 €119.6 €148.3

10%

€89.8 €114.8 €142.1

11%

€86.4 €110.3 €136.4

Project in preliminary planning stages Project name Aachen Company share 50% Land plot size 5.3 hectares Number of planned residential units 280 - 300

• The premium in relation to the EPRA NAV of the

public companies reflect an implied rental yield of 5.6%.

• The rental growth rate in L-f-l properties is

expected to close the gap between the current rent and the ERV within the next five years, assuming that the ERV ceases to grow.

• Morgan Stanley forecasts a further yield

compression of 0.5% - 1% during the upcoming year.

• The premium in relation to the EPRA NAV of the

public companies reflect an implied NOI yield of 6.09%.

• The company progresses ca. EUR 50M projects
• f expansion and modernization of retail spaces

in some of the properties (annual ROI of 9%).

16

1.Excluding apartments sold and the profits of which are not yet been realized in the books.

• 2. Including projects that the Company has not yet decided to develop. Excluding income and profit expected from a project in preliminary stages.
• 3. The period of time assumed in calculating the completion of the projects: Grafental – 7 years, Grafenberg – 6 years.
• Excl. profit

from:

*Market Cap net of cash (including proceeds from capital issuance) and net of Land Inventory for development activity

FFO / Growth Drivers (the company share, EUR in million)

Q3/16 in annual terms

17

Key Value Drivers Multifamily

• A

portfolio positioned for a significant ERV growth (macro and micro locations / assets quality)

• Privatization in the mid-long term

Retail Parks

• Development and redevelopment plans
• f
• ca. EUR 50M (annual ROI of 9%) in

existing properties.

• Rezoning potential (Bavaria, Dusseldorf,

Cologne, Frankfurt)

FFO €32.1

+ €4.8

FFO

+ €10.3

Financing costs

€32.1

Multifamily

FFO

Rental Income

Adjusted FFO FFO €47.2 €32.1 FFO

Income Producing

Market Cap*/Adjusted FFO = 7.3 X

Adjustments to ERV/ Market Prices

Market Cap*/FFO

=

10.8 X

Residential Development

€ 0 € 20 € 40 € 60 € 80 € 100 € 120 € 140 תועקרק יאלמ יופצ חוור(סמ יוכינב1)

€121 €82

EUR in millions, the Company’s share

High Embedded Value

Land Inventory Expected profit (net of tax)

Key Value Drivers Residential Development

• Continuous increase in demand for apartments

and accordingly continuous increase in sales prices in stages under construction

• Capacity enabling to double the development

activity in existing projects

• New projects are already under planning

Appendices

18

19

• 1. Market interest – recent refinancing interest of senior loans / weighted average bonds

YTM at which the bonds are traded

• 2. Net debt to GAV
• 3. Based on the last quarter .

Financial Position Financial Debt Structure – 31.12.16 Bank Loans Bonds Total Outstanding balance in EUR €591.3 €147.9 €739.2 million Average duration 4.1 years 4.2 years 4.1 years Average interest 1.8% 3.9% 2.2% Market interest1 1.5% 1.7% 1.5% Rating and Leverage Ratios – 31.12.16 Credit rating S&P Maalot ilAA- LTV2 51.3% Debt to Capt, net 55.2% EPRA NAV LTV 51.5% EBITDA to interest (excl. contribution 3.2X from Grafental)3

Development of Equity Attributable to BCP’s shareholders - in EUR million

Due to units already sold but not yet realized in the P&L Refinancing based

• n market interest

implies additional

• ca. EUR 4.8 million

to the annual FFO

Key Financial Data – Balance Sheet

הנפקהלאחר 'דצמ-לציבור 2010

Balance Sheet Summary as of 31.12.16- in EUR million

Income producing properties € 1,089.9 Investment Property- real estate rights € 101.9 Land Inventory for development(long-term and short-term) € 59.8 Cash and liquid balances € 91.5 Total assets € 1,374.0 Total debt € 739.2 Equity attributable to company’s shareholders € 419.2 Total Equity incl. non controlling interests € 520.1 EPRA NAV € 491.2

EPRA NAV (EUR million) 31.12.16 Equity attributable to company’s shareholders 419.2 Adding deferred taxes (less minority interest) 65.9 Excluding the fair value of financial derivatives, net (less minority interest) 0.3 Adding yet to be recognized profit from sold units in Phases B and C (the company share, net of taxes) 5.8 EPRA NAV 491.2

0.0 100.0 200.0 300.0 400.0 500.0 הקפנה רחאל רוביצל-מצד ' 2010 31/12/201131/12/201231/12/201331/12/201431/12/201531/12/2016

153.6187.2209.6237.3 279.6 345.5 419.218% CAGR Post IPO – Dec 2010

Key Financial Data - Profit and Loss

20

*Incl. income from management fees that is not consolidated in the the financial statements. ** Adjusted NOI - NOI under the assumption that the properties are leased at market prices.

• Excl. contribution from the

Grafental project. Average interest of 1.8% p.a. on bank loans.

• Excl. contribution from the

Grafental project. In the fourth quarter of 2016 most of the units of phase B3 were handed

• ver and the balance in the

first quarter of 2017.

Profit and Loss - in EUR thousand

2016 2015 Rental Income € 72,111 € 66,415 Profit from condo sale € 15,398 € 13,735 NOI* € 64,133 € 60,871 NOI yield 5.9% 6.5% Adjusted NOI yield** 7.2% 7.6% EBITDA € 56,023 € 51,688 Real estate revaluation € 80,459 € 44,256 % of real estate revaluation in relation to the total investment property 7.4% 4.5% Cash flow interest € 18,375 € 19,264 FFO I € 29,286 € 24,272 EBITDA to interest (excluding the contribution from Grafental) 3.1x 2.7x

Grafental

• Ca. EUR 13 million profit from already sold apartments is not

yet recognized in the P&L

PaseB1

Grafental 1 – sales and profitability data

Phase A Phase B1 Phase B2 Phase B3 Phase C Phase D (in planning)

number

• f

residential units 202 118 79 apartments + 107 109 119 + 700 m2 commercial Number

• f

underground parking spaces 244 130 101 121 125 125 Built area 30k m2 18k m2 11k m2 16k m2 16k m2 18k m2 Sold units (%) 202 118 79 107 96 n.r. 100% 100% 100% 100% 89% n.r. Total sales as

• f

March 2017 € 80.9m € 56.4m € 30.0m € 55.1m € 50.0m n.r. Average sales price per sq.m € 3,585 € 3,937 € 3,523 € 4,1 52 € 4, 571 € 4,940 Commencement

• f

marketing 5/2012 9/2013 7/2013 1/2015 5/2016 4/2017 Commencement

• f

construction 7/2012 4/2014 4/2014 4/2015 4/2016 4/2017 Units hand-over date Done Done Done Q4/2016- Q 1/2017 Q4/2017 Q4/2018 Expected Development profit € 14.0m € 11.6m € 6.3m € 11.5m € 12.4m € 16.4m Developer's profitability 21% 26% 26% 26% 28% 32% Development profit realized in the reports (cumulative) € 14.0m € 11.6m € 6.3m € 9.6m

• n.r

Free cash flow € 31m € 19m € 14m € 21m € 21m € 24.4m

Change 2015 2016

In K, EUR

9% 66,415 72,111 Rental income 20% 63,439 76,276 Net income attributable to BCP’s shareholders 23% 26,152 32,132 FFO – (Q4 annualized) 21% 345,523 419,173 Total Equity attributable to BCP’s shareholders 19% 411,500 491,200 EPRA NAV

Resultsfor 2016

21

Q4/2016 Results - PerSector

Multifamily

Q4/2016 Q4/2015 Occupancy rate 96% 96%

• Avg. rent psm

€ 5.74 € 5.34

• Avg. rent psm in new

Lettings € 7.10 € 6.38 Rent growth – L-f- l1 5.4% 4.5% Rent growth in new leases – L-f-l1 9.5% 10.0% Upside to market rent2 28% 24%

22

Acceleration in L-f-L rental growth rate and continued growth in new leases.

Retail Parks

Q4/2016 Q4/2015 Occupancy Rate 95% 96% Rent growth- L-f-l1 3.4% New leases and lease renewal NA NA Increase in rental per square meter in new leases NA NA Acceleration in the L-f-l rental growth rate

Residential Development

2016 2015 Sale of apartments (#) 115 86

• Avg. sale price psm

€4,571 €4,152 Acceleration in the Grafental project sale price growth rate

• 1. Compared to the corresponding period last year excl. new acquisitions.
• 2. Fully occupied.