First quarter 2020 results presentation Berlin 18 May 2020 Todays - PowerPoint PPT Presentation

First quarter 2020 results presentation Berlin – 18 May 2020

Today’s presenters Thierry Beaudemoulin Maximilian Rienecker Co-Chief Executive Officer Co-Chief Executive Officer Operations & Development Financial Management & Capital Markets 2

Agenda 1 Takeover of ADLER completed and next steps Well diversified €8.6bn German residential portfolio 2 3 First quarter 2020 results Update on developments 4 Outlook 5 Appendices 6 3

Developments on Mietendeckel and COVID-19 ◼ On 6 May, politicians of a combination of CDU/CSU and FDP – supported by 200 members of the Parliament - have asked Germany’s Fe deral constitutional court to review the legal grounds of the Berlin government’s decision to freeze rents for five years (“ Normenkontrollverfahren ”) ◼ CDU indicated to challenge the Mietendeckel as it is a clear violation of landlord’s rights Lawsuit against Mietendeckel ◼ FDP highlighted that it is of the opinion that the Berlin government does not have the right to impose such regulation as it cannot supersede initiated national legislation ◼ With c.29% of our rental income coming from our Berlin residential assets, we clearly support these efforts as we find the Mietendeckel to be infringing the German constitution ◼ German authorities have eased the rules for short time work: employees will receive 60% to 67% of their net income for non-worked hours and requirements for obtaining a housing allowance are also being relaxed and the process is simplified ◼ Rent deferrals relating to COVID-19 currently stand at 1.7% of the combined monthly rent, mainly coming from our commercial units, put in perspective, the rent deferrals amount to c€500k per month and constitute 0.1% of our residential - and 16.5% of our commercial rents COVID-19 ◼ Our first concern is for the safety and well-being of our employees and tenants ◼ We encourage employees working from home and providing support to our tenants digitally as much as possible ◼ When visiting apartments or commercial units, we ask our employees keeping appropriate distance and wear protective equipment ◼ We anticipate no material COVID-19 impact on FFO for 2020 and expect rental growth outside Berlin to continue ◼ We have a strong liquidity position with around €489m in cash at hand as per 1Q20 Business continuity ◼ We have no major refinancing events until December 2021, when a €500m bond matures ◼ At 1Q20 our combined portfolio is valued at €1,633 per square meter , which we deem a resilient valuation 4

1. Takeover of ADLER completed and next steps

1. Public offer for ADLER – key milestones Date Key achievements and activities ▪ Announcement of transaction for ADLER and 22% of Consus 15 December 2019 ▪ Publication of offer document and start offer period 7 February 2020 ▪ End of initial acceptance period | 82.82% of shares tendered 6 March 2020 ▪ Start of additional acceptance period 12 March 2020 ▪ End of additional acceptance period | 91.93% of shares tendered 25 March 2020 ▪ Settlement 9 April 2020 Next steps: ▪ €500m rights issue Q2/Q3 2020 ▪ Domination agreement entering into effect September 2020 ▪ Period to exercise call option for c.51%* in Consus Until June-2021 * Prior to announcement of contribution in kind 6

1. Successful public offer for ADLER Acquisition Financing secured Integration started Next steps completed ▪ €3.5 billion (100%) of ADLER ▪ ▪ ▪ Settlement executed on 9 April Maximilian Rienecker Launched public offer for debt secured via waivers of 2020 appointed as Co-CEO of ADO remaining 3.1% Westgrund change of control on 9 April 2020 shares with an anticipated cash ▪ 100% of €2bn unsecured bonds ▪ out of around €30m based on 95% of ADLER shares 100% of €1.5bn secured debt ▪ ▪ controlled after the final Integration process and last NAV, hence no material acceptance period synergy realization started effect on leverage is expected. ▪ Non-Euro bonds repurchased The acceptance period expires ▪ On 16 April 2020 ADO’s weight ▪ Operational synergies on 3 June 2020. ▪ €116 million of July 2021 in the FTSE EPRA Nareit potentially realized ahead of ADLER convertible bonds not schedule, €6.5m run rate ▪ Developed Europe index Timing of ADO rights issue converted increased to 0.50% from 0.30% expected for 2020 subject to market conditions ▪ No major refinancing until ▪ ▪ On April 28 th , the board Potential inclusion in the MDAX December 2021 authorized to initiate the index envisaged process for entering into a ▪ €489 million of cash at hand in ▪ Domination Agreement with Call option for c.51%* Consus the combined group ADLER runs until June 2021 * Prior to announcement of contribution in kind 7

1. Consus divests 17 development projects with a €2.3bn GDV ◼ Consus has sold 17 development projects with a GDV of €2.3bn to Gröner Group GmbH Sale of €2.3bn ◼ Sold portfolio includes primarily projects in non-core locations projects ◼ The projects sold have over 50% planned as commercial areas ◼ Portfolio sold at a more than 10% premium to market values as at 31 December 2019 Realising a premium over book value ◼ Demonstrating potential for further upside value in the Consus portfolio ◼ Total GDV decreased from €12.3bn to €10.0bn Increased strategic ◼ Top 9 German cities account for over 95% of the portfolio post sale focus ◼ Residential real estate increased to 57% post sale ◼ Full ownership of Consus RE AG subsidiary post sale Simplified corporate ◼ Preliminary consideration of €27.5m cash and 24.75m Consus shares structure ◼ Christoph Gröner to resign as supervisory board member of Consus RE AG ◼ Total net debt reduction of €690m including: Significant leverage ◼ Around €475m of project debt to move to the acquirer reduction ◼ LTV will be reduced as the gross book asset value will decrease in a similar proportion to the GDV reduction 8

2. €8.6bn German residential portfolio

2. Well diversified €8.6bn German residential portfolio Creating a well balanced geographical portfolio of ADO and ADLER Development of number of units over time 1 100,000 ADLER Real Estate ADO Properties Gewobag 5,900 units 80,000 75,810 60,000 40,000 20,000 0 2015 2016 2017 2018 2019 1Q20 Development of fair value of investment property over time (€m) 10,000 ADLER Real Estate ADO Properties €8.6bn 8,000 6,000 4,000 2,000 # units % value 0 2015 2016 2017 2018 2019 1Q20 1 Includes ADLER residential (including ground level commercial units) and ADO residential and ground level commercial 10

2. Top 13 cities account for 77% of the residential value Key portfolio metrics Key cities in a well diversified portfolio Fair Value Fair Value Lettable area *NRI Rental yield Vacancy Vacancy 1Q20 Avg. Rent NRI Location Units €m 1Q20 €/sqm 1Q20 €m 1Q20 Δ YoY €/sqm/month Δ YoY LFL sqm (in-place rent) 1Q20 ADLER 265 2,374 1,699 111,736 7.7 2.9% 3.3% 0.3% 5.97 1.5% ADO 3,658 2,999 17,508 1,219,716 109.7 3.0% 2.8% -0.7% 7.71 3.3% Berlin 3,923 2,946 19,207 1,331,452 117.5 3.0% 2.8% -0.6% 7.56 3.1% Leipzig 395 1,552 4,750 254,761 17.4 4.4% 4.6% -1.5% 5.96 5.5% Wilhelmshaven 395 970 6,894 406,579 23.6 6.0% 6.3% -1.6% 5.16 2.7% Duisburg 335 1,099 4,925 305,003 19.8 5.9% 2.7% -1.4% 5.56 2.6% Wolfsburg 137 1,562 1,301 87,614 6.6 4.8% 1.5% -3.2% 6.37 6.2% Göttingen 133 1,561 1,377 85,238 6.2 4.6% 1.8% -2.8% 6.14 6.0% Hannover 121 1,914 1,113 63,253 5.4 4.5% 2.3% -0.9% 7.28 1.0% Dortmund 115 1,129 1,770 102,251 7.0 6.1% 3.3% 0.1% 5.92 2.8% Kiel 103 1,548 970 66,768 5.4 5.2% 1.3% 0.7% 6.83 1.4% Halle (Saale) 92 866 1,858 105,895 5.6 6.1% 11.4% -1.4% 4.95 4.4% Essen 86 1,297 1,043 66,341 4.4 5.2% 4.0% 0.7% 5.82 1.3% Cottbus 85 777 1,868 110,045 5.9 6.9% 6.3% -1.1% 4.80 2.3% Bremen 75 2,041 578 36,869 3.5 4.7% 2.5% -0.8% 8.17 1.4% Top 13 total 5,996 1,984 47,654 3,022,069 228.2 3.8% 3.8% -1.0% 6.54 3.2% other 1,812 1,030 28,156 1,759,530 106.4 5.9% 8.0% 0.0% 5.52 1.4% Total* 7,808 1,633 75,810 4,781,600 334.7 4.3% 5.3% -0.4% 6.18 2.7% Vacancy in the top 13 locations improved significantly YoY by 1.0% to 3.8% at the end of 1Q20 * Annualized NRI | Excl. Developments (Schönefeld, Dresden, Späthstraße, Potsdam, Berlin Röbellweg, Eurohaus, Grafenberg and Grafental rental), Riverside, BCP Commercial and inventories. 11 Figures as of 31-3-2020

3. First quarter 2020 results