FEBRUARY Investor Presentation

Transcription

1 FEBRUARY 2019 Investor Presentation

2 Disclaimer The presentation, including any printed or electronic copy of these slides, the talks given by the presenters, the information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or in connection with the presentation (together, the Presentation ), has been prepared by Godewind Immobilien AG (the Company ) and is not an offer of any securities or invitation to purchase any securities. The Presentation is provided for general information only and does not purport to contain all the information that may be required to evaluate the Company. The information in the Presentation is subject to updating, completion, revision and verification. No reliance may be placed for any purpose whatsoever on the information or opinions contained or expressed in the Presentation or on the accuracy, completeness or fairness of such information and opinions. To the extent permitted by law, no undertaking, representation or warranty or other assurance, express or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees, agents, affiliates, representatives or advisers, or any other person, as to the accuracy, completeness or fairness of the information or opinions contained in the Presentation. None of the Company, its affiliates, advisers, agents or any other party undertakes or is under any duty to update the Presentation or to correct any inaccuracies which may become apparent or to provide you with any additional information. No responsibility or liability is accepted by any such person for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred, however arising, directly or indirectly, from any use of, as a result of the reliance on, or otherwise in connection with, the Presentation. In addition, no duty of care or otherwise is owed by any such person to recipients of the Presentation or any other person in relation to the Presentation. The Presentation includes statements that are, or may be deemed to be, forward-looking statements. The words believes, expects, may, will, could, should, shall, risk, intends, estimates, aims, plans, predicts, continues, assumes, positioned or anticipates and similar expressions (or their negative) identify certain of these forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of the Company and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with financial markets, exchange rate fluctuations and competition from other companies, changes in laws and regulations affecting the Company and other factors. The Company does not assume any obligations to update any forward-looking statements. The Presentation includes statistics, data and other information from third-party sources. While the Company believes that these sources are reliable, the Company has not independently verified the data contained therein. Accordingly, undue reliance should not be placed on any of the third-party statistics, data and other information contained in the Presentation. The distribution of this Presentation in certain jurisdictions is restricted by law. Therefore, it must not be distributed, published or reproduced (in whole or in part) or disclosed by its recipients to any other person for any purpose, other than with the consent of the Company. All trademarks remain the property of their respective owners. By attending any delivery of the Presentation, you agree to be bound by the above limitations and conditions and, in particular, you represent, warrant and undertake to the Company that: (i) you will not forward the Presentation to any other person or reproduce or publish this document, in whole or in part, for any purpose; and (ii) you have read and agree to comply with the contents of this notice.!

3 Plattform for Investors in German Commercial Real Estate What is special about us 100% office (sqm)! Pure office portfolio in Germany! Only A cities/locations! Selected assets, value-add and core (+) only Superior organic growth more than 70% value upside! Strong organic growth in value-add segment! Vacancy reduction and market rents as NAV drivers No legacies 9 selected properties No structural vacancy 72% occupancy Very attractive financing +! 355 m tax loss carryforward! Company built from scratch no legacy portfolio! No legal or corporate legacies! Only assets which perfectly fit our strategy! Asset by asset aquisitions mean no assets with structural vacancy! Vacancy rate of 28% for portfolio can be reduced to fully let! Focus on commercial properties with USPs! Financing at currently low rates envisaged, low amortization payments! Solid net LTV-target of 45-55%!! 180m corporate tlcf,! 175m commerical tlcf,! 130m contribution account Management as major shareholders family and friends with 30% stake! CEO holds around 6% (12% incl. fin. Instruments)! Family and Friends together account for about 30%! All figures (!) as ofjan 2019, unless otherwise stated

4 GODEWIND IMMOBILIEN AG Who we are About Godewind! Stock-listed commercial real estate company with focus on office.! Successful blindpool-ipo on 5 April 2018 raising EUR 375 Mio.! Vision is to crate a commercial real estate portfolio of around EUR 3bn in the mid term.! First acquisitions with a volume of around EUR 740m executed.! Seasoned management team as a significant stakeholder with sustained track record for creating shareholder value (transaction volume of more than EUR 20bn). Frankfurt-Airport-Center, Hugo-Eckener-Ring, Frankfurt Akquisition-Strategy Portfolio-Strategy OFFICE ~ 60% Logistics, Hotels, etc. ~ 20% Other commercial ~ 20%! Focus on commercial properties and mixed commercial portfolios with earnings potential! Attractive assets with value potential and stable cash flows! Extensive and long established network creates opportunities for off-market transactions and bidding processes Value-Add ~ 40% Opportunistic ~ 20% Core(+) ~ 40%! Creating a portfolio with focus on office properties! Value creation through inhouse active asset-management! Consistent realization of development and appreciation potential!"#$%&'($)*$+&$,-.&/-$+0-$1#-2-##-3$1('+2&#/$2&#$)45-*+&#*$)4$6-#/'4$!22).-$7-'($8*+'+-!

5 Roadmap since IPO On track to build a leading German commercial real estate platform Our path towards a sound and profitable commercial property portfolio Q1 Business Concept & IPO-Team! Development of an unique acquisition and portfolio strategy based on the blindpool-ipo concept.! IPO-team with strong partners, e.g. Citigroup, J.P. Morgan. Q2 IPO at Frankfurt Stock Exchange! First successful real estate blindpool-ipo in Germany listed in Prime Standard.! Issue proceeds of! 375m. Traded on Xetra since 5 April Q3 Expansion of Management Team! New senior managers in finance and asset management.! Due diligence for more than! 2bln of assets. Q4 First Acquisitions of Properties! First acquisitions worth around! 740 million signed since October.! Portfolio consists of office properties with significant upside in attractive locations. Future Acquisitions from Pipeline! Further portfolio and asset acquisitions from pipeline! Mixed commercial portfolios and selective asset by asset approach Asset Management Optimizing Portfolio! Active asset management for realization of value add potential.! Focus on generating long-term and stable income streams for our investors.!

6 Acquisitions - Overview Acquisitions - Overview 100% Office 100% Office Volume of more than EUR 700m acquired in just about 3 months Investment portfolio size (sqm) 269,510 Godewind s Investment Market Locations of all 9 assets Rental income* (!m) 35.4/! 14.4** Vacancy rate 28 % Weighted average lease term*** 5 years Net purchaseprice (!m) /! 2,626 (per sqm) Dusseldorf 2 properties Cologne Frankfurt 3 properties Hamburg 2 properties Leipzig Berlin Gross initial yield 5 % Munich 2 properties! All figures as of January 2019, unless otherwise stated *total rent pro forma annualized **office rent per sqm, per month ***excluding break options

7 Key Performance Indicators Portfolio Overview Concentration on 4 top regions Portfolio Data Office by Office Lettable Area (m!) Vacancy Rate Rental Income p. a. ("m) Average Rent "/m! p. m. (office) Market Rent "/m! p. m. (office) WALT * (years) Net Purchase Price ("m) Net Purchase Price "/m! Gross Yield Gross Purchase Price ("m) Core (+) ComCon, Frankfurt 16, % , % 35.8 Airport Center, Dusseldorf 13, % , % 42.9 Pentahof, Hamburg 24, % , % 63.7 Zeughaus, Hamburg 43, % , % Subtotal Core (+) 97, % , % Value Add FAC, Frankfurt 48, % , %** Sunsquare, Munich 18, % , % 32.2 Eight Dornach, Munich 17, % , % 32.2 Y2, Frankfurt 31, % , % 55.3 Herzog-Terrassen, Dusseldorf 55, % , % Subtotal Value Add 171, % , % Total 269, % , % 739.9! All figures (!) as of Jan 2019, unless otherwise stated, *excluding break options, **excluding ground rent payments, incl.yield is 5.5%

8 Acquisition I - ComCon Center, Frankfurt (closing 31 October 2018) 1. Property KPIs 3. Business Execution Plan Year of construction 2002 Net purchase price! 33.5 m/2,060!/m" Rental income p.a. (1)! 2.0m (1) Yield/multiple (2) 6.0%/ 16.4x (2) Increase rental income through vacancy reduction Increase in-place rents through indexation and mark-tomarket at lease expiry Extend WALT through lease renegotiations and relettings 2.! Lettable area 16,264 m" Parking spaces (underground/outside) 374 (161/ 213) Avg. rent/m 2 (office)! Market rent/m 2 (office)! WALT (Years as of ) 3.1 Vacancy rate (area) 12.3% Investment Rationale Acquired a core+ investment opportunity in established office market in Frankfurt Niederrad The property includes c. 2,000 sqm of vacant office space which is planned to be let at market generating additional rent of c.! 0.3 m Indicative valuation at EUR 40.2 M, representing a multiple of 19.7x, equivalent to a lucky-by effect of EUR 4.4m(based on GPP of EUR 35.8m) (1) Rental income includes up to EUR 71k p.a. for the rented car parking spaces. (2) Yield/multiple based on the net purchase price. 4. Valuation Upside Target KPIs after Business Plan Execution Target market value! 44.9m Rental income p. a.! 2.3m Gross yield 5.1% Investment! 1.5m Indicative NAV uplift 70.0% /! 12.8m

9 Acquisition II - Airport Business Center, Dusseldorf (closing 30 November 2018) 1. Property KPIs 3. Business Execution Plan Year of construction 2003 Net purchase price! 40.0m/3,059!/m" Rental income p.a.! 1.8m Yield/multiple (1) 4.6%/ 21.7x Increase rental income through vacancy reduction Increase in-place rents through indexation and mark-tomarket at lease expiry Extend WALT through lease renegotiations and relettings 2. Lettable area 13,077 m" Parking spaces (underground/outside) 256 (153/ 103) Avg. rent/m 2 (office)! Market rent/m 2 (office)! WALT (Years as of ) 3.9 Vacancy rate (area) 16.6% Investment Rationale Asset deal - Acquired a core+ asset at Dusseldorf airport office district An indicative valuation puts the value of the property at EUR 43.0 M or a multiple of 20.1x Unique opportunity to acquire high quality office building in growth market 4. Valuation Upside Target KPIs after Business Plan Execution Target market value! 45.9m Rental income p. a.! 2.2m Gross yield 4.7% Investment! 1.3m Indicative NAV uplift 27.3% /! 6.0m! (1) Yield/multiple based on the net purchase price. 9

10 Acquisition III - sunsquare Kirchheim/Munich (closing 15 December 2018) 1. Property KPIs 3. Business Execution Plan 2.!" Year of construction 2000 Net purchase price! 30.5m/1,621!/m" Rental income p.a.! 0.8m Yield/multiple (1) 2.6%/ 38.0x Lettable area 18,820 m" Parking spaces (underground/outside) 683 (249/ 434) Avg. rent/m 2 (office) (2)! Market rent/m 2 (office) (3)! WALT (Years as of ) 3.7 Vacancy rate (area) 62.8% Investment Rationale Envisage full lease up of existing office building through lease up of c. 12,000 of vacant space Construction of convalescent home on site with one of the leading rehabilitation center operators in Germany with long-term WALT Valuation Upside Target KPIs after Business Plan Execution Acquired a very attractive value-add opportunity in Munich area with access to public transport in front of property High vacancy in existing building allows for strong value creation through lease up Additional value creation from development of c. 15,500 m! on existing additional plot which was incl. in transaction An indicative valuation puts the property at " 40.5m or 50.6x, reflecting a lucky-buy effect of " 8.3 m based on GPP. Fully let and incl. development asset value would be c. " 102 m Target market value Rental income p.a. Gross yield Investment Indicative NAV uplift! 102.0m! 5.1m 5.0%! 42.6m 217.0% /! 35.8m (1) Based on net purchase price. (2) The average square metre rent for office space is higher than the total average rent, because the site includes a canteen of 1,290m! which is currently paying no rent. (3) Source: JLL Advisory 4.

11 Acquisition IV Frankfurt Airport Center (closing 28 December 2018) 1. Property KPIs 3. Business Execution Plan Year of construction 1988/2016 Net purchase price (1)! 168.0m/3,490!/m" Rental income p.a. (2)! 10.0m Yield (1) /multiple (3) 5.5%/ 18.2x Lettable area 48,495 m" Parking spaces (underground/outside) 183 Avg. rent/m 2 (office) (2)! Market rent/m 2 (office) (3)! First refurbishments to upgrade building is expected to be finished in July this year. More value creating investments are planned Two new anchor leases (8,910 sqm or 18.5% of lettable area and! 1,74m) signed and currently space being refurbished Further upside through full lease up of remaining vacant space already under negotiationon 2. WALT (Years as of ) 6.1 Vacancy rate (area) 19.5% Investment Rationale Off market acquisition of a unique strategically located manage- 2-core asset directly linked to major hub Terminal 1 at Frankfurt airport. Excellent transport connections to motorways, short and long distance railway and underground network. The Airport subsegment has seen continuous growth over recent years Ongoing refurbishment to reposition property and increase attractiveness. 4. Valuation Upside Target KPIs after Business Plan Execution Target market value! m Rental income p. a.! 11.8 m Gross yield 4.8% Investment! 28.9m Indicative NAV uplift 79.3% /! 68.5m!! (1) Based on net purchase price. (2) The average square metre rent for office space is higher than the total average rent, because the site includes a canteen of 1,290m! which is currently paying no rent. (3) Source: JLL Advisory

12 Acquisition V Pentahof!, Hamburg (closing 31 January 2019) 1. Property KPIs 3. Business Execution Plan Year of construction (modernization) Net purchase price 1997! 60.6m/2,449!/m" Rental income p.a.! 3.1m Yield/multiple (1) 4.9%/ 20,4x Lettable area 24,747 m" Parking spaces (underground/outside) 460 (113/ 347) Avg. rent/m 2 pcm (office)! 9.40 Avg. market rent/m 2 (office)! Discuss with existing tenants options for lease extension at market rental level Develop office leasing scenarios based on anchor tenant needs Evaluate alternative use scenarios for hotel, residential and micro living 2. WALT (Years as of ) 4.8 Vacancy rate (area) 0.0% Investment Rationale Acquired underrented single tenant office building well located in direct vicinity of Hamburg airport Current tight office market provides attractive potential to renegotiate lease with existing tenant at expiry 4. Valuation Upside Target KPIs after Business Plan Execution Target market value! 68.3m Rental income p.a.! 3.1m Gross yield 4.6% Limited downside due to scarcity of large good quality office space in Hamburg Investment! 0.4m!" Very good location might provide attractive alternative use scenarios (1) Yield/multiple based on the net purchase price. Indicative NAV uplift 32.9% /! 10.8m

13 Acquisition VI Quartier am Zeughaus!, Hamburg (signing December 2018) 1. Property KPIs 3. Business Execution Plan Year of construction (modernization) Net purchase price 1927/(2000)/(2008)! 153,0m/3,515!/m" Rental income p.a.! 7.3m Yield/multiple (1) 4.8%/ 21x Increase rental income through vacancy reduction Increase in-place rents through indexation and mark-tomarket at lease expiry Extend WALT through lease renegotiations and relettings 2.!" Lettable area 43,522 m" Parking spaces 782 Avg. rent/m 2 pcm (office)! Market rent/m 2 (office)! WALT (Years as of ) 3.3 Vacancy rate (area) 10.6% Investment Rationale Acquired undermanaged high quality core asset in very attractive neighborhood Hamburg Eppendorf Short WALT and underrent situation provides significant upside potential Modern and flexible office space with very attractive top credit tenants (1) Yield/multiple based on the net purchase price. 4. Valuation Upside Target KPIs after Business Plan Execution Target market value! 187.7m Rental income p.a.! 7.8m Gross yield 4.1% Investment! 4.5m Indicative NAV uplift 47.5% /! 39.0m

14 Acquisition VII - Y2, Frankfurt (signing December 2018) 1. Property KPIs 3. Business Execution Plan Year of construction (modernization) Net purchase price 1997! 52,0m/1,681!/m" Rental income p.a.! 2.70m Yield/multiple (1) 5.2%/ 19.3x Develop marketing and leasing strategy Highly attractive for public sector tenants due to excellent public transport connection and relatively modest rent level Increase rent by lease up of remaining vacant space 2. Lettable area 31,256 m" Parking spaces 567 Avg. rent/m 2 (office)! Market rent/m 2 (office)! WALT (Years as of ) 5.5 Vacancy rate (area) 35.3% Investment Rationale Acquired a value add office property located in office district Mertonviertel in Frankfurt Property benefits from excellent connections via public transport with underground station next to the asset and very good connection by car in all directions Value creation through lease up of remaining vacant space 4. Valuation Upside Target KPIs after Business Plan Execution Target market value! 67.0m Rental income p.a.! 4.3m Gross yield 6.4% Investment! 4.3m!". (1) Yield/multiple based on the net purchase price. Indicative NAV uplift 49.0% /! 13.9m

15 Acquisition VIII - `Eight Dornach!, Aschheim/Munich (closing 31 January 2019) 1. Property KPIs 3. Business Execution Plan 2.!" Year of construction (modernization) Net purchase price Acquired undermanaged value-add property in submarket Aschheim in Munich area Attractively located with good connection by car and public transport in highly liquid office submarket Significant underrent leaves substantial upside through renegotiation of existing leases and vacancy reduction Significant upside given new fintech group is moving into neighbourhood allowing for repositioning asset.. (1) Yield/multiple based on the net purchase price. 1997! 30,0m/1,703!/m" Rental income p.a.! 1.1m Yield (1) /multiple 3.6%/ 27.5x Lettable area 17,612 m" Parking spaces 279 Avg. rent/m 2 (office)! Market rent/m 2 (office)! WALT (Years as of ) 4.2 Vacancy rate (area) 51.1% Investment Rationale 4. Develop marketing strategy and light refurbishment measures to benefit from high demand from tenants in submarket Lease up property to very good credit tenants after repositioning of the asset Valuation Upside Target KPIs after Business Plan Execution Target market value! 51.0m Rental income p.a.! 2.5m Gross yield 4.9% Investment! 3.9m Indicative NAV uplift 114.1% /! 18.8m

16 Acquisition IX Herzog-Terassen, Düsseldorf (signing January 2019) 1. Property KPIs 3. Business Execution Plan Year of construction (modernization) Net purchase price 1980/2014! 140,0m/2,513!/m" Rental income p.a.! 6.7m Yield (1) /multiple 4.8%/ 20.8x Lettable area 55,717 m" Parking spaces 962 Avg. rent/m 2 (office)! Market rent/m 2 (office)! Extend and sign new contracts to full occupancy Reposition asset through diversified tenant mix and offering large lettable areas for medium sized national and international companies Adjusting current office rent towards market rent 2. WALT (Years as of )!"# 6.4 Vacancy rate (area) 45.4% Investment Rationale Asset deal, off-market. Acquired a manage to core icon-asset in Dusseldorf inner city An indicative valuation puts the value of the property at EUR M or a multiple of 26.9x Unique opportunity to extend lease contracts and reduce vacancy. Strong tenant base such as Deutsche Bank, NRW Bank, Oddo, Mitsui. 4. Valuation Upside Target KPIs after Business Plan Execution Target market value! 225.0m Rental income p.a.! 11.5m Gross yield 5.1% Investment! 21.9m Indicative NAV uplift 96.3% /! 73.8m!" (1) Excluding exeptional right of termination. NRW Bank has an exeptional right of termination between years 3-5 for 1,400 sqm and after 8 years for the whole space. Including this WALT would be 5.8

17 Portfolio Tenant Structure Economically Solid Tenant Split Top 10 Tenant Base!"#$%&'(#)*+",-%-'!"#$%!"#$%&'(#)*+"'!&'#(% /01.'!&'#)*+,-%!"#$%&'())*+)),./0. 1/2 0/ /24 1/3 5/ /.0 7/7 0/ /36 5/6./ /74./8 1/ /32./8 3/ /41 3/2 1/ /48 3/1./ /45 3/8 06/ /1. 3/. 6/3 006.*,'."#%#$ ? 9:;*, 08/1 64/. 5/2.*$%& ::-: 4-:."#%#$!"#$$ %#&'()* %+%,,,,,,,,!"#!" ;<"=($<">*<+(1) (1) $" #"!" 05/4( %" &" '" (" (" (" )" &*+(", -./012 High tenant diversification with outstanding credit ranking Creditreform Bonitätsindex and the corresponding PD (Probalitity of Default) calculates the risk of default of a debtor within one year according to Bale II criterias. Applied on Creditreform a score of 500 to 600 means default. 224 or 0.38% for example is a good rating. 100 is the top ranking and 600 is the worst ranking. The average in Germany is 1.42%.

18 The Management Team Skilled Real Estate Professionals Organisation Board CEO Stavros Efremidis CFO Ralf Struckmeyer Finance & IT Asset & Property Management M&A Capital Markets Legal & Personal, Administration Acquisition & Sales !"#$ Jan Ohligs Christian Kaiser Marcus Sälinger Ivo Mokroß Max Bensel! Position: Head of M&A and Corporate Finance! Experience: >15 years experience in the real estate industry and the management of real estate transactions! Background: Since August 2018 Jan is responsible for the M&A and Corporate Finance at Godewind. Prior to joining Godewind Jan was leading the property business in Germany, Austria and Switzerland at American investment bank Jefferies International Ltd.! Position: Head of Acquisition and Sales! Experience: >15 years experience in the real estate industry, thereof ten years in purchase and sale of properties! Background: Previously Christian was the Head of Acquisition and Sales at WCM. Between he was the Head of Acquisitions and Project Manager at conwert Germany where he joined from KWG AG. Christian started his career at Union Investment.! Position: Head of Asset Management.! Experience: > 11 years experience in the real estate industry! Background: Since September 2018 Marcus is responsible for asset management at Godewind. Previously Marcus was in charge of asset management at Principal Real Estate Europe. Overall Marcus has 11 years of experience in real estate.! Position: Head of Property Management! Experience: >29 years of real estate experience, thereof 18 years in Asset Management! Background: Ivo is in charge of the property management at Godewind. He came from WCM where he was the Head of Asset Management since He also held executive positions at Kommunale Wohnen AG between ! Position: Head of Accounting! Experience: >25 years of experience in finance and tax management! Background: Max manages all tax and accounting issues at Godewind. Before joining GWD he was Head of Finance at WCM overseeing the tremendous growth of WCM financially. Prior to that he was HoF at KWG Kommunale Wohnen AG between Max Bensel started his career in tax advisory at BDO.!"

19 CONTACT Stavros Efremidis Kufürstendamm Berlin Investor Relations Gunnar Janssen