Berlin Nuremberg Dortmund Frankfurt Leipzig Q1 2017 FINANCIAL RESULTS PRESENTATION Amsterdam Munich
TABLE OF CONTENTS UPLISTING TO PRIME STANDARD HIGHLIGHTS FINANCIAL RESULTS & CAPITAL MARKET ACHIEVEMENTS OPERATIONS AND PORTFOLIO APPENDIX 2
UPLISTING AND MIGRATION Listing upgrade to Migration to Prime Standard Luxembourg Trading symbol On June 2, 2017, Aroundtown is on track to AT1 Aroundtown was uplisted move the company seat to the Prime Standard of to Luxembourg and the Frankfurt Stock continue as a Luxembourg Exchange company MARKET VISIBILITY SHARE LIQUIDITY TRADABILITY LARGER INVESTOR POOL Largest stock listed German commercial real estate company POTENTIAL INCLUSION IN MAJOR EUROPEAN INDICES Market Cap 1) Free Float €4.1 bn 56% 3 1) based on €4.7 share price
HIGHLIGHTS P&L Highlights – Q1 2017 Rental and operating income €114 million +128% Profit €247 million +7% Earnings per share (basic) €0.33 +22% Adjusted EBITDA €93 million +75% FFO I €59 million +82% FFO yield 1) 7.7% FFO I per share €0.09 +80% Div yield 1) 5.0% Annualized dividend per share €0.23 +44% Balance Sheet Highlights – March 31, 2017 Total assets €9.4 billion +16% €4.2 billion +8% €5.2 per share EPRA NAV EPRA NAV €4.8 billion +10% €6.0 per share incl. perpetual notes EPRA NAV €5.1 billion €5.9 per share +18% incl. perpetual notes pro forma 2) 33.0% LTV 41.7% Pro forma 2) Equity ratio Pro forma 2) 4 1) Based on a share price of €4.7 51% 2) including the equity capital raise in May 2017 and conversion of the Series B bonds, net of convertible bonds purchased
FINANCIAL RESULTS 5
PROFIT AND LOSS Rental and Operating income (in €M) 1-3/2017 1-3/2016 € million Rental and operating income 114 50 Capital gains, revaluations and other income 212 224 Share in profit from investment in equity-accounted 31 26 investees Property operating expenses (31) (13) Administrative and other expenses (4) (1) Operating profit 323 285 Finance expenses (15) (9) Profit for the period (in €M) Other financial results 1 (4) Current tax expenses (10) (4) Deferred tax expenses (52) (38) Profit for the period 247 230 ACHIEVING STRONG OPERATIONAL GROWTH FROM BOTH INTERNAL AND EXTERNAL SOURCES Earnings per share (in €) Strong L-F-L improvements: Robust external growth in Q1 2017 and full impact of +3.9% in-place rent 2016 acquisitions +2.2% occupancy 6
ADJUSTED EBITDA € million 1-3/2017 1-3/2016 Operating profit 323 285 Depreciation and amortization 1 1 EBITDA 324 286 subtracted as these profits Capital gains, revaluations and other income (212) (224) include AT’s share in non - Share in profit from investment in equity-accounted operational profits (31) (26) generated by the equity- investees accounted investees Management long term share incentive plan 1 - Adjusted EBITDA commercial portfolio 80 36 Adjusted EBITDA relating to properties marked for disposal (9) - GCP is AT‘s strategic Adjusted EBITDA commercial portfolio, recurring long term 72 36 investment with a holding Adjustment for GCP operational contribution 21 17 rate of 36% currently Adjusted EBITDA 93 53 Adjusted EBITDA (in €M) Adjusted EBITDA annualized (in €M) 7
FFO I € million 1-3/2017 1-3/2016 Adjusted EBITDA commercial portfolio 80 36 Finance expenses (15) (9) Current tax (10) (4) Minorities in PCI Contribution to minorities (2) (1) and on SPV level FFO I commercial portfolio 53 22 FFO relating to properties marked for disposal (7) - FFO I commercial portfolio, recurring long term 46 22 AT‘s share in GCP‘s FFO I Adjustment for GCP FFO I contribution 13 10 FFO I 59 33 FFO I per share in € 0.09 0.05 7.7% 1) FFO I yield (annualized) 5.0% 1) Dividend yield (annualized) 65% payout ratio 1) Based on a share price of €4.7 FFO I (in €M ) FFO I per share (in €) Dividend per share (in €) based on a payout ratio of 65% 8
TOTAL ASSETS € million Mar 2017 Dec 2016 Investment property 5,794 5,016 Equity accounted investee, holding in GCP SA 1,361 1,317 High balance of cash Equity accounted investee, other 236 240 and liquid assets Non-current assets 7,813 6,989 enable Aroundtown to Assets held as held for sale 628 153 pursue attractive Cash and liquid assets 868 836 acquisition Current assets 1,607 1,100 opportunities Total Assets 9,420 8,089 Investment Property ( € bn) Total Assets ( € bn) 9
EPRA NAV EPRA NAV ( € bn) Mar 2017 Dec 2016 € million Per share € million Per share NAV per the financial statements 4,291 3,941 Equity attributable to perpetual notes investors (576) (478) NAV excluding perpetual notes 3,715 3,463 Effect of in-the-money convertible bond 387 394 Fair value of derivative financial instruments 15 7 Deferred tax liabilities 468 379 NAV 4,585 €5.7 4,243 €5.3 Non-controlling interests (398) (373) EPRA NAV 4,187 €5.2 3,871 €4.9 Equity attributable to perpetual notes investors 576 478 EPRA NAV including perpetual notes 4,763 €6.0 4,349 €5.4 Basic amount of shares, including in-the-money 798,089 798,089 dilution effects in thousands EPRA NAV 4,187 3,871 EPRA NAV per share ( €) May 2017 pro forma effect 1) 371 - EPRA NAV pro forma 4,558 €5.2 3,871 €4.9 Pro forma basic amount of shares 874,710 798,089 EPRA NAV incl. Basic amount of NAV EPRA NAV EPRA NNNAV perpetual shares € million Mar 17 pro forma 1) 4,955,690 4,557,919 5,133,751 4,400,580 874,710 Mar 17 pro forma per share € 5.7 5.2 5.9 5.0 Mar 17 4,585,050 4,187,279 4,763,111 4,029,940 798,089 Mar 17 per share € 5.7 5.2 6.0 5.0 Per share growth +8% +6% +11% +6% Dec 16 4,243,410 3,870,770 4,349,047 3,776,298 798,089 Dec 16 per share € 5.3 4.9 5.4 4.7 10 1) including the effect of May 2017 equity increase, net of €55.3 million convertible bonds purchased
CONSERVATIVE CAPITAL STRUCTURE Debt maturity profile (Mar 2017)* > 6 years Series H, average maturity Maturity of 15 years 1.8% cost of debt * including the effect of Series B bond conversions and the amount held by the Company as of the date of the Q1 2017 report publication Loan-to-Value Strong cover ratios (Q1 2017) Unencumbered assets 11 ** including the equity capital raise in May 2017 and conversion of the Series B bonds as of the day of this report, net of convertible bonds purchased
FINANCIAL POLICY AND INVESTMENT GRADE RATING Aroundtown financial policy: Financial risk profile 1 2 3 4 5 6 Minim Modest Aggre High Intermediate Significant Strive to achieve A- global rating in the al ssive Levera ged long term 1 aaa/ bbb- Business risk profile aa a+/a a- bbb Excellent aa+ /bb+ LTV limit at 45% (DW) (GCP) (Vonovia- BBB+)* 2 aa/ A- BBB+ BBB a+/a bb+ bb Strong aa- (FDR) Debt-to-cap ratio at 45% (or lower) on a (Aroundtown) 3 BBB/BBB- BBB-/bb+ sustainable basis a/a- bbb+ bb b+ Satisfactory (Alstria) 4 bbb/ bbb- bb+ bb bb- b Maintaining conservative financial ratios Fair bbb- 5 bb+ bb+ bb bb- b+ b/b- Weak Unencumbered assets above 50% of total 6 assets bb- bb- bb- b+ b b- Vulnerable * Vonovia’s rating anchor is BBB. Vonovia’s final rating, after the effect of modifiers is BBB+. Long debt maturity profile ‘BBB’ Investment Grade rating from S&P Good mix of long term unsecured bonds & non-recourse bank loans BBB Support convertible bond holders to convert BBB- into equity Dividend of 65% of FFO I per share 12
CAPITAL MARKET ACHIEVEMENTS First issuance in USD in 2017 to single Asian investor (full currency hedge until maturity) Equity and bond bookrunners Established EMTN program of €1.5 bn in March 2017 Largest European real estate issuer in 2016 Issued €3.5 bn since 2016 alone 13
OPERATIONS AND PORTFOLIO 14
TOP TIER GERMAN/NL CITIES (MARCH 2017) Group Regional distribution* (by value) inhabitants per sqkm (2013) WALT In-place rent 7.6 € /sqm 7.6 years EPRA Vacancy 7.8% 15 * accounting for 36% in GCP’s portfolio
COMMERCIAL INVESTMENT PROPERTIES (MARCH 2017) Portfolio breakdown per asset type Investment Area EPRA Annualized net In-place rent Value per sqm Rental properties (in €M) (in 000' sqm) vacancy rent (in €M) per sqm (in €) (in €) yield 3,102 1,481 10.5% 178 10.7 2,094 5.7% Office 1,153 803 7.5% 82 8.7 1,434 7.1% Retail 1,096 575 0.0% 68 9.8 1,907 6.2% Hotel 443 646 8.3% 25 3.3 686 5.7% Industrial/Others 5,794 3,505 7.8% 353 8.7 1,653 6.1% Total Portfolio breakdown per region Investment Area EPRA Annualized net In-place rent Value per sqm Rental properties (in €M) (in 000' sqm) vacancy rent (in €M) per sqm (in €) (in €) yield 1,098 548 7.8% 58 9.4 2,005 5.3% Berlin NRW 757 711 6.8% 55 6.4 1,065 7.3% 546 225 10.7% 29 11.7 2,432 5.3% Frankfurt 646 225 10.5% 29 11.0 2,875 4.4% Munich Hamburg 438 230 6.6% 20 8.0 1,904 4.7% 329 123 8.9% 21 14.9 2,662 6.3% Amsterdam 255 184 6.0% 17 8.1 1,386 6.7% Hannover Dresden/Leipzig/Halle 244 164 9.5% 15 8.1 1,486 6.1% 190 105 8.4% 16 13.5 1,808 8.5% Rotterdam 177 85 4.6% 13 11.9 2,075 7.2% Utrecht Stuttgart/BB 162 97 11.9% 10 9.5 1,666 6.1% 110 80 5.8% 7 7.4 1,368 6.5% Nuremberg 842 728 6.0% 63 7.4 1,156 7.4% Other Total 5,794 3,505 7.8% 353 8.7 1,653 6.1% * figures exclude assets held for sale 16
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