Profitable. Strong growth. Innovative. Company presentation July - 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 estate at established secondary locations in 1st pillar 2nd pillar Germany | Food markets with good + credit ratings as anchor tenants New / further Portfolio development and management Holistic added value through acquisition, trading active asset management and divestment Income from: Income from: ✓ Sales (FFO2) ✓ Rental (FFO1) 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%) 2

Business strategy Sustainable growth through stringent processing of attractive markets and segments FCR generates 96% of its earnings in the German market. FCR is represented in Germany in all Growth Markets Seg- federal states. Asset class „Retail“ is the undisputed leader in the FCR portfolio. strategies ments 17,0% 14,5% 14,4% Consistent market 12,6% 10,8% penetration 8,6%7,6% (Development of Retail 4,0% Germany market position) 2,2%2,1%1,3%0,6% 0,3% North-Rhine… Baden-… Mecklenburg-… Schleswig-… Rhineland-… Lower Saxony Saxony Thuringia Brandenburg Saxony-Anhalt Bavaria Saarland Berlin + Germany 4.0% 96.0% Outside Selective, profit- Office Germany oriented market (A, I, ES) development Logistics (Complement 75,5% business model) Austria Residential 8,9% 6,9% 5,3% 3,4% Continuous business development based on existing success factors: ▪ First-rate know-how ▪ Long-term experience As of: 2020 YTD ▪ Broad network Basis: Actual net rental income annualized 3

Board | Supervisory Board Experienced management team Falk Raudies Professor Dr Hanjo Schneider Ludwig A. Fuchs Founder and CEO Franz-Joseph Busse Supervisory Board Supervisory Board Chairman of the Supervisory Board 4

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 5

Business development 2020 | Real estate portfolio – key figures YTD (1/2) Portfolio expanded further, successful portfolio development Real estate portfolio development 10 acquisitions 3 sales 31 rental contracts (Number of properties) Market value: New contracts / Property Segment Property Segment Contract extensions € 308 million 83 Berlin Brandenburg Brandenburg Logistics Aue Retail 100 76 80 Ehrenfrieders. Gera Cadolzburg Retail Lichtentanne Retail 58 60 Glückstadt Gummersbach Gummersbach Retail Stuhr Retail 41 40 Hambühren Hof 18 Höchstadt Retail 12 20 11 Magdeburg Nienburg Jüterbog Retail 0 Oer-Erkenschw. Schleiz Landau Retail 2014 2015 2016 2017 2018 2019 2020 YTD Strullendorf Weidenberg Schwalbach Retail Schwandorf Retail Zeithain Zeulenroda Development of acquired and sold properties (Number of properties) Strullendorf Retail Teistungen Retail 10 Acquired properties 112 Transaction Asset Management Management 3 Sold properties Expansion of property portfolio (net increase: 7 properties) leads to higher annualized rental 23 income of approx. €1.2 million. New contracts and early extensions of contracts have resulted in approx. €5 million in 2020 YTD 2014-2020 YTD revenue secured.

Business development 2020 | Real estate portfolio – key figures YTD (2/2) Two-pillar earnings model successfully expanded 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 Turnover Income from Income from Rental of: FCR Sales of: ➢ Existing property (core) + = ➢ Existing property (core) Continuous ➢ New developments increase ➢ Project developments of sales ➢ Income from opportunistic sales Properties Income No. Market Actual Pot. Actual net Potential Market value and rent from: value net net rental return net rental in € million, yield in rentals rentals p.a. return p.a. percent Existing property Rental / 76 256.1 19.3 21.7 7.6 85 Sales WAULT: 5.3 years Multiple: 13.2 New and project Predicted profit developments, (Proceeds from sale less acquisition / development costs) income from Sales 7 51.4 1.2 1.2 oppportunistic Approx. €14 million sales 1 Total Rental / 83 307.5 20.5 22.9 1 Wismar, Bamberg, Frankenberg, Monument (ES), Il Pelagone (I), Suiten am Schloss (A), Westerburg (D) Sales As of: 2020 YTD

Business development 2020 | Key financial indicators | FCR Group Growth since the beginning, new records in 2019, successful start Turnover (in € million) EBITDA (in € million) 18,5 49,6 60 20 15 40 37,3 10 YOY YOY 7,6 16,4 20 4,9 12,7 (2018- (2018- 3,5 9,9 3,7 5 12,1 3,1 2019) 2019) 1,5 3,3 + 33% + 143% 0 0 HGB IFRS HGB IFRS 2014 2015 2016 2017 2018 2019 Q1 2014 2015 2016 2017 2018 2019 Q1 2020 2020 EBIT (in € million) EBT (in € million) 18,1 20 15 11,9 15 10 10 YOY YOY 7,1 5 (2018- 3,4 (2018- 3,7 5 2,8 3,0 1,5 1,9 2019) 1,3 2019) 2,3 1,1 0,8 0,8 + 155% + 325% 0 0 HGB IFRS HGB IFRS 2014 2015 2016 2017 2018 2019 Q1 2014 2015 2016 2017 2018 2019 Q1 2020 2020 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) 8 2020: Untested Q1 numbers according to IFRS

Business development 2020 | Further key financial indicators | FCR Group Successful start to the 2020 financial year FCR is already profitable from Continuous increase of the portfolio management net asset value FFO1 and FFO2 (in € million) EPRA-NAV (in € million) ▪ 150 FCR sold two properties in the first quarter of 2020 101,4 100,0 ▪ Selling prices were above the balance sheet valuation, 100 75,3 which resulted in an earnings contribution of €0.2 million 50,2 50 26,7 ▪ Rental income rose by 37.3 percent in the quarter compared to the previous year to approx. €5.2 million 0 (without additional costs) 2016 2017 2018 2019 Q1 2020 Q1 2020 EPRA- NAV/share: €11.08 FFO1 1.1 FFO2 (incl. revenues 1.8 from sales) 9

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 5.25% bond 2019/2024 6.00% bond 2018/2023 7.10% bond 2016/2021 In the placement Fully placed (€30 million) Fully placed (€25 million) Fully placed (€15 million) WKN A254TQ WKN A2TSB1 WKN A2G9G6 WKN A2BPUC ISIN DE000A254TQ9 ISIN DE000A2TSB16 ISIN DE000A2G9G64 ISIN DE000A2BPUC4 Frankfurt stock exchange Frankfurt stock exchange Frankfurt stock exchange Frankfurt stock exchange Market price 99.75 Market price 95.50 Market price 99.00 Market price 98.50 26/06/2020 26/06/2020 26/06/2020 26/06/2020 ▪ ▪ ▪ ▪ Issue volume: up to €30 million Issue volume: up to €30 million Issue volume: up to €25 million Issue volume: up to €15 million ▪ ▪ ▪ ▪ Dividend coupon: 4.25% p.a. Dividend coupon: 5.25% p.a. Dividend coupon: 6.00% p.a. Dividend coupon: 7.10% p.a. ▪ ▪ ▪ ▪ Interest payment: quarterly Interest payment: semi-annually Interest payment: semi-annually Interest payment: annually ▪ ▪ ▪ ▪ Maturity: 01/04/2025 Maturity: 29/04/2024 Maturity: 20/02/2023 Maturity: 18/10/2021 ▪ ▪ ▪ ▪ Collateral: registered land debt Collateral: registered land debt Collateral: registered land debt Collateral: registered land debt ▪ ▪ ▪ ▪ Listing: Frankfurt stock exchange Listing: Frankfurt stock exchange Listing: Frankfurt stock exchange Listing: Frankfurt stock exchange 10