IVG Immobilien AG. Company Presentation. May 2011

Transcription

1 IVG Immobilien AG Company Presentation May 2011

2 IVG Group Top Management Overview Top Management Gerhard Niesslein (58) Chief Executive Officer (CEO) IVG since 2008 Wolfgang Schäfers (46) Chief Financial Officer (CFO) IVG since 2009 Responsibility: Funds, Development, Asset Management, Corporate Office, Human Resources, Communication/Marketing Professional experience: CEO DeTeImmobilien Member of the Board Landesbank Hessen-Thueringen, Managng Director Commerz Immobilien Academic career: Studies of Law at the University of Vienna, PhD (Dr jur.) Responsibility: Real Estate, Caverns, Controlling, Corporate Development, Finance, Investor Relations & Capital Markets, IT/Risk/Process M., Accounting/Tax, Legal & Compliance Professional experience: Managing Director Sal. Oppenheim Partner Arthur Andersen Academic career: Studies of Business Administration at the University of Mannheim, PhD (Dr rer. pol.) European Business School Professor International Real Estate Business School / University of Regensburg 2

3 Agenda 1) Overview IVG Group page 4 2) Overview IVG Segments page 9 3) Key Financials 1Q11 page 22 4) Update Financing page 33 5) Outlook 2011/2012 page 38 6) Overview Real Estate & Capital Markets page 41 7) Excursus: IVG impacted by Financial Crisis 2008/2009 page 46 8) Contacts & Financial Calendar page 51 3

4 Overview IVG Group Corporate Snapshot (1) IVG Group at a glance On-balance Investment Real Estate Development Caverns IVG Off-balance Funds Institutional Private Asset Management Transaction Letting Development Management (in m) YTD 1) Total AUM thereof on-balance thereof off-balance Total revenues thereof from rents thereof from fees EBIT NAV per share (in ) NAV adj. per share (in ) 22,700 7,100 15, ,800 6,700 15, ,900 6,700 15, ) ) 9.29 # of employees (FTE) One of the largest investment platforms with focus on real estate and infrastructure (caverns) assets in Europe Long-term, value-oriented strategy based on active asset management for own and clients high quality assets Active on balance management of direct real estate and infrastructure assets Leveraging of real estate expertise and asset management capabilities through off balance fund platform offering innovative and customized investments solutions for clients Optimizing of equity returns and alignment of interest by coinvesting in managed funds Strong combination of industry expertise, local presence, and financial as well as capital market competency 1) as of 31 March, ) Adjusted for increased number of shares from capital increase 4

5 Overview IVG Group Corporate Snapshot (2) Comprehensive pan-european market expertise based on network of local branches Integrated investment- and asset managementplatform 17 Branches with approx. 235 full-time AM 2) - employees in all relevant European cities Comprehensive letting, transaction- and development expertise Supervision of approx. 750 properties with a total area of ca. 6.0m sqm AuM 3) of approx. 22.0bn 0.5 bn 0.4 bn 0.5 bn 2.6 bn 10.9 bn 2.8 bn 0.3 bn 2.2 bn 0.1 bn 0.2 bn 0.3 bn UK 1 Branch 14 FTE 1) Finland 1 Branch 11 FTE Germany 6 Branches 128 FTE Poland 1 Branch 7 FTE Netherlands 1 Branch 18 FTE Belgium 1 Branch 7 FTE France 1 Branch 22 FTE Sweden 1 Branch 3 FTE Spain 1 Branch 8 FTE Italy 1 Branch 3 FTE Hungary 1 Branch 7 FTE Austria 1 Branch 7 FTE 1) Full Time Employees 2) AM = Asset Management 3) AuM = Assets under Management on balance off balance 5

6 Overview IVG Group Business Segments Selected financials Focus Strategy Investment on balance Real Estate Development AuM 4.3bn Revenues 71.1m EBIT 1) 42.9m AuM 2) 1.3bn Revenues 121.3m EBIT 1) - 3.6m Office Europe Office Europe From value add to core Riding the cycle Recycling of equity into investment products Co-investments to ensure alignment of interest Selected development of office properties Risk mitigation by forward purchase/pre-letting Strategic property repositioning Strong focus on Green Buildings Caverns AuM 3) 1.0bn Revenues 6.5m EBIT 1) 1.8m Caverns Germany Development of underground gas and oil storage facilities (caverns) Asset management services for IVG Cavern Fund Funds off balance Institutional Private AuM 12.3bn Revenues 13.8m EBIT 4.5m AuM 3.0bn Revenues 1.0m EBIT - 1.2m Office / Retail Europe Office Europe Structuring, marketing and management of real estate funds for institutional investors Focus on core/+ properties and infrastructure (caverns) Structuring, marketing and management of real estate funds for private investors Focus on core properties 1) Before in value 2) Invested capital 3) Caverns under development as of March 31,

7 Overview IVG Group Corporate Milestones Corporate milestones IVG Group 1916 Foundation of the Verwertungsgesellschaft für Montanindustrie GmbH (Montan) 1951 Change of name to Industrieverwaltungsgesellschaft mbh (IVG) 1986 Change of corporate form to public limited company (AG), IPO and partial privatisation of 45% 1993 Full privatisation with a broad free float 1996 Launch of holding model, change of name to IVG Holding AG 1997 Concentration on commercial real estate in Europe 2002 Change of name to IVG Immobilien AG (following the disposal of all non-real estate oriented business segments) AuM 0.5bn AuM 0.7bn AuM 0.8bn AuM 1.0bn AuM 1.2bn AuM 1.5bn AuM 2.6bn AuM 3.0bn AuM 3.2bn AuM 5.0bn AuM 6.3bn AuM 16.0bn AuM 18.5bn AuM 18.3bn AuM 20.0bn AuM 22.4bn AuM 22.7bn AuM 21.8bn Acquisition of 50.1% of Oppenheim Immobilien-Kapitalanlagegesellschaft mbh (OIK) 2005 Acquisition of cavern business previously owned by the Federal Republic of Germany 2007 Shareholding in OIK increased to 94% 2008 Launch Cavern Fund total investment volume 1.7bn 2009 Initiation of financial and operational restructuring due to financial crisis 2010 Launch 1st Green Building Fund total investment volume 300m The federally owned company once known as "Industrieverwaltungsgesellschaft" has transformed into one of the leading European real estate companies since its IPO in

8 Agenda 1) Overview IVG Group page 4 2) Overview IVG Segments page 9 3) Key Financials 1Q11 page 22 4) Update Financing page 33 5) Outlook 2011/2012 page 38 6) Overview Real Estate & Capital Markets page 41 7) Excursus: IVG impacted by Financial Crisis 2008/2009 page 46 8) Contacts & Financial Calendar page 51 8

9 IVG Segments 1Q11 Segment Investment - Real Estate (1) European Investment Portfolio Portfolio figures # Properties: 250 Market Value ( 000): 4,271,385 Space (sqm): 2,135,733 Annual Rental Income ( 000): 257,890 Occupancy Rate (%): 90.0 NRI yield (%): 5.3 NOI yield (%): 5.1 Berlin, Spreespeicher Value (T ): 69,510 Space (sqm): 36,082 Frankfurt, Theodor-Stern-Kai Value (T ): 238,620 Space (sqm): 65,464 Focus on value enhancing investments Generation of sustainable / long-term cash flow Concentration on office properties Value optimization by active asset management Branch network to secure local market expertise Strategy set-up: from value add to core riding the cycle Munich, Dieselstr. 6 Value (T ): 211,560 Space (sqm): 65,502 GER 83.2% EU 16.8% Value - split by region Finnland 5.0% BeNeLux 2.4% Rest of EU 0.7% Dusseldorf 7.8% Paris, Place Vendôme Value (T ): 172,685 Space (sqm): 11,687 France 8.8% 4.3bn Frankfurt 12.1% Hamburg 16.9% Munich 29.3% Berlin 8.2% Stuttgart 8.8% as of 1Q11 9

10 IVG Segments 1Q11 Investment - Real Estate (2) Investment portfolio structure Investment profile Germany International Core/Core+ Value add Workout (income producing) Workout (non income producing) Net rent m Property related costs 1) m Total NRI m NRI yield % NOI m NOI yield % Gross rent (annualised) 2) m Contracted rent (annualised) 2) m Leased space 2) 000sqm 1, , ,869 Total space 2 000sqm 1, , ,136 Occupancy rate (eco.) 2) % Market value 2) m 3, , ,271 GRI yield 2) % ) Includes vacancy costs, ongoing maintenance, other property related costs not passed on to tenants 2) as of March 31, 2011 Net Rental Income (NRI) = Net rent less property related costs Net Operating Income (NOI) = Net rent less property related costs, maintenance, marketing, leasing related refurbishment costs (except capitalised maintenance capex) Gross Rental Income (GRI) Yield = Gross rent divided by market value (assumes full occupancy) 10

11 IVG Segments 1Q11 Investment - Real Estate (3) Portfolio structure according to branches # Prop. sqm Occ Market value Gross rent GRI yield Contracted rent (annualised) Net rent NRI NRI yield NOI NOI yield in '000 in '000 in '000 in '000 in '000 in '000 in '000 Berlin % 348,720 23, % 21,391 5,143 4, % 4, % Dusseldorf % 335,150 23, % 19,650 4,341 3, % 3, % Frankfurt % 892,350 58, % 51,524 12,556 11, % 11, % Hamburg ,0% 724,609 48, % 44,142 10,482 8, % 8, % Munich % 1,251,495 76, % 71,568 17,672 15, % 14, % Total Germany 194 1, % 3,552, , % 208,279 50,193 42, % 41, % Brussels % 102,974 7, % 5,296 1,229 1, % 1, % Helsinki % 213,075 25, % 21,463 5,239 3, % 2, % Paris % 375,201 22, % 22,270 4,915 4, % 4, % Other % 27, % 7 0.4% International % 719,060 55, % 49,612 11,006 8, % 7, % Total* 250 2, % 4,271, , % 257,891 61,199 51, % 49, % Net Rental Income (NRI) Yield = Net rent less property related costs divided by market value Net Operating Income (NOI) = Net rent less property related costs, maintenance, marketing, leasing related refurbishment costs (except capitalised maintenance capex) 11

12 IVG Segments 1Q11 Investment - Real Estate (4) EPRA key figures* Investment Property Rental Data Investment Property Valuation Data Gross Estimated Rental Net Rental Passing rent rental value Property Income in Income in Lettable at report- at report-ing value Property Net Initial the period in the period in space ing date date Vacancy rate (gross) valuation yield m m in sqm 000 in m in m in % in m in m in % Berlin % % Dusseldorf % % Frankfurt % % Hamburg % % Munich % 1,268 1, % National , % 3,617 3, % Brussels % % Helsinki % % Paris % % Others % % International % % Total , % 4,355 4, % * rounding differences may occur 12

13 Overview IVG Segments Investment Development (1) IVG s development portfolio Portfolio figures # Developments: 6 TIC 1 ( 000): 1,385,000 Lettable Space (m 2 ): 199,700 Occupancy Rate (%): 57 Frankfurt, THE SQUAIRE Market Value (T ): c785,000 Lettable Space (m 2 ): 143,200 Frankfurt, THE SQUAIRE Parking TIC 1) (T ): c65,000 Parkings: 2,562 Selected development of office properties Strong focus on Green Building developments Strategic property repositioning Risk mitigation by forward purchase / pre-letting Ongoing integration within the platform as supplier for fund products Total investment cost until completion (short-term pipeline) GER 1,143m EU 242m Hungary 3.6% France 10.7% Poland 3.1% 1,385m Germany 82.6% 1) Total investment cost until completion 13

14 Overview IVG Segments Investment Development (2) Pre-letting rate of pipeline 1) Major recent letting contracts* in % Pre-letting rate Q10 2Q10 3Q10 4Q10 1Q11 Name of project Location Name of tenant Lettable area in sqm Lease period Occupancy rate by space THE SQUAIRE IVG AG, Hofmann Cons., Frankfurt (D) Thonet, Euroshop 5, years 66.1% Drukarnia Warsaw (PL)Misc. 1,179 7 years 91.9% Hackesches Quartier Berlin (D) Postbank, VDB years 89,7% Front Office Paris (F) IVG AM years 28.8% RiverPark Budapest (H) MSC, 20:20 Mobile years 31.5% Stefania Park Budapest (H) Lyoness years 89.2% An den Brücken Munich (D) Alpha FM years 92.5% *as of April 30, 2011 Outstanding capex (short-term pipeline) in m Outstanding capex end of 1Q11 end of 2Q11 end of 3Q11 end of 4Q11 1) Short-term pipeline, pre-letting rate reduced because of disposal Berlin, Hackesches Quartier 14

15 Overview IVG Segments Investment Caverns (1) Overview IVG s cavern pipeline Planning Construction Operations Closure Over 130 cavern locations for underground storage 45 caverns in operation and over 90 cavern locations to be developed In-depth expertise for almost 40 years Project planning Purchase of ground and salt mining rights Contracting eg of drilling rigs Site construction and connection to infrastructure Drilling / Leaching Installation of well head Start of rental contract period First filling Maintenance Operation Backfilling with water Sealing Decommissioning of the overground technical facilities and pipelines Established market reputation with extensive network Ongoing integration within the fund platform, i.e. IVG Cavern Fund NORPIPE NGT Seawater pumping station Wilhelmshaven Dornumersiel NWO terminal Wilhelmshaven Emden-Etzel-Pipeline Emden NDO Gas terminal Bunde BP (Plant Lingen) EUROPIPE I + II NWO Etzel NETRA MIDAL Hamburg NETRA Portfolio figures # Caverns in operation: 45 # of Caverns under construction: 26 # of future cavern : 59 Value ( 000): ~1,055,000 Volume ( 000m³)*: ~76,743 NEL Hamburg Existing Caverns 23 Gas Caverns 22 Oil Caverns Cavern portfolio Cavern Pipeline fund caverns pre let caverns option caverns free caverns

16 Overview IVG Segments Investment Caverns (2) Overview cavern pipeline Overview cavern portfolio oil caverns 45 in operation 45 caverns sold & cash received 26 pre let IP * at cost/ NAV adj. 107 gas caverns 7 pre let 2 IP * 11 options 41 building permit 57 future IVG caverns (at cost / NAV adj.) 71 fund caverns 59 IVG caverns building permit options pre let in operation pre let / under construction Accounting of cavern portfolio 10 caverns 60m 88m 219m 57 caverns NAV Adjustment Accounted as at cost 16 caverns 384m 198m 66m 2 caverns Accounted as fair value (IAS 40) 26 fund caverns 59 IVG caverns 532m 483m * IP* = accounted at fair value as Investment Property 16

17 Overview IVG Segments Funds Institutional Funds (1) Snapshot Institutional Funds Portfolio figures # Properties: 540 AuM ( 000): 12,289,000 Space (m 2 ): 4,080,633 Annual Rental Income ( 000): 749,403 Occupancy Rate (%): 90 Split by Region (in %) Other 23.6% Germany 39.0% US 6.4% UK 7.6% Netherland 10.6% France 12.8% Split by Type of Use (in %) IVG Institutional Funds is the leading provider and manager of Immobilien-Spezialfonds in Germany Market leader for institutional investors funds in Germany with market share of ~24% Management of nearly 40 funds with more than 100 investors Focus on core/+ properties and infrastructure (caverns) Other 10.2% Caverns 9.1% Industrial 3.5% AuM (in bn) Retail 16.4% Office 60.8% Recently placed and current fund initiatives 1 Protect Fund 2Q Q11 2 Premium Green Fund 2Q Paris Fund 4Q

18 Overview IVG Segments Funds Institutional Funds (2) Excursus Cavern Fund Main parameters Cavern portfolio Funds vehicle Fund strategy Specialised investment fund ( Spezialfonds ) in line with the German Investment Act Investment in cavern asset from IVG s balance sheet Generation of a stable cash flow from the start Triple A tenants with leases up to 35 years Portfolio located in Etzel (Germany) Contractually fixed purchase price for 70 caverns of 1.7bn, thereof 21 oil caverns and 59 gas caverns 836m for 40 caverns already paid in 2008 thereof 537m equity and 299m debt (LTV 36%) 30 caverns will be purchased by the fund after completion Fund volume Approx. 1.7bn Equity Approx. 910m (thereof 59% paid in 2008) Target return Investors > 8% IRR > 6.5% cash-on-cash-yield 13 institutional investors Participation in amounts of 20m - 100m Closing 4Q08 Role of IVG IVG Caverns (Asset Manager, operation, development) IVG Institutional Funds (IVG IF) as fund manager Co-investment by IVG (5.5%) 18

19 Overview IVG Segments Funds Institutional Funds (3) Recent fund initiatives Premium Green Main parameters Real Estate portfolio Funds vehicle Special fund in line with the German Investment Act Fund strategy Investment in a German asset portfolio for sustainable real estate at favourable entry time Generation of a stable cash flow from the start All real estate will reach at least LEED Silver status Rental space of approx. 81,000 m² (90% of which is office space) 871 parking spaces Pre-letting is 90% (as of 28. February 2011) Tenants with good or very good credit standing in various sectors Average duration of tenancy is 9.5 years Fund volume 300m Equity 165m Target return Sustainability standard Investors Role of IVG 8% IRR 5.5% cash-on-cash-yield At least LEED Silver (or comparable) 5 institutional investors Participation in equal amounts IVG Asset Manager IVG Institutional Funds (IVG IF) as fund manager Co-investment by IVG (20%) 19

20 Overview IVG Segments Funds Private Funds Snapshot Private Funds Portfolio figures # Properties: 29 AuM ( 000): 2,972,000 Space (m 2 ): 508,000 Annual Rental Income ( 000): 143,000 Occupancy Rate (%): 99 Split by Region (in %) Belgium 6.8% Other 0.8% Netherland 7.0% Germany 18.8% Luxemburg 13.4% UK 53.2% Split by Type of Use (in %) Other7% Office 93% IVG Private Funds one of the largest closed- end real estate funds initiator in Germany 12 funds with about 60,000 private investors Established team for almost 15 years Bank-independent provider for fund products Focus on core properties Recently placed and current fund initiatives 1 EuroSelect 20 - North Gate 1Q 2010 AuM (in bn) EuroSelect 21 3Q EuroSelect 22 4Q Q11 20

21 Agenda 1) Overview IVG Group page 4 2) Overview IVG Segments page 9 3) Key Financials 1Q11 page 22 4) Update Financing page 33 5) Outlook 2011/2012 page 38 6) Overview Real Estate & Capital Markets page 41 7) Excursus: IVG impacted by Financial Crisis 2008/2009 page 46 8) Contacts & Financial Calendar page 51 21

22 Key Financials 1Q11 Overview 300 in m Revenues EBIT Net profit 4Q10 1Q11 30 in m in m Q10 1Q11 Revenues EBIT Net profit 300 in m 280 in m 140 in m 1Q10 1Q Q10 Property portfolio NAV / share 1) NAV adj. / share1) 2) Q10 1Q Q11 1Q10 1Q in m 16 in 16 in ,266 4, /12/10 31/03/ /12/10 31/03/ /12/10 31/03/11 Comments Highlights in 1Q11: Positive net profit Positive net profit of 11.1m in 1Q11 after net loss of m in 4Q10 Unrealised in market value of investment property at - 9.9m (significantly improved qoq from m) and of caverns at 7.8m in 1Q11 ( 21.4m in 4Q10) lead to almost balanced result Unrealised in value of material expenses of m, mainly driven by a construction delay at THE SQUAIRE Significant improvement of financial result (from m in 4Q10 to m in 1Q11) due to loan repayments and increased market values of interest rate swaps Income taxes significantly positive due to the subsequent capitalisation of tax loss carried forward Portfolio operating figures stable - positive FFO I Like-for-like rents +0.2% qoq Vacancy rate slightly lower qoq (-20bp) to 10.0% FFO I positive at 6.8m, FFO II negative at - 3.7m NRI yield of 5.3%, NOI yield of 5.1% NAVs and LTV NAV at 7.28 per share, NAV adj. at 9.29 per share LTV (banks definition) stable at c71% 1) As of based on 126.0m shares, as of based on 138.6m shares 2) Incl. DCF value of cavern business 22

23 Key Financials 1Q11 Profit and Loss Account (1) Profit and loss account Q4 10 in m Before in value Unrealised in value Total Before in value Unrealised in value Total Revenues Changes in inventories and other own work capitalized Unrealised in market value of investment property Realised in market value of investment property Other operating income Material expenses Personnel expenses Depreciation and amortisation of intangible assets, property, plant and equipment Expenses from investment property Other operating expenses Gains/losses from participations accounted for using the equity method Income from equity investments EBIT Financial income Financial expenses Financial result Net profit before income taxes Income taxes Consolidated net profit Q

24 Key Financials 1Q11 Profit and Loss Account (2) Comments 1 Revenues increased from 124.1m in 4Q10 to 213.8m in 1Q11 Revenues of 213.8m increased significantly qoq due to the sale of Hackesches Quartier in segment Investment (Development) for 109.0m (which considers yet outstanding capex payments) Changes in inventories from 132.9m in 4Q10 to m in 1Q11 Changes in inventories driven by derecognition of project-/book value in segment Investment (Development) of overall 112.1m (in particular the project sale of Hackesches Quartier with 109m) and material expenses of 72.8m, mainly driven by construction costs for THE SQUAIRE and THE SQUAIRE PARKING in 1Q11 Unrealised in market value of IP 1) decreased from 2.7m in 4Q10 to - 2.0m in 1Q11 Unrealised in market value of IP 1) decreased from m in 4Q10 to - 9.9m in 1Q11 (equivalent to -0.2% in market value of the relevant IP 1) portfolio) Unrealised in market value in segment Investment (Caverns) of 7.8m ( 21.4m in 4Q10) due to first-time fair value accounting of only 1 cavern (4Q10: 2 caverns) Financial result (- 38.2m in 1Q11 after m in 4Q10) significantly improved due to loan repayments and increased market values of interest rate swaps Income taxes significantly positive due to the subsequent capitalisation of tax loss carried forward 1) IP = Investment property 24

25 Key Financials 1Q11 Profit and Loss Account (3) Financial result in m Before in value 4Q10 Unrealised in value Total Before in value 1Q11 Unrealised in value Total Result from currency effects Net interest result Hedging result Changes in market value of financial assets Result from valuation of minorities Other net financial expenses Financial result Net interest result improved from m in 4Q10 to m in 1Q11 driven especially by loan repayments at the end of 4Q10 and in 1Q11 (SynLoan II and project financing) Result positively affected by increased market values of non hedge-accounting swaps due to increased interest rate swap levels 3 4 Share of profits for minority holders Other net financial expenses are mainly financial charges and the proportional allocation of credit structuring fees (in particular SynLoan II and CORE-financing) 25

26 Key Financials 1Q11 Profit and Loss Account (4) in m From operating EBIT to net profit 1Q11 Operating EBIT Unrealised in MV 1) IVG Group Non-cash effects (- 4.1m) Operating Operating EBIT EBIT Real Estate Development Operating EBIT Caverns Operating EBIT Institutional Funds Operating EBIT Private Funds Operating EBIT Corporate Functions/ Consolidation Operating EBIT IVG Group Unrealised in MV 1) investment property Unrealised in value material expenses Unrealised in MV 1) caverns Changes in value financial assets Financial result excl. revaluation effects Income taxes Net profit 1Q11 1) MV = Market value/value 26

27 Key Financials 1Q11 NAV Bridge (1) NAV bridge Based on shareholders equity (as per end of 1Q11) in m in per share (138.6m shares) (1.90) (5.83) (7.14) Assets Liabilities NAV 31/03/2011 (52.01) (2.38) (2.23) (-37.08) (49.78) (0.09) ,209-5,139 6, (32.44) , (-2.89) (0.01) (-3.64) -504 (-1.12) -155 (7.28) 1,008 (2.01) (9.29) 279 1,287 0 Real Estate Development Caverns Institutional Funds Private Funds Group level 2) Total assets Derivative Total financial assets instruments (balance & deferred sheet) tax assets Financial liabilities Hybrid capital / minorities Liabilities included in disposal groups Other group liabilities 1) Derivative financial instruments & deferred tax liabilities NAV Difference NAV adj. Caverns acc. at cost vs. market value 1) Pension provisions; other long term and other short term provisions; other long term and other short term liabilities including accrued interest, payables and other obligations; tax liabilities 2) thereof among others cash and cash equivalents and financial assets 27

28 Key Financials 1Q11 NAV Bridge (2) NAV bridge 1Q11 (per share) in NAV 31/12/2010 Effects 1Q11 NAV 31/03/ months months ) (9.85) ) (2.83) ) (7.02) 2 0 NAV adj. 31/12/2010 Difference Caverns acc. at cost vs. market value 1) NAV 31/12/2010 Unrealised in value Caverns 1Q11 Unrealised in value Real Estate 1Q11 Unrealised in value Development 1Q11 Unrealised in value financial result 1Q11 Net profit before tax and in value 1Q11 Income taxes 1Q11 Capital increase 1Q11 Non-P&L equity effects (valuation) 1Q11 NAV 31/03/2011 Difference Caverns acc. at cost vs. market value 2) NAV adj. 31/03/2011 1) Valuation (DCF) of cavern assets as of December 31, ) Valuation (DCF) of cavern assets as of March 31, ) Adjusted for increased number of shares from capital increase - NAV per share before capital increase in brackets 28

29 Key Financials 1Q11 Funds from Operations 1Q11 in m 4Q10 1Q11 EBIT Development (before in value) B) Elimination of non-recurring result from trading activities (excl. trading activities Development) Realised in market value of investment property (excl. Development) C) Elimination of non-cash effects included in EBIT (excl. development activies) Depreciation and amortisation of intangible assets and property, plant and equipment (excl. Development) Gains/loss from associated companies accounted for using the equity method (excl. Development) Other non-cash effects included in EBIT (excl. Development) and one-off items D) Less regular payouts other stakeholders Net interest result (cash effective part financial result without development and caverns financing) Current income tax (cash tax only) Accrued payouts hybrid holder (excl. Development and Caverns) FFO I - recurring (excl. activities from development and trading) EBIT Group /- Unrealised in value EBIT Group (before unrealised in value) A) Elimination of non-recurring EBIT from development activities +/- +/- + +/- +/- +/- +/- - +/- +/- +/- +/- Add back eliminated result from trading activities Add back eliminated result from development activities Elimination of non-cash effects included in EBIT from development activities Depreciation and amortisation of intangible assets and property, plant and equipment /- Gains/loss from associated companies accounted for using the equity method /- Other non-cash effects included in EBIT and one-off items adjusted earlier Add back eliminated cash effective from development financing (incl. hybrid) FFO II - total (incl. activities from development and trading)

30 Results 1Q11 Detailed Overview segment financials 1Q11 Q1/2011 in m Investment Real Estate Development Caverns Unrealised Before in in value value Unrealised in Unrealised in Institutional Funds Unrealised in Unrealised in Before Before Before Before IVG Before Corporate 2 Total in value 3 value Total in value 4 value Total in value 6 value Total in value 7 value Total Functions 9 in value 11 External revenues Internal revenues Total revenues Net rents from Investment Property Other net rents Income from service charges Income from project disposals Income from construction contracts Income from transactions, concepts and sales Income from fund and property management Other revenues Changes in inventories and other own work capitalised Unrealised in market value of investment property Realised in market value of investment property Other operating income Material expenses Personnel expenses Depreciation and amortisation of intangible assets and property, plant and equipment Expenses from investment property Other operating expenses Gains/loss from associated companies accounted for using the equity method Income from share investments Segment result (EBIT) Funds Private Funds Consolidation Unrealised in value Total Before in value Group Unrealised in value Total Financial result Net profit before tax Income taxes 25.1 Consolidated net profit

31 Results 4Q10 Detailed Overview segment financials 4Q10 Q4/2010 Investment Funds in m Before in value Real Estate Development Caverns Unrealised in value Total Before in value Unrealised in value Total Before in value Unrealised in value Total Institutional Funds Before in value Unrealised in value Total Before in value Private Funds Unrealised in value Total IVG Corporate Functions Before in value Consolidation Unrealised in value Total Before in value Group Unrealised in value Total External revenues Internal revenues Total revenues Net rents from Investment Property Other net rents Income from service charges Income from project disposals Income from construction contracts Income from transactions, concepts and sales Income from fund and property management Other revenues Changes in inventories and other own work capitalised Unrealised in market value of investment property Realised in market value of investment property Other operating income Material expenses Personnel expenses Depreciation and amortisation of intangible assets and property, plant and equipment Expenses from investment property Other operating expenses Gains/loss from associated companies accounted for using the equity method Income from share investments Segment result (EBIT) Financial result Net profit before tax Income taxes 13.7 Consolidated net profit

32 Agenda 1) Overview IVG Group page 4 2) Overview IVG Segments page 9 3) Key Financials 1Q11 page 22 4) Update Financing page 33 5) Outlook 2011/2012 page 38 6) Overview Real Estate & Capital Markets page 41 7) Excursus: IVG impacted by Financial Crisis 2008/2009 page 46 8) Contacts & Financial Calendar page 51 32

33 Financing 1Q11 Debt Composition & Maturity Profile Total debt 1) composition as of March 31, 2011 Maturity profile as of March 31, 2011 in m in m 6,0 5,0 1,34 1,20 5,10 2,5 2,0 2,01 1,75 4,0 3,0 2,0 1,50 0,00 0,59 Thereof bank debt 4,770m 1,5 1,0 0,93 1,0 0,0 0,33 Convertible 0,00 0,15 CP- Bilateral Program credit lines Loans Bridge financing Project Syn. Loan Syn. Loan financing I II Total 0,5 0,0 2) 0,21 0,13 0, ff. Syn. Loan I Syn. Loan II Loans Bilateral credit lines Project financing Convertible Indebtedness as of March 31, 2011 of 5,096m 1), thereof 4,770m bank debt Average interest rate: 4.06% (bank debt, hedging, convertible) Early prolongation of CORE-financing (c 945m volume expiring in 2012) currently under constructive negotiations THE SQUAIRE -financing ( 500m) is scheduled to be migrated into an investment financing in the course of 2011 with a maturity until end of ) Financial liabilities ( 5,140m) other financial liabilities ( 64m) + accruals and netting ( 20m) 33

34 Financing 1Q11 Maturity Profile & LTV Calculation Quarterly maturity profile as of March 31, 2011 Debt maturity and prolongation schedule 2011ff. in Mrd. 1,3 1,0 0,8 0,5 0,3 0,0 in Mrd. 1,3 1,0 0,8 0,5 0,3 0,0 in Mrd. 1,3 1,0 0,8 0,5 0,3 0,0 0,48 0,20 0,25 0,00 1Q11 2Q11 3Q11 4Q11 1,15 0,85 0,01 0,01 1Q12 2Q12 3Q12 4Q12 0,07 0,01 0,02 0,11 1Q13 2Q13 3Q13 4Q13 1 ) in m Total nominal thereof reduction by project sale thereof reduction by property sale thereof reduction by repayment Calculation of Syn. Loan LTV 1) thereof planned prolongations , , , , and thereafter Total 4, ,196 Financial Liabilities Liabilities to banks, Convertible 5.08bn + IFRS5 (disposal group) Liabilities Liabilities to banks associated with non-current assets held for sale 0.00bn Portfolio market value 7.16bn Cash Securities, cash and cash equivalents 0.19bn Carve-out assets 2.77bn _ Carve-out debt Non-recourse financing 1.76bn = 71.5% Syn. Loan II Bilateral credit lines Loans Project financing 1) Banks` definition (max. 75%) as of March 31,

35 Financing 1Q11 Liquidity Liquidity as of Dec. 31, ) Liquidity as of March 31, ) in m 31/12/2010 in m 31/03/2011 Unused non-project-related credit lines 11 Surplus capacity on current accounts 9 Cash reserves 211 Sight deposits and current securities 2 Derivatives with positive market values 4 Total 237 Unused non-project-related credit lines 15 Surplus capacity on current accounts 9 Cash reserves 132 Sight deposits and current securities 2 Derivatives with positive market values 12 Total 170 As of Dec. 31, 2010 undrawn credit lines of c 0.02bn (syndicated loan and current account lines) Available liquidity without project related lines of 237m 2) as of Dec. 31, 2010 As of March 31, 2011 undrawn credit lines of c 0.02bn (syndicated loan and current account lines) Available liquidity without project related lines of 170m 2) as of March 31, ) Without project-related cash and without collateralised cash 2) Difference to the balance sheet cash due to the consolidation effects and project-related cash 35

36 Financing 1Q11 Debt Structure Debt structure Currency profile 1) Interest rate profile 1,2) Collateralisation profile 1) loans 1.5% Fix 1.8% Fix via swap 57.4% Variable 40.8% Land charge 61.4% No collateral on properties 38.6% EUR loans 98.5% Bank debt 4,770m Bank debt 4,770m Bank debt 4,770m EURO as dominating currency with 98.5% share of IVG s liabilities to banks Average interest rate 1) : 3.99% (incl. convertible 4.06%) Variable interest rate position 1) : 40.8% (incl. convertible 38.2%) Bank debt collateralised by land charge ( Grundschulden ) on properties of 2.93bn 1) (61.4%) 1) as of March 31, ) incl. convertible variable interest rate position is 38.2% 36

37 Agenda 1) Overview IVG Group page 4 2) Overview IVG Segments page 9 3) Key Financials 1Q11 page 22 4) Update Financing page 33 5) Outlook 2011/2012 page 38 6) Overview Real Estate & Capital Markets page 41 7) Excursus: IVG impacted by Financial Crisis 2008/2009 page 46 8) Contacts & Financial Calendar page 51 37

38 IVG Group Outlook 2011/2012 (1) Real Estate Focus on asset management activities to further intensify letting efforts with occupancy > 90% Execution of selected property sales of up to 600m GAV o/w c 320m GAV disposals from CORE portfolio planned via Private Funds vehicle Sharpen portfolio profile through selective selling of non-strategic properties ( ) Development Improve pre-letting quota of THE SQUAIRE and achieve full occupancy (95%) by 2012/2013 Further decrease of development pipeline with sales of up to 1bn GAV between Planned disposal of THE SQUAIRE, SQUAIRE Parking and Front Office / Asniére (Paris) project following finalisation and lease-up either via fund vehicle or via trade sale Caverns Sale of 6 caverns in 2011 and 7 caverns in 2012 to the caverns fund with total proceeds of c 380m Fair value accounting of 12 caverns expected in 2011/2012 due to construction progress Conclusion of further rental contracts with positive P&L effects due to Besserungsschein (promote structure) ( ) = achieved = well advanced stage = work in progress ( ) ( ) 38

39 IVG Group Outlook 2011/2012 (2) Institutional Funds Launch and placement of new innovative funds with selective IVG participation (alignment of interests), e.g. IVG PREMIUM GREEN FUND New products (e.g. IVG Paris Fund ) in the pipeline with launch and placement expected in 2011 to meet investors appetite for real estate investements Increase of assets under management and expand customer base ( ) Private Funds Retail investor equity placement volume expectation of up to 200m- 250m p.a. in 2011 and 2012 Private Funds working on building new pipeline with external properties, only c 160m equity volume planned from disposal of IVG CORE portfolio properties Focus on sourcing activities in Germany and BeNeLux ( ) = achieved = well advanced stage = work in progress 39

40 Agenda 1) Overview IVG Group page 4 2) Overview IVG Segments page 9 3) Key Financials 1Q11 page 22 4) Update Financing page 33 5) Outlook 2011/2012 page 38 6) Overview Real Estate & Capital Markets page 41 7) Excursus: IVG impacted by Financial Crisis 2008/2009 page 46 8) Contacts & Financial Calendar page 51 40

41 Overview Real Estate Markets Economic Environment Germany / Europe in % in % Macro-economic key data Germany / Europe e 2012e GDP GER GDP Eurozone Inflatio n GER Inflation Eurozone 1Q10 2Q10 3Q10 4Q10 4Q11e 4Q12e Base Rat e EURO 3 m Euribor 10 yr Govern. Bond Current situation Quarterly GDP growth in European Union slowed to 0.2% in 4Q due to cold winter, but economic sentiment still indicating a further strong recovery in the next months Renewed uncertainty about economic evolution due to high oil price, Japan crisis, Libyan war, downgrading of Portuguese rating Turnaround on European labour market: Employment rose by 0.1% in fourth quarter 2010; slight decrease of unemployment rate to 9.9% Inflation rate in February year-to-year 2.4% due to high energy cost Forecast Economic recovery to continue and to spill over to labour market But still enormous downside risks, e.g. sovereign debt problems, political turmoil in Arabian countries, nuclear disaster in Japan Regional disparities: Germany, Scandinavia and Poland as frontrunners, Southern Europe lagging behind Inflation expected to remain above ECB target of 2% in 2011: Eurozone base rate expected to increase up to 1.7% till end 2011 Source: IVG Research (March 2011) Source: IVG Research (March 2011) 41

42 Overview Real Estate Markets Overview German Real Estate Markets German letting market for office space German investment market in mn sqm Index in bn in % Berlin, Dusseldorf, Frankfurt, Hamburg, Munich Berlin, Dusseldorf, Frankfurt, Hamburg, Munich % e Take-Up Vacant Space Prime Rents (Index) Source: Historic data from various agents, forecast by IVG Research (March 2011) % 15 4% % % e Transaction Volume Ø Prime Yield 10yr. Government Bond Yield Source: Historic data from BNP Paribas RE and other agents, forecast by IVG Research (March 2011) Property clock 4Q10 Germany Transaction volume in Germany Rental growth slowing Rents falling Transaction Volume in Germany 1Q10 4Q10 49% 16% 6% 10% Total Volume: 19.6bn Dusseldorf Source: Jones Lang LaSalle (February 2011) Rental growth accelerating Berlin, Munich Rents bottoming out Frankfurt Hamburg 10% 9% Berlin Dusseldorf Frankfurt Hamburg Munich Other Source: BNP Paribas RE (March 2011) 42

43 Overview Real Estate Markets Overview European Real Estate Markets European letting market for office space European investment market in mn sqm Index in bn in % Amsterdam, Brussels, Central London, Ile-de-France, Madrid Amsterdam, Brussels, Central London, Ile-de-France, Madrid % e % 30 4% % % e Take-Up Vacant Space Prime Rents (Index) Source: Historic data from various agents, forecast by IVG Research (March 2011) Property clock 4Q10 Europe Transaction Volume Ø Prime Yield 10yr. Government Bond Yield Source: Historic data from various agents, forecast by IVG Research (March 2011) Transaction volume in Europe Rental growth slowing Rents falling Transaction Volume in Europe 1Q10 4Q10 27% 38% Total Volume: 107.4bn 4% Central London Source: Jones Lang LaSalle (February 2011) Rental growth accelerating Rents bottoming out Athens Lisbon, Luxembourg, Madrid Stockholm Brussels, Budapest, Edinburgh Amsterdam, Bucharest, Dublin, Rome Helsinki, Paris Prague Kiew, Milan, Warsaw 3% 18% 10% UK France Germany Spain Italy Other Source: Property Market Analysis (March 2011) 43

44 Capital Markets Capital Market Snapshot IVG Share price performance (Jan to date) Shareholder structure 150% 140% 130% 120% Current share price (20/05/11) 5.72 Shares outstanding 138,599,999 Market capitalisation 793m 52 weeks high weeks low 4.65 Goldsmith Capital Partners (Vedder/Schneidewind) (4.94%) Universal-Investment- Gesellschaft (4.64%) Santo Holding AG (Strüngmann) (14.40%) 110% 100% MANN Immobilien- Verwaltung AG (20.00%) 90% 80% Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 Free float (56.02%) Source: Bloomberg (2011) IVG MDAX EPRA Europe Source: IVG (2011) Analyst ratings 1Q09-1Q11 Key data IVG bonds in % Average target price: 6.93 IVG Convertible Bond IVG Hybrid Bond Analyst ratings 40% 30% 30% 52% 60% 26% 30% 21% 10% 41% 39% 37% 38% 36% 32% 14% 14% 13% 17% 14% 18% 8 45% 47% 50% 47% 50% 50% WKN AOLNA8 Coupon 1.75% Maturity Issue volume 400m Issue date Current price (20/05/2011) weeks high weeks low WKN AOJQMH Coupon 8.00% Maturity./. Issue volume 400m Issue date Current price (20/05/2011) weeks high weeks low Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Source: Analyst ratings (2011) Source: Bloomberg (2011) 44

45 Agenda 1) Overview IVG Group page 4 2) Overview IVG Segments page 9 3) Key Financials 1Q11 page 22 4) Update Financing page 33 5) Outlook 2011/2012 page 38 6) Overview Real Estate & Capital Markets page 41 7) Excursus: IVG impacted by Financial Crisis 2008/2009 page 46 8) Contacts & Financial Calendar page 51 45

46 Overview IVG Group Excursus: IVG impacted by Financial Crisis 2008/2009 (1) Yield performance in Europe Direct real estate investments Europe 1) Development NAV-premiums/discounts Prime Market Yield (in %) bn % % 51-46% -65% -65% 51 50% 30% 10% -10% Continental Europe: NAV-premium/discount Ø 8.4% Brussels Helsinki London Paris Milan 20 0 Office Retail Industrial Hotel Others % -50% 10/03 04/04 10/04 04/05 10/05 04/06 10/06 04/07 10/07 04/08 10/08 Yield-Extension across Europe Market participants focus again on real estate specific aspects after record years Source: PMA Significant decrease of transaction volumes with respect to all types of use Office and especially Germany affected Source: Jones Lang LaSalle, DEGI, Research IVG Capital markets reduce excess valuation High NAV-discounts anticipate necessity to devalue real estate portfolios Source: Datastream 1) Allocation in terms of type of use of underlying properties 46

47 Overview IVG Group Excursus: IVG impacted by Financial Crisis 2008/2009 (2) Evolution of IVG in / m in % % 75% IVG share price / AuM % 65% 60% LTV % % AuM (LHS) LTV (incl. hybrid, RHS) IVG share price EPRA Europe Source: IVG, Bloomberg (2010) 47

48 Overview IVG Group Excursus: IVG impacted by Financial Crisis 2008/2009 (3) Overview corporate restructuring Four segments as separate business units Securing liquidity Completion of strategic repositioning with two divisions Redundant management activities Prolongation of credit lines Increase AuM in accordance with strategy High indebtedness Stability/ Liquidity Reduction of development risk Improvement of reporting standards Repositioning Taking advantage of business opportunities Intensified activities with capital market Increasing risk with development exposure Preparation of strategic repositioning Re-establishment of positive (capital market) image Negative image among analysts and investors Start of Operational Excellence and Efficiency - programme Execution of Operational Excellence and Efficiency - programme 48

49 Overview IVG Group Excursus: IVG impacted by Financial Crisis 2008/2009 (4) Change of management board Initiation of restructuring Start of transparency offense Announcement of successful refinancing Acknowledgement of restructuring process by capital market Launch Protect Fonds Announcement of Premium Green Capital increase 72m Completion of asset sales 1.1bn Introduction of new remuneration system Feri Award for Private Funds Annual report 2009 New shareholder MANN Immobilien Positive net result 1Q10 Positive net result 2Q10 Premium Green fully placed Capital increase 87m Positive preliminary figures FY 2010 Positive net result 3Q10 Annual report 2010 Positive net result 1Q11 Analyst ratings 27% 38% 35% 4Q08 IVG share price (in ) 9 IVG convertible bond in % of nominal 100% /08 12/08 01/09 IVG share price Source: Bloomberg (2011) IVG convertible bond 02/09 03/09 04/09 05/09 06/09 07/09 08/09 09/09 10/09 11/09 12/09 01/10 02/10 03/10 04/10 05/10 06/10 07/10 08/10 09/10 10/10 11/10 12/10 01/11 02/11 03/11 04/11 05/11 90% 80% 70% 60% 50% 40% 30% 32% 18% 50% 1Q11 sell hold buy 49