ACCENTRO Real Estate : Company Presentation January 2021

ACCENTRO Real Estate AG

Investor in Residential Real Estate and

Germany's Leading Housing Privatisation Company

January 2021

ACCENTRO AT A GLANCE

Diversified business model focusing on housing privatisation

What we

do?

Sources

of

income

Current portfolio

Privatisations and Investment Properties

• Investing in residential real estate in attractive German metro regions with focus on Berlin
• Active asset management and capex measures
• Privatisation of single units to individual investors and homeowners
• Block sales of properties to institutional investors
• Realizing of new building potential by investment properties
• Revenues from property letting
• Revenues from property sales (single unit sales, block sales)
• 2,407 residential and commercial units (as of 30 Sept. 2020) (1)
• Real estate value of EUR 530.7m mostly accounted at cost (as of 30 Sept. 2020)(1)

Services & Ventures

• Sales services to third parties, such as developers and real estate companies
• Backstop provisions for developers in course of single unit sales
• Joint ventures (ACCENTRO typically holds a minority equity stake) with developers and real estate companies to market and sell properties on single unit basis and as block sales
• Revenues from services
• Revenues from equity investments
• Exclusive sales cooperations with renowned partners like:

Notes: (1) Including buildings for own use and investment properties

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BUSINESS MODEL (1)

ACCENTRO is Germany's leading housing privatisation company

• ACCENTRO is Germany's leading housing privatisation company with a strong track record and focus on individual sales to retail investors
• Sold >15,000 units (>EUR 1.4bn transaction value) since 2009
• Consistently high EBIT of >EUR 30m p.a. since 2016 with an average gross sales margin of around 30%
• Resilient margin deriving from combination of wholesale/retail difference and capex upgrade
• Well filled privatisation pipeline with >2,000 units and EUR 460m book value (at cost, as of 30 Sept 20)
• Inventory properties with significant revenue potential of around EUR 700m over next years
• Historically focused on Berlin, ACCENTRO launched expansion to growth markets in South & East Germany, Rhine-Ruhr & Rhine-Main metro regions
• Wide product range (from affordable to upscale housing) reaching a broad customer base through a strong marketing platform
• Well established service business providing property sales and backstop services for real estate investors and property developers
• Structural growth of German residential real estate market being basis for ACCENTRO's sustainable success

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BUSINESS MODEL (2)

Diversification towards property management and service business

• Besides keeping its market leadership in housing privatisation, ACCENTRO is developing into a residential investor, landlord and service provider
• Planning further expansion of the real estate portfolio and leveraging the value through dedicated property management
• With last year's acquisition of ~3,500 units the portfolio already more than doubled to ~5,000 units
• A growing portfolio will not only increase rental income but also provide ACCENTRO with even more flexibility doing block or individual sales
• Besides maintaining its strong footprint in Berlin, the company will continue to grow its portfolio in attractive metro regions in Germany
• The recent acquisition of DIM Holding AG ("Deutsche Immobilien Management"), one of Germany's leading property managers with EUR 2.8bn AuM, has significantly strengthened ACCENTRO's property management
• Ongoing expansion of the service business by leveraging the existing service offer to real estate companies through the growing customer base and sophisticated property management of DIM

The diversification of the business model, in terms of content and region, will further improve the risk return profile of ACCENTRO

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OUTLOOK

Structural growth market

		▪	The short supply and scarcity in the housing sector is reflected in growing demand for residential real estate
Market		▪	Significant housing shortage and structural demand is causing rising rent and price levels in the target markets
environment
		▪	The low homeownership rate of 45% in Germany, among the lowest in Europe, offers a significant revenue potential
			for ACCENTRO given the EUR c.30bn private transaction market
		▪ Strong privatisation business in Q4/2020 (condo sales reaching record level, 280 units sold to institutional investors)
Outlook		▪	Outlook for FY 2020: slight increase in revenues, EBIT at previous year level
		▪	Inventory properties with significant revenue potential of around EUR 700m over next years

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KEY FIGURES

Development of a profitable portfolio of high-quality assets

Key Figures

	FY 2016	FY 2017	FY 2018	FY 2019
Privatisation Portfolio
Units	2,422	2,885	2,181	2,296(1)
Real estate value (€m, at cost)	216.1	302.2	343.9	474.6(1)
Apartments sold(2) (units)	976	992	940(3)	830
Apartments sourced(2) (units)	1,470	1,289	866	812
Gross margin of sales	45.1%	33.6%	27.6%	30.0%
Key Financials
Revenues (€m)	125.1	147.3	163.2(3)	143.3
Annual rental income, (€m)	7.9	8.7	8.5	10.6(1)
EBIT (€m)	33.9	36.4	32.9	39.8
Interest coverage ratio(4)	3.8	4.1	3.7	5.4
LTV(5)	33.1%	32.8%	38.8%	43.1%

Berlin

Leipzig

(1) Including Investment properties and Owner-occupied properties (2) Transactions closed in corresponding year (3) Excluding 675 units & €42.4m from deconsolidation of project Gehrensee (4) Adj. EBITDA/ net interest expenses (5) Net financial debt/ adj. total asset value

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PRIVATISATION PORTFOLIO

Diversified privatisation portfolio of intrinsic value

	Inventories portfolio as of 30 September 2020
	Location	Book value/purchase		Units	sqm	Exp. selling prices
	price (in mEUR)		(EUR/sqm)(1)
	Berlin	342.6	1,263	92,000	4,930
	Bavaria (Bayreuth, Garmisch-	69.2		448	27,749	3,307
	Partenkirchen, etc.)
						Berlin
	Leipzig and Greater Leipzig	16.6	197	12,868	1,677
	NRW (Cologne, Dusseldorf,	16.6		113	6,698	3,238
	Ratingen, etc.)
	Others (Hamburg, Hanover,	15.2	106	6,938	2,860
	Potsdam, Rostock, etc.)
	Total	460.2	2,127	146,253	4,160

Leipzig

(1) Expected selling prices excl. sales, marketing and construction costs

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FINANCING - FUNDING STRUCTURE

Increasing maturity and flexibility at limited costs

Funding strategy

• Corporate bond over EUR 250m with a coupon of 3.625% successfully placed in Q1 2020 and full replacement of the EUR 100m Bond 2018/2021
• Balanced mix of secured and unsecured financing and manageable financing risk due to low LTV

Financial liabilities	Nominal volume	Average interest	Average loan
(EUR '000)	rate (%)	maturity (years)
Loan debt	212,509	2.02	2.70
Real estate portfolio
Bond	250,000	3.625	2.62
(2020/2023)
Sum total	457,164	2.89	2.66

Funding structure as of 30 September 2020

EUR 212m

EUR 250m

Loan debt real estate portfolio		unsecured bond

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Back-up

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FINANCIALS - INCOME STATEMENT - 2019 and 9M 2020

Income statement shows high profitability of business model

Income statement (in EUR '000)	2018	2019	in %	9M 2019	9M 2020	in %	Sources of Income
Revenues from sales of inventory property	151,589	129,503	-14.6%	63,840	55,695	-12.8%	Revenue from property
sales
Expenses for sales of inventory property	-118,770	-99,661	-16.1%	-49,654	-45,699	-8.0%
Capital gains from inventory property	32,820	29,841	-8.1%	14,186	9,996	-29.5%	Net income from property
Net rental income	6,130	6,518	6.3%	5,021	3,867	-23.0%
letting
Net service income	2,282	2,363	3.6%	1,571	623	-60.3%	Net income from services
Net income from companies accounted for	2	1,244	62,111%	1,258	0	-	Return from equity
using the equity method	investments
Other operating income	1,663	1,207	-27.4%	710	449	-36.8%
Gain or loss on fair value adjustments of	0	11,399	-	11,399	2,010	-	Reclassification
investment properties	Investment Properties
Interim result	42.896	52,572	22.6%	34,145	16,945	-50.4%
Total payroll and benefit costs	-4,613	-5,835	26.5%	-4,031	-6,091	51.1%
Depreciation and amortisation of
intangible assets and property, plant and	-349	-731	109.5%	-537	-618	15.1%
equipment
Impairment of accounts receivable	-205	-123	-40.2%	0	-124	-

Other operating expenses	-5,131	-6,079	18.5%		-3,619	-4,516	24.8%
EBIT	32,598	39,804	22.1%		25,958	5,596	-78.4%
		Return from other equity
Other income from investments	36	36	0.0%		27	26	0.0%		investments
Net interest income	-8,924	-7,353	-17.6%		-6,776	-13,638	-
EBT	23,710	32,488	37.0%		19,209	-8,016	-
Income taxes	-5,675	-6,189	9.1%		-6,029	-3,796	37.0%
Consolidated income	18,035	26,299	45.8%		13,180	-11,812	-
Total gross margin (revenues basis) in %	25.4%	27.9%	9.7%		28.3%	22.2%	-
Gross margin from sales (cost basis) in %	27.6%	29.9%	8.4%		28.6%	21.9%	-
Net income margin	11.2%	18.4%	63.7%		18.0%	-18.1%	-
Earnings per share	0.56	0.81	43.7%		0.41	-0.37	-

Notes

• 9M 2020 results extraordinarily burdened by EUR 6.5m one-off effects mainly related to bond issue and change of management board
• Operating interim result of EUR 16.9m is a little bit lower as in the comparable period due to temporarily lower sales margins
• Gross margin from sales fell to 21.9% due to higher share of sales via cooperation partners and higher one-time marketing costs
• Increase of total payroll and benefit costs is driven by staff growth and change of the management board
• Increase of net interest expenses include one-off effects from the repayment of the old bond in the amount of EUR 4.1m

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FINANCIALS - BALANCE SHEET - FY 2019 and 9M 2020

Financial position with large hidden reserves

Financial position (in EUR '000)	FY 2019	9M 2020	in %
Goodwill	17,776	17,776	0.0%
Owner occupied properties and buildings	24,083	24,171	0.4%
Investment Property	34,452	46,526	35.0%
Non-current trade receivables and other receivables and	24,029	28,004	16.5%
other assets
Other non-current assets	2,168	2,972	37.1%
Total non-current assets	102,508	119,449	16.5%
Inventory properties	416,573	460,158	10,5%
Accounts receivable and other assets	37,510	108,274	188.7%
Cash and cash equivalents	24,167	36,450	50.8%
Total current assets	478,250	604,882	26.5%
Total assets	580,757	724,331	24.7%
Subscribed capital	32,438	32,438	0.0%
Additional paid-in capital	78,684	79,606	1.2%
Retained earnings	107,561	95,602	-11.1%
Attributable to non-controlling companies	2,128	2,482	16.7%
Total equity	220,811	210,128	-4.8%
Financial liabilities and bond	213,709	338,177	58.2%
Other non-current liabilities	2,210	5,050	128.5%
Total non-current liabilities	215,919	343,227	59.0%
Financial liabilities and bond	103,931	126,109	21.3%
Other short-term payables	40,097	44,866	11.9%
Total current liabilities	144,028	170,975	18.7%
Total current and non-current liabilities	359,947	514,202	42.9%
Total assets	580,757	724,331	24.7%
LTV	43.1%	51.3%	-
Equity ratio	38.0%	29.0%	-

Notes

• Successful placement of EUR 250m bond in Q1 2020 to accelerate the ongoing growth
• Real estate assets in inventories further increased by continuous growth
• Property valuation by external appraisers confirms hidden reserves of EUR 124m in the inventory portfolio as of 30 September 2020
• Increase of other current assets by a loan granted in the amount of EUR 55m for cash management reasons
• Increase of the LTV ratio due successful placement of EUR 250m bond and replacement of the EUR 100m old bond

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ACCENTRO SHARE

Shareholders and share price performance

		Key share information				Share price performance compared to German indexes
		Listing	Frankfurt am Main
		Segment	Prime Standard
		WKN	A0KFKB
		ISIN	DE000A0KFKB3
		Shares outstanding	32,437,934
		Market capitalisation (as of 31.12.2020)	EUR 288.7m
		Share Price (as of 31.12.2020)	EUR 8.90
		Shareholder structure

Freefloat 12.1%

ADLER Real Estate AG 4.8%

Brookline Real Estate S.à.r.l. 83.1%

(Souce: XETRA)

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MAJOR SHAREHOLDER

Brookline Real Estate is fully committed to ACCENTRO's path of growth

About ACCENTRO's major shareholder

▪ Brookline Real Estate S.à.r.l. ("Brookline Real Estate") is a Luxembourg-

based holding company controlled by Brookline Capital LP, and externally

advised by Vestigo Capital Advisors LLP ("Vestigo Capital").

▪ Vestigo Capital is an FCA regulated investment firm headquartered in

London, UK, which provides advice to funds and other investment

vehicles with cumulative AUM in excess of USD 350m.

Structure

Investment Advisor

Vestigo Capital

Brookline Capital LP

▪ Vestigo Capital is led by Natig Ganiyev, a private equity investor, whose

current portfolio primarily includes investments in real estate, renewable

energy, and hospitality sectors.

▪ Natig Ganiyev serves as a member of the Supervisory Board of ACCENTRO

Real Estate AG and is a member of the Board of Directors of Malta

Montenegro Wind Power JV Limited. He received an M.B.A. from Harvard

Business School.

▪ Brookline Capital LP is established to invest in real estate companies and

assets, with a primarily focus on Germany. Its main holding is ACCENTRO

Real Estate AG, which is the central piece of its investment strategy to

pursue compelling opportunities in the property market.

Brookline Real Estate

▪ 83% of shares

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ACCENTRO SHARE

Research Coverage

Analyst	Institution	Recommendation	Target	Date
Dr Adam Jakubowski	SMC-Research	Buy	15.00 EUR	13.01.2021
Philipp Kaiser	Warburg Research	Buy	14.75 EUR	08.01.2021
Mariya Lazarova, Robel Tesfeom	FMR Frankfurt Main Research AG	Buy	12.50 EUR	05.01.2021
Klaus Soer, Jannik Lucas	Quirin Privatbank	Buy	12.55 EUR	27.11.2020
Bérénice Lacroix	Kepler Cheuvreux	Hold	10.00 EUR	01.06.2020
Manuel Martin	ODDO BHF	Hold	8.00 EUR	03.04.2020
Andre Remke	Baader Helvea Equity Research	Buy	10.00 EUR	18.12.2019
Average			11.83 EUR

Selected Recommendations

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DISCLAIMER

This document is not a securities prospectus, and the information contained therein does not constitute an offer to sell, or a solicitation of an offer to buy, securities of ACCENTRO in the Federal Republic of Germany or in any other country, specifically not if such an offer or solicitation is prohibited or not approved.

This document was prepared exclusively by ACCENTRO Real Estate AG "ACCENTRO") solely for informational purposes and has not been independently verified and no representation or warranty, express or

implied, is made or given by or on behalf of ACCENTRO. Nothing in this document is, or should be relied upon as, a promise or representation as to the future.

This document contains forward-looking statements based on current estimates and assumptions made by the senior management of ACCENTRO. Forward-looking statements are characterised by the use of words such as "expect," "intend," "plan," "predict," "assume," "believe," "estimate," "anticipate" and similar forward-looking phrases. Such statements are not to be understood as guarantee that predictions of this sort will prove to be correct. In particular, any statements on acquisitions presuppose the actual signing of the necessary contracts or the successful procurement of the necessary equity and debt capital. The future development and actual results achieved by ACCENTRO and its affiliates are subject to a number of risks and uncertainties, and may therefore differ materially from these forward-looking statements. Many of these factors are beyond ACCENTRO's control and cannot be accurately appraised in advance, including the future economic environment or the actions of competitors and other market players. ACCENTRO does not intend to update its forward-looking statements. Neither ACCENTRO nor any of its respective directors, officers, employees, advisors, or any other person is under any obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak of the date of this document. Statements contained in this document regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. No obligation is assumed to update any forward-looking statements.

This document contains certain financial measures (including forward-looking measures) that are not calculated in accordance with IFRS and are therefore considered "non-IFRS financial measures". Such non-IFRS financial measures used by ACCENTRO are presented to enhance an understanding of ACCENTRO's results of operations, financial position or cash flows calculated in accordance with IFRS, but not to replace such financial information. A number of these non-IFRS financial measures are also commonly used by securities analysts, credit rating agencies and investors to evaluate and compare the periodic and future operating performance and value of other companies with which ACCENTRO competes. These non-IFRS financial measures should not be considered in isolation as a measure of ACCENTRO's profitability or liquidity, and should be considered in addition to, rather than as a substitute for, net income and the other income or cash flow data prepared in accordance with IFRS. In particular, there are material limitations associated with the use of non-IFRS financial measures, including the limitations inherent in determination of each of the relevant adjustments. The non-IFRS financial measures used by ACCENTRO may differ from, and not be comparable to, similarly-titled measures used by other companies. Certain numerical data, financial information and market data (including percentages) in this document have been rounded according to established commercial standards. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts.

Accordingly, neither ACCENTRO nor any of its directors, officers, employees or advisors, nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the fairness, accuracy or completeness of the information contained in the document or of the views given or implied. Neither ACCENTRO nor any of its respective 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 there-with. It should be noted that certain financial information relating to ACCENTRO contained in this document has not been audited and in some cases is based on management information and estimates.

This document is intended to provide a general overview of ACCENTRO' business and does not purport to include all aspects and details regarding ACCENTRO. This document is furnished solely for your information, should not be treated as giving investment advice and may not be printed or otherwise copied or distributed. Subject to limited exceptions described below, the information contained in this document is not to be viewed from nor for publication or distribution in nor taken or transmitted into the United States of America ("United States"), Australia, Canada or Japan and does not constitute an offer of securities for sale in any of these jurisdictions. Any securities offered by ACCENTRO have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States and such securities may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. This document does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

The information contained in this document may not be distributed outside the Federal Republic of Germany, specifically not in the United States of America, to US persons (as defined in Regulation S under the United States Securities Act of 1933) or to publications with a general circulation in the United States, unless such distribution outside the Federal Republic of Germany is prescribed by mandatory provisions of applicable law. Any violation of these restrictions may constitute a breach of the securities laws of certain countries, in particular those of the United States of America. Securities of ACCENTRO are not publicly offered for sale outside the Federal Republic of Germany.

By receiving this document, you agree to be bound by the foregoing limitations. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. This document does not constitute investment, legal, accounting, regulatory, taxation or other advice.

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ACCENTRO REAL ESTATE AG Investor Relations Kantstrasse 44/45 D-10625 Berlin

Phone: [phone] - 272

Fax: [phone] [e-mail] www.accentro.ag

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