Strategic Financing of a Listed Company

Strategic Financing of a Listed Company Christian Hillermann ADLER Real Estate AG Dr. Sven Janssen Oddo Seydler Bank AG

Contents ADLER Real Estate AG company presentation 1. Company highlights 2. Event driven/ special situation strategy 3. Property portfolio at a glance 4. Privatisation and trading platform 5. Operating performance and financials 6. Outperforming benchmarks Growing the company in a fast and accretive way 2

1. Company highlights Five pillars that define ADLER Real Estate 1. Event driven / special situation strategy: strong capabilities and track record Portfolio acquistions Corporate M&A Restructuring and repositioning 2. Property portfolio at a glance Why A and B locations? Vacancy reduction and rental increase potential Deep discounts to replacement costs 3. Operating platform Asset and Property Management Proprietary IT platform Lean operating structure 4. Operating performance and financials Rental income FFO I and FFO II EPRA NAV developments Capital structure 5. Guidance Gross rental income and earnings (FFO I and FFO II) EPRA NAV/ per share including recent transactions (Ajax portfolio c. 2,700 units and 24.79% stake in conwert Immobilien Invest SE) A true growth opportunity in German residential market 3

2. Event driven / special situation strategy Strong capabilities and track record 4

2.1 Event driven / special situations Strong capabilities and track record Acquisitions/Disposals 2014 2015 Portfolio 2,400 units Portfolio 1,906 units Portfolio 8,500 unis 1 2 3 ESTAVIS AG* 2,100 units 4 Portfolio 4,300 units Successful disposal of legacy Commercial assets 44k sqm 5 6 Westgrund AG Takeover offer c. 21,000** units Portfolio 6,750 units 7 8 Successful disposal of Berlin assets 1,174 units 9 Ajax portfolio c. 2,700 units 10 11 Acquisition of 24.79% of ATX listed conwert Immobilien Invest SE 29,896 units January February March April May June July August September October November December January February March April May June July August September A B C D E F G H Corporate Bond 14/19 Capital Increase Tap 14/19 EUR 50m Corporate Bond EUR 21m Tap 14/19 EUR 50m Corporate Bond EUR 30m Capital increase EUR 80m Corporate Bond 15/20 EUR 300m Capital increase EUR 190m Mandatory Convertible Bond*** (IFRS Equity) EUR 175m Capital markets Note: *Renamed to ACCENTRO Real Estate AG since 5th Jan 2015, **including notarised assets, ***subject to approval at extraordinary shareholder meeting Considerable growth and value creation thanks to a successful strategy 5

2.2 Recent M&A transactions Three examples in value creation Rationale Targets Achievements Stake 92.7% Consolidation H1 14 Volume ( m) 80 Stake 94.9% Consolidation H1 15 Volume ( m) 415 Stake 24.8% At-equity cons. Q3 15* Volume ( m) 285 Note: *estimate 1. Deep discount to NAV 2. Unfocused strategy 3. Strategic privatisation business (ACCENTRO GmbH) 4. Consolidation play Rationale 1. Strong asset base in Berlin and B- locations 2. Significant value upside potential 3. Synergies and rental income 4. Strong capital structure: low leverage (53% LTV) Low WACD (2.7%) Rationale 1. Strong asset base - undervalued 2. Indirect exposure to A-locations 3. Privatisation play (ACCENTRO) 4. Low leverage 1. Portfolio restructuring 2. Portfolio optimisation 3. Strategic repositioning 4. Strengthening privatisation platform Targets 1. Strengthen asset and property Management capabilities 2. Increase rents, lower vacancy 3. Operational and financial synergies, 2015-2018 of c. EUR 20m 4. Full consolidation Targets 1. Support shareholders and management 2. Explore opportunities with ACCENTRO 3. Revaluation of assets 4. Supporting optimisation strategy 1. Sale of commercial portfolio (c. EUR 26m Book Value) 2. Improved quality of asset base destined towards privatisation (H1 14: c. 40m vs. H1 15: 113m) 3. Rebranding to ACCENTRO AG 4. Increased sales (FY 14: 477 vs. H1 15: 1,286 units) Achievements 1. Full consolidation H1 2015 2. IT and operational integration commenced Achievements Proven track record in value enhancing transactions 6 n/a

3. Property portfolio at a glance Improving portfolio specifics through active Asset Management 7

3.1 Property portfolio at a glance Main exposure to Berlin, Lower Saxony, NRW and Saxony Geographical diversification Key portfolio figures Lower Saxony Total units 14,926 North Rhine Westphalia Total units 9,865 Schleswig-Holstein Hesse Total units 637 Total units 485 Rhineland-Palatinate Total units 615 Note: As at 30.06.2015 21.6% 32.8% 1.4% 1.1 % 1.4% 3.4 % Mecklenburg-Western- Pomerania 3.3% Total units Brandenburg 1,508 8.1% Total units 3,685 3.6% Saxony-Anhalt 8.3% Others Total units 266 0.6 % 14.6% Total units 3,795 Thuringia Total units 1,544 Saxony Total units 6,632 Berlin Total units 1,623 c. 50k units No of units 48,484* In-place rent (EUR/sqm p.m.) Considerable upside potential in both rents, vacancy reduction and capital appreciation 4.89 Occupancy rate (%) 88.5% Fair Value/sqm (EUR) 725 R&M and Capex (EUR/sqm, H1 15 p.a.) Gross rental income FY 15 Guidance Gross rental income (run rate) 11.1 EUR 196 m EUR 232 m Note: *As at 30.06.2015, incl. Privatisation portfolio, i.e. 1,700 8

3.2 Asset & Property Management track record Proactive AM and PM and proprietary IT platform Track record (like-for-like) Property Management structure Strategy and key priorities EUR/sqm/p.m. Across all portfolios that have been consolidated for more than 12 months 5,20 5,15 5,10 5,05 Rent increase Reduction in vacancy 12,0% 11,0% 10,0% 5,11 11,1% 1.1m sqm 5,17 Portfolio as at H1 14 Portfolio as at H1 15 10,6% 77% 23% Increasing inhouse Property Management Internal PM External PM Integration of WESTGRUND properties best practice Consolidation of Property Management (PM) across the portfolio Extending proprietary PM and levering existing structures in Lower Saxony (internalising another c. 3,900 units by FY 15) Realisation of purchasing power across portfolios Portfolio as at H1 14 Portfolio as at H1 15 Promising rent increase and vacancy reduction 9

4. Privatisation and trading platform ACCENTRO at a glance 10

Privatisation and trading platform ACCENTRO s performance with growing momentum Investment in a growing industry Increased unit sales at higher gross margins FY 14 H1 15 1.500 1.286 40% 37% Inventory assets increased by c. 30% since FY 14 No. of units 1,299 1,686 IFRS BV (EURm) 75.1 112.9 Note: Book value as at 30 th June 2015 No. of units sold 1.000 500 0 477 FY 14* H1 15 Gross margin 30% 20% 10% 0% 18% FY 14* H1 15 High quality selected portfolios Significant liquidity contribution Berlin accounts for c. 83% of the total book value (IAS 2) City No. of units EUR/sqm % share Berlin 1,174 1,303 83% Leipzig 261 414 7% Dusseldorf 86 1,276 5% Top 3 1,521 1,131 95% Note: as at 30 th June 2015 EUR m FY 14* H1 15 Gross sales proceeds 45.5 102.3 - Carrying amounts** -38.7-74.4 Total operating income 6.8 27.9 - Cost of sales -1.8-1.3 Net sales proceeds 5.0 26.6 - Loan repayment -31.2-45.7 Liquidity contribution 12.5 55.3 Note: *short fiscal year, showing sales activities, **adjusted for realised revaluations, rounded Strategic importance and significant contribution to liquidity 11

5. Operating performance and financials Company results H1 2015 highlights 12

5.1 H1 2015 - at a glance Improving fundamentals across the board Significant increase in total assets Strong yoy gross rental income growth EUR m 3.000 2.500 2.000 1.500 1.000 500 0 1.416 + 85% Sharp development in EPRA NAV 2.614 FY 14 H1 15 EUR m 100 80 60 40 25 20 0 + 223% Significant FFO yoy increases 81 H1 14 H1 15 Not including WESTGRUND AG EUR m 1.000 800 600 400 200 0 + 89% 647 342 FY 14 H1 15 EUR per share 20 15 10 5 0 10,74 + 31% 14,03 FY 14 H1 15 EUR m 40 30 20 10 0 > 40x 6,30 0,96 0,80 H1 14 H1 15 FFO I FFO II 32,90 ADLER remains the fastest growing listed company in Germany 13

5.2 Funds From Operations (FFO) Improved efficiency and size lead to significant FFO I and FFO II in the first half of 2015 EUR 000 H1 2014 H1 2015 EBITDA IFRS 31,987 86,965 Non-recurring and extraordinary items -23,938-37,810 Adjusted EBITDA 8,050 49,155 Interest expense FFO -9,537-26,252 Current income taxes -29-371 Capitalisable maintenance 2,478 2,331 EBIT Trading segment/ Other 0-18,578 FFO I 962 6,285 EBIT Trading segment/ Other 0 18,578 Revaluation (realised) of assets sold 0 8,490 Net income from at-equity valued investment associates -158-440 FFO II 803 32,913 +172% +511% +553% > 40x Note: *Based on the number of shares outstanding at respective reporting date Non-cash and non-recurring consolidation and other effects H1 14 H1 15 FFO I per share* 0.03 0.14 FFO II per share 0.03 0.71 H1 14 H1 15 24,490 40,322 Acquisition related costs 0-1,380 Business optimisation and other nonrecurring items -551-1,132 Non-recurring and extraordinary items 23,938 37,810 H1 14 H1 15 Consolidated interest -13,031-34,852 Transaction related costs 831 3,901 Prepayment penalty and commitment interest 1,844 1,920 Capitalised interest 818 2,778 Interest expense FFO -9,537-26,252 Significant increase in earnings power 14

5.3 Improved credit credentials Reducing the company s weighted average cost of debt Diversified sources of funding with majority fixed Sound credit profile Capital markets debt Fixed FY 2014 H1 2015 Secured debt Floating WACD 4.70% 4.15% (weighted avg. cost of debt) WAM 8 yrs. 7 yrs. (weighted avg. maturity) LTV % 68.7% 68.9% (loan-to-value*) Long dated maturity profile [as at 30.06.2015] Secured debt Note: *LTV excluding convertible bonds; maturity profile showing current as well as non-current financial liabilities Improved credit credentials 15

5.4 Profit and loss statements compared Strong year-on-year growth EUR 000 Q2 2014* Q2 2015 Δ in % H1 2014* H1 2015 Δ in % Gross rental income 12,889 40,677 216% 25,005 80,855 223% Expenses from property lettings -7,442-18,952 155% -14,715-41,611 183% Earnings from property lettings 5,447 21,724 299% 10,290 39,244 281% Income from the sale of properties 583 15,273 2520% 1,267 23,507 1755% Expenses from the sale of properties -246-13,004 5186% -676-20,963 3001% Earnings from the sale of properties 338 2,269 571% 591 2,544 330% Personnel expenses -741-3,177 329% -1,146-5,492 379% Other operating income 193 18,025 9239% 25,478 62,095 144% Other operating expenses -1,677-6,935 314% -3,225-11,426 254% Income from fair value adjustments of 105,295 5,012-95% 105,295 10,581-90% investment properties Depreciation and amortization -6-244 3967% -10-457 4470% Earnings before interest and tax (EBIT) 108,849 36,674-66% 137,273 97,089-29% Financial income 259 491 90% 394 903 129% Financial costs -7,429-20,971 182% -13,425-35,755 166% Net income from at-equity valued investment associates -147-354 141% -158-440 178% Earnings before tax (EBT) 101,532 15,840-84% 124,084 61,797-50% Income taxes -17,284-2,263-87% -18,437-5,316-71% Consolidated net profit 84,248 13,577-84% 105,647 56,481-47% Comment Gross rental income increased by more than three times to EUR 80.86m. Westgrund AG which was consolidated in H1 15 will start contributing in the second half Other operating income is primarily related to the negative goodwill measured in the context of purchase price allocation for the Wilhelmshaven portfolio in an amount of EUR 42.29m. It also inlcudes a gain of EUR 15.95m on the successful sale and deconsolidation of a portfolio in Berlin Reduction in EBIT from EUR 137m to EUR 97m as FV adj. were less affected by lucky buys. Adj. EBITDA grew more than 6 times year-on-year Recent acquisitions/takeover to kick-in in the second half of 2015 16

5.5 Balance sheet Total assets reflecting the company s successful activities since FY 2014 EUR 000 FY 2014 H1 2015 Δ in % Goodwill 27,081 150,942 457% Investment properties 1,170,159 2,119,403 81% Non-current assets held for sale 6,129 7,198 17% Total non-current assets 1,203,649 2,282,860 90% Inventories 89,617 119,633 33% Cash and cash equivalents 33,060 96,327 191% Total current assets 206,681 323,544 57% Total assets 1,416,459 2,613,603 85% Capital stock 31,877 46,075 45% Non-controlling interest 19,810 51,818 162% Equity 311,211 580,364 86% Liabilities for deferred taxes 39,083 81,167 108% Liabilities from convertible bond 33,937 36,580 8% Liabilities from corporate bond 144,782 430,513 197% Financial liabilities to banks 838,897 1,399,646 67% Total liabilities 1,105,248 2,031,271 84% Equity and liabilities 1,416,459 2,613,603 85% Note: *restated; Showing summary of balance sheet; besides investment properties, loans and shares to/in associated companies, total non-current assets also include intangible assets, deferred tax assets and PPE, Financial liabilities includes both current and non-current liabilities to banks Comment The increase in Goodwill is attributable to the first time consolidation of Westgrund AG Investment properties increased as a function of the takeover of Westgrund AG Inventory assets increased to EUR 120m in the first half of 2015 as ACCENTRO increased its asset base for its proprietary trading platform The capital stock increased mainly due to the capital increase in kind in the light of the Westgrund takeover, 14.1m new shares were issued on the 26th of June at EUR 13.465 Increase in liabilities from corporate bonds is mainly attributable to the issuance of EUR 30m and EUR 300m Corporate Bond in Jan. 15 and Apr. 15 respectively Financial liabilities increased due to the high investment activity throughout the first half of 2015 Significant increase in assets 17

6. Outperforming benchmarks Capital markets performance 18

6.1 Capital markets performance Share price development - YTD return + 77.70% Strong momentum in ADLER s share price performance Trading volumes increased significantly 18,00 16,00 14,00 12,00 10,00 EUR 8,00 6,00 4,00 2,00 0,00 Price Target (EUR) 16.00 16.50 17.50 1.14 2.14 3.14 4.14 5.14 6.14 7.14 8.14 9.14 10.14 11.14 12.14 1.15 2.15 3.15 4.15 5.15 6.15 7.15 8.15 Note: Bloomberg, 31.08.2015 Strong momentum in ADLER s share price 19

6.2 ADLER share performance - benchmarked Top performing stock in German resi ADLER has outperformed benchmarks 450 400 ADL GY Equity DWNI GY Equity Rebased (100%) 350 300 250 200 Ann GY Equity TEG GY Equity EPGR Index GYC GY Equity EPRA Index 150 100 50 1.14 2.14 3.14 4.14 5.14 6.14 7.14 8.14 9.14 10.14 11.14 12.14 1.15 2.15 3.15 4.15 5.15 6.15 7.15 8.15 Note: Bloomberg, 31.08.2015 Outperforming benchmarks 20

Contact Management Board Axel Harloff Executive Committee Supervisory Board Dr. Dirk Hoffmann (Chairman) Thomas Katzuba von Urbisch (Vice Chairman) Thilo Schmid Tomas de Vargas Machuca ADLER Real Estate AG Gänsemarkt 50 20354 Hamburg Germany www.adler-ag.com Phone: +49 40 29 81 30-0 Fax: +49 40 29 81 30-99 Email: info@adler-ag.com Investor Relations Hillermann Consulting Poststraße 14-16 20354 Hamburg Germany Phone: +49 40 32 02 79 1-0 Fax: +49 40 32 02 79 1-14 Email: c.hillermann@adler-ag.com

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