190604 godewind ppt web...godewindimmobilien ag // investor presentation may 2019 // 6 acquisitions...

INVESTORPRESENTATIONQ II 2019

GODEWINDIMMOBILIEN AGBERLIN

The presentation, including any printed or electronic copy of these slides, the talks given by the presenters, the information communicated during anydelivery of the presentation and any question and answer session and any document or material distributed at or in connection with the presentation(together, the “Presentation”), has been prepared by Godewind Immobilien AG (the “Company”) and is not an offer of any securities or invitation topurchase any securities.

The Presentation is provided for general information only and does not purport to contain all the information that may be required to evaluate the Company. Theinformation in the Presentation is subject to updating, completion, revision and verification.

No reliance may be placed for any purpose whatsoever on the information or opinions contained or expressed in the Presentation or on the accuracy,completeness or fairness of such information and opinions. To the extent permitted by law, no undertaking, representation or warranty or other assurance,express or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees, agents, affiliates, representatives oradvisers, or any other person, as to the accuracy, completeness or fairness of the information or opinions contained in the Presentation.

None of the Company, its affiliates, advisers, agents or any other party undertakes or is under any duty to update the Presentation or to correct any inaccuracieswhich may become apparent or to provide you with any additional information. No responsibility or liability is accepted by any such person for any errors,omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred, however arising, directly or indirectly, from any useof, as a result of the reliance on, or otherwise in connection with, the Presentation. In addition, no duty of care or otherwise is owed by any such person torecipients of the Presentation or any other person in relation to the Presentation.

The Presentation includes statements that are, or may be deemed to be, forward-looking statements. The words “believes”, “expects”, “may”, “will”, “could”,“should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”, “predicts”, “continues”, “assumes”, “positioned” or “anticipates” and similar expressions (ortheir negative) identify certain of these forward-looking statements. These statements are based on the current views, expectations and assumptions of themanagement of the Company and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materiallyfrom those expressed or implied in such statements. Actual results, performance or events may differ materially from those described in such statements due to,among other things, changes in the general economic and competitive environment, risks associated with financial markets, exchange rate fluctuations andcompetition from other companies, changes in laws and regulations affecting the Company and other factors. The Company does not assume any obligations toupdate any forward-looking statements.

The Presentation includes statistics, data and other information from third-party sources. While the Company believes that these sources are reliable, theCompany has not independently verified the data contained therein. Accordingly, undue reliance should not be placed on any of the third-party statistics, dataand other information contained in the Presentation.

The distribution of this Presentation in certain jurisdictions is restricted by law. Therefore, it must not be distributed, published or reproduced (in whole or in part)or disclosed by its recipients to any other person for any purpose, other than with the consent of the Company. All trademarks remain the property of theirrespective owners. By attending any delivery of the Presentation, you agree to be bound by the above limitations and conditions and, in particular, you represent,warrant and undertake to the Company that: (i) you will not forward the Presentation to any other person or reproduce or publish this document, in whole or inpart, for any purpose; and (ii) you have read and agree to comply with the contents of this notice.GODEWIND

IMMOBILIEN AGBERLIN

DISCLAIMER

GODEWIND IMMOBILIEN AG // INVESTOR PRESENTATION MAY 2019 // 3

WHAT IS SPECIALABOUT USPLATFORM FOR INVESTORS IN GERMAN COMMERCIAL REAL ESTATE

All figures (€) as of Mar 2019, unless otherwise stated / * target after business plan execution

100% OFFICE269,510 (sqm)

• Pure office portfolio in Germany

• Only A cities/locations, value-add and Core(+) only

• Selected assets which perfectly fit our strategy

1

SUPERIOR ORGANICGROWTHmore than 75% value upside*

• Strong organic NAV growth-potential in value-add segment

• Vacancy reduction and market rents as NAV drivers

2

NO STRUCTURALVACANCY28% vacancy

• Asset by asset acquisitions mean no assets with structural vacancy

• Occupancy rate of 72% for portfolio can be increased to ‘fully let‘

3

ATTRACTIVE FINANCINGSTRUCTURE+ € 355 m tax loss carryforwards

• Financing of ~1.5% for 5 years envisaged, low amortization payments

• Solid net LTV-target of 45-55% • € 180m corporate tlcf, € 175m

commerical tlcf, € 133m contribution account 5

MAXIMUM TRANSPARANCYfull details on every single asset

• Full set of EPRA numbers

• KPIs down to each individual property

6

MANAGEMEMT ASMAJOR SHAREHOLDERSfamily and friends with >30% stake

• CEO holds around 6% (12% incl. financial Instruments)

• Family and friends together account for about 37%

7

NO LEGACIES9 selected properties

• Company built from scratch – no legacy portfolio

• No legal or corporate legacies

4


WHO WE AREGODEWINDIMMOBILIEN AG

“Our Goal is to become the Preferred Platform for Investors in German Office Real Estate.”

ABOUT GODEWIND

• Stock-listed commercial real estate company with focus on office.

• Successful blind pool IPO on 5 April 2018 raising € 375m

• Vision is to create an office real estate portfolio of around € 3bn in the mid term.

• First acquisitions with a volume of around € 740m executed.

• Seasoned management team as a significant stakeholder with sustained track record for creating shareholder value and transaction volume of more than € 20bn.

Frankfurt-Airport-Center, Hugo-Eckener-Ring, Frankfurt

AKQUISITION-STRATEGY• Focus on office properties and mixed commercial portfolios with

earnings potential - *other assets than office for disposal• Attractive assets with value potential and stable cash flows• Extensive and long-established network creates opportunities

for off-market transactions and bidding processes

Office~ 60%

*Logistics, Hotels, etc.

~ 20%

*Other commercial

~ 20%

PORTFOLIO-STRATEGY• Creating a portfolio with focus on office properties• Value creation through inhouse active asset-management• Consistent realization of development and appreciation

potential• Disposal of non-office assets

Value-Add~ 40%

Core(+)~ 40%

~ 20%Opportunistic


ROADMAP SINCE IPOON TRACK TO BUILD A LEADING GERMANCOMMERCIAL REAL ESTATE PLATFORM

BUSINESS CONCEPTAND IPO-TEAM

IPO AT FRANKFURT STOCK EXCHANGE

EXPANSION OFMANAGEMENT TEAM

FIRST ACQUISITIONSOF PROPERTIES

ASSET MANAGEMENT OPTIMIZING PORTFOLIO

FUTURE ACQUISITIONSFROM PIPELINE

Our path towards a sound and profitable commercial property portfolio

• Development of a unique acquisition and portfolio strategy based on the“blind pool IPO concept”

• IPO-team with strong partners, e.g. Citigroup, J.P. Morgan

• First successful real estate “blind pool IPO” in Germany listed in Prime Standard • Issue proceeds of € 375m. Traded on Xetra since 5 April 2018

• New senior managers in finance and asset management• Due diligence for more than € 2bn of assets

• First acquisitions worth around € 740m signed since October• Portfolio entirely consists of office properties with significant upside

in attractive locations

• Further portfolio and asset acquisitions from pipeline.• Mixed commercial portfolios and selective asset by asset approach

from € 2bn + pipeline.

• Active asset management for realization of value-add potential• Focus on generating long-term and stable income streams for our investors

Q118

Q218

Q318

Q418

2019

2019


ACQUISITIONS OVERVIEW – 100% OFFICEVOLUME OF MORE THAN EUR 700M ACQUIRED IN JUST ABOUT 4 MONTHS

37,0 35,040,0

17,7 19,1 20,2

0%

5%

10%

15%

0

10

20

30

40

2008 2013 2018

Frankfurt

22,527,5 28,0

12,8 14,3 16,2

0%

5%

10%

15%

0

10

20

30

40

2008 2013 2018

Dusseldorf

INVESTMENT PORTFOLIO SIZE (sqm)269,510

RENTAL INCOME* (€ m)35.4/€ 14.4**

VACANCY RATE28%

WALT4.8 years

NET PURCHASE PRICE (€ m)707.6 / € 2,626 (per sqm)

GROSS INITIAL YIELD5%

* All figures as of March 2019, unless otherwise stated *total rent pro forma annualized

** office rent per sqm, per month

Dusseldorf2 properties6% of total rent

Cologne

Frankfurt3 properties51% of total rent

Leipzig

Munich2 properties7% of total rent

23,5 24,028,0

13,6 14,1 16,0

0%

5%

10%

15%

0

10

20

30

40

2008 2013 2018

Hamburg

Prime rent (€/sqm/mth)

Average rent (€/sqm/mth)

Vacancy rate (%)

30,5 31,5

39,0

14,3 15,218,9

0%

5%

10%

15%

0

10

20

30

40

2008 2013 2018

Munich

Godewind‘s Investment Market – Locations of all 9 assets

Hamburg2 properties36% of total rent

Berlin


CONCENTRATION ON 4 TOP REGIONSPORTFOLIO DATA

Office by Office LettableArea (m²)

Vacancy Rate

Rental Income

p. a. (€m)

Average Rent €/m²

p. m. (office)

Market Rent €/m²

p. m. (office)*

WALT (years)

Net Purchase

Price (€m)

Net Purchase

Price €/m²

GrossYield

Gross Purchase

Price (€m)

Core(+)

ComCon, Frankfurt 16,264 12.3% 2.0 10.89 13.50 2.9 33.5 2,060 6.0% 35.8

Airport Center, Dusseldorf 13,077 16.6% 1.8 13.28 14.00 3.7 40.0 3,059 4.6% 42.9

Pentahof, Hamburg 24,747 0.0% 3.0 9.41 10.50 4.6 60.6 2,449 4.9% 63.7

Zeughaus, Hamburg 43,522 10.6% 7.3 13.10 14.50 3.1 153.0 3,515 4.8% 160.0

Subtotal Core(+) 97,610 9.9% 14.1 11.71 13.20 3.5 287.1 2,941 4.9% 302.4

Value-Add

FAC, Frankfurt 48,495 19.5% 10.0 20.70 21.00 5.8 168.0 3,490 5.9%** 168.3

Sunsquare, Munich 18,820 62.8% 0.8 11.47 12.00 3.4 30.5 1,621 2.6% 32.2

Eight Dornach, Munich 17,612 51.1% 1.1 9.96 12.50 4.0 30.0 1,703 3.6% 32.2

Y2, Frankfurt 31,256 35.3% 2.7 11.12 12.00 5.2 52.0 1,681 5.2% 55.3

Herzog-Terrassen, Dusseldorf 55,717 45.4% 6.7 18.99 20.50 6.2 140.0 2,513 4.8% 149.4

Subtotal Value-Add 171,900 38.7% 21.3 16.81 17.10 5.7 420.5 2,446.2 5.1% 437.4

Total 269,510 28.0 % 35.4 14.41 15.60 4.8 707.6 2,626 5.0% 739.8

All figures (€) as of March 2019, unless otherwise stated

*sources: Thomas Daily, JLL, Cushman, Colliers, Savills, ^CBRE, Godewind research

**excl. ground rent payments, incl. yield is 5.5%


ACQUISITION I – COMCONCENTER – FRANKFURT CLOSING 31 OCTOBER 2018

(1) Rental income includes up to EUR 71k p.a. for the rented car parking space / (2) Yield/multiple based on the net purchase price

HIGHLIGHTS

• Asset Deal, closing 31 October 2018

• An indicative valuation puts the value of the property at € 40.2m, which represents a multiple of 19.7x, equivalent to a Lucky-Buy effect of € 4.4m (based on the gross purchase price of € 35.8m).

• The property also includes 1,090 square metres of vacant office space, which is currently at the enhanced shell stage of construction. This space will be let before the construction works are finished.

• The Niederrad district has become an important office location in Frankfurt in recent years. Demand for office space in this strategically attractive location between the airport and the city centre has risen steadily in recent years and the high vacancy rates of the past have been reduced significantly.

PROPERTY KPIs as per acquisition

YEAR OF CONSTRUCTION 2002

NET PURCHASE PRICE € 33.5m/2,060 €/m²

RENTAL INCOME p.a. (1) € 2.0m

YIELD/MULTIPLE (2) 6.0%/ 16.4x

LETTABLE AREA 16,264 m²

PARKING SPACES (underground/outside) 374 (161/ 213)

AVG. RENT/m2 (office) € 10.50 p.m.

MARKET RENT (office) € 13.50 p.m.

WALT (Years as of 1.01.2019) 3.1

VACANCY RATE (area) 12.3%


ACQUISITION II – AIRPORT BUSINESS CENTER – DUSSELDORFCLOSING 30 NOVEMBER 2018

(1) Yield/multiple based on the net purchase price

HIGHLIGHTS

• Asset Deal, closing 30 November 2018

• An indicative valuation puts the value of the property at € 43.0m, which represents a multiple of 20.1x.

• As of April 2019 the property will also have 1,994 square metres of vacant office space, which is currently let for € 12.42 per square metre. This vacant space is to be let for around € 14.00 per square metre, per month.

• The Airport Business Center is located right at the exit from the A52 motorway and benefits from excellent connections to both the motorway network and Düsseldorf International Airport. The Airport subsegment is currently seeing continuous enhancement, which is reflected in steadily rising prime rents.



RENTAL INCOME p.a. € 1.8m

YIELD/MULTIPLE (1) 4.6%/21.7x


PARKING SPACES (underground/outside) 256 (153/103)


MARKET RENT (office) € 14.00 p.m.





ACQUISITION III – SUNSQUARE – KIRCHHEIM/MUNICHCLOSING 15 DECEMBER 2018

(1) Based on the net purchase price / (2) The average square metre rent for office space is higher than the total average rent, because the site includes a canteen of 1,290m² which is currently paying no rent / (3) Source: JLL Advisory

HIGHLIGHTS

• Asset Deal, closing 15 December 2018

• Advanced negotiations are in progress with one of the biggest rehabilitation center operators in Germany about the construction of a convalescent home on the site.

• An indicative valuation puts the value of the property at € 37.1m, which represents a multiple of 46.2x, equivalent to a “lucky-buy” effect of € 4.9m (based on the gross purchase price of € 32.2m).

• The office complex is located in Kirchheim-Heimstetten, a prosperous suburb of Munich. Its proximity to Munich and the optimal infrastructure have persuaded many well-known companies to settle down in the immediate vicinity.







AVG. RENT/m2 (office) (2) € 11.47 p.m.

MARKET RENT/m2 pcm (office) (3) € 12.00 p.m.





ACQUISITION IV – FRANKFURT AIRPORT CENTERCLOSING 28 DECEMBER 2018

HIGHLIGHTS

• Share Deal, closing 28 December 2018

• Two new anchor leases (8,910 square metres or 18.5% of the lettable area and € 1,736k rent p.a.) already signed with tenants from the aviation industry.

• Refurbishment of rental areas is in progress, completion expected for April and July 2019.

• An existing financing of € 88.0m is included in the transaction. Additionally a total sum of € 27.0m which is available for capex and tenant fittings.

• The Frankfurt Airport Center is a unique asset with a direct link to the Terminal 1 of the Frankfurt airport. It also benefits from excellent connections to the motorway- and railway-network. The Airport subsegment has seen continuous enhancement over recent years, which is reflected in steadily rising prime rents.

YEAR OF CONSTRUCTION(modernization) 1988/2016

NET PURCHASE PRICE (1) € 168.0/3,490 €/m²

RENTAL INCOME p.a. (2) € 10.0m

YIELD (1)/MULTIPLE (3) 5.5%/18.2x


PARKING SPACES (underground/outside) 183


AVG. MARKET RENT/m2 (office) € 21.00 p.m.




(1) Purchase price excluding already agreed refurbishing and capex for new rent contracts with Operational Services and Star Alliance for EUR 7.7 million p.a. / (2) Rental income adjusted for the two signed rental contracts with Operational Services and Star Alliance. As per 01.11.2018 rental income excluding these contracts is EUR 8.4 million /

(3) Yield/ multiple including deduction of ground rents


ACQUISITION V – PENTAHOF – HAMBURGCLOSING 31 JANUARY 2018

HIGHLIGHTS

• Asset Deal, closing 31 January 2019

• An indicative valuation puts the value of the property at € 64.2m, which represents a multiple of 21.7x.

• Major tenant with 98% of the overall space is an international oil company with top credit rating. However the space used by the major tenant, declined gradually over the past few years and currently is at 89% due to sub-letting.

• The annualised funds from operations (FFO) before overheads are more than € 2.13m. This represents an initial FFO yield of about 7.7 per cent before overheads.

• The Pentahof is located in the subsegment Hamburg Fuhlsbüttel/Airport and benefits from excellent connections to both the motorway A7 and Hamburg International Airport. The asset is very flexible and can be used as multi- or single tenant property.

YEAR OF CONSTRUCTION(modernization) 1997






AVG. RENT/m2 pcm (office) € 9.41 p.m.







ACQUISITION VI – QUARTIER AM ZEUGHAUS – HAMBURGCLOSING 30 APRIL 2019

HIGHLIGHTS

• Asset Deal, signed in December 2018

• An indicative valuation puts the value of the property at € 164m, which represents a multiple of 24.5x.

• Major tenants are telecoms, media-groups, leasing companies, hospital service and other service providers.

• The asset offers short term upside potential due to a vacancy rate of 10.6% and market rent of € 14.50 plus per square metre.

• The Zeughaus is located in Hamburg Eppendorf, one of the most renown quarters in Hamburg with rising rents and a very attractive tenant mix. The asset offers very high-quality offices and is very flexible in terms of usage.

YEAR OF CONSTRUCTION(modernization) 1927/(2000)/(2008)

NET PURCHASE PRICE € 153.0/3,515 €/m²


YIELD/MULTIPLE (1) 4.8%/21x


PARKING SPACES 782


AVG. MARKET RENT/m2 pcm (office) € 14.50 p.m.






ACQUISITION VII – Y2 – FRANKFURT CLOSING 13 FEBRUARY 2019


HIGHLIGHTS

• Asset Deal, closing 13 February 2019

• An indicative valuation puts the value of the property at € 54m, which represents a multiple of 20x .

• Major tenants are amongst others JobcenterFrankfurt, City of Frankfurt, and other service providers.

• The asset offers short term upside potential due to a high vacancy of 35.7% and market rent of € 12.00 plus, per square metre p.m.

• The Y2 is located in the so called Merton quarter and benefits from excellent connections to downtown Frankfurt (subway station directly next to the building). The asset is very flexible and can be used for smaller multi-office purpose or as large-office property.






PARKING SPACES 567







ACQUISITION VIII – EIGHT DORNACH – ASCHHEIM/MUNICHCLOSING 31 JANUARY 2019


HIGHLIGHTS

• Asset Deal, closing 31 January 2019

• An expected valuation puts the value of the property at € 50m, once fully let and with an annualised rent of € 2.6m which represents a valuation gain of € 12.3m.

• ‚Eight Dornach‘ benefits from excellent connections to downtown Munich and is flexibility as it can be used for smaller multi-office purpose as well as a large-office property or a combination of both. It is also only 5 car minutes away from the Munich fair-ground.

• The asset offers short term upside potential due to high vacancy of 51.1% and market rent of € 12.50 per square metre p.m.

• Eight Dornach is located in the so called business-park ExpoGate Munich-Dornach directly on the Munich city border.




YIELD (1)/MULTIPLE 3.6%/27.5x


PARKING SPACES 279







ACQUISITION IX – HERZOG-TERRASSEN – DUSSELDORFCLOSING 15 APRIL 2019

(1) Yield/multiple based on the net purchase price / (2) Excluding exeptional right of termination; NRW Bank has an exeptionalright of termination between years 3-5 for 1,400 sqm and after 8 years for the whole space. Including this WALT would be 5.8

HIGHLIGHTS

• Asset Deal, off-market transaction, signed in January 2019

• The assset is located right in downtown Düsseldorf just 500m of Königsallee. The former head quarter of WestLB is a now a multi tenant asset with very flexible office space and an upmarket infrastructure.

• The property is located on a 16,300 sqm plot and is perfectly suitable for tenants from the financial- and service-industry offering security service, inhouse restaurant, coffee shops and one of the largest underground car parks in Dusseldorf.

• An indicative valuation puts the value of the property at € 180.0m or a multiple of 26.9x. The asset offers short term upside potential due to high vacancy of 51.1% and market rent of € 12.50 per square metre.

• Unique opportunity to extend lease contracts and reduce vacancy. Strong tenant base of international banks and trading companies.

YEAR OF CONSTRUCTION(modernization) 1980/2014



YIELD (1)/MULTIPLE 4.8%/20.8x


PARKING SPACES 962



WALT (Years as of 1.01.2019) (1) 6.4




VALUE POTENTIAL TO BE UNCOVEREDPROPERTY OPPORTUNITIES –SUBSTANTIAL UPSIDE

Detailed potential EPRA NAV Development

All figures (€) based on assumptions as of March 2019, unless otherwise stated

380 380 418490 527

380

3872

37

149

296

0

100

200

300

400

500

600

700

IPONAV

Organic Capitalisationof TLCFs

Core (+)Uplift

Value AddUplift

FutureEPRA NAV

454

Office Portfolio

Core(+)

Value-Add +-Core(+)

EPRA NAV CAGR excluding dividends676

1 2 3 3 4

Capitalizing of Godewind’s Tax Loss Carryforwards

• Capitalisation based on estimated tax savings and expected German corporate income tax rate

2Godewind’s Asset Management

• Uplift of rental income to market rent via renewal of rental contracts (Core(+) Assets)

• Vacancy reduction at market rent levels to make full use of the existing potential of the portfolio (Value-Add Assets)

3Godewind’s Value-Add Strategy / Core(+)

• Reduction of vacancy towards stabilized levels

• Conservative assumptions on downtime, rent-free periods as well as Tenant Improvements (TIs)

4Standalone Asset View

• Acquisition yield of ~5% and entry LTV of 54%

• Annual indexation of rental income (1.5%-2.0%)

• No yield compression

1


VALUE CREATION EXAMPLEHERZOG-TERRASSEN, DUSSELDORF

PROPERTY KPIs

INVESTMENT RATIONALE• Asset deal, off-market. Acquired a manage to core icon-asset in

Dusseldorf inner city• An indicative valuation puts the value of the property at € 180.0m or a

multiple of 26.9x• Unique opportunity to extend lease contracts and reduce vacancy.

Strong tenant base such as Deutsche Bank, NRW Bank, Oddo, Mitsui.

YEAR OF CONSTRUCTION (modernization) 1980/2014

GROSS PURCHASE PRICE € 149.4m/2,681 €/m²





AVG. RENT/m² pcm (office) € 19.00 p.m.

AVG. MARKET RENT/m² (office) € 20.50 p.m.



BUSINESS EXECUTION PLAN• Extend and sign new contracts to full occupancy

• Reposition asset through diversified tenant mix and offering large lettable areas for medium sized national and international companies

• Adjusting current office rent towards market rent

• 100% green electricity as of July 2019

VALUATION UPSIDETARGET KPIs AFTER BUSINESS PLAN EXECUTION

TARGET MARKET VALUE € 225.0m


GROSS YIELD/MULTIPLE 5.1%/19.5x

INVESTMENT € 21.9m


INDICATIVE NET APPRECIATION (2) € 53.7m/35.9%

1

2

3

4

(1) Yield/multiple based on the net purchase price / (2) Excluding exeptional right of termination. NRW Bank has an exeptional right of termination between years 3-5 for 1,400 sqmand after 8 years for the whole space. Including this WALT would be 5.8 / (3) Net appreciation based on the gross purchase price

STAVROS EFREMIDISCEO

INVESTOR RELATIONSGUNNAR JANSSEN+49 69 2713973 213+49 175 29 76 [email protected]

GODEWINDIMMOBILIEN AGKANTSTRASSE 16410623 BERLINGERMANY

GODEWIND-AG.COM

LEADING IN COMMERCIALREAL ESTATE

190604 godewind ppt web...godewindimmobilien ag // investor presentation may 2019 // 6 acquisitions...

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