COMPANY PRESENTATION 22 June 2020 1 EXPERIENCED MANAGEMENT TEAM - - PowerPoint PPT Presentation

COMPANY PRESENTATION

22 June 2020

1

EXPERIENCED MANAGEMENT TEAM

2

Sonja Wärntges

Chief Executive Officer (CEO) DIC Asset AG

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

Johannes v. Mutius

Chief Investment Officer (CIO) DIC Asset AG

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

Patrick Weiden

Chief Capital Markets Officer (CCMO) DIC Asset AG

 Certified business administrator and International Investment Analyst (CIIA)  Capital market expert with a proven track record, served as Division Head Equity & Debt Capital Markets at Bankhaus Lampe

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 occasionally acts as co-investor  88% office, 7% retail and 5% other1  Directly held portfolio of high quality assets in top locations  Steady income from core/core plus and value-add properties  67% office, 19% retail and 14% other1

Commercial Portfolio

(Balance Sheet Investments)

Institutional Business

(Managed Accounts) TOTAL EUR 8.4 billion AuM

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

Note: Financial information based on Q1 2020

1 Based on rental income Q1 2020

• c. EUR 6.5 billion AuM
• c. EUR 1.9 billion real estate assets

HIGHLY COMPLEMENTARY DUAL BUSINESS MODEL

Leveraging the Platform for Stronger Cash Flow with Lower Risk Profile

4

1 Based on Q1 2020

Benefits of the combined business model…

1

Broader market access and insight throughout Germany ► 7 regional offices with

• c. 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 8.4 billion AuM1 ► 186 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 ► EUR 3.5 million synergies –

• ne 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%) North East West Central South Offices: Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt, Mannheim, Munich

SUPERIOR PLATFORM TRACK RECORD THROUGH THE CYCLE

5

Transaction Volume 2019 Exceeded EUR 2 billion for the First Time

 Our transaction teams surpassed the record figure for 2018 (EUR 1.2 billion) with a transaction volume of EUR 2.2 billion in 2019  On the acquisition side, 21 properties with a total volume of

• ver EUR 1.9 billion (total investment cost) were notarised:

 5 properties for around EUR 0.3 billion for the Commercial Portfolio  16 properties for around EUR 1.6 billion for the Institutional Business  On the sales side, the sale of 15 properties with a total value

• f around EUR 0.3 billion has been notarised:

 11 properties for around EUR 0.2 billion from the Commercial Portfolio  4 properties with a value of EUR 0.1 billion from the Institutional Business

Transaction Volume

in EUR million

HIGHLY DIVERSIFIED EUR 1.9 BILLION COMMERCIAL PORTFOLIO

6

Top 20 Assets with Strong Core Profile – Almost Fully Let with 7.7 Years WALT

Regional structure of portfolio 1 Type of use1

As per 31.03.2020; 1 By annualised rental income as of 31 March 2020; 2 Including supermarket and Kaufhof stores

 EUR 1.9 billion Commercial Portfolio with 92

assets across Germany

 Stable cash flow profile with EUR 98.8 million

annualised rental income representing current gross yield of 5.2%

 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 6.2

years and no dependency from single tenant

• r individual property

 Positive like-for-like growth of 2% on average

2016-2019

 EPRA vacancy rate reduced to 6.5%

as per 31 December 2019 2 1 4 5 6 3

• Taubenstr. 7–9,

Berlin #1 Top Asset

• Wilhelminenstr. 1–3 ,

Darmstadt #2 Top Asset

Werdener Str. 4,

Düsseldorf #3 Top Asset

Top 7 41% Small - mid sized cities 59% Office 67% Retail 19%2 Logistics 5% Residential 1% Hotel/Restaurant 8%

HISTORICAL DEVELOPMENT OF COMMERCIAL PORTFOLIO

7

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 x.x +3.2% CAGR +15.9%

1 2017-2019 based on EPRA vacancy rate; 2016 vacancy rate based on sqm

EPRA Vacancy rate In %

INSTITUTIONAL BUSINESS SEGMENT

8

Individual Investment Strategies with Strong Focus on Offices and Core/Core plus Risk Profile

Investment Partners**  Our Institutional Business segment is managed by our subsidiary GEG, which had Assets under Management totalling EUR 6.5 billion as of 31 March 2020  Office properties representing more than 88% of current annualised rental income  More than 90% of AuM with risk profile Core/Core plus  Tailored investment strategies across the yield curve, incl.:  Repositioning of landmark assets with own development expertise  Assets with manage-to-core approach

38% 31% 19% 12% Family Offices Savings banks, banks Pension funds, Sovereign wealth funds

Types of use

Basis: annualised rental income

*Percentages based on Assets under Management from 31 March 2020 of EUR 6.5 billion; “”Percentages based on committed equity

Deal Structures*

Insurance companies 45% 41% 14% 88% 7% 5% Office Retail Other Commercial Use Pool Funds Club Deals Individual Mandates

IMPLEMENTATION OF THE INVESTMENT STRATEGY

9

Typical Institutional Business Investment Case

Acquisition

 Execution of the respective, individual property strategy for the realisation of value enhancement potential  After repositioning, the now optimised properties are managed and a stable cash flow is ensured  Optionally, some of the stabilized properties can be sold and the capital released reinvested in the investment vehicle  Sales period begins after

• approx. 8-10 years

 Reinvestment of proceeds into new investment vehicles

Holding or sale & reinvestment Sale

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

HIGHLY PROFITABLE INVESTMENT MANAGEMENT BUSINESS

10

0.8 1.1 1.5 3.9 5.7 2015 2016 2017 2018 2019

in EUR billion in EUR million

CAGR c.63.4% 96.6 99.4 129.9 155.6 130.7 2015 2016 2017 2018 2019

Sale of a co- investment

Institutional Business Volume (AuM) Market value of equity investments in Institutional Business

 Steadily increasing income generation from Institutional Business, with 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-, Property Management and Development Fees

FINANCIAL STRUCTURE

11

No Material Expiries in 2020/2021

 The weighted average term of loans and borrowings rose to 4.0 years (31 December 2019: 3.9 years).  The average interest rate of loans and borrowings stood at 2.1 % on 31 March 2020 (31.03.2019: 2.4 %) and slightly increased due to the repayment of commercial paper  The interest cover ratio (ICR, the ratio

• f EBITDA to net interest result)

remained at the very high year-end level of 508 % (31 December 2019: 509 %)  The LTV ratio (adjusted for warehousing) fell by 280 bp to 45.0 %  Maturities in 2020/2021: EUR 103 million in 2020 for refinancing, EUR 72 million in 2021 for refinancing  Cash and cash equivalents as of 31 March 2020 at EUR 342 million

Maturities of loans and borrowings (Q1 2020)

LTV TV1 (%) Ave verage interest rate2 (%)

3.7 3.7 2.6 2.5 2.0 2.1 2015 2016 2017 2018 2019 Q1 2020

• 160bp
• 17.6 pp

62.6% 59.9% 57.0% 53.1% 47.8% 45.0% 2015 2016 2017 2018 2019 Q1 2020

12

DIC’S MID-TERM GROWTH TARGET

Further Growth of Real Estate Platform in Germany

 Further growth is planned in both segments Commercial Portfolio and Institutional Business – with a mid-term goal of Assets under Management

• f c. EUR 10 billion

 Strategic mid-term target of maintaining a 50:50 FFO balance between the Commercial Portfolio and the institutional Business

Growth of Assets under Management and FFO

13

Gross Rental Income

Increases by 6% to EUR 26.0 million

EPRA-NAV

• f EUR 17.33 per share as at

31 March 2020; incl. full value of Institutional Business EUR 21.91 (Adjusted NAV per share)

Real Estate Management Fees

more than doubled to EUR 20.4 million

Loan-to-value

at a very low level of 45.0%

FFO

up 55% to EUR 26.4 million with 50:50 split between both segments

Like-for-like Growth

• f the annualised rental

income of the total platform

• f 6.0%

AuM of

EUR 8.4

billion

HIGHLIGHTS Q1 2020

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE Q1 2020

14

Remaining Lease Expiry Volume in 2020 at only 2.4 %

Letting structure

in sqm

Lease maturity

Annualised rental income in %

Letting structure

Annualised rental income in EUR million

Top lettings

 Letting performance in the first three months amounted to 37,100 sqm, of which 66 % (24,600 sqm) was attributable to lease renewals and 34 % (12,500 sqm) to new leases  The biggest contract was a large- volume lease renewal for 11,300 sqm signed with the Free and Hanseatic City of Hamburg  Our letting teams were able to secure agreements with annualised rental income of EUR 5.0 million:  EUR 2.9 million (58 %) for the Commercial Portfolio  EUR 2.1 million (42 %) for the Institutional Business  2020 lease expiry volume remaining was thereby reduced to 2.4 %. A total

• f 71 % of leases expire in 2024 or

later

15

FORECAST

Forecast Update 2020

16

DIC ASSET AG AT A GLANCE

APPENDIX

17

CAPITAL INCREASE IN JANUARY 2020

Successful 9.49 % Capital Increase from Authorized Capital for Further Growth

All percentages in shareholder structure as of the day of the last voting rights announcement

 Increase of share capital by 9.49% by issuing 6,857,774 new shares; statutory subscription rights of shareholders were excluded  New shares with the same rights as the existing shares (qualified for dividend for fiscal year 2019)  Placed at EUR 16.00 per share  Gross proceeds of approx. EUR 110 million available for further growth, especially purchases for the Commercial Portfolio  New number of total shares: 79,071,549 (since 21 January 2020)  Trading of new shares in regulated market (Prime Standard) since 24 January 2020

Shareholder Structure after Capital Increase

18

Stable and diversified income streams based on two solid revenue pillars, “Commercial Portfolio” and “Institutional Business” Internal asset and property management and development platform with experts in seven regional

• ffices creating added

value Solid and diversified financial structure Highly attractive dividend stock, with long track record of competitive dividend yield Dynamic local expertise in German real estate since 2002 Experienced management team S-DAX listed player in the commercial real estate market in Germany, fully complying to highest market standards and regulations

DIC ASSET AG – KEY STRENGTHS

ORGANIZATIONAL STRUCTURE – FULLY INTEGRATED PLATFORM

19

Fully Integrated Platform with ~250 Highly Skilled Employees (as of 31 December 2019)

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

• S. Wärntges (CEO/CFO)
• J. von Mutius (CIO)

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 Mannheim Hamburg Frankfurt Technical Property Management Cologne Munich

68 34 145 Employees:

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

• P. Weiden (CCMO)

INTEGRATED PLATFORM WITH PROVEN TRACK RECORD

We provide Value across the Complete Real Estate Life Cycle for our Own Portfolio as well as for Investment Vehicles Investors

20 20

1 Facility management by external parties; 2 Based on FY2019

Acquisition/Optimisation

 Coordination of acquisition process by investment team  On-going market screening with access to off-market opportunities  Investments in Commercial Portfolio and Institutional Business enable DIC to acquire in a large range of individual asset sizes (EUR 20-500 million)  Selected sales

Asset and Property Management

 Portfolio Management  Asset Management  Local property and facility management1  Refurbishing/capex planning  Contract with tenants

Refurbishment and repositioning of assets

 Potential repositioning of assets,

executed by the development team, ranging between EUR 30-250 million

 Close coordination with letting team in

• rder to perfectly meet

tenant requirements after pre-letting

 No greenfield developments

Commercial Portfolio

 Acquisitions 2019: value of EUR 300 million  Selected sales 2019: 11 properties with a value of EUR 154 million  Increasing rents (2.0% l-f-l rental growth)  EPRA vacancy reduction from 7.2% to 6.5% y-o-y in 2019  Value creation  Example Wilhelminenhaus Darmstadt: property value uplift from EUR 60.5 million to EUR 123.5 million  Asset Management fees of EUR 11.9 million2  Property Management fees of EUR 4.6 million2  Significant growth through GEG  Redevelopment of landmark assets  Development fees of EUR 14.5 million2  Acquisitions 2019: 16 properties for EUR 1.66 billion  Selected sales 2019: 4 properties with a value of EUR 132 million  Setup fees of EUR 7.8 million2  Performance fees of EUR 13.7 million2

Institutional Business

OUR “DYNAMIC PERFORMANCE” APPROACH TO BUSINESS

21 21

Creativity Speed Trust

 A large real estate player adapting to markets and being creative in all aspects concerning the property  Speed in the transactions as well as

• ur internal processes

 Trust in all we do and with all business partners and stakeholders Examples  Strong corporate finance know-how  Structuring investment vehicles  Warehousing  Business model  Financing sources  Use/redevelopment of real estate/buildings  Re-letting alternatives/scenarios  ESG topics: Redevelopment vs. new construction, protecting inner city centres Examples  Fast accounting/reporting season allowing to focus on business  Speed in acquisitions to secure properties in competitive markets  Low hierarchies – fast decision making  Entrepreneurial spirit throughout

• rganization

Examples  Retaining capital providers and increasing investment volumes of existing investors in the Institutional Business (58%)  Anchor shareholders invested in the company since IPO  Consistent outperformance of

• perational and financial targets

 Good and significant relationships with all German financing institutions  Established player in the capital markets, first bond in 2011  Trust of employer and trust of employees in the company and the platform

OUR FULLY INTEGRATED SERVICE MODEL

22

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

SUPERIOR PLATFORM TRACK RECORD THROUGH THE CYCLE

23

Strong Letting Performance and Centrally Controlled Property Repositioning

 Our internal asset and property management team is present at seven locations in Germany with c. 150 real estate specialists  In 2019, letting services with a volume of 211.3 thousand sqm (EUR 32.7 million) were realised, of which 97.8 thousand sqm relates to the Institutional Business (EUR 18.4 million).  Implementation of property repositionings controlled centrally from Frankfurt (own team including architects and engineers):  Modernisation or conversion of existing properties  Upside potential via refurbishments and repositioning of existing properties  Complete range of services for all planning and implementation phases in-house Letting Performance

in T sqm in EUR million Expiring rental contracts (in sqm)

188.3 232.1 143.2 145.5 196.8 181.2

Commercial Portfolio Institutional Business Total (2014-2015)

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE (1/3)

24

Assets under Management rose to EUR 8.4 billion

 Assets under management rose by 50 % year-on-year to EUR 8.4 billion, distributed across 186 properties with rental space

• f around 2.2 million sqm

 As of 31 March 2020, the Commercial Portfolio (CP) comprised 92 properties with a market value of approx. EUR 1.9 billion. Optimising the portfolio by selling non-strategic properties and acquiring attractive properties led to an increase in the average property size to EUR 20.5 million (31 March 2019: EUR 17 million)  Assets under management in the Institutional Business as of 31 March 2020 increased to approx. EUR 6.5 billion

Assets under Management

in EUR billion

Types of use

Basis: annualised rental income

Portfolio by segment

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE (2/3)

25

After implementing the Infinity Office Project Development: Successful Placement as Club Deal

 The transaction volume YTD amounts to EUR 327 million  On the purchasing side, one property in Wiesbaden with a volume of EUR 133 million (TIC) was acquired for the GEG Public Infrastructure I fund in the Institutional Business  In Q1 2020, possession, benefits and associated risks were transferred for five properties with a total volume of EUR 772 million, which were acquired in 2018 and 2019, incl. the "Stadthaus" in Cologne with EUR 527 million and the Infinity Office project development in Düsseldorf (EUR 164 million), which was acquired in 2018 under a forward deal and sold after completion as a club deal  On the sales side, the sale of three properties from the Commercial Portfolio and the Institutional Business with a total value of around EUR 194 million has been notarised to date this year; possession, benefits and associated risks are expected to be transferred during 2020

Transactions in 2020

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE (3/3)

26

Active Management: Refurbishment, Repositioning and Sale of the Frankfurter Strasse Property in Wiesbaden

COMMERCIAL PORTFOLIO SEGMENT

27

Increase in Portfolio Quality

 As of 31 March 2010, the Commercial Portfolio comprised 92 properties with a market value of

• approx. EUR 1.9 billion and rental

space of 837,500 sqm (31 March 2019: EUR 1.7 billion, 100 properties)  At 8.4%, the EPRA vacancy rate remained at the previous year's level in the first quarter (31 March 2019: 8.4%) due to seasonal effects and regular lease expiries  Average rent per sqm increased by 8% to EUR 10.39  Annualised rental income rose to EUR 98.8 million (Q1 2019: EUR 98.3 million) due to lettings and acquisitions, while like-for-like rental income grew by 0.8 % to EUR 89.0 million  WALT increased significantly year-

• n-year from 5.8 years to 6.2 years

Like-for-like rental income

in EUR million

Average rent

in EUR/sqm

Development of Commercial Portfolio WALT

In years

INSTITUTIONAL BUSINESS SEGMENT

28

Real Estate Management Fees more than doubled

 At EUR 20.4 million, real estate management fees from the Institutional Business more than doubled year-on-year, with both recurring and transaction-related management fees showing a significant increase (Q1 2019: EUR 9.2 million), driven, among others, by ongoing management of properties newly acquired in 2019, such as the Stadhaus in Cologne, the Eurotheum in Frankfurt, the Pressehaus in Berlin and the Helio in Augsburg  Transaction and performance fees, i.e. fees for acquisitions and disposals and the setup of investment products as well as for exceeding defined IRR hurdles, significantly increased year-on-year to EUR 13.6 million (Q1 2019: EUR 5.7 million), thereof EUR 8.4 million from acquisitions and EUR 5.2 million from sales  Fees for asset and property management and development were increased to EUR 6.8 million (Q1 2019: EUR 3.5 million) due to the successful growth of assets under management and extensive property acquisitions  In addition to management fees, we also generate share of the profit of associates from our equity investments in investment products in the Institutional Business. These amounted to EUR 2.7 million in the first quarter (Q1 2019: EUR 2.4 million

Management fees

in EUR million

Share of the profit of associates

in EUR million

Assets under Management

in EUR billion

29

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  Joint investments with investment partners, co-investment by DIC  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 0.9 billion EUR 2.9 billion EUR R 2.7 billion =AuM (31.03.2020)

DEAL STRUCTURES TAILORED TO INVESTOR NEEDS

30

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

PORTFOLIO SPOTLIGHT

RECURRING FEE INCOME FROM INSTITUTIONAL BUSINESS

31

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 / pr property ma management / deve velopment

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

EQUITY RETURNS– DIC PARTICIPATES ALONGSIDE OTHER INVESTORS IN CERTAIN INVESTMENT VEHICLES (ESPECIALLY POOL FUNDS)

32

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

INCOME STATEMENT Q1 2020

33

Strong Rise in Income from Institutional Business lifts Profit for the Period

Our successful asset and property management platform was able to grow our like-for-like rents by 0.8% based on rent increases and new

• leases. In addition, the acquisitions made in the previous year also helped

us to increase our gross rental income by 6% year-on-year to EUR 26.0 million (Q1 2019: EUR 24.5 million) Following the expansion of our Institutional Business segment last year, we more than doubled real estate management fees year-on-year to EUR 20.4 million in the first quarter of 2020 (Q1 2019: EUR 9.2 million). Both asset and property management and development fees (EUR 6.8 million, +94 %) as well as transaction and performance fees (EUR 13.6 million, +138 %) rose significantly. One of the factors contributing to this increase was the Frankfurter Strasse property in Wiesbaden, which was sold in Q1 following successful repositioning Triggered by the acquisition-based growth of the Institutional Business segment in June 2019, operating expenses rose by 64 % year-on-year to EUR 12.1 million (Q1 2019: EUR 7.4 million) The improved net interest result reflects the effects of repaying the bond carrying interest of 4.625% p.a. in the amount of EUR 175 million in Q3 2019 and issuing promissory notes totalling EUR 180 million at an average coupon of 1.55 % p.a. at the end of last year. Overall, the net interest result improved to EUR -7.1 million year-on-year (Q1 2019: EUR

• 8.6 million)

Profit for the period rose by a significant 75 % to EUR 16.1 million (Q1 2019: EUR 9.2 million), mainly due to the increase in real estate management fees

1 2 3 4 5

Our dynamic performance attitude is also reflected in the balance sheet at the end of the first quarter of 2020. We were one of the first companies in Germany this year to use an accelerated bookbuilding in order to increase

• ur equity by 10 %. We placed a total of 6,857,774 new shares at an issue

price of 16 euros, which was marginally below the stock market price. This generated gross issue proceeds of around EUR 110 million, which strengthened our equity base The reported equity ratio rose from 36.5 % to 38.7 %. In late February, the Infinity Office project development in Düsseldorf, which we secured in 2018 via a forward deal and monitored until completion over the construction period, was added. After the completion and letting of the Infinity Office we have structured a club deal for two renowned institutional investors in the second quarter 2020 and hence manage the property in the Institutional Business segment. As of the 31 March 2020 balance sheet date, we show the property under current assets as “non-current assets held for sale” and the corresponding liabilities as "liabilities related to non-current assets held for sale“ Overall, total assets thus increased by EUR 141.1 million compared with the end of 2019

3 5 4 2 1

BALANCE SHEET PER 31.03.2020

34

Capital Increase strengthens Equity Base

1 2 3 4 5 6

SEGMENT REPORTING Q1 2020

35

Institutional Business delivering Consistently Growing FFO Contribution

 The Commercial Portfolio’s contribution of EUR 13.2 million was up 15% year-on-year, due to higher net rental income triggered by like-for-like growth of 0.8% and acquisitions made in the previous year. The 6 % improvement in the net interest result also contributed to the significant increase in FFO  The contribution to earnings made by the Institutional Business in the first quarter also reflects the acquisition-based growth of the management platform, which was not included in the prior-year period. As a result, real estate management fees more than doubled to EUR 20.4 million. The acquisition-based growth of the Institutional Business segment also increased operating expenses to EUR 8.6 million. Overall, the segment generated FFO of EUR 13.2 million

Segment reporting

ADJUSTED NET ASSET VALUE PER 31.03.20

36

Reconciliation of EPRA-NAV to Adjusted NAV including Institutional Business Value

EPRA-NAV

 The EPRA-NAV as of 31 March 2020 amounts to EUR 1,370 million, up 10 % compared to the 2019 year-end figure of EUR 1,244 million due to the capital increase implemented at the beginning of the year  The adjusted NAV includes the value of our Institutional Business segment in the amount of EUR 557 million calculated and reviewed on the basis of a DCF method  Goodwill, intangible assets, other assets and liabilities of around EUR 194 million were already recognized in the EPRA-NAV  As of 31 March 2020 the adjusted NAV amounted to EUR 1,733 million. After taking into account the dilutive effect of the January 2020 capital increase on the Institutional Business adjustments in the amount of EUR 0.44 per share, the adjusted NAV is EUR 21.91 per share

LOAN-TO-VALUE CALCULATION PER 31.03.20

37



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

 MainTor  RETT Blocker Unite Portfolio  Other 

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 (31.03.2020) of 45.0%2, reduced by 280 basis points compared to year-end 2019 after capital increase in January 2020  Adjusted LTV (2019) of 39.4%2 including fair value of Institutional Business segments

Loa

• an to
• valu

lue (LTV)

in EURm 31 31.03.2020 As Assets ts Book value of investment properties 1,614.6 Fair value adjustment 278.3 Fair r value of investm tment t prop

• perti

ties, total al1 1, 1,892.9 Fair value of equity investments (indirect property) 119.3 Goodwill 177.9 Service agreements 39.4 Carrying amount of receivables from third parties 133.1 Fair r value of assets ts (val alue) 2, 2,362.6 Deduct goodwill (177.9) Deduct service agreements (39.4) Add fair value of Institutional Business 557.0 Ad Adjuste ted fai air r value of assets ts (val alue) 2, 2,702.3 Li Liabiliti ties Non-current liabilities to banks 967.0 Current liabilities to banks 179.5 Related party liabilities 16.8 Corporate bond 325.3 Less cash and cash equivalents

• 424.6

Net t liab abiliti ties (loa

• an)

1, 1,064.0 LT LTV2 (=C/ =C/A) 45 45.0% Ad Adjuste ted LT LTV2 (=C/ =C/B) 39 39.4%

1 4 2 5

4 7

3 6 A B C

3

7

TOP 20 ASSETS IN COMMERCIAL PORTFOLIO*

38

As at 31.03.2020, by Market Value

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

** Undisclosed information for reasons of competition

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

• Taubenstr. 7–9

10.1 0.0% 4.3 120.5 4.8 2 Darmstadt

• Wilhelminenstr. 1–3

25,7 0.0% 4.5 109.0 16.9 3 Düsseldorf Werdener Str. 4 29,4 4.2% 6.2 107.0 5.7 4 Halle Neustädter Passage 17 a–d 30.7 0.0% 4.3 70.6 4.8 5 Frankfurt Insterburger Str. 7 14.3 7.5% 5.5 68.3 2.2 6 Hamburg

• Marckmannstr. 129a–e

23.4 0.0% ** 60.4 ** 7 Duisburg Steinsche Gasse 26 12.6 0.0% 2.2 58.1 17.0 8 Leverkusen Horst-Henning-Platz 1 13.4 0.0% ** 56.7 ** 9 Chemnitz Am Rathaus 1 26.9 0.0% ** 56.7 ** 10 Frankfurt

• Kaiserstr. 62–64

9.6 0.0% 2.1 56.5 12.1 11 Berlin-Mahlsdorf Landsberger Str. 225–241, 245–249, 252–255, 261–262 40.1 3.9% 2.9 56.1 3.9 12 Frankfurt Königsberger Str. 29 12.7 0.0% 2.4 50.8 8.7 13 Wiesbaden Gustav-Stresemann-Ring 12–16 26.1 8.7% 3.3 46.2 3.3 14 Karlsruhe Bahnhofplatz 12 11.0 0.0% 1.9 45.0 9.9 15 Hamburg Kurt-Schumacher-Allee 2–6 13.1 0.0% 1.6 41.2 6.7 16 Cologne Mathias-Brüggen-Str. 124–170 28.2 5.3% 2.1 40.5 3.7 17 Kronberg

• Westerbachstr. 28–32

12.8 0.0% 2.0 34.5 4.4 18 Offenbach Berliner Str. 60 12.8 0.0% ** 33.7 ** 19 Cologne Agrippinawerft 22+24 8.4 0.1% 1.7 33.0 2.6 20 Mannheim Coblitzallee 1–7 17.9 0.0% 2.2 32.7 3.0 Top 20 20 proper erties es 378. 8.9 1.9% 9% 58.6 1,17 177. 7.5 7.7 Other proper erties es 458. 8.6 16.2% 2% 40.2 715. 5.4 4.1 To Total 837. 7.5 8.4% 4% 98.8 1,89 892. 2.9 6.2

 Renewal with state of Hesse (19y)  Capex & TI EUR 31.9m

 Energy savings of 40%

– Large photovoltaic system on the roof – Better thermal insulation – New windows – New solar shadings system

 Handicap – accessibility improved

39

Before e mode

• dernization KPIs (30.11.2017)

Market value (EUR m) 60.5 WALT (years) 3.3 Vacancy (%) 0.0%

• Ann. rental income (EUR m)

4.3 Yield 7.1% Improved KPIs (30.04.2020) Market value (EUR m) 123.5 Value creation (EUR m) 13.6 WALT (years) 16.8 Vacancy (%) 0.0%

• Ann. rental income (EUR m)

4.5 Yield 4.2%

“Lighthouse” Frankfurt “Wilhelminenhaus” Darmstadt

Before e mode

• dernization KPIs (31.12.2017)

Market value (EUR m) 33.5 WALT (years) 3.4 Vacancy (%) 78.5%

• Ann. rental income (EUR m)

0.7 Yield 2.1%

 Former Deutsche Boerse headquarters transformed to multi-tenant use  15-years lease with BG BAV (Public tenant) for 50% of spaces, other 50% for tenant mix  Capex & TI of EUR 7.2m

Improved KPIs (31.12.2019) Market value (EUR m) 50.8 Value creation (EUR m) 10.1 WALT (years) 8.9 Vacancy (%) 0.5%

• Ann. rental income (EUR m)

2.4 Yield 4.7%  Complete renovation, energy modernisation and structural

alterations for handicap accessibility

 Energy savings of around 40 %  Transformational project  Repositioning the asset after former tenant had left  Steady decrease of vacancy from

~80% to 0% in 2 years

REAL ESTATE PLATFORM: CASE STUDIES (COMMERCIAL PORTFOLIO)

Transformational refurbishments and repositioning in Darmstadt and Frankfurt

40

97% 97% Units pre-let prior to construction start

Rental income in EUR m p.a. Vacancy rate in % WALT years Market value in EUR m Status Quo Pre-Refurbishment

 Small-scale retail business (49 stores located in the arcade)  Short lease terms, and therefore high rate of tenant fluctuation  Increased capex requirements due to the age of the building, raised in the 1950s-1960s

Management Approach

 Restructuring and redesigning the retail units/arcade, straightening the arcade passage  Merging same rental units  Modernising the lightning concept, facade and shop frontage  Total Capex & TI of EUR 25.5m

43,9% 1,6% Pre refurbishment 2019 0,8 2,1 Pre refurbishment 2019 >100% (42.3)pp 1,9 12,4 Pre refurbishment Current +10.5 16,2 56,5 Pre refurbishment 2019 x3.5

REAL ESTATE PLATFORM: CASE STUDIES (COMMERCIAL PORTFOLIO)

Restructuring of KAISERPASSAGE, Frankfurt Property

0% 0% Pre repositioning 2020

41

WALT years

0,0 10,0 Pre repositioning 2020 +10.0

 Repositioning of 25,000 sqm property after previous anchor tenant AXA moved out  Successful letting to single public-sector in its entirety with lease until 2030  Restructuring work completed on time and new tenant Federal Criminal Police Office (BKA) will move in end of Q1 2020  Total Capex & TI of EUR 29.5m

Overview of “BKA Wiesbaden” repositioning / refurbishment Rental income in EUR m p.a.

3,4 6,1 Pre repositioning 2020 >80%

Vacancy rate in %

66,5 123, 5 Pre repositioning 2020 x1.9

REAL ESTATE PLATFORM: CASE STUDIES (INSTITUTIONAL BUSINESS)

Office Balance fund series – BKA Wiesbaden

42

SUSTAINABILITY STANDARDS

Green building principles

Environment



Energy and cost-effective management of our real estate



Long-term approach to upgrades of existing buildings and to project developments



Optimisation and reduction of CO₂ emissions and resource consumption

Society



Developing a positive corporate culture along with a safe and pleasant working environment



Cultivating long-term partnerships



Handling historically evolved neighbourhoods respectfully



Sponsoring charitable and social commitments to promote the common good

Economy



Investments in sustainable value-added through acquisitions and redevelopments of existing buildings



Stable long-term cashflows on the basis of an optimised diversified real estate portfolio



Balanced financial structure with a long-term horizon

ESG Milestones and future targets

We have a proactive and long term approach to environmental sustainability, aiming to reduce CO₂ emissions and minimize resource and costs of consumption

1 Overview of reporting activities



Regular sustainability report since 2011



GRI standards and EPRA SBPR reporting standards for increased transparency and international comparability



Regular response to carbon disclosure project



DVFA governance score in lower MDAX range

2 Highlights



Accelerated reporting processes relative to wider peer universe



Smart-meter roll-out for additional improvements in data collection and analysis



Energy supply contracts re-tendered for gradual conversion of Commercial Portfolio to 100% green electricity



Implementation of stakeholder approach and calculation of economic value generated and distributed according to GRI

IBC Campus ( Frankfurt)



Frankfurt obtained LEED-Gold score in 2019

Global Tower (Frankfurt)



DIC targets the highest certification (DGNB Platin) at completion for all properties in development (e.g., GLOBAL TOWER Frankfurt)

 Proactive approach to ESG showcased by reporting on sustainability matters for close to 10 years  Integration of ESG principles into normal course of business with sustainability focused re-development projects

CONTACT / FINANCIAL CALENDAR

43 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 Investor Relations Manager phone: +49 69 94 54 858-1465 fax: +49 69 94 54 858-9399 e-mail: ir@dic-asset.de 29.07.20 Publication Half-Year Report 2020 18./19.08.20 BHL German Conference 2020, Baden-Baden 10.09.20 SRC Forum Financials & Real Estate 2020, Frankfurt 22.09.20 Berenberg/Goldman Sachs German Corporate Conference, Munich 23.09.20 Baader Investment Conference, Munich 01.10.20 Commerzbank German Real Estate Forum, London 28.10.20 Publication Quarterly Statement Q3 2020 11/20 Deutsches Eigenkapitalforum, Frankfurt 11/20 DZ Bank Equity Conference 2020, Frankfurt

DISCLAIMER

44

This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to any securities. In case of an offer of securities the information legally required to be provided to investors will be contained only in a securities prospectus as approved by the competent authority. The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) and must not be distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended ("Securities Act")) or publications with a general circulation in the United States of America. This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to any securities in the United States of America. None of the securities of DIC Asset AG have been registered under the Securities Act and may not be offered or sold in the United States of America absent registration or an exemption from registration under the Securities Act. This publication is only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning

• f Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC as amended) ("Qualified Investors"). In addition, in the United Kingdom, this publication is

being distributed only to, and is directed only at, Qualified Investors who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) are high net worth entities falling within Articles 49(a) to (d) of the Order, or (iii) other persons to whom it may otherwise lawfully be communicated. This presentation should not be regarded by the recipient as a substitute for the exercise of its own judgment. Nothing contained herein is, or shall be relied upon as, a promise or representation as to the past or future. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained in this presentation. Neither DIC Asset AG nor any of its advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document

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

This presentation speaks as at the date hereof (unless an earlier date is otherwise indicated in the presentation) and in giving this presentation, no obligation is undertaken and nor is any representation or undertaking given by any person to provide the recipient with additional information or to update, revise or reaffirm the information contained in this presentation or to correct any inaccuracies therein which may become apparent. This presentation may contain certain forward-looking statements, forecasts, estimates, strategic targets, projections and opinions ("Forward Statements"). No representation is made or will be made that any Forward Statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the Forward

• Statements. Similarly no representation is given that the assumptions disclosed in this presentation upon which Forward Statements may be based are

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 June 2020