Q1 2019 Investor Presentation
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Plattform for Investors in German Commercial Real Estate What is special about us 100% office 269,510 (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 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 Very attractive financing + 355 m tax loss carryforwards Financing of ~1.5% for 5 years envisaged, low amortization payments Solid net LTV-target of 45-55% 180m corporate tlcf, 175m commerical tlcf, 130m contribution account Mgmt as major shareholders family and friendswith>30% stake CEO holds around 6% (12% incl. financial Instruments) Family and friends together account for about 37% 3 All figures ( ) as ofjan2019, unless otherwise stated *target after business plan execution
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 375m» Vision is to create a commercial real estate portfolio of around 3bn in the mid term.» First acquisitions with a volume of around 740m executed.» Seasoned management team as a significant stakeholder with sustained track record for creating shareholder value and transaction volume of more than 20bn. Frankfurt-Airport-Center, Hugo-Eckener-Ring, Frankfurt Akquisition-Strategy 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 Our Goal is to become the Preferred Platform for Investors in German Office Real Estate 4
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 a 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 2018. Q3 Expansion of Management Team» New senior managers in finance and asset management.» Due diligence for more than 2bn of assets. Q4 First Acquisitions of Properties» First acquisitions worth around 740m signed since October 2018.» Portfolio entirely 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 from 2bn + pipeline. 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. 5
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 Rental income* ( m) 35.4/ 14.4** Vacancy rate 28 % Weighted average lease term*** 5 years Net purchaseprice ( m) 707.6 / 2,626 (per sqm) Gross initial yield 5 % Godewind s Investment Market - Locations of all 9 assets Hamburg 2 properties Berlin Dusseldorf 2 properties Leipzig Cologne Frankfurt 3 properties Munich 2 properties 6 All figures as of January 2019, unless otherwise stated, *total rent pro forma annualized, **office rent per sqm, per month, ***excluding break options
Portfolio Overview Concentration on 4 top regions Portfolio Data Office by Office Lettable Area (m²) Vacancy Rate Rental Income p. a. ( m) Average Rent /m² p. m. (office) WALT (years) Net Purchase Price ( m) Net Purchase Price /m² Gross Yield Gross Purchase Price ( m) Core (+) ComCon, Frankfurt 16,264 12.3% 2.0 10.50 3.1 33.5 2,060 6.0% 35.8 Airport Center, Dusseldorf 13,077 16.6% 1.8 13.00 3.9 40.0 3,059 4.6% 42.9 Pentahof, Hamburg 24,747 0.0% 3.0 9.41 4.8 60.6 2,449 4.9% 63.7 Zeughaus, Hamburg 43,522 10.6% 7.3 12.90 3.3 153.0 3,515 4.8% 160.0 Subtotal Core (+) 97,610 9.9% 14.1 11.71 3.7 287.1 2,941 4.7% 302.4 Value Add FAC, Frankfurt 48,495 19.5% 10.0 20.70 6.1 168.0 3,490 5.9%** 168.3 Sunsquare, Munich 18,820 62.8% 0.8 11.47 3.7 30.5 1,621 2.6% 32.2 Eight Dornach, Munich 17,612 51.1% 1.1 10.00 4.2 30.0 1,703 3.6% 32.2 Y2, Frankfurt 31,256 35.3% 2.7 11.12 5.5 52.0 1,681 5.2% 55.3 Herzog-Terrassen, Dusseldorf 55,717 45.4% 6.7 19.00 6.4 140.0 2,513 4.8% 149.4 Subtotal Value Add 171,900 38.7% 21.3 16.81 5.9 420.5 2,446.2 5.1% 437.4 Total 269,510 28.0 % 35.4 14.41 5.0 707.6 2,626 5.0% 739.8 7 All figures ( ) as of Jan 2019, unless otherwise stated, *sources: Thomas Daily, JLL, Cushman, Colliers, Savills, CBRE, Godewind reserach, **excl. ground rent payments, incl.yield is 5.5%,
Acquisition I - `ComConCenter, Frankfurt Highlights» Asset Deal, closing 31 October 2018» An indicative valuation puts the value of the property at 40.2 million, which represents a multiple of 19.7x, equivalent to a Lucky-Buy effect of 4.4 million (based on the gross purchase price of 35.8 million).» The property also includes 1,090 square metres of vacant office space, which is currently at the enhanced shell stage of construction. This space will be let before the contruction works are finished.» The Niederrad district has become an important office location in Frankfurt in recent years. Demand for office space in this strategiacally attractive location between the airport and the city centre has risen steadily in recent years and the high vacancy rates of the past have been reduced significantly. Images Property KPIs Year of construction 2002 Net purchase price 33.5m/2,060 /m² Rental income p.a. (1) 2.0m (1) Yield/multiple (2) 6.0%/ 16.4x (2) Lettable area 16,264 m² Parking spaces (underground/outside) Avg. rent/m 2 (office) Market rent (office) 374 (161/ 213) 10.50 p.m. 13.50 p.m. WALT (Years as of 1.01.2019 ) 3.1 Vacancy rate (area) 12.3% (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. 8
Acquisition II - `Airport Business Center, Dusseldorf Highlights» Asset Deal, closing 30 November 2018» An indicative valuation puts the value of the property at 43.0 million, which represents a multiple of 20.1x.» As of April 2019 the property will also have 1,994 square metres of vacant office space, which is currently let for 12.42 per square metres. This vacant space is to be let for around 14.00 per square metres, per month.» The Airport Business Center is located right at the exit from the A52 motorway and benefits from excellent connections to both the motorway network and Düsseldorf International Airport. The Airport subsegment is currently seeing continuous enhancement, which is reflected in steadily rising prime rents. Property KPIs Year of construction 2003 Net purchase price 40.0m/3,059 /m² Rental income p.a. 1.8m Yield/multiple (1) 4.6%/ 21.7x Lettable area 13,077 m² Parking spaces (underground/outside) Avg. rent/m 2 (office) 256 (153/ 103) 13.00 p.m. Market rent (office) 14.00 p. m. WALT (Years as of 1.01.2019 ) 3.9 Vacancy rate (area) 16.6% Images 9 (1) Yield/multiple based on the net purchase price.
Acquisition III - `sunsquare, Kirchheim/Munich Highlights» Asset Deal, closing 15 December 2018» Advanced negotiations are in progress with one of the biggest rehabilitation center operators in Germany about the construction of a convalescent home on the site.» An indicative valuation puts the value of the property at 37.1 million, which represents a multiple of 46.2x, equivalent to a lucky-buy effect of 4.9 million (based on the gross purchase price of 32.2 million).» The office complex is located in Kirchheim-Heimstetten, a prosperous suburb of Munich. Its proximity to Munich and the optimal infrastructure have persuaded many well-known companies to settle down in the immediate vicinity. Property KPIs Year of construction 2000 Net purchase price 30.5m/1,621 /m² Rental income p.a. 0.8m Yield/multiple (1) 2.6%/ 38.0x Lettable area 18,820 m² Parking spaces (underground/outside) Avg. rent/m 2 (office) (2) Avg. market rent/m 2 pcm (office) (3) 683 (249/ 434) 11.47 p.m. 12.00 p.m. WALT (Years as of 1.01.2019 ) 3.7 Vacancy rate (area) 62.8% Images 10 (1) Based on the net purchase price. (2) The average square metre rent for office space is higher than the total average rent, because the site includes a canteen of 1,290m² which is currently paying no rent. (3) Source: JLL Advisory
Acquisition IV - `Frankfurt Airport Center Highlights» Share Deal, closing28 December 2018» Two new anchor leases (8,910 square metres or 18.5% of the lettable area and 1,736k rent p.a.) already signed with tenants from the aviation industry.» Refurbishment of rental areas is in progress, completion expected for April and July 2019.» An existing financing of 88.0 million is included in the transaction. Additionally a total sum of 27.0 million which is available for capex and tenant fittings.» The Frankfurt Airport Center is a unique asset with a direct link to the Terminal 1 of the Frankfurt airport. It also benefits from excellent connections to the motorway- and railway-network. The Airport subsegment has seen continuous enhancement overrecent years, which is reflected in steadily rising prime rents. Property KPIs Year of construction 1988/2016 Net purchase price (1) 168.0m/3,490 /m² Rental income p.a. (2) 10.0m Yield (1) /multiple (3) 5.5%/ 18.2x Lettable area 48,495 m² Parking spaces (underground/outside) Avg. rent/m 2 (office) (2) Avg. market rent/m 2 (office) 183 20.70 p.m. 21.00 p.m. WALT (Years as of 1.01.2019 ) 6.1 Vacancy rate (area) 19.5% Images 11 (1) Purchase price excluding already agreed refurbishing and capex for new rent contracts with Operational Services and Star Alliance for EUR 7.7 million p.a. (2) Rental income adjusted for the two signed rental contracts with Operational Services and Star Alliance. As per 01.11.2018 rental income excluding these contracts is EUR 8.4 million. (3) Yield/ multiple including deduction of ground rent.s
II. I. Acquisitions Objektparameter - Pentahof, Hamburg (cont d) Suhrenkamp 71-77, Hamburg Acquisition V - `Pentahof, Hamburg Highlights» Asset Deal,closing 31 January 2019.» An indicative valuation puts the value of the property at 64.2 million, which represents a multiple of 21.7x.» Major tenant with 98% of the overall space is an international oil company with top credit rating. However the space used by the major tenant, declined gradually over the past few years and currently is at 89% due to sub-letting.» The annualised funds from operations (FFO) before overheads are more than 2.13 million. This represents an initial FFO yield of about 7.7 per cent before overheads.» The Pentahof is located in the subsegment Hamburg Fuhlsbüttel/Airport and benefits from excellent connections to both the motorway A7 and Hamburg International Airport. The asset is very flexible and can be used as multi- or single tennant property. Images Property KPIs Year of construction (modernization) Net purchase price 1997 60.6m/2,449 /m² Rental income p.a. 3.0m Yield/multiple (1) 4.9%/ 20,4x Lettable area 24,747 m² Parking spaces (underground/outside) Avg. rent/m 2 pcm (office) Avg. market rent/m 2 (office) 460 (113/ 347) 9.41 p.m. 10.50 p.m. WALT (Years as of 1.01.2019 ) 4.8 Vacancy rate (area) 0.0% 12 (1) Yield/multiple based on the net purchase price.
Acquisition VI - `Quartier am Zeughaus, Hamburg Highlights» Asset Deal, signed in December 2018.» An indicative valuation puts the value of the property at 164 million, which represents a multiple of 24.5x.» Major tenants are telecoms, media-groups, leasing companies, hospital service and other service providers.» The asset offers short term upside potential due to a vacancy rate of 10.6% and market rent of 14.5 plus, per square metre.» The Zeughaus is located in Hamburg Eppendorf, one of the most renown quarters in Hamburg with rising rents and a very attractive tennant mix. The asset offers very high quality offices and is very flexible in terms of usage. Property KPIs Year of construction (modernization) Net purchase price 1927/(2000)/(2008) 153.0m/3,515 /m² Rental income p.a. 7.3m Yield/multiple (1) 4.8%/ 21x Lettable area 43,522 m² Parking spaces 782 Avg. rent/m 2 pcm (office) Avg. market rent/m 2 pcm (office) 12.90 p.m. 14.50 p.m. WALT (Years as of 1.01.2019 ) 3.3 Vacancy rate (area) 10.6% Images 13 (1) Yield/multiple based on the net purchase price.
II. I. Acquisitions Objektparameter - Pentahof, Hamburg (cont d) Suhrenkamp Acquisition 71-77, VII -Hamburg `Y2, Frankfurt Highlights» Asset Deal, closing 13 February 2019.» An indicative valuation puts the value of the property at 54 million, which represents a multiple of 20x.» Major tenants are amongst others Jobcenter Frankfurt, City of Frankfurt, and other service providers.» The asset offers short term upside potential due to a high vacancy of 35.7% and market rent of 12 plus, per square metre p.m.» The Y2 is located in the so called Merton quarter and benefits from excellent connections to downtown Frankfurt (subway station directly next to the building). The asset is very flexible and can be used for smaller multi-office purpose or as large-office property. Object KPIs Year of construction (modernization) Net purchase price 1997 52.0m/1,681 /m² Rental income p.a. 2.70m Yield/multiple (1) 5.2%/ 19.3x Lettable area 31,256 m² Parking spaces 567 Avg. rent/m 2 pcm (office) Avg. market rent/m 2 (office) 11.12 p.m. 12.00 p.m. WALT (Years as of 1.01.2019 ) 5.5 Vacancy rate (area) 35.3% Images 14. (1) Yield/multiple based on the net purchase price.
Acquisition VIII - `Eight Dornach, Aschheim/Munich Highlights» Asset Deal, closing 31 January 2019» An expected valuation puts the value of the property at 50 million, once fully let and with an annualised rent of 2.6 million which represents a a valuation gain of 12.3 million.» Eight Dornach benefits from excellent connections to downtown Munich and is flexibilitiy as it can be used for smaller multi-office purpose as well as a large-office property or a combination of both. It is also only 5 car minutes away from the Munich fair-ground.» The asset offers short term upside potential due to high vacancy of 51.1% and market rent of 12.5 per square metre p.m.» Eight Dornach is located in the so called business-park ExpoGate Munich-Dornach directly on the Munich city border. Object KPIs Year of construction (modernization) Net purchase price 1997 30.0m/1,703 /m² Rental income p.a. 1.1m Yield (1) /multiple 3.6%/ 27.5x Lettable area 17,612 m² Parking spaces 279 Avg. rent/m 2 pcm (office) Avg. market rent/m 2 (office) 10.00 p.m. 12.50 p.m. WALT (Years as of 1.01.2019 ) 4.2 Vacancy rate (area) 51.1% Images. (1) Yield/multiple based on the net purchase price.
Acquisition IX - `Herzog-Terassen, Düsseldorf Highlights» Asset Deal, off-market transaction, signed in January 2019.» The assset is located right in downtown Düsseldorf just 500m of Königsallee. The former head quarter of WestLB is a now a multi tenant asset with very flexible office space and an upmarket infrastructure.» The property is located on a 16,300 sqm plot and is perfectly suitable for tenants from the financial- and service-industry offering security service, inhouse restaurant, coffe shops and one of the largest underground car parks in Dusseldorf.» An indicative valuation puts the value of the property at 180.0 million or a multiple of 26.9x. The asset offers short term upside potential due to high vacancy of 51.1% and market rent of 12.5 per square metre.» Unique opportunity to extend lease contracts and reduce vacancy. Strong tenant base of international banks and trading companies. Images Object KPIs (1) Year of construction (modernization) Net purchase price 1980/2014 140,0m/2,513 /m² Rental income p.a. 6.7m Yield (1) /multiple 4.8%/ 20.8x Lettable area 55,717 m² Parking spaces 962 Avg. rent/m 2 pcm (office) Avg. market rent/m 2 (office) 19.00 p.m. 20.50 p.m. WALT (Years as of 1.01.2019 ) (1) 6.4 Vacancy rate (area) 45.4% (1) Yield/multiple based on the net purchase price 2) Excluding exeptional right of termination. NRW Bank has an exeptional right of termination between years 3-5 for 1,400 sqm and after 8 years for the whole space. Including this WALT would be 5.8
Portfolio Tenant Structure Economically Solid Tenant Base Tenant Split Top 10 Tenant Rental income p.a. ( M) Rental income (in %) WALT (in years) Creditreform Score (100-600) (1) 3.13 8.9 3.0 136 Shell Germany 2.90 8.2 4.9 GMG mbh 2.31 6.6 1.6 2.25 4.5 8.0 100 184 121 9% 8% 14.0% 7% 6% 5% 4% 3% 3% 1.60 3.7 3.0 211 3% 2% 1.29 3.7 4.9 127 50.3% Others 1.08 2.9 8.0 141 1.07 2.8 2.8 197 1.04 2.7 5.9 0.83 2.3 12.5 113 115 High tenant diversification with outstanding credit rating Top Tenants Other 17.5 49.6 5.1 17.9 50.3 4.9 142 17 Total 35.4 100.0 5.0 All figures ( ) as ofjan 2019, unless otherwise stated (1) 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%.
Property Opportunities Substantial Upside Value potential to be uncovered DETAILED EPRA NAV DEVELOPMENT* 279 380 Commentary 1 Standalone Asset View Acquisition yield and entry LTV of 54% Annual indexation of rental income (1.5%-2.0%) No yield compression 3 Godewind s Asset Management Uplift of rental income to market rent via renewal of rental contracts (Core (+) Assets) Vacancy reduction at market rent levels to make full use of the existing potential of the portfolio (Value Add Assets) 2 Capitalizing of Godewind s Tax Loss Carryforwards Capitalisation based on estimated tax savings and expected German corporate income tax rate 4 Godewind s Value-Add Strategy / Core(+) Reduction of vacancy towards stabilized levels Conservative assumptions on downtime, rent-free periods as well as Tenant Improvements (TIs) 18 * Possible developments after business plan execution
Value Creation Example Frankfurt Airport Center 1. Property KPIs 3. Business Execution Plan Year of construction 1988/2016 Net purchase price (1) 168.0m/3,490 /m² First refurbishments to upgrade building is expected to be finished in July this year. More value creating investments are planned Rental income p.a. (2) 10.0m Yield (1) /multiple (3) 5.5%/ 18.2x Lettable area 48,495 m² Parking spaces (underground/outside) Avg. rent/m 2 (office) (2) 183 20.70 p.m. 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 negotiation Market rent/m 2 (office) 21.00 p.m. WALT (Years as of 1.01.2019 ) 6.1 Vacancy rate (area) 19.5% 4. Valuation Upside* 2. 19 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 transportation connections to motorways, short and long distance railway and subway network. The Airport subsegment has seen continuous growth over recent years Ongoing refurbishment to reposition property and increase attractiveness. Target KPIs after Business Plan Execution Target market value Rental income p. a. 244.8 m 11.8 m Gross yield 4.8% Investment 28.9m Indicative NAV uplift 79.3% / 68.5m (1) Purchase price excluding already agreed refurbishin and capex for new rent contracts with Operational Services and Star Alliance for 7.7 million. (2) Rental income adjusted for the two signed rental contracts with Operational Services and Star Alliance. As per 01.11.2018 rental income excluding these contracts is 8.4 million. (3) Yield/ multiple including deduction of ground rent. * Possible developments after business plan execution.
CONTACT Stavros Efremidis Kantstraße 164 10623 Berlin www.godewind-ag.com Investor Relations Gunnar Janssen +49 69 271 3973 213 +49 175 29 76 763 g.janssen@godewind-ag.com