deutsche industrie reit-ag (dir) · would lead to higher density ... unconventionally and to find...

Deutsche Industrie REIT-AG (DIR)Company Presentation

September 2020

Content

▪ 9M 2019/2020 Highlights

▪ Strategy & Business Model

▪ Market Overview

▪ Real Estate Portfolio

▪ Valuation

▪ Acquisitions

▪ Financing

▪ Results 9M 2019/2020

▪ DIR Shares & Investor Relations

-------------------------------------------------

▪ Appendix: Glossary, Disclaimer

2

9M 2019/2020 Highlights

Highlights 9M 2019/2020

Key figures

4

Properties

73

Portfolio

Value

582.3 m€

Commercial

Space

1.30m sqm

Annualised

In-Place Rent

48.1 m€

FFO

18.3 m€

LTV

38.7%

REIT equity

ratio

63.6%

Net rental

Income

29.7 m€

Pro forma

Portfolio YTD*

Key Figures

9M 2019/2020

Land Bank

3.1m sqm

* Based on pro forma portfolio as of 13/08/2020 = including notarised properties YTD with transfer of ownership after 30/06/2020

2019/2020

FFO-Guidance

23-25 m€

Revaluation

gains

35.4 m€

Occupancy

88.0%

Highlights 9M 2019/2020

Key figures

5

0.40

0.64

9M 2018/2019 9M 2019/2020

FFO per share (€)

7.74

11.53

30/09/2019 30/06/2020

EPRA NAV per share (€)

Avg. # of

shares 21,280,287 28,363,575 # of shares 23,451,945 32,079,505

Corona update

• Still no significant material impact

• Rent recivables increased from 1.2 m€ (31/03/20) to 3.6 m€ (30/06/20) mainly due to agreed deferrals

• 1.7 m€ total volume of agreed deferrals

• One major tenant (35% of deferrals) declared to skip the deferral and will pay normally from 08/2020

Strategy &

Business Model

Strategy & Business ModelCombining cash flow properties with lean admin structure and REIT

▪ Focused on Light Industrial properties

(business parks, logistic centers, production facilities etc.)

▪ Well established properties with good infrastructural

connections and regional relevance

▪ Occupying a niche which is situated below the investment

criteria of institutional investors and above the requests of

private investors

▪ Lean company structure and low administrative expenses

▪ Valuation potential due to low purchase prices, vacancy

reduction, rent increases

▪ Further growth of the portfolio mitigates single-asset risks and

stabilises the whole portfolio leading to more diversity

▪ REIT combines our asset strategy with lean admin structures,

tax exemption on company level and provides attractive

dividends for shareholders

Strong cash flow generating portfolio

Stable and efficient financial structure

Lean company structureAdvantages from REIT

structure

Value creation by active asset management

Attractive and stable dividends

+

+

++

=

7

Strategy & Business ModelReal estate investment company focussed on Light Industrial

▪ DIR owns a huge land area of 3.1 million sqm.

▪ Light Industrial is the lowest possible type of

development for land

▪ Usually low buildings

▪ Land utilisation is only 50%

▪ Construction of taller buildings and increased utilization

would lead to higher density

▪ New construction with upgrade in for instance office or

residential use is possible

8

Increasing market rents

Shrinking product supply

No significant new

construction due to current low rent level

Restrictive approval

practice for industrial areas

Conversion into more

valuable types of uses

(residential, office etc.)

Growing demand

Strong economic

fundamentals in Germany

Need for more storage and

logistics spaces due to

booming online shopping

Rent development potentialLand development potential

Strong continuous growth with acquisition at high yields around 10%

Increasing land value

Built up a Light Industrial real estate platform

with multi-dimensional value enhancing potential

where the whole is worth more than the individual parts

Strategy & Business ModelInvestment approach & Deal sourcing

Investment criteria

▪ Locations with good infrastructural connections and regional relevance

▪ Pure Light Industrial and logistic uses

▪ High initial vacancy is not necessarily a hurdle

▪ Good over-all substance with possible need for renovation and development

▪ Initial yield: Preferably over 10% p.a. (on the basis of the in place rent)

▪ Volume from <1 m€ up to 50 m€ per transaction

▪ Only asset deals, single assets and small portfolios

9

Sale & lease back

Typical Seller / Sales Reason

SplittingOpco/ Propco

Insolvency /stressed

companies

Enterprise

Succession

Non-institutional

owners

Conversion properties

Leftovers from big portfolios

Capital recycling

Deal sources

Broker DIR

networkPublic

auctionsOther

Our competitive advantages:

• Quick decisions due to lean company structure

• Focused and flexible acquisition team

• Fast payment due to equity financing

• Well-defined investment strategy with pure focus on one asset class

• Comprehensive and transparent reporting

Strategy & Business ModelValue add approach

Tenant network

With the expansion of

the portfolio also our

network of potential

tenants grows which

can be advantageous

Tenant

relationship

We want to be a

reliable and long-term

partner and are in

continuous

discussions to

understand tenants

needs with the aim to

generate win-wins

Risk/Chance

analysis before

purchase

We try to get a vision

of the asset, location

and useful future

uses based on

current market

demand

Creativity and

flexibility

We try to think

unconventionally and

to find new concepts

to recover a property

Pro-active asset

management

Our team consists of

experienced and

motivated full-time

asset managers

10

Market Overview

German Light Industrial MarketOverview of the commercial real estate market in Germany

Key facts:

▪ 27 % of the total commercial market value are company properties

▪ New Constructions of company properties H2 2019:

• 49.0 % Light manufacturing properties

• 26.7 % Logistics space

• 21.4 % Business parks

• 2.8 % Converted properties

Source: bulwiengesa, Market Report – Transparency on Germany’s Industrial Real Estate Market (H2 2019) 12

Industrial space1,359.0

Space in smaller properties310.0

Office properties400.0

Retail properties120.0

Company properties957.6

Total commercial floor space (million sqm)

Company properties 563.6

Industrial space475.7Space in smaller

properties93.0

Office properties600.0

Retail properties360.0

Market values of commercial real estate (billion EUR)Converted

properties 43.0 Business parks14.5

Warehouse/ logistsics space

205.7

Light maufacturing

properties 300.5

Market values of company properties (billion EUR)

1,175.5

714.4

918.6871.0

988.8

772.6

538.5

H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019

New constructions company properties (sqm in thousand)

German Light Industrial MarketInvestment market - corporate properties

Key facts:

▪ Doubling of the investment volume in the second half of 2019, highest transaction volume so far, still short supply on the market

▪ More transactions in less documented market regions / more off-market deals

▪ H2 2019: 12.6 % portfolio transactions / 87.4 % single transactions

▪ In 2019 > 58.0 % buyers from Germany, further ∿ 24.0 % from Europe


5.9%6.4%

8.7%

7.8%

Converted properties Warehouse-/ logisticsproperties

Business parks Light manufacturingproperties

Average gross initial yields (%)

2,052

953796

1,803

1,084

2,408

H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019

Investment volume (mEUR)

German Light Industrial MarketLetting market - corporate properties

Key facts:

▪ Dynamic economic cycle keeps take-up on high level

▪ Lack of available space characterises the rental market

▪ Space take-up decreases significantly in 2nd half of 2019 (+14.5 %)

▪ High demand for properties and space meets less supply

▪ New leases for longer terms and efforts to conclude quick follow-up

leases


5.50 5.00 4.50

9.438.10

5.90

13.57

16.30

8.80

Office / Social space Flex Space Light manufacturing space

Rents by floor space type (EUR/sqm)

Min. rent Average rent Prime rent

593.0

466.5499.5

357.0

246.0281.5

H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019

Take-ups (sqm in thousand)

1.1

8.76.2

16.5

11.4

37.7

18.5

Lease term weighted by take-ups (%)*based on new contracts

rolling < 1 year 1 to 2 years 2 to 3 years 3 to 5 years 5 to 10 years > 10 years

Real Estate

Portfolio

PortfolioSustainable external and internal growth

1 Based on pro forma portfolio as of 13/08/2020= including notarised properties YTD with transfer of ownership after 30/06/202016

Absolute growth year on year and pro forma1 Like-for-like development2

42

64

73

06/2019 06/2020 Pro forma

No. of properties

88.586.8

88.0

06/2019 06/2020 Pro forma

Occupancy (%)

4.95.0

5.1

06/2019 06/2020 Pro forma

WALT (years)

357.2

547.0582.3

06/2019 06/2020 Pro forma

GAV (m€)

30.1

44.348.1

06/2019 06/2020 Pro forma

Annualised in-place rent (m€)

3.44

3.56

3.43

06/2019 06/2020 Pro forma

IPR (€/sqm)

30.1 30.5

06/2019 06/2020

Annualised in-place rent (m€)

3.44 3.54

06/2019 06/2020

IPR (€/sqm)

88.587.6

06/2019 06/2020

Occupancy (%)

357.2380.7

06/2019 06/2020

GAV (m€)

2 Based on 28 properties on both balance sheet dates

Federal State Properties Commercial space Annualised rent % of rent

North Rhine-Westphalia 25 371,460 sqm 13,815 k€ 28.7%

Lower Saxony 8 265,436 sqm 7,987 k€ 16.6%

Bavaria 6 125,109 sqm 7,731 k€ 16.1%

Baden-Wurttemberg 8 172,929 sqm 7,042 k€ 14.6%

Mecklenburg Western Pomerania 7 119,742 sqm 3,082 k€ 6.4%

Brandenburg 5 46,399 sqm 2,204 k€ 4.6%

Saxony-Anhalt 6 58,466 sqm 1,920 k€ 4.0%

Thuringia 4 57,150 sqm 1,680 k€ 3.5%

Rhineland Palatinate 1 20,905 sqm 1,043 k€ 2.2%

Saarland 1 44,084 sqm 948 k€ 2.0%

Bremen 1 9,496 sqm 420 k€ 0.9%

Berlin 1 8,816 sqm 228 k€ 0.5%

Total 73 1,299,991 sqm 48,100 k€ 100.0%

PortfolioBroad regional allocation

17

Pro forma portfolio as of 13/08/2020 = including notarised properties YTD with transfer of ownership after 30/06/2020Source | Google Maps

Portfolio as of 30/06/2020

Acquired properties

with transfer after 30/06/2020

Every location of our properties can be found here:

DIR Properties in Google maps

https://drive.google.com/open?id=1gyEBViyKKFqtPnR-zT67JRjPR1fHb7xt&usp=sharing

Letting structureNumber of

properties

Annualised

rent

% of

rent

IPR p.

sqm

Occupancy

commercialWALT

multi tenant 19 17,304 k€ 36.0% 4.82 € 71.3% 3.8

dominating major tenant 24 14,679 k€ 30.5% 2.92 € 92.4% 4.8

single tenant 30 16,117 k€ 33.5% 3.00 € 98.5% 6.6

Total 73 48,100 k€ 100.0% 3.43 € 88.0% 5.1

PortfolioDiversified mix of uses

18Pro forma portfolio as of 13/08/2020 = including notarised properties YTD with transfer of ownership after 30/06/2020

Logistics41%

Production33%

Office15%

Storage10%

Other commercial

space1%

Types of use by commercial space

How is the

single unit

used

Type Properties Total rental space Commercial rental spaceIPR p.

sqm

Occupancy

commercialWALT Annualised rent % of rent GAV yield

Industrial park 15 374,064 sqm 354,054 sqm 4.63 € 77.3% 3.6 15,778 k€ 32.8% 161,040 k€ 9.8%

Logistics 23 437,567 sqm 412,374 sqm 3.43 € 91.2% 4.5 15,546 k€ 32.3% 208,150 k€ 7.5%

Production & logistics 35 816,273 sqm 533,562 sqm 2.76 € 92.6% 6.8 16,775 k€ 34.9% 213,089 k€ 7.9%

Total 73 1,627,903 sqm 1,299,991 sqm 3.43 € 88.0% 5.1 48,100 k€ 100.0% 582,279 k€ 8.3%

What‘s the type

of the property

What‘s the

letting structure

of the portfolio

PortfolioWell-balanced industrial sectors


Industrial sector % of Rent

Transport/logistics services 18.7%

Metalworking 9.6%

Mechanical and plant engineering 6.2%

Mail order/online trade 6.0%

Pharmaceutical industry 6.0%

Automotive 5.0%

Paper Processing/Paperboard/Packaging 4.5%

Public sector 4.4%

Plastics processing 3.9%

Air carrier 3.7%

Defence industry 3.2%

Industry/specialist/wholesale trade 3.1%

Textile coating 2.4%

Compressed air technology 2.2%

Retail trade 1.9%

Top Fifteen 80.8%

cyclical55.3%

non-cyclical39.5

public sector4.3%

privat/ non commercial0.9%

Cyclicality by total rent

PortfolioSolvent major tenants – adequate WALT

▪ Annualised in-place rents split by remaining lease duration


Tenant Sector % of rent

Aenova / Haupt Pharma Pharmaceutical Industry 5.8%

Versandhaus Walz GmbH, Baby Walz Online/Mail order seller 5.3%

Lufthansa Group Aerospace company 3.4%

DST Defence Service Tracks GmbH Defence industry 3.1%

Otto ( GmbH& Co KG ) Logistics 3.0%

Gabo Stahl GmbH Metalworking 2.6%

Bundesanstalt für Immobilienaufgaben German Armed Forces / Customs 2.5%

Sihl GmbH Printable materials 2.5%

keeeper tableware GmbH Paper processing, cardboard, packaging 2.5%

CompAir / Gardner Denver Compressed air systems 2.2%

Top Ten Tenants 33.0%

Top Twenty Tenants 489 Tenants in total 48.8%

9.668 k€

4.659 k€4.085 k€

5.008 k€

4.036 k€

13.402 k€

3.151 k€

4.092 k€

up to 1 year up to 2 years up to 3 years up to 4 years up to 5 years 5 to 10 years >10 years no fixedexpiration

WALT: 5.1 Years

PortfolioValuation potential - share price trades at attractive ~5.4 yield

21

Current

share

price

level

▪ Premium reflects market expectation on strong rent and value upside potential

▪ Assumptions based on annualised in-place rent for the proforma portfolio

Annualised total

portfolio rent

(m€)

Hypothetical

valuation

multiple

Yield

Portfolio value (m€)

(book value incl.

38.8 m€ from

leaseholds)

Net LTVNet debt

outstanding

EPRA

NAV

(m€)

Number of

shares

million

Hypothetical

NAV per

share (€)

premium/discount at

share price of 17.8 €

Portfolio as of 30/06/2020 (IFRS) 44,3 13,1 7,6% 581,8 39% 231,6 369,9 32,0 11,56 54%

Assumptions

based on pro forma portfolio

48,1 14,0 6,8% 708,2 45% 318,7 389,5 32,0 12,17 46%

48,1 15,0 6,4% 756,3 42% 318,7 437,6 32,0 13,68 30%

48,1 16,0 6,0% 804,4 40% 318,7 485,7 32,0 15,18 17%

48,1 17,0 5,6% 852,5 37% 318,7 533,8 32,0 16,68 7%

48,1 17,5 5,5% 876,6 36% 318,7 557,9 32,0 17,43 2%

48,1 18,0 5,3% 900,6 35% 318,7 581,9 32,0 18,18 -2%

48,1 19,0 5,1% 948,7 34% 318,7 630,0 32,0 19,69 -10%

48,1 20,0 4,8% 996,8 32% 318,7 678,1 32,0 21,19 -16%

48,1 21,0 4,6% 1044,9 30% 318,7 726,2 32,0 22,69 -22%

PortfolioIndividual properties

▪ Detailed information of all our properties can be found here:

▪ https://deutsche-industrie-reit.de/en/property/portfolio/

22

https://deutsche-industrie-reit.de/en/property/portfolio/

Valuation

Type

Commercial

rental space

in sqm

Annualised

rent in k€

GAV

in k€ *

Fair Value per sqm

commercial spaceYield

Valuation

change

Industrial park 354,054 15,778 161,040 455 9.8% 8.2%

Logistics 372,516 14,401 197,230 529 7.3% 12.6%

Production & logistics 443,770 14,137 188,707 425 7.5% 9.3%

Total 1,170,341 44,316 546,977 467 8.1% 10.1%

PortfolioValuation as of 30 June 2020

24

8.0%

8.5%

9.0%

8.4%

7.3%7.5%

9.8%

8.1%

Logistics Production &logistics

Industrial park Total

Yield before revaluation Yield as of 30/06/2020

▪ Highest valuation change in production & logistics and logistic market

segment, shows the yield compression in this both asset classes

▪ Positive portfolio valuation uplift reflects the market development in the

light industrial sector

▪ Valuation was done by CBRE

▪ Booked valuation result for 9M 2019/2020 = 35.4 m€

* Based on valuation results as of 30/06/2020, includes only properties with transfer of ownership until 30/06/2020,

in addition 34.8 m€ balanced leaseholds results in the investment property of 581.8 in the balance sheet

Acquisitions

AcquisitionsTrack record

26

closed signed

Track record of acquisitions

(purchase price in m€)

Financial Year Properties Commercial space Purchase price Current Fair Value Rent at acquisition current in-place rent Yield on PP Yield on FV

before 2017/2018 4 138,524 sqm 28.8 m€ 43.6 m€ 4.3 m€ 4.4 m€ 14.9% 10.1%

2017/2018 17 333,201 sqm 116.0 m€ 158.5 m€ 12.0 m€ 12.5 m€ 10.4% 7.9%

2018/2019 28 438,476 sqm 174.4 m€ 218.6 m€ 16.4 m€ 16.5 m€ 9.4% 7.5%

Transfered in 9M 2019/2020 15 260,141 sqm 104.9 m€ 126.3 m€ 11.2 m€ 10.9 m€ 10.7% 8.6%

Signed, transfer expected in

Q4 2019/20209 129,650 sqm 32.9 m€ 35.3 m€ 3.8 m€ 3.8 m€ 11.5% 10.7%

Total Portfolio End of

2019/202073

1,299,991 sqm 457.0 m€ 582.3 m€ 47.8 m€ 48.1 m€ ~10.5% ~8.3%

AcquisitionsTrack record / Pipeline insight

Adjusted by duplicates1 and validity2:

272 Considering only offers with valid price, space & rent data

1 Assets offered more than once

Comparing DIR to market (01/10/2019 – 30/06/2020):

591

307

Market DIR

Asking vs. purchase price EUR/sqm

6.4%

10.7%

Market DIR

Asking vs. purchase price yield

▪ Investment opportunities of DIR:

• Period: 01/10/2019 – 30/06/2020

• Offerings: 386

• Asking price vol.: 2.63 billion EUR

• Rental space: 4.9 million sqm

Type OfferingsRental space

(million sqm)

Asking price

vol. (billion €)€/sqm

Average

Multiple

Industrial park 67 1.2 0.69 592 18.5

Logistics 64 0.7 0.46 649 15.3

Production &

logistics165 2.1 1.17 571 14.5

Total 296 4.0 2.33 591 15.7

AcquisitionsSelected deals

28

Oschersleben Anderslebener Straße 159

Acquired 18/06/2020

Type Logistics

Rental space 15,000 sqm

Annualised in-place rent 378 k€

WALT 1.5 years

Vacancy 100.0%

Purchase price 3,000 k€

Yield 12.6%

Sector(s) Logistics

Euskirchen Adolf-Halstrick-Str. 6

Acquired 17/06/2020

Type Production & logistics


Annualised in-place rent 1,206 k€

WALT 10.0 years

Vacancy 100.0%


Yield 12.6%

Sector(s) Paper processing, cardboard

Bielefeld Gustav-Winkler-Str. 17

Acquired 06/07/2020

Type Logistics


Annualised in-place rent 360 k€

WALT 2.7 years

Vacancy 89.1%


Yield 10.0%

Sector(s) Beverage wholesale

Financing

FinancingDebt structure

30

# Lender Interest AmortisationLoan

nominal

Loan

Duration

(years)

Fixed interest

(years)

1 Secured Corporate bond 4.00% 0.00% 118.0 m€ 2.2 2.2

1 Convertible bond 2.00% 0.00% 41.6 m€ 6.0 6.0

14 Savings Banks 1.88% 5.16% 115.5 m€ 10.5 8.1

5 Cooperative Banks 1.30% 5.75% 16.8 m€ 15.8 8.7

1 Private Bank 2.25% 0.00% 10.0 m€ 4.7 4.7

21 Total 2.71% 2.30% 301.9 m€ 6.7 5.4

• Further diversification of financial instruments

• Long term maturity profile

• Cost of debt down to 2.71% (3.09%, 30/06/19)

• Average interest rate of bank loans at 1.8%

• ICR of 6.65 times (EBITDA/Net interests)

• Current loan pipeline ∿18.6 m€ at ∿0.96%

Convertible Bond14%

Cooperative banks

6%

Corporate Bond39%

Private Bank3%

Savings banks38%

Loan allocation (% initial nominal loan amount)

0 m€

10 m€

20 m€

30 m€

40 m€

50 m€

60 m€

70 m€

80 m€

90 m€

100 m€

110 m€

120 m€

2020 2021 2022 2024 2025 2026 2028 2029 2030 2035 2036 2037 2038

Maturity profile (m€ initial nominal loan amount)

Results

9M 2019/2020

k€ 30/06/2020 30/09/2019 k€ 30/06/2020 30/09/2019

Assets Equity and liabilities

Investment properties 581,779.3 392,849.0 Issued share capital 32,079.5 23,451.9

Intangible assets 0.7 1.8 Capital reserve 230,015.8 89,530.2

Property, plant and equipment 1,061.2 1,051.9 Other reserves 50.0 50.0

Derivative financial instruments 208.6 0.0 Other Comprehensive Income 208.6 0.0

Other financial assets 25,308.5 0.0 Retained earnings 107,585.3 68,431.1

Other non-current assets 16,466.1 38,886.2 Total equity 369,939.2 181,463.2

Total non-current assets 624,824.6 432,788.9 Liabilities to banks 127,319.2 67,526.5

Trade and other receivables 2,954.4 815.9 Corporate bonds 121,564.9 117,904.0

Other current assets 88,665.7 2,883.7 Convertible bonds 49,091.0 41,184.0

Cash and cash equivalents 360.2 2,065.7 Other non-current liabilities 34,776.5 1,530.1

Total current assets 91,980.3 5,765.2 Total non-current liabilities 332,751.5 228,144.6

Financial liabilities 7,261.4 3,956.9

Non-current assets held for sale 435.0 Liabilities to other creditors 0.0 20,177.7

Other current liabilities 6,852.7 5,246.7

Total current liabilities 14,114.1 29,381.2

Total assets 716,804.9 438,989.1 Total equity and liabilities 716,804.9 438,989.1

Financial Results 9M 2019/2020Condensed IFRS balance sheet

Including balanced

leaseholds of 34.8

m€. Nominal FV of

the properties is

547.0 m€

32

Capital increases in 11/19 (at

16.25 €) and 6/20 (at 20.0 €)

from 23.5m to 32.1m shares

Fair value of financial

derivatives (interest

SWAP)

Corporate bond

nominal 118.0 m€Liquidity

management by

financial investments

Convertible bond

nominal 41.6 m€

Mainly liabilities from

leaseholds

Financial Results 9M 2019/2020NAV, LTV and REIT equity ratio

k€ 30/06/2020 30/09/2019

Total equity 369,939.2 181,463.2

NAV 369,939.2 181,463.2

Fair value of derivative instruments -208.6 -

Deferred taxes - -

EPRA NAV 369,730.6 181,463.2

# of shares 32,079,505 23,451,945

NAV per share - undiluted (€) 11.53 7.74

EPRA NAV: LTV*:

33

k€ 30/06/2020 30/09/2019

Total equity 369,939.2 181,463.2

Investment properties 581,779.3 392,849.0

REIT-Equity ratio 63.6% 46.2%

REIT equity ratio

REIT criteria fulfilled

(45% by law)

Interest SWAP

k€ 30/06/2020 30/09/2019

Liabilities to banks 127,319.2 67,526.5

Liabilities from corporate bonds 121,564.9 117,904.0

Liabilities from convertible bonds 49,088.0 41,184.0

Other non-current liabilities 34,776.5 1,527.1

Non-current financial liabilities 332,748.5 228,141.6

Liabilities to banks 7,261.4 3,956.9

Liabilities to other creditors 0.0 20,177.7

Current financial liabilities 7,261.4 24,134.6

Other non-current financial assets -25,308.5 0.0

Cash and cash equivalents -360.2 -2,065.7

Trust accounts -382.1 -459.0

Short-term loans -82,378.5 0.0

Current financial assets -83,120.8 -2,524.7

Net debt 231,580.6 249,751.5

Investment properties 581,779.3 392,849.0

Advance payments on investment properties 16,466.1 38,886.2

Non-current assets held for sale 0.0 435.0

Total Investment properties 598,245.5 432,170.2

Net LTV 38.7% 57.8%

k€ 01/10/2019 - 30/06/2020 01/10/2018 - 30/06/2019*

Gross Rental income 29,680.8 17,764.4

Income from operating and ancillary costs 6,474.8 2,814.6

Operating expenses -12,396.8 -6,044.9

Net rental income (NRI) 23,758.8 14,534.1

Other income 130.0 309.4

Result from the revaluation of investment properties 35,429.6 36,607.0

Personnel expenses -630.3 -627.5

Depreciation of assets -120.7 -84.5

Impairment loss of inventories and receivables -1,905.6 -295.4

Other operating expenses -1,695.5 -1,188.2

EBIT 54,966.3 49,254.9

Valuation result of financial liabilities -7,904.0 0.0

Interest income 3,306.3 71.7

Interest expenses -6,548.2 -4,796.1

EBT -11,145.9 44,530.5

Income and other taxes -0.1 22.3

Net income 43,820.3 44,552.8

Financial Results 9M 2019/2020Condensed IFRS income statement

34

Mainly a IFRS-

Valuation effect

from financial

investments

amounting to 1.6

m€

Regular valuation

in 06/2020

~ 50.2m€ higher

market values vs.

capex and

transaction costs

* Note: There were minor changes for 9M 2018/2019 in the context of the auditor's review for the preparation of the securities prospectus.

Operating expenses 9M-2019/2020 9M-2018/2019

Recoverable operating

and ancillary costs -7.291,7 -2.776,5

Maintanance -2.086,0 -1.464,0

Property management -906,4 -567,0

Asset management -1.832,8 -1.072,3

Other operating

expenses -279,9 -165,1

Total -12.396,8 -6.044,9

Financial Results 9M 2019/2020FFO / aFFO reconciliation

k€ 01/10/2019 - 30/06/2020 01/10/2018 - 30/06/2019*

Net income 43,820.3 44,552.8

Adjustment amortisation and depreciation 120.7 84.5

Adjustment revaluation result -35,429.6 -36,607.0

Adjustment revaluation result financial liabilities 7,904.0 0.0

Adjustment sales result 0.0 0.0

Adjustment for special effects / non-cash expenses + income 1,556.7 193.1

Adjustment for one-off expenses/income 321.5 373.7

FFO 18,293.6 8,597.1

FFO per share undiluted (€) 0.64 0.40

FFO per share diluted (€) 0.62 0.37

- Capex -5,852.3 -2,789.3

aFFO 12,441.3 5,807.8

aFFO per share undiluted (€) 0.44 0.27

FFO per share diluted (€) 0.43 0.25

Avg. # of shares for the period 28,363,575 21,280,287

FFO/aFFO:

35

Increase of FFO per share +60%

Adjustment k€

Increase / decrease in individual value

adjustments for financial receivables1,116.9

Increase / decrease in individual value

adjustments for rent receivables326.7

Valuation adjustments for interest expenses 113.1

* Note: There were minor changes for 9M 2018/2019 in the context of the auditor's review for the preparation of the securities prospectus.

Financial Results 9M 2019/2020Outlook

▪ Acquisition volume of ~ 140 m€

▪ Based on current projections DIR expects still

an FFO between 23 m€ and 25 m€ for the Financial Year 2019/2020

▪ FFO run rate between 27 m€ and 29 m€ by the end of FY 2019/2020

36

Shares &

Investor Relations

DIR SharesBasic data & shareholder structure

Shareholder structure:

Basic data

ISIN DE000A2G9LL1

WKN A2G9LL

Ticker Symbol JB7

Number of shares 32.079.505

Nominal capital 32,079,505.00 €

Share class Bearer shares

Stock exchangesBerlin (Regulated Market)

Frankfurt, XETRA (Prime Standard)

Designated Sponsor Oddo Seydler Bank AG

Listing 7 December 2017

38

*Free float according to definition of Deutsche Börse: 42.5%

Obotritia Capital KGaA, 7.8%

Obotritia Alpha Invest GmbH, 7.0%

Obotritia Beta Invest GmbH, 4.7%

Babelsberger Beteiligungs GmbH, 4.4%

Försterweg Beteiligungs GmbH, 3.6%

Obotritia Delta Invest GmbH, 2.2%

Rolf Elgeti, 0.5%

VBL, 9.8%Parson

GmbH, 6.2%

Aurelius Growth Investments S.a.r.l.; 5.2%

Olive Tree Invest GmbH, 0.9%

Massachusetts FinancialServices, 5.0%

Gert Purkert, 4.7%

Rocket Internet SE, 3.7%

Remaining free float*, 34.0%

Attributable to Rolf Elgeti

(Obotritia Group shares + own) =

30.2%

Free Float*

42.5%

Obotritia Capital

Group

29.7%

DIR SharesShare performance & coverage

39

L

Coverage

Bank Date Target price

Baader 13/08/2020 24.00 €

Berenberg 13/08/2020 23.00 €

ODDO BHF 13/08/2020 24.50 €

2

Market Cap as of 14/09/2020: ~ 574 m€

1

Event Date Price

52 weeks low 06/04/2020 14.80 €

Capital increase 1.5m shares 23/04/2018 7.75 €





Capital increase 19/06/2020 20.00 €

52 weeks high 05/05/2020 23.60 €

1

2

L

H

3

3

H

4

45

5

6

6

Financial calendar & IR contactWe keep you informed

IR contact:

René Bergmann (CFO)

August-Bebel-Str. 68

D-14482 Potsdam

E-Mail: [email protected]

Tel: +49 (0) 331 / 740 076 535

Fax: +49 (0) 331 / 740 076 520

40

Financial calendar

21/09/2020 Berenberg-Goldman Sachs, German Corporate Conference, virtual

23/09/2020 Baader Investment Conference, virtual

17/11/2020 Deutsches Eigenkapitalforum 2020, virtual

18/12/2020 Annual report for the financial year 2019/2020

Further Information about our share, analyst coverage or financial calendar

you‘ll find here:

https://www.deutsche-industrie-reit.de/en/investor-relations/

mailto:[email protected]

https://www.deutsche-industrie-reit.de/en/investor-relations/

ManagementExperienced and committed management team

Rolf Elgeti (CEO)

Rolf is the founder of Deutsche Industrie REIT-AG, which is a spin-off of his investment company Obotritia Capital. Before he was the

CEO of TAG Immobilien AG, Hamburg, which experienced an enormous growth under his leadership and was included into German Mid-

Cap Index (MDAX).

Rolf worked many years as an equity strategist at ABN Amro, Commerzbank and UBS in London. He has excellent banking and real

estate knowledge. Rolf is personally and financially committed to Deutsche Industrie REIT-AG.

Sonja Petersen (neé Paffendorf) (CIO)

Sonja has been part of Obotritia Capital since 2015. She started as a Head of Project Development and became the Chief Investment

Officer of Obotritia Capital in January 2017. In this position she has been responsible for the strategic growth of the commercial real estate

portfolio. She was appointed CIO of Deutsche Industrie REIT-AG on 18th of October 2017.

Sonja has worked many years in the real estate industry, especially in project development in Germany and Australia. Sonja is personally

and financially committed to Deutsche Industrie REIT-AG.

41

René Bergmann (CFO)

René has been working for the Deutsche Industrie REIT-AG since November 2017, as Director Finance he was responsible for the

development of this area. He has been Chief Financial Officer (CFO) since September 1, 2018. His duties include equity and debt

financing as well as accounting / controlling and IR.

René has worked many years in the real estate industry, especially in portfolio management and IR. René is personally committed to

Deutsche Industrie REIT-AG.

Appendix

AppendixGlossary

43

# Glossary

1 Commercial units e.g. logistics, production, warehouse, office or similar without parking and other units (for example antennas, open spaces, apartments)

2 Total rental spaceAlso contains ancillary areas such as open spaces, ancillary rooms (corridors, sanitary facilities, common areas), apartments, owner-

occupied space (concierge or similar)

3 Commercial rental space e.g. logistics, production, warehouse, office or similar without parking and other units (for example antennas, open spaces, apartments)

4 Annualised in-place rent Contractual net cold rent p.a. for all units (includes also antennas, parking lots, open spaces, apartments etc.)

5 Vacancy commercial Vacant commercial space divided by (total) commercial space

6 WALT Weighed average lease terms - only contracts with an agreed fixed term have been considered

7 IPR commercial per sqm Rent of leased commercial units divided by space of leased commercial units

8 Current market value Value determined by means of market value appraisal or, where this is not yet available, the purchase price

9 Date of transfer Transfer of ownership (benefits and encumbrances)

10 EPRA NAV per share Total equity modified according to EPRA guidelines divided by number of shares

11 FFO Funds From Operation - Recurring and one-off adjusted result from the operation of the property portfolio

12 GAV Gross Asset Value – Value of investment properties in the balance sheet

13 Net-LTV Net loan-to-value – debt (financial liabilities minus cash) divided by GAV

Disclaimer

The material in this presentation has been prepared by Deutsche Industrie REIT-AG (Deutsche Industrie) and is general background information about Deutsche Industrie’s

activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including

forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities

or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information

you should consider the appropriateness of the information having regard to these matters. Any relevant offer document and in particular, you should seek independent

financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial

or political developments and, in international transactions, currency risk.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Deutsche Industrie REIT-AG

businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are

cautioned not to place undue reliance on these forward looking statements. Deutsche Industrie REIT-AG does not undertake any obligation to publicly release the result of

any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care

has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject

to uncertainty and contingencies outside Deutsche Industrie REIT-AG control. Past performance is not a reliable indication of future performance.

The individual financial statements comprise the balance sheet, statement of comprehensive income, statement of changes in equity, cash flow statement and are prepared in

Euros (EUR). All amounts are presented in thousands of Euros (kEUR) (exceptions are indicated), which may result in rounding differences.

Unless otherwise specified all information are for the financial quarter ended 30 June 2020.

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