deutsche industrie reit-ag (dir) · proforma portfolio ytd* key figures q1 2018/2019 land bank...

Deutsche Industrie REIT-AG (DIR)Q1 2018/2019 Financial Results

14 February 2019

Content

▪ 2018/2019 Highlights

▪ Portfolio

▪ Recent Acquisitions

▪ Financing

▪ Financial Results Q1 2018/2019

▪ DIR Shares

▪ Appendix I: Strategy & Business Model, Management

▪ Appendix II: Properties

2

2018/2019 Highlights

Highlights Q1 2018/2019

Key figures

4

Properties

44

Portfolio

Value

314.3 m€

Rental

Space

1.01m sqm

Annualised

Rent

29.6 m€

FFO

2.5 m€

LTV

40.2%

EPRA NAV

5.45 € per

share

Rental

Income

4.4 m€

Proforma

Portfolio YTD*

Key Figures

Q1 2018/2019

Land Bank

1.94m sqm

*based on proforma portfolio as of 14/02/2019 = including notarised properties YTD with transfer of ownership after 31/12/2018

2018/2019

FFO-Guidance

12-14 m€

Portfolio

Portfolio as of 31/12/2018

Acquired properties, with transfer after 31/12/2018

Acquired properties, no transfer yet

PortfolioRegional allocation

4

3

1

7

5

2

8

9

10

1314

15

12

16

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18

19

20

x

x

21

All figures based on proforma portfolio as of 14/02/2019 = including notarised properties with transfer of ownership after 31/12/2018 6

x

22

38

Federal State Properties Rental space Annualised rent % of rent

Northrhine-Westphalia 16 231,812 8,077 TEUR 27.3%

Lower Saxony 5 210,677 5,932 TEUR 20.1%

Bavaria 4 85,550 3,474 TEUR 11.8%

Mecklenburg Western Pomerania 7 148,016 2,944 TEUR 10.0%

Baden-Württemberg 1 46,349 2,559 TEUR 8.7%

Berlin 2 17,443 1,591 TEUR 5.4%

Thuringia 3 49,275 1,459 TEUR 4.9%

Brandenburg 2 37,448 1,112 TEUR 3.8%

Rhineland Palatinate 1 127,517 1,000 TEUR 3.4%

Saarland 1 44,084 948 TEUR 3.2%

Bremen 1 9,903 411 TEUR 1.4%

Saxony-Anhalt 1 1,500 42 TEUR 0.1%

Total 44 1,009,575 29,551 TEUR 100.0%

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39

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42 43

44

6 25 29

11

# Location Category Rental space Annualised rent IPR commercial1 WALT2 Occupancy Fair value Yield Transfer

Neubrandenburg Production & logistics 55,907 sqm 745 k€ 1.70 €/sqm 7.2 Years 99% 5,100 k€ 14.6% 01/01/2015

Stralsund Production & logistics 3,235 sqm 36 k€ 2.34 €/sqm 2.3 Years 28% 553 k€ 6.4% 01/07/2016

Güstrow Production & logistics 6,130 sqm 90 k€ 1.22 €/sqm 12.3 Years 100% 690 k€ 13.0% 22/03/2016

Bad Salzdetfurth Industrial park 51,343 sqm 1,559 k€ 3.34 €/sqm 1.9 Years 77% 11,100 k€ 14.0% 01/01/2017

Löhne Logistics 47,518 sqm 1,949 k€ 3.42 €/sqm 3.0 Years 100% 18,200 k€ 10.7% 01/05/2017

Schortens Industrial park 95,378 sqm 3,343 k€ 4.93 €/sqm 4.1 Years 58% 38,100 k€ 8.8% 30/11/2017

Rostock Logistics 39,353 sqm 1,029 k€ 2.43 €/sqm 4.2 Years 91% 9,900 k€ 10.4% 06/10/2017

Bornheim Logistics 9,057 sqm 329 k€ 3.13 €/sqm 2.0 Years 95% 3,900 k€ 8.4% 01/10/2017

Drei Gleichen Logistics 24,004 sqm 600 k€ 2.08 €/sqm 2.5 Years 100% 3,600 k€ 16.7% 07/03/2018

Wuppertal Industrial park 10,010 sqm 558 k€ 4.78 €/sqm 1.8 Years 96% 6,250 k€ 8.9% 01/05/2018

Remscheid Industrial park 26,806 sqm 914 k€ 3.18 €/sqm 1.1 Years 94% 9,300 k€ 9.8% 01/05/2018

Neustadt-Glewe Production & logistics 12,050 sqm 155 k€ 1.83 €/sqm 5.0 Years 63% 2,100 k€ 7.4% 21/02/2018

Dortmund Industrial park 24,831 sqm 718 k€ 3.34 €/sqm 4.4 Years 82% 8,600 k€ 8.4% 01/06/2018

Bochum Industrial park 3,522 sqm 176 k€ 4.38 €/sqm 7.0 Years 100% 2,400 k€ 7.3% 01/06/2018

PortfolioProperties as of 31 December 2018

1 without parking or other units 2 based on contracts with fixed expiration

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PortfolioProperties as of 31 December 2018

1 without parking or other units 2 based on contracts with fixed expiration 3 plus additional income from technical infrastructure of c. 80 k€ p.a. 8

# Location Category Rental space Annualised rent IPR commercial1 WALT2 Occupancy Fair value Yield Transfer

Witten Industrial park 11,139 sqm 345 k€ 3.20 €/sqm 4.1 Years 100% 3,500 k€ 9.9% 01/06/2018

Ronnenberg Production & logistics 30,099 sqm 854 k€ 2.50 €/sqm 3.0 Years 93% 9,700 k€ 8.8% 01/08/2018

Elchingen Production & logistics 7,690 sqm 161 k€ 4.12 €/sqm 10.1 Years 100% 1,950 k€ 8.3% 28/06/2018

Lichtenfels Production & logistics 28,404 sqm 854 k€ 4.35 €/sqm 10.1 Years 100% 9,690 k€ 8.8% 28/06/2018

Meschede Industrial park 6,563 sqm 119 k€ 2.35 €/sqm 1.0 Years 64% 1,900 k€ 6.3% 01/06/2018

Hattingen Industrial park 2,506 sqm 110 k€ 3.64 €/sqm 3.0 Years 100% 1,160 k€ 9.5% 01/08/2018

Meerbusch Logistics 13,380 sqm 660 k€ 4.11 €/sqm 1.0 Years 100% 6,540 k€ 10.1% 01/09/2018

Schleiz Production & logistics 5,929 sqm 228 k€ 3.20 €/sqm 6.7 Years 100% 2,600 k€ 8.8% 04/10/2018

Wildau Logistics 16,498 sqm 967 k€3 5.08 €/sqm 2.4 Years 98% 12,730 k€ 7.6% 01/09/2018

Bremen Production & logistics 9,903 sqm 411 k€ 3.46 €/sqm 5.0 Years 100% 3,670 k€ 11.2% 01/10/2018

Schortens Logistics 29,897 sqm 143 k€ 1.11 €/sqm 2.0 Years 36% 2,000 k€ 7.1% 01/10/2018

Wismar Production & logistics 11,873 sqm 312 k€ 2.19 €/sqm 4.3 Years 100% 3,400 k€ 9.2% 01/10/2018

Simmern Production & logistics 127,517 sqm 1,000 k€ 4.12 €/sqm 8.5 Years 100% 12,500 k€ 8.0% 01/11/2018

Solingen Logistics 25,537 sqm 1,013 k€ 3.41 €/sqm 1.5 Years 97% 10,500 k€ 9.6% 15/12/2018

Schortens Production & logistics 3,960 sqm 34 k€ 2.01 €/sqm 0.0 Years 37% 550 k€ 6.2% 21/12/2018

Total as of 31 December 2018 740,040 sqm 19,413 k€ 3.26 €/sqm 4.1 Years 84% 202,183 k€ 9.6%

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PortfolioAcquired properties

1 without parking or other units2 based on contracts with fixed expiration3 forward deal with lease guarantee, rental income from 11/2020 9

# Location Category Rental space Annualised rent IPR commercial WALT OccupancyPurchase

priceYield Transfer

Fehrbellin Logistics 20,950 sqm 145 k€ 28.00 €/sqm 3.8 Years 100% 1,200 k€ 12.1% 01/02/2019

Schwerin Industrial park 19,467 sqm 578 k€ 2.48 €/sqm 3.0 Years 100% 5,450 k€ 10.6% 01/01/2019

Berlin Production & logistics 8,079 sqm 221 k€ 2.53 €/sqm 4.0 Years 89% 5,128 k€ 4.3% 01/01/2019

Münster Production & logistics 2,889 sqm 132 k€ 3.81 €/sqm 5.0 Years 100% 1,538 k€ 8.6% 01/01/2019

Regensburg Production & logistics 19,189 sqm 667 k€ 2.82 €/sqm 5.0 Years 100% 6,154 k€ 10.8% 01/01/2019

Wolfratshausen Production & logistics 30,267 sqm 1,792 k€ 4.93 €/sqm 5.4 Years 100% 18,154 k€ 9.9% 01/01/2019

Dinslaken Production & logistics 3,596 sqm 0 k€ 0.00 €/sqm 0.0 Years 0% 1,500 k€ 0.0% 01/01/2019

Bad Waldsee Logistics 46,349 sqm 2,559 k€ 4.60 €/sqm 10.0 Years 100% 28,150 k€ 9.1% n/a

Zella-Mehlis Production & logistics 19,342 sqm 632 k€ 2.65 €/sqm 8.3 Years 100% 6,900 k€ 9.2% n/a

Berlin Logistics 9,364 sqm 1,371 k€ 13.23 €/sqm 6.2 Years 92% 16,576 k€ 8.3% n/a

Duisburg Production & logistics 16,221 sqm 500 k€ 2.75 €/sqm 10.1 Years 100% 5,547 k€ 9.0% 01/02/2019

Halberstadt Production & logistics 1,500 sqm 42 k€ 2.33 €/sqm 9.0 Years 100% 399 k€ 10.5% n/a

Remscheid Production & logistics 16,245 sqm 318 k€ 1.63 €/sqm 6.0 Years 100% 1,400 k€ 22.7% n/a

Remscheid Production & logistics 11,993 sqm 234 k€ 1.63 €/sqm 6.0 Years 100% 3,400 k€ 6.9% n/a

Freisen Production & logistics 44,084 sqm 948 k€ 1.79 €/sqm 6.0 Years 100% 10,600 k€ 8.9% n/a

Total - transfer after 31 December 2018 269,535 sqm 10,138 k€ 3.45 €/sqm 7.1 Years 98% 112,097 k€ 9.0%

Proforma portfolio ytd 1,009,575 sqm 29,551 k€ 3.32 €/sqm 5.2 Years 88% 314,280 k€ 9.3%

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44

1,495 k€

5,197 k€

3,155 k€

2,457 k€

1,063 k€

7,935 k€

5,502 k€

2,746 k€

up to 1 year up to 2 years up to 3 years up to 4 years up to 5 years 5 to 10 years >10 years no fixedexpiration

PortfolioSolvent major tenants – adequate WALT

▪ Annualised rents split by remaining lease duration

10

Tenant Sector % of rent

Aenova / Haupt Pharma Pharmaceutical Industry 9.4%

Versandhaus Walz GmbH Online/Mail order seller 8.7%

DST Defence Service Tracks GmbH Defence Industry 5.1%

Otto GmbH & Co. KG Logistics 4.9%

Bundesanstalt für Immobilienaufgaben German Armed Forces / Customs 3.9%

CompAir DLT – ZNL d. Gardner

Denver Dt.Compressed air systems

3.4%

Veenendaal Schaumstoffwerk GmbH Foam processing 2.9%

Zwilling J A Cuttlery 2.9%

Laverana GmbH & Co. KG Natural cosmetics 2.8%

Nordex Energy GmbH Wind power plants 2.7%

Top Ten Tenants 46.7%

Top Twenty Tenants 62.9%

WALT: 5.2 Years

All figures based on proforma portfolio as of 14/02/2019 = including notarised properties with transfer of ownership after 31/12/2018

Storage27%

Production27%

Logistics22%

Office21%

Σ Other3%

Types of use by annualised rent

Storage18%

Production26%

Logistics24%Office

11%

Σ Other21%

Types of use by rental space

PortfolioWell diversified mix of uses and sectors

11All figures based on proforma portfolio as of 14/02/2019 = including notarised properties with transfer of ownership after 30/09/2018

What‘s the type

of the property

1 commercial = without parking or other units

Type Properties Rental space IPR p. sqm1 Vacancy WALT Annualised rent % of rent

Logistics 11 281,908 sqm 3.78 € 9.7% 5.0 10,765 k€ 36.4%

Production & logistics 23 476,103 sqm 2.72 € 4.6% 6.6 10,365 k€ 35.1%

Industrial park 10 251,564 sqm 3.77 € 24.8% 3.3 8,421 k€ 28.5%

Total 44 1,009,575 sqm 3.32 € 12.0% 5.2 29,551 k€ 100.0%

How is the

single unit used

Industrial sector % of rent

Transport / logistics services 10.9%

Pharmaceutical industry 9.5%

Online/Mail order seller 8.8%

Public Authorities 6.6%

Metalworking 5.2%

Defense Industry 5.1%

Industrial/specialist traders, wholesale 5.0%

Plastics Processing 4.8%

Foods 4.7%

Compressed air systems 3.4%

Top Ten 64.0%

What’s the

business of the

tenant

PortfolioValuation potential - share price trades at attractive ~7% yield

12

▪ NAV impact derived from multiple increases (c.p.) leads to upside potential of DIR-shares

▪ Valuation appreciation is expected to be anticipated by capital markets

▪ Compared to competitors DIRs portfolio valuation is conservative at 9.3% yield which implies hidden reserves

Current trading

level of DIR

shares

Annualised total

portfolio rent (mEUR)

Valuation

multiple Yield

Portfolio value

(mEUR)Net LTV

Net debt

outstanding

NAV

(mEUR)

Number of shares

(million)

Hypothetical NAV per

share (EUR)

Current portfolio as of 31.12.2018 19,4 10,7 9,4% 206,6 40% 85,8 122,6 22,50 5,45

Assumptions (pro forma portfolio as of

14/02/2019

29,6 11,5 8,7% 340,4 50% 170,2 170,2 22,50 7,56

29,6 12,0 8,3% 355,2 48% 170,2 185,0 22,50 8,22

29,6 12,5 8,0% 370,0 46% 170,2 199,8 22,50 8,88

29,6 13,0 7,7% 384,8 44% 170,2 214,6 22,50 9,54

29,6 13,5 7,4% 399,6 43% 170,2 229,4 22,50 10,20

29,6 14,0 7,1% 414,4 41% 170,2 244,2 22,50 10,85

29,6 14,5 6,9% 429,2 40% 170,2 259,0 22,50 11,51

29,6 15,0 6,7% 444,0 38% 170,2 273,8 22,50 12,17

29,6 15,5 6,5% 458,8 37% 170,2 288,6 22,50 12,83

29,6 16,0 6,3% 473,6 36% 170,2 303,4 22,50 13,48

29,6 16,5 6,1% 488,4 35% 170,2 318,2 22,50 14,14

29,6 17,0 5,9% 503,2 34% 170,2 333,0 22,50 14,80

29,6 17,5 5,7% 518,0 33% 170,2 347,8 22,50 15,46

29,6 18,0 5,6% 532,8 32% 170,2 362,6 22,50 16,12

29,6 18,5 5,4% 547,6 31% 170,2 377,4 22,50 16,77

29,6 19,0 5,3% 562,4 30% 170,2 392,2 22,50 17,43

29,6 19,5 5,1% 577,2 29% 170,2 407,0 22,50 18,09

29,6 20,0 5,0% 592,0 29% 170,2 421,8 22,50 18,75

Acquisitions

AcquisitionsSigned in Q1 2018/2019 – Berlin, Duisburg, Halberstadt

14

Berlin Beusselstraße 44 N-Q

Acquired 19/12/2018

Type Logistics

Rental space 9,364 sqm

Annualised rent 1,371 k€

WALT 6.2 years

Vacancy 7.8%

Purchase price 16,576 k€

Net initial yield 8.3%

Sector(s) Frozen goods logistics

Duisburg Eisenbahnstraße 70

Acquired 19/12/2018

Type Production & logistics


Annualised rent 500 k€

WALT 10.1 years

Vacancy 0.0%



Sector(s) Custom-made sunshades

Halberstadt Am Sülzegraben 17

Acquired 19/12/2018




WALT 9.0 years

Vacancy 0.0%

Purchase price 399 k€


Sector(s) Surface coatings

AcquisitionsSigned in Q2 2018/2019 – Remscheid, Freisen

15

Remscheid Rosentalstraße 22

Acquired 04/02/2019




WALT 6.0 years

Vacancy 0.0%



Sector(s) Defense Industry

Remscheid Vieringhausen 118

Acquired 04/02/2019




WALT 6.0 years

Vacancy 0.0%




Freisen Industriegelände

Acquired 04/02/2019




WALT 6.0 years

Vacancy 0.0%




Financing

Financial structureStarting the refinancing process

17

Current

financing

portfolio

# of

encumbered

assets

FV of

encumbered

assets

Nominal

Debt

Ø

Interest

Rate

Interest

fixation

in years

Maturity

in years

Bank loans 7 38.1 m€ 20.4 m€ 2.40% 6.7 15.5

Secured bond 8 99.2 m€ 89.9 m€ 4.00% 4.0 4.0

Total 15 137.4 m€ 110.3 m€ 3.70% 4.5 6.1

Unencumbered

assets29 176.9 m€ Potential financing volume 88-106 m€

3% 2%

7%

7%

81%

SparkasseNeubrandenburg-Demmin

VR Bank eG

Sparkasse Unna/Kamen

Berliner Sparkasse

Secured Bond▪ Contract with Berliner Sparkasse 10/2018 → 7.5 m€

▪ Further negotiations with several banks for the unencumbered

assets

Financial Results

Q1 2018/2019

Financial Results Q1 2018/2019Condensed IFRS balance sheet

k€ 31/12/2018 30/09/2018 k€ 31/12/2018 30/09/2018

Assets Equity and liabilities

Investment properties 206,579.4 168,242.2 Issued share capital 22,500.1 18,000.0

Other non-current assets 7,768.0 12,113.5 Capital reserve 76,033.5 31,976.8

Total non-current assets 214,347.4 180,355.7 Other reserves 50.0 50.0

Other current assets 25,026.3 3,143.2 Retained earnings 24,007.8 21,784.2

Cash position 2,161.2 117.1 Total equity 122,591.4 71,811.0

Total current assets 27,187.6 3,260.3

Bank liabilities 17,900.3 11,042.5

Liabilities from corporate bonds 90,597.8 89,686.2

Other liabilities 1,488.7 1,302.9

Total non-current liabilities 109,986.8 102,031.6

Bank liabilities 1,254.6 870.8

Other financial liabilities 73.7 2,744.4

Other current liabilities 7,628.6 6,158.2

Total current liabilities 8,956.9 9,773.4

Total assets 241,535.0 183,616.0 Total equity and liabilities 241,535.0 183,616.0

Pro forma portfolio of

€ 314 million

including latest

notarised acquisitions

19

Capital increase in 12/2018

from 18.0m to 22.5m shares

at 11.00 per share

New loan nominal 7.5 m€

Includes 13 m€

receivables out of

capital increase paid

in 01/2019

and 8 m€ short term

lending

Financial Results Q1 2018/2019Condensed IFRS income statement

k€ 01/10/2018 - 31/12/2018 01/10/2017 - 31/12/2017

Rental income 4,402.4 1,772.3

Income from operating and ancillary costs 1,106.7

Operating expenses -1,680.9 -649.2

Net rental income 3,828.2 1,123.1

Valuation result 0.0 1,636.8

Other income 262.2 57.2

Personnel expenses -160.2 -29.8

Depreciation of assets -24.6 -0.8

Impairment of receivables -90.9 0.0

Other operating expenses -340.9 -316.6

EBIT 3,473.8 2,469.8

Interest income 8.4 854.5

Interest expenses -1,280.9 -682.6

EBT 2,201.2 2,641.7

Income taxes 0.0 1,407.4

Other taxes 22.4 0.0

Total period income 2,223.6 4,049.1

No valuation in Q1-2018/2019,

Regular valuation only once a year

Income tax gains due to

reimbursement of deferred

taxes after obtaining REIT

status

20

Mainly income from insurance

compansations

Reporting change due to IFRS 15

from FY 2018/2019

Financial Results Q1 2018/2019FFO, NAV and LTV reconciliation

k€01/10/2018 -

31/12/2018

01/10/2017 -

31/12/2017

Total period income 2,223.6 4,049.1

+/- Income taxes 0.0 -1,407.4

+ Depreciation of assets 24.6 0.8

+/- Gain/loss from fair value

measurement of investment

properties

0.0 -1,636.8

Other non-current / non-cash

expenses/income281.4 114.4

FFO 2,529.6 1,120.2

- Capex -1,826.9 0.0

aFFO 702.7 1,120.2

FFO per share (€)1 0.13 0.12

aFFO per share (€)1 0.04 0.12

k€ 31/12/2018 30/09/2018

Total equity 122,591.4 71,811.0

Adjustments 0.0 0.0

EPRA NAV 122,591.4 71,811.0

Number of shares 22,500,072 18,000,056

NAV per share (€)2

5.45 3.99

EPRA NAV:FFO/aFFO:

k€ 31/12/2018 30/09/2018

Total financial liabilities 109,826.4 104,343.9

Cash / Other current assets -10,496.4 -261.8

Receivables out of capital increase3

-13,006.0 0.0

Trust Accounts (Property management)4

-518.5 -

Net debt 85,805.5 104,082.1

Investment properties

incl. advanced payments213,454.6 179,438.3

Net LTV 40.2% 58.0%

LTV:

2 based on 22.5 million current shares

21

1 based on 18.9 million average shares for the period

3 paid in January 20194 Inclusion from FY 2018/2019

Financial Results Q1 2018/2019FFO-Guidance for the Fiscal Year 2018/2019

▪ FFO guidance is mainly driven by prospective acquisitions

▪ DIR plans to invest between 150 and 180 mEUR in the FY 2018/2019

▪ Based on current projections DIR expects FFO between 12 and 14 mEUR for the Fiscal Year 2018/2019

▪ FFO run rate between 17 and 19 mEUR by the end of FY 2018/2019

17

DIR Shares

Remaining free float*26.0%

Management1.0%

ALPHA 4 S.A., SICAV-SIF*

4.3%

Parson GmbH5.4%

VBL9.8%

TIVEN GmbH2

2.0%

Gert Purkert6.7%

Olive Tree Invest GmbH1

1.5%

Lotus AG7.9%

Obotritia Delta Invest GmbH3.1%

BabelsbergerBeteiligungs GmbH

5.4%

Försterweg Beteiligungs GmbH5.8%

Obotritia Beta Invest GmbH

6.7%

Obotritia Alpha Invest GmbH

6.7%

Obotritia Capital KGaA

7.7%

DIR SharesBasic data & shareholder structure

Shareholder structure:

Basic data

ISIN DE000A2G9LL1

WKN A2G9LL

Ticker Symbol JB7

Number of shares 22,500,072

Nominal capital 22,500,072.00 €

Share class Bearer shares

Stock exchangesBerlin (Regulated Market)

Frankfurt, XETRA (Prime Standard)

Designated Sponsor Oddo Seydler Bank AG

Listing 7 December 2017

24

1 attributable to Lotus AG2 attributable to Gert Purkert

*Free float according to definition of Deutsche Börse: 30.7%

Obotritia Capital

35.4%

Free Float*

64.6%

VWAP9.80 €

ADTV25 k€

k€

20 k€

40 k€

60 k€

80 k€

100 k€

120 k€

140 k€

160 k€

180 k€

200 k€

220 k€

240 k€

260 k€

280 k€

300 k€

320 k€

340 k€

360 k€

380 k€

400 k€

420 k€

440 k€

460 k€

480 k€

5 €

6 €

7 €

8 €

9 €

10 €

11 €

12 €

13 €

14 €

DIR SharesShare performance & coverage

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L

H

Coverage

Bank Date Target price

Baader 17/09/2018 12.00 €

ODDO BHF 11/07/2018 12.20 €

2

Market Cap as of 12/02/2019: ~ 253 m€

1

Event Date Price

52 weeks low 13/02/2018 6,78 €

Capital increase 1.5m shares 23/04/2018 7.75 €



52 weeks high 05/12/2018 13.41 €

1

2

L

H

3

3

Financial calendar & IR contactWe keep you informed

IR contact:

René Bergmann (CFO)

August-Bebel-Str. 68

D-14482 Potsdam

E-Mail: [email protected]

Tel: +49 (0) 331 / 740 076 535

Fax: +49 (0) 331 / 740 076 520

26

Financial calendar

20/02/2019 ODDO BHF German Conference, Frankfurt am Main

22/03/2019 Annual General Meeting, Berlin

28/03/2019 Commerzbank Real Estate Forum, London

29/04/2019 Capital Markets Day, Dusseldorf

15/05/2019 H1 2018/2019 Financial report

15/08/2019 9M 2018/2019 Quarterly statement

19/12/2019 Annual financial report 2018/2019

mailto:[email protected]

Disclaimer

The material in this presentation has been prepared by Deutsche Industrie REIT-AG (Deutsche Industrie) and is general background information about Deutsche Industrie’s

activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including

forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities

or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information

you should consider the appropriateness of the information having regard to these matters. Any relevant offer document and in particular, you should seek independent

financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial

or political developments and, in international transactions, currency risk.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Deutsche Industrie’s

businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are

cautioned not to place undue reliance on these forward looking statements. Deutsche Industrie does not undertake any obligation to publicly release the result of any revisions

to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in

the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty

and contingencies outside Deutsche Industrie’s control. Past performance is not a reliable indication of future performance.

Unless otherwise specified all information are for the financial quarter ended 31 December 2018.

27

Appendix I: Strategy

Business Model Management

Strategy & Business ModelCombining cash flow properties with lean admin structure and REIT

▪ Focus on light industrial properties

(business parks, logistic centers, production facilities etc.)

▪ Well established properties with good infrastructural

connections and regional relevancy

▪ Occupying a niche which is situated below the investment

criteria of institutional investors and above the requests of

private investors

▪ Lean company structure and low administrative expenses

▪ Valuation potential due to low purchase prices, vacancy

reduction, extension of rental contracts

▪ Further growth of the portfolio mitigates single-asset risks and

stabilises the whole portfolio leading to more diversity

▪ REIT combines our asset strategy with flat admin structures,

tax exemption on company level and provides attractive

dividends for shareholders

Strong cash flow generating portfolio

Stable and efficient financial structure

Lean company structureAdvantages from REIT

structure

Value creation by active asset management

Attractive and stable dividends

+

+

++

=

29

Strategy & Business ModelReal estate investment company focussed on light industrial

▪ DIR owns a huge land bank of 1.66 million sqm.

▪ Light Industrial is the lowest possible type of

development for land

▪ Buildings are usually flat

▪ Land utilisation is only 50%

▪ Construction of taller buildings and increased utilization

would lead to higher density

▪ New construction with upgrade in use for instance office

or residential possible

30

Increasing market rents

Shrinking product supply

No significant new

construction due to current low rent level

Restrictive approval

practice for industrial areas

Conversion into more

valuable types of uses

(residential, office etc.)

Growing demand

Strong economic

fundamentals in Germany

Need for more storage and

logistics spaces due to

booming online shopping

Rent development potentialLand development potential

Strong continuous growth with acquistion at high yields around 10%

Increasing land value

Built up a light industrial real estate platform

with multi-dimensional value enhancing potential

where the whole is worth more than the individual parts

Strategy & Business ModelValue add approach

Tenant network

With the expansion of

the portfolio also our

network of potential

tenants grows which

can be advantageous

Tenant

relationship

We want to be a

reliable and long-term

partner and are in

continuous

discussions to

understand tenants

needs with the aim to

generate win-wins

Risk/Chance

analysis before

purchase

We try to get a vision

of the asset, location

and useful future

uses based on

current market

demand

Creativity and

flexibility

We try to think

unconventionally and

to find new concepts

to recover a property

Pro-active asset

management

Our team consists of

experienced and

motivated full-time

asset managers

31

ManagementExperienced and committed management team

Rolf Elgeti (CEO)

Rolf is the founder of Deutsche Industrie REIT-AG, which is a spin-off of his investment company Obotritia Capital. Before he was the

CEO of TAG Immobilien AG, Hamburg, which experienced an enormous growth under his leadership and was included into German Mid-

Cap Index (MDAX).

Rolf worked many years as an equity strategist at ABN Amro, Commerzbank and UBS in London. He has excellent banking and real

estate knowledge. Rolf is personally and financially committed to Deutsche Industrie REIT-AG.

Sonja Paffendorf (CIO)

Sonja has been part of Obotritia Capital since 2015. She started as a Head of Project Development and became the Chief Investment

Officer of Obotritia Capital in January 2017. In this position she has been responsible for the strategic growth of the commercial real estate

portfolio. She was appointed CIO of Deutsche Industrie REIT-AG on 18th of October 2017.

Sonja has worked many years in the real estate industry, especially in project development in Germany and Australia. Sonja is personally

and financially committed to Deutsche Industrie REIT-AG.

32

René Bergmann (CFO)

René has been working for the Deutsche Industrie REIT-AG since November 2017, as Director Finance he was responsible for the

development of this area. He has been Chief Financial Officer (CFO) since September 1, 2018. His duties include equity and debt

financing as well as accounting / controlling and IR.

René has worked many years in the real estate industry, especially in portfolio management and IR. René is personally committed to

Deutsche Industrie REIT-AG.

Appendix II

Properties

Appendix IIProperties

▪ The current presentation with all our properties can be found here:

▪ https://www.deutsche-industrie-reit.de/en/portfolio/properties/

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https://www.deutsche-industrie-reit.de/en/portfolio/properties/

deutsche industrie reit-ag (dir) · proforma portfolio ytd* key figures q1 2018/2019 land bank...

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