COMPANY PRESENTATION August 2020
EXPERIENCED MANAGEMENT TEAM Christ stian Bock Johannes s v. Mutius Patrick Weiden Sonja Wärntges Chie hief Ins nsti tituti tutional Bus usin iness Offic fficer (CIBO) Chi hief Capita ital l Ma Markets ts Off Offic icer (CCMO) Chi hief Ex Exec ecutiv tive e Off Offic icer (CEO) Chi hief Inv nves estm tment t Off Offic icer (CIO) Certified business Certified economist Certified economic Certified business geographer, Master in administrator administrator and Excellent management Real Estate Finance & International Investment Approximately 20 years of track record, various Investment Analyst (CIIA) experience in senior senior positions in positions in the real estate prestigious companies More than 15 years Capital market expert with industry experience in a proven track record and Long-term experience in management positions in 20 years of investment the real estate industry the real estate industry banking experience 2
GERMANY-FOCUSED COMMERCIAL REAL ESTATE PORTFOLIO COMBINED WITH STRONG REAL ESTATE PLATFORM TOTAL EUR 8.5 billion AuM 1 c. EUR 1.9 billion AuM (93 assets) c. EUR 6.6 billion AuM (94 assets) Commercial Portfolio Institutional Business (Balance Sheet Investments) (Managed Accounts) Attractive and diversified real estate products for institutional investors providing steady income Directly held portfolio of high quality assets in top locations Provides all real estate services (transaction, asset, property and Steady income from core/core plus and value-add properties development management, sourcing of debt capital) and DIC occasionally acts as co-investor 63% office, 17% mixed-use, 15% retail, 2% logistics, 3% other 1 89% office, 6% retail and 5% other 1 H1 2020: Gross Rental Income EUR 51.4 million H1 2020: Real Estate Management Fees EUR 42.1 million and Profit of Associates EUR 6.3 million Property Management and Development Transactions Rental income Management Fees Development Fees Sales profits Transaction Fees Equity Returns Highly resilient business model with diversified income streams 1 Based on AuM as of 30.06.2020 3 3
HIGHLY COMPLEMENTARY DUAL BUSINESS MODEL Leveraging the platform for stronger cash flow with lower risk profile Benefits of the combined business model… …on transaction / asset management level …on company level Broader market access and insight Operating cost and capacity 1 1 throughout Germany allocation synergies ► 7 regional offices with more ► one headquarter, one transaction than 150 people on the ground team, one development team, North regional property management for Critical mass with purchasing power both segments East 2 towards contractors and in transaction processes West Top-line synergies ► EUR 2 billion transaction volume 2 ► Institutional Business deal Central in 2019 generation through low risk ► EUR 8.5 billion AuM 1 warehousing and financing capabilities South ► 187 managed assets 1 ► tenant, asset & transaction ► 2.2 million sqm gross lease area 1 management capabilities as USP, also in intensive market situations 3 Broader scope of investment 7 Offices: Hamburg, Berlin, 3 opportunities Düsseldorf, Cologne, Frankfurt, Income stream diversification ► investments from EUR 10 million Mannheim, Munich ► Balanced and recurring income to EUR 500 million streams from both segments ► from Core to Opportunistic (c. 50% / 50% FFO split) 1 As of 30.06.2020 4
SUPERIOR PLATFORM TRACK RECORD Transaction volume 2019 exceeded EUR 2 billion for the first time, ongoing AuM growth in both segments Transaction volume Assets under management Our transaction teams in EUR million, notarised volume in EUR billion 1 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) 1 until 2018 Institutional Business volume as sum of the volumes of the old segments Funds and Other Investments 5
HIGHLY DIVERSIFIED EUR 1.9 BILLION COMMERCIAL PORTFOLIO 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 1 Tenant structure 1 (pro forma EUR 2.0 billion incl. 2 acquisitions with transfer in Q3 2020) Other Education 5% 4% Hotel / restaurants 6% Stable cash flow profile with EUR 97.2 million annualised rental income 2 Banking / insurance Retail / Logistics 6% 24% representing current gross yield of 5.1% IT / telco / multimedia 8% Industry / disposal / utilities Public sector 9% 22% 3 Diversified portfolio by asset class and location , focus on Top 7 cities as Service providers 16% well as strong metropolitan areas (“ABBA”) Regional structure of portfolio 1 4 Strong tenant base with long WALT of 6.3 years and no dependency from single tenant or individual property and 22% public tenants Top 7 40% 5 Positive like-for-like growth of 2% on average 2016-2019 Small - mid sized cities 60% EPRA vacancy rate reduced to 7.5% as per 30 June 2020 6 1 Based on annualised rental income as of 30.06.2020 6
COMMERCIAL PORTFOLIO STRATEGY 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 Commercial Portfolio by Asset class Attractive independent asset class in the context of 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 7
VALUABLE CORE ASSET ADDITIONS TO OUR ASSET BASE New acquisitions for the Commercial Portfolio 8
TOP TENANTS IN THE COMMERCIAL PORTFOLIO Diversified tenant base and long durability of contracts Overview of top tenants (2% or more of total rental income)*/** 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 * 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) 9
HISTORICAL DEVELOPMENT OF THE COMMERCIAL PORTFOLIO Strong development across all KPIs Average value per property increased since 2017 due to EPRA vacancy rate portfolio optimization… in % Number of assets – 5.3pp 13.7 .7 14.5 .5 16.8 .8 20.4 .4 11.8% 142 9.5% 113 101 7.2% 93 6.5% 2016 2017 2018 2019 Average value per property (EUR million) 2016 2017 2018 2019 …and significant increase of WALT (including attractive new Positive L-f- l rental growth each year… acquisitions) L-f-l rental growth % WALT (Years) 2.7% +1.6 yrs 6.0 2.0% 5.8 5.1 4.4 1.4% 1.4% 2016 2017 2018 2019 2016 2017 2018 2019 …and again growing portfolio …reflected in rising annualised rental income since 2017… Fair value of investment properties (EUR million) EUR million +3.2% +15.9% CAGR 106.3 1,948 101.8 1,900 97.6 95.5 1,697 1,639 2016 2017 2018 2019 2016 2017 2018 2019 10
INSTITUTIONAL BUSINESS SEGMENT High loyalty from institutional investor base Deal structures 1 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 Investment partners 2 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 11
INSTITUTIONAL BUSINESS SEGMENT Individual investment strategies with strong focus on offices and Core/Core plus risk profile AuM by asset class Office properties representing 89% of assets in EUR million 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 AuM by risk profile prospects vs. alternative investments in EUR million Through our real estate expertise, on-site competence and active letting management we are able to realise additional values 12
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