Q1 2020
FINANCIAL RESULTS
PRESENTATION
MAY 2020
Berlin
TABLE OF CONTENTS
HIGHLIGHTS
FINANCIAL RESULTS
OPERATIONS AND PORTFOLIO
APPENDIX
2
Berlin
HIGHLIGHTS
Insignificant impact from Covid-19 on Q1 operational results
MERGER WITH TLG CONCLUDED
REINFORCING THE DEFENSIVENESSOF THE BALANCE SHEET
HIGH LIQUIDITY AND UNENCUMBERED ASSETS
➢€3bncash and liquid assets, 9%of total assets (as of Mar 2020), providing solid financial strength, flexibility and firepower
➢€17bnof unencumbered investment properties (74%of rent) provide additional flexibility and liquidity potential
DEFENSIVE DEBT PROFILE
- Best-in-classdebt profile:
Longaverage debt maturity of 6.4 years
High ICR of4.7x
Lowcost of debt of 1.6%
74% unencumbered ratio (€17bn)
Highinteresting hedging ratio of 95%
Large headroomto covenants and financial policies
HEALTHY CAPITAL STRUCTURE | STRONG PORTFOLIO |
- Conservative financial structure maintained:LowLTV of 36%
Highequity ratio of 50%
Liquidity is 5times the debt maturing in the next 2 years Strong BBB+credit rating by S&P
- Merger with TLG significantly enhanced the scale and diversification.Focus on strong asset types: offices, logistics and residential make up 68%of the portfolio.
Focus on stable markets:87% of the asset value in strongest
European (AAA rated) economies: Germany & the Netherlands | |
High tenant diversificationwith long WALTs, no dependency on a | |
single tenant or industry | 3 |
Frankfurt
FINANCIAL RESULTS
4
Frankfurt
PROFIT AND LOSS
1-3/2020 | 1-3/2019 | ||
in € millions | |||
REVENUE | 277.7 | 207.5 | |
RECURRING LONG-TERM NET RENTAL INCOME | 233.4 | 175.5 | |
PROPERTY REVALUATIONS AND CAPITAL GAINS | 318.4 | 239.9 | |
Share in profit from investment in equity-accounted investees | 24.8 | 91.0 | |
Property operating expenses | (70.4) | (53.2) | |
EBITDA | 537.4 | 479.7 | |
Finance expenses, net | (45.5) | (33.7) | |
Other financial results | (86.1) | 48.8 | |
Current tax expenses | (24.4) | (12.5) | |
Deferred tax expenses | (134.7) | (44.9) | |
PROFIT FOR THE PERIOD | 245.7 | 436.9 | |
Basic earnings per share (in €) | 0.14 | 0.36 | |
Diluted earnings per share (in €) | 0.14 | 0.36 |
SOLID ORGANIC GROWTH FROM BOH EXTERNAL AND INTERNAL SOURCES
IN-PLACE | TOTAL | OCCUPANCY |
RENT | LIKE-FOR-LIKE | |
L-F-L | ||
L-F-L | ||
+3.7% | +0.5% | |
+3.2% | ||
Q1 2020 | Q1 2020 | Q1 2020 |
Net rental income, recurring long-term* (in €m)
CAGR
2017-Q1 2020
annualized | +13% | 1,052 | ||
+43% | 934 | |||
756 | ||||
614 | ||||
415 | ||||
2017 | 2018 | 2019 | Q1 2020 | Mar 2020 |
* Excluding net rent from assets held for sale | annualized | annualized | ||
Net profit (in €m)
1,828
1,709
1,539
437
246
2017 | 2018 | 2019 | Q1 2019 | Q1 2020 |
5
Frankfurt
ADJUSTED EBITDA
1-3/2020 | 1-3/2019 | ||
in € millions | |||
Operating profit | 536.4 | 479.2 | |
Total depreciation and amortization | 1.0 | 0.5 | |
EBITDA | 537.4 | 479.7 | |
Property revaluations, capital gains and other income | (318.4) | (239.9) | |
Share in profit from investment in equity-accounted investees | (24.8) | (91.0) | |
One-off expenses related to TLG merger | 2.8 | - | |
Other adjustments | (0.5) | (0.7) | |
ADJUSTED EBITDA COMMERCIAL PORTFOLIO, | |||
196.5 | 148.1 | ||
RECURRING LONG TERM | |||
Adjustment for GCP's and other investments' adjusted EBITDA | 40.7 | 31.5 | |
contribution | |||
ADJUSTED EBITDA | 237.2 | 179.6 | |
ADJUSTED EBITDA (in €m)
CAGR +42%
949
773
606
429
2017 | 2018 | 2019 | Q1 2020 annualized |
Subtracted as these profits include AT's share in non- operational profits generated by the equity accounted investees
Mainly related to adjusted EBITDA of the properties marked for disposal to reflect the long-term recurring Adjusted EBITDA of the commercial portfolio
Due to the nature of its strategic investment in GCP and in other investments, AT includes in its adjusted EBITDA calculation its share in the adjusted EBITDA generated by those investments for the period in accordance with its holding rate over the period.
6
Frankfurt
FFO I & FFO II
1-3/2020 | 1-3/2019 | ||
in € millions | |||
ADJUSTED EBITDA COMMERCIAL PORTFOLIO, | 196.5 | 148.1 | |
RECURRING LONG TERM | |||
Finance expenses, net | (45.5) | (33.7) | |
Current tax expenses | (24.4) | (12.5) | |
Contribution to minorities | (8.3) | (3.9) | |
Other adjustments | 0.8 | 1.0 | |
FFO I COMMERCIAL PORTFOLIO, RECURRING LONG TERM | 119.1 | 99.0 | |
Adjustment for GCP's and other investments' FFO I contribution | 28.3 | 19.1 | |
FFO I | 147.4 | 118.1 | |
FFO I PER SHARE (IN €) | 0.114 | 0.105 | |
FFO I per share after perpetual notes attribution (in €) | 0.098 | 0.095 | |
Result from disposal of properties | 22.3 | 43.0 | |
FFO II | 169.7 | 161.1 | |
FFO I & FFO II (in €m)
FFO I
FFO II CAGR
FFO I +36%
814 | 22* | *Q1 results, | |
not annualized | |||
575 | 590 | 590 | |
503 |
406
293 339
2017 | 2018 | 2019 | Q1 2020 annualized |
FFO I per shareFFO I PER SHARE (in €)
FFO I per share after perpetual
CAGR | ||||
FFO I | 0.46 | |||
per share | 0.38 | 0.43 | ||
+12% | 0.39 | 0.39 | ||
0.36 | ||||
0.34 | ||||
0.32 | ||||
2017 | 2018 | 2019 | Q1 2020 |
annualized |
FFO I yield | €55m | 68% |
Q1 2020 | margin over | |
9.5%1) | ||
disposals | total costs | |
1) Based on a share price of €4.84
7
Frankfurt
TOTAL ASSETS
Total Assets (in €bn) | |
CAGR | |
+46% | 32.3 |
25.4 |
19.0
13.8
Dec 2017 | Dec 2018 | Dec 2019 | Mar 2020 |
Investment Property (in €bn)
CAGR | |
+47% | 23.2 |
18.1
14.2
9.8
Dec 2017 | Dec 2018 | Dec 2019 | Mar 2020 |
8
Frankfurt
EPRA NAV
Mar 2020 | Dec 2019 | ||||
in € millions | Per share | in € millions | Per share | ||
NAV PER THE FINANCIAL STATEMENTS | 16,248.0 | 13,378.9 | |||
Equity attributable to perpetual notes investors | (3,109.1) | (2,484.0) | |||
NAV EXCLUDING PERPETUAL NOTES | 13,138.9 | 10,894.9 | |||
Fair value of derivative financial instruments | 24.6 | (71.6) | |||
Deferred tax liabilities | 1,973.8 | 1,119.5 | |||
NAV | 15,137.3 | €11.0 | 11,942.8 | €9.8 | |
Non-controlling interests | (1,991.5) | (1,309.4) | |||
Adjustment for TLG (deducting goodwill and others)1) | (1,008.5) | - | |||
EPRA NAV | 12,137.3 | €8.8 | 10,633.4 | €8.7 | |
Equity attributable to perpetual notes investors | 3,109.1 | 2,484.0 | |||
EPRA NAV INCLUDING PERPETUAL NOTES | 15,246.4 | €11.0 | 13,117.4 | €10.7 | |
Number of shares (in millions)2) | |||||
1,380.5 | 1,224.9 |
- Deducting goodwill resulting from TLG combination and minority share in TLG's deferred tax liabilities and derivative financial instruments
- Excluding suspended voting rights and including the conversion impact of mandatory convertible notes, base for share KPI calculations
NAV | EPRA NAV | EPRA NAV | EPRA NNNAV | |
including | ||||
in € millions unless otherwise indicated | perpetual notes | |||
Mar 2020 | 15,137.3 | 12,137.3 | 15,246.4 | 11,886.5 |
Mar 2020 per share (in €) | 11.0 | 8.8 | 11.0 | 8.6 |
Per share growth | +12% | +1% | +3% | +4% |
Number of shares (in millions, Mar 2020) 1) | 1,380.5 | |||
Dec 2019 | 11,942.8 | 10,633.4 | 13,117.4 | 10,139.3 |
Dec 2019 per share (in €) | 9.8 | 8.7 | 10.7 | 8.3 |
1) Excluding suspended voting rights and including the conversion impact of mandatory convertible notes, base for share KPI calculations
EPRA NAV (in €m)
CAGR
EPRA NAV
incl. perpetual notes
+36% | 15,246 |
13,117 | |
12,137 |
10,290 10,633
8,742
7,656
6,483
Dec 2017 | Dec 2018 | Dec 2019 | Mar 2020 | ||
EPRA NAV | EPRA NAV incl. perpetual notes | ||||
CAGR | EPRA NAV per share (in €) | ||
EPRA NAV | |||
incl. perpetual notes | 11.0 | ||
+18% | 10.7 | ||
9.1 | 8.7 | 8.8 | |
7.6 7.7
6.5
Dec 2017 | Dec 2018 | Dec 2019 | Mar 2020 | |
EPRA NAV per share | EPRA NAV incl. perpetual notes per share | 9 | ||
Frankfurt
CONSERVATIVE CAPITAL STRUCTURE
DEBT MATURITY PROFILE | STRONG DEBT AND HEDGING PROFILE |
Millions
1200
Debt maturity | |||||||||||||||||||||||
1000 | |||||||||||||||||||||||
6.4 years average | |||||||||||||||||||||||
800 | maturity | ||||||||||||||||||||||
93% | 2% | ||||||||||||||||||||||
600 | Cost of debt | ||||||||||||||||||||||
5% | |||||||||||||||||||||||
400 | 1.6% Ø | ||||||||||||||||||||||
cost of debt | |||||||||||||||||||||||
200 | fixed, swapped | ||||||||||||||||||||||
cap | 95% | ||||||||||||||||||||||
0 | variable | ||||||||||||||||||||||
hedged | |||||||||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | >2034 | |||||||||
Straight bond | Bank debt | ||||||||||||||||||||||
LOAN-TO-VALUE | CONSISTENTLY STRONG ICR | FINANCING SOURCES MIX | UNENCUMBERED ASSETS | ||||||||
Company BOD limit of 45% | Straight bonds | in % by rent | by value | ||||||||
4.7 | 4.7 | Loans & | 37% | 39% | 36% | €16.6bn | |||||
€14.2bn | |||||||||||
borrowings | 81% | ||||||||||
Equity | 6% | 4% | 8% | 74% | |||||||
36% | 36% | 72% | €10.2bn | ||||||||
35% | |||||||||||
34% | |||||||||||
57% | 56% | ||||||||||
Mandatory | 58% | ||||||||||
Convertible Bonds |
Perpetual notes | |||||||
Dec 2017 | Dec 2018 | Dec 2019 | Mar 2020 | Q1 2019 | Q1 2020 | Dec 2018 Dec 2019 Mar 2020 | Dec 2018 Dec 2019 Mar 2020 |
Dec 2018 Dec 2019 Mar 2020
10
Frankfurt
AROUNDTOWN BOND COVENANTS
- Each of the bond covenants is met with a significant headroom. Internal financial policy is set at stricter levels
- ECB eligibility: Bonds issued under the EMTN Programme (Listed in the EU)*
- The bonds are unsecured and have the below covenant package:
Overview of Covenant Package
Covenant Type | EMTN programme covenants | Covenant level as of March 31, 2020 |
1 | Limitation on Debt | ✓ | ||
Total Debt / Total Assets | <=60%(1) | ✓33% | ||
2 | Limitation on Secured Debt | ✓ | ||
Secured Debt / Total Assets | <=45%(2) | ✓-4%(cash balance>secured debt balance) | ||
3 | Maintenance of Unencumbered Assets | ✓ | ||
Unencumbered Assets/Unsecured Debt | >= 125%(3) | ✓288% | ||
4 | Maintenance of Coverage Ratio | ✓ | ||
Adjusted EBITDA / Net Cash Interest | >=1.8x | ✓5.2x | ||
5 | Change of Control Protection | ✓ | ||
Notes: 1) | Total Net Debt / Total Net Assets |
- Secured Net Debt / Total Assets
- Net Unencumbered Assets / Net Unsecured Indebtedness
- Excluding the NOK & HKD issuances
11
Frankfurt
OPERATIONS AND
PORTFOLIO
12
Frankfurt
HIGHLY DIVERSIFIED OVERVIEW PROVIDES STABILITY
STRONG DIVERSIFICATION AMONG ASSET CLASSES WITH DIFFERENT FUNDAMENTAL DRIVERS
The largest type is office and together with Logistics/Wholesale and Residential, it makes up 68% of the Group portfolio
87% of the portfolio is located in the strongest economies in Europe: Germany and the Netherlands, both AAA rated Focus is on central locations of top tier cities. Top 3 cities are Berlin, Munich and Frankfurt
Within each asset class, the Group focuses on a very high tenant diversification with no tenant dependency
Long WALT of 8.1 years. Each location has different key demand
drivers - supporting industry diversification of tenants
13
Hamburg | * Including proportion in GCP and development rights & invest |
DEFENSIVE PORTFOLIO WITH STRONG TENANT STRUCTURE
LargeTenantBasewithover4,000tenants
- Collection rate in April 2020 excl. hotels 90%
➢Limited dependency on single tenants due to large tenant base of over 4,000 tenants, further supported by highly granular German residential market
- Top 10 tenants represent 20% of rent
➢Long lease terms
➢Portfolio WALT as of March 2020:
Logistics/ | ||||||||
Office | Hotel | Wholesale | Retail | Total | ||||
/Other | ||||||||
4.5 | 15.4 | 7.1 | 5.2 | 8.1 | ||||
The merger with TLG puts the combined company in a stronger landlord position in key cities such as Berlin and Frankfurt due to larger footprint
14
OFFICE PORTFOLIO
WELL LOCATED OFFICES IN TOP TIER CITIES MAINLY IN
GERMANY AND THE NETHERLANDS
Well-diversified with no dependency on a single location (Top 3 cities are Berlin, Frankfurt, Munich)
Strong tenant base with well-diversified industry sectors.
Top industries are Governmental, Insurance & Banking, IT,
Health Care, Energy, Infrastructure, Telecommunications,
Professional services etc.
Largest office tenant segment is public sector (22%)
Insignificant amount of coworking tenants (less than 1%)
Diverse tenant base with strong top tenants, such as
German and Dutch Government, Deutsche Bundesbank,
Siemens, Deutsche Bahn, Orange, Allianz etc.
Diversified lease structure with long WALT of 4.5 years
15
Cologne
OFFICE PORTFOLIO AND RESIDENTIAL PORTFOLIO
Hotel 23%
Logistics/
Wholesale Retail 9%
/Other 7%
OFFICE 49%
4.5y WALT
RESIDENTIAL 12%
9y average tenancy length
GERMANY & NL: Berlin (26%), Frankfurt (15%), Munich (14%)
Over 92% collection rate in April 2020 so far
High diversification of tenants and tenant industries
Limited amount of tenants with high sensitivity to the Covid-19
GERMANY: NRW (21%), Berlin (24%), Dresden/Leipzig/Halle (13%)
- and London (15%)
Over 95% collection rate in April 2020
German residential: the most resilient asset type in Europe
Insulated to current market disruption
Granular tenant base
16
Munich
RETAIL & LOGISTICS/WHOLESALE PROPERTIES
Residential
12%
Office 49%
Hotel 23%
RETAIL 9%
5y WALT
LOGISTICS/WHOLESALE 7%
7y WALT
80% collection rate in April 2020 so far
Majority of the portfolio is essential goods - Grocery-
anchored, pharmacies, drugstores, banks, DIY
Grocery-anchored at mainly long-leased retail boxes in locations with limited competition such as EDEKA, NETTO,
REWE, PENNY, LIDL and Kaufland
100% collection rate in April 2020 so far
Mainly last-mile properties, resilient during the current disruption
17
Berlin
HOTEL PORTFOLIO
WELL-DISTRIBUTED HOTEL PORTFOLIO ACROSS EUROPE WITH A FOCUS ON
THE 4 STAR CATEGORY
Hotel portfolio consisting of 23% of the total portfolio including 176 hotels well-distributed mainly in top tier cities in Europe
The rental agreements are double or triple net, fixed plus CPI linked and have no variable component in the lease. The lease agreements are fixed. Lease periods are long-term (up to 25 years). WALT of hotels is 15.4 years Lease agreements include set of strong securities, ranging from bank
guarantee, parent guarantee, pledge over bank accounts, pledge over FF&E,
and more
84% of the hotels are branded 4 star hotels, benefiting from the largest diverse market segment, including business and leisure
In case of longer term travel halt, option to convert hotels into micro apartments which have been resistant to the current environment
18
Berlin
HOTEL PORTFOLIO
Retail 9% Logistics/ | |
Residential | Wholesale |
/Other 7% | |
12% | |
Office 49%
HOTELS 23%
15y WALT
Focus on top tier
locations will
provide relatively
faster recovery
potential
GERMANY & UK & NL
176 Hotels
Fixed long term leases to >30 different third party hotel operators
Q1 results: Limited impact from Covid-19 on collection rate
Q2 : Challenging for the hotel industry due to lockdown and travel ban Discussions with tenants to assist them through challenging times Vast majority of rent has been deferred in April, delayed but not reduced. Interest on delayed amount is 5-8%
19
Berlin
HOTELS - CURRENT STAGE
HOTELS COUNTRY BREAKDOWN BY RENT
AND SHUTDOWN RESTRICTION LIFTED
CURRENT STAGE OF RE-OPENING
Did not close: 20 hotels (9% of rent)
Opened in May: 35 hotels (20% of rent)
Mostly opening | Germany 50% | Open by end of May | As of end of May: 75 hotels (50% of rent) | ||||||
by May-June | Currently announced hotel openings in June is 66% by rent. | ||||||||
others 7% | |||||||||
Potentially more re-openings in June | |||||||||
UK | Share of domestic travel | ||||||||
Domestic demand is largest in Germany (over 80%), UK | |||||||||
Partially to | 23% | in % of total travel | |||||||
(over 80%) and Netherlands (over 60%) providing | |||||||||
open in May | |||||||||
indication of fast recovery of hotel market when the | |||||||||
Remaining to | Netherlands | 85% | |||||||
France | Open since May 20th | 81% | shutdown in these countries is lifted | ||||||
open June-Aug | 3%Belgium | 11% | |||||||
6% | 61% | 58% | 57% | ||||||
Open since May/June | 53% | ||||||||
47% | |||||||||
Open by mid-July | 42% | ||||||||
31% |
Limburg (Belgium) | Source: OECD, last data available. Tourism Economics, STR | 20 |
TENANTS AND BRANDS
Hilton group | Marriott group | Wyndham Brands | ||
Radisson brands | IHG brand | Accor group | ||
Fixed of 10-25 years (WALT of 15 years) leases to over 30 different strong third party hotel operators, operating with high profitability for many years
No dependency on any single tenant.
Center Parcs (CP) is the largest tenant with 5% of the group's rental
income (19% of AT's hotel income).
AT's CP assets are opening May/June. These assets are expected to have a fast recovery. The catchement area of Benelux parcs is 21 million people and this segment is relatively resilient to the crisis and international travel ban
21
Frankfurt
AROUNDTOWN IS WELL-PREPARED FOR EVERY STEP OF THE CYCLE
STAGES | PREPAREDNESS | |
THREAT FOR TENANTS | RISK MITIGATION | |
Long-term shutdown | High liquidity to contain the impact, healthy balance sheet, high flexibility & large headroom | |
Unable to work at full-capacity | Well-diversified portfolio: Offices, residential, essential retail and logistics are resilient to the | |
current environment | ||
OPPORTUNITY
Pressure on market players due to liquidity
M&A opportunities with attractive pricing
RECOVERY
Re-openings with restrictions
"Bounce-backability" factor
CAPABILITIES
Massive cash balance to enable swift acquisition when attractive opportunities arise
Unique competitive advantage from wide deal sourcing network and fast deal execution
track record
FUNDAMENTALS
Diversified into several asset types, and within that several industries - when one factor
is unfavourable, AT can tap into others
No tenant or single industry dependency
22
Frankfurt
APPENDIX
23
Rotterdam
COMMERCIAL INVESTMENT PROPERTIES
Portfolio breakdown per asset type*
MARCH 2020 | Investment | Lettable area | EPRA Vacancy | Annualized | In-place rent/sqm (€) | Value/sqm (€) | Rental Yield |
property (€m) | (m sqm) | net rent (€m) | |||||
Office | 11,751 | 4,116 | 9.6% | 516 | 10.9 | 2,855 | 4.4% |
Hotel | 6,126 | 1,922 | 3.6% | 321 | 14.2 | 3,187 | 5.2% |
Retail | 2,333 | 1,137 | 6.9% | 137 | 10.5 | 2,051 | 5.9% |
Logistics/Wholesale/Other | 1,425 | 1,530 | 5.9% | 78 | 4.5 | 931 | 5.5% |
Development rights & invest | 1,521 | ||||||
Total | 23,156 | 8,705 | 7.2% | 1,052 | 10.5 | 2,485 | 4.9% |
Portfolio breakdown per region*
MARCH 2020 | Investment | Lettable area | EPRA Vacancy | Annualized | In-place rent/sqm (€) | Value/sqm (€) | Rental Yield | |
property (€m) | (m sqm) | net rent (€m) | ||||||
Berlin | 4,948 | 1,361 | 4.4% | 187 | 11.9 | 3,636 | 3.8% | |
NRW | 2,160 | 1,231 | 8.0% | 116 | 8.0 | 1,755 | 5.4% | |
Frankfurt | 1,992 | 629 | 14.3% | 82 | 11.9 | 3,164 | 4.1% | |
Munich | 1,838 | 610 | 11.0% | 56 | 7.8 | 3,016 | 3.0% | |
Dresden/Leipzig/Halle | 1,189 | 625 | 4.9% | 70 | 9.5 | 1,902 | 5.9% | |
Amsterdam | 758 | 192 | 4.0% | 33 | 14.1 | 3,947 | 4.4% | |
London | 677 | 105 | 10.1% | 29 | 25.8 | 6,443 | 4.3% | |
Hamburg/LH | 652 | 309 | 4.8% | 35 | 9.7 | 2,111 | 5.4% | |
Wiesbaden/Mainz/Mannheim | 512 | 221 | 5.5% | 31 | 11.6 | 2,320 | 6.0% | |
Stuttgart/BB | 428 | 188 | 3.0% | 25 | 11.0 | 2,282 | 5.8% | |
Hannover | 412 | 270 | 8.7% | 24 | 8.1 | 1,528 | 5.8% | |
Utrecht | 347 | 135 | 13.7% | 18 | 11.4 | 2,564 | 5.2% | |
Rotterdam | 326 | 132 | 4.4% | 23 | 13.9 | 2,468 | 6.9% | |
Other | 5,396 | 2,697 | 6.9% | 323 | 10.5 | 2,000 | 6.0% | |
Development rights & invest | 1,521 | |||||||
Total | 23,156 | 8,705 | 7.2% | 1,052 | 10.5 | 2,485 | 4.9% | 24 |
* figures exclude assets held for sale |
BEST IN CLASS BERLIN PORTFOLIO - MARCH 2020
88%
Top Tier
- 88% of the commercial portfolio is located in top tier neighborhoods
- Charlottenburg, Wilmersdorf, Mitte, Kreuzberg, Friedrichshain, Lichtenberg, Schöneberg, Neukölln, Steglitz and Potsdam
- Strongly benefiting from the unique dynamics & growth of Berlin's most in demand neighborhoods, business areas & tourist centers
- 12% of the commercial portfolio is well located primarily in Spandau, Reinickendorf, Hellersdorf/Marzahn & Treptow/Köpenick
Map representing approx. 95% of the portfolio and 98% incl. central Potsdam
Mitte | Potsdamer Platz |
Mitte | Alexanderplatz | Ku'Damm |
25
Rotterdam
COMMERCIAL PORTFOLIO: UPSIDE POTENTIAL
Commercial in-place rent compared to market rent prices
20% | below market | ||
rent | |||
80% | at market rent | ||
Commercial March 2020 annualized rental income vs. Market potential including vacancy reduction (in €m)
+25%
1,315
1,052
Mar 2020 annualized | Annualized market |
potential* |
- As of March 2020 incl. TLG,pre-Corona effect
- Large upside potential from rent increases to market levels with very limited downside risk
- Long lease terms with a WALT of 8.1 years
- Value upside: conservative valuations with current values at less than half of replacement costs
26
Rotterdam
STRATEGIC TOP TIER HOTELS IN STRONG LOCATIONS WITH FASTER RECOVERY POTENTIAL
Hotel | Rooms | Brand | |||||||||
Hilton Berlin Gendarmenmarkt Prime Center | 601 | ||||||||||
Bristol Berlin Ku'damm Prime Center (ex-Kempinski) | 301 | ||||||||||
InterContinental Frankfurt Prime Center | 473 | ||||||||||
Hilton London Hyde Park Prime Center | 132 | ||||||||||
Marriott Conference Hotel Paris City Center | 757 | ||||||||||
Hotel | Rooms | Brand | Hotel | Rooms | Brand | ||||||
Crowne Plaza Berlin Prime Center Potsdamer Platz | 256 | Mark Apart Berlin Prime Center Ku'damm | 120 | ||||||||
Die Welle H-Hotels Berlin Alexanderplatz | 624 | Motel One Zwinger-Forum Dresden Prime Center | 288 | ||||||||
Novum Winters Berlin Checkpoint Charlie | 170 | InterCity Hotel Dresden City Center | 162 | ||||||||
Steigenberger Hotel de Saxe Dresden Prime Center | 185 | Marriott Hotel Leipzig Prime Center | 239 | ||||||||
AC by Marriott Berlin Mitte | 130 | Schlosshotel Grunewald Charlottenburg Berlin | 54 | ||||||||
Moxy by Marriott Berlin Mitte | 101 | Radison Blu Prime Center Baden-Baden | 162 | ||||||||
Davos Promenade Hotel | 100 | Mercure Munich Conference Center Messe | 167 | ||||||||
Ex-Sheraton Brussels Prime Center | 533 | Ibis Munich Conference Center Messe | 137 | ||||||||
Sheraton Rome | 640 | Center Parcs (7 locations) | ca.5,000 | ||||||||
Hilton London Chelsea | 172 | Berlin Prime Center Mitte Rosa-Luxemburg-Platz | 95 | ||||||||
Hilton Edinburgh Royal Mall Prime Center | 211 | Seminaris Campus Hotel Berlin | 186 | ||||||||
Hilton Dublin Prime Center | 324 | Wyndham Garden Düsseldorf Prime Center Königsallee | 82 | ||||||||
Resorthotel Schwielowsee Berlin- Potsdam | 155 | Hotel Im Wasserturm Cologne Prime Center | 88 | ||||||||
DoubleTree by Hilton London Center Angel/King's-Cross | 373 | Ibis Berlin Alexanderplatz | 61 | ||||||||
Hyatt Regency Paris Airport Charles de Gaulle | 388 | Melia Munich Hotel Munich Messe | 134 | ||||||||
Berlin Holiday Inn City East | 473 | Penta Hotels (17 locations) | ca. 2,500 | ||||||||
Essen Holiday Inn Prime City Center | 168 | Mercure Liverpool Prime Center Hotel | 225 | ||||||||
Sheraton Hotel Hannover Business District | 147 | Berlin - Müggelsee | 176 | ||||||||
NH Hotel Dortmund Prime Center | 190 | Manchester City Center Hotel | 228 | 27 | |||||||
Steigenberger Hotel Cologne Prime Center | 305 | ||||||||||
HIGHEST RATED IN GERMAN COMMERCIAL REAL ESTATE
Financial risk profile
1 | 2 | 3 | 4 | 5 | 6 |
Minim | Modest | Intermediate | Significant | Aggre | High |
al | ssive | Levera | |||
ged |
profile | 1 | aaa/ | aa | a+/a | a- | bbb | bbb- | |
Excellent | aa+ | /bb+ | ||||||
2 | aa/ | (Klepierre) | (Aroundtown) | (Vonovia- BBB+)2) | ||||
a+/a | (DW) A- | BBB+ (GCP) | BBB | bb+ | bb | |||
Strong | aa- | |||||||
risk | (Gecina A-)1)(Icade)(Covivio) | |||||||
3 | a/a- | bbb+ | BBB/BBB- | bbb-/bb+ | bb | b+ | ||
Business | Satisfactory | |||||||
(Alstria BBB)3) | ||||||||
4 | bbb/ | bbb- | bb+ | bb | bb- | b | ||
Fair | bbb- | |||||||
5 | bb+ | bb+ | bb | bb- | b+ | b/b- | ||
Weak | ||||||||
Vulnerable | bb- | bb- | bb- | b+ | b | b- | ||
- Rating anchor of Gecina is BBB+, their final rating after the effect of modifiers is A-
- Rating anchor of Vonovia is BBB, their final rating after the effect of modifiers is BBB+
- Rating anchor of alstria is BBB+, their final rating after the effect of modifiers is BBB
'BBB+' Investment Grade rating from S&P
S&P | S&P | Long-term | |
S&P | BBB+ | target | |
BBB | |||
BBB- | Dec '17 | A | |
Dec '15 | Jun '16 | ||
Financial policy:
Strive to achieve A global rating in the long term
LTV limit at 45%
Debt to debt-plus-equity ratio at 45% (or lower) on a sustainable basis
Maintaining conservative financial ratios with strong ICR
Unencumbered assets above 50% of total assets
Long debt maturity profile
Good mix of long term unsecured bonds & non- recourse bank loans
Dividend distribution of 65% of FFO I per share
28
Rotterdam
EQUITY ANALYST RESEARCH COVERAGE
11.00
10.81
10.00
Analyst Research Target Price
9.80 9.509.25 9.00
8.80 8.508.408.30 8.30
7.75 7.40
6.52 6.506.405.90
4.60
HSBC | Citigroup | First Berlin | Commerzbank | SRC Research | Baader Bank | Hauck & | M.M. Warburg | JP Morgan | Oddo BHF | Deutsche Bank | UBS | Kepler | Berenberg | Jefferies | Barclays | Bankhaus Lampe Goldman Sachs | Nord LB | |
13.01.2020 | 18.03.2020 | 06.04.2020 | 18.03.2020 | 24.03.2020 | 18.12.2019 | Aufhäuser | 19.11.2019 | 31.03.2020 | 27.03.2020 | 02.09.2019 | 26.03.2020 | Cheuvreux | 04.05.2020 | 12.05.2020 | 15.04.2020 | 29.04.2020 | 03.04.2020 | 31.03.2020 |
30.04.2020 | 31.03.2020 |
Analyst Coverage | -MSCI ACWI | Key Index Inclusions | |||
-MSCI World | |||||
-MSCI Germany | |||||
DAX | MDAX | MSCI | FTSE | FTSE | |
EPRA/ | Eurofirst | ||||
50 ESG |
NAREIT | 300 |
-Global Developed -Europe Developed -Eurozone-Germany
S&P | STOXX | GPR | GPR | GPR |
350 | 600 | ESG+ | 250 | IPCM LFFS |
Sustainable GRES |
29
Rotterdam
AROUNDTOWN'S SHARE PRICE PERFORMANCE
9.0
8.0
Share performance and total return since initial placement of capital (13.7.2015)
Aroundtown is the best performer in 2017/2018 amongst European real Estate
7.0 | Aroundtown +68% | |||
EPRA Germany (rebased) +74% | ||||
6.0 | ||||
MDAX | +24% | |||
5.0 | Issue price of €3.20 | (rebased) | ||
4.0 | ||||
Stoxx 600 | +4% | |||
3.0 | (rebased) | |||
2.0 | ||||
Jul-15Sep-15Nov-15Jan-16Mar-16May-16Jul-16 | Sep-16Nov-16Jan-17Mar-17May-17Jul-17Sep-17Nov-17Jan-18Mar-18May-18Jul-18Sep-18Nov-18Jan-19Mar-19May-19Jul-19Sep-19Nov-19Jan-20Mar-20May-20 |
The Share | Shareholder Structure |
Share Issue Price Development
Placement | Frankfurt Stock Exchange | ||||||||||
(Prime Standard) | |||||||||||
€8.5 | €8.8 | ||||||||||
Incorporation | Luxembourg | Free float | €7.2 | ||||||||
78.4% | €6.4 | ||||||||||
€6.0 | €2.8bn | ||||||||||
13.07.2015 | |||||||||||
First equity issuance | €5.3 | ||||||||||
(€3.2 per share) | €4.6 | ||||||||||
€4.1 | |||||||||||
Number of shares (basic) | 1,536,397,797 | €3.2 | €3.2 | €606m | €601m | ||||||
€320m | €389m | €426m | €450m | ||||||||
Number of shares (basic), excl. | €267m | €225m | |||||||||
€300m | |||||||||||
suspended voting rights, base | 1,352,461,660 | Shares held in | |||||||||
for share KPI calculations | treasury* | ||||||||||
Free float | 78.4% | 12% | Apr 2015 Apr 2016 May 2017 | Dec 2017 Oct 2017 Mar 2018 | Jul 2019 | Mar 2020 Feb 2020 | |||||
Jul 2015 | |||||||||||
Convertible | Convertible | TLG Merger | |||||||||
Symbol (Xetra) | AT1 | of which | Avisco Group | (converted in | (fully | ||||||
Blackrock Inc. | 2017 & | converted in | |||||||||
€7.4 bn | 5.1% | 9.6% | 2018) | 2018) | |||||||
Market cap 26.05.2020 | 30 | ||||||||||
(€4.8 share price) | |||||||||||
*held through TLG Immobilien AG, voting rights suspended | |||||||||||
CAPITAL MARKET ACTIVITY
Capital market activity per year
€4.2bn | €4.2bn | €4.6bn | |||||||
€2.6bn | €3.0bn | ||||||||
€1.2bn | |||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 YTD | ||||
Equity | Perpetual | Conv. Bond | |||||||
Str. Bond | Mandatory conv. Notes | Total |
- AT has been the largest listed European RE capital market issuer in 2016, 2017 and 2019
- Issuances via different instruments and different currencies, with currency hedges to Euro in place, demonstrate AT's broad and diverse investor base as well as strong demand to AT's instruments. These not only provide diversification of the investor base but also eliminate dependency on any single markets, instruments or currencies. Currency risk is hedged through swap agreements to Euro. Majority of the issuances were under EMTN programme which facilitates this diversity and flexibility
Capital market activity per issuance type 2015-2020 YTD
Str. | €10bn | |||
Bond | ||||
Conv. | €0.8bn | |||
Bond | ||||
Equity | €6.2bn | €2.6bn | €0.2bn | |
Equity (incl. Conversions) | Perpetual notes | Mandatory conv. Notes |
Equity and Bond Bookrunners
31
BOARD OF DIRECTORS
FRANK ROSEEN - DIRECTOR
HIGHLY EXPERIENCED WITH A TRACK RECORD OF 30 YEARS. HELD VARIOUS SENIOR MANAGEMENT POSITIONS, INCLUDING, CEO OF GERMANY & CENTRAL EASTERN EUROPE OF GE CAPITAL AND REAL ESTATE. MBA
OSCHRIE MASSATSCHI- DIRECTOR
SINCE 2013 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SUBSIDIARIES. INTERNATIONAL PROFESSIONAL EXPERIENCE IN BANKING, MANAGEMENT CONSULTANCY AND CORPORATE FINANCE IN AUSTRALIA, UK AND GERMANY. BA HONOURS IN INTERNATIONAL BUSINESS
JELENA AFXENTIOU - DIRECTOR
SINCE 2011 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SUBSIDIARIES AND HAS 20 YEAR OF EXPERIENCE IN THE REAL ESTATE AND THE HOTEL BUSINESS, SPECIALIZING IN FINANCE AND ACCOUNTING.
RAN LAUFER - NON-EXECUTIVE DIRECTOR
FORMER POSITIONS INCLUDE CEO OF ADO PROPERTIES, DEPUTY CEO OF GRAND CITY PROPERTIES S.A. AND CHIEF OFFICER OF MARKETING AND SALES OF AIRPORT CITY LTD.
MBA
ADVISORY BOARD
DR. GERHARD CROMME - CHAIRMAN OF THE ADVISORY BOARD
DR. CROMME HAS A LONG AND IMPRESSIVE TRACK RECORD WITH TOP POSITIONS IN GERMANY'S BLUE CHIP COMPANIES, INCLUDING CHAIRMAN OF THE SUPERVISORY BOARD OF SIEMENS, CHAIRMAN OF THE EXECUTIVE BOARD AND CHAIRMAN OF THE SUPERVISORY BOARD OF THYSSENKRUPP, AS WELL AS MEMBERSHIP ON THE SUPERVISORY BOARDS OF OTHER LEADING COMPANIES SUCH AS VOLKSWAGEN, LUFTHANSA, ALLIANZ, BNP PARIBAS, E.ON AND AXEL SPRINGER AND CURRENTLY CO-CHAIRMAN OF THE SUPERVISORY BOARD OF ODDO BHF GROUP. IN ADDITION, DR. CROMME HOLDS THE GERMAN DISTINCTION COMMANDER'S CROSS OF THE ORDER OF MERIT AND THE FRENCH DISTINCTION GRAND OFFICER OF THE LEGION OF HONOR.
YAKIR GABAY - ADVISORY BOARD
DEPUTY CHAIRMAN FOUNDER OF THE GROUP IN 2004. WAS PREVIOUSLY THE CHAIRMAN & MANAGING PARTNER OF AN INVESTMENT COMPANY WHICH MANAGED OVER $30 BILLION OF ASSETS, AND BEFORE THAT THE CEO OF THE INVESTMENT BANKING OF BANK LEUMI. MBA, BA IN ACCOUNTING/ECONOMICS, AND CPA
MARKUS LEININGER- INDEPENDENT DIRECTOR
FORMER SENIOR BANKER WITH A FOCUS ON FINANCING, PRIVATE EQUITY AND REAL ESTATE. SERVED AS HEAD OF OPERATIONS WITH EUROHYPO AG AND RHEINHYP AG (COMMERZBANK) AND A MEMBER OF THE ADVISORY BOARD AND INVESTMENT COMMITTEE OF REVETAS CAPITAL ADVISORS. DIPLOMA IN B.A.
SIMONE RUNGE-BRANDNER - INDEPENDENT DIRECTOR
HER PAST POSITIONS INCLUDE DEAL MANAGER (DIRECTOR) AT UBS DEUTSCHLAND AG, VICE PRESIDENT REAL ESTATE FINANCE/ INVESTMENT FUNDS, CREDIT MANAGER AT DEKABANK FRANKFURT AND CREDIT MANAGER REAL ESTATE FINANCE AT HELABA FRANKFURT. DIPLOMA IN INTERNATIONAL BUSINESS ADMINISTRATION
MARKUS KREUTER - INDEPENDENT DIRECTOR
SPECIALIZED IN REAL ESTATE DEBT ADVISORY THROUGH HIS OVER 18 YEARS OF EXPERIENCE IN AMONG OTHERS NATIONAL DIRECTOR DEBT ADVISORY AT JLL, HEAD OF GERMAN COMMERCIAL REAL ESTATE LENDING AT DEUTSCHE BANK, GROUP HEAD OF DEBT FUNDING AT CA IMMO. DEGREE IN REAL ESTATE ECONOMICS
THE AUDIT COMMITTEE CONSISTS OF THE INDEPENDENT DIRECTORS,
MR. MARKUS KREUTER (CHAIRMAN) AND MR. MARKUS LEININGER
CLAUDIO JARCZYK- ADVISORY BOARD MEMBER
JOINED THE GROUP'S ADVISORY BOARD SINCE 2013. SERVED AS AN EXECUTIVE DIRECTOR AT BERLINHYP BANK SPECIALIZING IN REAL ESTATE FINANCING WITH A FOCUS ON INTERNATIONAL CLIENTS, AS A CHIEF INTERNATIONAL EXECUTIVE AT LANDESBANK BERLIN AND AS AN INTERNATIONAL DIVISION-DEPARTMENT MANAGER AT BAYERISCHE VEREINSBANK MUNICH. DIPL.KFM. / MBA
DAVID MAIMON- ADVISORY BOARD MEMBER
MR. MAIMON WAS THE PRESIDENT AND CEO OF EL AL AIRLINES. PRIOR, MR. MAIMON WAS EVP OF CUSTOMER SERVICE, COMMERCE & INDUSTRY AFFAIRS SALES & MARKETING IN EL AL AIRLINES AND SERVED AS A DIRECTOR IN VARIOUS COMMERCIAL COMPANIES SUCH AS LEUMI GEMEL LTD, HEVER AND SUN D'OR INTERNATIONAL AIRLINES. MBA
32
Rotterdam
MANAGEMENT TEAM
SHMUEL MAYO - CEO
SINCE 2006 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SUBSIDIARIES. PREVIOUSLY, WAS THE CEO OF A LEADING INTERNATIONAL INVESTMENT CONGLOMERATE. BA IN ECONOMICS AND ACCOUNTING, LAW AND CPA
EYAL BEN DAVID - CFO
SINCE 2008 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SUBSIDIARIES. PREVIOUSLY, HELD A PRIVATE PRACTICE OF CERTIFIED PUBLIC ACCOUNTANTS FOCUSED ON INFRASTRUCTURE AND REAL ESTATE INDUSTRIES. SINCE 2008 IN THE MANAGEMENT OF AROUNDTOWN. MBA AND CPA
ANDREW WALLIS - DEPUTY CEO
SINCE 2014 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SUBSIDIARIES. FORMER OWNER AND CEO OF A LARGE GERMAN PROPERTY MANAGEMENT COMPANY. PREVIOUSLY HE SPENT 10 YEARS AS AN INVESTMENT BANKER IN THE CITY OF LONDON FOR MERRILL LYNCH AND JP MORGAN. MBA AND CFA
MILAN ARANDELOVIC - COO OF HOTEL DIVISION
MR ARANDELOVIC HAS 25 YEARS OF EXPERIENCE IN THE INTERNATIONAL HOSPITALITY SECTOR; BEFORE JOINING THE GROUP, HE HELD REGIONAL ROLES WITHIN HILTON IN EUROPE. IN THIS ROLE HE OPERATED HOTELS FROM BUDGET SECTOR TO LUXURY. MR. ARANDELOVIC HOLDS A BACHELOR FROM THE RENOWNED ECOLE HOTELIERE DE LAUSANNE AND AN MSC OF STRATHCLYDE UNIVERSITY.
BRIGITTE SCHMITT - HEAD OF SHOPPING MALL DIVISION
BEFORE JOINING THE GROUP MRS. SCHMITT HAS BEEN 12 YEARS WITH ECE - EUROPEAN MARKET LEADER FOR SHOPPING CENTERS AND WITH DTZ WHERE HER TEAM WAS TWICE AWARDED THE CEE PROPERTY MANAGEMENT TEAM OF THE YEAR AWARD. DEGREE IN BUSINESS MANAGEMENT
AND ADMINISTRATION - FROM THE UNIVERSITY OF WÜRZBURG.
JELENA EBNER - HEAD OF TRANSACTION MANAGEMENT
MS. EBNER WORKED FOR HUDSON ADVISORS AND LATER AT DUNDEE INTERNATIONAL AS AN ASSET MANAGER. COMING FROM A PROPERTY MANAGEMENT BACKGROUND, JELENA HAS EXPERIENCE IN ALL ASSET TYPES. BA AND TRAINING AS REAL ESTATE MANAGER
GUIDO PÜTZ - SENIOR ASSET MANAGER
ORIGINALLY TRAINED AT HOCHTIEF AG, GUIDO HAS SPENT THE LAST 15 YEARS STEERING REAL ESTATE OF ALL ASSET TYPES FOR BIG PLAYERS IN THE MARKET SUCH AS HUDSON ADVISORS, CUSHMAN & WAKEFIELD AND CATELLA. MBA
MARKUS NEURAUTER - HEAD OF COMMERCIAL OPERATIONS
BEFORE JOINING THE GROUP HE WAS A BOARD MEMBER OF STRABAG AG AND CEO OF RAIFFEISEN EVOLUTION, RESPONSIBLE FOR PROJECT DEVELOPMENT IN 11 EUROPEAN COUNTRIES WITH A DEVELOPMENT VOLUME OF MORE THAN €2BN. MR. NEURAUTER COVERS MORE THAN 30 YEARS OF EXPERIENCE IN REAL ESTATE. MASTERS DEGREE IN ECONOMICS
NIKOLAI WALTER- HEAD OF ASSET & PROPERTY MANAGEMENT
20 YEARS' EXPERIENCE IN THE REAL ESTATE INDUSTRY. BEFORE JOINING THE GROUP, WAS A
MANAGING DIRECTOR OF FORTRESS INVESTMENT GROUP, RESPONSIBLE FOR THE ASSET MANAGEMENT OF THE GERMAN COMMERCIAL WITH A MARKET VALUE OF € 5.6 BN. ALSO HELD POSITIONS AT DEUTSCHE BANK GROUP INCLUDING HEAD OF ASSET MANAGEMENT GERMANY AT DEUTSCHE ASSET AND WEALTH MANAGEMENT. MBA AND DEGREE IN REAL ESTATE ECONOMICS
ALFRED KANDL - HEAD OF CONSTRUCTION MANAGEMENT
MR KANDL HAS 35 YEARS OF EXPERIENCE IN THE REAL ESTATE AND BUILDING INDUSTRY. HE WORKED IN STRABAG AG, ONE OF AUSTRIA'S LEADING BUILDING COMPANIES, AND FURTHER WORKED IN CONTROLLING POSITIONS AT LARGE CONSTRUCTION SITES ALL OVER AUSTRIA AND CENTRAL AND EASTERN EUROPE. FROM 2003 WORKED AS HEAD OF CONSTRUCTION AT RAIFFEISEN EVOLUTION. DEGREE IN ENGINEERING
NORMAN LINDNER - HEAD OF INDUSTRIAL & LOGISTICS DIVISION
ORIGINALLY TRAINED AS A BANKER, NORMAN SPENT TWO YEARS IN RISK MANAGEMENT BEFORE GOING INTO CONTROLLING, FINANCE AND ACCOUNTING AS AN ASSET MANAGER. HE GAINED HIS EXPERIENCE AT HABACKER HOLDING, DAWNAY DAY PROPERTY INVESTMENT AND IKB DEUTSCHE INDUSTRIEBANK. MBA
CHRISTIAN HUPFER - CHIEF COMPLIANCE OFFICER
SINCE 2008 IN THE MANAGEMENT OF AROUNDTOWN AND ITS SUBSIDIARIES. IS SPECIALIZED IN TAX STRUCTURING, FINANCIAL STATEMENT AND CASH FLOW ANALYSIS. MR. HUPFER WORKED FOR RÖVERBRÖNNER KG STEUERBERATUNGS UND WIRTSCHAFTSPRÜFUNGSGESELLSCHAFT IN THE AUDIT AND TAX DEPARTMENT. DIPLOMA OF ECONOMICS WITH A FOCUS ON TAX AND FINANCIAL AUDITING
IDAN KAPLAN - SENIOR FINANCIAL MANAGER
BEFORE JOINING AROUNDTOWN, MR. KAPLAN SERVED AS AN AUDITOR IN AN ACCOUNTING FIRM. BA IN ACCOUNTING AND BUSINESS ADMINISTRATION
SYLVIE LAGIES - HEAD OF ESG
HELD POSITIONS AS HOTEL GENERAL MANAGER, CORPORATE PROJECT MANAGER AND HEAD OF TRAINING AND DEVELOPMENT. FORMER ROLES WERE HEAD OF FRANCHISE DEVELOPMENT AND
TRAINING FOR DOMINO'S PIZZA GERMANY, DIRECTOR OF BUSINESS DEVELOPMENT FOR PRECISE 33HOTEL COLLECTION IN GERMANY
BERLIN POTSDAMER PLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER
landmark | |||
Potsdamer Platz | Potsdamer Platz | property | |
Office | |||
Office | |||
Crowne Plaza Potsdamer | |||
Platz Hotel | |||
Checkpoint Charlie | Potsdamer Platz | ||
Hotel | Office | ||
Potsdamer Platz | |||
Checkpoint Charlie | Residential (GCP) | ||
Office | Potsdamer Platz | ||
Checkpoint Charlie | Office | ||
Office | |||
Gendarmenmarkt | |||
Office | |||
Gendarmenmarkt | |||
Gendarmenmarkt | Office | ||
Retail | |||
Hilton Gendarmenmarkt | |||
Hotel | |||
Gendarmenmarkt | |||
Office | |||
Gendarmenmarkt | |||
Rotterdam | 34 | ||
BERLIN ALEXANDERPLATZ: THE PRIME COMMERCIAL AND TOURIST CENTER
Berlin Mitte | Berlin Mitte | Berlin Prime Center Mitte | |||
Residential (GCP) | |||||
Residential (GCP) | Hotel | landmark | |||
Prenzlauer Berg | Greifswalder str. | ||||
Berlin Mitte | Alexanderplatz | ||||
Mixed-use campus | Retail | ||||
Berlin Mitte | Residential (GCP) | Office | property | ||
Residential (GCP) | |||||
Moxy by Marriott Berlin | |||||
Mitte Hotel | |||||
Alexanderplatz | |||||
Berlin Mitte | Office & Hotel | ||||
Residential (GCP) | Prenzlauer Berg | ||||
Alexanderplatz | Alexanderplatz | ||||
Retail | |||||
Office | |||||
Alexanderplatz Ibis Hotel | |||||
AC by Marriott Berlin Mitte | Alexanderplatz | ||||
Hotel | Mixed-use | ||||
Alexanderplatz | |||||
Office | |||||
Alexanderplatz | |||||
Alexanderplatz | |||||
Retail | |||||
Berlin Cathedral | |||||
Köpenickerstraße | Köpenickerstraße | ||||
Residential (GCP) | Office | ||||
Annenstraße | |||||
Retail | |||||
Rotterdam | 35 | ||||
BERLIN KU'DAMM: THE PRIME COMMERCIAL AND TOURIST CENTER
Berlin City Center Mitte | Berlin Mitte City Center Retail | |||||
Potsdamer Platz | ||||||
Office | AC by Marriot | Ku'Damm KaDeWe | landmark | |||
Berlin Mitte Hotel | ||||||
Residential (GCP) | property | |||||
Moxy by Marriot Berlin Mitte | ||||||
Hotel | Ku'Damm KaDeWe Office | |||||
Berlin City Center Mitte | ||||||
Office | Ku'damm /Uhlandstr. | |||||
Berlin Tiergarten | ||||||
Berlin City Center Mitte | Office | |||||
Hotel | ||||||
Office Campus | ||||||
Berlin Tiergarten | Ku'Damm | |||||
Ku'Damm Mark Apart | ||||||
Office Campus | ||||||
Office | ||||||
Hotel | ||||||
Bristol Berlin Ku'Damm | ||||||
Berlin Center Charlottenburg | Hotel | |||||
Berlin Center Charlottenburg | Residential (GCP) | |||||
Office | Ku'Damm / Lietzenburger Str. | |||||
Kurfürstendamm | Residential (GCP) | |||||
(Ku'Damm) | ||||||
Ku'Damm/Meineke Str. | ||||||
Residential (GCP) | ||||||
Ku'Damm - Adenauerplatz | Ku'Damm - Adenauerplatz | |||||
Residential (GCP) | ||||||
Office | ||||||
Ku'Damm - Adenauerplatz | ||||||
Office | ||||||
Rotterdam | 36 | |||||
FRANKFURT: QUALITY ASSETS IN CENTRAL LOCATIONS
landmark | ||||||
property | ||||||
Frankfurt Büro Center (FBC) | Frankfurt HBF | Frankfurt Stadtmitte | Frankfurt Main Triangel | InterContinental Frankfurt | Frankfurt HBF | Frankfurt Office Campus |
Office | Office | Office | Office | Hotel | Office | Office |
European Central | ||||||
Bank Headquarters | ||||||
Banking District | Frankfurt Hauptbahnhof | |||||
(Central Train Station) | ||||||
View from Hafenstr. Office Tower | ||||||
Rotterdam | 37 | |||||
DEVELOPMENT/BUILDING RIGHTS: PRIME CENTER BERLIN ALEXANDERPLATZ
PROPERTY DESCRIPTION
- TLG's office building on Berlin's Alexanderplatz covers 55k sqm
- The primary building is a large office building situated on Alexanderstraße 1,3,5, 10178 Berlin, built in 1969
- The second building is situated onKarl-Liebknecht-Str. 30, 10179 Berlin and consists of a low-rise
- The asset is situated at Alexanderplatz, one of Berlin's prime centers
- The Alexanderplatz station is a main transport hub connected by a wide range ofU-bahn,S-bahn, trams and buses
Ibis Berlin |
Alexanderplatz |
Berlin TV Tower |
MARKET DEMAND
- The asset's district "Mitte" is Berlin's top office district with the highest rents in the city1). Average office rents in Alexanderplatz reach up to €40/sqm (€27/sqm Berlin Ø)1)
- Demand is the highest for modern office space with virtually zero vacancy in Mitte2). New supply comes with high pre-letting ratio for any new developments, leaving little or no availability after completion2)
- Mitte is the largest hotel cluster of Berlin, more than half of the branded hotels are located there3)with Alexanderplatz particularly in great demand4)
- Mitte is also the gravity center of Berlin's residential market with the highest rents and prices in the city5)
- Selling prices can reach up to €13k/sqm for office space while construction costs are around €2k/sqm6)
VALUE EXTRACTION POTENTIAL
- Development plans include three new buildings, including twohigh-rise towers, covering a total gross area of approx. 150k sqm
- Current plans entail amixed-use development of most demanded asset types in order to fully extract the potential of the space
- Aroundtown and TLG have properties which are adjacent to each other. By combining these assets the positioning of the whole can be optimized further through higher amount of letting space, resulting in additional value creation while streamlining the cost structure
1) Angermann, Office Market Berlin Q4 2019 2) BNP Paribas Real Estate, Office Market Germany, 2020
38 | |||||
3) Horwath HTL, Hotel Chains Market Germany: Snapshot Berlin, 2018 4) Deloitte, Berlin's Hotel Market, 2016 5) Guthmann Estate, Market Report Berlin-Mitte, 2020 6) ZIA Deutschland, 2019; Destatis, 2020 | |||||
Rotterdam
DEVELOPMENT/BUILDING RIGHTS - HILTON BERLIN PRIME CENTER GENDARMENMARKT
PROPERTY DESCRIPTION
- The 4 star Hilton Hotel is located in the heart of Berlin on Gendarmenmarkt, a prime tourist, residential and commercial center with historical & cultural landmarks and excellent connectivity & transportation options
- Only 1/3 of the space produces most of the rent. The huge lobby area, the long entry drive way facing the most expensive location in Berlin and overground parking garage are producing a fraction of the rent
Hilton Hotel
MARKET DEMAND
- The asset's district "Mitte" is Berlin's top office district with highest rents in the city1). Average office rents in Gendarmenmarkt range between €26-€36 per sqm1)
- Demand is the highest for modern office space with virtually zero vacancy in Mitte2). New supply comes with high pre-letting ratio for any new developments, leaving little or no availability after completion2)
- Mitte is the largest hotel cluster of Berlin, more than half of the branded hotels are located there3)with Alexanderplatz particularly in great demand4)
- Mitte is also the gravity center of Berlin's residential market with the highest rents and prices in the city5)
VALUE EXTRACTION POTENTIAL
- Overground parking garage:Conversion of 18k sqm parking space into prime office space and high-end mixed use of residential condos which can be integrated into the hotel's operational systems (short-term living)
- Driveway & Lobby:The most prestigious side of the hotel facing Gendarmenmarkt is used as a long stretched driveway and huge lobby. Conversion into prime leisure retail/restaurants/services complementing the area's use as a destination for top culture, historic landmarks and prime gastronomy, with millions of visitors in the Gendarmenmarkt square
- Additional rooms from conversion:Unused and not producing public spaces to be converted to additional 70 hotel rooms. Potential additional new space on the roof and inner spaces to create additional50-100rooms. Total potential of additionalrooms:120-170.Due to the top tier location, each converted and added lettable sqm will produce both high rent levels of€30-€50per sqm and value per sqm of €12k to €15k
1) Angermann, Office Market Berlin Q4 2019 2) BNP Paribas Real Estate, Office Market Germany, 2020 | 3) Horwath HTL, Hotel Chains Market Germany: Snapshot Berlin, 2018 4) Deloitte, Berlin's Hotel Market, 2016 5) Guthmann Estate, Market Report Berlin-Mitte, 2020 6) Winters & Hirsch Real Estate Database, 2019 | 39 |
Rotterdam
DEVELOPMENT/BUILDING RIGHTS - BERLIN KREUZBERG/ALT-TREPTOW
PROPERTY DESCRIPTION | MARKET DEMAND | VALUE EXTRACTION POTENTIAL | ||||||
➢The cinema center holds 7k sqm & is located across the | ➢Located between Mediaspree and Adlershof Science Park, | ➢Conversion into an office building: | ||||||
Park Center retail/office center in a mixed use office, | Alt-Treptow office market has a strong demand | ➢Development into a building with 26k lettable sqm with | ||||||
residential & touristic area of the district of | ➢Average office rents in Alt-Treptow can reach up to €27 | mixed use of office and hotel/short-term let micro | ||||||
Treptow/Kreuzberg around the corner of the Treptowers | per sqm1) | apartments | ||||||
office towers. Strong connectivity is provided through its | ➢Achievable purchase/sale prices for office properties in | |||||||
inner city location with bus, S-bahn and highway | the region can reach up to €7,000 per sqm2) | |||||||
➢Aroundtown acquired this property as part of the | ➢New development have a very high pre-letting ratio. More | |||||||
acquisition of the Park Center retail/office center across | than half of new supply that is expected to be delivered in | Treptowers | ||||||
the property | the next 2 years are already pre-let3) | |||||||
Treptower | ||||||||
Park | ||||||||
Cinema Center | ||||||||
Am Treptower | ||||||||
Park 14, 12435 | ||||||||
Berlin | ||||||||
Park | ||||||||
Center |
1) Angermann, Office Market Berlin Q4 2019 2) JLL Database, 2020 3) BNP Paribas Real Estate,
Office Market Germany, 2020 (data for refers to Mediaspree) | 40 |
Rotterdam
DEVELOPMENT/BUILDING RIGHTS - BERLIN TREPTOW-KÖPENICK - THE BREWERY PROJECT
PROPERTY DESCRIPTION
-
This office property is located in the Niederschöneweide quarter of Berlin'sTreptow-Köpenick borough, which is a mix-use area surrounded of commercial as well as a residential space with the Treptower Park to the north and in the south the Berlin Adlershof Technology park, the largest science park in Germany, which is home to over
500 companies and to Berlin Humboldt University's
Faculty of Science. Due to its historic use as a former brewery founded in 1882, the property has a special architecture appearance and its locations on the river banks of the river spree give this property unique characteristics
MARKET DEMAND
- Located between Treptower Park and Adlershof Science Park, Niederschöneweide has a strong and further growing market environment
- Average rents for both residential and commercial use in the area are around €15/sqm1)
- Achievable purchase/sale prices for office properties in the region can reach up to €4,000 per sqm1)
VALUE EXTRACTION POTENTIAL
- Conversion and development into mixed use urban quarter
- The original use of the buildings have been for offices, residential, warehouse and factory
- Re-developmentpotential of currently 41k sqm into around 70k lettable sqm of office (conversion as well as new built), micro/student apartments and retail while maintaining the special characteristics of the property
1) JLL Database, 2020 | 41 |
Rotterdam
DEVELOPMENT/BUILDING RIGHTS - FRANKFURT MAIN CENTRAL TRAIN STATION
PROPERTY DESCRIPTION
- The 22 storey office tower covers 21k sqm and is situated adjacent Frankfurt's main central train station and thus is well connected by public transport as well as its location just off Mainzer Landstraße, Frankfurt's main inner city road, providing good access to the surrounding districts and the highway system. The area surrounding the property is a popular office location.
MARKET DEMAND
- The office tower is located at the corner of Bahnhofsviertel, Europaviertel and Banking District, three of the most exclusive office districts in Frankfurt.
- Achiveble average rents for the modern space in this area can reach up to €32/sqm1)
- New supply that is expected to be delivered to the market within the next two years have 100%pre-letting ratio2)
- Achievable selling prices can range between €10k/sqm to €14k/sqm1)3)
VALUE EXTRACTION POTENTIAL
- Aroundtown recently acquired the office tower. The asset will be vacated this year to enable complete redevelopment
- Capex for repositioning and renting at market rents:
- Aroundtown will upgrade the building (façade, technical parameters, fit out etc.) to capture the rent reversion of 400%
Main central train
station
Office Tower
Hafenstraße 51
60327 Frankfurt
1) JLL Database, 2020 3) BNP Paribas Real Estate, Office Market Germany, 2020 (data for refers to
Central Station) 3) ZIA Deutschland, 2019 | 42 |
Rotterdam
REGIONAL MARKET OVERVIEW
Bremen
- GDP growth1: 3.3%
- Migration balance2: 1.1%
- Population density3: 1,734 per km2
Amsterdam
- GDP growth1: 3.8%
- Migration balance2: 6.9%
- Population density3: 5,111 per km2
Utrecht
- GDP growth1: 3.2%
- Migration balance2: 2.6%
- Population density3: 3,644per km2
Rotterdam
- GDP growth1: 3.3%
- Migration balance2: : 1.8%
- Population density3: 2,943 per km2
NRW
- GDP growth1: 1.7%
- Migration balance2: 0.7%
- Population density3: 524 per km2
inhabitants per
Hamburg
- GDP growth1: 2.4%
- Migration balance2: 0.9%
- Population density3: 2,397 per km2
Hannover
- GDP growth1(NI): 2.5%
- Migration balance2: 1.3%
- Population density3: 2,608 per km2
Berlin
- GDP growth1: 3.1%
- Migration balance2: 1.2%
- Population density3: 4,012 per km2
Dresden/Leipzig/Halle
- GDP growth1(SN): 1.4%
- Migration balance2: 0.4%-1.4%
- Population density3: 1,666-1918 per km2
Nuremberg/Fuerth
- GDP growth1(BA):2.2%
- Migration balance2: 1.2%
- Population density (N)3: 2,966 per km2
- GDP Growth: 2017. Data from the respective federal state is used in case city data is not available - NL provisional figures
Frankfurt
sqkm (2013)
Munich
2)Migration balance: Average annual
- GDP growth1(HE): 2.2%
- Migration balance2: : 1.2%
- Population density3: 2,966 per km2
Mannheim
- GDP growth1(BW): 2.3%
- Migration balance2: 0.9%
- Population density3: 2,102 per km2
Rotterdam
- GDP growth1(BA): 2.2%
- Migration balance2: 1.2%
- Population density3: 4,713 per km2
Stuttgart
- GDP growth1(BW): 2.3%
- Migration balance2: : 1.0%
- Population density3: 3,029 per km2
migration balance 2013- 2016, domestic & foreign migration
- Population density: Residents per Sqk (2016/NL 2017)
43
GERMAN HOTEL MARKET - DOMESTIC TRAVEL WILL BE THE KEY FOR RECOVERY FROM COVID-19
Share of domestic travel
in % of total travel
85%
81%
German hotel market is among the least volatile hotel markets in Europe due to:
High share of domestic travel
Low dependency on long-haul flights
61%
58% 57%
53%
47%
42%
31%
Germany | UK | Netherlands | France | Italy | Spain | Austria | Czechia | Portugal |
Source: OECD, last data available. Tourism Economics. STR | |
Share of domestic travel is in terms of total expenditure | 44 |
GERMAN HOTEL MARKET - FAST RECOVERY DURING PAST CRISIS
Owing to high share of domestic travel and low dependency on long-haul flights, German hotel market recovered
swiftly from the financial crisis, much quicker than the rest of Europe and also at a higher acceleration rate
Source: OECD, last data available. Tourism Economics. STR
45
Rotterdam
DISCLAIMER
IMPORTANT:
This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law,
e.g. regarding national and international insider dealing rules, and must not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by the recipient to any other person. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein. This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of the Group ("forward-looking statements"). All forward-looking statements contained in this document and all views expressed and all projections, forecasts or statements relating to expectations regarding future events or the possible future performance of Aroundtown SA or any corporation affiliated with Aroundtown SA (the "Group") only represent the own assessments and interpretation by Aroundtown SA of information available to it as of the date of this document. They have not been independently verified or assessed and may or may not prove to be correct. Any forward-looking statements may involve significant risks and uncertainties and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. No representation is made or assurance given that such statements, views, projections or forecasts are correct or that they will be achieved as described. Tables and diagrams may include rounding effects. This presentation is intended to provide a general overview of the Group's business and does not purport to deal with all aspects and details regarding the Group. Accordingly, neither the Group nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and
accordingly no reliance should be placed on, the accuracy or completeness of the information contained in the presentation or of the views given or implied. Neither the Group nor any of
its directors, officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith. Aroundtown SA does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation.
46
Rotterdam
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Aroundtown SA published this content on 27 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2020 07:22:07 UTC