Innovative. Company presentation July 2020 Positioning | Business - - PowerPoint PPT Presentation

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Innovative. Company presentation July 2020 Positioning | Business - - PowerPoint PPT Presentation

FCR Immobilien AG Profitable. Strong growth. Innovative. Company presentation July 2020 Positioning | Business model FCR: Commercial real estate specialist on two pillars Clear positioning Two-pillar business model Focus on commercial real


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FCR Immobilien AG

Profitable. Strong growth. Innovative.

Company presentation July 2020

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Positioning | Business model

FCR: Commercial real estate specialist on two pillars

+

1st pillar

Income from: ✓ Sales (FFO2)

Portfolio management New / further development and trading 2nd pillar

Income from: ✓ Rental (FFO1)

Clear positioning

Focus on commercial real estate at established secondary locations in Germany | Food markets with good credit ratings as anchor tenants Holistic added value through acquisition, active asset management and divestment

Positive general conditions

▪ High initial returns (9% - 10%) ▪ Acquisition volumes between €1 and 25 million, or up to €100 million for very promising opportunities ▪ High initial LTV for existing properties (target up to 80%), quick dismantling through repayments (3% - 6%) ▪ Hardly any cannibalising effects from online business (online share in food retail is 1%)

Two-pillar business model

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Business strategy

Sustainable growth through stringent processing of attractive markets and segments

Consistent market penetration (Development of market position)

Growth strategies Markets

Germany Retail

Selective, profit-

  • riented market

development (Complement business model)

Seg- ments

Continuous business development based on existing success factors: ▪ First-rate know-how ▪ Long-term experience ▪ Broad network Office Logistics Residential Austria

+

96.0% 4.0%

FCR generates 96% of its earnings in the German market. FCR is represented in Germany in all federal states. Asset class „Retail“ is the undisputed leader in the FCR portfolio.

Germany 17,0% 14,5% 14,4% 12,6% 10,8% 8,6%7,6% 4,0% 2,2%2,1%1,3%0,6% 0,3%

Lower Saxony North-Rhine… Baden-… Saxony Thuringia Brandenburg Saxony-Anhalt Bavaria Mecklenburg-… Schleswig-… Rhineland-… Saarland Berlin 75,5% 8,9% 6,9% 5,3% 3,4%

As of: 2020 YTD Basis: Actual net rental income annualized Outside Germany (A, I, ES)

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Board | Supervisory Board

Experienced management team

Falk Raudies Founder and CEO Hanjo Schneider Deputy Chairman of the Supervisory Board Ludwig A. Fuchs Supervisory Board Professor Dr Franz-Joseph Busse Chairman of the Supervisory Board

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Business development 2020 | COVID-19

The corona crisis has only a moderate impact on FCR's core business

▪ Good positioning due to portfolio structure with focus on food markets: The core of the FCR business was only moderately affected, most of the rental revenue was generated in the retail sector with a focus on food and local suppliers as well as office and logistics, i.e. in areas that were not affected by closures ▪ Partnership-based tenant management / active asset management: Early conclusion of individual agreements with tenants who were affected by a closure ▪ Potential risks for the period from April to June 2020: Current deferral volume for the months of April and May of €250 thousand, no loss of rent reported to date ▪ Good starting point for further profitable growth: Investment processes are still running, pipeline well filled, inventory development successful

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11 12 18 41 58

76

83

20 40 60 80 100

2014 2015 2016 2017 2018 2019 2020 YTD

Business development 2020 | Real estate portfolio – key figures YTD (1/2)

Portfolio expanded further, successful portfolio development

Real estate portfolio development (Number of properties) Development of acquired and sold properties (Number of properties)

23 112

3 10 Sold properties Acquired properties

2020 YTD 2014-2020 YTD

Market value: €308 million

10 acquisitions

Property Segment Brandenburg Logistics Cadolzburg Retail Gummersbach Retail Höchstadt Retail Jüterbog Retail Landau Retail Schwalbach Retail Schwandorf Retail Strullendorf Retail Teistungen Retail

3 sales

Property Segment Aue Retail Lichtentanne Retail Stuhr Retail

31 rental contracts

Berlin Brandenburg Ehrenfrieders. Gera Glückstadt Gummersbach Hambühren Hof Magdeburg Nienburg Oer-Erkenschw. Schleiz Strullendorf Weidenberg Zeithain Zeulenroda

Transaction Management Asset Management Expansion of property portfolio (net increase: 7 properties) leads to higher annualized rental income of approx. €1.2 million. New contracts and early extensions of contracts have resulted in approx. €5 million in revenue secured. New contracts / Contract extensions

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➢ Existing property (core) ➢ New developments ➢ Project developments ➢ Income from

  • pportunistic sales

Business development 2020 | Real estate portfolio – key figures YTD (2/2)

Two-pillar earnings model successfully expanded

Properties

Market value and rent in € million, yield in percent

Income from: No. Market value Actual net rentals Pot. net rentals Actual net rental return p.a. Potential net rental return p.a. Existing property Rental / Sales 76 256.1 19.3 21.7 7.6 85 New and project developments, income from

  • ppportunistic

sales 1 Sales 7 51.4 1.2 1.2 Total Rental / Sales 83 307.5 20.5 22.9 ➢ Existing property (core) +

=

Income from Rental of: Income from Sales of:

The FCR formula for stability and growth:

Dynamic development of the FCR real estate portfolio follows a sustainable, potential-oriented and two-pillar earnings model for the continuous increase in sales

1 Wismar, Bamberg, Frankenberg, Monument (ES),

Il Pelagone (I), Suiten am Schloss (A), Westerburg (D)

Continuous increase

  • f sales

Turnover FCR

As of: 2020 YTD

Predicted profit

(Proceeds from sale less acquisition / development costs)

  • Approx. €14 million

Multiple: 13.2 WAULT: 5.3 years

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3,3 12,7 12,1 16,4 37,3

49,6 9,9 20 40 60

2014 2015 2016 2017 2018 2019 Q1 2020

Turnover (in € million)

Business development 2020 | Key financial indicators | FCR Group

Growth since the beginning, new records in 2019, successful start

2014 to 2017: Audited consolidated annual financial statements to HGB (German Commercial Code) 2018: IFRS comparative value 2019: Audited consolidated annual financial statements to IFRS (all properties assessed by expert opinion from intargis GmbH, Cologne, Germany) 2020: Untested Q1 numbers according to IFRS

YOY

(2018- 2019) + 33% HGB IFRS

1,1 3,0 2,3 3,7 7,1

18,1 3,4 5 10 15 20

2014 2015 2016 2017 2018 2019 Q1 2020

EBIT (in € million)

YOY

(2018- 2019) + 155% HGB IFRS

1,5 3,7 3,1 4,9 7,6

18,5 3,5 5 10 15 20

2014 2015 2016 2017 2018 2019 Q1 2020

EBITDA (in € million)

YOY

(2018- 2019) + 143% HGB IFRS

0,8 1,9 0,8 1,3 2,8

11,9 1,5 5 10 15

2014 2015 2016 2017 2018 2019 Q1 2020

EBT (in € million)

YOY

(2018- 2019) + 325% HGB IFRS

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Business development 2020 | Further key financial indicators | FCR Group

Successful start to the 2020 financial year

EPRA-NAV/share: €11.08

FFO1 and FFO2 (in € million)

Q1 2020 FFO1 1.1 FFO2 (incl. revenues from sales) 1.8 26,7 50,2 75,3 100,0

101,4 50 100 150

2016 2017 2018 2019 Q1 2020

EPRA-NAV (in € million)

▪ FCR sold two properties in the first quarter of 2020 ▪ Selling prices were above the balance sheet valuation, which resulted in an earnings contribution of €0.2 million ▪ Rental income rose by 37.3 percent in the quarter compared to the previous year to approx. €5.2 million (without additional costs)

FCR is already profitable from portfolio management Continuous increase of the net asset value

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Business development 2020 | Capital market (1/2)

New 4.25% bond in the placement, further bonds with a volume of €70 million have already been placed

4.25% bond 2020/2025

In the placement WKN A254TQ ISIN DE000A254TQ9

▪ Issue volume: up to €30 million ▪ Dividend coupon: 4.25% p.a. ▪ Interest payment: quarterly ▪ Maturity: 01/04/2025 ▪ Collateral: registered land debt ▪ Listing: Frankfurt stock exchange

Frankfurt stock exchange

Market price 99.75

26/06/2020

5.25% bond 2019/2024

Fully placed (€30 million) WKN A2TSB1 ISIN DE000A2TSB16

▪ Issue volume: up to €30 million ▪ Dividend coupon: 5.25% p.a. ▪ Interest payment: semi-annually ▪ Maturity: 29/04/2024 ▪ Collateral: registered land debt ▪ Listing: Frankfurt stock exchange

6.00% bond 2018/2023

Fully placed (€25 million) WKN A2G9G6 ISIN DE000A2G9G64

▪ Issue volume: up to €25 million ▪ Dividend coupon: 6.00% p.a. ▪ Interest payment: semi-annually ▪ Maturity: 20/02/2023 ▪ Collateral: registered land debt ▪ Listing: Frankfurt stock exchange

7.10% bond 2016/2021

Fully placed (€15 million) WKN A2BPUC ISIN DE000A2BPUC4

▪ Issue volume: up to €15 million ▪ Dividend coupon: 7.10% p.a. ▪ Interest payment: annually ▪ Maturity: 18/10/2021 ▪ Collateral: registered land debt ▪ Listing: Frankfurt stock exchange

Frankfurt stock exchange

Market price 95.50

26/06/2020 Frankfurt stock exchange

Market price 99.00

26/06/2020 Frankfurt stock exchange

Market price 98.50

26/06/2020

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Business development 2020 | Capital market (2/2)

FCR share on the stock exchange

Share master data

ISIN / WKN DE000A1YC913 / A1YC91 Ticker symbol FC9 Market place Xetra and Frankfurt, Segment Scale Munich (m:access) First listing 07/11/2018 Total number of shares 9,146,404 non-par value registered shares (ordinary shares) Registered share capital €9,146,404 Share price (26/06/2020) €10.90 Market capitalisation

  • Approx. €100 million

Designated Sponsor BankM AG, Oddo Seydler Bank AG Research ▪ SMC Research (03/03/2020): recommendation to buy, target price €14.40

Shareholder structure

68.3% 22.9% 8.8%

RAT Asset & Trading AG FAMe Invest & Management GmbH Free float

FCR share

Market place: Xetra

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Business Development| Digitalisation and artificial intelligence

FCR: One of the most innovative real estate companies in Germany

With KI³, FCR is developing a comprehensive future programme with a focus on digitalisation and artificial intelligence to enhance our ability to act even faster, more efficiently and thus to be even more profitable on the market. FCR innovations form the core in this regard and secure an essential, sustainable competitive advantage. We strive to be perceived as Germany’s most innovative real estate company on the market.

Development and implementation of a new, holistic ERP and CRM software with artificial intelligence ("FCR intranet"), in use at FCR since 2019, ongoing further development

Covering the entire value- creation chain Purchase and sales

▪ Calculation and analysis tools for location and profitability ▪ Banking inquiries ▪ Automatic up-load in portals

Innovative concepts …A comprehensive, high-performance range of services New technologies

…enable... ✓ Cooperation with the largest data providers in Germany ✓ Over 10 million location- and property- specific data integrated in the FCR system ✓ In the field of AI: analysis and scoring of

  • bject-related data (e.g. purchase prices)

and demographic factors (e.g. age, gender, marital status, place of residence, nationality, income, occupation) ✓ Strategic equity investment in Immoware24 (cloud-based property management tool) Asset Management

Automated services at: ▪ Marketing of vacant space on portals ▪ Rental requests ▪ Communication with property managers ▪ Open item list control, incl. dunning ▪ Cash flow calculations

On-stop corporate management Management Dashboard

Up-to-date reporting and approval functions, for example: ▪ Alarm function for all expiring contracts ▪ Detailed overview of existing properties ▪ Purchase activities / LOIs ▪ Financing ▪ Expiring leases, letting activities ▪ Sales activities ▪ Offers, contracts ▪ Commissions ▪ Invoices ▪ Liquidity planning

Integration of corporate / support units Finance & Controlling

▪ Loan table ▪ Liquidity planning ▪ Invoice processing

HR / Organisation

▪ Employee administration ▪ Employee self-services ▪ Administration of operating an office equipment ▪ DMS

Marketing

▪ Overview of online marketing ▪ Newsletter administration ▪ Social Media ▪ User behavior

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Business development 2020 | New business activities

New from August 2020: “FCR Intranet” as a white label solution also available to third parties

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We optimize the real estate business for third parties!

Covering the entire value- creation chain Purchase and sales

▪ Calculation and analysis tools for location and profitability ▪ Banking inquiries ▪ Automatic up-load in portals

Comprehensive, high-performance range of services

Asset Management

Automated services at: ▪ Marketing of vacant space on portals ▪ Rental requests ▪ Communication with property managers ▪ Open item list control, incl. dunning ▪ Cash flow calculations

On-stop corporate management Management Dashboard

Up-to-date reporting and approval functions, for example: ▪ Alarm function for all expiring contracts ▪ Detailed overview of existing properties ▪ Purchase activities / LOIs ▪ Financing ▪ Expiring leases, letting activities ▪ Sales activities ▪ Offers, contracts ▪ Commissions ▪ Invoices ▪ Liquidity planning

Integration of corporate / support units Finance & Controlling

▪ Loan table ▪ Liquidity planning ▪ Invoice processing

HR / Organisation

▪ Employee administration ▪ Employee self-services ▪ Administration of operating an office equipment ▪ DMS

Marketing

▪ Overview of online marketing ▪ Newsletter administration ▪ Social Media ▪ User behavior

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Business development 2020 | Outlook (1/2)

Despite the general economic uncertainties, FCR plans to continue to grow significantly

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Real estate portfolio

Continued clear focus on core business and two-pillar model From August 2020: “FCR intranet” as a white label for external market participants Concentration on the German and Austrian market Inorganic growth: acquisition of real estate Significant increase in real estate portfolio

Turnover and earnings

Results continue to rise

Capital market

Up-grade exchange segment: change in the regulated market

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Business development 2020 | Outlook (2/2)

Financial Calendar 2020

15 19/02/2020 ✓ Preliminary figures of the 2019 financial year 10/03/2020 ✓

  • 32. Prior Capital Markets Conference

21/04/2020 ✓ Publication of audited annual financial statements 2019 28/04/2020 ✓

  • 29. MKK Munich Capital Markets Conference (Online)

25/05/2020 ✓ Interim report on Q1 2020 28/05/2020 ✓ General Meeting FCR Immobilien AG (Online) 18/06/2020 ✓ Real estate conference, Munich stock exchange (Online) 01-02/07/2020 ▪ 1on1 Summer Summit (Online) August 2020 ▪ Half-yearly financial report 2020 25/09/2020 ▪ 2nd Baader Small-Cap Day, Munich 14-15/10/2020 ▪ EXPO REAL Hybrid Summit, Munich / Online November 2020 ✓ Interim report on Q3 2020 16-18/11/2020 ▪ German Equity Forum, Frankfurt 08/12/2020 ▪

  • 29. MKK Munich Capital Markets Conference

Stand: Juni 2020

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FCR Immobilien AG Contact

Falk Raudies CEO FCR Immobilien AG, Paul-Heyse-Straße 28, 80336 Munich, Germany Telephone +49 89 413 2496 10 Email f.raudies@fcr-immobilien.de www.fcr-immobilien.de

Disclaimer: this document is not a prospectus for the purposes of German capital market laws nor an offer requiring a prospectus or a public offering. It does not contain any express and/or implied warranties, promises or commitments on the part of FCR Immobilien AG or the companies associated with FCR Immobilien AG. All assumptions and calculations are based on careful research. Notwithstanding all due care, deviations from the stated assumptions may occur. We do not assume any liability for the realisation of the yield and liquidity projections, for future changes of actual, economic, legal, tax or other general conditions nor for the accuracy and completeness of the information provided in this document.