COMPANY PRESENTATION

Transcription

1 Berlin Nuremberg Dortmund Leipzig Frankfurt COMPANY PRESENTATION Amsterdam Munich

2 Adjusted EBITDA FFO I 497m 339m Investing since 2004 in value-add properties, in quality central locations in largest cities in Germany and the Netherlands Largest stock listed German commercial real estate company FFO I per share 0.36 (5.5% yield) 1) 1) based on a share price of 6.5 2) pro forma including October 2017 equity issuance COMMERCIAL PORTFOLIO DEC 2017 RUN RATE Investment Properties Dividend AROUNDTOWN DEC 2017 RUN RATE EPRA Vacancy In-place rent Area Net Rent Adjusted EBITDA Market Cap S&P Rating EPRA NAV incl. perpetuals pro forma 2) # of employees 65% of FFO I ps 8.6% 7.9 /sqm 6.2bn 1) BBB+ 7.4bn 270 (3.5% yield) 1) EPRA award Gold award for annual report 2016 FFO I EPRA Vacancy In-place rent Indices SDAX GPR Stoxx Europe 600 WALT 8.8bn 4.8m sqm 485m 403m 280m 9.0% 9.0 /sqm 7 years RESIDENTIAL PORTFOLIO SEP 2017 (AT owns 37.6% in GCP. The table below presents GCP at 100%) Investment Properties Units Area Net Rent (7-9/2017 annualized) Adjusted EBITDA (7-9/2017 annualized) FFO I (7-9/2017 annualized) Market cap Credit rating # of employees 5.8bn 86k 5.4m sqm 329m 250m 181m 3.2 bn BBB+ (S&P) Baa1 (Moody s) over 800 2

3 TOP TIER GERMAN/NL CITIES (SEP 2017) Group Regional distribution* (by Value) inhabitants per sqkm (2013) 3 * accounting for 36% in GCP portfolio as of Sep 2017

4 TOP TIER CITIES CENTRAL QUALITY LOCATIONS SEP 2017 (BY VALUE) Asset Type Breakdown Residential densely populated metropolitans * accounting for 36% in GCP portfolio as of Sep 2017 Commercial quality central locations Top tier cities 4

5 TOP TIER CITIES CENTRAL QUALITY LOCATIONS SEP 2017 (BY VALUE) Commercial asset type breakdown Office portfolio Hotel portfolio Retail portfolio Logistics/Wholesale/Other portfolio 5

6 QUALITY LOCATIONS IN BERLIN INNER CITY 87% of the commercial portfolio is located in top neighborhoods including the inner city Charlottenburg, Wilmersdorf, Mitte, Kreuzberg, Lichtenberg, Scho neberg, Neukölln, Scho nefeld, Steglitz and Potsdam strongly benefiting from the unique dynamics and growth of Berlin s most in demand neighborhoods, business areas and tourist centres 13% of the commercial portfolio is well located primarily in Spandau, Reinickendorf, Hellersdorf/Marzahn and Treptow/Köpenick Commercial properties Residential properties * map representing approx. 95% of the portfolio and 99% including central Potsdam 6

7 DEFENSIVE PORTFOLIO WITH STRONG TENANT STRUCTURE Limited dependency on single tenants due to large tenant base of over 2,600 tenants Long lease terms with a WALT of 7 years as of December

8 HIGHLY PERFORMING HOTEL LOCATIONS Many of the hotel assets are held through a 98% stake in Prime City Investment Well diversified portfolio of branded hotels totaling 1.6 bn and 709k sqm as of September hotels - by category (by value) High proportion (82%) in 4 star hotels, meeting the rising market demand from tourism and business travel Long-term and fixed lease to third-party hotel operators Globally leading branding partners offer key advantages Worldwide reservation systems Global recognition Strong loyalty programs Quality perception Economy of scale benefits 8

9 COMMERCIAL INVESTMENT PROPERTIES Investment properties (in M) Portfolio breakdown asset type* Area (in 000' sqm) EPRA vacancy Annualized net rent (in M) In-place rent per sqm (in ) Value per sqm (in ) Office 5,027 2, % , % Hotel 1, % , % Retail % , % Logistics/Wholesale/Other 1,024 1, % % Total September ,400 4, % , % Rental yield Portfolio breakdown per region* Investment properties (in M) Area (in 000' sqm) EPRA vacancy Annualized net rent (in M) In-place rent per sqm (in ) Value per sqm (in ) Rental yield Berlin 1, % , % NRW 1, % , % Frankfurt 1, % , % Munich % , % Hamburg % , % Amsterdam % , % Hannover % , % Wiesbaden/Mainz/Mannheim % , % Stuttgart/BB % , % Dresden/Leipzig % , % Rotterdam % , % Utrecht % , % Other 1,437 1, % , % Total September ,400 4, % , % Total December ,800 4, % , % 9 * figures exclude assets held for sale

10 GCP INVESTMENT PROPERTIES (SEP 2017)* Value (in M) Quality real estate portfolio Area (in k sqm) EPRA vacancy Annualized net rent (in M) In-place rent per sqm (in ) Number of units Value per sqm (in ) Rental yield Regional distribution- Total portfolio NRW 1,703 1, % , % Berlin 1, % ,479 2, % Dresden/Leipzig/Halle 969 1, % , % Mannheim/KL/Frankfurt/Mainz % ,947 1, % Nuremberg/Fürth/Munich % ,471 1, % Bremen/Hamburg/Hannover % ,448 1, % Others 966 1, % , % Total September ,814 5, % ,062 1, % Quality Berlin locations Largest European metropolitan area Well distributed within NRW Quality east portfolio Dresden/Leipzig/Halle Quality North portfolio Bremen/Hamburg/Hannover 70% in top neighborhoods Charlottenburg, Wilmersdorf, Mitte, Kreuzberg, Lichtenberg, Schöneberg, Neukölln, Schönefeld, Steglitz and Potsdam 30% well located in Reinckendorf, Treptow, Köpenick, Marzahn- Hellersdorf * All breakdowns are by September 2017 values 10

11 COMMERCIAL PORTFOLIO POTENTIAL TO COME Commercial in-place rent compared to market rent prices Commercial current annualized net rental income vs. market potential including vacancy reduction Large upside potential for rent increase to market levels with very limited downside risk Net rental income like-for-like growth of 5.8% as of Sep 2017 (consisting of L-F-L in-place rent growth of 3.4% and L-F-L occupancy growth of 2.3%) Weighted average lease term (WALT) of commercial properties is 7 years as of December Berlin Leipzig

12 RESIDENTIAL PORTFOLIO - POTENTIAL TO COME Residential in-place rent compared to market rent prices Residential current annualized Rental Income vs. Market Potential including vacancy reduction Large upside potential for rent increase to market levels with very limited downside risk. Net rent like-for-like of 3.8% (in-place rent like-for-like growth of 2.3%, occupancy like-for-like growth 1.5%) as of September % of the portfolio s units are subject to rent restriction due to subsidization Average residential tenancy length is 12 years 12 Cologne Leipzig Berlin

13 FINANCIAL HIGHLIGHTS: ADJUSTED EBITDA ( M) Adjusted EBITDA Aroundtown adjusted EBITDA reconciliation Commercial Adj. EBITDA = 403m GCP Adj. EBITDA* 250m X 37.6% = 94m 497m *GCP Adj. EBITDA based on Q3 17 annualized figures Leipzig Munich Munich 13

14 FINANCIAL HIGHLIGHTS: FFO I ( M) FFO I Aroundtown FFO I reconciliation Commercial FFO I = 280m GCP FFO I after perpetual* 156m X 37.6% = 59m 339m *GCP FFO I after perpetual based on Q3 17 annualized figures FFO I per share ( ) Dividend per share ( ) Dividend policy at 65% of FFO I per share FFO I yield of 5.5% and dividend yield of 3.5% (based on December 2017 run rate and share price of 6.5) 14

15 FINANCIAL HIGHLIGHTS AS OF SEP 2017 ( M) Total Equity Hamburg *pro forma including October 2017 equity issuance Net profit annual development Net profit YOY development Frankfurt 15

16 FINANCIAL HIGHLIGHTS AS OF SEP 2017 ( M) EPRA NAV ( M) * Pro forma including the equity capital increase in October 2017 EPRA NAV per share ( ) Sep 2017 Dec 2016 million Per share million Per share NAV per the financial statements 6, ,941.1 Equity attributable to perpetual notes investors (1,203.5) (478.3) NAV excluding perpetual notes 5, ,462.8 Effect of in-the-money convertible bonds Fair value of derivative financial instruments* Deferred tax liabilities* NAV 6, , Non-controlling interests (571.2) (372.6) EPRA NAV 5, , Equity attributable to perpetual notes investors 1, EPRA NAV including perpetual notes 6, , Basic amount of shares, including in-themoney dilution effects (in millions) Pro forma effect ** EPRA NAV pro forma 6, , * including balances in assets held for sale ** including the equity capital increase in October 2017 in million unless otherwise indicated NAV EPRA NAV EPRA NAV including perpetual notes Sep 2017 pro forma 1) 6, , ,395.7 Sep , , ,945.7 Sep 2017 per share (in ) Per share growth +28% +27% +39% Dec , , ,349.1 Dec 2016 per share (in ) ) including the equity capital increase in October

17 TOTAL ASSETS In million Sep 2017 Dec 2016 Investment property - commercial 8,400 5,016 Equity-accounted investees, holding in GCP SA 1,522 1,317 Equity-accounted investees, other Non-current assets 10,855 6,989 Assets held for sale Cash and liquid assets Current assets 1,238 1,100 Total Assets 12,093 8,089 Commercial Investment Property ( bn) Total Assets ( bn) High cash and liquid assets balances enable Aroundtown to pursue attractive acquisitions and/or repay expensive debt 17

18 GROWTH AND CORPORATE DEVELOPMENT Total Annual Investments in Properties - Cherry picking attractive investments (in bn) Aroundtown* Grand City Properties Aroundtown* Largest listed European RE issuer in 2016 and 2017 YTD Capital Markets Activities (in bn) Grand City Properties 18 * excluding GCP

19 AROUNDTOWN CAPITAL STRUCTURE 6.9 years average maturity Debt maturity profile 1.7% cost of debt Dortmund Loan-to-Value Financing sources mix Equity Equity * including the equity capital increase in October 2017 ** assuming also conversion of Series B and Series C convertible bonds which are in-the-money 19

20 FINANCIAL POLICY Strong Cover Ratios* 9M 2017 Unencumbered assets ratio* * residential portfolio accounted for at the holding rate in GCP Aroundtown financial policy Strive to achieve A- global rating in the long term LTV limit at 45% Debt to debt+equity ratio at 45% (or lower) on sustainable basis Maintaining conservative financial ratios with a strong ICR Unencumbered assets above 50% of total assets Long debt maturity profile Good mix of long term unsecured bonds & non-recourse bank loans Hamburg Support convertible bond holders to convert into equity Dividend of 65% of FFO I per share 20

21 Business risk profile S&P ANCHOR RATING MATRIX Financial risk profile 1 Excellent 1 Minima l aaa/ aa+ 2 Mode st 3 Intermediate 4 Significant 5 Aggre ssive aa a+/a a- bbb 6 High Levera ged bbb- /bb+ AT BBB+ Investment Grade from S&P 2 Strong (DW) aa/ aaa+/a A- BBB+ BBB bb+ bb (Klepierre) (Aroundtown) (GCP) (Icade)(Gecina) (Vonovia- BBB+)* (FDR) BBB+ 3 Satisfactory 4 Fair 5 Weak a/a- bbb+ BBB/BBB- BBB-/bb+ bb b+ (Alstria) (Buwog- BBB+)* bbb/ bbbbbb- bb+ bb bb- b bb+ bb+ bb bb- b+ b/b- BBB- BBB 6 Vulnerable bb- bb- bb- b+ b b- *rating anchors of Vonovia and Buwog are BBB, their final ratings, after the effect of modifiers is BBB+ Strong position within the investment-grade scaling with a longterm rating of BBB+ for both AT and GCP, with A-2 short-term ratings. AT s rating was upgraded to BBB+ in December 2017, based on its strong business profile Both AT and GCP s Board of Directors have decided to strategically aim for an A- rating, and will continue to implement measures to achieve this target Berlin 21

22 AROUNDTOWN GROUP BANKING FINANCING SOURCES & CREDIT LINES GCP Revolving Credit Facilities GCP signed strong corporate credit lines with international banking leaders approx. 100 million. The facilities do not have a Material Adverse Change (MAC) clause 22

23 EQUITY ANALYST RESEARCH COVERAGE Analyst Research Target Price Recommendations are all set to Buy Index inclusions: SDAX Stoxx Europe 600 GPR (Global Property Research) General Index 23

24 AROUNDTOWN S SHARE PRICE PERFORMANCE Share performance since initial placement of capital ( ) The share Placement Frankfurt Stock Exchange (Prime Standard) Share issue price development Shareholder structure (fully diluted) Incorporation Luxembourg First equity issuance ( 3.2 per share) Number of shares (basic) 947,808,641 Number of shares incl. dilution effect of Series B (conversion price of 3.27) Number of shares fully diluted (Series C conversion price 5.51) 966,260,793 1,021,925,565 Shareholder structure (basic) Free float 59.7% Free float including conversion of Series B 60.5% Fully diluted free float 62.7% Symbol (Xetra) Market cap AT1 6.2 bn ( 6.55 share price) 24

25 AROUNDTOWN S BOND PERFORMANCE Convertible bond Series C performance since placement ( ) Spread over mid- -swap for straight bonds A and D, remaining 4.5 years Spread over mid- -swap for 3.75% Perpetual Notes 25

26 ESG DEVELOPMENT SUSTAINALYTICS SCORE AT is very highly ranked amongst the international real estate sector and is an outperformer in all sub-factors Overall score August th Percentile AT is ranked #35 among 280 real estate peers Environment 83 rd percentile Outperformer Social 93 rd percentile Outperformer Governance 79 th percentile Outperformer 26

27 ESG MEASURES Environmental AT implements environmentfriendly measures throughout its portfolio, with the goal of reducing its carbon footprint Gradually switching to energy sources from 100% renewable energy Reducing energy consumption through tenant education and raising awareness Social Tenant satisfaction is a top priority and an essential part of AT s business strategy Partnering with local organizations and initiatives Employee commitment through development programs and offerings Corporate Governance Experienced and diverse management board Committees consisting mostly of independent directors for comprehensive oversight: Audit, Risk, Remuneration and Nomination Prudent control mechanisms as well as internal and external risk management systems Incorporating ESG-related risks and considerations in the decisionmaking process AT is committed to maintaining a high standard of corporate responsibility towards its stakeholders 27

28 MANAGEMENT CEO and CFO Shmuel Mayo Eyal Ben David Andrew Wallis Frank Roseen Oschrie Massatschi Jelena Afxentiou Markus Leininger Markus Kreuter Dr. Axel Froese Yakir Gabay Claudio Jarczyk CEO of Aroundtown. Previously, was the CEO of a leading international investment conglomerate with over $8 billion of assets. Since 2006 in the management of Aroundtown and its subsidiaries. BA in Economics and Accounting, Law and CPA. CFO of Aroundtown. Previously, held a private practice of Certified Public Accountants focused on infrastructure and real estate industries. Since 2008 in the management of Aroundtown. Mr. Ben David is a certified public accountant (CPA) and holds an MBA. Board of Directors Director. Former owner and CEO of a large German property management company. Previously he spent 10 years as an investment banker in the city of London for Merrill Lynch and JP Morgan. MBA and a CFA. Director. Highly experienced with a track record of 30 years. Held various senior management positions, including, CEO of Germany & Central Eastern Europe of GE Capital and Real Estate. MBA. Director. International professional experience in banking, management consultancy and corporate finance in Australia, UK and Germany. BA Honours in International Business. Director. In the Aroundtown Group since 2011 and has 20 year of experience in the real estate and the hotel business, specializing in finance and accounting. Independent Director. Former senior banker with a focus on financing, private equity and real estate. Served as Head of Operations with Eurohypo AG and Rheinhyp AG (Commerzbank) and a Member of the Advisory Board and Investment Committee of Revetas Capital Advisors. Diploma in B.A. Independent Director. Specialized in real estate debt advisory through his over 18 years of experience in among others National Director Debt Advisory at JLL, Head of German commercial real estate lending at Deutsche Bank, Group Head of Debt Funding at CA Immo. Degree in real estate economics. Independent Director. Founder and managing partner at Froese Asset Management GmbH. Previous positions were Head of Asset Management at Cordea Savills GmbH, founder and managing partner at IPAM GmbH, Head of European Real Estate Group -Germany- of the Bank of Scotland. He is an MRICS member and holds a PhD. Advisory Board Chairman of the Advisory Board, was previously the chairman & managing partner of an investment company which managed over $30 billion of assets, and before that the CEO of the investment banking of Bank Leumi. Mr. Gabay holds an MBA, BA in Accounting/Economics, and CPA. Advisory Board Member, served as an Executive Director at BerlinHyp Bank specializing in real estate financing with a focus on international clients, as a Chief International Executive at Landesbank Berlin and as an International Division-Department Manager at Bayerische Vereinsbank Munich. Dipl.Kfm. / MBA at Munich University. Audit Committee consists of the three independent directors Markus Leininger, Markus Kreuter and Axel Froese 28

29 OFFICE, RETAIL AND HOTEL MANAGEMENT TEAM Markus Neurauter Philipp von Bodman Nikolai Walter Brigitte Schmitt Alfred Kandl Head of commercial operations. Before joining the Group he was a board member of Strabag AG and CEO of Raiffeisen evolution, responsible for project development on 11 European countries with a development volume of more than 2bn. Mr. Neurauter holds a masters in economics from the university of Innsbruck and covers more than 30 years of experience in real estate. Head of Hotels. 20 years of experience in the hotel industry. Prior positions include: Director of Operations for the GCH Hotel Group, Hotel Feasibility Studies with HVS in London, Hotel Asset Management in London, Hotel Quality Performance Checks in Asia, and numerous international hotel operational positions. MBA in International Hospitality Management from Cornell University & ESSEC Business School (IMHI). Head of Asset & Property Management. 20 years experience in the real estate industry. Before joining the Group, was a Managing Director of Fortress Investment Group, responsible for the asset management of the German commercial with a market value of 5.6 bn. Prior to that, held positions at Deutsche Bank Group where his last role was Head of Asset Management Germany at Deutsche Asset and Wealth Management. MBA and degree in real estate economics. Head of Shopping Mall division. Before joining the group Mrs. Schmitt has been 12 Years with ECE - European market leader for Shopping Centers and with DTZ where her Team was twice awarded the CEE Property Management Team of the Year Award. Degree in Business Management and Administration - from the University of Würzburg. Head of Construction Management. He has 35 years experience in the real estate and building industry. He worked in Strabag AG, one of Austria s leading building companies, and further worked in controlling positions at large construction sites all over Austria and Central and Eastern Europe. From 2003 worked as Head of Construction at Raiffeisen Evolution. Degree in engineering Guido Pütz Senior Asset Manager. Originally trained at Hochtief AG, Guido has spent the last 15 years steering real estate of all asset types for big players in the market such as Hudson Advisors, Cushman & Wakefield and Catella. MBA Norman Lindner Head of Industrial & Logistics Division. Originally trained as a banker, Norman spent two years in risk management before going into controlling, finance and accounting as an asset manager. He gained his experience at Habacker Holding, Dawnay Day Property Investment and IKB Deutsche Industriebank. MBA Jelena Ebner Head of Transaction Management and Property Management. Jelena worked for Hudson Advisors and later at Dundee International as an Asset Manager. Coming from a property management background, Jelena has experience in all asset types. BA and training as Real Estate Manager Christian Hupfer Financial officer. Is specialized in tax structuring, financial statement and cash flow analysis. Mr. Hupfer worked for RöverBrönner KG Steuerberatungs und Wirtschaftsprüfungsgesellschaft in the Audit and Tax department. Mr. Hupfer has a Diploma of Economics with a focus on tax and financial auditing Idan Kaplan Senior Financial Manager. Before joining Aroundtown, Mr. Kaplan served as an auditor in an accounting firm. He holds a BA in Accounting and Business Administration. Sylvie Lagies Head of ESG. Held positions as Hotel General Manager, Corporate Project Manager and Head of Training and Development. Former roles were Head of Franchise Development and Training for Domino s Pizza Germany, Director of Business Development for Precise Hotel Collection in Germany. 29

30 INVESTMENT HIGHLIGHTS 1 Proven business model and successful track-record Well allocated assets in the top cities of Germany and NL Highly cash generative portfolio resulting from successful repositioning Proven operational performance, increase rents and occupancy and extend leases Hamburg Significant upside potential with limited downside risk as properties possess under-utilized rent and occupancy Synergies and economies of scale enable to increase profit margins and reduce operational costs Low financial risk 2 Conservative financial profile in the real estate sector Low LTV and high interest coverage ratio Highest ratio of unencumbered assets (over 50%) Investment grade BBB+ (A-2 Short Term) with long term target of A- Strong pipeline Berlin 3 Substantial acquisition pipeline in advanced stage of discussion, market leader in German/Netherlands acquisitions Capital appreciation opportunities through appropriate asset selection and acquisitions at attractive valuations Incumbent preferred buyer status gives access to off-market transactions away from auction pressures Structurally strong position with high barriers to entry 4 Investing and managing value-add opportunities in central locations in top tier cities of German/NL real estate Proprietary in-house IT software systems tailor-made for the German real estate, fitted to the needs of property value creation Aroundtown is a conservative investment opportunity with well located, strong cash flow generating, quality real estate assets in Germany/NL 30

31 Düsseldorf Berlin Dresden Mannheim Nuremberg 31 Cologne Neu-Isenburg Dortmund

32 COMPANY OVERVIEW GCP is a specialist in residential real estate, value-add opportunities Key financials 1-9/2017 annualized in densely populated areas in Germany Net Rental Income Adjusted EBITDA FFO I FFO I per share Dividend per share 322m 245m 174m Key facts and figures Investment properties 1.11 (Yield 5.6%*) Units Net Rentable Area EPRA Vacancy In-place rent Market cap Indices S&P rating Moody s rating EPRA awards 65% of FFO I 0.72 (3.6% dividend yield*) * based on a share price of 19.8 Number of employees 5.8bn 86k 5.4m sqm 7.3% 5.5 /sqm over bn MDAX, FTSE EPRA/NAREIT, STOXX All Europe 800, GPR 250 BBB+ Baa1 Gold for annual report 2016 and Most Improved Award Gold for sustainability and Most Improved Award Award 1 st place Outstanding Contribution to Society As of September 2017 EPRA NAV EPRA NAV including perpetual notes Net profit 1-9/2017 Loan-to-Value 91 st Percentile 3.1bn 3.7bn 404m 37% 18.6 per share 22.6 per share 2.13 per share 32

33 GCP - KEY FINANCIALS (1) Net Rent (in millions) Adj. EBITDA (in millions) FFO I (in millions) FFO I per share (in ) AFFO & FFO II (in millions) Nuremberg Berlin 33

34 GCP - KEY FINANCIALS (2) Portfolio size (in 000 units) Total equity (in millions) Net Profit* (in millions) Nuremberg * Net profit figures are not annualized **Adjusted for one time costs 34

35 GCP - KEY FINANCIALS (3) EPRA NAV (in millions) Munich EPRA NAV per share EPRA NAV incl. perpetual notes per share in m unless otherwise indicated NAV EPRA NAV EPRA NAV including perpetual notes EPRA NNNAV Sep ,362 3,068 3,734 2,961 Sep 2017 per share ( ) Per share growth +15% +13% +9% +14% Dec ,738 2,541 3,208 2,432 Dec 2016 per share ( ) Number of shares (in 000 ) 164, ,910 35

36 DEBT SCHEDULE Berlin Leipzig Investment grade rating by S&P of BBB+ (A-2 Short Term) and from Moody s of Baa1 with a stable outlook. The ratings are supported by a strong financial profile which validates the success of the business model GCP s long maturity schedule enables the Company to fully focus on lifting its assets potentials Over 40 separate bank loans non recourse, non cross-collateral and non cross-default from over 20 different financial institutions Healthy and conservative capital structure with a low cost of debt of 1.5% Debt Maturity Schedule Loan-to-Value Current debt maturity structure with a weighted average debt maturity of 7.5 years 36

37 GCP - DEBT STRUCTURE AND COVER RATIOS Interest Coverage Ratio* & Debt Service Coverage Ratio** Unencumbered Assets* *) Adjusted EBITDA / interest **) Adjusted EBITDA / (interest + loan amortization), DSCR aka fixed charge coverage ratio * Calculated as the ratio of the unencumbered assets to the total value of investments properties. GCP financial policy Hedging structure Strive to achieve A- global rating in the long term LTV limit at 45% Debt to debt+equity ratio at 45% (or lower) on a sustainable basis Maintaining conservative financial ratios with a strong ICR Unencumbered assets above 50% of total assets Long debt maturity profile Good mix of long term unsecured bonds & non-recourse bank loans Maintaining credit lines from several banks which are not subject to Material Adverse Effect Dividend of 65% of FFO I per share 37

38 PEER ANALYSIS (LARGEST 4) SEPTEMBER 2017 Lower Range Peer companies Upper Range Business Amount of units 86k 128k 350k In-place rent ( per m 2 ) EPRA vacancy rate 7.3% 4.2% 2.1% Book value per sqm ( ) 1,068 1,019 1,718 NRI multiple 17.2x 16.1x 22.6x Credit rating BBB+, Baa1 stable BBB+ / Baa1 A- / A3 Key financials Total cost of debt 1.5% 2.0% 1.4% LTV 37% 45% 37% Interest Coverage Ratio (ICR) 6.1x 4.6x 5.9x Net debt-to-ebitda 9.1x 12.8x 10.2x GCP has the lowest downside risk among the peer group 38

39 MOODY S RATING PEER COMPARISON Broad Rating Factor Rating Sub-Factor Rating Sub- Factor Weight Measure (LTM H1 2017) Score Measure (12-18 Month Forward View) Score Measure (LTM Q3 16) Score Measure (FY 2016) Score Measure (FY 2016) Score Measure (LTM H1 2017) Score Liquidity Coverage 8.00% A A A A A A Ba Ba Ba Ba Ba Ba Liquidity and Debt Maturities ratio 6.25% Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Funding FFO Payout ratio 4.00% 25.7% Aa 65%-75% Baa 59% A 62.5% Baa 29.8% Aa 68% Baa Amount of Unencumbered Assets 6.25% 67.5% Baa 66%-68% Baa 26% B 19% Caa 8.8% Caa 8% Caa Effective Leverage: Debt / Gross Assets Leverage and 9.00% 41.8% Baa 42%-44% Baa 37% Baa 46.9% Baa 35.3% Baa 57% Ba Capital Net Debt/EBITDA 9.00% 10.6x Caa 9x-10x B 9.4x B 11.6x Caa 10.4x Caa 12.1x Caa Structure Secured Debt/Gross Assets 6.25% 14.1% Baa 14%-15% Baa 29% Ba 40.7% B 34.5% B 46% B Access to Capital 6.25% A A A A A A A A Ba Ba Ba Ba Franchise/Brand Name 4.00% Baa Baa Baa Baa A A A A Baa Baa Baa Baa Market Gross Assets 4.00% $7.62 bn Baa $7.5bn-$8.0bn Baa $17.2 bn A $8.93 bn Baa $2.82 bn Baa $4.78 bn Baa Positioning Diversity and Asset 4.00% A A A A Baa Baa A A Baa Baa Baa Baa location/tenant/industry/economic Quality Development % Gross Assets 5.00% 0% Aa 0% Aa 0% Aa 0% Aa 0% Aa 0% Aa Asset Quality 5.00% Ba Ba Ba Ba A A A A A A Ba Ba EBITDA/Revenues 6.00% 75.4% Aa 70%-75% A 52% Ba 64.1% Baa 63.0% Baa 69% A Cash Flow EBITDA Margin Volatility 3.00% 5% Baa 0%-5% Baa 17% Caa 4.4% Baa 5.0% Baa 10% Ba and Earnings Fixed Charge Coverage 9.00% 4.6x Aa 4.8x-5.5x Aa 5.0x Aa 3.5x A 3.7x A 2.7x Baa JV/Fund Business % Revenues 5.00% 0% Aa 0% Aa 0% Aa 0% Aa 0% Aa 0% Aa Indicated Rating from % A3 A3 Baa1 Baa2 Baa3 Ba1 Grid Actual Rating Assigned Baa1 A3 Baa1 Baa2 Baa3 According to Moody's grid result, GCP s indicated rating is Baa1. The Board of Directors of GCP has decided to strategically aim for A3/A- rating, and will continue to implement measures to achieve this target. the results in this page are as publicly reported by Moody's and based on their analysis 39

40 GCP - ANALYST COVERAGE GCP s operations are followed by leading real estate market analysts, who conduct independent equity research and provide price targets Analyst Research Target Price Major index inclusions: MDAX Major FTSE EPRA/NAREIT indices FTSE EPRA/NAREIT Global FTSE EPRA/NAREIT Developed FTSE EPRA/NAREIT Developed Europe STOXX All Europe 800 GPR (Global Property Research) 250 Index 40

41 GCP - OUTPERFORMING Share Price Since First Equity Placement ( ) Share price/conversion price throughout the Company s issuances Placement First equity issuance Number of shares (basic) Frankfurt Stock Exchange (Prime Standard) ( 2.75 per share) 164,788,883 Ownership structure Number of shares (fully diluted) 183,263,420 (Series F conversion price: 26.18) Symbol (Xetra) GYC 41

42 GCP - OUTPERFORMING Straight Bond Series D Spread over mid- -swap, remaining 4 years Berlin Straight Bond Series E Spread over mid- -swap, remaining 7.5 years 3.75% Perpetual notes Spread over mid- -swap Dortmund 42

43 GCP MANAGEMENT CEO Christian Windfuhr Mr. Windfuhr is Grand City Properties CEO. Before joining Grand City Mr. Windfuhr served as CEO of Maritim Hotels, with 40 hotels in Germany. Prior to this he served as CEO of Mövenpick. He achieved the financial turnaround of Mövenpick, drove international expansion, publicly listed the company, and worked out a strategic partnership with Kingdom Holding (HRH Prince Alwaleed) and JP Morgan. Served as Director of TUI, Europe s largest tour operator. He served high positions in Holiday Inn, Kempinski, & Southern Sun. Graduated at Cornell Uni. Board of Directors Refael Zamir CFO Mr. Zamir is Grand City s CFO and Chairman of the Board. Mr. Zamir has over 10 years of international experience in finance and accounting. Before joining GCP at the beginning of 2013, Mr. Zamir served as a manager for Ernst & Young in the real-estate and financial institutions sectors. Mr. Zamir is a CPA and holds a BA and MBA in finance and business administration. Simone Runge- Brandner Independent director Ms. Runge-Brandner is an independent Director and member of the audit-, remuneration- and nomination committee. Her past positions include Deal Manager (Director) at UBS Deutschland AG, Vice President Real Estate Finance/ Investment Funds, Credit Manager at Dekabank Frankfurt and Credit Manager Real Estate Finance at Helaba Frankfurt. Ms. Runge-Brandner has a Diploma in International business administration. Daniel Malkin Independent director Mr. Malkin is an independent Director and member of the audit-, remuneration- and nomination committee. Before joining Grand City, he served as an Investment & fund Manager of fixed income investment funds at Excellence Investment Bank. Has a BA in Business Administration. Advisory Board Yakir Gabay Mr. Gabay is the chairman of the Advisory Board. Before GCP, Mr. Gabay was chairman & managing partner of an investment company which managed over $30 billion of assets, before that he was the CEO of the investment banking of Bank Leumi. Mr. Gabay holds a MBA and BA in Accounting/Economics, and is a CPA. Andrew Wallis Vice chairman, Advisory Board Member. Mr. Wallis was owner and CEO of a large German property management company. Previously he spent 10 years as an investment banker in the city of London for Merrill Lynch and JP Morgan. Mr. Wallis holds an MBA and a CFA. Claudio Jarczyk Advisory Board member. Prior to GCP, Mr. Jarczyk served as an Executive Director at BerlinHyp Bank specializing in real estate financing with a focus on international clients, as a Chief International Executive at Landesbank Berlin and as an International Division- Department Manager at Bayerische Vereinsbank Munich. Mr. Jarczyk holds a Dipl.Kfm. / MBA at Munich University. Audit Committee Consists of the two independent directors Daniel Malkin and Simone Runge-Brandner 43

44 Berlin Baden Baden Amsterdam Munich Hamburg APPENDIX Utrecht Potsdam Dresden 44

45 REGIONAL MARKET OVERVIEW NRW GDP share 2015 : 21% of total national GDP growth 1 : 3.2% Migration balance 2 : 0.7% Population density 3 : 524 per km 2 Bremen GDP growth 1 : 3.5% Migration balance 2 : 0.9% Population density 3 : 1,709 per km 2 Hamburg GDP growth 1 : 2.4% Migration balance 2 : 0.9% Population density 3 : 2,366 per km2 Hannover GDP growth (NI) 1 : 2.9% Migration balance 2 : 1.4% Population density 3 : 2,605 per km 2 Amsterdam GDP growth: 3.2% Migration balance 2 : 2.6% Population density 2 : 5,111 per km 2 Berlin GDP growth 1 : 4.6% Migration balance 2 : 1.2% Population density 3 : 3,948 per km 2 Utrecht GDP growth: 2.5% Migration balance 2 : 0.8% Population density 2 : 3,644per km 2 Dresden/Leipzig/Halle GDP growth (SN) 1 : 4.3% Migration balance 2 : 0.5%-1.4% Population density 3 : 1, per km 2 Rotterdam GDP growth: 2.0% Migration balance 2 : 1.5% Population density 3 : 2,943 per km 2 Frankfurt GDP growth (HE) 1 : 2.8% Migration balance 3 : 1.5% Population density 4 : 2,951 per km 2 Mannheim GDP growth (BW) 1 : 3.6% Migration balance 2 : 1.2% Population density 3 : 2,109 per km 2 inhabitants per sqkm (2013) Nuremberg/Fuerth GDP growth (BA) 1 : 3.6% Migration balance 2 : 1.0% Population density 3 : 2,735 per km 2 Munich GDP growth (BA) 1 :3.6% Migration balance 2 : 1.1% Population density 3 : 4,668 per km 2 Stuttgart GDP growth (BW) 1 : 3.6% Migration balance 2 : 1.2% Population density 3 : 3,008 per km 2 1.GDP Growth: Data from the respective federal state is used in case city data is not available 2. Migration balance: Average annual migration balance , domestic & foreign migration, for Netherlands Population density: Residents per Sqk (2015/NL 2017) 45

46 GERMANY GROWING AND STRONG ECONOMY German GDP Development ( trillion) Debt/GDP 2016 Budget Surplus/Deficit 2016 Source: eurostat, forecast based on the European Commission, Spring 2017 forecast Source: Eurostat Source: eurostat Germany has a growing GDP paired with a strong budget discipline People in employment and unemployment rate Development of real wages (in ) Source: destatis Source: destatis, industry and service sector excluding bonuses and a strong labour market, especially compared to the rest of the EU 46

47 Source: DG HYP German Real Estate Market report/ DG HYP Main Regional Real Estate Markets report GERMAN OFFICE MARKET LOW SUPPLY AND STRONG DEMAND Office employment outpaces office space** **In Top 7 +Regional 12 locations according to DG HYP: Hannover, Nuremberg, Essen, Leipzig, Dresden, Bremen, Karlsruhe, Münster, Mannheim, Darmstadt, Mainz and Augsburg Low addition of new office space** **In Top 7 locations according to DG HYP: Berlin, Munich, Frankfurt, Cologne, Hamburg, Düsseldorf, Stuttgart Continuously strong demand at low supply resulting in less available space per employee... Change from Office space Office workers Calculative office space per office worker in sqm 47

48 GERMAN OFFICE MARKET LEAD TO INCREASING RENTS AND OCCUPANCY reducing vacancy across Germany Vacancy rate Vacancy rate in % (left) Office workers in thousands (right) putting upward pressure on rents Office prime rent per /sqm Increase in prime rents Prime rents yoy in % (left) In /sqm (right) 48 Source: DG HYP German Real Estate Market report/ DG HYP Main Regional Real Estate Markets report

49 NETHERLANDS OFFICE MARKET RESULTING FROM FAVOURABLE DEVELOPMENTS Current trends show very favourable market developments Office Employment > % Office take-up H > H % Total Office Space 2016 H % Vacant space 2016 H % Passing rents* 2016 H *Excl. incentives 0.1% The Netherlands office market provides further diversification opportunities. Furthermore, there is benefit from exposure to varied property markets that are less correlated and are at different stages of the cycle. especially in Amsterdam Office Employment > % Office take-up H > H % Vacant space 2016 H % Passing rents* 2016 H *Excl. incentives 1.9% Total Office Space 2016 H % Office Prime Yield Q Q pp (3.75%) Source: DTZ Zadelhof (C&W) Nederland Compleet Medio

50 GERMANY WHOLESALE AND LOGISTICS BENEFITING FROM IMPROVED MARKET CONDITIONS Strong consumer climate provides strong benefits to wholesale and logistics, economic metrics such as Germany s strong export position provide further benefits, increasing take-up Increasing take-up of logistics space H logistic take-up: focused on AT s main portfolio areas, H H1 Source: Berlin Hyp Survey Logistics & Real Estate

51 GERMAN RETAIL MARKET Growth of wages and consumer prices Increase in real disposable income Consumer climate is strong Retail rents doubled within 20 years especially in Berlin 51 Source: DG HYP German Real Estate Market report/ DG HYP Main Regional Real Estate Markets report

52 # of bankruptcies millions millions GERMAN HOTEL MARKET OVERVIEW Overnight stays across all hotel accommodation types Transaction volume of hotel properties RevPar development Rated hotels by category Insolvencies in the accommodation services sector Total: 8,521 *Jan 2017 Source: Smith Travel Research (STR) The German hotel market remains highly fragmented despite growing investor interest 52 Berlin Berlin Stralsund/Rügen

53 MACRO FUNDAMENTALS SUPPORT GCP Population development Population density 2016 (persons per sqkm) Annualized growth in rent price index* Source: destatis , forecast based European Commission spring 2017 forecasted growth rates Source: destatis From 1991 to 2015 the amount of households increased by 15.7% International and domestic immigration trends to cities also support the stronger forecasted increase in the amount of households in cities, reflected in high rent and price increases mainly in German large cities Source: destatis House price index in real terms for Germany vs. US, UK, and France German rental yields vs. German 10 year government bond yields (1990 date) Average rental yield Market rental yield German 10-year yield Source: OECD Source: Deutsche Bank Negative bond yields on one hand coupled with the prospect for With 10 years German bond yielding below 0.5% the German real estate market rising property prices makes the German Residential sector very 53 represents a unique opportunity to generate attractive adjusted risk return attractive from a risk reward perspective 53

54 AROUNDTOWN S STRONG ACCESS TO CAPITAL MARKETS: 7.6 BILLION RAISED IN 21 ISSUANCES SINCE 2015 Nov-17 Oct-17 Oct-17 Sep-17 Jul-17 Jun-17 May-17 Credit Rating Investment grade rating by S&P of BBB+ (A-2 Short Term) Equity and bond bookrunners Apr-17 Mar-17 Mar-17 Jan-17 Jan-17 Dec-16 Nov-16 Oct-16 Jul-16 Apr-16 Apr-16 Dec-15 July-15 Apr-15 Feb Jan-15

55 GCP S STRONG ACCESS TO CAPITAL MARKETS: OVER 4 BILLION RAISED IN 20 ISSUANCES SINCE 2012 Oct-17 Issuance of Series H, 15-year straight bonds 110m under the EMTN programme, coupon of 2% p.a. Jul-17 Issuance of Series G, 9-year straight bonds 600m under the EMTN programme, coupon of 1.375% p.a and repayment of 321m of Series D (2% coupon, 4 years to maturity) extending the average maturity and reducing the cost of debt Jul-17 Jun-17 Sep-16 Established 1.5 billion Euro Medium Term Note (EMTN) Programme Equity capital increase of 198m at 18 per share Issuance of 200m perpetual notes, coupon of 2.75% p.a. Feb-16 Issuance of Series F, 2022 convertible bonds of 450m, coupon of 0.25% p.a, conversion price of Jan-16 Completion of the conversion of Series C convertible bonds ( 275m) Sep-15 Tap issuance of 150m of 10-year straight bond to an aggregate nominal amount of 550m Sep-15 Equity capital increase of 151m at 15.9 per share Munich Jul-15 Apr-15 Tap issuance of perpetual notes of additional 100m Issuance of Series E, 10-year straight bond of 400m with a coupon of 1.5% p.a. Mar-15 Tap issuance of perpetual notes of additional 250m Feb-15 Oct-14 Issuance of 150m perpetual notes, coupon 3.75% Redemption of straight bonds with nominal amount of 350m. Issuance of 7-year straight bond of 500m with a coupon of 2% p.a. Jun-14 Tap issuance of convertible bonds with gross proceeds of 140m Apr-14 Tap issuance of existing straight bonds with gross proceeds of 160m Feb-14 Issuance of Series C, 5-year convertible bonds of 150m and a coupon of 1.50% p.a Frankfurt am Main Dec-13 Equity capital increase of 175m at 6.5 per share Oct-13 Full conversion of 100m Series A convertible bonds into equity Jul-13 Issuance of Series B, 7-year straight bonds of 200m with a coupon of 6.25% p.a. Feb-13 Equity capital increase of 36m at 4.5 per share Oct-12 Issuance of Series A, 5-year convertible bonds of 100m with a coupon of 8% p.a. Dortmund 55 Jul-12 Equity capital increase of 15m at 2.8 per share

56 AROUNDTOWN BOND COVENANTS 1 Bonds Series E and F are ECB eligible 2 The bonds are unsecured and have the below covenant package Hamburg Overview of Covenant Package Covenant Type Convertible Bond C 2021, Bond D 2022, Bond E 2024 Bond F 2023 and EMTN programme 1 Limitation on Debt Total Debt / Total Assets <=50% (1) <=60% (1) 2 Limitation on Secured Debt Secured Debt / Total Assets <=45% (2) <=45% (2) 3 Maintenance of Unencumbered Assets Unencumbered Assets/Unsecured Debt >= 125% (3) >= 125% (3) 4 Maintenance of Coverage Ratio Adjusted EBITDA / Net Cash Interest >=1.5x >=1.8x 5 Change of Control Protection 6 No cash distribution restriction from subsidiary level CB Anti-Dilution Protection CB Dividend Protection CB Protection on Equity Sale of Subsidiaries Notes: 1) Total Net Debt / Total Net Assets 2) Secured Net Debt / Total Assets 3) Net Unencumbered Assets / Net Unsecured Indebtedness Minimum holding rate on subsidiaries; and Funds to be reinvested in case of sale; and AT is restricted in dividend distribution in case of sale 56

57 Mainz Berlin AROUNDTOWN FINANCIAL HIGHLIGHTS ( MILLIONS) 1-9/ /2016 Rental and operating income Net Rental Income Adjusted EBITDA 1) FFO I 1) Stuttgart FFO I per share in / /2016 EBITDA 1, Net Profit 1, EPS (basic) in Rotterdam 1) including AT s share in GCP s adj. EBITDA and FFO I 57

58 AROUNDTOWN FINANCIAL HIGHLIGHTS ( MILLIONS) as of 30 September December 2016 Cash and liquid assets Investment property 8,400 5,016 Total Assets 12,093 8,089 Total Equity 6,471 3,941 Total Equity pro forma 1) 6,921 3,941 EPRA NAV 5,742 3,871 EPRA NAV incl. perpetual notes 6,946 4,349 EPRA NAV incl. perpetual notes pro forma 1) 7,396 4,349 Convertible bonds Straight bonds 2,615 1,714 Loans and borrowings 1,699 1,151 LTV 37% 39% LTV pro forma 1) 33% 39% Equity ratio 54% 49% Hamburg Berlin 1) including the equity capital increase in October 2017 Baden-Baden 58 Berlin Amsterdam Hannover

59 V a l u e C r e a t i o n STRATEGY AND BUSINESS MODEL Healthy capital structure with a strong & conservative financial profile Asset repositioning, increasing cash flow, quality, WALTs and value Quality assets top tier cities, Germany/NL Keep improving the company rating with a long term target of A- Attractive acquisitions below market & below replacement costs Income generating portfolios with limited downside risk STRONG CASH FLOW, QUALITY PORTFOLIO WITH GROWTH POTENTIAL REPOSITIONING AND OPERATIONAL IMPROVEMENTS ACQUISITION AND TAKEOVER DUE DILIGENCE SOURCING AND TARGETING ACQUISITIONS Diversified and large base deal sources Acquisition criteria Institutional investors Receivers Value add through operational improvements Cash flow generating assets Private Equity cherry-pick best deals Banks Screening process Vacancy reduction potential Rent level per sqm is below market level (under-rented properties) Loan funds Broker network Distressed owners Acquisitions in good locations in top German/NL cities Purchase price below replacement costs and below market values Potential to reduce the cost per sqm significantly through operational improvements 59

60 FULL CONTROL OVER THE ENTIRE OPERATIONAL VALUE CHAIN Berlin Provides letting advice Strategy planning for vacancy decrease Pooling of know-how and synergies Central Letting Team on and off site service constant on site service signs off on finalized rent contracts monitors performance Legal Head of Operations Regional Asset Manager (AM) Rental and marketing responsibility Lease management Contract negotiations WALT management 24/7 tenant service Capex analysis Performance monitoring incl. on site visits Regional brokers have specific local market insight Nationwide brokers have comprehensive network ideal for cross-selling Broker regional and nationwide Tenants first go-to person for all property related concerns Provides in-depth knowledge on every tenant Rotterdam Caretaker Property Manager (PM) Supports the AM in all relevant rental and tenant aspects Executes local marketing measures Direct on site contact for the tenant Manages the caretakers to distribute responsibilities Reducing vacancy and offering promotional features (rentfree time if tenant invests to refurbish the vacant space) Holistic asset management approach creates asset specialized team Localized asset and property management provides the tenant with one contact team and builds strong tenant relationships Collaboration with economic promotional bodies to enrol our vacant spaces which serves as a hub to reach more potential tenants nation-wide 60

61 LEASE MANAGEMENT AS DRIVERS FOR GROWTH ACHIEVING LONG-TERM GROWING CASH FLOWS Localized one team touchpoint approach building strong and long-term relationships with tenants. Teams become specialized with the individual asset, the tenants and the regional markets proactively meeting tenants on a regular basis Establishing and maintaining an open line of communication at all times short reaction times to tenants concerns ensure short business interruption (24/7 availability) Analysing tenant satisfaction levels and understanding their needs vs ongoing analysis of the teams performance Ongoing WALT analysis and forming a strategy on a tenants basis either sign an extension in advance or letting the contracts expire depending on factors such as demand factors, gap to market rent, tenant structure etc. Hands on collection management monthly collection reports on an asset level and a tenant basis solving problems before they develop Smart Capex and conversion planning maximizing the potential of the asset with scrutiny on execution Centralized in-house legal team support the AM with flexibility and fast reaction ability Leipzig Berlin Bremen Amsterdam Mainz Establishing and maintaining an open line of communication at all times 61

62 RENTAL AND MARKETING AS DRIVERS FOR ADDITIONAL GROWTH Tailor made rental and marketing strategy on an asset basis Comprehensive vacancy analysis conducting usability studies/letting concepts of vacant spaces in order to attract a large pool of diverse tenants Optimizing the usage of each asset and fitting to the demand and supply in the market Market and benchmark analysis enabling the management to execute optimal decision making and to closely track macro and micro developments Combination of various channels to cover the broadest market Negotiations with existing tenants: business plans/perspective and development expectations Online data bases Advertising billboards Regional and nationwide brokerage Governmental database (local economic promotion) E-commerce Prospective tenant screening Credit worthiness: credit rating, business plan plausibility check, online screening Tenant structure adaptability: competition protection, tenant type mix Contract negotiations: promotion incentives, adaptation to tenants future plans etc. Leipzig Frankfurt Reducing vacancy by tapping assets potential 62

63 ESG MEASURES: ENVIRONMENTAL AND SUSTAINABILITY 91 st Percentile RENEWABLE ENERGY Two thirds of properties have been switched to electricity from 100% renewable sources in the past two years, with the goal of gradually switching when the opportunity arises All of GCP s offices are supplied with energy from 100% renewable resources Cost savings of 23% have been achieved to date as a result HEATING SYSTEMS Replacing heating systems to district heating with the focus on renewable resources or centralized gas with the focus on climate-neutral produced gas 1/3 of the portfolio uses gas supplied heating, of which 28% has been switched to climateneutral gas CO2 missions reduced by 20k tons as a result. A further 13% will be switched in the next two years, and the remainder gradually as existing contracts expire New gas contracts are signed only with suppliers that provide 100% climate-neutral gas EFFICIENCY AND IMPROVEMENTS Working with external providers to ensure efficient waste separation and management, optimizing recycling process Creating awareness among our tenants through various language-independent handouts, posters and explanatory videos regarding energy and heating saving behavior and proper trash disposal Working on a Photovoltaic pilot project that will supply 150 apartments with solar energy, with potential to expand GCP continuously reviews its portfolio to identify potential energy-saving measures or reduction of CO2 emissions Goal of continuously reducing the carbon footprint 63

64 ESG MEASURES: SOCIAL RESPONSIBILITY Neighborhood and community initiatives 91 st Percentile The creation and maintenance of a comfortable community feeling is of high priority to Grand City, and this is the target of our various initiatives GCP organizes over 150 family-friendly tenant events such as Easter egg hunts, barbeques, summer and Christmas-related festivities to foster and support a community feeling, as well as various contests Supporting local associations such as kids soccer clubs, language schools, homework initiatives for children and educational projects, social and consulting services, back-to-school equipment, various cultural events, etc. Additionally, free spaces are provided for activities such as art projects or workshops EPRA Award 1 st place Outstanding Contribution to Society for outstanding service provided to its tenants Modernization and accessibility measures Installations of playgrounds (both indoor and outdoor), fitness trails, BBQ spaces Elderly-friendly installations, e.g. elevators, ramps, stair lifts, bathrooms Partnering with local bodies and organizations to support the creation of community spaces and contributing to a comfortable residential environment Employee commitment Leadership Program provides employees the opportunity for personal development and internal advancement potential Providing benefits such as a dedicated, free-of-charge fitness center and classes at the Company s operational headquarters Regular trainings for all staff (expert in-house and external trainers) High employee retention rate, including among management 64

65 ESG MEASURES: TENANT SATISFACTION EPRA Award 1 st place Outstanding Contribution to Society for outstanding service provided to its tenants Best-in-class tenant service through professional and 24/7 availability A dedicated and professional service team is available 24/7 for existing and prospective tenants, reachable through toll-free numbers, , and the recently launched GCP mobile app GCP s Service Center is certified with two TÜV service quality certificates, and in March 2017 passed the demanding annual TÜV inspection Ticketing system: tenant applications and requests are documented in detail to allow for an efficient follow-up on all stages of the request setting up schedule for repairs, visiting master apartments, discussing timetables etc. A ticket is not closed until a request has been followed up to ensure tenant satisfaction 65

66 ESG MEASURES: TENANT SATISFACTION WITH IT SUPPORT Advanced IT/software systems to monitor the complete portfolio and to identify fluctuations of tenants, with immediate control over newly acquired assets Operational excellence with tenant management software - top service to ensure tenant satisfaction and reduce termination EPRA Award 1 st place Outstanding Contribution to Society for outstanding service provided to its tenants Tenant portal app for smartphones, enabling tenants to communicate with property management, and submit and monitor the status of service requests Tenants are able to book and manage consultations with property management through the app 66

67 DISCLAIMER IMPORTANT: This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law, e.g. regarding national and international insider dealing rules, and must not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by the recipient to any other person. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein. This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of the Group ("forward-looking statements"). All forward-looking statements contained in this document and all views expressed and all projections, forecasts or statements relating to expectations regarding future events or the possible future performance of Aroundtown SA or any corporation affiliated with Aroundtown SA (the Group ) only represent the own assessments and interpretation by Grand City Properties S.A. of information available to it as of the date of this document. They have not been independently verified or assessed and may or may not prove to be correct. Any forward-looking statements may involve significant risks and uncertainties and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. No representation is made or assurance given that such statements, views, projections or forecasts are correct or that they will be achieved as described. Tables and diagrams may include rounding effects. This presentation is intended to provide a general overview of the Group's business and does not purport to deal with all aspects and details regarding the Group. Accordingly, neither the Group nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the accuracy or completeness of the information contained in the presentation or of the views given or implied. Neither the Group nor any of its directors, officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith. Aroundtown SA does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation. Munich Berlin Baden-Baden Leipzig Hamburg Düsseldorf