Berlin Nuremberg Dortmund Frankfurt Leipzig Q3 2017 FINANCIAL RESULTS PRESENTATION Amsterdam Munich
TABLE OF CONTENTS CORPORATE ACHIEVEMENTS HIGHLIGHTS FINANCIAL RESULTS & CAPITAL MARKETS ACTIVITY OPERATIONS AND PORTFOLIO APPENDIX 2
CORPORATE ACHIEVEMENTS Owing to its strong market capitalization and trading volume, Aroundtown is a Aroundtown received the strong MDAX candidate, with EPRA BPR Gold award in inclusion set as a target September 2017, the highest standard for Trading financial reporting Aroundtown was …and included in the STOXX symbol: added to the SDAX in Europe 600 in October 2017 September 2017… AT1 ESG Development - Sustainalytics Score Migration to AT is highly ranked amongst the international real estate sector and was ranked Outperformer in all sub-factors Luxembourg Aroundtown re-domiciled to Luxembourg in September 2017, also strengthening its board of Overall score Directors August 2017 Uplisting to 88 th Percentile Frankfurt AT is ranked #35 among 280 real estate peers Prime Standard 83 rd percentile Environment Outperformer On June 2, 2017, Aroundtown was uplisted 93 rd percentile Social Outperformer to the Prime Standard of the Frankfurt Stock 3 79 th percentile Governance Outperformer Exchange
CORPORATE ACHIEVEMENTS RAPID PORTFOLIO GROWTH LARGEST CAPITAL MARKETS ISSUER IN (INVESTMENT PROPERTY IN € BN) 2016 AND 2017 CAGR 2015 - Equity Straight Shareholder Dec 2017 (perpetual Bonds Equity 8. notes) 91% 8. 8 Total: Total: Total: 4 € 2.2 billion € 1.2 billion € 720 million € 700 million € 450 million $700 million* 5.0 due 2025 Equity capital in including tap of – lowest coupon October 2017 USD 200 million yet at 1% at € 6 per share € 4.2bn € 100 million 2.4 £500 million* € 426 million due 2029, effective Equity capital in 2015 2016 Dec 2017 Sep 2017 coupon 1.5% May 2017 at € 4.58 per share € 2.5bn € 500 million due 2026, € 349 million Coupon of 1.875% Conversion of Unencumbered LTV ICR $450 million* Series B 3% Ratio Convertible bond € 1.2bn due 2032, effective 37% 5.6x 55% € 56m repurchased coupon 1.365% 2015 2016 2017 YTD Equity Perpetual notes 4 Convertible bonds Straight bonds *full currency hedge to euro
FINANCIAL HIGHLIGHTS – 1-9/2017 Net Rental Adjusted Net Profit FFO I income EBITDA € 1.1bn € 204m € 320m € 303m FFO I FFO I FFO yield 1) per share per share Dec run rate 6% € 0.26 € 0.36 Dividend Div yield 1) per share Run rate 3.9% € 0.23 EPRA NAV Investment EPRA NAV Total assets LTV incl. perpetual notes property incl. perpetual notes € 12.1bn 37% per share € 8.4bn € 6.9bn € 7.5 EPRA NAV EPRA NAV per share € 5.7bn € 6.2 5 1) Based on a share price of € 6
FINANCIAL RESULTS & CAPITAL MARKET ACTIVITY 6
PROFIT AND LOSS Net rental income (in € M)* 1-9/2017 1-9/2016 € million Net rental income 320.3 159.3 (27.6) - of which relating to properties marked for disposal Net rental income, recurring long-term 292.7 159.3 Rental and operating income 373.7 183.1 Revaluations, capital gains and other income 976.1 588.1 Share in profit from investment in equity-accounted *excl. net rent from 133.5 153.4 assets held for sale investees Profit for the period (in € M) Property operating expenses (104.2) (48.4) Administrative and other expenses (10.8) (5.2) Operating profit 1,368.3 871.0 Finance expenses (48.0) (32.9) Other financial results (16.6) (22.5) Current tax expenses (26.5) (12.9) Deferred tax expenses (195.5) (87.1) Profit for the period 1,081.7 715.6 Earnings per share in € (basic) 1.15 0.87 Earnings per share (in € ) ACHIEVING STRONG OPERATIONAL GROWTH FROM BOTH INTERNAL AND EXTERNAL SOURCES Strong L-F-L improvements- Robust external growth in 9M 2017 and full impact of +5.8% net rent growth: 2016 acquisitions +3.4% in-place rent 7 +2.3% occupancy
ADJUSTED EBITDA € million 1-9/2017 1-9/2016 Operating profit 1,368.3 871.0 subtracted as these profits Depreciation and amortization 1.7 1.0 include AT’s share in non - EBITDA 1,370.0 872.0 operational profits Revaluations, capital gains and other income (976.1) (588.1) generated by the equity- Share in profit from investment in equity-accounted (133.5) (153.4) accounted investees investees Other adjustments 1.4 - conservative approach to Adjusted EBITDA commercial portfolio 261.8 130.5 excluding operational profits from assets marked Adjusted EBITDA relating to properties marked for disposal (24.5) - for disposal Adjusted EBITDA commercial portfolio, recurring long term 237.3 130.5 Adjustment for GCP operational contribution 66.1 53.4 GCP is AT‘s strategic Adjusted EBITDA 303.4 183.9 investment with a holding rate of 37.6% currently Adjusted EBITDA annualized (in € M) Adjusted EBITDA (in € M) 8
FFO I € million 1-9/2017 1-9/2016 FFO I annualized (in € M) Adjusted EBITDA commercial portfolio 261.8 130.5 Finance expenses (48.0) (32.9) Current tax (26.5) (12.9) Contribution to minorities (7.2) (4.3) FFO I commercial portfolio 180.1 80.4 FFO relating to properties marked for disposal (16.4) - FFO I commercial portfolio, recurring long term 163.7 80.4 Adjustment for GCP FFO I contribution 40.4 33.2 FFO I 204.1 113.6 FFO I per share in € 0.26 0.18 FFO I per share after perpetual attribution 0.23 0.18 Results from disposal of properties 34.7 - FFO II 238.8 113.6 Dividend per share annualized (in € ) FFO I per share annualized (in € ) FFO II (in € M) based on a payout ratio of 65% FFO yield 1) Div yield 1) 6% 3.9% 9 1) Based on a share price of € 6
TOTAL ASSETS € million Sep 2017 Dec 2016 Investment property 8,400 5,016.2 High balance of cash Equity accounted-investees, holding in GCP SA 1,522.3 1,316.7 and liquid assets enable Aroundtown to Equity accounted-investees, other 363.9 240.3 pursue attractive Non-current assets 10,855.3 6,988.9 acquisition Assets held as held for sale* 562.6 152.9 Cash and liquid assets* 506.2 835.8 opportunities Current assets 1,238.1 1,100.1 Total Assets 12,093.4 8,089.0 *cash and liquid assets from assets held for sale are included in the total cash and liquid assets Investment Property ( € bn) Total Assets ( € bn) Acquisitions 2017 As of September 2017 YTD, AT has acquired properties amounting to over € 2.7bn (16x over NRI) As of December 2017, AT has acquired additional properties in the amount of € 400m, bringing the total December YTD net acquisitions to € 3.1bn The additions are well located across the Company’s strategic locations, such as Berlin, Frankfurt, Stuttgart, Cologne, Dusseldorf, Dresden, Mannheim, Munich, Amsterdam and Rotterdam 10
EPRA NAV EPRA NAV ( € bn) Sep 2017 Dec 2016 € million Per share € million Per share NAV per the financial statements 6,471.2 3,941.1 Equity attributable to perpetual notes investors (1,203.5) (478.3) NAV excluding perpetual notes 5,267.7 3,462.8 Effect of in-the-money convertible bonds 292.9 394.0 Fair value of derivative financial instruments* 73.9 7.1 Deferred tax liabilities* 678.9 379.5 NAV 6,313.4 € 6.8 4,243.4 € 5.3 Non-controlling interests (571.2) (372.6) EPRA NAV 5,742.2 € 6.2 3,870.8 € 4.9 Equity attributable to perpetual notes investors 1,203.5 478.3 EPRA NAV including perpetual notes 6,945.7 € 7.5 4,349.1 € 5.4 Basic amount of shares, including in-the-money 927.9 798.1 dilution effects (in millions) Pro forma effect ** 450.0 - EPRA NAV per share ( € ) EPRA NAV pro forma 6,192.2 € 6.2 3,870.8 € 4.9 * including balances in assets held for sale ** including the equity capital increase in October 2017 EPRA NAV NAV EPRA NAV including perpetual notes in € million unless otherwise indicated Sep 2017 pro forma 1) 6,763.4 6,192.2 7,395.7 Sep 2017 6,313.4 5,742.2 6,945.7 6.8 6.2 7.5 Sep 2017 per share (in € ) Per share growth +28% +27% +39% Dec 2016 4,243.4 3,870.8 4,349.1 11 Dec 2016 per share (in € ) 5.3 4.9 5.4 1) including the equity capital increase in October 2017
CONSERVATIVE CAPITAL STRUCTURE Debt maturity profile 6.9 years average maturity 1.7% cost of debt Loan-to-Value Strong cover ratios (9M 2017) Unencumbered assets 12 * including the equity capital increase in October 2017 ** assuming also conversion of Series B and Series C convertible bonds which are in-the-money
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