COMPANY PRESENTATION August 2020 EXPERIENCED MANAGEMENT TEAM - - PowerPoint PPT Presentation

COMPANY PRESENTATION

August 2020

EXPERIENCED MANAGEMENT TEAM

2

 Certified business administrator  Approximately 20 years of experience in senior positions in the real estate industry

Chi hief Inv nves estm tment t Off Offic icer (CIO)

Johannes s v. Mutius

Chi hief Ex Exec ecutiv tive e Off Offic icer (CEO)

Sonja Wärntges

 Certified economist  Excellent management track record, various senior positions in prestigious companies  Long-term experience in the real estate industry

Chi hief Capita ital l Ma Markets ts Off Offic icer (CCMO)

Patrick Weiden

 Certified business administrator and International Investment Analyst (CIIA)  Capital market expert with a proven track record and 20 years of investment banking experience

Chie hief Ins nsti tituti tutional Bus usin iness Offic fficer (CIBO)

Christ stian Bock

 Certified economic geographer, Master in Real Estate Finance & Investment  More than 15 years experience in management positions in the real estate industry

GERMANY-FOCUSED COMMERCIAL REAL ESTATE PORTFOLIO COMBINED WITH STRONG REAL ESTATE PLATFORM

3

Rental income Sales profits Management Fees Transaction Fees Development Fees Equity Returns

3

 Attractive and diversified real estate products for institutional investors providing steady income  Provides all real estate services (transaction, asset, property and development management, sourcing of debt capital) and DIC

• ccasionally acts as co-investor

 89% office, 6% retail and 5% other1  H1 2020: Real Estate Management Fees EUR 42.1 million and Profit of Associates EUR 6.3 million  Directly held portfolio of high quality assets in top locations  Steady income from core/core plus and value-add properties  63% office, 17% mixed-use, 15% retail, 2% logistics, 3% other1  H1 2020: Gross Rental Income EUR 51.4 million

Commercial Portfolio

(Balance Sheet Investments)

Institutional Business

(Managed Accounts) TOTAL EUR 8.5 billion AuM1

Property Management and Development Transactions Highly resilient business model with diversified income streams

1 Based on AuM as of 30.06.2020

• c. EUR 6.6 billion AuM (94 assets)
• c. EUR 1.9 billion AuM (93 assets)

HIGHLY COMPLEMENTARY DUAL BUSINESS MODEL

Leveraging the platform for stronger cash flow with lower risk profile

4

1 As of 30.06.2020

Benefits of the combined business model…

1

Broader market access and insight throughout Germany ► 7 regional offices with more than 150 people on the ground

…on transaction / asset management level

2 3

Critical mass with purchasing power towards contractors and in transaction processes ►EUR 2 billion transaction volume in 2019 ► EUR 8.5 billion AuM1 ► 187 managed assets1 ► 2.2 million sqm gross lease area1 Broader scope of investment

• pportunities

► investments from EUR 10 million to EUR 500 million ► from Core to Opportunistic

1

Operating cost and capacity allocation synergies ► one headquarter, one transaction team, one development team, regional property management for both segments

…on company level

2 3

Top-line synergies ► Institutional Business deal generation through low risk warehousing and financing capabilities ► tenant, asset & transaction management capabilities as USP, also in intensive market situations Income stream diversification ► Balanced and recurring income streams from both segments (c. 50% / 50% FFO split) North East West Central South 7 Offices: Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt, Mannheim, Munich

SUPERIOR PLATFORM TRACK RECORD

5

Transaction volume 2019 exceeded EUR 2 billion for the first time, ongoing AuM growth in both segments

 Our transaction teams surpassed the record figure for 2018 (EUR 1.2 billion) with a transaction volume of EUR 2.2 billion in 2019  Total assets under management grew in every year; Commercial Portfolio growth renewed with focus on portfolio quality (after optimisation phase ended in 2017)

Transaction volume

in EUR million, notarised volume

Assets under management

in EUR billion1

1 until 2018 Institutional Business volume as sum of the volumes of the old segments Funds and Other Investments

HIGHLY DIVERSIFIED EUR 1.9 BILLION COMMERCIAL PORTFOLIO

6

Predominantly Core assets with healthy mix of Top 7 and small to mid-sized cities

 EUR 1.9 billion Commercial Portfolio with 93 assets across Germany

(pro forma EUR 2.0 billion incl. 2 acquisitions with transfer in Q3 2020)

 Stable cash flow profile with EUR 97.2 million annualised rental income

representing current gross yield of 5.1%

 Diversified portfolio by asset class and location, focus on Top 7 cities as

well as strong metropolitan areas (“ABBA”)

 Strong tenant base with long WALT of 6.3 years and no dependency from

single tenant or individual property and 22% public tenants

 Positive like-for-like growth of 2% on average 2016-2019  EPRA vacancy rate reduced to 7.5% as per 30 June 2020

1 2 4 5 6 3

Regional structure of portfolio 1 Tenant structure1

1 Based on annualised rental income as of 30.06.2020

Top 7 40% Small - mid sized cities 60%

Retail / Logistics 24% Public sector 22% Service providers 16% Industry / disposal / utilities 9% IT / telco / multimedia 8% Banking / insurance 6% Hotel / restaurants 6% Other 5% Education 4%

COMMERCIAL PORTFOLIO STRATEGY

7

Focus on office complemented by properties with potential from other asset classes

Status quo and strategic outlook  Office  Largest asset class, roughly 40% located in Top 7  Acquisition focus on office properties and tenants with strong credit profile, as recently shown  Mixed-use  Combines various types of use (office, retail, hotel and storage) under one roof  Attractive independent asset class in the context

• f the “post-Covid city”

 Retail  Focus on stable food retail  Logistics  Smallest sub-portfolio with growth strategy for further investments  Other properties  Mainly residential properties and land plots

Commercial Portfolio by Asset class

VALUABLE CORE ASSET ADDITIONS TO OUR ASSET BASE

8

New acquisitions for the Commercial Portfolio

TOP TENANTS IN THE COMMERCIAL PORTFOLIO

9

Diversified tenant base and long durability of contracts

 Roughly 800 tenants with nearly 900 rental contracts in the Commercial Portfolio  Top Tenants with long WALT of 9.3 years, thereof c. 81% are office tenants  Roughly 45% of annualised rental income of top tenants stem from public sector tenants  High creditworthy new tenants SAP and ING -DiBa

Overview of top tenants (2% or more of total rental income)*/**

* including new rental agreements with Galeria Kaufhof of July/August 2020 (pro forma) ** tenants with 2% or more of pro-forma annualised rental income Commercial Portfolio (EUR 99.8 million incl. new contracts for Kaufhof and new acquisitions)

HISTORICAL DEVELOPMENT OF THE COMMERCIAL PORTFOLIO

10

Strong development across all KPIs

142 113 101 93 2016 2017 2018 2019

…reflected in rising annualised rental income since 2017… EUR million Average value per property increased since 2017 due to portfolio optimization… Number of assets

106.3 95.5 97.6 101.8 2016 2017 2018 2019

…and significant increase of WALT (including attractive new acquisitions) WALT (Years)

11.8% 9.5% 7.2% 6.5% 2016 2017 2018 2019 4.4 5.1 5.8 6.0 2016 2017 2018 2019

Positive L-f-l rental growth each year… L-f-l rental growth %

1.4% 1.4% 2.7% 2.0% 2016 2017 2018 2019

…and again growing portfolio Fair value of investment properties (EUR million)

1,948 1,639 1,697 1,900 2016 2017 2018 2019 20.4 .4 16.8 .8 14.5 .5 13.7 .7 Average value per property (EUR million) –5.3pp +1.6 yrs +3.2% CAGR +15.9%

EPRA vacancy rate in %

INSTITUTIONAL BUSINESS SEGMENT

11

High loyalty from institutional investor base

Investment partners2  Our Institutional Business segment is managed by our subsidiary GEG, which had Assets under Management totalling EUR 6.6 billion as of 30 June 2020  Tailored investment strategies across the yield curve, incl.:  Repositioning of landmark assets with own development expertise  Assets with manage-to-core approach  DIC / GEG seen with proven track record for commercial properties in the German market  Committed equity of more than EUR 500 million in place for additional investments, and no investor has withdrawn equity during Covid-19

1 Percentages based on Assets under Management as of 30.06.2020 of EUR 6.6 billion; 2 Percentages based on committed equity

Deal structures1

INSTITUTIONAL BUSINESS SEGMENT

12

Individual investment strategies with strong focus on offices and Core/Core plus risk profile

AuM by asset class

in EUR million

AuM by risk profile

in EUR million

 Office properties representing 89% of assets under management  Current AuM with focus on Core office assets (as well as infrastructure use) – high demand among investors, even more so in turbulent and uncertain times  87% of AuM with risk profile Core/Core plus  Due to further push down of interest rates for longer, commercial real estate continues to offer relatively more attractive earnings prospects vs. alternative investments  Through our real estate expertise, on-site competence and active letting management we are able to realise additional values

IMPLEMENTATION OF THE INVESTMENT STRATEGY

13

Typical Institutional Business investment case

Acquisition

 Execution of the respective, individual property strategy for the realisation of value enhancement potential  Optimised properties are managed and a stable cash flow is ensured  (Optionally, some of the properties in holding phase can be sold and the capital released reinvested in the investment vehicle)

Holding

Asset/property management/ development fee (recurring) Promote/performance fee (one time, success based) Acquisition and setup fee (one time, not success based - recurring)

Management fee elements

 Acquisition financed with committed equity and bank financing at 45% LTV on purchase price  Occasionally warehousing of selected assets as an accelerator of funds

13 vehicles in investment phase (AuM EUR 3.1 billion) 16 vehicles in holding phase (AuM EUR 3.5 billion)

Exi xit fee (one time, not success based - recurring)

One-time (success based) Recurring (not success based)

 Generally, sales period begins after approx. 8-10 years  Possible reinvestment of proceeds into new investment vehicles

Sale

HIGHLY PROFITABLE INVESTMENT MANAGEMENT BUSINESS

14

1.2 1.5 2.8 3.9 5.7 2015 2016 2017 2018 2019

in EUR billion in EUR million

CAGR c.47.6% 96.6 99.4 129.9 155.6 130.7 2015 2016 2017 2018 2019

Sale of a co- investment

Institutional Business volume (AuM)1 Market value of equity investments in Institutional Business

Steadily increasing income generation from Institutional Business, strong visibility across different recurring income streams

Income from Institutional Business

in EUR million

CAGR

• c. 52.4%

8.3 21.2 23.5 39.2 68.3 2.7 2.4 2.7 5.6 5.4 10.3 10.0 21.8 31.2 5.6 8.5 10.8 11.8 31.7 2015 2016 2017 2018 2019 Share of profit of associates without project developments and sales Transaction and performance fees Asset management, property management and development fees

1 until 2018 Institutional Business volume as sum of the volumes of the old segments Funds and Other Investments

FINANCIAL STRUCTURE

15

No maturities in 2020 – high level of cash available to fund further growth

 The weighted average term of loans and borrowings stood at 3.9 years (31 December 2019: 3.9 years)  The average interest rate of loans and borrowings stood at 2.1 % on 30 June 2020  The interest cover ratio (ICR, the ratio

• f EBITDA to net interest result)

remained at a very high level of 473 % (31 December 2019: 509 %)  The LTV ratio (adjusted for warehousing) fell by 350 bp to 44.3 %, the adjusted LTV incl. fair value of Institutional Business stood at 38.9%  No Maturities in 2020: Refinancing of bank debt of c. EUR 97 million in Q2  New financing for two acquisitions with c. EUR 58 million secured at 0.85% cost of debt and 7-year tenor  Cash and cash equivalents as of 30 June2020 at EUR 417 million

LTV1 / Adjusted LTV2 (%) Average interest rate (%)

• 160bp

Maturities of loans and borrowings3

(as of 30.06.20)

1 The ratio of total financial debt, corporate bonds and liabilities to related parties minus cash in banks on the one hand and the fair value of investment

property, equity investments and receivables from related parties and intangible assets, e.g. goodwill on the other hand, adjusted for warehousing.

2 including fair value of Institutional Business 3 nominal values as of 30 June 2020

16

FINANCIAL POLICY AND MID-TERM GROWTH TARGET

 Further growth is planned in both segments Commercial Portfolio and Institutional Business – with a mid-term goal of Assets under Management of c. EUR 10 billion  Strategic mid-term target of maintaining a 50:50 FFO balance between the Commercial Portfolio and the institutional Business  Target LTV ratio in the 45% area, mixed structure of bank debt and capital market debt Targeted Growth of Assets under Management and FFO Dividend track record

Regular dividend payment per share in EUR / payout ratio as % of FFO

17

HIGHLIGHTS H1 2020

DIC ASSET WITH RESILIENT AND WELL-DIVERSIFIED BUSINESS MODEL

18

Limited impact from the Covid-19 pandemic

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE H1 2020

19

Strong second quarter – increased trend towards renewals

Letting structure

in sqm

Lease maturity

Annualised rental income in %

Contracted rental income

Annualised rental income in EUR million

Top lettings

 Letting performance increased by 55% year-on-year, strong second quarter despite Covid-19 lockdown  Annualised contracted rental income of EUR 16.3 million secured  Increasing trend towards lease extensions  Rental levels of renewed contracts in H1 2020 in both segments on average 4.9% higher  Several large-volume leases exceeding 10,000 sqm signed  2020 lease expiry volume remaining was reduced to 1.1%. 74.4 % of leases expire in 2024

• r later

DIVERSIFIED INCOME MITIGATES VOLATILITY FROM EXOGENOUS SHOCKS

20

Income development H1 2020

Stable development of rental income…

in EUR million

... plus strong growth of real estate management fees

in EUR million

In addition, sales profit and...

in EUR million

...profit of associates supplement main income streams

in EUR million

FUNDS FROM OPERATIONS INCREASED BY 18%

21

Growing real estate platform in Institutional business and optimised financial structure leads to higher FFO

Main differences year-over-year:  Increased valuation allowances for rent receivables of EUR 3.1 million for unpaid rents in the period April to June 2020 lowered net rental income  Growth of platform (increase in number of vehicles and AuM) as well as successful transactions as drivers of fee growth  Reduction due to the discontinuation of TLG dividend in 2020 (FFO contribution of EUR 10.0 million in H1 2019)  Increased OPEX mainly due to full consolidation of GEG for six months in H1 2020  Improvement of financial structure with reduced interests (repayment

• f bond 14/19 in H2 2019, issue
• f promissory note with

significantly lower coupon)

FFO-Bridge

in EUR million 3 5 4 2 1

SEGMENT REPORTING H1 2020

22

Institutional Business delivering consistently growing FFO contribution

 Main drivers Commercial Portfolio:  Gross rental income increased by 3% y-o-y, mainly due to acquisitions  Lower net rental income due to increased valuation allowances for rent receivables not paid in period April to June 2020 due to Covid-19 regulation  OPEX increased by EUR 1 million mainly due to administrative costs from increased legal and consulting services as a consequence of Covid-19  Main drivers Institutional Business:  Real estate management fees were boosted by significant increase in AuM from anorganic growth and new vehicles structured and launched  Share of the profit of associates increased from EUR 2.8 million to EUR 6.3 million. In 2019 DIC received additional EUR 13.0 million dividend income from the TLG participation (sold in 2019)  OPEX were mainly influenced by the anorganic growth in 2019 and full consolidation of GEG for six months

ADJUSTED NAV CALCULATION PER 30.06.20

23



Book value of investment properties (Commercial Property segment)



Goodwill related to acquisition of GEG



Service agreements are intangible assets recognised as within the scope of the purchase price allocation following the acquisition of GEG



Carrying amount of receivables from related parties



Fair value adjustment for investment properties as well as equity investments in associates and other investments, based

• n an audited valuation (cost accounting)1



Adjustments to deferred tax on investment properties in IFRS financial statements and fair value of financial instruments



Fair value of Institutional Business based

• n audited valuation

1

1 The fair values calculated (net value after deducting transaction costs) are based entirely on the findings of the independent valuers contracted for this purpose, Cushman & Wakefield, Jones Lang LaSalle and

ENA Experts, who have undertaken a valuation in accordance with internationally recognised standards

 Adjusted NAV of EUR 22.07 per share reflects the full value of Institutional Business in the amount of EUR 7.04 per share  EUR 2.45 has already been included in the EPRA-NAV calculation via the goodwill of GEG and other intangible assets/liabilities

in EURm 30 30.06.2020 As Assets ts (in EUR million) (in EUR per share) Book value of investment properties 1,625.2 20.55 Real estate assets acc. to IFRS 5 96.4 1.22 Equity investments (indirect property) 73.1 0.92 Goodwill 177.9 2.25 Service agreements 43.9 0.55 Carrying amount of receivables from related parties 135.2 1.71 Cash and cash equivalents 416.6 5.27 Other assets 157.2 1.99 Tota tal assets ts 2, 2,725.5 34 34.46 Deduct t Total liabil ilitie ities (1,6 1,628.3) (20 20.59) Tota tal equity ty 1, 1,097.2 13 13.87 Deduct Minorities (4.1) (0.05) Total shareholder’s equity (book value) 1, 1,093.1 13. 13.82 Fair value adjustment of investment properties and equity investments 283.6 3.59 Other adjustments 5.7 0.07 EP EPRA-NAV 1, 1,382.4 17 17.48 Deduct Goodwill and other intangible assets/liabilities (194.3) (2.45) Fair value of Institutional Business 557.0 7.04 Ad Adjuste ted NAV AV 1, 1,745.1 22 22.07

1 3 5 4 2 7 6

5 6 4 2 7 3

24

FORECAST

Forecast update 2020 confirmed after H1 2020

25

OUR COMMITMENT TO ESG

ESG Milestones and future developments

26

DIC ASSET AG AT A GLANCE

APPENDIX

ORGANIZATIONAL STRUCTURE – FULLY INTEGRATED PLATFORM

27

Fully integrated platform with 246 highly skilled employees (as of 30 June 2020)

Investment  Acquisitions & Sales  Due Diligence  Business plan modelling  Legal structuring Portfolio Management  Portfolio analysis  Portfolio strategy  Portfolio controlling Investment Vehicles Management  Structuring new vehicles  Implementing investment structures  Distribution  Investor liaison Real Estate Management  Property accounting  Quality control  Legal (rental contract law)  Letting

Business segments DIC Asset AG Management Board Group Management

 Corporate Development & Strategy  Communication & Marketing  Investor Relations  Finance, Accounting, Treasury & Controlling  Administration Commercial Portfolio (Balance sheet investments) Institutional Business (Managed accounts)

Asset & Property Management

Seven own nationwide operating local offices with regional heads External sources: Facility Management Berlin Düsseldorf Frankfurt Hamburg Munich Technical Property Management Cologne Mannheim

59 37 150 Employees:

Development  Planning of developments and refurbishments  Key contact to assign construction

• S. Wärntges (CEO/CFO)
• C. Bock (CIBO)
• P. Weiden (CCMO)
• J. von Mutius (CIO)

SUPERVISORY BOARD

28

Independent, as defined by Deutscher Corporate Governance Kodex (DCGK) as of 7 February 2017

Highly reputable supervisory board members with long-term real estate expertise

Klaus-Jürgen Sontowski

Vice Chairman of the Supervisory Board Entrepreneur, Managing Partner of Sontowski & Partner GmbH

• Prof. Dr. Gerhard Schmidt

Chairman of the Supervisory Board Partner of the legal firm Weil, Gotshal & Manges LLP

Eberhard Vetter

Director of Capital Investments at the RAG-Stiftung

• Prof. Dr. Ulrich Reuter

Governor of the district of Aschaffenburg

René Zahnd

Chief Executive Officer of Swiss Prime Site AG

Michael Zahn

Chairman of the Management Board & CEO of Deutsche Wohnen

OUR FULLY INTEGRATED SERVICE MODEL

29

In-house competence for provision of full suite of value-adding services Acquisition Value enhancement & preservation Exit

Corporate functions

Investment Financing Portfolio/Fund Management Asset Management Property Management Investment Management

 Deal sourcing &

structuring

 Due diligence  Off-market deals

and bidding procedures

 Contract

negotiation

 Closure  Review of

financing structures

 Bank selection,

tendering, benchmarking

 Contract

negotiation & closure

 Fulfilment of the

pay-out condition

 Administration &

reporting

 Portfolio

management

 Structuring of

investment vehicles

 Investor

reporting

 Performance

analysis

 Risk &

compliance

 Property

strategies

 Business plans  Representation

• f the owner’s

interests

 Increase in rental

income

 Optimization of

running costs

 Refurbishments  Control of

property management

 Condition

control of the property

 Inspections of

technical installations

 Repairs  Object

accounting & service charge settlement

 Contract

negotiation

 Closure

Development

 Development

and refurbishment know-how

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE (1/2)

30

Assets under Management rose to EUR 8.5 billion – Commercial Portfolio to grow above EUR 2 billion

 Assets under management rose by 20 % year-on-year to EUR 8.5 billion, distributed across 187 properties with rental space of around 2.2 million sqm  Notarised transaction volume in H1 2020 amounted to EUR 495 million  Successful transfer of ownership of Infinity Office in Düsseldorf as part of a club deal in April 2020. In H1 2020, the transfer of ownership for Stadthaus Cologne and the BKA property in Wiesbaden also were concluded  With transfer of two acquisitions in Hanover and Frankfurt/Eschborn worth EUR 116 million in Q3 2020, the market value of the Commercial Portfolio will grow above EUR 2 billion

Portfolio by segment Notarised transactions in 2020

in EUR million

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE (2/2)

31

Active management: refurbishment, repositioning and sale of Frankfurter Strasse property in Wiesbaden

COMMERCIAL PORTFOLIO

32

Constant focus on portfolio quality improvements

 As of 30 June 2020, the Commercial Portfolio comprised 93 properties with a market value of approx. EUR 1.9 billion and rental space of 837,200 sqm  EPRA vacancy rate reduced to 7.5% (30 June 2019: 7.8 %)  L-f-l rental growth of -0.6%, mainly driven by retail properties and modified rental agreements due to Covid-19  Annualised rental income was lower at EUR 97.2 million (H1 2019: EUR 103 million), mainly driven by prior- year transactions  WALT increased year-on-year from 6.2 years to 6.3 years

EPRA Vacancy rate

in %

Average rent

in EUR/sqm

Development of Commercial Portfolio WALT

In years

NEW CONTRACTS SIGNED WITH RETAIL TENANT GALERIA KAUFHOF

33

Long-term renewals for two properties – one property to be repositioned

34

Club deals Pool funds Separate accounts

 Investments for institutional investment partners in real estate in Germany's top 10 markets for commercial real estate, either in single-asset or portfolio transactions  GEG secures property(ies) in

• rder to mitigate the transaction

uncertainty; the investment partners then join  Pool funds specialized in regions

• r asset classes with a proven

track record  Funds legally structured as special funds under the German or Luxembourg regime  Joint investments with investment partners, co-investment by DIC  Strong individual property size  Typically a portfolio of 7-8 properties acquired over time  We initiate joint investment strategies for selected investment partners within the framework of individual mandates  The investment strategies may not interfere with the existing pool funds and club deals  Individual property sizes  Typically 2-3 properties with 2-3 institutional investors  Individual property EUR 20-60 million  Typically a portfolio of 7-8 properties acquired over time  Individual property sizes  Typically individual property; no portfolio investments

EUR 1.1 billion EUR 2.9 billion EUR R 2.6 billion =AuM (30.06.2020)

DEAL STRUCTURES TAILORED TO INVESTOR NEEDS

35

DIC office location Asset location

Munich, Junges Quartier Obersendling:

Type: Infrastructure fund

Dusseldorf, CABO:

Type: Manage- to-core (value)

S tadthaus, Cologne:

Type: Club deal

Dortmund HCC:

Type: Manage- to-core (value)

Frankfurt, IBC Campus:

Type: Club deal

Hamburg, Opera Offices:

Type: Fee development (finished)

Berlin, Pressehaus Alexanderplatz:

Type: Individual mandate

Frankfurt, Japan Center:

Type: Individual mandate

Neuss, Police Training Center:

Type: Infrastructure fund

Dusseldorf, Business Campus am Park:

Type: Club deal

Cologne, Triforum:

Type: Club deal

Mainz, DB Cargo- Headquarter:

Type: Infrastructure

Frankfurt, WINX:

Type: Fee development

Munich, S apporo- bogen:

Type: Club deal

Munich, Pasing Central:

Type: Opportunistic

Frankfurt, Garden Tower:

Type: Individual mandate

Frankfurt, RIVERPARK Tower & S uites:

Type: Individual mandate (under refurbishment)

Frankfurt, Global Tower:

Type: Individual mandate (under refurbishment)

Frankfurt, S chillerportal:

Type: Individual mandate

Frankfurt, Villa Kennedy:

Type: Individual mandate

Frankfurt, Eurotheum:

Type: Individual mandate

Munich Frankfurt Dusseldorf Hamburg Berlin Cologne

Strong focus on Core assets in Top 7 Locations

INSTITUTIONAL BUSINESS: PORTFOLIO SPOTLIGHT

MANAGEMENT FEE ELEMENTS FROM INSTITUTIONAL BUSINESS (I)

36

Types of fees

Asset / property management Development Sales fees Promote Performance fees

 Warehousing income  Set up fees for new investment vehicles  Recurring fee income recognised as

percentage of AuM

 Repositioning of office and retail projects

recognized as percentage of construction cost

Recognition of fee income

 Transaction fee income recognised as

percentage of transaction volume

 Income recognized upon successful exit of

sale of the properties

 Fee payable when return hurdles of

investment vehicle are met or exceeded Asse sset ma management / pr property ma management / deve evelopment

Classification

Transa saction Transa saction Per erformance Real Estate investment lifecycle Investment/ property management Exit/ Realisation Sourcing/ acquisition

One-time (success based) Recurring (not success based)

Setup1 Asset / property management Development Sales fees

Source: Company information

1 Setup fee for new investment vehicles where DIC secure 1–2 properties as start assets for the investment vehicle

 Transaction fee income recognised as

percentage of transaction volume Acquisition

Strong base of recurring fee income

MANAGEMENT FEE ELEMENTS FROM INSTITUTIONAL BUSINESS (II)

37

Equity return from co-investments Equity return Return upside

 Regular equity return from own investment

in DIC investment vehicles (fixed return levels)

 Gain in value of equity stake in investment

vehicle following positive performance Recognition of equity return Eq Equity return Classification Dividend

One-time (success based) Recurring (not success based)

Eq Equity return

Equity returns - DIC participates alongside other investors in certain investment vehicles

INCOME STATEMENT H1 2020

38

Strong rise in income from Institutional Business lifts profit for the period

Mainly as a result of last year's acquisitions, the gross rental income increased by 3% to EUR 51.4 million (H1 2019: EUR 49.7 million) Income from real estate management more than doubled from EUR 17.5 million to EUR 42.1 million due to the significant increase in assets under management in the Institutional Business compared to the same period

• f the previous year, mainly based on new vehicles structured and

launched and anorganic growth in the Institutional Business in 2019 Operating expenses were strongly influenced by the anorganic growth of the Institutional Business in 2019, and to some extent by higher

• perating expenses in the Commercial Portfolio from mainly higher legal

and consulting fees due to Covid-19 Due to the measures implemented in the second half of 2019 to

• ptimize our financing structure with the repayment of the bond 14/19

with a coupon of 4.625% p.a. and a volume of EUR 175 million and the first issue of low-interest promissory notes (average 1.55% p.a. with a volume of EUR 180 million), the interest result increased by EUR 2.7 million to EUR -14.2 million (H1 2019: EUR -16.9 million) Consolidated net income increased in the first half 2020 by 10% to EUR 28.5 million (H1 2019: EUR 25.9 million). Due to the positive development of the FFO, we were able to achieve a positive result despite lower earnings from sales as well as increased depreciation and amortization

1 2 3 4 5

Balance sheet as of 30 June 2020 is mainly impacted by the capital increase in January 2020 (6,857,774 new shares at a price of EUR 16.00). Total assets increased by EUR 68.1 million compared to year-end 2019 Current assets increased by EUR 68.1 million, mostly due to the positive cash inflow from the capital increase (EUR 107.3 million net proceeds) Total equity increased by EUR 128.4 million, mostly due to the net proceeds

• f EUR 107.3 million from the capital increase on the one hand and the

consolidated profit for the period H1 2020 of EUR 28.5 million on the other hand Due to refinancing activities in H1 2020, we see a shift between non-current loans and borrowing and current loans and borrowings compared to year end 2019 Equity ratio increased by 380 bp compared to 31 December 2019, mostly as a result of the net proceeds from the capital increase in January 2020 and the profit for the period H1 2020

3 5 4 2 1

BALANCE SHEET PER 30.06.2020

39

Capital Increase strengthens Equity Base

LOAN-TO-VALUE CALCULATION PER 30.06.20

40



Book value of investment properties (Commercial Property segment)



Fair value of investment properties based on an audited valuation1



Fair value of equity investments (indirect property) including equity interest in associates and other investments



Goodwill related to acquisition of GEG



Service agreements are intangible assets recognised as within the scope of the purchase price allocation following the acquisition of GEG



Carrying amount of receivables from related parties



Fair value of Institutional Business based

• n audited valuation

1 2 5

1 The fair values calculated (net value after deducting transaction costs) are based entirely on the findings of the independent valuers contracted for this purpose, Cushman & Wakefield, Jones Lang LaSalle and

ENA Experts, who have undertaken a valuation in accordance with internationally recognised standards; 2 LTV excl. warehousing

6

 Adjusted fair value sums up to EUR 2.7 billion, accounting for fair value of Commercial Portfolio and Institutional Business segment  LTV (30.06.2020) of 44.3%2, reduced by 350 basis points compared to year-end 2019 after capital increase in January 2020  Adjusted LTV of 38.9%2 including fair value of Institutional Business segments

in EURm 30 30.06.2020 As Assets ts Book value of investment properties 1,625.2 Fair value adjustment 277.7 Fair r value of investm tment t prop

• perti

ties, total al1 1, 1,902.9 Fair value of equity investments (indirect property) 127.2 Goodwill 177.9 Service agreements 43.9 Carrying amount of receivables from related parties 135.2 Fair r value of assets ts (val alue) 2, 2,387.1 Deduct goodwill (177.9) Deduct service agreements (43.9) Add fair value of Institutional Business 557.0 Ad Adjuste ted fai air r value of assets ts (val alue) 2, 2,722.3 Li Liabiliti ties Non-current liabilities to banks 1.027.6 Current liabilities to banks 104.2 Related party liabilities 17.4 Corporate bond 325.6 Less cash and cash equivalents

• 416.6

Net t liab abiliti ties (loa

• an)

1, 1,058.2 LT LTV2 (=C/ =C/A) 44 44.3% Ad Adjuste ted LT LTV2 (=C/ =C/B) 38 38.9%

1 4 2 5

4 7

3 6 A B C

3

7

TOP 20 ASSETS IN COMMERCIAL PORTFOLIO*

41

As at 30.06.2020, by Market Value

* Top 20 list without non-strategic properties and properties earmarked for future repositioning activities;

** Undisclosed information for reasons of competition

Location Address Type of use Rental space (thsd. sqm) EPRA vacancy rate Annualised rental income (EUR million) Market value (EUR million) WALT (years) 1 Berlin

• Taubenstr. 7–9

Office 10.1 0.0% 4.3 120.5 4.6 2 Darmstadt

• Wilhelminenstr. 1–3

Office 25.7 0.0% 4.5 113.0 16.8 3 Düsseldorf Werdener Str. 4 Mixed-Use 29.4 4.2% 6.3 107.0 4.9 4 Halle Neustädter Passage 17 a–d Retail 30.7 0.0% 4.3 70.6 4.7 5 Frankfurt Insterburger Str. 7 Office 14.3 7.5% 5.5 68.3 2.2 6 Hamburg

• Marckmannstr. 129a–e

Office 23.4 0.0% ** 60.4 ** 7 Duisburg Steinsche Gasse 26 Office 12.6 0.0% 2.2 58.1 16.8 8 Leverkusen Horst-Henning-Platz 1 Office 13.4 0.0% ** 56.7 ** 9 Chemnitz Am Rathaus 1 Retail 26.9 0.0% ** 56.7 ** 10 Frankfurt

• Kaiserstr. 62–64

Mixed-Use 9.3 0.0% 1.9 56.5 11.8 11 Berlin-Mahlsdorf Landsberger Str. 225–241, 245–249, 252–255, 261–262 Mixed-Use 40.0 2.9% 3.0 56.1 3.7 12 Frankfurt Königsberger Str. 29 Office 12.7 0.0% 2.4 50.8 8.4 13 Wiesbaden Gustav-Stresemann-Ring 12–16 Office 26.1 45.1% 2.1 46.2 3.2 14 Karlsruhe Bahnhofplatz 12 Office 11.0 0.0% 1.9 45.0 9.7 15 Hamburg Kurt-Schumacher-Allee 2–6 Office 13.1 0.0% 1.6 41.2 7.3 16 Cologne Mathias-Brüggen-Str. 124–170 Mixed-Use 28.2 5.5% 2.1 40.5 3.4 17 Kronberg

• Westerbachstr. 28–32

Office 12.8 0.0% 2.1 34.5 4.2 18 Offenbach Berliner Str. 60 Office 12.8 0.0% ** 33.7 ** 19 Cologne Agrippinawerft 22+24 Office 8.4 0.0% 1.7 33.0 2.3 20 Mannheim Coblitzallee 1–7 Office 17.9 0.0% 2.2 32.7 8.1 Top 20 20properti erties 37 378.8 4. 4.0% 57.2 1, 1,181.5 7. 7.8 Other propert erties 45 458.4 12 12.0% 40.0 721.4 4. 4.2 Tota Total 83 837.2 7. 7.5% 97.2 1, 1,902.9 6. 6.3

VALUE CREATION THROUGH REPOSITIONING ACTIVITIES

42

EUR 76.7 million value creation from four finished projects between 2016–2020

04/16–12/19

• Market value old (12/15):

EUR 13.1 million

• CAPEX/TI: EUR 25.5 million
• Market value new (12/19):

EUR 56.6 million

• Value creation: EUR 18.0 million

12/17–12/19

• Market value old (12/17):

EUR 33.5 million

• CAPEX/TI: EUR 7.2 million
• Market value new (12/19):

EUR 50.8 million

• Value creation: EUR 10.1 million

11/17–04/20

• Market value old (12/17):

EUR 60.5 million

• CAPEX/TI: EUR 31.9 million
• Market value new (06/20):

EUR 113.0 million

• Value creation: EUR 20.6 million

01/19–01/20

• Market value old (12/18):

EUR 66.5 million

• CAPEX/TI: EUR 29.5 million
• Market value new (06/20):

EUR 124.0 million

• Value creation: EUR 28.0 million

Kaiserpassage Frankfurt (COP) Lighthouse Frankfurt (COP) Wilhelminenhaus Darmstadt (COP) BKA Wiesbaden (IB)

COP = Commercial Portfolio; IB = Institutional Business

• Restructuring and redesigning

the retail units/arcade, straightening the arcade passage, modernising the lightning concept and facade

• Transformation project –

repositioning the asset after former tenant had left, steady decrease of vacancy from ~80% to 0% in 2 years

• Complete renovation, energy

modernisation and structural alterations for handicap accessability; energy savings of around 40%

• Repositioning of 25,000 sqm

after former tenant moved out; refurbishment with fit-out of the highest security standards for new tenant BKA

WE KEEP YOU UP TO DATE

43

Peer Schlinkmann

Head of Investor Relations & Corporate Communications phone: +49 69 94 54 858-1492 fax: +49 69 94 54 858-9399 e-mail: ir@dic-asset.de

Maximilian Breuer, CFA

Investor Relations Manager phone: +49 69 94 54 858-1465 fax: +49 69 94 54 858-9399 e-mail: ir@dic-asset.de

Meet us at:

19.08.20 BHL German Conference 2020, virtual 20.08.20 HSBC European Real Estate Conference, virtual 03.09.20 Commerzbank Corporate Conference, Frankfurt 10.09.20 SRC Forum Financials & Real Estate 2020, Frankfurt 09/20 Berenberg/Goldman Sachs German Corporate Conference, Munich 09/20 Baader Investment Conference, virtual 01.10.20 Commerzbank German Real Estate Forum, London 28.10.20 Publication Quarterly Statement Q3 2020 11/20 Deutsches Eigenkapitalforum, virtual 11/20 DZ Bank Equity Conference 2020, Frankfurt 01.12. Berenberg European Conference, Pennyhill

Get in Contact More information: Follow us on:

DISCLAIMER

44

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• r its contents or otherwise arising in connection with this presentation.

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reasonable. UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION, DATA, VIEWS AND FORWARD-LOOKING STATEMENTS CONTAINED IN THIS COMPANY PRESENTATION ARE BASED ON INFORMATION, DATA AND FORECASTS AVAILABLE TO THE COMPANY AT THE TIME OF THE PUBLICATION OF THIS COMPANY PRESENTATION. THE COMPANY IS NOT OBLIGED TO UPDATE THIS COMPANY PRESENTATION UNDER RELEVANT LAWS AND THEREFORE WILL NOT UPDATE THIS COMPANY PRESENTATION WHATSOEVER. ALL INFORMATION AND DATA CONTAINED IN THIS COMPANY PRESENTATION ARE BASED ON INFORMATION AND DATA, WHICH WAS PREVIOUSLY PUBLISHED BY THE COMPANY IN CONNECTION WITH ITS CONTINUOUS REPORTING OBLIGATIONS UNDER RELEVANT FINANCIAL OR SECURITIES LAWS. Company presentation as of August 2020