PATRIZIA Immobilien AG

Transcription

1 PATRIZIA Immobilien AG A leading real estate investment house in Europe Business Model and Financials October 2015 PATRIZIA Immobilien AG PATRIZIA Bürohaus Fuggerstrasse Augsburg T F immobilien@patrizia.ag

2 PATRIZIA A Leading Fund and Investment Manager PATRIZIA IS Rank 1 in the Feri EuroRating (Real Estate Study 2014/2015) as the asset manager with the highest market position and potential Already one of the world's top 50 real estate investment/asset managers (Institutional Real Estate 2014) One of the world s top 4 residential real estate investors (IP Real Estate 2014) The largest fully integrated real estate investment platform in the D-A-CH region One of Europe's top 2 residential real estate investors (IP Real Estate 2014) One of Germany's top 2 providers of institutional funds (BVI 2014) One of Germany's top 3 real estate asset managers (Asset Management Report 2012) One of the largest German real estate developers with a project pipeline worth EUR 1.4 billion PATRIZIA Alternative Investments is one of the leading teams in the area of large portfolio deals 2

3 Agenda BUSINESS MODEL FINANCIALS OUTLOOK 2015 PATRIZIA SHARE FINANCIAL CALENDAR AND CONTACT DETAILS 3

4 PATRIZIA Founder-led and Independent of Banks since 1984 Founded in 1984 by Wolfgang Egger, who still leads the company as CEO with entrepreneurial spirit PATRIZIA is a real estate investment company, i.e. a real estate investor and service provider Offering direct and indirect investments in commercial and residential real estate in Germany and Europe Own Pan-European management teams in Germany, Denmark, Finland, France, Luxembourg, the Netherlands, Spain, Sweden, UK and Ireland With German roots, now operating in 16 European countries, independent from country- and asset-specific cycles 800 staff (777 FTE) as of 30 June 2015, incl. 37 trainees ASSETS UNDER MANAGEMENT (IN EUR BILLION) As of 30 June RESIDENTIAL COMMERCIAL TOTAL OWN INVESTMENTS CO-INVESTMENTS BRIDGE INVESTMENTS THIRD PARTIES 4

5 Business Model Real Estate Investment House DIRECT ACCESS TO EQUITY AND PROPERTIES WITHOUT INTERMEDIARIES 189 Investors Real Estate SPV Co-Investment Yes/ No PATRIZIA SERVICE FEES REMAIN WITH PATRIZIA Advisory of reinvestment Research options & analysis Product development & identifying Realisation / investment targets cash inflow and investment potential Sales manage- Due diligence ment (housing & acquisitions privatisation, block sales) Structuring, Management optimisation, (platform revitalisation, administration, project development portfolio, fund, asset and property management) 5

6 Growth of PATRIZIA since 2007 ASSETS UNDER MANAGEMENT (IN EUR BILLION) BASIS FOR RECURRING INCOME NET GROWTH OF EUR 2.8BN IN 2014 EUR 3.4bn acquisitions EUR 0.7bn sales EUR 4.1bn fee generating transactions Growth of another EUR 2bn in 2015 again (sale of SÜDEWO led to an outflow of EUR 1.6bn in Q3) THIRD PARTIES CO-INVESTMENTS BRIDGE INVESTMENTS OWN INVESTMENTS H e Financial Market Crisis PATRIZIA GewerbeInvest SÜDEWO GBW, Seneca Tamar, Leo II Aviemore, NL Deal Leo I Basket Manchester, Harald 6

7 Asset Allocation of Funds and Co-Investments Capital Commitments by Investor Type in Business Volume Investor Domicile by Equity Commitment 6% 7% 8% 36% 21% 30% 92% Pension funds Saving banks Insurances Banks, Endowments and Corporates Other National institutional investors International institutional investors 189 investors in total 46% have multiple investments As of 30 June

8 Asset Allocation of PATRIZIA, Funds and Co-Investments Sectors 1 * Geographical Footprint of Assets 1 4% 2% 2% 2% 1% 9% 10% 5% 49% 73% 5% 2% 30% 6% Germany BeNeLux Residential Logistics UK & Ireland France Office Hotel Nordics Other Retail Light Industrial Health Other GROWTH EXPECTATIONS Residential: Commercial: NL, Nordics, UK Germany, UK, Nordics As of 30 June This diagram may be subject to discrepancies due to rounding differences 8

9 German Insurances are increasing their Real Estate Quota REAL ESTATE INVESTMENTS ENSURE LONG-TERM GUARANTEE COMMITMENTS DESPITE LOWER RATE OF RETURN ON INVESTMENTS Real estate assets per insurance company on average 2015: EUR 2.8bn 2014: EUR 2.5bn German insurances want to buy more real estate in Germany and in nearby European countries Requested investment types: directly held properties (55%), closed-end funds/club deals (50%), open-end special funds (32%), alternative investments like real estate debt funds (32%) Favoured sectors: retail, residential, office and logistics Focus: Core/Core+ and Value-add-properties Tough competition by sovereign wealth funds/family offices with rising prices Yield expectations: 5.1% for direct and 4.3% for indirect investments 82% of respondents expect a low interest rate environment in the long-term Property share of total assets in % e Planned acquisitions and divestments in 2015 in % Retail Residential 65 5 Office Logistics 55 5 Infrastructure 35 Health Care 10 Acquisitions Divestments Source: Boersen-Zeitung 24 June 2015; FAZ 26 June 2015; based on a survey by EY Real Estate among 30 major German insurance companies 9

10 Portfolio Transactions > EUR 100m since 2012 Acquisitions (I) NAME LOCATION DESCRIPTION ASSET CLASS DEAL TYPE DEAL VOLUME EQUITY RAISED CLOSING GBW GmbH D 31,900 units in the federal state of Bavaria Residential Co-Investment EUR 2.5bn EUR 1.1bn 05/2013 Süddeutsche Wohnen GmbH SÜDEWO D Acquisition of 21,000 units in the metropolitan areas of Baden- Württemberg Residential Co-Investment EUR 1.4bn EUR 0.6bn 03/2012 Leo I Hessen portfolio D 18 properties let to the federal state of Hessen Commercial Third Parties EUR 1.0bn EUR 0.6bn 03/2014 Harald Swedish Real Estate Fund D, SE Take over of a real estate fund with13,600 units in D and 630 units in SE (already sold) Residential Bridge Investment EUR 0.9bn EUR 140m (PATRIZIA s own cash) Q3 2015e Leo II Hessen portfolio D 36 properties let to the federal state of Hessen Commercial Third Parties EUR 0.8bn EUR 0.4bn 12/2013 Wilhelmina NL 5,100 units Residential Co-Investment EUR 564m EUR 253m 12/2014 Aviemore Topco UK three business parks Commercial Co-Investment EUR 538m EUR 120m 10/2014 Madame Tussauds UK Acquisition in London for Taiwanese insurance company Fubon Life Commercial Third Parties EUR 466m EUR 466 Q3 2015e Winnersh Holdings LP UK one business park Commercial Co-Investment EUR 311m EUR 84m 07/2013 TOTAL Acquisitions I EUR 8.5bn EUR 3.8bn 10

11 Portfolio Transactions > EUR 100m since 2012 Acquisitions (II) NAME LOCATION DESCRIPTION ASSET CLASS DEAL TYPE DEAL VOLUME EQUITY RAISED CLOSING Basket D supermarket portfolio with 107 retail properties Commercial Co-Investment EUR 286m EUR 152m 03/2015 Galleri K DNK Building with 20 high-street shops Commercial Co-Investments EUR 200m EUR 100m Q3/2015 SENECA D 83 German properties Commercial Co-Investment EUR 189m EUR 101m 12/2013 Bastide F 23 dwellings and 1 hall, in total 978 residential and 6 commercial units Residential Co-Investments EUR 179m EUR 84m 09/2015 PATRIZIA Nordic Cities DNK ten high-street properties Commercial Third Parties EUR 170m EUR 85m 12/2014 Citruz Holdings LP UK 24 regional properties Commercial Co-Investment EUR 160m EUR 43m 11/2014 Manchester UK 80,000 sqm mixed use site: Melia-Innside-Hotel, 9 bar and restaurant units, 700 carpark spaces, 17,000 sqm office building Commercial Bridge Investment EUR 140m EUR 33m 06/2015 Three Danish portfolios ( Royal, Valby, Fredericiagade ) DNK New construction projects and existing buildings Residential Co-Investment EUR 114m EUR 17m 10/2014 TOTAL Acquisitions II EUR 1.4bn EUR 0.6bn TOTAL Acquisitions > EUR 100m each EUR 9.9bn EUR 4.4bn 11

12 Portfolio Transactions since 2012 Disposals NAME LOCATION DESCRIPTION ASSET CLASS DEAL TYPE DEAL VOLUME CLOSING Süddeutsche Wohnen GmbH SÜDEWO DE Sale of 19,800 units to Deutsche Annington SE Residential Co-Investment EUR 1.9bn 07/2015 TOTAL EUR 1.9bn Out of the sale of SÜDEWO, PATRIZIA will receive a performance fee in the amount of EUR 103m 1 st tranche in Q3/2015: EUR 85.4m 2 nd tranche in Q4/2015: EUR 17.6m and a dividend on invested equity of EUR 13.3m; total impact on operating EBT: EUR116.3m On the other hand, the sale means the loss of the regular income from this participation: Planned earnings of approx. EUR 10.9m will not apply in H2/2015 (and around EUR 14.6m in subsequent years) FURTHER PERFORMANCE FEE POTENTIAL ACQUISITIONS SINCE 2012 TILL TODAY ARE THE POTENTIAL DISPOSALS OF FUTURE YEARS Acquisitions already made are performance fee-generating investments in the medium-term Revenues from management services still focus on recurring management fees, but performance fees expected to increase significantly over time All co-investments additionally associated with a return on equity 12

13 How does PATRIZIA manage the Deals? Single assets and portfolios can be acquired through a bidding process or an off-market deal EQUITY COMMITMENT BY THE INVESTOR Research-based concept with predefined investment criteria, usually acquisition of single assets Fund INVESTMENT PRODUCT Co-Investment ACQUISITION PROCESS First due diligence and initial binding offer Acquisition decision of the investor (yes/no) (Yes) deep due diligence and letter of intent from the investor Capital call and acquisition of the property/portfolio Deal-driven approach CAPITAL RAISING (INVESTOR) PORTFOLIOS AVAILABLE FOR ACQUISITION 13

14 Further Company Data EMPLOYEES Increasing assets under management require to strengthen local teams 800 staff (777 FTE), incl. 37 trainees 4 employees covering logistics from 09/2015 (NL) ASSETS UNDER MANAGEMENT (IN EUR BILLION) H Germany International TRANSACTION VOLUME (IN EUR BILLION) Acquisition Sales As of 30 June

15 Income Structure Service Business GROWING AUM REDUCE DEPENDENCY ON TRANSACTIONAL INCOME OVER TIME Same fee basis for co-investments and funds Management services generated revenues of EUR 54.5m in H1 2015, thereof EUR 26.2m out of co-investments and EUR 28.3m from third parties The regular income will be the increasing dimension depending on growing AuM while the one-time income will more or less remain stable H1 2015: EUR 54.5m H1 2014: EUR 49.0m 2014: EUR 106.3m Services H1 2015: EUR 32.4m (60%) H1 2014: EUR 24.3m (50%) 2014: EUR 51.3m (48%) Regular income non-performance-related Real Estate Investment House H1 2015: EUR 22.1m (40%) H1 2014: EUR 24.7m (50%) 2014: EUR 55.0m (52%) One-time income performance-related Asset Management Base: Investment volume Portfolio Management Base: Gross fund volume Fund Management Base: Gross fund volume Property Management Real Estate Development Base: Sales price Acquisition Base: Purchase price Sales Base: Sales price Performance, when indicated Base: RoE-Target Residential Base: Per unit p.a. Commercial Base: Net annual rental income 15

16 Sources of Income* Service Business Revenues Fee structure Fee describtion Fees H H Acquisition Fee Remuneration for providing investment opportunities Fixed percentage of the purchase costs of single assets or portfolios at the time of acquisition EUR 10.2m EUR 18.8m EUR 34.5m Sales Fee Remuneration for selling properties via single unit sales or block sales Fixed percentage of the proceeds/sales price when an asset is sold (notarised) EUR 11.3m EUR 6.0m EUR 17.7m Performance Fee Incentive to perform better than contracted Fixed percentage of earnings above the defined target yield according to the underlying business plan of each fund or co-investment EUR 0.6m EUR 0 EUR 2.7m TOTAL TRANSACTION AND PERFORMANCE FEES EUR 22.1m EUR 24.8m EUR 55.0m Asset, Fund and Portfolio Management Fee Remuneration for managing assets, funds and portfolios Fixed percentage of investment volume (fair value) EUR 25.5m EUR 18.9m EUR 40.6m Others Property Management Fixed amount of euros unit for residential; fixed percentage of net annual rental income for commercial; EUR 6.9m EUR 5.3m EUR 10.7m RE Development Fixed percentage of intended sales price TOTAL MANAGEMENT FEES EUR 32.4m EUR 24.2m EUR 51.3m TOTAL FEES EUR 54.5m EUR 49.0m EUR 106.3m * All mentioned fees are shown in the Revenues item 16

17 Service Business in Detail How we earn Fees SERVICE REVENUES BY FEE STREAM SERVICE FEES BY BUSINESS UNIT Asset- and Fund Management Fees Acquisition Fees Sales Fees Others Performance Fees Co-Investments Third Parties H H H H

18 Third Party Business German "Spezialfonds" INVESTMENT MANAGEMENT COMPANIES OFFER SPECIAL FUNDS Same fee basis for co-investments and funds Investors are savings banks, insurance companies, pension funds RESIDENTIAL: COMMERCIAL: PATRIZIA WOHNINVEST KVG, AUGSBURG Founded and built up by PATRIZIA since 2007 PATRIZIA GEWERBEINVEST KVG, HAMBURG Acquired from HSH Real Estate AG with effect from January 2011 (94.9% stake), purchase price EUR 35.7m PATRIZIA REAL ESTATE INVESTMENT MANAGEMENT S.À R.L. (REIM), LUXEMBOURG PATRIZIA Nordic Cities SCS SICAV-FIS: Acquisition of ten high-street office/retail properties in Denmark EUR MILLION TARGET VOLUME EQUITY COMMITTED ASSETS UNDER MANAGEMENT NUMBER OF FUNDS PATRIZIA WohnInvest KVG mbh 2,208 1,122 1, PATRIZIA GewerbeInvest KVG mbh 8,894 4,652 6, Pool Funds 5,273 2,581 3,658 9 Individual Funds 1, Label Funds 2,000 1,188 1,827 2 PATRIZIA Real Estate Investment Management S.à r.l. (REIM) TOTAL 11,271 5,859 7, Excludes real estate developments secured under purchase contracts 18

19 Third Party Business (I) PATRIZIA IS DOING THE ENTIRE MANAGEMENT UK ACQUISITION OF MADAME TUSSAUDS Closing expected in Q PATRIZIA acted as investment manager for Fubon Life, a Taiwanese insurance company Purchase price: GBP 332.5m (EUR 466m) GERMANY "HESSEN PORTFOLIO" (LEO II) LARGEST TRANSACTION INVOLVING COMMERCIAL REAL ESTATE IN GERMANY IN 2013 Closing of the deal in December 2013 Transaction volume: EUR 0.8bn Acquisition of an office real estate portfolio for a German-speaking consortium of investors 36 properties in the federal state of Hessen The buildings are predominantly used by ministries, courts, the police and the fiscal authorities Leverage ratio < 50% GERMANY "HESSEN PORTFOLIO" (LEO I) BIG MILESTONE AT THE BEGINNING OF 2014 Closing of the deal in March 2014 Transaction volume of around EUR 1.0bn Acquisition of an office real estate portfolio for a consortium of institutional investors 18 properties in the federal state of Hessen The buildings include the Ministry of Finance and the police headquarter in Frankfurt/Main Leverage ratio < 50% 19

20 Third Party Business (II) PATRIZIA GRUNDINVEST KVG CLOSED-END REAL ESTATE FUNDS FOR PRIVATE INVESTORS Characteristics Acquisition of assets with a value between EUR 50 to 150m that neither meet the requirements of the special funds nor of the co-investments Minimum investment of EUR 15,000 Expected annual return: 4 to 6% Access to numerous services and the entire European network of the PATRIZIA Group AIFMD 1 Officially licensed as an asset management company (KVG) by the German Federal Financial Supervisory Authority (BaFin) since July 2015 Financials Positive effects for the Group from the 2 nd year on 2015: EUR -2.0m (set-up costs) 2016: EUR +2.0m 2017: EUR +3.2m Target: EUR 1bn AuM within the next five years, thereof EUR 100m fund volume realised till year s end AIFMD = Alternative Investment Fund Managers Directive 20

21 The Strategy of Co-Investments SIGNIFICANT INCREASE OF INVESTMENT VOLUME In addition to funds in which PATRIZIA has no equity stake of its own, we offer co-investments with an own stake of up to 10% (participating interest depends on the investment and partners) With its existing equity PATRIZIA will handle a significantly higher total investment volume As well as income from management services, income from participating interests also represent a key success factor for co-investments Same fee basis for co-investments and funds 21

22 PATRIZIA Capital Allocation IN EUR MILLION, AS OF ASSETS UNDER MANAGEMENT INVESTMENT CAPITAL PARTICIPATION IN % THIRD PARTIES 7,899 0 CO-INVESTMENTS 7, RESIDENTIAL 5, GBW GmbH 2, Now free equity Süddeutsche Wohnen GmbH 1, due to sale of 2.5 WohnModul I SICAV-FIS 1, SÜDEWO in July 10.1 Others COMMERCIAL GERMANY PATRoffice Seneca (formerly DEIKON) sono west COMMERCIAL INTERNATIONAL 1, Aviemore Topco (UK) Citruz Holdings LP (UK) Plymouth Sound Holdings LP (UK) Winnersh Holdings LP (UK) BRIDGE INVESTMENTS Harald ,3 89,0 Manchester (UK) ,8 100 EUR 251.7m OWN INVESTMENTS available for new OPERATING COMPANIES investments 100 TIED INVESTMENT CAPITAL 16, Bank balances and cash TOTAL INVESTMENT CAPITAL 16, thereof borrowed capital (bonded loans) Loans to be deducted thereof PATRIZIA equity Acquisition of companies (PATRIZIA GewerbeInvest KVG) and the capital commitment from the operation of our services business (mainly investments in systems and current receivables) 22

23 Co-Investments WohnModul I WOHNMODUL I SICAV-FIS RESIDENTIAL / COMMERCIAL / REAL ESTATE DEVELOPMENTS balanced as at-equity participation Strategy Acquisition of real estate developments and residential or commercial real estate Asset, property and portfolio management done by PATRIZIA Sale of apartments during the investment phase via block sales or single unit sales Actively managed co-investment with a German pension fund Committed equity of EUR 820m Equity of EUR 721m has been called up by 30 June 2015 PATRIZIA has a10.1% stake 23

24 Co-Investments WohnModul I LAST DEALS DETAILS CLOSING LOCATION Basket Royal, Valby, Fredericiagade Acquisition in Dublin Wilhelmina - Acquisition of a supermarket portfolio retail properties located throughout Germany - Purchase price: EUR 286m - Acquisition of new construction projects (buy to longterm hold) and existing buildings (single unit sales) - Purchase price: EUR 114m - Residential building with 62 high-quality apartments - Plan: to privatise the apartments in the next years - Purchase price: EUR 15m - Biggest transaction that the Dutch market has ever seen in the housing sector - Portfolio comprises approx. 5,100 residential units - Purchase price: EUR 564m 03/2015 Germany 10/2014 Denmark 04/2015 Ireland 12/2014 Netherlands REAL ESTATE DEVELOPMENTS : EUR 1.2bn volume of real estate developments, more than 4,000 residential units Locations: Augsburg, Berlin, Düsseldorf (2x), Hamburg, Munich (3x) To be finalised between

25 Co-Investments Germany Residential SÜDDEUTSCHE WOHNEN GMBH SOLD TO DEUTSCHE ANNINGTON SE Acquired in 03/2012 from LBBW; gross purchase price of EUR 1.4bn (thereof EUR 600m equity); 21,000 units Sold in 06/2015; purchase price of approx. EUR 1.9bn; 19,800 units PATRIZIA received an unsolicited offer from Deutsche Annington for the acquisition of SÜDEWO. In its role as investment manager, PATRIZIA analysed and subsequently presented this offer to the investor consortium for consideration. PATRIZIA will receive a performance fee (EUR 102.9m) and a dividend (EUR 13.3m) in H2 Closing in July 2015 GBW GMBH PATRIZIA WINS BID FOR BAYERNLB SHARES IN GBW Gross purchase price: EUR 2.453bn PATRIZIA holds EUR 55.7m in equity (5.1% share), 27 partners 31,900 residential units, located in the federal state of Bavaria Closing of the deal in May 2013 PATRIZIA s sources of income One-time acquisition fee customary for transactions of this size and complexity in Q Recurring income from asset management (EUR 9.5m p.a.; full year effect since FY 2014) Sales fee via PATRIZIA sales team Return on equity: guaranteed dividend of 6% since 2014 amount to EUR 3.2m p.a. Performance fee (2014: EUR 11.4m) 25

26 Income from Co-Investments H vs. FY 2014 THE CO-INVESTMENT BUSINESS IN THE P&L The acquisition fee, asset management fee and normal performance fee is accounted in the P&L in the Revenues item SÜDEWO, GBW and Seneca (formerly DEIKON) are accounted in the P&L item Income from participations" WohnModul I is accounted for as Earnings from companies accounted for using the equity method H (FY 2014) Income from participations: EUR 10.0m (FY 2014: EUR 39.1m) SÜDEWO (Closing of disposal in July) Asset management fee: EUR 3.6m, no receipt in H2 due to exit (FY 2014: EUR 7.3m) Dividend on the invested equity: Extraordinary receipt of EUR 13.3m in H2 due to exit (FY 2014: EUR 1.7m) Performance fee: Extraordinary receipt of EUR 102.9m in H2 due to exit (FY 2014: EUR 5.6m) From H2/2015 there will be no regular income any more due to the sale of SÜDEWO GBW Asset management fee: EUR 4.7m (FY 2014: EUR 9.5m) Guaranteed dividend on the invested equity: EUR 1.6m (FY 2014: EUR 3.2m) Performance fee: regular receipt in Q (FY 2014: EUR 11.4m) Seneca (formerly DEIKON) Asset management fee is shown in revenues Dividend on the invested equity: regular receipt in Q (FY 2014: EUR 0.4m) Earnings from companies accounted for using the equity method: EUR 3.0m (FY 2014: EUR 3.2m) 26

27 Co-Investments Germany Commercial PATROFFICE FIRST PATRIZIA CO-INVESTMENT SENECA (FORMERLY DEIKON) ACQUISITION OF A PORTFOLIO OF 85 GERMAN RETAIL PROPERTIES Founded in 2007 Investment in German real estate, mixed use properties with commercial focus Co-investors are two of the leading European pension funds: APG (Netherlands) and ATP (Denmark) PATRIZIA holds a 6.25% stake (EUR 7.3m) PATRIZIA is doing the entire management The exit phase and the sale of the properties were commenced in 2013 Real estate worth EUR 29.4m was successfully sold in 2014 The current investment volume is EUR 294m and should be reduced till 2016 Closing of the deal in December 2013 Gross purchase price of EUR 189m Annual net basic rent of around EUR 15m 5 largest tenants: Netto, REWE, EDEKA, PENNY, Lidl 83 German retail properties (specialist outlets and supermarkets) PATRIZIA holds a 5.1% stake (EUR 4.9m) PATRIZIA s sources of income One-time acquisition fee customary for transactions of this size and complexity Recurring income from asset management (full year effect since FY 2014) Return on equity investment Annual as well as an exit performance fee subject to the achievement of certain hurdle rates 27

28 Co-Investments UK Commercial PATRIZIA IS DOING THE ENTIRE MANAGEMENT REALISED WITH OAKTREE CAPITAL MANAGEMENT, L.P. AS PARTNER CO-INVESTMENT DETAILS CLOSING PATRIZIA s STAKE Citruz Holdings LP - Acquisition of a commercial portfolio - 24 properties located throughout the UK in the office, industry and leisure segments - Sales in an amount of GBP 25m (EUR 35m) already completed - Purchase price: GBP 126m (EUR 160m) 11/ % Aviemore Topco Winnersh Holdings LP Plymouth Sound Holdings LP - Acquisition of three business parks - > 500 companies with 13,000 employees based: Hillington Park (Glasgow), Chineham Park (Basingstoke), Birchwood Park (Warrington) - Purchase price: GBP 430m (EUR 538m) - Business park located close to London Heathrow/near Reading (+4 ha development land) - Purchase price: GBP 245m (EUR 311m) - Acquisition of four assets in: Birmingham, Bracknell, Watchmoor Park and Camberley - Purchase price: GBP 34m (EUR 47m) - Asset in Bracknell already sold in Q3/ / % 07/2013 5% 2013/ % 28

29 Bridge Investments ACTUALLY BALANCED AS BRIDGE INVESTMENTS Harald Manchester First Street CHARACTERISTICS Short-term investments on the own balance sheet Balanced as inventories PATRIZIA is responsible for accounting, controlling, etc. and takes over the holding functions PATRIZIA controls the entire asset/legal entity, its operations and execution of the business plan Asset & Property Management via existing teams (outside PATRIZIA) during the Bridge Investment period STRATEGY Bridge investments will be sold until end of 2016 Portfolio sales to existing PATRIZIA vehicles/investors and/or 3 rd party market participants First deals likely to be completed by the end of the year Example: 630 units in Umea, Sweden, sold in June 2015 out of the Harald portfolio to a local investor 29

30 Bridge Investment Manchester PATRIZIA S FIRST INVESTMENT IN THE UK PRIVATE RENTAL SECTOR ( PRS ) Closing of the deal on 30 June 2015 Purchase price: approx. GBP 100m (EUR 140m) 80,000 sqm mixed use site with: Melia-Innside-Hotel (208 beds), nine bar and restaurant units, 700 carpark spaces 17,000 sqm office building known as No. 1 First Street : WALT of 9 years, let to high quality occupiers such as Ford, Auto Trader and Jacobs Engineering Site with capacity for the development of up to 93,000 sqm office space and approx. 500 new apartments PATRIZIA will develop the new constructions over the next 5-7 years This development will form the foundation for a dedicated Private Rental Sector (PRS) fund Financing and Financials: EUR 109.2m bank loans were recorded with a term to June 2016 by 2.3% Due to the closing date there was no relevant impact on the financial statements of H

31 Bridge Investment Harald UNIQUE OFF-MARKET TRANSACTION Acquisition of the Swedish real estate fund Hyresbostäder i Sverige III Gul AB via a voluntary public offer Portfolio with13,600 residential units in Germany and 630 in Sweden Gross asset value approx. EUR 900m Sale of the whole portfolio until end of 2016; the Swedish part has already been sold Financing and Financials: 100% of shares financed via EUR 140m PATRIZIA equity and EUR 200m debt (41% : 59%) Loans on corporate level with an interest rate at1.8% in the first 12 months, then 2.3% Approx. EUR 30m rental revenues on a pro rata temporis base in 2015 achievable (depends on date of sales, and transfer of ownership, usage and encumbrances respectively) Acceptance as at 3 August 2015: Norway 100%, Sweden 88.3% 31

32 Own Portfolio SALE OF PATRIZIA S OWN PORTFOLIO UNTIL YEAR-END 2015 TARGET 2015 approx. 150 units left, that implies 930 units to be sold H ACTUAL VALUES sale of 272 units 804 units left sale of approx. 12,000 units from REGION/ CITY UNITS SHARE UNITS SHARE Cologne/Düsseldorf % 1, % Hamburg % 1, % Munich % 5, % Frankfurt/Main % % Berlin 2 0.3% % Leipzig % Hanover % Dresden % Regensburg % Friedrichshafen % TOTAL % 13, % 32

33 Loan Development influenced by Bridge Investments BANK LOANS VS. EQUITY RATIO Financing via bank loans at property/portfolio level, bonded loans on corporate level Free of debt in the field of financing own 100% investments till year end; liberated equity can be reinvested in new co-investments Financing of bridge investments (on corporate level) as temporary opposing development; reduction depends on sales process in EUR m ,262 1,162 1,070 21% 19% 20% % 28% 35% max e 2016e 0 42% 55% % 35% 80% almost free of debt 80% 70% 60% 50% 40% 30% 20% 10% 0% Bonded loans Bank loans for own portfolio Bank loans for bridge investments Equity ratio in % 33

34 Net Asset Value NAV / INVESTMENTS SEGMENT SHOULD REPRESENT ONLY 20% OF THE OPERATING RESULT FOR 2015 Investment property and inventories were sold in H at a profit with a gross margin of 10.2% and 8.7% respectively, thus confirming the value retention of the properties The whole service business that should generate 80% of the operating result in 2015 is not reflected in the NAV calculation NAV can only serve as a component for determining corporate value in conjunction with the value of the services business EUR Investment property (fair value) 1 532, , ,717 78,507 53,124 Investments in joint ventures Participations in associated companies 6,809 15,810 18,295 68,497 72,824 Participations 3,134 18,407 80,074 96,555 97,449 Inventories (at cost) 2 407, , , ,694 1,149,494 Current receivables and other current assets 48,735 3,4 92,013 3,4 82,262 84,774 68,654 Bank balances and cash 43, , , , ,477 Less bonded loans ,000-77,000-77,000 Less current liabilities -16,354 3,4-25,876 3,4-75,759-92, ,365 Less bank loans -673, , , , ,188 Net Asset Value (NAV) 352, , , , ,469 Number of shares 52,130,000 57,343,000 63,077,300 69,385,030 69,385,030 NAV per share EUR 6.75 EUR 6.10 EUR 5.56 EUR 5.49 EUR 6.82 Share price at the end of the year EUR 3.43 EUR 6.46 EUR 7.67 EUR EUR Fair market valuation; (gross) sales margin of the fiscal year H1 2015: 10.2%, Q2 2015: 11.8% 2 Valuation at amortised cost; (gross) sales margin of the fiscal year excluding Bridge Investments H1 2015: 8.7%, Q2 2015: 0.7% 3 Figures excluding PATRIZIA GewerbeInvest KVG mbh, purchase loans eliminated (concerns 2011) and cash and cash equivalents increased by outflow of equity (concerns 2011 and 2012) 4 Adjusted for non-property-specific items 34

35 Agenda BUSINESS MODEL FINANCIALS OUTLOOK 2015 PATRIZIA SHARE FINANCIAL CALENDAR AND CONTACT DETAILS 35

36 Development of the Operating Result OPERATING RESULT IFRS EBT without valuation items New forecast: combined operating result for 2015 and 2016 of at least EUR 200m, split into the single fiscal years will be provided on 12 November H e e At least 200m INVESTMENTS MANAGEMENT SERVICES 100% 80% 60% 40% 20% 0% 80% 67% 48% 23% 28% 64% H % 2015e 100% 80% 60% 40% 20% 0% 20% 33% 52% 77% 72% 36% H % 2015e As of 30 June

37 Development of IFRS Figures EBT Earnings before income taxes: EUR 11.6m in H (H1 2014: EUR 15.2m) CONSOLIDATED ANNUAL PROFIT/LOSS Net profit for the period: EUR 10.1m in H (H1 2014: EUR 15.3m) H H As of 30 June 2015 in EUR million 37

38 Staff Costs NUMBER OF EMPLOYEES REMAINED CONSTANT SINCE THE END OF MARCH 2015 Increase in staff costs by 22.8% to EUR 43.5m (H1 2014: EUR 35.4m) due to new appointments (+10% FTE y-o-y) and salary adjustments in line with market trends EUR -3.2m effect from provisions for long-term variable compensation due to higher share price (+126% y-o-y) STAFF (NUMBER, NOT FTE) COSTS International employees Trainees and students Part-time employees German employees 38 H Q H Fixed salaries Variable salaries Sales commission employees Social insurance contributions Other

39 P&L EUR'000 Q Q H H Revenues 55,525 37, ,807 84,649 Income from the sale of investment property 1,383 2,067 2,969 5,512 Changes in inventories -14,540 1,494-22,219 5,178 Other operating income 5,945 2,636 7,079 3,860 Income from the deconsolidation of subsidiaries 5, ,277 0 Total operating performance 53,590 43,798 95,913 99,199 Cost of materials -11,474-11,625-18,467-26,415 Cost of purchased services 1-2,295-3,188-7,145-5,656 Staff costs -21,952-17,853-43,480-35,396 Other operating expenses 1-11,762-10,546-21,123-18,979 EBITDA 6, ,698 12,753 Amortisation of intangible assets and depreciation on property, plant and equipment -1,869-1,683-3,469-3,267 Earnings before finance income and income taxes (EBIT) 4,238-1,097 2,229 9,486 Income from participations 4,972 4,168 9,963 8,334 Earnings from companies accounted for using the equity method 2, ,018 1,566 Finance income 1, ,630 3,418 Finance cost -3,703-3,138-5,185-8,013 Gains/losses from currency translation -1, Earnings before income taxes (EBT) 8,035 2,019 11,648 15,190 Income tax ,252-1, Net profit 7,297 3,271 10,147 15,311 39

40 Balance Sheet ASSETS EQUITY AND LIABILITIES EUR' EUR' A. Non-current assets A. Equity Goodwill Share capital 69,385 69,385 Other intangible assets 38,417 39,407 Capital reserve 198, ,576 Software 10,229 10,795 Retained earnings Investment property 53,124 78,507 Legal reserves Equipment 5,246 4,476 Non-controlling shareholders 37, Participations in associated companies 72,824 68,497 Currency translation difference 2,008 1,030 Participations 97,449 96,555 Consolidated unappropriated profit 151, ,743 Loans 5,843 5,281 Total equity 458, ,048 Long-term tax assets 3, Total non-current assets 287, ,247 B. Liabilities Non-current liabilities B. Current assets Deferred tax liabilities 63,961 19,704 Inventories 1,149, ,694 Retirement benefit obligations thereof own investments 176, ,694 Non-current liabilities 82,798 82,544 thereof bridge investments 973,019 0 Total non-current liabilities 147, ,878 Securities Short-term tax assets 7,464 8,014 Current liabilities Current receivables and other current assets 68,654 84,774 Short-term bank loans 880, ,950 Bank balances and cash 126, ,361 thereof own investments 84, ,950 Total current assets 1,352, ,929 thereof bridge investments 795,762 0 Short-term financial derivatives 5,780 0 Total assets 1,639, ,176 Other provisions 2,195 2,142 Current liabilities 137,365 92,506 Tax liabilities 6,730 11,652 Other current liabilities 1,254 0 Total current liabilities 1,913, ,250 Total equity and liabilities 1,639, ,176 40

41 Agenda BUSINESS MODEL FINANCIALS OUTLOOK 2015 PATRIZIA SHARE FINANCIAL CALENDAR AND CONTACT DETAILS 41

42 Outlook 2015 UPDATE ON THE EXPECTED DEVELOPMENTS WE ARE FULLY ON TRACK OPERATING RESULT ASSETS UNDER MANAGEMENT SÜDEWO SALE OF OWN INVESTMENTS EQUITY RATIO / BANK LIABILITIES TARGETS 2015 new forecast: combined operating result for 2015 and 2016 of at least EUR 200m Split will be specified with the Q3/2015 figures growth of EUR 2bn remains valid, despite the sale of SÜDEWO (EUR -1.6bn) PATRIZIA will receive a performance fee in an amount of EUR 103m 1 st tranche July 2015: EUR 85.4m 2 nd tranche November 2015: EUR 17.6m and a dividend on invested equity of EUR 13.3m sell-off the majority of PATRIZIA's own portfolio as scheduled till year s end 2015 Due to the recent transactions, new forecasts: Equity ratio of 80% and almost debt-free till year-end

43 Agenda BUSINESS MODEL FINANCIALS OUTLOOK 2015 PATRIZIA SHARE FINANCIAL CALENDAR AND CONTACT DETAILS 43

44 PATRIZIA Share PATRIZIA SHARE AT A GLANCE ISIN, SIN (Security Identification Number) Code RESEARCH CURRENT ESTIMATES BANK ANALYST DATE RATING PRICE TARGET Baader Bank AG Andre Remke Buy EUR Bankhaus Lampe KG Dr. Georg Kanders Buy EUR Berenberg Kai Klose Buy EUR BHF-Bank AG Thomas Effler Buy EUR Commerzbank AG Thomas Rothäusler Hold EUR Deutsche Bank AG Katja Filzek Hold EUR equinet Bank AG Dr. Philipp Häßler Hold EUR Kepler Cheuvreux Thomas Neuhold Hold EUR NORD/LB Michael Seufert Hold EUR Oddo Seydler Bank AG Manuel Martin Buy EUR * Closing price at Frankfurt Stock Exchange Xetra trading DE000PAT1AG3, PAT1AG No. of shares in issue (since 19 August) 76,323,533 H high*/ low* EUR / EUR Closing price as at 30 June 2015* EUR Share price performance H1 80% Average trading volume per day first 6 months of 2015 Market capitalisation as at 30 June 2015* Indices P1Z 131,600 shares EUR 1.5 billion SDAX, GEX, DIMAX 44 SHARE PRICE JAN-AUG 2015: +72%* * In absolute share prices, adjusted by capital increase: +89% SHAREHOLDER STRUCTURE 9.41% 15.97% 10.53% 9.41% 3.49% 3.07% 3.02% 32.86% 34.36% 32.86% 26.32% 3.04% 3.07% 51.62% 51.62% 51.62% First Capital Partner GmbH (CEO Wolfgang Egger) Union Investment Privatfonds GmbH (as of May 2013) WA Holdings, Inc., USA (Wasatch) (as of Feb. 2015) Other institutional investors Private shareholders Capital increase from company funds on 18 August

45 Top Holders by Position SOURCE: BLOOMBERG, AUGUST 2015 Country Holder Name Position Percent Outstanding 10% 5% 1% Germany First Capital Partner (Wolfgang Egger, CEO) 35,813, Germany Union Investment 2,130, USA WA Holdings, Inc., USA (Wasatch) 2,109, Sweden SEB 1,732, Norway Norges Bank 1,183, USA Grandeur Peak Global Advisors 714, USA Dimensional Fund Advisors 659, USA Vanguard Group Inc 554, Germany Deutsche Bank AG 547, Sweden SEB Invest A/S 501, USA Transamerica Funds 443, France Allianz Global Investors 414, USA Lord Abbett & Co. LLC 335, USA Lazard Asset Management 275, Belgium KBC Group NV 249, Switzerland UBS AG 202, USA BlackRock Funds Advisors 187, USA Touchstone Advisors LLC 172, Germany DJE Investment SA 134, % Germany USA Other Nordics UK/Ireland 74% 45

46 PATRIZIA Market Capitalisation PROPER BALANCE BETWEEN FINANCIAL SOUNDNESS AND SHAREHOLDER REQUIREMENTS No dividend payment: cash stays within the company for new investments Issue of bonus shares in 2012, 2013, 2014, and 2015, each with a capital increase of 10% from company funds (i.e. without cash demand) Increase in share capital from EUR 52,130,000 in 2011 to EUR 76,323,533 in , /2015 in EUR million 46 Since 2012 every year share capital increase in kind

47 Agenda BUSINESS MODEL FINANCIALS OUTLOOK 2015 PATRIZIA SHARE FINANCIAL CALENDAR AND CONTACT DETAILS 47

48 Financial Calendar, Conferences and Roadshows 2015 November 12 Interim report for the first nine months of Roadshow with Berenberg Bank, Amsterdam, Brussels and Paris 24 Commerzbank German Commercial Property Forum, London th Berenberg European Conference, London 2016 March 17 Financial statements 2015 May 10 Interim report for the first quarter of 2016 June 16 Annual General Meeting, Augsburg August 9 Interim report for the first half of 2016 November 8 Interim report for the first nine months of 2016 The conference calls about the financial reports will usually be held at 3 pm CET. Invitations and dial-in numbers will be provided in advance. To stay informed, take a look at our website 48

49 Contact Details ARWED FISCHER CFO PATRIZIA Immobilien AG PATRIZIA Bürohaus Fuggerstrasse Augsburg MARGIT MILLER HEAD OF IR PATRIZIA Immobilien AG PATRIZIA Bürohaus Fuggerstrasse Augsburg VERENA SCHOPP DE ALVARENGA MANAGER IR PATRIZIA Immobilien AG PATRIZIA Bürohaus Fuggerstrasse Augsburg T F M margit.miller@patrizia.ag T F M verena.schoppdealvarenga@patrizia.ag Disclaimer This document does not constitute an offer or invitation to purchase or subscribe for any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon. This document contains specific forward-looking statements that relate in particular to the business development of PATRIZIA and the general economic and regulatory environment and other factors to which PATRIZIA is exposed. These forward-looking statements are based on current estimates and assumptions by the Company made in good faith, and are subject to various risks and uncertainties that could render a forward-looking estimate or statement inaccurate or cause actual results to differ from the results currently expected. PATRIZIA 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 publication. 49