deutsche industrie reit-ag (dir)

Deutsche Industrie REIT-AG (DIR)Q1 2019/2020 Financial Results

13 February 2020

Content

▪ 2019/2020 Highlights

▪ Portfolio

▪ Acquisitions

▪ Financing

▪ Results Q1 2019/2020

▪ DIR Shares & Investor Relations

-------------------------------------------------

▪ Appendix: Glossary, Disclaimer

2

Q1 2019/2020 Highlights

Highlights Q1 2019/2020

Key figures

4

Properties

63

Portfolio

Value

493.1 m€

Commercial

Space

1.15m sqm

Annualised

In-Place Rent

43.8 m€

FFO

5.0 m€

LTV

40.0%

REIT equity

ratio

61.0%

Net rental

Income

7.4 m€

Pro forma

Portfolio YTD*

Key Figures

Q1 2019/2020

Land Bank

2.6m sqm

* Based on pro forma portfolio as of 13/02/2020 = including notarised properties YTD with transfer of ownership after 31/12/2019

2019/2020

FFO-Guidance

23-25 m€

Revaluation

gains

2.2 m€

Occupancy

88.6%

Highlights Q1 2019/2020

Key figures

5

0.13

0.19

Q1 2018/2019 Q1 2019/2020

FFO per share (€)

7.74

9.54

30/09/2019 31/12/2019

EPRA NAV per share (€)

Avg. # of

shares 18,880,494 26,369,645 # of shares 23,451,945 29,163,187

Q1 2018/2019 Q1 2019/2020

NRI margin: 87% ↘ 84%

Earnings per share (EUR) 0.12 ↗ 0.20

Cost ratio (recurring costs to rental income): 7.4% → 7.5%

Costs of debt (non-current financial liabilities): 3.77% ↘ 2.72%

Portfolio

PortfolioSustainable external and internal growth

1 Based on pro forma portfolio as of 13/02/2020= including notarised properties YTD with transfer of ownership after 31/12/20197

Absolute growth year on year and pro forma1 Like-for-like development2

29

5863

12/2018 12/2019 Pro forma

No. of properties

83.7

88.7 88.6

12/2018 12/2019 Pro forma

Occupancy (%)

4.1

5.2

4.8

12/2018 12/2019 Pro forma

WALT (years)

202

453493

12/2018 12/2019 Pro forma

GAV (m€)

19.4

37.943.8

12/2018 12/2019 Pro forma

Annualised in-place rent (m€)

3.26

3.34

3.49

12/2018 12/2019 Pro forma

IPR (€/sqm)

19.4 19.8

12/2018 12/2019

Annualised in-place rent (m€)

3.26 3.38

12/2018 12/2019

IPR (€/sqm)

83.982.8

12/2018 12/2019

Occupancy (%)

202

235

12/2018 12/2019

GAV (m€)

2 Based on 28 properties on both balance sheet dates

PortfolioBroad regional allocation

8

Pro forma portfolio as of 13/02/2020 = including notarised properties YTD with transfer of ownership after 31/12/2019Source: Google Maps

Portfolio as of 31/12/2019

Acquired properties

with transfer after 31/12/2019

Every location of our properties can be found here:

DIR Properties in Google maps

Federal State Properties Commercial space Annualised rent % of rent

North Rhine-Westphalia 24 333,605 sqm 12,770 k€ 29.1%

Lower Saxony 7 253,173 sqm 8,011 k€ 18.3%

Bavaria 6 121,909 sqm 7,547 k€ 17.2%

Baden-Wurttemberg 4 109,238 sqm 5,574 k€ 12.7%

Mecklenburg Western Pomerania 7 127,453 sqm 2,982 k€ 6.8%

Brandenburg 5 48,553 sqm 2,090 k€ 4.8%

Thuringia 4 57,229 sqm 1,689 k€ 3.9%

Rhineland Palatinate 1 20,905 sqm 1,036 k€ 2.4%

Saarland 1 44,084 sqm 948 k€ 2.2%

Saxony-Anhalt 2 11,900 sqm 558 k€ 1.3%

Bremen 1 9,903 sqm 420 k€ 1.0%

Berlin 1 8,816 sqm 221 k€ 0.5%

Total 63 1,146,768 sqm 43,846 k€ 100.0%

https://drive.google.com/open?id=1gyEBViyKKFqtPnR-zT67JRjPR1fHb7xt&usp=sharing

Type Properties Total rental space Commercial rental space IPR p. sqm Vacancy WALT Annualised rent % of rent GAV yield

Logistics 20 389,814 sqm 375,127 sqm 3.50 € 9.1% 4.4 14,370 k€ 32.8% 177,890 k€ 8.1%

Production & logistics 28 668,812 sqm 422,247 sqm 2.85 € 4.6% 6.9 13,888 k€ 31.7% 163,772 k€ 8.5%

Industrial park 15 373,694 sqm 349,394 sqm 4.41 € 22.1% 2.8 15,587 k€ 35.6% 151,460 k€ 10.3%

Total 63 1,432,320 sqm 1,146,768 sqm 3.49 € 11.4% 4.8 43,846 k€ 100.0% 493,122 k€ 8.9%

PortfolioDiversified mix of uses

9

What‘s the type of

the property

How is the single

unit used

Main Use Units Annualised rent % of rent

Commercial 1,453 42,523,146 k€ 97.0%

Parking 1,189 489,130 k€ 1.1%

Other 371 792,018 k€ 1.8%

Residential 20 41,263 k€ 0.1%

Total 3,033 43,845,557 k€ 100.0%

Mainly commercial use

(no significant dilution)

Pro forma portfolio as of 13/02/2020 = including notarised properties YTD with transfer of ownership after 31/12/2019

Production33%

Logistics38%

Storage12%

Office16%

Other commercial

space1%

Types of use by commercial space

PortfolioWell-balanced industrial sectors

10Pro forma portfolio as of 13/02/2020 = including notarised properties YTD with transfer of ownership after 31/12/2019

Industrial sector % of Rent

Transport/logistics services 15.3%

Metalworking 10.7%

Mail order/online trade 6.7%

Pharmaceutical industry 6.6%

Mechanical and plant engineering 6.5%

Automotive supplier 6.2%

Industry/specialist/wholesale trade 5.1%

Public sector 4.7%

Plastics processing 3.7%

Defence industry 3.5%

Air carrier 3.0%

Textile coating 2.7%

Compressed air technology 2.4%

Paper Processing/Paperboard/Packaging 2.3%

Retail trade 2.1%

Top Fifteen 81.2%

cyclical54%

non-cyclical41%

public sector

4%privat/ non commercial1%

CYCLICALITY BY TOTAL RENT

PortfolioSolvent major tenants – adequate WALT

▪ Annualised in-place rents split by remaining lease duration

11

WALT: 4.8 Years

Tenant Sector % of rent

Aenova / Haupt Pharma Pharmaceutical Industry 6.4%

Versandhaus Walz GmbH, Baby Walz, Online/Mail order seller 5.8%

DST Defence Service Tracks GmbH Defence industry 3.4%

Otto ( GmbH& Co KG ) Logistics 3.3%

Gabo Stahl GmbH Metalworking 2.9%

Bundesanstalt für Immobilienaufgaben German Armed Forces / Customs 2.8%

Sihl GmbH Printable materials 2.7%

Lufthansa Group Aerospace company 2.5%

CompAir / Gardner Denver Compressed air systems 2.4%

Veenendaal Schaumstoffwerk GmbH Foam processing 2.0%

Top Ten Tenants 34.3%

Top Twenty Tenants 479 Tenants in total 50.4%

Pro forma portfolio as of 13/02/2020 = including notarised properties YTD with transfer of ownership after 31/12/2019

Annualised

total portfolio

rent (m€)

Valuation

multiple Yield

Portfolio value

(mEUR)Net LTV

Net debt

outstanding

NAV

(m€)

Number

of

shares

million

Hypothetical

NAV per

share (€)

premium/dis

count at

share price

of 19.00 €

Portfolio as of 31/12/2019 (IFRS) 37.9 12.1 8.2% 460.1 40% 184.0 278.3 29.2 9.54 99%

Pro forma portfolio as of 13/02/2020 43.8 11.2 8.9% 493.1 40% 197.2 295.9 29.2 10.15 87%

Assumptions

based on pro forma portfolio

43.8 15.0 6.7% 657.7 30% 197.2 460.4 29.2 15.79 20%

43.8 15.5 6.5% 679.6 29% 197.2 482.4 29.2 16.54 15%

43.8 16.0 6.3% 701.5 28% 197.2 504.3 29.2 17.29 10%

43.8 16.5 6.1% 723.5 27% 197.2 526.2 29.2 18.04 5%

43.8 17.0 5.9% 745.4 26% 197.2 548.1 29.2 18.80 1%

43.8 17.5 5.7% 767.3 26% 197.2 570.1 29.2 19.55 -3%

43.8 18.0 5.6% 789.2 25% 197.2 592.0 29.2 20.30 -6%

43.8 18.5 5.4% 811.1 24% 197.2 613.9 29.2 21.05 -10%

43.8 19.0 5.3% 833.1 24% 197.2 635.8 29.2 21.80 -13%

43.8 19.5 5.1% 855.0 23% 197.2 657.7 29.2 22.55 -16%

43.8 20.0 5.0% 876.9 22% 197.2 679.7 29.2 23.31 -18%

Portfolio value

(mEUR)

Value per sqm

rental space

Value per sqm

land bankYield In-place rent

proforma portfolio 13/02/2020 493.1 m€ 344 €/sqm 188 €/sqm 8.9% 3.49 €/sqm

...at implied yield on share price level of 19 € 730.8 m€ 510 €/sqm 278 €/sqm 6.0% 3.49 €/sqm

Required rent at constant yield 730.8 m€ 510 €/sqm 278 €/sqm 8.9% 4.72 €/sqm

PortfolioValuation potential - share price trades at attractive ~6% yield

12

Current

share

price

level

▪ Premium reflects market expectation on strong rent and

value upside potential

▪ Share price level implies ~6 % yield

▪ Value per sqm moderate, also at 6% yield

▪ Still low rent in comparison to market level of 5 – 7 €/sqm

PortfolioIndividual properties

▪ Detailed information of all our properties can be found here:

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

13

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

Acquisitions

AcquisitionsKloster Lehnin, Dinslaken, Wedemark

15

Kloster Lehnin Damsdorfer Hauptstraße 36 B

Acquired 18/11/2019

Type Logistics

Rental space 13,450 sqm

Annualised in-place rent 454 k€

WALT 1.1 years

Vacancy 0.0%

Purchase price 3,300 k€

Yield 13.8%

Sector(s) Archiving

Dinslaken Lanterstraße 34

Acquired 29/11/2019

Type Production & logistics



WALT 5.0 years

Vacancy 0.0%


Yield 9.0%

Sector(s) Production of safety lighting

Wedemark Industriestraße 44

Acquired 03/12/2019

Type Logistics



WALT 0.5 years

Vacancy 4.6%


Yield 10.2%

Sector(s) Automotive

AcquisitionsOberding

Oberding Lohstraße 22-28a

Acquired 12/12/2019 Vacancy 23.6%

Type Industrial park Purchase price 21.200 k€

Rental space 49,547 sqm Yield 17.9%*

Annualised in-place

rent3,789 k€ Sector(s) Aerospace companies, logistics

WALT 2.3 years

16* taking into account 1,495 k€ ground rent, the gross initial yield is 10.8%.

Financing

FinancingDebt structure

18All figures are based on the pro forma loan/bond figures signed by 12 February 2020.

Convertible Bond14%

Cooperative banks

6%

Corporate Bond40%

Savings banks40%

Loan allocation (% initial nominal loan amount)

# Lender Interests AmortisationLoan

nominal

Loan

Duration

(years)

Fixed interest

(years)

1 Secured Corporate bond 4.00% 0.00% 118.0 m€ 2.7 2.7

1 Convertible bond 2.00% 0.00% 41.6 m€ 6.4 6.4

14 Savings Banks 1.88% 5.16% 115.5 m€ 11.0 8.6

5 Cooperative Banks 1.30% 5.75% 16.8 m€ 16.3 9.2

21 Total 2.72% 2.37% 291.9 m€ 7.3 5.9

0 m€

10 m€

20 m€

30 m€

40 m€

50 m€

60 m€

70 m€

80 m€

90 m€

100 m€

110 m€

120 m€

2020 2021 2022 2024 2025 2026 2028 2029 2030 2035 2036 2037 2038

Maturity profile (m€ initial nominal loan amount)

• Further diversification of financial instruments

• Long term maturity profile

• Cost of debt down to 2.72 % (3.77%, 31/12/18)

• Average interest rate of bank loans at 1.8%

• ICR of 3.77 times (EBITDA/Net interests)

Results

Q1 2019/2020

k€ 31/12/2019 30/09/2019 k€ 31/12/2019 30/09/2019

Assets Equity and liabilities

Investment properties 456,443.0 392,849.0 Issued share capital 29,163.2 23,451.9

Intangible assets 1.4 1.8 Capital reserve 175,340.9 89,530.2

Property, plant and equipment 1,023.1 1,051.9 Other reserves 50.0 50.0

Derivative financial instruments 208.6 0.0 Other Comprehensive Income 208.6 0.0

Other financial assets 20,022.6 0.0 Retained earnings 73,702.2 68,431.1

Other non-current assets 3,619.5 38,886.2 Total equity 278,464.9 181,463.2

Total non-current assets 481,318.2 432,788.9 Liabilities to banks 86,931.2 67,526.5

Trade and other receivables 1,541.0 815.9 Corporate bonds 119,124.3 117,904.0

Other current assets 52,144.0 2,883.7 Convertible bonds 41,600.0 41,184.0

Cash and cash equivalents 2,594.8 2,065.7 Other non-current liabilities 1,535.5 1,530.1

Total current assets 56,279.8 5,765.2 Total non-current liabilities 249,191.0 228,144.6

Financial liabilities 5,788.6 3,956.9

Non-current assets held for sale 0.0 435.0 Liabilities to other creditors 0.0 20,177.7

Other current liabilities 4,153.5 5,246.7

Total current liabilities 9,942.1 29,381.2

Total assets 537,598.0 438,989.1 Total equity and liabilities 537,598.0 438,989.1

Financial Results Q1 2019/2020Condensed IFRS balance sheet

Pro forma portfolio of

€493 million

including latest

notarised acquisitions

20

Capital increase in 11/19 from

23.5m to 29.2m shares

at 16.25 € per share

Fair value of financial

derivatives (interest SWAP)

Corporate bond

nominal 118.0 m€

Liquidity management

by financial

investments

Financial Results Q1 2019/2020NAV, LTV and REIT equity ratio

k€ 31/12/2019 30/09/2019

Total equity 278,464.9 181,463.2

Conversion of convertible bonds 0.0 0.0

NAV 278,464.9 181,463.2

Fair value of derivative instruments -208.6 -

Deferred taxes - -

EPRA NAV 278,256.3 181,463.2

# of shares 29,163,187 23,451,945

NAV per share (€) 9.54 7.74

EPRA NAV: LTV*:

21

k€ 31/12/2019 30/09/2019

Total equity 278,464.9 181,463.2

Investment properties 456,443.0 392,849.0

REIT-Equity ratio 61.0% 46.2%

REIT equity ratio

REITcriteria fulfilled

(45% by law)

Interest SWAP

k€ 31.12.2019 30.09.2019

Liabilities to banks 86,931.2 67,526.5

Liabilities from corporate bonds 119,124.3 117,904.0

Liabilities from convertible bonds 41,600.0 41,184.0

Other non-current liabilities 1,532.5 1,527.1

Non-current financial liabilities 249,188.0 228,141.6

Liabilities to banks 5,788.6 3,956.9

Liabilities to other creditors 0.0 20,177.7

Current financial liabilities 5,788.6 24,134.6

Other non-current financial assets -20,022.6 0.0

Cash and cash equivalents -2,594.8 -2,065.7

Trust accounts -956.4 -459.0

Short-term loans -47,383.9 0.0

Current financial assets -50,935.1 -2,524.7

Net debt 184,018.9 249,751.5

Investment properties 456,443.0 392,849.0

Advance payments on investment properties 3,619.5 38,886.2

Non-current assets held for sale 0.0 435.0

Total Investment properties 460,062.4 432,170.2

Net LTV 40.0% 57.8%

k€ 01/10/2019 - 31/12/2019 01/10/2018 - 31/12/2018

Gross Rental income 8,767.1 4,402.4

Income from operating and ancillary costs 2,138.5 1,106.7

Operating expenses -3,512.3 -1,680.9

Net rental income (NRI) 7,393.3 3,828.2

Other income 13.4 262.2

Result from the revaluation of investment properties 2,265.2 0.0

Personnel expenses -207.4 -160.2

Depreciation of assets -47.0 -24.6

Impairment loss of inventories and receivables -1,461.2 -90.9

Other operating expenses -489.9 -340.9

EBIT 7,466.3 3,473.8

Valuation result of financial liabilities -416.0 0.0

Interest income 336.7 8.4

Interest expenses -2,115.9 -1,280.9

EBT 5,271.1 2,201.2

Income and other taxes 0.0 22.4

Net income 5,271.1 2,223.6

Financial Results Q1 2019/2020Condensed IFRS income statement

22

Valuation effect from the

convertible bond

Mainly a IFRS-Valuation effect

from financial investments

amounting to 1.2 m€

Result from the necessary

valuation for the Securities

prospectus (30/10/2019) of

properties that were only

transferred in Q1 2019/2020

Financial Results Q1 2019/2020FFO / aFFO reconciliation

k€ 01/10/2019 - 31/12/2019 01/10/2018 - 31/12/2018

Net income 5,271.1 2,223.6

Adjustment amortisation and depreciation 47.0 24.6

Adjustment revaluation result -2,265.2 0.0

Adjustment revaluation result financial liabilities 416.0

Adjustment for special effects / non-cash expenses + income 1,487.2 104.3

Adjustment for one-off expenses/income 39.0 177.1

FFO 4,995.1 2,529.6

FFO per share 0.19 0.13

- Capex -1,076.1 -1,826.9

aFFO 3,919.0 702.7

aFFO per share (€) 0.14 0.04

Avg. # of shares for the period 26,369,645 18,880,494

FFO/aFFO:

23

Increase of FFO per share = 45%

Adjustment k€

IFRS-Valuation effect from financial investments 1,230.8

Increase / decrease in individual value

adjustments for rent receivables230.4

Valuation adjustments for interest expenses 26.0

Financial Results Q1 2019/2020FFO-Guidance and Dividend proposal

▪ FFO guidance is mainly driven by prospective acquisitions

▪ DIR intends to invest between 120 m€ and 180 m€ in the FY 2019/2020

▪ Based on current projections DIR expects

an FFO between 23 m€ and 25 m€ for the Financial Year 2019/2020

▪ FFO run rate between 27 m€ and 29 m€ by the end of FY 2019/2020

▪ The Management Board proposed a dividend of EUR 0.16 per share

for 2018/2019 at the Annual General Meeting.

24

Shares &

Investor Relations

Obotritia Capital KGaA, 8,4%

Obotritia Alpha Invest GmbH, 7,7%

Obotritia Beta Invest GmbH, 5,1%

Försterweg Beteiligungs GmbH, 4,0%

Babelsberger Beteiligungs GmbH, 4,2%

Obotritia Delta Invest GmbH, 2,4%

VBL, 9,8%Lotus AG,

5,9%

Olive Tree Invest GmbH, 1,2%

Gert Purkert,

5,1% TIVEN GmbH, 1,6%

Parson GmbH, 6,2%

Massachusetts Financial Services ,

4,3%

ALPHA 4 S.A., SICAV-SIF, 3,3%

Management, 0,8%

Remaining free float*, 30,0%

DIR SharesBasic data & shareholder structure

Shareholder structure:

Basic data

ISIN DE000A2G9LL1

WKN A2G9LL

Ticker Symbol JB7

Number of shares 29,163,187

Nominal capital 29,163,187.00 €

Share class Bearer shares

Stock exchangesBerlin (Regulated Market)

Frankfurt, XETRA (Prime Standard)

Designated Sponsor Oddo Seydler Bank AG

Listing 7 December 2017

26

*Free float according to definition of Deutsche Börse: 37.6%

Obotritia Capital

Group

31.8%

Free Float*

68.2%

DIR SharesShare performance & coverage

27

L

Coverage

Bank Date Target price

Baader 10/12/2019 20.00 €

ODDO BHF 06/12/2019 18.00 €

2

Market Cap as of 12/02/2020: ~ 589 m€

1

Event Date Price

52 weeks low 29/03/2019 10.85 €

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





52 weeks high 12/02/2020 20.40 €

1

2

L

H

3

3

H

4

4

5

5

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

28

Financial calendar

06/03/2020 Annual general meeting

14/05/2020 H1 2019/2020 financial report

13/08/2020 9M 2019/2020 Interim statement

23/09/2020 Baader Investment Conference, Munich

18/12/2020 Annual report for the financial year 2019/2020

Further Information about our share, analyst coverage or financial calendar

you‘ll find here:

https://www.deutsche-industrie-reit.de/en/investor-relations/

mailto:[email protected]

https://www.deutsche-industrie-reit.de/en/investor-relations/

Appendix

AppendixGlossary

30

# Glossary

1 Commercial units e.g. logistics, production, warehouse, office or similar without parking and other units (for example antennas, open spaces, apartments)

2 Total rental spaceAlso contains ancillary areas such as open spaces, ancillary rooms (corridors, sanitary facilities, common areas), apartments, owner-

occupied space (concierge or similar)

3 Commercial rental space e.g. logistics, production, warehouse, office or similar without parking and other units (for example antennas, open spaces, apartments)

4 Annualised in-place rent Contractual net cold rent p.a. for all units (includes also antennas, parking lots, open spaces, apartments etc.)

5 Vacancy commercial Vacant commercial space divided by (total) commercial space

6 WALT Weighed average lease terms - only contracts with an agreed fixed term have been considered

7 IPR commercial per sqm Rent of leased commercial units divided by space of leased commercial units

8 Current market value Value determined by means of market value appraisal or, where this is not yet available, the purchase price

9 Date of transfer Transfer of ownership (benefits and encumbrances)

10 EPRA NAV per share Total equity modified according to EPRA guidelines divided by number of shares

11 FFO Funds From Operation - Recurring and one-off adjusted result from the operation of the property portfolio

12 GAV Gross Asset Value – Value of investment properties in the balance sheet

13 Net-LTV Net loan-to-value – debt (financial liabilities minus cash) divided by GAV

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 REIT-AG

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 REIT-AG 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 REIT-AG control. Past performance is not a reliable indication of future performance.

Unless otherwise specified all information are for the financial quarter ended 31 December 2019.

31

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