Deutsche Industrie REIT-AG (DIR) Q1 2018/2019 Financial Results 14 February 2019

Transcription

1 Deutsche Industrie REIT-AG (DIR) Q1 2018/2019 Financial Results 14 February 2019

2 Content 2018/2019 Highlights Portfolio Recent Acquisitions Financing Financial Results Q1 2018/2019 DIR Shares Appendix I: Appendix II: Strategy & Business Model, Management Properties 2

3 2018/2019 Highlights

4 Highlights Q1 2018/2019 Key figures Proforma Portfolio YTD* Properties 44 Rental Space 1.01m sqm Annualised Rent 29.6 m Portfolio Value m Land Bank 1.94m sqm Key Figures Q1 2018/2019 Rental Income 4.4 m FFO 2.5 m EPRA NAV 5.45 per share LTV 40.2% 2018/2019 FFO-Guidance m *based on proforma portfolio as of 14/02/2019 = including notarised properties YTD with transfer of ownership after 31/12/2018 4

5 Portfolio

6 Portfolio Regional allocation Federal State Properties Rental space Annualised rent % of rent Northrhine-Westphalia ,812 8,077 TEUR 27.3% Lower Saxony 5 210,677 5,932 TEUR 20.1% Bavaria 4 85,550 3,474 TEUR 11.8% Mecklenburg Western Pomerania 7 148,016 2,944 TEUR 10.0% Baden-Württemberg 1 46,349 2,559 TEUR 8.7% Berlin 2 17,443 1,591 TEUR 5.4% Thuringia 3 49,275 1,459 TEUR 4.9% Brandenburg 2 37,448 1,112 TEUR 3.8% Rhineland Palatinate 1 127,517 1,000 TEUR 3.4% Saarland 1 44, TEUR 3.2% Bremen 1 9, TEUR 1.4% Saxony-Anhalt 1 1, TEUR 0.1% 44 Total 44 1,009,575 29,551 TEUR 100.0% x Portfolio as of 31/12/2018 x Acquired properties, with transfer after 31/12/ x Acquired properties, no transfer yet All figures based on proforma portfolio as of 14/02/2019 = including notarised properties with transfer of ownership after 31/12/2018 6

7 Portfolio Properties as of 31 December 2018 # Location Category Rental space Annualised rent IPR commercial 1 WALT 2 Occupancy Fair value Yield Transfer Neubrandenburg Production & logistics 55,907 sqm 745 k 1.70 /sqm 7.2 Years 99% 5,100 k 14.6% 01/01/2015 Stralsund Production & logistics 3,235 sqm 36 k 2.34 /sqm 2.3 Years 28% 553 k 6.4% 01/07/2016 Güstrow Production & logistics 6,130 sqm 90 k 1.22 /sqm 12.3 Years 100% 690 k 13.0% 22/03/2016 Bad Salzdetfurth Industrial park 51,343 sqm 1,559 k 3.34 /sqm 1.9 Years 77% 11,100 k 14.0% 01/01/2017 Löhne Logistics 47,518 sqm 1,949 k 3.42 /sqm 3.0 Years 100% 18,200 k 10.7% 01/05/2017 Schortens Industrial park 95,378 sqm 3,343 k 4.93 /sqm 4.1 Years 58% 38,100 k 8.8% 30/11/2017 Rostock Logistics 39,353 sqm 1,029 k 2.43 /sqm 4.2 Years 91% 9,900 k 10.4% 06/10/2017 Bornheim Logistics 9,057 sqm 329 k 3.13 /sqm 2.0 Years 95% 3,900 k 8.4% 01/10/2017 Drei Gleichen Logistics 24,004 sqm 600 k 2.08 /sqm 2.5 Years 100% 3,600 k 16.7% 07/03/2018 Wuppertal Industrial park 10,010 sqm 558 k 4.78 /sqm 1.8 Years 96% 6,250 k 8.9% 01/05/2018 Remscheid Industrial park 26,806 sqm 914 k 3.18 /sqm 1.1 Years 94% 9,300 k 9.8% 01/05/2018 Neustadt-Glewe Production & logistics 12,050 sqm 155 k 1.83 /sqm 5.0 Years 63% 2,100 k 7.4% 21/02/2018 Dortmund Industrial park 24,831 sqm 718 k 3.34 /sqm 4.4 Years 82% 8,600 k 8.4% 01/06/2018 Bochum Industrial park 3,522 sqm 176 k 4.38 /sqm 7.0 Years 100% 2,400 k 7.3% 01/06/ without parking or other units 2 based on contracts with fixed expiration 7

8 Portfolio Properties as of 31 December 2018 # Location Category Rental space Annualised rent IPR commercial 1 WALT 2 Occupancy Fair value Yield Transfer Witten Industrial park 11,139 sqm 345 k 3.20 /sqm 4.1 Years 100% 3,500 k 9.9% 01/06/2018 Ronnenberg Production & logistics 30,099 sqm 854 k 2.50 /sqm 3.0 Years 93% 9,700 k 8.8% 01/08/2018 Elchingen Production & logistics 7,690 sqm 161 k 4.12 /sqm 10.1 Years 100% 1,950 k 8.3% 28/06/2018 Lichtenfels Production & logistics 28,404 sqm 854 k 4.35 /sqm 10.1 Years 100% 9,690 k 8.8% 28/06/2018 Meschede Industrial park 6,563 sqm 119 k 2.35 /sqm 1.0 Years 64% 1,900 k 6.3% 01/06/2018 Hattingen Industrial park 2,506 sqm 110 k 3.64 /sqm 3.0 Years 100% 1,160 k 9.5% 01/08/2018 Meerbusch Logistics 13,380 sqm 660 k 4.11 /sqm 1.0 Years 100% 6,540 k 10.1% 01/09/2018 Schleiz Production & logistics 5,929 sqm 228 k 3.20 /sqm 6.7 Years 100% 2,600 k 8.8% 04/10/2018 Wildau Logistics 16,498 sqm 967 k /sqm 2.4 Years 98% 12,730 k 7.6% 01/09/2018 Bremen Production & logistics 9,903 sqm 411 k 3.46 /sqm 5.0 Years 100% 3,670 k 11.2% 01/10/2018 Schortens Logistics 29,897 sqm 143 k 1.11 /sqm 2.0 Years 36% 2,000 k 7.1% 01/10/2018 Wismar Production & logistics 11,873 sqm 312 k 2.19 /sqm 4.3 Years 100% 3,400 k 9.2% 01/10/2018 Simmern Production & logistics 127,517 sqm 1,000 k 4.12 /sqm 8.5 Years 100% 12,500 k 8.0% 01/11/2018 Solingen Logistics 25,537 sqm 1,013 k 3.41 /sqm 1.5 Years 97% 10,500 k 9.6% 15/12/2018 Schortens Production & logistics 3,960 sqm 34 k 2.01 /sqm 0.0 Years 37% 550 k 6.2% 21/12/2018 Total as of 31 December ,040 sqm 19,413 k 3.26 /sqm 4.1 Years 84% 202,183 k 9.6% 1 without parking or other units 2 based on contracts with fixed expiration 3 plus additional income from technical infrastructure of c. 80 k p.a. 8

9 Portfolio Acquired properties # Location Category Rental space Annualised rent IPR commercial WALT Occupancy Purchase price Yield Transfer Fehrbellin Logistics 20,950 sqm 145 k /sqm 3.8 Years 100% 1,200 k 12.1% 01/02/2019 Schwerin Industrial park 19,467 sqm 578 k 2.48 /sqm 3.0 Years 100% 5,450 k 10.6% 01/01/2019 Berlin Production & logistics 8,079 sqm 221 k 2.53 /sqm 4.0 Years 89% 5,128 k 4.3% 01/01/2019 Münster Production & logistics 2,889 sqm 132 k 3.81 /sqm 5.0 Years 100% 1,538 k 8.6% 01/01/2019 Regensburg Production & logistics 19,189 sqm 667 k 2.82 /sqm 5.0 Years 100% 6,154 k 10.8% 01/01/2019 Wolfratshausen Production & logistics 30,267 sqm 1,792 k 4.93 /sqm 5.4 Years 100% 18,154 k 9.9% 01/01/2019 Dinslaken Production & logistics 3,596 sqm 0 k 0.00 /sqm 0.0 Years 0% 1,500 k 0.0% 01/01/2019 Bad Waldsee Logistics 46,349 sqm 2,559 k 4.60 /sqm 10.0 Years 100% 28,150 k 9.1% n/a Zella-Mehlis Production & logistics 19,342 sqm 632 k 2.65 /sqm 8.3 Years 100% 6,900 k 9.2% n/a Berlin Logistics 9,364 sqm 1,371 k /sqm 6.2 Years 92% 16,576 k 8.3% n/a Duisburg Production & logistics 16,221 sqm 500 k 2.75 /sqm 10.1 Years 100% 5,547 k 9.0% 01/02/2019 Halberstadt Production & logistics 1,500 sqm 42 k 2.33 /sqm 9.0 Years 100% 399 k 10.5% n/a Remscheid Production & logistics 16,245 sqm 318 k 1.63 /sqm 6.0 Years 100% 1,400 k 22.7% n/a Remscheid Production & logistics 11,993 sqm 234 k 1.63 /sqm 6.0 Years 100% 3,400 k 6.9% n/a Freisen Production & logistics 44,084 sqm 948 k 1.79 /sqm 6.0 Years 100% 10,600 k 8.9% n/a Total - transfer after 31 December ,535 sqm 10,138 k 3.45 /sqm 7.1 Years 98% 112,097 k 9.0% Proforma portfolio ytd 1,009,575 sqm 29,551 k 3.32 /sqm 5.2 Years 88% 314,280 k 9.3% 1 without parking or other units 2 based on contracts with fixed expiration 3 forward deal with lease guarantee, rental income from 11/2020 9

10 Portfolio Solvent major tenants adequate WALT Tenant Sector % of rent Annualised rents split by remaining lease duration Aenova / Haupt Pharma Pharmaceutical Industry 9.4% Versandhaus Walz GmbH Online/Mail order seller 8.7% DST Defence Service Tracks GmbH Defence Industry 5.1% WALT: 5.2 Years 7,935 k Otto GmbH & Co. KG Logistics 4.9% Bundesanstalt für Immobilienaufgaben German Armed Forces / Customs 3.9% CompAir DLT ZNL d. Gardner Denver Dt. Compressed air systems 3.4% Veenendaal Schaumstoffwerk GmbH Foam processing 2.9% 5,197 k 5,502 k Zwilling J A Cuttlery 2.9% Laverana GmbH & Co. KG Natural cosmetics 2.8% 3,155 k 2,457 k 2,746 k Nordex Energy GmbH Wind power plants 2.7% 1,495 k 1,063 k Top Ten Tenants 46.7% Top Twenty Tenants 62.9% up to 1 year up to 2 years up to 3 years up to 4 years up to 5 years 5 to 10 years >10 years no fixed expiration All figures based on proforma portfolio as of 14/02/2019 = including notarised properties with transfer of ownership after 31/12/

11 Portfolio Well diversified mix of uses and sectors Type Properties Rental space IPR p. sqm 1 Vacancy WALT Annualised rent % of rent Logistics ,908 sqm % ,765 k 36.4% Production & logistics ,103 sqm % ,365 k 35.1% Industrial park ,564 sqm % 3.3 8,421 k 28.5% Total 44 1,009,575 sqm % ,551 k 100.0% 1 commercial = without parking or other units What s the type of the property What s the business of the tenant Types of use by annualised rent Types of use by rental space Industrial sector % of rent Transport / logistics services 10.9% Pharmaceutical industry 9.5% Σ Other 3% Storage 27% Production 27% Storage 18% Production 26% Online/Mail order seller 8.8% Public Authorities 6.6% Metalworking 5.2% Defense Industry 5.1% Office 21% Logistics 22% Σ Other 21% Office 11% Logistics 24% Industrial/specialist traders, wholesale 5.0% Plastics Processing 4.8% Foods 4.7% How is the single unit used Compressed air systems 3.4% Top Ten 64.0% All figures based on proforma portfolio as of 14/02/2019 = including notarised properties with transfer of ownership after 30/09/

12 Portfolio Valuation potential - share price trades at attractive ~7% yield NAV impact derived from multiple increases (c.p.) leads to upside potential of DIR-shares Annualised total portfolio rent (meur) Valuation multiple Yield Portfolio value (meur) Net LTV Net debt outstanding NAV (meur) Number of shares (million) Hypothetical NAV per share (EUR) Current portfolio as of ,4 10,7 9,4% 206,6 40% 85,8 122,6 22,50 5,45 29,6 11,5 8,7% 340,4 50% 170,2 170,2 22,50 7,56 29,6 12,0 8,3% 355,2 48% 170,2 185,0 22,50 8,22 29,6 12,5 8,0% 370,0 46% 170,2 199,8 22,50 8,88 29,6 13,0 7,7% 384,8 44% 170,2 214,6 22,50 9,54 29,6 13,5 7,4% 399,6 43% 170,2 229,4 22,50 10,20 29,6 14,0 7,1% 414,4 41% 170,2 244,2 22,50 10,85 29,6 14,5 6,9% 429,2 40% 170,2 259,0 22,50 11,51 29,6 15,0 6,7% 444,0 38% 170,2 273,8 22,50 12,17 Current trading level of DIR shares Assumptions (pro forma portfolio as of 14/02/ ,6 15,5 6,5% 458,8 37% 170,2 288,6 22,50 12,83 29,6 16,0 6,3% 473,6 36% 170,2 303,4 22,50 13,48 29,6 16,5 6,1% 488,4 35% 170,2 318,2 22,50 14,14 29,6 17,0 5,9% 503,2 34% 170,2 333,0 22,50 14,80 29,6 17,5 5,7% 518,0 33% 170,2 347,8 22,50 15,46 29,6 18,0 5,6% 532,8 32% 170,2 362,6 22,50 16,12 29,6 18,5 5,4% 547,6 31% 170,2 377,4 22,50 16,77 29,6 19,0 5,3% 562,4 30% 170,2 392,2 22,50 17,43 29,6 19,5 5,1% 577,2 29% 170,2 407,0 22,50 18,09 29,6 20,0 5,0% 592,0 29% 170,2 421,8 22,50 18,75 Valuation appreciation is expected to be anticipated by capital markets Compared to competitors DIRs portfolio valuation is conservative at 9.3% yield which implies hidden reserves 12

13 Acquisitions

14 Acquisitions Signed in Q1 2018/2019 Berlin, Duisburg, Halberstadt Berlin Beusselstraße 44 N-Q Acquired 19/12/2018 Type Logistics Rental space 9,364 sqm Annualised rent 1,371 k WALT 6.2 years Vacancy 7.8% Purchase price 16,576 k Net initial yield 8.3% Sector(s) Frozen goods logistics Duisburg Eisenbahnstraße 70 Acquired 19/12/2018 Type Production & logistics Rental space 16,221 sqm Annualised rent 500 k WALT 10.1 years Vacancy 0.0% Purchase price 5,547 k Net initial yield 9.0% Sector(s) Custom-made sunshades Halberstadt Am Sülzegraben 17 Acquired 19/12/2018 Type Production & logistics Rental space 1,500 sqm Annualised rent 42 k WALT 9.0 years Vacancy 0.0% Purchase price 399 k Net initial yield 10.5% Sector(s) Surface coatings 14

15 Acquisitions Signed in Q2 2018/2019 Remscheid, Freisen Remscheid Rosentalstraße 22 Acquired 04/02/2019 Type Production & logistics Rental space 16,245 sqm Annualised rent 318 k WALT 6.0 years Vacancy 0.0% Purchase price 1,400 k Net initial yield 22.7% Sector(s) Defense Industry Remscheid Vieringhausen 118 Acquired 04/02/2019 Type Production & logistics Rental space 11,993 sqm Annualised rent 234 k WALT 6.0 years Vacancy 0.0% Purchase price 3,400 k Net initial yield 6.9% Sector(s) Defense Industry Freisen Industriegelände Acquired 04/02/2019 Type Production & logistics Rental space 44,084 sqm Annualised rent 948 k WALT 6.0 years Vacancy 0.0% Purchase price 10,600 k Net initial yield 8.9% Sector(s) Defense Industry 15

16 Financing

17 Financial structure Starting the refinancing process Current financing portfolio # of encumbered assets FV of encumbered assets Nominal Debt Ø Interest Rate Interest fixation in years Maturity in years Bank loans m 20.4 m 2.40% Secured bond m 89.9 m 4.00% Total m m 3.70% Unencumbered assets m Potential financing volume m 3% 2% 7% 7% Sparkasse Neubrandenburg-Demmin VR Bank eg Sparkasse Unna/Kamen Contract with Berliner Sparkasse 10/ m Further negotiations with several banks for the unencumbered assets 81% Berliner Sparkasse Secured Bond 17

18 Financial Results Q1 2018/2019

19 Financial Results Q1 2018/2019 Condensed IFRS balance sheet k 31/12/ /09/2018 k 31/12/ /09/2018 Pro forma portfolio of 314 million including latest notarised acquisitions Includes 13 m receivables out of capital increase paid in 01/2019 and 8 m short term lending Assets Equity and liabilities Investment properties 206, ,242.2 Issued share capital 22, ,000.0 Other non-current assets 7, ,113.5 Capital reserve 76, ,976.8 Total non-current assets 214, ,355.7 Other reserves Other current assets 25, ,143.2 Retained earnings 24, ,784.2 Cash position 2, Total equity 122, ,811.0 Total current assets 27, ,260.3 Bank liabilities 17, ,042.5 Liabilities from corporate bonds 90, ,686.2 Other liabilities 1, ,302.9 Total non-current liabilities 109, ,031.6 Bank liabilities 1, Other financial liabilities ,744.4 Other current liabilities 7, ,158.2 Total current liabilities 8, ,773.4 Capital increase in 12/2018 from 18.0m to 22.5m shares at per share New loan nominal 7.5 m Total assets 241, ,616.0 Total equity and liabilities 241, ,

20 Financial Results Q1 2018/2019 Condensed IFRS income statement k 01/10/ /12/ /10/ /12/2017 Reporting change due to IFRS 15 from FY 2018/2019 Rental income 4, ,772.3 Income from operating and ancillary costs 1,106.7 Operating expenses -1, No valuation in Q1-2018/2019, Regular valuation only once a year Net rental income 3, ,123.1 Valuation result 0.0 1,636.8 Other income Personnel expenses Mainly income from insurance compansations Depreciation of assets Impairment of receivables Other operating expenses EBIT 3, ,469.8 Interest income Interest expenses -1, EBT 2, ,641.7 Income taxes 0.0 1,407.4 Other taxes Income tax gains due to reimbursement of deferred taxes after obtaining REIT status Total period income 2, ,

21 Financial Results Q1 2018/2019 FFO, NAV and LTV reconciliation FFO/aFFO: k 01/10/ /12/ /10/ /12/2017 Total period income 2, , /- Income taxes 0.0-1, Depreciation of assets /- Gain/loss from fair value measurement of investment properties Other non-current / non-cash expenses/income 0.0-1, FFO 2, , Capex -1, affo ,120.2 FFO per share ( ) affo per share ( ) based on 18.9 million average shares for the period 2 based on 22.5 million current shares EPRA NAV: k 31/12/ /09/2018 Total equity 122, ,811.0 Adjustments EPRA NAV 122, ,811.0 Number of shares 22,500,072 18,000,056 NAV per share ( ) LTV: k 31/12/ /09/2018 Total financial liabilities 109, ,343.9 Cash / Other current assets -10, Receivables out of capital increase 3-13, Trust Accounts (Property management) Net debt 85, ,082.1 Investment properties incl. advanced payments 213, ,438.3 Net LTV 40.2% 58.0% 3 paid in January Inclusion from FY 2018/

22 Financial Results Q1 2018/2019 FFO-Guidance for the Fiscal Year 2018/2019 FFO guidance is mainly driven by prospective acquisitions DIR plans to invest between 150 and 180 meur in the FY 2018/2019 Based on current projections DIR expects FFO between 12 and 14 meur for the Fiscal Year 2018/2019 FFO run rate between 17 and 19 meur by the end of FY 2018/

23 DIR Shares

24 DIR Shares Basic data & shareholder structure Shareholder structure: Basic data Obotritia Capital 35.4% Obotritia Capital KGaA 7.7% Free Float* 64.6% ISIN DE000A2G9LL1 Obotritia Beta Invest GmbH 6.7% Obotritia Alpha Invest GmbH 6.7% Remaining free float* 26.0% WKN A2G9LL Ticker Symbol JB7 Number of shares 22,500,072 Obotritia Delta Invest GmbH 3.1% Försterweg Beteiligungs GmbH 5.8% Babelsberger Beteiligungs GmbH 5.4% Lotus AG 7.9% VBL 9.8% ALPHA 4 S.A., SICAV-SIF* 4.3% Parson GmbH 5.4% Management 1.0% Nominal capital 22,500, Share class Stock exchanges Designated Sponsor Bearer shares Berlin (Regulated Market) Frankfurt, XETRA (Prime Standard) Oddo Seydler Bank AG Listing 7 December 2017 Gert Purkert 6.7% 1 attributable to Lotus AG 2 attributable to Gert Purkert Olive Tree Invest GmbH 1 1.5% TIVEN GmbH 2 2.0% *Free float according to definition of Deutsche Börse: 30.7% 24

25 DIR Shares Share performance & coverage L ADTV 25 k 1 VWAP H k 460 k 440 k 420 k 400 k 380 k 360 k 340 k 320 k 300 k 280 k 260 k 240 k 220 k 200 k 180 k 160 k 140 k 120 k 100 k 80 k 60 k 40 k 20 k k L H Event Date Price 52 weeks low 13/02/2018 6,78 Capital increase 1.5m shares 23/04/ Capital increase 1.5m shares 17/09/ Capital increase 4.5m shares 14/12/ weeks high 05/12/ Coverage Bank Date Target price Baader 17/09/ ODDO BHF 11/07/ Market Cap as of 12/02/2019: ~ 253 m 25

26 Financial calendar & IR contact We keep you informed IR contact: René Bergmann (CFO) August-Bebel-Str. 68 D Potsdam Tel: +49 (0) 331 / Fax: +49 (0) 331 / Financial calendar 20/02/2019 ODDO BHF German Conference, Frankfurt am Main 22/03/2019 Annual General Meeting, Berlin 28/03/2019 Commerzbank Real Estate Forum, London 29/04/2019 Capital Markets Day, Dusseldorf 15/05/2019 H1 2018/2019 Financial report 15/08/2019 9M 2018/2019 Quarterly statement 19/12/2019 Annual financial report 2018/

27 Disclaimer The material in this presentation has been prepared by Deutsche Industrie REIT-AG (Deutsche Industrie) and is general background information about Deutsche Industrie s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters. Any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Deutsche Industrie s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. Deutsche Industrie does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Deutsche Industrie s control. Past performance is not a reliable indication of future performance. Unless otherwise specified all information are for the financial quarter ended31 December

28 Appendix I: Strategy Business Model Management

29 Strategy & Business Model Combining cash flow properties with lean admin structure and REIT Focus on light industrial properties (business parks, logistic centers, production facilities etc.) Well established properties with good infrastructural connections and regional relevancy Occupying a niche which is situated below the investment criteria of institutional investors and above the requests of private investors Lean company structure and low administrative expenses Valuation potential due to low purchase prices, vacancy reduction, extension of rental contracts Further growth of the portfolio mitigates single-asset risks and stabilises the whole portfolio leading to more diversity REIT combines our asset strategy with flat admin structures, tax exemption on company level and provides attractive dividends for shareholders Strong cash flow generating portfolio Stable and efficient financial structure Value creation by active asset management + Lean company structure + + = Attractive and stable dividends + Advantages from REIT structure 29

30 Strategy & Business Model Real estate investment company focussed on light industrial Strong continuous growth with acquistion at high yields around 10% Land development potential Rent development potential DIR owns a huge land bank of 1.66 million sqm. Light Industrial is the lowest possible type of development for land Buildings are usually flat Land utilisation is only 50% No significant new construction due to current low rent level Restrictive approval practice for industrial areas Conversion into more valuable types of uses (residential, office etc.) Strong economic fundamentals in Germany Need for more storage and logistics spaces due to booming online shopping Construction of taller buildings and increased utilization would lead to higher density New construction with upgrade in use for instance office or residential possible Increasing land value Shrinking product supply Increasing market rents Growing demand Built up a light industrial real estate platform with multi-dimensional value enhancing potential where the whole is worth more than the individual parts 30

31 Strategy & Business Model Value add approach Risk/Chance analysis before purchase We try to get a vision of the asset, location and useful future uses based on current market demand Pro-active asset management Our team consists of experienced and motivated full-time asset managers Tenant relationship We want to be a reliable and long-term partner and are in continuous discussions to understand tenants needs with the aim to generate win-wins Creativity and flexibility We try to think unconventionally and to find new concepts to recover a property Tenant network With the expansion of the portfolio also our network of potential tenants grows which can be advantageous 31

32 Management Experienced and committed management team Rolf Elgeti (CEO) Rolf is the founder of Deutsche Industrie REIT-AG, which is a spin-off of his investment company Obotritia Capital. Before he was the CEO of TAG Immobilien AG, Hamburg, which experienced an enormous growth under his leadership and was included into German Mid- Cap Index (MDAX). Rolf worked many years as an equity strategist at ABN Amro, Commerzbank and UBS in London. He has excellent banking and real estate knowledge. Rolf is personally and financially committed to Deutsche Industrie REIT-AG. Sonja Paffendorf (CIO) Sonja has been part of Obotritia Capital since She started as a Head of Project Development and became the Chief Investment Officer of Obotritia Capital in January In this position she has been responsible for the strategic growth of the commercial real estate portfolio. She was appointed CIO of Deutsche Industrie REIT-AG on 18 th of October Sonja has worked many years in the real estate industry, especially in project development in Germany and Australia. Sonja is personally and financially committed to Deutsche Industrie REIT-AG. René Bergmann (CFO) René has been working for the Deutsche Industrie REIT-AG since November 2017, as Director Finance he was responsible for the development of this area. He has been Chief Financial Officer (CFO) since September 1, His duties include equity and debt financing as well as accounting / controlling and IR. René has worked many years in the real estate industry, especially in portfolio management and IR. René is personally committed to Deutsche Industrie REIT-AG. 32

33 Appendix II Properties

34 Appendix II Properties The current presentation with all our properties can be found here: 34