Q3 2019 results presentation November 2019 1 Agenda Introduction - - PowerPoint PPT Presentation

SLIDE 1

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ADLER Real Estate AG: Q3 2019 results presentation

November 2019

SLIDE 2

Agenda

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Financial performance

3

Operational performance

2

ADLER Real Estate in the Capital Markets

4 1

Introduction and executive summary Guidance

5

Appendix

6

SLIDE 3

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• 1. Introduction and executive summary

SLIDE 4

Q3 2019 highlights

4

■ Like-for-like rental growth of 2.7%, average in-place rent increased to €5.57 per sqm/month as of Q3 2019 (Q3 2018: €5.45 per sqm/month) ■ Vacancy marginally reduced QoQ by 0.1ppts to 6.3% as of Q3 2019* ■ Increase in FFO I (+12.9%) from €54.9m in Q3 2018 to €62.0m in Q3 2019 ■ Fully diluted FFO I per share in Q3 2019 at €0.78 (Q3 2018: €0.70) (+11.4%) Operating data Financing and LTV ■ WACD stands at 2.05% as of Q3 2019 (Q3 2018: 2.24%) ■ YoY LTV reduction of 10.1 ppts to 56.2% as of Q3 2019. Guidance for FY 2019 of c.55% and long term target of 50% Valuation and EPRA NAV ■ Fair value of investment properties (incl. inventories) as of Q3 2019 amounted to €4,904.2m (2018: €5,077.1m). Decrease due to disposal of part of the retail portfolio and development in Düsseldorf. ■ Fully diluted EPRA NAV (excluding goodwill) per share reached €23.91, increasing by +15.1% on FY 2018 (€20.77) Acquisitions / Disposals and

• ther

■ 100% shareholder approval and merger control clearance for ADO Group merger achieved. Merger is expected to close between 8-10 December 2019 ■ Non-core residential portfolio sold in December 2018 – c.3,700 units with GAV of €179.2m sold at c.3% premium ■ Year to date c.71% of BCP’s retail portfolio sold (GAV of €341.1m) at c.3.0% discount to ADLER’s current book value

Note: 1 Realignment of economical vacancy with physical vacancy, therefore vacancy rate in 2019 higher than at the end of 2018.

SLIDE 5

5

ADLER Real Estate at a glance

Note: 1 In percentage of gross asset value (“GAV”; investment properties and inventories)

2 In percentage of total number of units of residential portfolio 3 Riverside / Wasserstadt-Mitte, Berlin development project is currently valued at €409.5m and is due to be completed by the end of 2019. Further information on page 12

Company description Total portfolio sector split1

• ADLER Real Estate AG is one of Germany’s leading residential property companies owning c.58k

residential units primarily located in Germany’s core regions and focusing on affordable housing

• The portfolio has considerable upside potential embedded; rent uplifts, vacancy reduction and

revaluation gains

• ADLER’s currently benefits from favorable market dynamics in German core regions ensuring recurring

and predictable returns

• ADLER selectively engages in residential developments in order to complement and diversify the existing

portfolio at attractive returns by developing multi-use projects

• ADLER clearly focuses on value creation through a combination of organic growth and buy-and-build
• strategies. In recent years, the company has shown significant acquisitive growth, the latest one of size

being Brack Capital Properties N.V. in April 2018

Total residential portfolio geographical split2 Residential portfolio KPIs

Completed by the end

• f 2019

Number of units 58,089 Rentable area (sqm) 3,546, 609 Fair value (€/sqm) 1,139 Average rent (€/sqm/month) 5.57 Rental yield (%) 5.5% Vacancy (%) 6.3% LfL rental growth (%) 2.7%

Residential portfolio 83.1% Retail Parks 3.2% Residential Development 5.3% Berlin Riverside³ 8.4%

Total GAV €4.9bn

31.5% 23.8%

3.3% 16.7% 6,7% 2.9% 6.2%

North Rhine-Westphalia 13,812 Lower Saxony 18,310 Berlin 1,699 Brandenburg 3,592 Saxony-Anhalt 3,877 Saxony 9,672 Thuringia 1,938

Other units 843 1.4 %

2.6%

Bremen 1,516

3.1%

Schleswig-Holstein 1,804

1.8%

Mecklenburg-Pomerania 1,026

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Finalised internalisation driving operational improvements

• 2. Operational performance

SLIDE 7

Operational performance significantly improved following internalization of property and facility management…

7 Total number of residential units* Investment properties Residential portfolio vacancy rate Residential portfolio LfL rental growth (YoY) Residential portfolio FV per sqm Residential average rent (€/sqm/month)

Residential Retail

Note: * Residential portfolio only; includes commercial units on ground floor within the multi-family buildings

24,086 48,218 47,662 46,179 58,113 58,089 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2014 2015 2016 2017 2018 Q3 2019

4,578 4,749

1,171 2,235 2,442 3,022 5,077 4,904 1,000 2,000 3,000 4,000 5,000 6,000 2014 2015 2016 2017 2018 Q3 2019 €m 732 735 817 928 1,095 1,139 200 400 600 800 1,000 1,200 2014 2015 2016 2017 2018 Q3 2019 €/sqm 0.3% 1.2% 1.5% 3.8% 3.4% 2.7% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 2014 2015 2016 2017 2018 Q3 2019 5.02 4.93 5.04 5.21 5.49 5.57 4.60 4.80 5.00 5.20 5.40 5.60 5.80 2014 2015 2016 2017 2018 Q3 2019 €/sqm/month 12.8% 11.2% 8.6% 7.9% 6.0% 6.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2014 2015 2016 2017 2018 Q3 2019

SLIDE 8

Growing property portfolio

8 Overview of top cities (Residential portfolio) ▪ Top 20 locations account for c. 66% of total portfolio in terms of GAV

ADLER Real Estate portfolio at a glance

Overview

v

■ Wilhelmshaven is ADLER´s TOP location concerning number of

• units. The demographic

development in the last four years has been stable given the ever-increasing use of the Jade- Weser Port, Germany’s only deep-sea harbor, and the increasing importance of the naval base Wilhelmshaven. Further increases in the population can be expected in the future. ■ In locations with vacancy rates above 10%, ADLER has targeted tenant improvement capex measures.

Source: ADLER Research

Location Units Lettable area sqm NRI €m Q3 2019 NRI

€/sqm/month

Q3 2019 NRI

€/sqm/month

Q3 2018 YoY NRI Δ

€/sqm/month

Vacancy rate Q3 2019 Vacancy rate Q3 2018 YoY vacancy Δ Fair Value €m Q3 2019 Fair Value €/sqm Q3 2019 Rental yield (in- place rent) Wilhelmshaven

6,896 406,713 23.2 5.12 5.05 1.6% 7.1% 6.6% 0.5% 382.1 939 6.1%

Leipzig

4,749 254,781 16.8 5.82 5.66 2.8% 5.4% 5.3% 0.0% 380.8 1,495 4.4%

Duisburg

4,925 305,003 19.7 5.53 5.40 2.4% 2.9% 3.4%

• 0.6%

327.8 1,075 6.0%

Berlin

1,699 111,736 7.7 5.94 5.82 2.1% 3.0% 3.0%

• 0.1%

253.7 2,270 3.0%

Wolfsburg

1,301 87,614 6.4 6.27 6.09 3.0% 2.5% 6.1%

• 3.7%

132.4 1,511 4.8%

Göttingen

1,377 85,238 6.0 6.03 5.90 2.1% 2.8% 4.4%

• 1.6%

124.2 1,457 4.8%

Hannover

1,113 63,253 5.3 7.19 5.65 27.3% 3.0% 2.4% 0.6% 118.6 1,875 4.5%

Dortmund

1,770 102,251 7.0 5.82 6.91

• 15.8%

2.7% 5.0%

• 2.3%

111.7 1,092 6.2%

Kiel

970 66,768 5.4 6.75 6.59 2.5% 1.1% 1.9%

• 0.8%

96.7 1,448 5.5%

Halle (Saale)

1,858 105,895 5.5 4.91 4.79 2.5% 11.8% 14.6%

• 2.7%

88.6 836 6.2%

Essen

1,043 66,341 4.4 5.76 5.65 1.9% 4.3% 2.6% 1.7% 85.3 1,286 5.1%

Cottbus

1,868 110,045 5.9 4.77 4.68 1.8% 6.6% 14.4%

• 7.8%

84.5 768 7.0%

Düsseldorf

465 28,028 2.7 8.19 7.91 3.5% 3.0% 2.3% 0.8% 73.5 2,624 3.6%

Bremen

873 53,645 3.9 6.28 6.13 2.5% 3.3% 4.1%

• 0.8%

72.4 1,350 5.4%

Helmstedt

1,219 70,703 4.4 5.24 5.19 1.0% 2.0% 4.1%

• 2.0%

65.4 925 6.7%

Ludwigshafen

527 34,128 2.9 7.33 5.28 38.9% 4.4% 1.1% 3.3% 56.2 1,647 5.1%

Erfurt

642 38,847 2.6 5.89 5.86 0.4% 7.0% 8.3%

• 1.3%

55.9 1,438 4.6%

Velbert

718 48,041 3.0 5.74 5.68 1.2% 10.4% 5.5% 4.9% 55.3 1,151 5.4%

Oberhausen

819 62,642 3.7 5.09 7.04

• 27.7%

4.3% 4.7%

• 0.4%

53.7 858 6.8%

Norden

795 50,217 3.2 5.46 4.94 10.4% 2.6% 2.6% 0.0% 52.0 1,035 6.2%

Top 20 total 35,627 2,151,888 139.4 5.68 5.55 2.3% 4.9% 5.5%

• 0.6%

2,670.8 1,241 5.2%

• ther

22,462 1,394,721 81.7 5.40 5.29 2.1% 8.6% 8.7%

• 0.1%

1,367.6 981 6.0%

Total 58,089 3,546,609 221.1 5.57 5.45 2.3% 6.3% 6.8%

• 0.5%

4,038.3 1,139 5.5%

SLIDE 9

Capex, maintenance & modernisation

Increased capital expenditure leading to portfolio valuation upside and FFO accretion

9 Residential portfolio capex & maintenance (€m) Residential portfolio capex & maintenance (€/sqm)

■ In 2019, in addition to ongoing capex / maintenance ADLER will be spending an incremental €40-50m capex, of which €31.2m has already been deployed, for tenant improvement / vacancy reduction

Tenant improvement program in 2019 ADLER’s modernisation program – key measures

Modernisation project Investment volume IRR (levered) Completion Göttingen €150m 13% 3 years Wolfsburg €130m 13% 3 years

Capex Maintenance

• Modernisation of the facade with exterior insulation and finish system and

new windows

• Extension of the building with elevators
• Renewal of the entrance areas
• Modernisation of the fresh water with counter and sewage lines
• Modernisation of the stairways and electrical lines
• Roof renovation incl. improvement of thermal insulation
• Addition of a full floor with modern floor plans

Capex Maintenance 11.0 16.8 32.9 46.4 33.1 48.1 21.1 27.5 22.5 22.3 15.6 17.7 32.1 44.4 55.4 68.7 48.7 65.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 2015 2016 2017 2018 Q3 2018 Q3 2019 €m 4.35 5.62 10.46 12.11 11.50 17.99 8.40 9.18 7.15 5.81 5.42 6.62 12.7 14.8 17.6 17.9 16.9 24.6 0.00 5.00 10.00 15.00 20.00 25.00 2015 2016 2017 2018 Q3 2018 Q3 2019 €/sqm

■ Planning permissions are being obtained, modernisation projects expected to commence in Q2 2020

SLIDE 10

Developments breakdown

10 Developments currently under construction Future pipeline

Total construction costs

Düsseldorf, Gerresheim (Glasmacherviertel)

Gross area: 187,000 sqm Expected construction costs: 2,300 €/sqm Current status: Land development plan in proposal

Düsseldorf, Grafenberg (Zauberberg)

Gross area: 27,000 sqm Expected construction costs: 2,800 €/sqm Current status: Land development plan in proposal

Berlin, Schönefeld

Gross area: 304,000 sqm Expected construction costs: 2,400 €/sqm Current status: Land development plan in proposal

Dresden, Trachau

Gross area: 45,000 sqm Expected construction costs: 2,200 €/sqm Current status: Land development plan in proposal

Berlin, Riverside

GDV: €456.8m Units: 753

Düsseldorf, Grafental I

GDV: 88% of units sold, remaining GDV €79.4m Units: 855

Aachen, Tuchmacherviertel

GDV: €115.7m Units: n/a

Düsseldorf, Grafental II

GDV: €409.7m Units: 468

■ ADLER will complement future growth through acquisitions with selective developments in A locations at attractive yields ■ Development pipeline of €1.7bn to be completed over the next 6-7 years ■ For developments built to keep ADLER targets 4-5.5% net initial yield

Development pipeline

Berlin, Riverside¹ 62% Other developments 28% Land bank 11%

Total GAV €0.7bn

Developments split by GAV

SLIDE 11

Riv iversid ide projec ject (Wasserstadt Mit itte)

Inner-city district in the area between Berlin Central Station and the Government District

11

▪ Secured contract with general contractor ▪ Strategically located in the government district close to Berlin’s main station ▪ Currently in ADLER’s balance sheet at €409.5m with 4.9% NIY ▪ GDV at completion is €456.8m ▪ Overall 753 residential units (498 apartments and 255 micro- apartments) ▪ Expected completion by the end of 2019 ▪ Full rental income from September 2020 onwards

Project information ▪ Total rentable space of c. 50,240 sqm and landbank with a planning permission for c. 10,600 sqm GFA ▪ Financing secured and in line with target to reduce LTV < 55% ▪ Strengthening of position in attractive Berlin market

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Considerably improved financial metrics on the back of refinancing activities

• 3. Financial performance

SLIDE 13

Results Q3 2019 – highlights

13 € m Q3 2019 Q3 2018 Q3 2019 vs Q3 2018 (%) Net rental income

187.7 173.3 8.3%

Earnings from property lettings (NOI)

163.9 151.9 7.9%

• Adj. EBITDA

128.6 119.2 7.9%

FFO I

62.0 54.9 12.9%

▪ ADLER Real Estate has significantly improved its operational performance Solid operational performance € m Q3 2019 FY 2018 Q3 2019 vs FY 2018 (%) Investment properties (incl. inventories)

4,904.2 5,077.1

• 3.4%

EPRA NAV

1,958.2 1,692.3 15.7%

Adjusted diluted EPRA NAV (excl. goodwill)

1,909.8 1,639.0 16.5%

Equity ratio (%)

29.0% 27.0% 2.00 ppts

LTV (excl. convertibles) (%) - Net debt over GAV

56.2% 61.4%

• 5.20 ppts

WACD (%)

2.05% 2.23%

• 0.18 ppts

SLIDE 14

Strong performance track record

14 Net rental income (€m) FFO I (€m) Diluted EPRA NAV per share (excl. goodwill) Diluted FFO I per share (€) Diluted EPRA NAV (excl. goodwill) Adjusted EBITDA (€m)

56.1 131.6 160.9 170.3 238.4 173.3 187.7 0.0 50.0 100.0 150.0 200.0 250.0 300.0 2014 2015 2016 2017 2018 Q3 2018Q3 2019 €m 27.2 95.6 124.3 128.4 165.4 119.2 128.6 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 2014 2015 2016 2017 2018 Q3 2018Q3 2019 €m

• 1.1

16.1 27.3 40.5 74.2 54.9 62.0

• 10.0

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 2014 2015 2016 2017 2018 Q3 2018Q3 2019 €m

• 0.03

0.25 0.39 0.51 0.94 0.70 0.78

• 0.20

0.00 0.20 0.40 0.60 0.80 1.00 2014 2015 2016 2017 2018 Q3 2018Q3 2019 € 358.1 783.9 971.9 1,230.5 1,639.0 1,909.8 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0 2014 2015 2016 2017 2018 Q3 2019 €m 9.10 12.24 13.79 15.37 20.77 23.91 0.00 5.00 10.00 15.00 20.00 25.00 30.00 2014 2015 2016 2017 2018 Q3 2019 €

SLIDE 15

Sources of funding and debt profile

15 Debt maturity schedule Debt KPIs LTV WACD ICR Sources of funding

Total interest-bearing debt (€m) 3,744 Net LTV 56.2% ICR 2.5x Fixed / hedged debt 88.9% Unsecured debt 58.9% Weighted average cost of debt 2.05% Weighted average maturity 3.7 years Corporate credit rating (S&P) BB

74.9% 73.7% 59.9% 59.4% 61.4% 56.2% 55.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 2014 2015 2016 2017 2018 Q3 2019 2019 target LT target c.50% 4.15% 3.99% 3.69% 2.72% 2.23% 2.05% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 2014 2015 2016 2017 2018 Q3 2019 1.30 1.43 1.59 1.71 2.33 2.53 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2014 2015 2016 2017 2018 Q3 2019 86.1 137.9 1,295.7 577.3 616.4 387.2 111.2 581.6 0.0 200.0 400.0 600.0 800.0 1,000.0 1,200.0 1,400.0 2019 2020 2021 2022 2023 2024 2025 >2025 Secured debt Corporate bonds Convertibles €m Secured bank loans 41.0% Corporate bonds 55.5% Convertibles 3.4%

SLIDE 16

Debt schedule

16 Current maturity profile

BV Q3 2019 €m Volume €m Maturity Nominal interest rate Other comments Premature redemption Rate, at which premature redemption is possible

Bonds

2017/21 500 500 06 Dec 21 1.50% Anytime ▪Under condition of make whole 2017/24 299 300 06 Feb 24 2.10% Anytime ▪Under condition of make whole 2018/23 495 500 27 Apr 23 1.90% Anytime ▪Under condition of make whole 2018/26 296 300 27 Apr 26 3.00% Anytime ▪Under condition of make whole 2019/22 398 400 17 Apr 22 1.50% Anytime ▪Under condition of make whole

Total 1,988 2,000 3.6 years 1.90% Convertibles

2016/21 122 130 19 Jul 21 2.50% Strike price of €12.55, no.

• f potential ADLER shares

from conversion 9.4m Conversion from 19 July 2019 ▪At face value, if trading at more than 130% of strike price for at least 20 out of 30 trading days

Total 122 130* 1.9 years 2.50% BCP bonds

Debenture A 16 16 Jul-20 4.80% Permitted ▪Under condition of make whole Debenture B 54 51 Dec-24 3.29% Permitted ▪Under condition of make whole Debenture C 42 39 Jul-26 3.30% Permitted ▪Under condition of make whole

Total 112 106 5.2 years 3.50% Bank debt 1,552 1,557 3.8 years 2.10%

Total interest bearing debt 3,774 3,793 3.7 years 2.05% * Conversions are reflected

SLIDE 17

17

Trading at substantial discount to its EPRA NAV

• 4. ADLER Real Estate in the Capital Markets

SLIDE 18

18 Active research coverage Share and target price development (€ per share)

Source: Bloomberg data as per 13 November 2019

Broker Date Price target Recommendation Upside 8-Nov 15.9 Buy 52% 7-Nov 16.5 Buy 58% 5-Nov 22.0 Buy 111% 24-Sep 16.0 Buy 53% 24-Sep 16.9 Buy 62% 23-Sep

• Restricted
• 14-Aug

20.0 Buy 92% 14-Aug 16.8 Buy 61% 15-Jul 21.0 Buy 101%

Overview of active brokers and evolution of target prices

Adler Real Estate is a consensus “buy” according to analysts

17.73 10.44 8 10 12 14 16 18 20 Jan-2018 Apr-2018 Jul-2018 Oct-2018 Jan-2019 Apr-2019 Jul-2019 Oct-2019 Target price (consensus) Price

SLIDE 19

19 Key share information (13 November 2019) ADLER Real Estate shareholders’ structure (13 November 2019) Key trading considerations

Market cap and shareholder structure

Share information Total voting rights 71,063,743 Treasury shares 1,603,232 Listed / Stock exchange Prime Standard / Frankfurt am Main Indices: SDAX, CDAX, GPR General Index, DIMAX 3M / 6M ADTV 167k shares (€1.8m) / 170k shares (€2.0m) Key metric In €/share EPRA NAV/share (excl. goodwill) | (basic / diluted) 28.19 / 23.91 Upside Potential vs. EPRA NAV/share | (basic / diluted) 62.8% / 56.2% Broker consensus for EPRA NAV/share | (FY 2019, median) 22.93 Upside potential vs. broker consensus 54.3% Share price (close as at 13 November 2019) 10.48 ADLER is trading at significant discount to EPRA NAV with the broker community consensus upside of c.63% vs. current trading levels

19

Mezzanine IX 14.4% Wecken 14.9% Fairwater 13.5% Thomas Bergander 6.7% Treasury Shares 2.3% Free Float 48.2% Anchor shareholders 42.8%

SLIDE 20

20

Taking ADLER Real Estate to the next level

• 5. 2019 Guidance

SLIDE 21

ADLER Real Estate guidance and outlook 2019

21 ADLER Real Estate historical review and guidance

Key metrics 2017 2018 Target FY 19 as at August 19

Net rental income (€m) 170.3 238.4 235-240 Historical guidance n/a c.230 Achieved n/a

✓

Vacancy rate 7.9% 6.0% 6.0% Historical guidance 7.0% 6.0% Achieved

 ✓

Ø rent (€/sqm/month) 5.21 5.49 5.60-5.65 Historical guidance 5.08 5.45 Achieved

✓ ✓

FFO I (€ m) 40.5 74.2 83-86 Historical guidance 40 73-75 Achieved

✓ ✓

LTV (excl. convertibles) 59.4% 61.4% c.55% Historical guidance 55% c.55% Achieved

 

WACD 2.72% 2.23% 2.0-2.1% Historical guidance 3.45% 2.24% Achieved

✓ ✓

SLIDE 22

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• 6. Appendix

SLIDE 23

ADLER Real Estate management team

23 Tomas DE VARGAS MACHUCA

Chairman of the Management Board (Co-CEO), Chairman of the Executive Committee ■ Has assumed the role as Co-CEO as at 22nd December 2017 together with Maximilian Rienecker ■ Responsible for the Company’s Capital Markets

• perations since 2013

■ Before joining ADLER, Tomas de Vargas Machuca spent 15 years in the real estate business of which 10 years in banking ■ He was an Executive Director at UBS Investment Bank’s Real Estate Finance ■ He holds a B.A. in Economics and a M.A. in Management of International Firms from Bocconi University in Milan, Italy.

Sven-Christian FRANK

COO, Management Board, Executive Committee ■ COO since 9th June 2016 ■ Responsible for operational management (asset, property and facility mgmt) and transaction ■ Formerly held various leading positions in real estate business, notably at Gestrim Deutschland AG and Deutsche Real Estate AG ■ Born 1965, attorney at law, mediator (DAA), real estate asset manager (IREBS)

Maximilian RIENECKER

Chairman of the Management Board (Co-CEO), Executive Committee ■ Has assumed the role as Co-CEO as at 22nd December 2017 together with Tomas de Vargas Machuca ■ With ADLER since February 2017, when he was appointed Head of Corporate Finance and Strategy. ■ Maximilian Rienecker calls on more than 5 years of experience in the real estate industry after roles in Sales and Marketing at ING Investment Management in Hong Kong and Corporate Strategy and M&A at SBM Offshore in Monaco.

SLIDE 24

Group governance organisational chart

24 Lean Governance structure ADLER REAL ESTATE AG Supervisory Board

• Dr. D. Hoffmann,
• T. Schmid, C. Jorgensen

Accounting, Controlling & Treasury Portfolio Management Bank Financing Investor Relations Legal Corporate Governance Compliance & Human Resources

• A. Gotthardt

Member of the EC

• M. Rienecker

(Co-CEO, Digitalization, Corporate Finance)

Management Board

• S. Frank

(COO, Project Development)

• T. de Vargas Machuca

(Co-CEO, Chairman of the EC)

Project Development

• F. Sitta

Member of the EC

• C. Wolff

Member of the EC

• P. Hoffmann

Member of the EC

• T. Kladnik

Member of the EC

• S. Frank

Member of the EC

• S. Frank

Member of the EC

Executive Committee (EC)

SLIDE 25

Profit and loss statement Q3 2019

25 ■ All items impacted by the acquisition of BCP ■ Personnel expenses and expenses from property lettings increased only disproportionally compared to increase in rental income. Increases were mainly due to internalization of property and facility management and acquisition of BCP. ■ Improvement in financial result is mainly due to efforts to reduce interest expenses and interest on ACCENTRO receivable Comments Operating results increased

Insourcing impacts structure of expenses

SLIDE 26

Balance sheet as of 30 September 2019

26 Reflecting the company´s successful activities of financial consolidation Comments ■ The increase in equity is mainly attributable to the positive net profit, acquisition of non- controlling interest of BCP as well as own shares being used to purchase assets

SLIDE 27

EPRA NAV bridge as of 30 September 2019

27 EPRA NAV calculation Comments

■ Net asset value (EPRA NAV), which is calculated in accordance with the guidelines issued by the European Public Real Estate Association (EPRA), reached €1,958.2m as of Q3 2019. ■ Based on the total number of existing shares in circulation at the balance sheet date less treasury shares plus the shares resulting from the assumed conversion of the mandatory convertible bond counted as shareholders’ equity, undiluted EPRA NAV per share amounted to €28.19 as of Q3 2019 (FY 2018: €24.71). ■ Diluted EPRA NAV per share amounted to €26.03 as of Q3 2019 (FY 2018: €22.94). ■ Adjusting for the goodwill in connection with the previous acquisitions, the diluted EPRA NAV per share stood at €23.91 (FY 2018: €20.77).

SLIDE 28

LTV bridge as of 30 September 2019

28 LTV calculation Comments ■ Since the first quarter of 2018, ADLER has been calculating LTV as the ratio of financial liabilities (adjusted for cash and cash equivalents, non- current assets held for sale, purchase price receivables and liabilities held for sale) to ADLER’s total property assets – as is customary in the industry. ■ LTV was as of Q3 2019 at 56.2%, decrease of 520bps compared to FY 2018 (excluding convertibles, i.e. assuming that the convertible bonds outstanding at the reporting date were converted into shares). ■ The acquisition of BCP in April 2018 had a significant influence on the temporary increase in LTV.

SLIDE 29

Financial calendar 2019

29

21 January 18th German Corporate Conference 2019 (UniCredit & Kepler Cheuvreux), Frankfurt 30 January Roadshow London 20 February 13th ODDO BHF German Conference (ODDO BHF), Frankfurt 19 - 21 February Mid/Small Cap Forum Asia (Lond Capital), Hong Kong & Singapure 7 - 8 March European Property Seminar New York (Kempen), NYC 28 March Annual report 2018 1 - 4 April European Roadshow (Brussels, Nordics, London, Zurich) 15 May Q1 2019 report 22 - 23 May 17th European Property Seminar (Kempen), Amsterdam 24 May 14th HSBC European Real Estate Conference (HSBC), Frankfurt 11 June Annual General Meeting 2019 16 - 21 June EPRA Asia Week (EPRA), Singapore, Hong Kong, Taipei, Seoul & Tokyo 22 - 25 July US Roadshow (NYC, Boston) 14 August H1 2019 report 2 - 6 September European Roadshow 9 September NYC Roadshow 10 - 12 September EPRA Conference (EPRA), Madrid 25 - 26 September 6th Annual German Corporate Conference (Baader Bank), Munich 8 - 14 October US Roadshow 25 October Stockholm Roadshow 14 November Q3 2019 report

SLIDE 30

Disclaimer

30

This document and its contents are confidential and not meant for forwarding.

• transmission. publication. duplication. or disclosure (in whole or part) to other
• persons. Outside of Germany the distribution of this document may be restricted by

applicable laws. This document does not constitute an offer to sell or an invitation to make an offer to buy or subscribe for securities. This document and the information contained therein may not be distributed in the United States of America. Canada. Australia. Japan or other jurisdictions. in which such offer. respectively. such invitation to make an offer to buy or subscribe for securities is not allowed. This document does not constitute an offer to sell securities in the United States. Securities. including the securities of ADLER Real Estate Aktiengesellschaft may not be sold or offered for sale within the United States or to or for the account of / in favour of US citizens (as defined in Regulation S under the U.S. Securities Act of 1933 in the current version (the "Securities Act") unless they are registered under the regulations of the Securities Act or unless they are subject to an exemption from registration. This document includes 'forward-looking statements'. Forward-looking statements are all statements. which do not describe facts of the past. but containing the words "believe". "estimate". "expect". "anticipate". "assume". "plan". "intend". "could". and words of similar meaning. These forward-looking statements are subject to inherent risks and uncertainties since they relate to future events and are based on current assumptions and estimates of ADLER Real Estate Aktiengesellschaft. which might not occur at all or occur not as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of ADLER Real Estate Aktiengesellschaft. The actual financial position and the actual results of ADLER Real Estate Aktiengesellschaft. as well as the overall economic development and the regulatory environment may differ materially from the expectations. which are assumed explicitly or implicitly in the forward-looking statements and do not comply to them. Therefore. investors are warned to base their investment decisions with respect to ADLER Real Estate Aktiengesellschaft on the forward-looking statements mentioned in this document.

SLIDE 31

Contact

31

ADLER Real Estate AG Joachimsthaler Straße 34 10719 Berlin www.adler-ag.com Tel: +49 (0) 162 424 6833 E-mail: t.kladnik@adler-ag.com