THREE MONTH FINANCIAL RESULTS 2016 MAY 19, 2016

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1 THREE MONTH FINANCIAL RESULTS 20 MAY 19, 20

2 01 OVERVIEW & INVESTMENT HIGHLIGHTS

3 Overview ADO the pure-play Berlin residential specialist Investment highlights Key portfolio metrics (end of Q1 20) Berlin residential pure play with a 1.6bn quality portfolio Efficient, fully integrated and scalable platform with clear strategy to create value. This unique platform allows management to have in-depth knowledge of the Berlin market from almost a decade of local presence Exceptional rental growth demonstrated with 6.5% average annual like-for-like growth over the past four years ( ) supported by quality portfolio, smart targeted capex investments and active management Conservative financial strategy with c % target LTV, c. 5.3 years weighted average maturity, with low (2.3%) average cost of debt (which is expected to fall below 2% during the year) and marginal cost of debt of 1.4% supporting FFO profile Buildings 311 Residential Units,493 Commercial Units 891 Total Units,384 Lettable area (k sqm) 1,091 Property value 1.6bn EPRA NAV* 849m Current cash position* 90m LTV* 45.6% In-place rent 78.5m *Excluding the effect of the 98m additional net-equity raised on April 21, 20 by issuing 3.5 million new shares Our properties a focussed residential portfolio¹ Commercial² 11% Other 2% with potential for privatization³ Mid term potential 10.8% Long term potential 10.7% Privatisation portfolio 2.5% Schichauweg Tempelhof Schildhornstr. Steglitz Sommerstr. Reinickendorf Residential 87% 1 Based on in-place rent total portfolio 2 Commercial in-place rent mainly as part of residential buildings 3 Based on total units Current hold portfolio 97.5% 2

4 Highlights Q1 Financials Q Income from rental activities 20.4m 65.8m EBITDA from rental activities 14.4m 48.5m EBITDA Margin 75% 78% FFO1 9.4m 30.7m FFO1 per share EPRA NAV per share Proforma EPRA NAV per share LTV % 43.6% Proforma LTV % - Operations Q Rental growth l-f-l (LTM) 5.9% 7.3% Vacancy rate 3.8% 4.0% Privatization - avg. sales price /sqm 2,964 2,801 Total maintenance & CAPEX /sqm Including the effect of the capital increase after the end of the quarter 2 Excl. new acquisitions signed after the end of the quarter Operational performance on track with Income and EBITDA from rental activities benefitting significantly from portfolio growth Like-for-like rental growth of 5.9% confirms our target of 5% like-for-like rental growth for 20 Vacancy rate improved to 3.8% EBITDA-margin is, as usual for Q1, negatively impacted by the seasonal high maintenance level of the winter season. We expect EBITDA-margin and total maintenance & CAPEX to come back to similar levels as for the full year 20 Privatization program continued strong with an avg. sale price of 2,964 per sqm, well above the avg. portfolio value for Central Locations of 1,700 per sqm On April 21, 20 we raised net proceeds of 98m by issuing 3.5m new shares. The shares where place at representing a discount of only 1.7% compared to the previous closing price. The proceeds will be used for further growth 3

5 02 ADO PORTFOLIO AND STRATEGY

6 ADO has a high-quality, centrally located Berlin portfolio ADO portfolio focused on Central Locations Spandau Reinickendorf N Pankow Building locations: Central Locations 4 North East South West High quality turn of the century mostly low rise buildings 55% % of buildings 29% % of buildings 26% 22% 19% W Charlottenburg -Wilmersdorf Steglitz- Zehlendorf Mitte Central Friedrichsha in-kreuzberg Neukölln Tempelhof- Schöneberg S Lichtenberg Marzahn- Hellersdorf Treptow- Köpenick E 5% < % 12% 10% Year of construction % % < # of floors 1% >18 Key metrics residential portfolio (end of Q1 20) 1 Central Locations 4 North East South West Total Property value (in mill. ) ,559 Number of units 6,196 3,5 1, ,799,493 Avg. Rent in / sqm / month Avg. New letting rent in / sqm / month Occupancy (physical) 96.6% 97.4% 97.6% 97.8% 93.9% 96.2% 1 All values except the property value are for the residential portfolio only 2 Based on the last three months 3 Positively impacted by the high turn over and high rent level of the Löwenberger Straße project. Normalized for this effect the avg. new letting rent East would be 8.06 / sqm 4 Berlin s Central Locations comprise the districts Charlottenburg-Wilmersdorf, Friedrichshain, Kreuzberg, Mitte, North Neukölln, North Steglitz, Prenzlauerberg, South Reinickendorf and Schöneberg 100% exposure within Berlin city borders with around 50% in Central Locations 5

7 New deals of 1,060 units in Berlin, partly taken over in Q1 and partly in Q2, fitting our portfolio with attractive upside Key metrics Acquisition cost 1 1m 1,535 / sqm Residential / commercial area sqm 74,913 /8,105 Number of residential/commercial units 978 / 82 Rental income p.a. 5.4m Avg. rent / sqm / month current 5.68 Avg. new lettings rent / sqm / month 6.92 Vacancy residential/commercial 2% / % Estimated FFO1 1 Including 56m deals to be taken over in Q2 3.8m W Spandau Reinickendorf Charlottenburg -Wilmersdorf Steglitz- Zehlendorf N Mitte Central S Pankow Friedrichshain -Kreuzberg Neukölln Tempelhof- Schöneberg Lichtenberg Marzahn- Hellersdorf Taken over in Q1 20 Expected take over Q2 20 Treptow- Köpenick E Portfolio and assets located partly in inner city location like Charlottenburg, Wedding and Neukölln and partly in the outskirts with Marzahn and Spandau Mixed property age with Altbau buildings from the turn of the century and new buildings from the 90 s Substantial rent upside for new lettings with approx. 40% reversionary potential to market rents in the inner-city assets and 20% in the outskirts New financing expected of 50%, to maintain the company LTV strategy with an average interest rate of up to 1.5% Expected annual FFO contribution of ca. 3.8m in the first year with overall like-for-like rental growth expected of at least 5% Soldiner Str. 37 Wedding Sonnenallee 77 Neukölln Hakenfelder Str.9 Spandau Sizeable acquisition with a strong fit to the existing ADO portfolio 6

8 Smart targeted CAPEX investments combined with active asset management are the key drivers of our business model Residential like-for-like rental growth 1 (%) From modernization capex 5.8% 2.5% 1.5% 4.7% 1.3% 1.0% 1.8% 2.4% 8.0% 3.3% 1.6% 3.1% Regular rent increases From fluctuation w/o capex and vacancy reduction 7.3% 3.8% 5.9% 2.7% 2.7% 2.6% 0.8% 0.6% Q1 1 Includes vacancy changes Maintenance & capex ( / sqm) Avg Q1 20 Maintenance Capitalized maintenance Avg.: 6.5% Modernization capex Total Q1 growth of 5.9% in line with our average of 6.5% p.a. like-for-like rental growth over the past four years and our 20 target Growth beyond rent table through targeted capex investments, improving the quality and rent level of the portfolio Rent increases to market levels through tenant fluctuation without capex & reducing portfolio vacancy by active marketing with location specific approach High regular rent increases implemented up to the legal limits. Effects of the 20 Mietspiegel will drive growth over the year 20 Maintenance level for Q1 was higher due to the winter season in combination with the high proportion of newly acquired units during the last 12 months Modernization CAPEX was exceptional high due to the high rate of projects finalized in Q1 (more than 300 units of which 200 units are out of the Carlos portfolio) We expect maintenance and CAPEX levels over the year to come back to our long term averages Exceptional rental growth continues at 5.9% on track for the 20 target of at least 5% 7

9 Completion of construction works increased units available for marketing at the end of the quarter Vacancy split¹ 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 4.8% 0.4% 4.0% 3.8% 0.5% 0.4% 2.5% 0.8% 1.7% 0.9% 1.0% 1.9% 1.1% 0.4% 0.4% 0.6% Q Q4 20 Q1 20 Overall reduction in vacancy by 0.2% in the first quarter High completion rate of work results in a decrease of vacancy due to construction by 1.0% and a corresponding increase in units available for marketing of 0.9%. More than 300 units have been completed during Q1 of which 200 units are out of the Carlos portfolio Positive start of Q2 indicates to a further significant reduction of the vacancy rate in the next quarters out of the units which are now available for marketing Marketing Marketing (Carlos) Construction Construction (Carlos) Privatization 1 Based on physical vacancy, residential only. Commercial vacancy rate Q1 4.8% vs Q4 5.5% Vacancy reduction by 0.2% in Q1 20 to be followed by further improvements 8

10 Case studies Carlos Portfolio Integration and improvement ongoing Occupancy rate improving above pre-acquisition levels Key metrics (per April, 20) 97.0% Location Spandau & Reinickendorf Acquisition price 376m Current fair value 4m/ 1,039 per sqm Number of residential units 5,748 Avg. rent / sqm / month: At acquisition 5.19 Current average 5.30 Avg. new lettings 5.83 Rent restricted units 48% 96.5% 96.0% 95.5% 95.0% 94.5% 94.0% 95.9% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 96.1% Apr New letting volumes demonstrate operational improvements Investment program on track Apr May Jun Jul Aug No. of New lettings Sep Oct Nov Dec Jan Feb Mar Apr Average No. of cancellations Apr May Jun Jul Aug Sep No. of finished Units (resi) Oct Nov Dec Jan Feb Mar Apr Finished Units accumulated Turn-around of Carlos on track with 200 units modernized in Q1 and further improvements to come 9

11 Privatization activities on target Privatization results and outlook Sales profit Avg. sales price vs. portfolio value 26 units sold in Q1 20 for gross proceeds of 4.6m, generating close to 75% value uplift compared to average book value of Central Locations Comparably low taxable profit of % results from the fact that most units have already been acquired as condominiums and therefore been carried at higher book values We target to sell around 100 units in 20 as we expect further price increases for condominiums especially in inner city locations and try to maximize profits not sales volume /sqm 3,000 2,500 2,000 1,500 1, ,700 Avg. Portfolio value Central locations 31/12/ Privatization potential 2,964 Avg. sales price Q1 20 Units 4,000 3,500 3,000 2,500 2,000 1,500 1, Privatization portfolio 1,764 Medium term potential 1,756 3,929 Long term potential Total 26 units sold in Q1 20 for an average sales price of 2,964 per sqm 10

12 03 FINANCIAL OVERVIEW

13 Proforma NAV per share of following equity raise in April 20 Comments In m March 31, 20 Dec 31, 20 (Unaudited) (Audited) Investment properties 1 1,521 1,459 Other non-current assets 3 4 Non-current assets 1,524 1,463 Cash and cash equivalents Other current assets Current assets Total assets 1,688 1,670 Interest bearing loans Other liabilities Deferred tax liabilities total Liabilities Total equity attributable to 789 shareholders of the company 786 Non-controlling interests 9 9 Total Equity Total shareholder s equity and liabilities 1,688 1,670 EPRA NAV No. of shares EPRA NAV per share Total portfolio value of 1,559m as at 31 March, 20 includes investment and trading properties. The fair value of the portfolio was assessed by CBRE as of December 31, 20 and will be updated again on June 30, 20 Carlos Remaining portfolio - mostly in Central Berlin Total Total fair value 4m 1,144m 1,559m Value per sqm 1,039 1,642 1,422 Multiplier (current rent) 17.0x 21.1x 19.9x Multiplier (new letting rent).5x.0x.2x 2 More than 40m cash has been deployed for acquisitions in Q1 20. the existing proforma cash position ( including the additional cash from equity raising in April 20, 20) will enable us to purchase additional 300m million deals while maintaining our LTV strategy 3 Interest bearing loans include 777m loans from banks and a loan from Harel Insurance in an amount of 20m related to the WayPoint portfolio 4 Our EPRA NAV per share is as of 31 March, 20. On April 21, 20 the Company raised additional equity by issuing 3.5m new shares for a total net proceeds of 98m. Proforma EPRA NAV per share after the capital increase is

14 Solid balance sheet with a proforma LTV of 39.3% and further upside from decreasing funding costs Key financing figures and strategy Total debt of 797m - primarily mortgage backed/secured Average cost of debt of 2.3% Almost all loans are fixed interest rate or hedged No near term maturities with avg. weighted maturity of c. 5.3 years Mid-term target LTV of c % allowing fast execution of acquisitions from free cash and target maturity for mortgage debt between 5 to 7 years The Company signed binding term sheet to refinance up to 0m with an expected fixed rate of up to 1.4% for 6 years. The refinancing is expected to be completed on June 30, 20. Refinancing overview Q2 20E Old interest rate New interest rate +0m 3.6% 1.4% 20 Refinancing volume Diversified funding profile with weighted average debt maturity of approx. 5.3 years Bank debt ( m) % 28 Average interest rate March 31, % 3.0% % Average interest rate Expected 20 year end 1 2.3% Max. 2.0% outlook after expected refinancing of at least 0 million of loans 2.0% 2.1% Solid financing structure supporting FFO with an LTV target of 45% to 50% 13

15 Overview of profit and loss Comments In m Q1 20 Q1 20 Year 20 Income from rental activities Cost of rental activities (3.9) (1.7) (11.4) Net operating income Overhead costs (2.0) (1.0) (5.9) EBITDA from rental activities EBITDA from rental activities margin (%) 75% 77% 78% Net result from privatization sales EBITDA total Financial cost interest bearing loans 3 (4.8) (3.6) (17.7) Financial costs shareholder loans/net others 4 (0.6) (2.1) (6.5) IPO related expenses (0.4) Depreciation & Amortization (0.1) (0.0) (0.3) EBT Income from rental activities increased by 88% driven by rental growth of 5.9% and acquisitions. Quarter-on-quarter growth was 6.7%. Q1 reflects an annualized income from rental activities of 81 million Strong rental growth supported by our investment strategy In % LTM March 31, 20 CAPEX 2.7% 3.8% Fluctuation 2.6% 2.7% Regular Increases 0.6% 0.8% Total 5.9% 7.3% Jan 1 Dec 31, 20 2 EBITDA from rental activities increased by 80%. Q1 20 results represent an annualized EBITDA of 60 million. EBITDA-margin is, as usual for Q1, negatively impacted by the seasonal high maintenance level of the winter season. We expect EBITDA-margin and total maintenance & CAPEX to come back to similar levels as for the full year 20 3 Financing relies predominately on bank financing provided by German mortgage banks. The average interest rate is 2.3%, which we expect to be reduced to below 2% after the scheduled refinancing in June 20 4 Includes mostly non-cash interest on loans from ADO Group which were all converted into equity at July 23, 20 upon the completion of the IPO 5 One-off expenses related to the IPO that were classified to the P&L in the financial statements 14

16 Overview of FFO Comments In m Q1 20 Q1 20 Year 20 EBITDA from rental activities Net cash interest (4.8) (3.6) (17.7) Current income taxes (0.2) (0.0) (0.1) FFO1 (from rental activities) Maintenance capital expenditures (2.4) (0.6) (4.1) AFFO from rental activities Net profit from privatizations FFO2 (incl. disposal results) FFO 1 per share FFO2 per share Note: On July 23, 20 the Company issued 10m new shares as part of the IPO. The number of shares is calculated as the weighted average number of shares for the period 3 Maintenance and CAPEX In / per sqm Jan 1 Mar 31, 20 (*) Jan 1 Dec 31, 20 Maintenance Capitalized maintenance Modernization CAPEX Total EBITDA from rental activities increased by 80% by our strong 5.9% l-f-l rental growth and successful acquisitions. The annualized Q1 figures represent an EBITDA of more than 60 million 2 FFO1 has increased by more than 110% due to our operational performance and the relative improvement of our net cash interest expenses which only increased by 36%. The comparably low growth compared to Q4 20 of 5% results mainly from the high level of maintenance in Q1. Going forward we expect a substantial growth in FFO1 compared to the Q1 run-rate based on continuing like-for-like growth, further acquisitions and from the expected refinancing 3 Maintenance and CAPEX level for Q1 was higher due to the winter season in combination with the high proportion of newly acquired units during the last 12 months and the high rate of modernization projects finalized in Q1 (more than 300 units of which 200 units are out of the Carlos portfolio). We expect maintenance and CAPEX levels over the year to come back to our long term averages 4 Our privatization business started at the end of In 20 we sold 26 units for a gross profit of 0.7 million, on track with our 20 target. The comparably low taxable profit of % results from the fact that most of these units have already been acquired as condominiums and have therefore been carried at higher values in our books compared to assets which have been acquired as rental only properties. The average sales price of 2,964 per sqm compares to an average portfolio value for Central Locations, which we see as most comparable, of 1,700 per sqm (*) Annualized figures based on total lettable area.

17 Guidance 1 We anticipate like-for-like rental growth going forward to be at least 5% which would have positive impact over our portfolio value, NAV and NAV per share 2 We update our FFO1 run-rate guidance to at least 50 million by the end of year 20 3 Average cost of debt by the end of year 20 will be reduced to below 2% with a LTV in the range of 45% to 50% after refinancing at least 0 million of existing loans 4 We expect to privatize around 100 units p.a. from 20 onwards 5 We update the dividend pay-out ratio to be up to 50% of FFO1 Kirchhofstr. Spandau Ahornstr. Steglitz Stettiner Str. Wedding Binzstr. Pankow Hefnersteig, Siemensstadt Kaiser-Friedrich-Str. Charlottenburg

18 04 CONTACT INFORMATION ADO Properties 20 Rue Eugene Ruppert L-2453 Luxemburg City Luxemburg Investor Relations

19 Financial Calendar 20 Aug 17, 20 Publication Q2 financial report Nov 17, 20 Publication Q3 financial report Steglitzer Damm Steglitz Martin-Opitz-Str. Wedding Putbusser Str. Wedding Grimmstr. Tempelhof Gutenbergstr. Köpenick Otawistr. Wedding 18

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