[PPT] - EMPOWERING BUSINESS, UNLOCKING POTENTIAL Leading owner and PowerPoint Presentation

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EMPOWERING BUSINESS, UNLOCKING POTENTIAL

1

Leading owner and operator of business parks, offices and industrial complexes in Germany

CAPITAL MARKETS DAY 16 MAY 2019

SLIDE 2

Disclaimer

This document may contain certain ‘forward-looking statements’. Such statements reflect current views on, among other things, our markets, activities, projections, objectives and prospects. By their nature, forward- looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of Sirius Real Estate Limited speak only as of the date they are made, and no representation or warranty is given in relation to them (whether by Sirius Real Estate Limited or any of its associates, directors,

fficers, employees or advisers), including as to their completeness or

accuracy or the basis on which they were prepared. Nothing in this presentation should be construed as a profit forecast or profit estimate. Other than in accordance with our legal and regulatory obligations (including under the JSE Listings Requirements, the UK Financial Conduct Authority’s Listing Rules, the Disclosure Rules and Transparency Rules and the Market Abuse Regulation), Sirius Real Estate Limited does not undertake to update forward-looking statements to reflect any changes in Sirius Real Estate Limited’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. This presentation is published solely for information purposes. This presentation does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer

f the securities referred to in this presentation in any jurisdiction in

contravention of applicable law. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. The distribution of this presentation in jurisdictions other than the UK may be restricted by law and regulation and therefore any persons who are subject to the laws of any jurisdiction other than the UK should inform themselves about, and observe, any applicable requirements. All opinions expressed in this presentation are subject to change without notice and may differ from opinions expressed elsewhere. All numbers provided are as at 30 September 2018 unless otherwise stated. 2

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Welcome and Housekeeping

3

SLIDE 4

Introductions

4

Andrew Coombs,

Group CEO

Simon French,

Chief Economist, Panmure Gordon

Diarmuid Kelly,

Finance Director, Sirius Facilities GmbH

Kremena Wissel,

Marketing Director, Sirius Facilities GmbH

Rüdiger Swoboda,

Managing Director, Sirius Facilities GmbH

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Agenda

5

11:30 Sirius - AXA RE Joint Venture - Titanium

Commercial Rationale, Diarmuid Kelly, Finance Director
Data Driven Asset Management, Kremena Wissel, Marketing Director
Field Operations, Rüdiger Swoboda, Joint Managing Director

10:30 Introduction & Welcome Andrew Coombs, Group CEO 10:35 Economic Outlook Simon French, Chief Economist, Panmure Gordon 11:00 Sirius Strategy Andrew Coombs, Group CEO 12:20 Q&A 12:30 Lunch 12:15 Summary Andrew Coombs, Group CEO

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Economic Outlook Simon French

Chief Economist, Panmure Gordon

6

SLIDE 7

ECONOMIC OUTLOOK

SIRIUS REAL ESTATE, CMD

Simon French ¦ Chief Economist

SLIDE 8

Page 8 Private and Confidential

Key Themes Europe faces modest trend growth

Global growth set to pick up later in 2019

E C O N O M I C O U T L O O K

Source IMF

US Presidential Election Chinese Stimulus Weak Productivity Lack of spare capacity Popularism

1 2 3 4 5 6 7 GDP, YoY % 2019 2020

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Page 9 Private and Confidential

Source: Markit, De Statis

A story of two German economies Slowdown since Q1 2018

Recent slowdown has underlying theme

E C O N O M I C O U T L O O K

0% 1% 2% 3% 50 52 54 56 58 60 May 2016 May 2017 May 2018 May 2019

Global PMI Germany, PMI German GDP, YoY % (RHS)

40 45 50 55 60 65 May 2016 May 2017 May 2018 May 2019 Output PMI

Services Manufacturing

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Page 10 Private and Confidential

Source: CPB, Eurostat

High sensitivity to global trade Global trade has recently gone into reverse

Germany exposed to international trade volumes

E C O N O M I C O U T L O O K

2%

0% 2% 4% 6% Jan 2013 Jan 2015 Jan 2017 Jan 2019 10 20 30 40 50 Exports, % of GDP Exports, % of GDP (Goods)

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Page 11 Private and Confidential

Source: De Statis

And a similar share of employment… Services are 70% of the German economy…

Forget the clichés about Germany

E C O N O M I C O U T L O O K

Services Manufacturing Construction Agriculture 25 50 75 100 Employment Share Services Industry Agriculture

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Page 12 Private and Confidential

Source: ZEW, Destatis

Autos as % of GDP ZEW: General VS Autos

Autos. Part of the story – but not the whole story

E C O N O M I C O U T L O O K

60
40
20

20 40 60 2010 2013 2016 2019 Automobile, Profitability All Sectors, Profitability 442 13,5 25 50 75 100 125 250 375 500 % of GDP Auto Sales, €bn Total Auto Sales % of GDP (RHS)

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Page 13 Private and Confidential

Source: Eurostat, GfK

Unemployment in a decade-long decline…. Consumer Confidence hovering around 20Y high

Consumer confidence underpinned by falling unemployment…

E C O N O M I C O U T L O O K

5

5 10 15 20 2001 2005 2009 2013 2017 GFK CONSUMER CLIMATE SURVEY 2 4 6 8 10 12 Q1 2001 Q1 2009 Q1 2017 Unemployment Rate, %

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Page 14 Private and Confidential

Source: De Statis

Savings ratio steady, in contrast to other G7 economies… Household debt is steadily falling….

German households deleveraging and building resilience…

E C O N O M I C O U T L O O K

50 55 60 65 70 75 2000 2006 2012 2018 Hhld debt, % of GDP 6 7 8 9 10 11 2000 2006 2012 2018 Household Savings Ratio Germany G7, Ex Germany

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Page 15 Private and Confidential

Source: Eurostat

German state running a steady fiscal surplus… Public sector debt less than 60% of GDP..

With healthy public finances…

E C O N O M I C O U T L O O K

20 40 60 80 100 120 1999 2004 2009 2014 2019 PS Debt, % of GDP Germany Eurozone, ex Germany

7,5
5
2,5

2,5 1999 2004 2009 2014 2019 PS Deficit, % of GDP Germany Eurozone, ex Germany

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Page 16 Private and Confidential

Source: Eurostat

Kurzarbeit Reduced Hours Reduced “Scarring”

Effective policy levers key to resilience Unemployment rate barely broke downward trajectory Hours responded to the economic crisis GDP, recovered faster…

2008-14 German Economy

E C O N O M I C O U T L O O K

92 96 100 104 108 Q1 2008 Q1 2011 Q1 2014 Germany Eurozone, Ex Germany 96 97 98 99 100 2008 2009 2010 2011 Hours per Worker 2008=100 Germany EU, Ex Germany 2 4 6 8 10 12 14 Q1 2007 Q1 2010 Q1 2013

Une. Rate, %

Germany Eurozone

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Page 17 Private and Confidential

Source: Eurostat, De Statis

Cost of construction new CRE picking up… Insolvencies falling; accommodative credit conditions…

Corporate sector underpinned by low costs…

E C O N O M I C O U T L O O K

1 2 3 4 5 6 7 8 4000 6000 8000 10000 12000 Q1 2000 Q1 2006 Q1 2012 Q1 2018

Insolvencies per quarter Average Corporate Borrowing Rate, % (RHS)

2%

0% 2% 4% 6% 8% 2007 2010 2013 2016 2019

Industrial Buildings, YoY % Office Buildings, YoY % Core CPI, YoY %

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Page 18 Private and Confidential

1.Incomplete Monetary Union 2.Global Trade Conflict 3.Competitive Devaluation 4.Unfavourable Demographics 5.Ideological policymaking 6.Merkel Transition 7.Change at the ECB

Key Risks

E C O N O M I C O U T L O O K

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Page 19 Private and Confidential This document has been produced by Panmure Gordon (UK) Limited (“Panmure Gordon”) which is authorised and regulated in the United Kingdom by the Financial Conduct Authority. This presentation has been prepared from publicly available information, internally developed data and

ther sources believed to be reliable. No representation, warranty or undertaking (express or implied)

is given and no responsibility is accepted by Panmure Gordon, or by any of its officers, employees or agents for the completeness or accuracy of any information contained in, or of any omissions from, this presentation or any supplementary information made available to any interested party or its advisers, and any liability in respect of such information or omissions is hereby expressly disclaimed. Neither this presentation nor any part of it constitutes an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities or a solicitation of any such offer or invitation and shall not form the basis of any contract with Panmure Gordon. Opinions expressed herein are subject to change without notice. In providing this presentation, Panmure Gordon undertakes no obligation to provide the recipient with access to any further information or to correct any inaccuracies or omissions which may become apparent. Panmure Gordon, its associated companies, its connected companies, and its and their officers, employees and agents may own or have positions in securities of companies or issuers mentioned therein and may also seek to provide financial advisory, banking and other services for any such companies or issuers. This presentation and its content are confidential and should not be distributed, published or reproduced (in whole or in part) and are intended for the use of the recipient only. Any other person or persons who receive a copy of this presentation should not act upon it and Panmure Gordon accepts no liability or responsibility whatsoever for any actions taken by such persons in reliance on this publication. By accepting this document, you agree to be bound by the foregoing limitations. Panmure Gordon (UK) Limited Member of the London Stock Exchange Authorised and regulated by the Financial Conduct Authority Registered office: One New Change London EC4M 9AF +44 (0)20 7886 2500

Important Notice

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Page 20 Private and Confidential

London Panmure Gordon and Company One New Change, London EC4M 9AF +44 (0)20 7886 2500 Leeds Panmure Gordon and Company Park House, Park Sq. West, Leeds LS1 2PW +44 (0)113 357 1150

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21

Sirius Strategy Andrew Coombs

Chief Executive Officer, Sirius Real Estate

SLIDE 22

About Germany

1

Well ell div diver ersi sified fied eco economy nomy

Machinery, automotive & aviation chemical & medical energy & environmental consumer & service

Se Sever eral l al lar arge ge au auton tonomo

mous

us mar markets ets

Frankfurt, Berlin, Munich, Hamburg, Dusseldorf, Cologne, Stuttgart……..

High igh replac laceme ment co t costs sts

German light industrial buildings are constructed to comparatively high standards and replacement costs are

ften up to 200% of the capital value of

secondary stock

The he Mittels ittelstan tand

The German SME market, over 50% of the German economy in terms of both employment & output

High High le levels els of

f i

investmen estment

Germany and German real estate in particular is attracting high levels of investment and the liquidity of real estate in German is particularly high

22

SLIDE 23

About Sirius

1

Le Lead ading ing owne ner r an and op d oper erator tor

f business parks, offices

and industrial complexes in Germany

Listed Listed on

n the main

the main mar markets ets

f the LSE and JSE

FTSE EPR FTSE EPRA/N /NAREIT EIT Glob Global al Rea eal l Esta Estate te In Inde dex x and FTSE/J FTSE/JSE SA SE SA Listed Listed Pr Prop

per

erty ty In Inde dex x Ma Market et ca capital pitaliz izati tion

n of
f

€772m (₤666m)**

Full Fully y inte integrated ted ope

perati

ting ng pla platf tfor

rm

m including 250 employees €368m* current debt

(LTV 35.2%)

€1,045m* of assets owned Tax ef ax efficient ficient st structur ucture

23 *As reported at 30 September 2018 **As at 14 May 2019 and converted to Euros using an exchange rate of 1.16

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70 70 65 65 60 60 55 55 50 50 45 45 40 40 35 35 30 30 25 25

Sirius share price (p)

APR 14 JUL 15 DEC 15 MAY 16 OCT 16 MAR 17 AUG 17 JAN 18 JUN 18 NOV 18

20 20

APR 19 SEP 14 FEB 15

16 Jun 14

Final results for FY 2014, with 30% increase in recurring PBT to €11.3m

22 May 15

Final results covering period of JSE listing and acquisition of 4 business parks

23 May 16

Final results for FY16: Like-for-like rent roll increased by €3.0m to €53.0m and 82% increase in recurring profit before tax to €22.9m

6 Mar r 17

Move from the AIM market of the London Stock Exchange (“LSE”) and the AltX market of the Johannesburg Stock Exchange (“JSE”)

26 Jun 17

Final results for FY 2017, with 54% increase in recurring PBT to €35.3m

4 Jun 18

Final results for FY 2018, EPRA NAV rising 11% to 64.18c per share and occupancy rose to 82.5%

1 Mar r 19

Announced JV with AXA IM – Real Assets

20 Mar r 18

Placing to raise £35m at 60p

28 Jul 17

Placing to raise €25m at 56p

21 June 16

Placing to raise €30m at 53c

7 Mar r 17

Placing to raise €15m at 57.71c

15 June 15

Placing to raise €50m at 46c

Source: FactSet data up to 30 Apr 2019

Pe Peri riod TSR TSR

3M 3M 12M 12M 5yr 5yr

Sirius 5.66% 7.86% 185.90% FTSE All Share 9.41% 6.31% 34.30% EPRA/NAREIT UK

11.93% 1.18% 31.05%

Source: Bloomberg, TSR (dividends reinvested) data up until 31 March 2019

SLIDE 25

Total portfolio rental analysis 30 September 2018

25

Type pe of

f Tena

enant nt

No. . Of Tenants s as s at 30 30 Sep ep18 18 Occ ccup upied ed Sqm qm Annual Rent €m Rate psm €

Top 50 Anchor Tenants 50 559,913 36.9 5.5 SmartSpace SME Tenants 2,224 57,906 5.3 7.67 Other SME Tenants 2,185 573,002 39.8 5.78 Total 4,459 1,190,821 82.0 5.74 Top

p Tena

enants nts % % of

f Rent

ent R Roll

ll

GKN Aerospace Deutschland GmbH 2.7% TDK Electronics AG 1.9% VAG GmbH 1.9% MAN Energy Solutions SE 1.7% NuCellSys GmbH 1.6% TLT Holding GmbH 1.5% Daimler AG 1.5% Land Hessen 1.4% Der Grüne Punkt 1.4% Bopp & Reuther Sicherheits 1.2% Total 16.7%

45% 45% 6% 6% 49% 49%

Tenant Split by Revenue

Top 50 Anchor Tenants SmartSpace SME Tenants Other SME Tenants

SLIDE 26

Sirius operating platform - benefits

Lower Risk

Higher Returns

Dir irec ect t sour sourcing cing of

f

ac acqu quis isiti ition

n op
ppo

portun tuniti ities es No reli liance on

n

agents & ts & brokers s High Higher er co cost st rec ecover ery Gr Grea eater ter lead lead & & ne new ten tenan ant gen t gener eration tion In Incr crea eased sed op

ptiona

tionali lity ty in in spac space e co conf nfigur iguration tion Enh Enhan ance ced d co contr ntrol,

l, foc
cus

us & & spee speed d in in de develop eloping ing spac space e Motiva

tivated

ted, , tar targe get t foc

cused

used tea team m of

f pr

prof

fessi

ession

nals

als

26

SLIDE 27

Why invest in Sirius?

Acc ccess ess to to high high-yi yielding elding indust industri rial al ass asset et clas lass

Compared to other asset classes
Higher yielding
Greater opportunity/value-add
High cash flow with attractive financing

deals

High High FF FFO/d O/div ividen idend d yi yield eld with ith si sign gnifican ificant t growth po th poten tential tial

FFO run rate of €46.6m* is around

6.5%** FFO yield

FFO growth from capex programmes & asset

management initiatives

Well-covered dividend

4 1

Fu Full lly y inte integrated ted & & in in-ho house use ass asset et & pr prope

perty

ty man manage gemen ment t pla platf tfor

rm
Eliminates lettings & cost recovery risks
Develops and monetises structural

vacancy

Greater customer focus & retention

2

High High qu quality ality po portf tfolio with

lio with

goo good d poten potenti tial al & co conser nserva vativ tivel ely y valued valued

Portfolio of 55 assets located mainly

around “Big 7” German cities

14% vacancy being developed through

capex programme

Valued at 7.8% gross yield

3

Fu Furthe ther g r growth fr th from

m

po portf tfolio

lio man

manage gemen ment t

Asset recycling
Corporate acquisitions
Unsecured debt
Joint ventures

5

27

*FFO run rate based on reported FFO at September 18 **Using market cap at September 18

SLIDE 28

Total Shareholder Accounting Return - development

1/3 of return generated through

dividends, 2/3 through NAV growth

Valuation gains driven

predominately by income growth and improved occupancy

Portfolio currently valued

at 7.8%* gross yield (recent disposals at 6.2% gross yield)

28 *As reported at September 18

13.0% 16.0% 15.3% 17.0% 9.8% 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0% 18,0% März 15 März 16 März 17 März 18 September 18

Total Shareholder Return (%) – Adjusted NAV & Dividends Paid

Dividend Return NAV Return

SLIDE 29

Going forward - Sirius strategy

Con

ntinue

tinue to to rea eali lise se

pp
ppor
rtunity

tunity wi within thin exis xisti ting ng po portf tfolio

lio
98,000 vacant space going through capex

programmes

Reversion within existing rent roll
Further service charge cost recovery

Exp Explor lore un e unsecu secured ed de debt bt

Creates cash for acquisitions
Greater flexibility for recycling
Limited covenants
Easier to manage

4 1

Con

ntinue

tinue with ith selectiv selective e ass asset et rec ecycli ling ng

Selling assets at above book value on

lower yields

Acquire assets with income and

significantly more value-add opportunity

2

Develop elop J Joint V

int Ven

entur ture e income s income str tream eam

AXA joint venture due to complete July
Management fees increase return
n equity

3

Fu Furthe ther acq r acquisi uisitions tions

Feeds capex programme
Accretive from day one
Fuels future growth
Benefits of scale

5

29

6

Med edium ium ter term m amb ambiti ition

n
Grow FFO to €100 million

SLIDE 30

FFO development – the story so far…

Medium term ambition €100m
Reinvestment of JV proceeds
Share of profit & fee income
Impact of capex investment

programmes over next 3 years

Further FFO through potential

acquisition activity

30

14.3 25.0 37.1 38.4 46.2 53.1 56.2 100.0

0,00 20,00 40,00 60,00 80,00 100,00 120,00 March 15 March 16 March 17 March 18 March 19 (consensus) March 20 (consensus) March 21 (consensus) Medium term ambition

Funds From Operations (€m)

FFO

SLIDE 31

Conclusion

31

1-

Aim to own & operate €1 billion of investment property – now complete

2-

Reinvest proceeds of JV & complete current capex investment programmes

3-

Grow FFO to €100m – medium term ambition

With strong and sustainable income growth Sirius is well positioned to continue making double digit total shareholder returns going forward

SLIDE 32

32

Joint Venture – Commercial Rationale Diarmuid Kelly

Financial Director, Sirius Facilities GmbH

SLIDE 33

Joint Venture – recap

33

Selective process of identifying partner Sirius continues to operate and manage the assets Sa Sale of le of 65% 65% inter interest est in 5 SP in 5 SPVs Vs and new and new Joint V

int Ventur

enture e agreement cr eement crea eated ted 65% of 65% of 5 ass 5 assets ets sold sold with implied value of €168m and g and gross

ss yield of

yield of 6.2% 6.2% €70m of proceeds generated for SRE to reinvest into new assets Positive impact on NAV (book value €141.1m) Immediately accretive to earnings when proceeds reinvested Mature assets sold and assets with greater

pportunity will be acquired

SLIDE 34

Joint Venture commercial rationale

3

Siri Sirius us minority minority shar share in e investmen estment t retu eturns ns bo boosted

sted by

by asset & asset & pr prop

per

erty ty man manage gemen ment t fee ee i inc ncome

me

1 2

Str Stren ength gth of

f comb

combining br ining bran and & d & fina financ ncial ial po power er of

f A

AXA an and asset d asset & & pr prop

per

erty ty man manage gemen ment t ca capa pabili bilities ties of

f Si

Sirius rius Le Lever erage ge the the ca capa pacity o city of the Sir the Sirius ius

p
per

erating pla ting platf tfor

rm

m Alter lterna nativ tive e sour source ce of

f ca

capital pital – abili bility ty to to close big lose bigge ger dea r deals ls in in pa partne tnership ship

4

34

SLIDE 35

Joint Venture fees payable to Sirius

Asse Asset t ma mana nage geme ment nt fee ee Le Lettings ttings f fee ee

4 1

Pr Prop

per

erty ty man manage gemen ment t fee ee

2

Cen Centr tre e man manage gemen ment t fee ee

3

Cor Corpo porate te ser service vices s fee ee

5

35

6

Acqu Acquisi isition tion & & disp dispos

sal f

al fee ee

SLIDE 36

Joint Venture seed asset uplift in income

36 Mainz Ass ainz Asset et Mar 16 Sep Sep 18 18 Imp Improveme ment €m €m €m Rent R Roll ll 2,21 ,219,00 ,000 2,57 ,572,00 ,000 353,00 ,000 Non Recoverables les (2 (215,00 ,000) (1 (190,00 ,000) 25,00 ,000 NOI I 2,00 ,004,00 ,000 2,38 ,382,00 ,000 378,00 ,000 Occupancy 80% 80% 95% 95% 15% 15%

NOI NOI incr increa ease of se of 19 19% %

in in pe period of riod of Si Sirius rius owne nership ship

Impr Improveme ement nt driv driven en

by by incr increa easi sing ng occ

ccup

upan ancy y an and d impr improveme ements nts in in ser servi vice ce cha harge ge rec ecover ery

Ass Asset et appr pproac

aching

hing inco ncome me ma maturi turity ty (95% o (95% occu ccupan pancy) y)

+16%

12%

+19%

SLIDE 37

Joint Venture – seed asset expected returns

37 Mainz inz asset asset Si Sirius ius

wnership

ship JV V Si Sirius ius sha share at 35% €m €m €m An Annual l profit fit before tax 2.1 .1 1.8 .8 0.6 .6 Fee inc income me

0.3

.3 Total l 2.1 .1 1.8 .8 0.9 .9 Si Sirius ius

wnership

ship JV JV Si Sirius ius sha share at 35% Equity (€m) 18.0 .0 18.0 .0 6.3 .3 ROE 11.7% .7% 10.0% .0% 14.3% .3%

Impr

Improve income r e income retur eturns on ns on ma matur turing ass ing assets ets equity equity

Opp

Oppor

rtunity

tunity to incr to increase r ease retur eturns ns thr through shar

ugh share of

e of pr profit and f

fit and fee

ee income income

Potent
tential t

ial to

gener

generate r te retur eturns ns in in excess cess of

f 15% thr

15% through f

ugh fur

urther ther asset asset man managem gement ent

Released €12m of equity to

rein einvest est for

r higher

higher retur eturns ns

SLIDE 38

Summary

38

Crystallisation

f value

for shareholders Positive impact on NAV and earnings

nce proceeds

reinvested Fee income from JV

ffsets cost of Sirius
perating platform

Asset level returns within the JV enhanced through share of profit + fee income Strong partnership between AXA and Sirius

SLIDE 39

Data Driven Asset Management Kremena Wissel

Marketing Director, Sirius Facilities GmbH

39

SLIDE 40

PROPERTY PROSPECT CUSTOMER

INTELLIGENCE

DATA From a marketing perspective why is Sirius such a strong JV partner?

40

1 2 3

SLIDE 41

First dimension: property data

8 18 23 17 22 41 46 18 10 21 34 39 31 26 44 33 26 35 52 27 17 30 46 39 49 44 5151 67 56 61 85 35 57 71 53 646668 52 61 87 67 72 49 64 60 97 90 67 5957 96 44 75 60 46 72 7678 10 20 30 40 50 60 70 80 90 100

April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March Business year 2014/2015 Business year 2015/2016 Business year 2016/2017 Business year 2017/2018 Business year 2018/2019

406 680 807 820 297

DATA COMPILED ON > 3,000 PROPERTIES

41

No. – properties assessed by Sirius

SLIDE 42

HAMBURG BERLIN DÜSSELDORF KÖLN FRANKFURT STUTTGART MÜNCHEN

42

Property data: depth of information

region city status site visit date desktop calc LOI LOI date purchase price main usage GIY bid GIY asking EPRA NOIY bid EPRA NOIY asking gIRR Investment type central A... under review yes 15.04.2019 yes yes 08.04.2019 47.000.000 mixed use 8.9% 8.7% 7.9% 7.6% 11.3% core+ west Sch… under review yes 18.03.2019 yes yes 08.04.2019 7.500.000 Industrial 0.0% 0.0%

7.1%
6.3%

6.4%

pportunistic

south H… under review yes yes yes 24.04.2019 13.250.000 Office 1.7% 1.5% 0.4% 0.3% 11.6%

pportunistic

east D… under review yes 04.04.2019 yes yes 08.04.2019 26.500.000 Industrial 6.8% 6.7% 6.1% 6.0% 9.2% core+ east R… under review yes 04.04.2019 yes yes 08.04.2019 13.000.000 Industrial 7.5% 6.5% 6.7% 5.8% 9.9% core+ west B… under review yes 18.03.2019 Yes yes 17.04.2019 5.800.000 Office 7.1% 6.6% 5.4% 5.0% 9.2% core+ south H.. under review yes 12.02.2019 Yes yes 19.02.2019 17.750.000 Office 4.5% 3.5% 3.4% 2.6% 12.6% value add central B.. under review yes 28.02.2019 yes yes 08.02.2019 28.500.000 Industrial 7.6% 7.4% 6.9% 6.7% 12.1% core+ west K.. under review yes 15.04.2019 yes yes 30.11.2018 22.500.000 Industrial 4.8% 4.0% 3.5% 3.0% 13.6% value add central M… under review yes 12.12.2018 yes yes 21.12.2018 33.400.000 Office 7.2% 6.9% 6.1% 5.8% 14.4% value add

€

SLIDE 43 Price Bid Asking Purchase Price 21.000.000 31.000.000 RETT North Rhine-Westphalia 6,50% 1.365.000 2.015.000 DD / Notary 1,25% 262.500 387.500 Broker Fee 0,00% Total Acquisiton Costs 7,75% 22.627.500 33.402.500 Size / Usage sqm % Office 15.337 sqm 29,1% Warehouse 33.844 sqm 64,2% Retail 1.596 sqm 3,0% Other 1.919 sqm 3,6% To compensate Gross Lettable Area 52.696 sqqm 100% Income / Occupancy Gross Rental Income 2.391.294 Net Operating Income (NOI) 2.290.849 Occupancy 95,1% 50.112 sqm Vacancy 4,9% 2.584 sqm WALE 1,5 yrs Day 1 KPIs w/o Pilkington Bid Asking NOIY 6,1% 10,1% 6,9% Cap Rate 10,9% 7,4% GIY 11,4% 7,7% Multiplier 14,0 x 8,8 x 13,0 x Value psm (lettable) 429 634 Value psm (occupied) 452 667 Property Plot size n/a No of buildings >30 Year of construction n/a

No. of tenants

31 Biggest tenant Pilkington Automotive No of parking space 421 Income Split € % €/sqm ERV €/sqqm Office 1.110.361 46,4% 6,28 6,50 Warehouse 1.047.732 43,8% 2,70 2,75 Retail 134.802 5,6% 7,04 7,00 Other 29.169 1,2% 1,69 2,00 To compensate Parking 69.230 2,9% 15,68 15,00 Gross Rental Income 2.391.294 100,0% 3,86 3,94 Annual Running Costs € €/sqm /mly) €/sqm (yly) % of Income Non-recoverable SC 37.210 1,20 14,4 1,6% Centre Management (CM) 31.618 0,05 0,6 1,3% Maintenance (R&M) 31.618 0,05 0,6 1,3% Total Costs 100.445 4,2% Tenant Area Rent p.a. % of Rent Rent psm WALE Pilkington Automotive 25.610 889.356 37,2% 2,89 1,2 GfR Gesellschaft f. Re 5.257 439.273 18,4% 6,56 0,8 KSI-Kaufm. Schulungsin 3.601 227.114 9,5% 5,18 0,8 SWARCO Traffic Systems 2.454 132.296 9,5% 4,49 2,1 EKOF Flotation GmbH 2.254 114.375 4,8% 4,23 2,8 Alfa Pack Inh. Cemil 1.136 83.640 3,5% 6,10 2,7 Amberg Sanitätshaus un 736 83.432 3,5% 8,39 5,0 Vivamo GmbH 2.037 81.219 3,4% 3,22 0,8 Other 7.027 340.589 14,2% 4,04 1,0 Total 50.112 2.391.294 100% 3,98 1,5 ERV Overview Day1 Income tERV tERV ERV Occupancy 95% 93% 100% 100% Income 2.391.294 3.278.874 2.509.155 2.569.038 NOI 2.290.849 3.178.429 2.445.920 2.505.803 NOI % 10,1% 14,0% 10,8% 11,1% Sensitivity Pricing Purchase Price Total Costs NOI% Multi x €/sqm (let) gIRR +250.000 20.000.000 21.550.000 10,6% 8,4 x 409 16,7% 20.250.000 21.819.375 10,5% 8,5 x 414 16,2% 20.500.000 22.088.750 10,4% 8,6 x 419 15,8% 20.750.000 22.358.125 10,2% 8,7 x 424 15,3% 21.000.000 22.627.500 10,1% 8,8 x 429 14,9% 21.250.000 22.896.875 10,0% 8,9 x 435 14,5% 21.500.000 23.166.250 9,9% 9,0 x 440 14,1% 21.750.000 23.435.625 9,8% 9,1 x 445 13,6% 22.000.000 23.705.000 9,7% 9,2 x 450 13,2% 22.250.000 23.974.375 9,6% 9,3 x 455 12,8% Sales Costs for New Sales Y1 Y2 Y3 Y4 Y5 Cost as % of new sales 8,3% 8,3% 8,3% 8,3% 8,3% Costs 22.500 22.500 22.500 6.000 New Sales Capex €/sqm € ERV €/sqm ERV ROI Office 180 6,50 Warehouse 50 2,75 Retail 50 7,00 Other 50 2,00 To compensate 3,00 882.000 Capex - Value Add 0,00 882.000 Capex - Investment 1.846.000 Total 1.846.000 Cost and Rent Improvements Improve p.a. €/sqm in Y5 € in Y5 Time period for improvements 5 yrs Reduce non-recoverable SC per sqm (void) 25,00% 6,94% p.a. €0,95 psm 29.331 Reduce non-recoverable CM per sqm 50,00% 15,91% p.a. €0,03 psm 16.615 Reduce non-recoverable R&M per sqm 25,00% 6,94% p.a. €0,04 psm 24.923 Disposal Scenario - Disposal Input Buyer TAC Proceeds Delta to TAc Sales cost buyer 7,75% Sales cost Sirius 2,00% Target NOIY 7,00% 32.765.382 29.812.458 7.184.958 Disposal Scenario in Y5 Buyer Gross Income 2.388.396 Non-Recs 94.819 NOI 2.293.577 NOIY 7,0% Cap Rate 7,5% GIY 7,9% Multiplier 12,7 x Value psm (lettable) 622 Value psm (occupied) 669 Running Yield – Big Price Y1 Y2 Y3 Y4 Y5 NOIY 3,9% 5,5% 6,9% 8,3% 8,7% geared Cash on Cash*

7,1%

2,5% 5,3% 9,6% 13,4% ungeared Cash on Cash*

1,4%

3,3% 4,6% 6,7% 8,6% KPIs - Bid Price geared ungeared

Avg. Cash on Cash*

4,8% 4,4% IRR 14,9% 9,2% Initial Equity Multiplier 2,0 1,5

*incl. Capex and amortisation

Value add Total investment Equity

11.077.500

Total Capex

3.490.686

Investment

14.568.186

Income earned Y1-Y5 6.356.094 Disposal return in Y5 19.417.458 Total return 25.773.552 Value add 11.205.366 Cash flow projection - geared Day1 Y1 Y2 Y3 Y4 Y5

Th. Property value

21.000.000 13.391.012 19.261.434 24.802.442 30.466.418 32.580.031 Equity @ Acquisitation

11.077.500

Refinancing debt Gross Income 1.501.932 1.773.04 8 2.044.16 4 2.315.28 2.388.396 Non-recoverable SC

410.054
334.151
217.707
114.051
53.281

Centre Management (CM)

31.934
27.122
23.034
19.563
16.615

Maintenance (R&M)

31.934
30.015
28.211
26.516
24.923

Letting Costs

90.640
33.460
39.040
22.500
12.975

NOI 937.371 1.348.300 1.736.171 2.132.649 2.280.602 Interest

231.000
231.000
231.000
231.000
231.000

Amortisation (2%)

231.000
231.000
231.000
231.000
231.000

Capex - Value Add

337.719
375.000
456.967
375.000
100.000

Capex - Investment

992.000
231.000
231.000
231.000
231.000

Disposal 19.317.458 Net Cash flow

11.077.500
784.348

280.300 586.204 1.064.64 9 21.136.060 Cash flow projection - ungeared Day1 Y1 Y2 Y3 Y4 Y5 Acquisition

22.627.500

Gross Income 1.501.932 1.773.048 2.044.164 2.044.164 2.388.396 Non-recoverable SC

410.054
334.151
217.707
114.051
53.281

Centre Management (CM)

31.934
27.122
23.034
19.563
16.615

Maintenance (R&M)

31.934
30.015
28.211
26.516
24.923

Letting Costs

90.640
33.460
39.040
22.500
12.975

NOI 937.371 1.348.300 1.736.171 2.132.649 2.280.602 Capex

1.259.719
606.000
687.967
606.000
331.000

Disposal 29.812.458 Net Cash flow

22.627.500
322.348

742.300 1.048.20 4 1.526.649 31.762.060 Leverage Bid Asking Loan Amount /LTV 55,0% 11.550.000 17.050.000 Annual Interest 2,0% 231.000 341.000 Year of Financing Initial Cash on Cash 18,6% 11,9% Letting / Usage Occupancy Vacancy Office 14.729 sqm 96,0% 608 sqm 4,0% Warehouse 32.347 sqm 95,6% 1.1497 sqm 4,4% Retail 1.596 sqm 100,0% 0 sqm 0,0% Other 1.440 sqm 75,0% 479 sqm 25,0% To compensate Parking 368 87,4% 53 12,6% Total 50.112 sqm 95,1% 2.583 sqm 4,9% Target Occupancy linear Usage Time span Occupancy Occupied Vacant New let ERV (new let) Office 5 yrs 96,0% 14.729 sqm 608 sqm 0 sqm Warehouse 5 yrs 95,6% 32.347 sqm 1.497 sqm 0 sqm Retail 5 yrs 100,0% 1.596 sqm 0 sqm 0 sqm Other 5 yrs 75,0% 1.440 sqm 479 sqm 0 sqm To compensate 24.500 sqm 1.110 sqm 24.500 sqm 882.000 Parking 5 yrs 95,0% 399 22 31 5.580 Total 93,0% 49.002 sqm 2.584 sqm 0 sqm 887.580

Occupancy projection Day1 Y1 Y2 Y3 Y4 Y5 Office 14.729 14.595 14.595 14.595 14.595 14.595 Warehouse 32.347 7.436 7.436 7.436 7.436 7.436 Retail 1.596 1.596 1.596 1.596 1.596 1.596 Other 1.440 875 875 875 875 875 To compensate 7.500 7.500 7.500 2.000 Occupied sqm 50.112 24.502 32.002 39.002 47.002 49.002 Occupancy 95,1% 46,5% 60,7% 75,0% 89,2% 93,0% Average Occupancy 95,1% 46,5% 53,6% 67,8% 82,1% 91,1% Parking 368 371 380 384 390 396

43

Sales conversion Average sqm sales Renewal metrics Bell curve

NET ABSORPTION FORECAST MODEL

SLIDE 44

Second & third dimension: existing and prospective tenant data

CUSTOMER PROFILE SIRIUS CRM PLATFORM PROSPECT INTELLIGENCE SIRIUS SAP PLATFORM CUSTOMER INTELLIGENCE NEW TENANT PROFILE

> 13 years of data 155,000 prospects 19,000 JV prospects 11,500 leads > 200 sqm >10 years of data 13,588 customers 1,693 JV customers

SEARCH PATTERNS REQUIRED SIZES SPACE USAGE SERVICES USAGE REGIONAL PREFERENCES TYPE OF INDUSTRIES PAYMENT BEHAVIOUR LEASE LENGTH REASON FOR LOST OR PURCHASE EXPANSION & RENEWAL PATTERN REVENUE PER CUSTOMER

44

SLIDE 45

Tactical execution: Use of new tenant profile to mine internal & external data sources

Define Identify Follow Capture

New tenant profile New tenant leads

siriusfacilities.com Mylager.de fcbc.de B1businesspark.de Meetinn.de 3rd Party property marketplaces eg.IS24

MEDIA Display audience extension (online media, platforms, etc) Social media (LinkedIn & co)

45

SLIDE 46

Importance of data analysis

“We can have all the knowledge in the world, but it means nothing without the wisdom to know what to do with it.”

Marie Osmond

“Knowledge is only potential

power. It becomes power only

when, and if, it is organised into definite plans of action, and directed to a definite end.”

Napoleon Hill

46

SLIDE 47

Summary

Sirius data intelligence is 3 dimensional- property, customer and prospect data Sirius is not giving knowledge away (our data platforms are built and analysed inhouse)

47

Sirius develops models to capture the most value in the right place with the right customer

SLIDE 48

Field Operations Rüdiger Swoboda

Joint Managing Director, Sirius Facilities GmbH

48

SLIDE 49

The Sirius platform in Germany

Acquisitions Team

Property acquisition

Marketing Team

Generating leads

Asset & Property Mgt.

Strategic & operational

National Sales Team

Top 100 tenant management

Development Team

Building measures

Service Charge Team

Reconciliation on service charge

Sales Inbound Team

Scheduling appointments

Finance, IT, HR, Legal Support

250

Employees

49

at

60

Locations

SLIDE 50

Current investments

Frankfurt 13 0.3 88.5% 19.5 24% Berlin 6 0.2 91.9% 12.7 15% Stuttgart 7 0.3 85.9% 12.2 15% Cologne 7 0.1 87.1% 9.4 11% Munich 2 0.1 80.6% 6.6 8% Düsseldorf 8 0.1 73.5% 5.2 6% Hamburg 2 0.1 58.0% 1.5 2% Non-core 1 0.1 17.9% 0.5 1% Other 9 0.3 78.5% 14.5 18%

TOTAL 55 1.5 81.2% 82.0 100%

Sept-18

No. Of

Properties Total Sqm m Occupancy Annualised Rent € m

% of Portfolio By Rent

50

SLIDE 51

Titanium starting portfolio

Due to go live 01.07.2019

51

Ber Berlin lin Temp empelho elhof Ber Berlin lin Bor Borsig sig Bayr Bayreuth euth Nür Nürnbe nberg g Mainz Mainz

20% 56% 18% 6% 20% 56% 18% 6% 12% 66% 16% 6% 30% 31% 33% 6% 48% 8% 32% 12%

Office Industrial Storage Other

SLIDE 52

Sirius - AXA Joint Venture

Titanium Portfolio

65% 35%

Sirius plans to increase its own portfolio value from currently c.€1 billion . . Sirius Facilities will manage and acquire properties in the name

f AXA

The Titanium portfolio will be complementary to the Sirius portfolio

52

SLIDE 53

Joint Venture support

Joint V

int Ventur

enture e Titanium Titanium Operations Yield Management IT Asset Management Acquisitions Sales Finance HR Marketing

53

SLIDE 54

Investment profile

54

INVESTMENT STRATEGY INVESTMENT VOLUME MACRO REGION MICRO LOCATION ASSET TYPE ASSET CONDITION

Value-add & opportunistic
Significant asset management potential
Single investments €10 – 50 m*
Towns on and around the edge of the Top 7 cities, as

well as selected towns near to the German border (Aachen, Saarbrücken) ▪ Nearer to the city centre ▪ Neighbourhood dominated by commerce, industry and office use ▪ Linked to good public transportation and highways Mixed use properties (Office / Storage / Production / Service)

Light industrial on the edge of town
Business parks on the edge of town
Office buildings on the edge of town
Significant vacancy (up to 100%)
Assets with development and refurbishment opportunities
Sub-optimal space

TIT TITAN ANIU IUM

▪ Core+ ▪ Focus on stable cashflows

Low vacancy

▪ Assets with good building fabric and low refurbishment and development opportunities ▪ Open land with significant development

pportunities

▪ Single-Investmemnts > €50 m ▪ Portfolios €50 – 100 m ▪ Towns on and around the edge of the top 7 cities

Outside city centre/ edge of town
Neighbourhood dominated by commerce, industry and office use
Linked to good public transportation and highways

Mixed use properties (Office / Storage / Production / Service) ▪ Light industrial ▪ Business parks ▪ Office buildings

*Please note that investment volumes above are indicative, they do not represent definitive ranges and they are merely intended to give an indication of which investments are most likely to go into the Joint Venture. There are likely to be exceptions to the above particularly where new sites are situated close to existing sites.

SLIDE 55

Investment focus

HAMBURG DÜSSELDORF FRANKFURT STUTTGART BERLIN MÜNCHEN 55

Complimentary New

Aachen Bochum Dresden Essen Hannover Mainz Mannheim Nürnberg Wiesbaden Dortmund Heidelberg Karlsruhe Leipzig Ludwigshafen Rüsselsheim Ulm Pforzheim Würzburg

Towns around the

TOP OP 7 7 cities cities

KÖLN

SLIDE 56

56

Purpose Explain the investment criteria - how it differs Titanium / Sirius Result More than 250 attendees Substantial increase of investment opportunities

Broker events

April 2019 – key 7 cities / events

SLIDE 57

How we operate on ground

Acquisitions April 2018 to March 2019

Viewings 90 LOIs 37 Desk evaluation 600 = 1% Conversion rate

6

Refurbishment need Core + Stable cash flows Low vacancy Open land development

pportunity

Value-add &

pportunistic

Focus on asset management potential Sub-optimal space

57

>2% >2% Tita Titaniu nium

SLIDE 58

How we operate on ground

Lead allocation April pril 2018 2018 to to Mar March h 2019 2019

11,076 Viewings scheduled 8,772 Viewings

1,718 new Tenants

14,400 Leads = 12 % Conversion Rate

Large customer Long WAULT Development of vacant land Medium & small customer Medium & short WAULT Service intensive Building refurbishment

58

>15 >15 %

Minimal service requirements

Tita Titaniu nium

SLIDE 59

How we operate on ground

Pr Produ

duct

ct of

ffering

ering

BV BV BV BV

Titan Titanium ium

SLIDE 60

What the Joint Venture brings to Sirius?

High Higher er over erall all sale sale co conver ersi sion

n

AXA exp xper erts ts in in pr prop

per

erty ty – kn knowledg ledge e tr tran ansf sfer er

4 1

Bette etter r ac acqu quis isiti ition

n
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2

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f

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3

60

Wider ider selection selection of

f ass

assets ets to to cr cross

ss sell

sell ten tenan ants ts into into

5

SLIDE 61

Conclusion Andrew Coombs

Chief Executive Officer, Sirius Real Estate

61

SLIDE 62

Conclusion

3

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by asset & asset & pr prop

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capital pital – abili bility ty to to close big lose bigge ger dea r deals ls in in pa partne tnership ship

4

62

SLIDE 63

Conclusion

63

1-

Aim to own & operate €1 billion of investment property – now complete

2-

Reinvest proceeds of JV & complete current capex investment programmes

3-

Grow FFO to €100m – medium term ambition

With strong and sustainable income growth Sirius is well positioned to continue making double digit total shareholder returns going forward

SLIDE 64

Questions

64

SLIDE 65

Lunch

65

SLIDE 66

66

Sirius Real Estate is proud to be a constituent of the EPRA, SAPY, FTSE SmallCap and MSCI Small Cap indices.