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COMPANY PRESENTATION

22 June 2020

1

EXPERIENCED MANAGEMENT TEAM

2

Sonja WärntgesChief Executive Officer (CEO) DIC Asset AG

Certified economist

Excellent management track record, various senior positions in prestigious companies

Long-term experience in the real estate industry

Johannes v. MutiusChief Investment Officer (CIO) DIC Asset AG

Certified business administrator

Approximately 20 years ofexperience in senior positions in thereal estate industry

Patrick WeidenChief Capital Markets Officer (CCMO)DIC Asset AG

Certified business administrator and International Investment Analyst (CIIA)

Capital market expert with a proven track record, served as Division Head Equity & Debt Capital Markets at Bankhaus Lampe

GERMANY-FOCUSED COMMERCIAL REAL ESTATE PORTFOLIO COMBINED WITH STRONG REAL ESTATE PLATFORM

3

Rental incomeSales profits

Management FeesTransaction Fees

Development FeesEquity Returns

3

Attractive and diversified real estate products for institutional investors providing steady income

Provides all real estate services (transaction, asset, property and development management, sourcing of debt capital) and DIC occasionally acts as co-investor

88% office, 7% retail and 5% other1

Directly held portfolio of high quality assets in top locations

Steady income from core/core plus and value-add properties

67% office, 19% retail and 14% other1

Commercial Portfolio (Balance Sheet Investments)

Institutional Business(Managed Accounts)

TOTAL EUR 8.4 billion AuM

Property Management and Development

Transactions

Highly resilient business model with diversified income streamsNote: Financial information based on Q1 20201 Based on rental income Q1 2020

c. EUR 6.5 billion AuMc. EUR 1.9 billion real estate assets

HIGHLY COMPLEMENTARY DUAL BUSINESS MODELLeveraging the Platform for Stronger Cash Flow with Lower Risk Profile

41 Based on Q1 2020

Benefits of the combined business model…

1Broader market access and insight

throughout Germany

► 7 regional offices with

c. 150 people on the ground

…on transaction / asset management level

2

3

Critical mass with purchasing power

towards contractors and in

transaction processes

►EUR 2 billion transaction volume

in 2019

► EUR 8.4 billion AuM1

► 186 managed assets1

► 2.2 million sqm gross lease area1

Broader scope of investment

opportunities

► investments from EUR 10 million

to EUR 500 million

► from Core to Opportunistic

1Operating cost and capacity

allocation synergies

► EUR 3.5 million synergies –

one headquarter, one transaction

team, one development team,

regional property management for

both segments

…on company level

2

3

Top-line synergies

► Institutional Business deal

generation through low risk

warehousing and financing capabilities

► tenant, asset & transaction

management capabilities as USP, also

in intensive market situations

Income stream diversification

► Balanced and recurring income

streams from both segments

(c. 50% / 50%)

North

East

West

Central

South

Offices: Hamburg, Berlin, Düsseldorf, Cologne, Frankfurt, Mannheim, Munich

SUPERIOR PLATFORM TRACK RECORD THROUGH THE CYCLE

5

Transaction Volume 2019 Exceeded EUR 2 billion for the First Time

Our transaction teams surpassed the record figure for 2018 (EUR 1.2 billion) with a transaction volume of EUR 2.2 billion in 2019

On the acquisition side, 21 properties with a total volume of over EUR 1.9 billion (total investment cost) were notarised:

5 properties for around EUR 0.3 billion for the Commercial Portfolio

16 properties for around EUR 1.6 billion for the Institutional Business

On the sales side, the sale of 15 properties with a total value of around EUR 0.3 billion has been notarised:

11 properties for around EUR 0.2 billion from the Commercial Portfolio

4 properties with a value of EUR 0.1 billion from the Institutional Business

Transaction Volumein EUR million

HIGHLY DIVERSIFIED EUR 1.9 BILLION COMMERCIAL PORTFOLIO

6

Top 20 Assets with Strong Core Profile – Almost Fully Let with 7.7 Years WALT

Regional structure of portfolio 1

Type of use1

As per 31.03.2020; 1 By annualised rental income as of 31 March 2020; 2 Including supermarket and Kaufhof stores

EUR 1.9 billion Commercial Portfolio with 92

assets across Germany

Stable cash flow profile with EUR 98.8 million

annualised rental income representing current

gross yield of 5.2%

Diversified portfolio by asset class and

location, focus on Top 7 cities as well as

strong metropolitan areas (“ABBA”)

Strong tenant base with long WALT of 6.2

years and no dependency from single tenant

or individual property

Positive like-for-like growth of 2% on average

2016-2019

EPRA vacancy rate reduced to 6.5%

as per 31 December 2019

2

1

4

5

6

3

Taubenstr. 7–9,Berlin #1 Top Asset

Wilhelminenstr. 1–3 ,Darmstadt #2 Top Asset

Werdener Str. 4,Düsseldorf#3 Top Asset

Top 741%

Small - mid sized cities

59%

Office67%

Retail19%2

Logistics5%

Residential1%

Hotel/Restaurant8%

HISTORICAL DEVELOPMENT OF COMMERCIAL PORTFOLIO

7

Strong Development across all KPIs

142113 101 93

2016 2017 2018 2019

…reflected in rising annualised rental income since 2017…EUR million

Average value per property increased since 2017 due to portfolio optimization…Number of assets

106.3 95.5 97.6 101.8

2016 2017 2018 2019

…and significant increase of WALT (including attractive new acquisitions)WALT (Years)

11.8%9.5%

7.2%6.5%

2016 2017 2018 2019

4.45.1

5.8 6.0

2016 2017 2018 2019

Positive L-f-l rental growth each year…L-f-l rental growth %

1.4% 1.4%

2.7%

2.0%

2016 2017 2018 2019

…and again growing portfolioFair value of investment properties (EUR million)

1,9481,639 1,697 1,900

2016 2017 2018 2019

20.416.814.513.7

Average value per property (EUR million)

–5.3pp

+1.6 yrs

x.x

+3.2%CAGR +15.9%

1 2017-2019 based on EPRA vacancy rate; 2016 vacancy rate based on sqm

EPRA Vacancy rateIn %

INSTITUTIONAL BUSINESS SEGMENT

8

Individual Investment Strategies with Strong Focus on Offices and Core/Core plus Risk Profile

Investment Partners**

Our Institutional Business segment is managed by our subsidiary GEG, which had Assets under Management totalling EUR 6.5 billion as of 31 March 2020

Office properties representing more than 88% of current annualised rental income

More than 90% of AuM with risk profile Core/Core plus

Tailored investment strategies across the yield curve, incl.:

Repositioning of landmark assets with own development expertise

Assets with manage-to-core approach

38%

31%

19%

12%Family Offices

Savings banks,banks

Pension funds, Sovereign wealth funds

Types of useBasis: annualised rental income

*Percentages based on Assets under Management from 31 March 2020 of EUR 6.5 billion; “”Percentages based on committed equity

Deal Structures*

Insurance companies

45%

41%

14%

88%

7%

5%

Office

Retail

Other Commercial Use

Pool Funds

Club Deals

Individual Mandates

IMPLEMENTATION OF THE INVESTMENT STRATEGY

9

Typical Institutional Business Investment Case

Acquisition Execution of the respective, individual property strategy for the realisation of value enhancement potential

After repositioning, the now optimised properties are managed and a stable cash flow is ensured

Optionally, some of the stabilized properties can be sold and the capital released reinvested in the investment vehicle

Sales period begins after approx. 8-10 years

Reinvestment of proceeds into new investment vehicles

Holding or sale & reinvestment

Sale

Asset/property management/development fee

(recurring)

Promote/performance fee(one time, success based)

Exit fee(one time, not success based - recurring)

Acquisition and setup fee(one time, not success based - recurring)

Management fee elements

Acquisition financed with committed equity and bank financing at 45% LTV on purchase price

Occasionally warehousing of selected assets as an accelerator of funds

HIGHLY PROFITABLE INVESTMENT MANAGEMENT BUSINESS

10

0.81.1

1.5

3.9

5.7

2015 2016 2017 2018 2019

in EUR billion in EUR millionCAGR c.63.4%

96.6 99.4

129.9

155.6

130.7

2015 2016 2017 2018 2019

Sale of a co-investment

Institutional Business Volume (AuM) Market value of equity investments in Institutional Business

Steadily increasing income generation from Institutional Business, with strong visibility across different recurring income streams

Income from Institutional Business in EUR million

CAGR c. 52.4%

8.3

21.223.5

39.2

68.3

2.7 2.4 2.7 5.6 5.410.3 10.0

21.831.2

5.6

8.5 10.8

11.8

31.7

2015 2016 2017 2018 2019

Share of profit of associates without project developments and sales Transaction- and Performance Fees Asset-, Property Management and Development Fees

FINANCIAL STRUCTURE

11

No Material Expiries in 2020/2021

The weighted average term of loans and borrowings rose to 4.0 years (31 December 2019: 3.9 years).

The average interest rate of loans and borrowings stood at 2.1 % on 31 March 2020 (31.03.2019: 2.4 %) and slightly increased due to the repayment of commercial paper

The interest cover ratio (ICR, the ratio of EBITDA to net interest result) remained at the very high year-end level of 508 % (31 December 2019: 509 %)

The LTV ratio (adjusted for warehousing) fell by 280 bp to 45.0 %

Maturities in 2020/2021: EUR 103 million in 2020 for refinancing, EUR 72 million in 2021 for refinancing

Cash and cash equivalents as of 31 March 2020 at EUR 342 million

Maturities of loans and borrowings (Q1 2020)

LTV1

(%)Average interest rate2

(%)

3.7 3.7

2.6 2.52.0 2.1

2015 2016 2017 2018 2019 Q1 2020

-160bp-17.6 pp

62.6% 59.9% 57.0% 53.1%47.8% 45.0%

2015 2016 2017 2018 2019 Q1 2020

12

DIC’S MID-TERM GROWTH TARGETFurther Growth of Real Estate Platform in Germany

Further growth is planned in both segments Commercial Portfolio and Institutional Business –with a mid-term goal of Assets under Management of c. EUR 10 billion

Strategic mid-term target of maintaining a 50:50 FFO balance between the Commercial Portfolio and the institutional Business

Growth of Assets under Management and FFO

13

Gross Rental IncomeIncreases by 6% to EUR 26.0 million

EPRA-NAVof EUR 17.33 per share as at 31 March 2020; incl. full value of Institutional Business EUR 21.91 (Adjusted NAV per share)

Real EstateManagement Feesmore than doubledto EUR 20.4 million

Loan-to-valueat a very low level of 45.0%

FFOup 55% to EUR 26.4 millionwith 50:50 split betweenboth segments

Like-for-like Growthof the annualised rentalincome of the total platformof 6.0%

AuM of

EUR 8.4billion

HIGHLIGHTS Q1 2020

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE Q1 2020

14

Remaining Lease Expiry Volume in 2020 at only 2.4 %

Letting structurein sqm

Lease maturityAnnualised rental income in %

Letting structureAnnualised rental income in EUR million

Top lettings

Letting performance in the first three months amounted to 37,100 sqm, of which 66 % (24,600 sqm) was attributable to lease renewals and 34 % (12,500 sqm) to new leases

The biggest contract was a large-volume lease renewal for 11,300 sqmsigned with the Free and Hanseatic City of Hamburg

Our letting teams were able to secure agreements with annualised rental income of EUR 5.0 million:

EUR 2.9 million (58 %) for the Commercial Portfolio

EUR 2.1 million (42 %) for the Institutional Business

2020 lease expiry volume remaining was thereby reduced to 2.4 %. A total of 71 % of leases expire in 2024 or later

15

FORECASTForecast Update 2020

16

DIC ASSET AG AT A GLANCE

APPENDIX

17

CAPITAL INCREASE IN JANUARY 2020 Successful 9.49 % Capital Increase from Authorized Capital for Further Growth

All percentages in shareholder structure as of the day of the last voting rights announcement

Increase of share capital by 9.49% by issuing 6,857,774 new shares; statutory subscription rights of shareholders were excluded

New shares with the same rights as the existing shares (qualified for dividend for fiscal year 2019)

Placed at EUR 16.00 per share

Gross proceeds of approx. EUR 110 million available for further growth, especially purchases for the Commercial Portfolio

New number of total shares: 79,071,549 (since 21 January 2020)

Trading of new shares in regulated market (Prime Standard) since 24 January 2020

Shareholder Structure after Capital Increase

18

Stable and diversified income streams based on two solid revenue pillars, “Commercial Portfolio” and “Institutional Business”

Internal asset and property management and development platform with experts in seven regional offices creating added value

Solid and diversified financial structure

Highly attractive dividend stock, with long track record of competitive dividend yield

Dynamic local expertise in German real estate since 2002

Experienced management team

S-DAX listed player in the commercial real estate market in Germany, fully complying to highest market standards and regulations

DIC ASSET AG – KEY STRENGTHS

ORGANIZATIONAL STRUCTURE – FULLY INTEGRATED PLATFORM

19

Fully Integrated Platform with ~250 Highly Skilled Employees (as of 31 December 2019)

Investment

Acquisitions & Sales

Due Diligence

Business plan modelling

Legal structuring

Portfolio Management

Portfolio analysis

Portfolio strategy

Portfolio controlling

Investment Vehicles Management

Structuring new vehicles

Implementing investment structures

Distribution

Investor liaison

Real Estate Management

Property accounting

Quality control

Legal (rental contract law)

Letting

Business segments

DIC Asset AG

Management Board

S. Wärntges (CEO/CFO) J. von Mutius (CIO)

Group Management

Corporate Development & Strategy

Communication & Marketing

Investor Relations Finance, Accounting, Treasury & Controlling

Administration

Commercial Portfolio

(Balance sheet investments)

Institutional Business

(Managed accounts)

Asset & Property ManagementSeven own nationwide operating local offices with regional heads

External sources:

Facility Management

Berlin Düsseldorf Mannheim

Hamburg Frankfurt

Technical Property Management

Cologne

Munich

68

34

145

Employees:

Development

Planning of developments and refurbishments

Key contact to assign construction

P. Weiden (CCMO)

INTEGRATED PLATFORM WITH PROVEN TRACK RECORD

We provide Value across the Complete Real Estate Life Cycle for our Own Portfolio as well as for Investment Vehicles Investors

20201 Facility management by external parties; 2 Based on FY2019

Acquisition/Optimisation

Coordination of acquisition process by

investment team

On-going market screening

with access to off-market opportunities

Investments in Commercial Portfolio and

Institutional Business enable DIC to

acquire in a large range of individual

asset sizes (EUR 20-500 million)

Selected sales

Asset and Property Management

Portfolio Management

Asset Management

Local property and facility management1

Refurbishing/capex planning

Contract with tenants

Refurbishment and repositioning of

assets

Potential repositioning of assets,

executed by the development team,

ranging between EUR 30-250 million

Close coordination with letting team in

order to perfectly meet

tenant requirements after pre-letting

No greenfield developments

Commercial

Portfolio

Acquisitions 2019: value of EUR 300 million

Selected sales 2019: 11 properties with a value of EUR 154 million

Increasing rents (2.0% l-f-l rental growth)

EPRA vacancy reduction from 7.2% to 6.5% y-o-y in 2019

Value creation

Example Wilhelminenhaus Darmstadt:

property value uplift from EUR 60.5

million to EUR 123.5 million

Asset Management fees of

EUR 11.9 million2

Property Management fees of

EUR 4.6 million2

Significant growth through GEG

Redevelopment of landmark assets

Development fees of EUR 14.5 million2

Acquisitions 2019: 16 properties for EUR 1.66 billion

Selected sales 2019: 4 properties with a value of EUR 132 million

Setup fees of EUR 7.8 million2

Performance fees of EUR 13.7 million2

Institutional

Business

OUR “DYNAMIC PERFORMANCE” APPROACH TO BUSINESS

2121

Creativity Speed Trust

A large real estate player adapting

to markets and being creative in all

aspects concerning the property

Speed in the transactions as well as

our internal processes

Trust in all we do and with all

business partners and stakeholders

Examples

Strong corporate finance

know-how

Structuring investment vehicles

Warehousing

Business model

Financing sources

Use/redevelopment of real

estate/buildings

Re-letting alternatives/scenarios

ESG topics: Redevelopment vs.

new construction, protecting

inner city centres

Examples

Fast accounting/reporting season

allowing to focus on business

Speed in acquisitions to secure

properties in competitive markets

Low hierarchies – fast decision

making

Entrepreneurial spirit throughout

organization

Examples

Retaining capital providers and increasing

investment volumes of existing investors

in the Institutional Business (58%)

Anchor shareholders invested in the

company since IPO

Consistent outperformance of

operational and financial targets

Good and significant relationships with all

German financing institutions

Established player in the capital markets,

first bond in 2011

Trust of employer and trust of

employees in the company and the

platform

OUR FULLY INTEGRATED SERVICE MODEL

22

In-house Competence for Provision of Full Suite of Value-adding Services

Acquisition Value enhancement & preservation Exit

Corporate Functions

Investment FinancingPortfolio/Fund

ManagementAsset

ManagementProperty

ManagementInvestment

Management

Deal sourcing & structuring

Due diligence

Off-market deals and bidding procedures

Contract negotiation

Closure

Review of financing structures

Bank selection, tendering, benchmarking

Contract negotiation & closure

Fulfilment of the pay-out condition

Administration & reporting

Portfolio management

Structuring of investment vehicles

Investor reporting

Performance analysis

Risk & compliance

Property strategies

Business plans

Representation of the owner’s interests

Increase in rental income

Optimization of running costs

Refurbishments

Control of property management

Condition control of the property

Inspections of technical installations

Repairs

Object accounting & service charge settlement

Contract negotiation

Closure

Development

Development and refurbishment know-how

SUPERIOR PLATFORM TRACK RECORD THROUGH THE CYCLE

23

Strong Letting Performance and Centrally Controlled Property Repositioning

Our internal asset and property management team is present at seven locations in Germany with c. 150 real estate specialists

In 2019, letting services with a volume of 211.3 thousand sqm (EUR 32.7 million) were realised, of which 97.8 thousand sqm relates to the Institutional Business (EUR 18.4 million).

Implementation of property repositioningscontrolled centrally from Frankfurt (own team including architects and engineers):

Modernisation or conversion of existing properties

Upside potential via refurbishments and repositioning of existing properties

Complete range of services for all planning and implementation phases in-house

Letting Performance

in T sqm

in EUR million

Expiring rental contracts (in sqm)

188.3 232.1 143.2 145.5196.8 181.2

Commercial Portfolio

Institutional Business

Total (2014-2015)

ASSET- AND PROPERTY MANAGEMENT PERFORMANCE (1/3)

24

Assets under Management rose to EUR 8.4 billion

Assets under management rose by 50 % year-on-year to EUR 8.4 billion, distributed across 186 properties with rental space of around 2.2 million sqm

As of 31 March 2020, the Commercial Portfolio (CP) comprised 92 properties with a market value of approx. EUR 1.9 billion. Optimising the portfolio by selling non-strategic properties and acquiring attractive properties led to an increase in the average property size to EUR 20.5 million (31 March 2019: EUR 17 million)

Assets under management in the Institutional Business as of 31 March 2020 increased to approx. EUR 6.5 billion

Assets under Managementin EUR billion

Types of useBasis: annualised rental income

Portfolio by segment


25

After implementing the Infinity Office Project Development: Successful Placement as Club Deal

The transaction volume YTD amounts to EUR 327 million

On the purchasing side, one property in Wiesbaden with a volume of EUR 133 million (TIC) was acquired for the GEG Public Infrastructure I fund in the Institutional Business

In Q1 2020, possession, benefits and associated risks were transferred for five properties with a total volume of EUR 772 million, which were acquired in 2018 and 2019, incl. the "Stadthaus" in Cologne with EUR 527 million and the Infinity Office project development in Düsseldorf (EUR 164 million), which was acquired in 2018 under a forward deal and sold after completion as a club deal

On the sales side, the sale of three properties from the Commercial Portfolio and the Institutional Business with a total value of around EUR 194 million has been notarised to date this year; possession, benefits and associated risks are expected to be transferred during 2020

Transactions in 2020


26

Active Management: Refurbishment, Repositioning and Sale of the Frankfurter Strasse Property in Wiesbaden

COMMERCIAL PORTFOLIO SEGMENT

27

Increase in Portfolio Quality

As of 31 March 2010, the Commercial Portfolio comprised 92 properties with a market value of approx. EUR 1.9 billion and rental space of 837,500 sqm (31 March 2019: EUR 1.7 billion, 100 properties)

At 8.4%, the EPRA vacancy rate remained at the previous year's level in the first quarter (31 March 2019: 8.4%) due to seasonal effects and regular lease expiries

Average rent per sqm increased by 8% to EUR 10.39

Annualised rental income rose to EUR 98.8 million (Q1 2019: EUR 98.3 million) due to lettings and acquisitions, while like-for-like rental income grew by 0.8 % to EUR 89.0 million

WALT increased significantly year-on-year from 5.8 years to 6.2 years

Like-for-like rental incomein EUR million

Average rentin EUR/sqm

Development of Commercial Portfolio

WALTIn years

INSTITUTIONAL BUSINESS SEGMENT

28

Real Estate Management Fees more than doubled

At EUR 20.4 million, real estate management fees from the Institutional Business more than doubled year-on-year, with both recurring and transaction-related management fees showing a significant increase (Q1 2019: EUR 9.2 million), driven, among others, by ongoing management of properties newly acquired in 2019, such as the Stadhaus in Cologne, the Eurotheum in Frankfurt, the Pressehaus in Berlin and the Helio in Augsburg

Transaction and performance fees, i.e. fees for acquisitions and disposals and the setup of investment products as well as for exceeding defined IRR hurdles, significantly increased year-on-year to EUR 13.6 million (Q1 2019: EUR 5.7 million), thereof EUR 8.4 million from acquisitions and EUR 5.2 million from sales

Fees for asset and property management and development were increased to EUR 6.8 million (Q1 2019: EUR 3.5 million) due to the successful growth of assets under management and extensive property acquisitions

In addition to management fees, we also generate share of the profit of associates from our equity investments in investment products in the Institutional Business. These amounted to EUR 2.7 million in the first quarter (Q1 2019: EUR 2.4 million

Management feesin EUR million

Share of theprofit of associatesin EUR million

Assets under Managementin EUR billion

29

Club dealsPool funds Separate accounts

Investments for institutional

investment partners in real estate

in Germany's top 10 markets for

commercial real estate, either in

single-asset or portfolio

transactions

GEG secures property(ies) in

order to mitigate the transaction

uncertainty; the investment

partners then join

Joint investments with investment

partners, co-investment by DIC

Pool funds specialized in regions

or asset classes with a proven

track record

Funds legally structured as special

funds under the German or

Luxembourg regime

Joint investments with investment

partners, co-investment by DIC

Strong individual property size

Typically a portfolio of 7-8

properties acquired over time

We initiate joint investment

strategies for selected

investment partners within the

framework of individual

mandates

The investment strategies may

not interfere with the existing

pool funds and club deals

Individual property sizes

Typically 2-3 properties with 2-3

institutional investors

Individual property EUR 20-60 million

Typically a portfolio of 7-8 properties

acquired over time

Individual property sizes

Typically individual property; no

portfolio investments

EUR 0.9 billion

EUR 2.9 billion

EUR 2.7 billion

=AuM (31.03.2020)

DEAL STRUCTURES TAILORED TO INVESTOR NEEDS

30

DIC office location

Asset location

Munich, Junges

Quartier Obersendling:Type: Infrastructure

fund

Dusseldorf,

CABO:Type: Manage-

to-core (value)

Stadthaus,

Cologne:Type: Club

deal

Dortmund

HCC:Type: Manage-

to-core (value)

Frankfurt,

IBC Campus:Type: Club

deal

Hamburg,

Opera Offices:Type: Fee

development

(f inished)

Berlin,

Pressehaus Alexanderplatz:

Type: Individual

mandate

Frankfurt, Japan

Center:Type: Individual mandate

Neuss, Police

Training Center:Type: Infrastructure fund

Dusseldorf,

Business Campus am Park:Type: Club deal

Cologne, Triforum:Type: Club deal

Mainz, DB

Cargo-Headquarter:Type: Infrastructure

Frankfurt,

WINX:Type: Fee

development

Munich,

Sapporo-bogen:Type: Club deal

Munich, Pasing

Central:Type: Opportunistic

Frankfurt,

Garden Tower:Type: Individual

mandate

Frankfurt,

RIVERPARKTower & Suites:

Type: Individual mandate

(under refurbishment)

Frankfurt, Global

Tower:Type: Individual mandate

(under refurbishment)

Frankfurt,

Schillerportal:Type: Individual

mandate

Frankfurt,

Villa Kennedy:Type: Individual

mandate

Frankfurt,

Eurotheum:Type: Individual

mandate

Munich

Frankfurt

Dusseldorf

Hamburg

Berlin

Cologne

Strong Focus on CORE Assets in Top 7 Locations

PORTFOLIO SPOTLIGHT

RECURRING FEE INCOME FROM INSTITUTIONAL BUSINESS

31

Types of fees

Asset / property

management

Development

Sales fees

Promote

Performance fees

Warehousing income

Set up fees for new investment vehicles

Recurring fee income recognised as

percentage of AuM

Repositioning of office and retail projects

recognized as percentage of construction cost

Recognition of fee income

Transaction fee income recognised as

percentage of transaction volume

Income recognized upon successful exit of

sale of the properties

Fee payable when return hurdles of

investment vehicle are met or exceeded

Asset / property management / development

Classification

Transaction

Transaction

Performance

Re

al E

sta

te in

ve

stm

en

t li

fecy

cle

Investment/

property management

Exit/

Realisation

Sourcing/

acquisition

One-time (success based)Recurring (not success based)

Setup1

Asset / property

management

Development

Sales fees

Source: Company information

1 Setup fee for new investment vehicles where DIC secure 1-2 properties as start assets for the investment vehicle

Transaction fee income recognised as

percentage of transaction volumeAcquisition

EQUITY RETURNS– DIC PARTICIPATES ALONGSIDE OTHER INVESTORS IN CERTAIN INVESTMENT VEHICLES (ESPECIALLY POOL FUNDS)

32

Equity returnfrom co-investments

Equity return

Return upside

Regular equity return from own investment

in DIC investment vehicles (fixed return

levels)

Gain in value of equity stake in investment

vehicle following positive performance

Recognition of equity return

Equity return

Classification

Dividend

One-time (success based)Recurring (not success based)

Equity return

INCOME STATEMENT Q1 2020

33

Strong Rise in Income from Institutional Business lifts Profit for the Period

Our successful asset and property management platform was able to grow our like-for-like rents by 0.8% based on rent increases and new leases. In addition, the acquisitions made in the previous year also helped us to increase our gross rental income by 6% year-on-year to EUR 26.0 million (Q1 2019: EUR 24.5 million)

Following the expansion of our Institutional Business segment last year, we more than doubled real estate management fees year-on-year to EUR 20.4 million in the first quarter of 2020 (Q1 2019: EUR 9.2 million). Both asset and property management and development fees (EUR 6.8 million, +94 %) as well as transaction and performance fees (EUR 13.6 million, +138 %) rose significantly. One of the factors contributing to this increase was the Frankfurter Strasse property in Wiesbaden, which was sold in Q1 following successful repositioning

Triggered by the acquisition-based growth of the Institutional Business segment in June 2019, operating expenses rose by 64 % year-on-year to EUR 12.1 million (Q1 2019: EUR 7.4 million)

The improved net interest result reflects the effects of repaying the bond carrying interest of 4.625% p.a. in the amount of EUR 175 million in Q3 2019 and issuing promissory notes totalling EUR 180 million at an average coupon of 1.55 % p.a. at the end of last year. Overall, the net interest result improved to EUR -7.1 million year-on-year (Q1 2019: EUR -8.6 million)

Profit for the period rose by a significant 75 % to EUR 16.1 million (Q1 2019: EUR 9.2 million), mainly due to the increase in real estate management fees

1

2

3

4

5

Our dynamic performance attitude is also reflected in the balance sheet at the end of the first quarter of 2020. We were one of the first companies in Germany this year to use an accelerated bookbuilding in order to increase our equity by 10 %. We placed a total of 6,857,774 new shares at an issue price of 16 euros, which was marginally below the stock market price. This generated gross issue proceeds of around EUR 110 million, which strengthened our equity base

The reported equity ratio rose from 36.5 % to 38.7 %.

In late February, the Infinity Office project development in Düsseldorf, which we secured in 2018 via a forward deal and monitored until completion over the construction period, was added. After the completion and letting of the Infinity Office we have structured a club deal for two renowned institutional investors in the second quarter 2020 and hence manage the property in the Institutional Business segment. As of the 31 March 2020 balance sheet date, we show the property under current assets as “non-current assets held for sale” and the corresponding liabilities as "liabilities related to non-current assets held for sale“

Overall, total assets thus increased by EUR 141.1 million compared with the end of 2019

3

5

4

2

1

BALANCE SHEET PER 31.03.2020

34

Capital Increase strengthens Equity Base

1

2

3

4

5

6

SEGMENT REPORTING Q1 2020

35

Institutional Business delivering Consistently Growing FFO Contribution

The Commercial Portfolio’s contribution of EUR 13.2 million was up 15% year-on-year, due to higher net rental income triggered by like-for-like growth of 0.8% and acquisitions made in the previous year. The 6 % improvement in the net interest result also contributed to the significant increase in FFO

The contribution to earnings made by the Institutional Business in the first quarter also reflects the acquisition-based growth of the management platform, which was not included in the prior-year period. As a result, real estate management fees more than doubled to EUR 20.4 million. The acquisition-based growth of the Institutional Business segment also increased operating expenses to EUR 8.6 million. Overall, the segment generated FFO of EUR 13.2 million

Segment reporting

ADJUSTED NET ASSET VALUE PER 31.03.20

36

Reconciliation of EPRA-NAV to Adjusted NAV including Institutional Business Value

EPRA-NAV

The EPRA-NAV as of 31 March 2020 amounts to EUR 1,370 million, up 10 % compared to the 2019 year-end figure of EUR 1,244 million due to the capital increase implemented at the beginning of the year

The adjusted NAV includes the value of our Institutional Business segment in the amount of EUR 557 million calculated and reviewed on the basis of a DCF method

Goodwill, intangible assets, other assets and liabilities of around EUR 194 million were already recognized in the EPRA-NAV

As of 31 March 2020 the adjusted NAV amounted to EUR 1,733 million. After taking into account the dilutive effect of the January 2020 capital increase on the Institutional Business adjustments in the amount of EUR 0.44 per share, the adjusted NAV is EUR 21.91 per share

LOAN-TO-VALUE CALCULATION PER 31.03.20

37

Book value of investment properties (Commercial Property segment)

Fair value of investment properties based on an audited valuation1

Fair value of equity investments (indirect property) including equity interest in associates and other investments

Goodwill related to acquisition of GEG

Service agreements are intangible assets recognised as within the scope of the purchase price allocation following the acquisition of GEG

Carrying amount of receivables from related parties

MainTor

RETT Blocker Unite Portfolio

Other

Fair value of Institutional Business based on audited valuation

1

2

5

1 The fair values calculated (net value after deducting transaction costs) are based entirely on the findings of the independent valuers contracted for this purpose, Cushman & Wakefield, Jones Lang LaSalle and ENA Experts, who have undertaken a valuation in accordance with internationally recognised standards; 2 LTV excl. warehousing

6

Adjusted fair value sums up to EUR 2.7 billion, accounting for fair value of Commercial Portfolio and Institutional Business segment

LTV (31.03.2020) of 45.0%2, reduced by 280 basis points compared to year-end 2019 after capital increase in January 2020

Adjusted LTV (2019) of 39.4%2 including fair value of Institutional Business segments

Loan to value (LTV)in EURm 31.03.2020

AssetsBook value of investment properties 1,614.6Fair value adjustment 278.3Fair value of investment properties, total1 1,892.9Fair value of equity investments (indirect property) 119.3Goodwill 177.9Service agreements 39.4Carrying amount of receivables from third parties 133.1

Fair value of assets (value) 2,362.6Deduct goodwill (177.9)Deduct service agreements (39.4)Add fair value of Institutional Business 557.0

Adjusted fair value of assets (value) 2,702.3

LiabilitiesNon-current liabilities to banks 967.0Current liabilities to banks 179.5Related party liabilities 16.8Corporate bond 325.3Less cash and cash equivalents -424.6Net liabilities (loan) 1,064.0

LTV2 (=C/A) 45.0%Adjusted LTV2 (=C/B) 39.4%

1

4

2

5

4

7

3

6

A

B

C

3

7

TOP 20 ASSETS IN COMMERCIAL PORTFOLIO*

38

As at 31.03.2020, by Market Value

* Top 20 list without non-strategic properties and properties earmarked for future development activities; ** Undisclosed information for reasons of competition

Location Address

Rental space(thsd. sqm)

EPRAvacancy

rate

Annualisedrental income(EUR million)

Market value(EUR million)

WALT (years)

1 Berlin Taubenstr. 7–9 10.1 0.0% 4.3 120.5 4.8

2 Darmstadt Wilhelminenstr. 1–3 25,7 0.0% 4.5 109.0 16.9

3 Düsseldorf Werdener Str. 4 29,4 4.2% 6.2 107.0 5.7

4 Halle Neustädter Passage 17 a–d 30.7 0.0% 4.3 70.6 4.8

5 Frankfurt Insterburger Str. 7 14.3 7.5% 5.5 68.3 2.2

6 Hamburg Marckmannstr. 129a–e 23.4 0.0% ** 60.4 **

7 Duisburg Steinsche Gasse 26 12.6 0.0% 2.2 58.1 17.0

8 Leverkusen Horst-Henning-Platz 1 13.4 0.0% ** 56.7 **

9 Chemnitz Am Rathaus 1 26.9 0.0% ** 56.7 **

10 Frankfurt Kaiserstr. 62–64 9.6 0.0% 2.1 56.5 12.1

11 Berlin-Mahlsdorf Landsberger Str. 225–241, 245–249, 252–255, 261–262 40.1 3.9% 2.9 56.1 3.9

12 Frankfurt Königsberger Str. 29 12.7 0.0% 2.4 50.8 8.7

13 Wiesbaden Gustav-Stresemann-Ring 12–16 26.1 8.7% 3.3 46.2 3.3

14 Karlsruhe Bahnhofplatz 12 11.0 0.0% 1.9 45.0 9.9

15 Hamburg Kurt-Schumacher-Allee 2–6 13.1 0.0% 1.6 41.2 6.7

16 Cologne Mathias-Brüggen-Str. 124–170 28.2 5.3% 2.1 40.5 3.7

17 Kronberg Westerbachstr. 28–32 12.8 0.0% 2.0 34.5 4.4

18 Offenbach Berliner Str. 60 12.8 0.0% ** 33.7 **

19 Cologne Agrippinawerft 22+24 8.4 0.1% 1.7 33.0 2.6

20 Mannheim Coblitzallee 1–7 17.9 0.0% 2.2 32.7 3.0

Top 20 properties 378.9 1.9% 58.6 1,177.5 7.7

Other properties 458.6 16.2% 40.2 715.4 4.1

Total 837.5 8.4% 98.8 1,892.9 6.2

Renewal with state of Hesse (19y)

Capex & TI EUR 31.9m

Energy savings of 40%

– Large photovoltaic system on the roof

– Better thermal insulation

– New windows

– New solar shadings system

Handicap – accessibility improved

39

Before modernization KPIs (30.11.2017)

Market value (EUR m) 60.5

WALT (years) 3.3

Vacancy (%) 0.0%

Ann. rental income (EUR m) 4.3

Yield 7.1%

Improved KPIs (30.04.2020)


Value creation (EUR m) 13.6

WALT (years) 16.8

Vacancy (%) 0.0%


Yield 4.2%

“Lighthouse” Frankfurt

“Wilhelminenhaus” Darmstadt

Before modernization KPIs (31.12.2017)


WALT (years) 3.4

Vacancy (%) 78.5%


Yield 2.1%

Former Deutsche Boerse headquarters

transformed to multi-tenant use

15-years lease with BG BAV (Public tenant) for

50% of spaces, other 50% for tenant mix

Capex & TI of EUR 7.2m

Improved KPIs (31.12.2019)


Value creation (EUR m) 10.1

WALT (years) 8.9

Vacancy (%) 0.5%


Yield 4.7%

Complete renovation, energy modernisation and structural

alterations for handicap accessibility

Energy savings of around 40 %

Transformational project

Repositioning the asset after former tenant had left

Steady decrease of vacancy from

~80% to 0% in 2 years

REAL ESTATE PLATFORM: CASE STUDIES (COMMERCIAL PORTFOLIO)Transformational refurbishments and repositioning in Darmstadt and Frankfurt

40

97%Units pre-let

prior to construction

start

Rental incomein EUR m p.a.

Vacancy ratein %

WALTyears

Market valuein EUR m

Status Quo Pre-Refurbishment

Small-scale retail business (49 stores located in the arcade)

Short lease terms, and therefore high rate of tenant fluctuation

Increased capex requirements due to the age of the building, raised in the 1950s-1960s

Management Approach

Restructuring and redesigning the retail units/arcade, straightening the arcade passage

Merging same rental units

Modernising the lightning concept, facade and shop frontage

Total Capex & TI of EUR 25.5m

43,9%

1,6%

Prerefurbishment

2019

0,8

2,1

Prerefurbishment

2019

>100% (42.3)pp

1,9

12,4

Prerefurbishment

Current

+10.5

16,2

56,5

Prerefurbishment

2019

x3.5

REAL ESTATE PLATFORM: CASE STUDIES (COMMERCIAL PORTFOLIO)Restructuring of KAISERPASSAGE, Frankfurt Property

0% 0%

Pre repositioning 2020

41

WALTyears

0,0

10,0


+10.0

Repositioning of 25,000 sqm property after previous anchor tenant AXA moved out

Successful letting to single public-sector in its entirety with lease until 2030

Restructuring work completed on time and new tenant Federal Criminal Police Office

(BKA) will move in end of Q1 2020

Total Capex & TI of EUR 29.5m

Overview of “BKA Wiesbaden” repositioning / refurbishment

Rental incomein EUR m p.a.

3,4

6,1


>80%

Vacancy ratein %

66,5

123,5


x1.9

REAL ESTATE PLATFORM: CASE STUDIES (INSTITUTIONAL BUSINESS)Office Balance fund series – BKA Wiesbaden

42

SUSTAINABILITY STANDARDS

Green building principles

Environment

Energy and cost-effective management of our real

estate

Long-term approach to upgrades of existing buildings

and to project developments

Optimisation and reduction of CO₂ emissions and

resource consumption

Society

Developing a positive corporate culture along with a

safe and pleasant working environment

Cultivating long-term partnerships

Handling historically evolved neighbourhoods

respectfully

Sponsoring charitable and social commitments to

promote the common good

Economy

Investments in sustainable value-added through

acquisitions and redevelopments of existing buildings

Stable long-term cashflows on the basis of an optimised

diversified real estate portfolio

Balanced financial structure with a long-term horizon

ESG Milestones and future targets

We have a proactive and long term approach to environmental sustainability, aiming to

reduce CO₂ emissions and minimize resource and costs of consumption

1 Overview of reporting activities Regular sustainability report since 2011

GRI standards and EPRA SBPR reporting standards for increased transparency

and international comparability

Regular response to carbon disclosure project

DVFA governance score in lower MDAX range

2 Highlights Accelerated reporting processes relative to wider peer universe

Smart-meter roll-out for additional improvements in data collection and analysis

Energy supply contracts re-tendered for gradual conversion of Commercial

Portfolio to 100% green electricity

Implementation of stakeholder approach and calculation of economic value

generated and distributed according to GRI

IBC Campus ( Frankfurt) Frankfurt obtained LEED-Gold

score in 2019

Global Tower

(Frankfurt)

DIC targets the highest

certification (DGNB

Platin) at completion for

all properties in

development (e.g.,

GLOBAL TOWER

Frankfurt)

Proactive approach to ESG showcased by reporting on sustainability matters for close to 10 years

Integration of ESG principles into normal course of business with sustainability focused re-development projects

CONTACT / FINANCIAL CALENDAR

43

Head of Investor Relations &

Corporate Communications

phone: +49 69 94 54 858-1492

fax: +49 69 94 54 858-9399

e-mail: [email protected]

Investor Relations Manager

phone: +49 69 94 54 858-1465

fax: +49 69 94 54 858-9399

e-mail: [email protected]

29.07.20 Publication Half-Year Report 2020

18./19.08.20 BHL German Conference 2020, Baden-Baden

10.09.20 SRC Forum Financials & Real Estate 2020, Frankfurt

22.09.20 Berenberg/Goldman Sachs

German Corporate Conference, Munich

23.09.20 Baader Investment Conference, Munich

01.10.20 Commerzbank German Real Estate Forum, London

28.10.20 Publication Quarterly Statement Q3 2020

11/20 Deutsches Eigenkapitalforum, Frankfurt

11/20 DZ Bank Equity Conference 2020, Frankfurt

DISCLAIMER

44

This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to any securities. In case of an offer of securities the information legally required to be provided to investors will be contained only in a securities prospectus as approved by the competent authority. The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) and must not be distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended ("Securities Act")) or publications with a general circulation in the United States of America. This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to any securities in the United States of America. None of the securities of DIC Asset AG have been registered under the Securities Act and may not be offered or sold in the United States of America absent registration or an exemption from registration under the Securities Act.

This publication is only addressed to and directed at persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC as amended) ("Qualified Investors"). In addition, in the United Kingdom, this publication is being distributed only to, and is directed only at, Qualified Investors who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) are high net worth entities falling within Articles 49(a) to (d) of the Order, or (iii) other persons to whom it may otherwise lawfully be communicated. This presentation should not be regarded by the recipient as a substitute for the exercise of its own judgment. Nothing contained herein is, or shall be relied upon as, a promise or representation as to the past or future. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained in this presentation. Neither DIC Asset AG nor any of its advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this presentation.

This presentation speaks as at the date hereof (unless an earlier date is otherwise indicated in the presentation) and in giving this presentation, no obligation is undertaken and nor is any representation or undertaking given by any person to provide the recipient with additional information or to update, revise or reaffirm the information contained in this presentation or to correct any inaccuracies therein which may become apparent. This presentation may contain certain forward-looking statements, forecasts, estimates, strategic targets, projections and opinions ("Forward Statements"). No representation is made or will be made that any Forward Statements will be achieved or will prove to be correct. Actual future results and operations could vary materially from the Forward Statements. Similarly no representation is given that the assumptions disclosed in this presentation upon which Forward Statements may be based are reasonable.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION, DATA, VIEWS AND FORWARD-LOOKING STATEMENTS CONTAINED IN THIS COMPANY PRESENTATION ARE BASED ON INFORMATION, DATA AND FORECASTS AVAILABLE TO THE COMPANY AT THE TIME OF THE PUBLICATION OF THIS COMPANY PRESENTATION. THE COMPANY IS NOT OBLIGED TO UPDATE THIS COMPANY PRESENTATION UNDER RELEVANT LAWS AND THEREFORE WILL NOT UPDATE THIS COMPANY PRESENTATION WHATSOEVER. ALL INFORMATION AND DATA CONTAINED IN THIS COMPANY PRESENTATION ARE BASED ON INFORMATION AND DATA, WHICH WAS PREVIOUSLY PUBLISHED BY THE COMPANY IN CONNECTION WITH ITS CONTINUOUS REPORTING OBLIGATIONS UNDER RELEVANT FINANCIAL OR SECURITIES LAWS.

Company presentation as of June 2020

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