Fast and sustainable, profitable growth. Company profile (February 219)
Equity Story Highly profitable player with strong growth prospects on attractive real estate markets Sustainable, profitable business model through in-house handling of the entire value chain (buy, manage and sell) Dynamically growing real estate portfolio, mainly in the commerce asset class, with attractive returns and significant potential for value increase Stability and security through high, recurring rental income from tier-one tenants, solid financing and substantial hidden reserves in the real estate portfolio Highly efficient, slim group/organisational structure; scale effects can be realised to a significant extent Experienced management team with a long-standing track record and excellent network 2
FCR Immobilien AG business model FCR with a clear orientation and great potential for increase in value Clear profile FCR Immobilien AG is a dynamically growing real estate investor operating nationwide. Portfolio holder Developer Seller Robust business model Positioning as a commercial real estate specialist Primary focus on shopping centres and retail parks in secondary locations Covering the entire value-creation chain (acquisition, active asset management, divestment) Rental income from highly profitable portfolio properties and from property sales Efficient corporate structure Experienced management team FCR Immobilien AG FCR Verwaltungs GmbH Limited partnership [KG] shares FCR Service GmbH FCR Innovation GmbH 59 property management companies Registered office in Munich 213: transformation into 3 employees stock corporation [AG] Falk Raudies Founder and CEO Professor Dr Franz-Joseph Busse Chairman of the Supervisory Board Arwed Fischer Deputy Chairman of the Supervisory Board Frank Fleschenberg Supervisory Board 3
FCR Immobilien AG: positioning and strategy Further expansion of dynamic value creation through a consistent growth strategy based on existing success factors FCR value creation FCR growth strategies Markets Asset classes FCR: seller FCR: developer Consistent market penetration (Development of market position) Germany Commerce Earning power FCR: portfolio holder Risk X Robust earnings power with appropriate risk + Germany Selective, profit-oriented market development (development of business model) Austria Italy Spain Commerce Hotels Office Residential Continuous business development based on existing success factors: first-rate know-how - long-term experience - broad network - excellent market access 4
FCR Immobilien AG: Investment highlights in 2nd half of 218 Market value of the FCR portfolios rises above 25 million YTD 7/218 9/218 1/218 11/218 Boosting equity: Successful placement: Full placement of 6.% bond: Largest acquisition in the history of FCR: Key indicators continue to improve: IPO FCR AG: Increase in the market value of the FCR portfolio Successful completion capital increase, equity increases by 1 million German investment fund for bonds of medium-sized enterprises invests in FCR Immobilien AG 6.% bond KFM Barometer: bond 6.% (218/223) rated 3.5 out of 5 stars Issue volume of 25 million is to be used for further growth Purchase of the Schlossgalerie in Rastatt (commercial space approx. 22, m², actual rental income p.a. 2.9 million) NAV per share increases to 18.5 Overall rental income p.a. increases to more than 13 million SMC Research: recommendation to buy, target price 27.3 First Berlin Equity Research: recommendation to buy, target price 25. Successful launch: initial price of FCR share at 18. after the first day and already above NAV Acquisition portfolio with 12 properties (Commercial space approx. 5, m², actual rental income p.a. 2.6 million) Market value of FCR portfolio rises above 25 million YTD. KFM Barometer (update): 6.% bond rated attractive (4 stars) 5
FCR Immobilien AG portfolio Current portfolio strong in returns and potential with first-rate tenants Portfolio structure (annualised based on actual net rental income) Segments: 86.5% retail, 6.7% hotels, 4.9% residential, 1.8% office Countries: Germany (West 63.6%, East 29.7%), international 6.7% Regions: nationwide, e.g. 23.3% in Baden-Württemberg, 2.% in Lower Saxony, 16.5% in Thuringia, 14.3% in North Rhine-Westphalia Sectors: 39.3% food, 22.2% textiles, 12.3% DIY 6
Key portfolio indicators 214-218e Rapid, sustainable growth based on stability and security Number of properties 6 4 2 11 CAGR + 41% 214 218e 12 18 41 44 57 214 215 216 217 Sep 18 218e Actual net rental income (p.a., in million) 2 15 1 5 1,1 CAGR + 86% 214 218e 3,2 5,5 YOY + 39% 217/218e 9,5 YOY + 57% 217/218e 13,2 14,9 214 215 216 217 Sep 18 218e Leasable space (in m²) 3 2 1 2 15 1 5 48 51 83 14 2 25 214 215 216 217 Sep 18 218e 1,2 CAGR + 43% 214 218e Potential net rentals (p.a., in million) CAGR + 9% 214 218e 3,9 6,3 1,9 YOY + 79% 217/218e YOY + 66% 217/218e 15,8 18,1 214 215 216 217 Sep 18 218e Market value of portfolio 253 million Actual net rental return p.a. 9.8% Potential net rental return p.a. 11.8% Since 214, FCR Immobilien AG has acquired 7 properties (CAGR + 65%) sold 19 properties (CAGR +73 %) In 218 FCR Immobilien AG acquired 3 properties (YOY + 43%) sold 9 properties (YOY +8 %) 7
Key financial indicators 214-218e Significant increase in turnover, results and NAV Turnover (in million) 4 3 2 1 3,3 CAGR + 54% 214 218e 12,7 12,1 16,4 18,4 33,5 214 215 216 217 Sep 18 218e EBIT (in million) 1 8 6 4 2 1,1 CAGR + 47% 214 218e 3, 2,3 3,7 YOY + 14% 217/218e YOY + 114% 217/218e 5,1 7,9 214 215 216 217 Sep 18 218e EBITDA (in million) 15 1 5 1,5 3,7 3,1 4,9 6,4 9,9 214 215 216 217 Sep 18 218e EBT (in million) 5 4 3 2 1,8 CAGR + 44% 214 218e CAGR + 34% 214 218e 1,9,8 1,3 YOY + 12% 217/218e YOY + 223% 217/218e 2,6 4,2 214 215 216 217 Sep 18 218e 1 8 6 4 2 NAV (in million) 26,7 CAGR + 77% 216 218e 62,2 84, 89,3 216 217 Sep 18 218e Calculation of NAV (218e): YOY + 44% 217/218e Paid-up registered share capital: 4,219,588 NAV: 89.3 million NAV/share price: 21.16 8
Financing / Accounting Loan-based financing contributes to high profitability; hidden reserves are realised upon sale of property Ratio - market value / debt burden / interest expense (as on 31 December 218, in million) Fair value Book value 16,1 253,6 Hidden reserves of 93.5 Financing strategy: Determined exploitation of opportunities provided by lowinterest environment; exploitation of benefits of leverage effect Risk management: nonrecourse based financing Financing Interest expenses p.a. Bond Banks Total 45,7 11,9 156,6 3,2 Bond (Ø 7.% interest expenses p.a.) 2,2 Banks (Ø 2.% interest expenses p.a.) 5,4 Total (Ø 3.4% interest expenses p.a.) Rental income p.a. 14.9 5 1 15 2 25 3 Preferred financing through local or regional providers Accounting (HGB [German Commercial Code]) Entered into balance sheet at book value, hidden reserves are realised upon sale 9
Capital market FCR shares listed successfully on the Frankfurt stock exchange since 7 November 218 Share master data Shareholder structure ISIN / WKN Ticker symbol Market place Total number of shares DEA1YC913 / A1YC91 FC9 XETRA and Frankfurt, Segment Scale 4,219,588 non-par value registered shares (ordinary shares) Free-float shares 9.22% FAMe Invest & Management GmbH 2.24% Market capitalisation 78.7 million (as on 15 February 219) Registered share capital 4,219,588 7.54% RAT Asset & Trading AG First listing 7/11/218 Share price First share price 18. Designated sponsor Bank M - Representative of the FinTech Group Bank AG Research SMC Research (22 November 218) Recommendation to buy, target price: 27.3 First Berlin Equity Research (12 November 218): recommendation to buy, target price: 25. 1
Capital market Bonds for 18/23 and 16/21 placed for a total of 4 million 6.% bond for 218/223 Fully placed ( 25 million) WKN A2G9G6 ISIN DEA2G9G64 7.1% bond for 216/221 Fully placed ( 15 million) WKN A2BPUC ISIN DEA2BPUC4 8.% bond for 214/219 1.67 million placed WKN A1YC5F ISIN DEA1YC5F Issue volume: up to 25 million Dividend coupon: 6.% p.a. Interest payment: semi-annually Maturity: 2/2/223 Collateral: registered land debt Listing: Frankfurt stock exchange Issue volume: up to 15 million Dividend coupon: 7.1% p.a. Interest payment: annually Maturity: 18/1/221 Collateral: registered land debt Listing: Frankfurt stock exchange Issue volume: up to 1 million Dividend coupon: 8.% p.a., plus. 3.% p.a. fixed interest bonus at end of term Interest payment: annually Maturity: 1/5/219 Collateral: registered land debt Listing: Frankfurt stock exchange 5/218: Scope Ratings rates FCR Immobilien AG as B+; the secured corporate bonds are rated as BB-; outlook stable 11
FCR Immobilien AG Contact Falk Raudies Executive Board FCR Immobilien AG, Bavariaring 24, 8336 Munich Telephone: +49 89 413 2496 1 Email: f.raudies@fcr-immobilien.de www.fcr-immobilien.de Disclaimer: this document is not a prospectus for the purposes of German capital market laws nor an offer requiring a prospectus or a public offering. It does not contain any express and/or implied warranties, promises or commitments on the part of FCR Immobilien AG or the companies associated with FCR Immobilien AG. All assumptions and calculations are based on careful research. Notwithstanding all due care, deviations from the stated assumptions may occur. We do not assume any liability for the realisation of the yield and liquidity projections, for future changes of actual, economic, legal, tax or other general conditions nor for the accuracy and completeness of the information provided in this document. 12