Deutsche Industrie REIT : Company Presentation January 2021

Deutsche Industrie REIT-AG (DIR)

Company Presentation

January 2021

Content

• 2019/2020 Highlights
• Strategy & Business Model
• Market Overview
• Real Estate Portfolio
• Valuation
• Acquisitions
• Case study Mönchweiler
• Financing
• Results 2019/2020, Guidance 2021
• DIR Shares, Investor Relations, Management
  -------------------------------------------------
• Appendix: Glossary, Disclaimer

2

FY 2019/2020 Highlights

Highlights FY 2019/2020

Key figures

Pro forma	Properties	Occupancy	Commercial	Annualised	Portfolio	Land Bank
Space	In-Place Rent	Value
Portfolio YTD*	77	86.2%		3.4m m²
1.38m m²	49.8 m€	617.5 m€
Key Figures	Net rental	FFO per	FFO	REIT equity	LTV		2020/2021
Income	share growth	ratio	FFO-Guidance
FY 2019/2020	24.6 m€	37.1%
31.3 m€	41%	64.4%		32-34 m€

* Based on pro forma portfolio as of 07/12/2020 = including notarised properties YTD with transfer of ownership after 30/09/2020	4

Highlights FY 2019/2020

Key figures

FFO per share (€)

0.84

0.60

	FY 2018/2019	FY 2019/2020
Avg. # of	21,619,034	29,297,634
shares

EPRA NAV per share (€)

11.74

7.74

30/09/201930/09/2020

# of shares

23,451,945

32,079,505

Corona update

• Still no significant impact
• Slightly higher vacancy, also due to longer re-letting process
• 1.8 m€ total volume of agreed deferrals, thereof 1.0 m€ paid
• In total 1.1 m€ individual impairments for rents as a precautionary measure

5

Strategy & Business Model

Strategy & Business Model

Combining 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

+

Value creation by active asset management

++

Lean company structure				Advantages from REIT
			structure
	=
Attractive and stable dividends

7

Strategy & Business Model

Real estate investment company focussed on Light Industrial

Strong continuous growth with acquisition at high yields around 10%

Land development potential

• DIR owns a huge land area of 3.4 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

Rent development potential

No significant	Restrictive	Conversion	Strong	Need for more
into more	storage and
new
approval	valuable types	economic	logistics
construction
practice for	of uses	fundamentals	spaces due to
due to current
industrial areas	(residential,	in Germany	booming online
low rent level
	office etc.)		shopping

Shrinking product supply

Growing demand

Increasing land value	Increasing market rents

Built up a Light Industrial real estate platform with multi-dimensional value enhancing potential where the whole is worth more than the individual parts

8

Strategy & Business Model

Investment 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-allsubstance 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

	Typical Seller / Sales Reason
	Splitting	Sale &
	Opco/
	lease
	Propco
	back
Enterprise		Leftovers	Non-
Succession		from big	institutional
	portfolios	owners

CapitalInsolvency

recycling/stressed companies

Conversion

properties

					Our competitive advantages:
	Deal sources
					• Quick decisions due to lean company structure
					• Focused and flexible acquisition team
Broker	DIR	Public	Other		• Fast payment due to equity financing
network	auctions		• Well-defined investment strategy with pure focus on one asset class
					• Comprehensive and transparent reporting

9

Strategy & Business Model

Value add approach

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

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

Tenant network

With the expansion of the portfolio also our network of potential tenants grows which can be advantageous

10

Market Overview

German Light Industrial Market

Overview of the commercial real estate market in Germany

Total commercial floor space (million sqm)

Market values of commercial real estate (billion EUR)

Market values of company properties(billion EUR)

Retail properties		Converted	Business parks
Company properties 563.6	properties 43.0
360.0		14.5

Company properties

957.6

Industrial space

1,359.0

	Light
Office properties	maufacturing	Warehouse/
properties 300.5	logistsics space
600.0
	205.7

Retail properties
120.0
		Space in smaller	Industrial space
Office properties	Space in smaller properties	475.7
properties
400.0	310.0
93.0

Key facts:

New constructions company properties

(sqm in thousand)

▪ 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

1,175.5

918.6

714.4

988.8

871.0

772.6

538.5

H2 2016

H1 2017

H2 2017

H1 2018

H2 2018

H1 2019

H2 2019

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

German Light Industrial Market

Investment market - corporate properties

Investment volume (mEUR)	Average gross initial yields (%)

					2,408
2,052							8.7%
			1,803					7.8%
					5.9%	6.4%
				1,084
	953
	796
					Converted properties	Warehouse-/ logistics	Business parks	Light manufacturing
H1 2017	H2 2017	H1 2018	H2 2018	H1 2019	H2 2019	properties		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

Source: bulwiengesa, Market Report - Transparency on Germany's Industrial Real Estate Market (H2 2019)	13

German Light Industrial Market

Letting market - corporate properties

Rents by floor space type (EUR/sqm)

Lease term weighted by take-ups (%)

*based on new contracts

	Min. rent	Average rent	Prime rent						37.7
		16.30
	13.57									18.5
							16.5
	9.43	8.10	8.80		8.7			11.4
				6.2
			5.90
5.50	5.00
	4.50	1.1
Office / Social space	Flex Space	Light manufacturing space	rolling	< 1 year	1 to 2 years	2 to 3 years	3 to 5 years	5 to 10 years	> 10 years

Take-ups (sqm in thousand)

593.0

499.5

466.5

357.0

281.5

246.0

H1 2017

H2 2017

H1 2018

H2 2018

H1 2019

H2 2019

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

Source: bulwiengesa, Market Report - Transparency on Germany's Industrial Real Estate Market (H2 2019)	14

Real Estate Portfolio

Portfolio

Sustainable external and internal growth

Absolute growth year on year and pro forma1

Like-for-like development2

No. of properties

77

Annualised in-place rent

(m€)

GAV (m€)

Annualised in-place rent

(m€)

IPR (€/m²)

69

49

49.8

44.5

33.1

565.0

391.8

617.5

33.132.8

09/2019 09/2020

3.343.34

0%

09/2019 09/2020

09/2019 09/2020 Pro forma

09/2019 09/2020 Pro forma

09/2019

09/2020 Pro forma

Occupancy (%)

GAV (m€)

Occupancy (%)

88.9

85.1 86.2

IPR (€/m²)

3.47

3.41

3.34

WALT (years)

5.4

4.9 5.0

88.988.6

391.8

420.7

09/2019 09/2020

09/2019 09/2020

09/2019 09/2020 Pro forma

09/2019 09/2020 Pro forma

09/2019 09/2020 Pro forma

1 Based on pro forma portfolio as of 07/12/2020 = including notarised properties YTD with transfer of ownership after 30/09/2020

• Vacancy rate increases marginally compared to previous year
• Vacancies with higher average rents per m² reduced the annualised in- place rent, but hardly the total average rent per m²

2 Based on 49 properties on both balance sheet dates	16

Portfolio

Broad regional allocation

Portfolio as of 30/09/2020

Acquired properties

with transfer after 30/09/2020

Source | Google Maps

Federal State	Properties	Commercial space	Annualised rent	% of rent
North Rhine-Westphalia	27	427,687 m²	14.6 m€	29.3%
Baden-Wurttemberg	9	189,986 m²	7.9 m€	15.8%
Bavaria	6	125,109 m²	7.7 m€	15.5%
Lower Saxony	8	265,255 m²	7.5 m€	15.0%
Mecklenburg Western Pomerania	7	119,742 m²	3.3 m€	6.6%
Brandenburg	5	46,443 m²	2.2 m€	4.4%
Saxony-Anhalt	6	58,611 m²	1.9 m€	3.9%
Thuringia	4	56,779 m²	1.7 m€	3.4%
Rhineland Palatinate	2	31,867 m²	1.5 m€	3.0%
Saarland	1	44,084 m²	0.9 m€	1.9%
Bremen	1	9,496 m²	0.4 m€	0.8%
Berlin	1	8,816 m²	0.2 m€	0.5%
Total	77	1,383,875 m²	49.8 m€	100.0%

Every location of our properties can be found here:

DIR Properties in Google maps

Pro forma portfolio as of 07/12/2020 = including notarised properties YTD with transfer of ownership after 30/09/2020

17

Portfolio

Diversified mix of uses

Type	Properties	Total rental space	Commercial rental space	IPR p.	Occupancy	WALT	Annualised rent	% of rent	GAV	Yield
m²	commercial
Industrial park	17	416,593 m²	389,214 m²	4.60 €	73.5%	4.0	16.4 m€	32.8%	172.8 m€	9.5%
Logistics	24	453,653 m²	428,220 m²	3.31 €	85.4%	4.9	14.6 m€	29.4%	213.7 m€	6.9%
Production & logistics	36	850,635 m²	566,441 m²	2.84 €	95.6%	6.8	18.8 m€	37.7%	231.0 m€	8.1%
Total	77	1,720,881 m²	1,383,875 m²	3.41 €	86.2%	5.4	49.8 m€	100.0%	617.5 m€	8.1%

What's the type of the property

How is the	What's the
single unit	letting structure
used	of the portfolio
	Letting structure	Number of	Annualised	% of	IPR p.	Occupancy	WALT
	properties	rent	rent	m²	commercial
	multi tenant	24	20.5 m€	41.2%	4.48 €	75.2%	4.1
	dominating major tenant	22	13.4 m€	26.9%	2.81 €	88.9%	5.9
	single tenant	31	15.9 m€	31.9%	3.04 €	95.5%	6.4
	Total	77	49.8 m€	100.0%	3.41 €	86.2%	5.4

Pro forma portfolio as of 07/12/2020 = including notarised properties YTD with transfer of ownership after 30/09/2020

18

Portfolio

Well-balanced industrial sectors

Industrial sector	% of Rent
Transport/logistics services	15.4%
Metalworking	12.6%
Mechanical and plant engineering	6.1%
Mail order/online trade	5.9%
Pharmaceutical industry	5.8%
Industry/specialist/wholesale trade	5.5%
Paper Processing/Paperboard/Packaging	4.3%
Public sector	4.3%
Plastics processing	4.1%
Automotive	3.9%
Air carrier	3.7%
Defence industry	3.1%
Textile coating	2.3%
Compressed air technology	2.1%
Electrical engineering	1.9%
Top Fifteen	81.2%

Pro forma portfolio as of 07/12/2020 = including notarised properties YTD with transfer of ownership after 30/09/2020	19

Portfolio

Solvent major tenants - adequate WALT

Tenant	Sector	% of rent		▪ Annualised in-place rents split by remaining lease duration
Aenova / Haupt Pharma	Pharmaceutical Industry	5.6%
					WALT: 5.4 Years
Versandhaus Walz GmbH, Baby Walz	Online/Mail order seller	5.1%
Lufthansa Group	Aerospace company	3.4%
Gabo Stahl GmbH	Metalworking	3.1%
DST Defence Service Tracks GmbH	Defence industry	3.0%
Bundesanstalt für Immobilienaufgaben	German Armed Forces / public sector	2.5%
Sihl GmbH	Printable materials	2.4%
keeeper tableware GmbH	Paper processing, cardboard, packaging	2.4%
CompAir / Gardner Denver	Compressed air systems	2.1%
Dachser SE	Logistics	2.0%
Top Ten Tenants		31.7%
Top Twenty Tenants	561 Tenants in total	47.1%

Pro forma portfolio as of 07/12/2020 = including notarised properties YTD with transfer of ownership after 30/09/2020	20

Portfolio

Individual properties

• Detailed information of all our properties can be found here:
• • https://deutsche-industrie-reit.de/en/property/portfolio/

21

Valuation

Portfolio

Property valuation

	Fair Value	Fair Value		Fair Value change	Change to initial
Type	per m²	Yield
in m€	(year on year)	purchase price
	commercial space
Industrial park	161.0	455.5	9.4%	+8.2%	+28.3%
Logistics	201.6	524.6	6.6%	+12.7%	+36.9%
Production & logistics	202.4	411.9	7.8%	+9.6%	+21.6%
Total	565.0	459.7	7.9%	+10.3%	+28.6%

• Year-on-yearvaluation change in the market segment logistics and production & logistics, reflects the yield compression in these two asset classes
• The positive increase in the portfolio valuation reflects the current market development in the Light Industrial sector
• Valuation was done by CBRE GmbH Berlin
• Booked valuation result for FY 2019/2020 = 37.0 m€

		9.4%
		9.1%
8.4%		8.5%
8.1%
	7.8%	7.9%

6.6%

Logistics	Production &	Industrial park	Total
			logistics
		Yield before revaluation			Yield as of 30/09/2020

• Based on valuation results as of 30/09/2020, includes only properties with transfer of ownership until 30/09/2020,

in addition 20.8 m€ balanced leaseholds results in the investment property of 585.8 m€ in the balance sheet

23

Portfolio

Valuation potential - shares imply an attractive unlevered yield of ~6.4 %

	Annualised total	Hypothetical		Portfolio value (m€)			EPRA	Number of	Hypothetical
		(book value incl.		Net debt	Premium/discount at
	portfolio rent	valuation	Yield	Net LTV	NAV	shares	NAV per
	20.8 m€ from	outstanding	share price of 16.00 €
	(m€)	multiple			(m€)	million	share (€)
		leaseholds)
Portfolio as of 30/09/2020 (IFRS)	44.5	13.34	7.5%	593.3	37%	220.1	375.7	32.0	11.74	36%
	49.8	12.40	8.1%	617.5	45%	277.9	339.6	32.0	10.61	51%
	49.8	14.25	6.8%	730.5	38%	277.9	452.6	32.0	14.14	13%
	49.8	14.50	6.7%	742.9	37%	277.9	465.0	32.0	14.53	10%
	49.8	14.75	6.6%	755.4	37%	277.9	477.5	32.0	14.92	7%
	49.8	15.00	6.5%	767.8	36%	277.9	489.9	32.0	15.31	5%
Assumptions
49.8	15.25	6.4%	780.3	36%	277.9	502.4	32.0	15.70	2%
based on pro forma portfolio
	49.8	15.50	6.3%	792.7	35%	277.9	514.8	32.0	16.09	-1%
	49.8	15.75	6.2%	805.2	35%	277.9	527.3	32.0	16.48	-3%
	49.8	16.00	6.1%	817.6	34%	277.9	539.7	32.0	16.87	-5%
	49.8	16.25	6.0%	830.1	33%	277.9	552.2	32.0	17.26	-7%
	49.8	16.50	5.9%	842.5	33%	277.9	564.6	32.0	17.64	-9%

• Premium reflects market expectation on strong rentand valueupside potential
• Assumptions based on annualised in-place rent for the proforma portfolio

Current share price level

24

Acquisitions

Acquisitions

Track record

Financial Year	Properties	Commercial space	Purchase price	Current Fair Value	Rent at acquisition	Current in-place rent	Yield on PP	Yield on FV
before 17/18	4	137,945 m²	28.7 m€	43.6 m€	4.3 m€	4.0 m€	14.9%	9.2%
2017/2018	17	332,731 m²	115.6 m€	158.5 m€	12.0 m€	12.1 m€	10.4%	7.7%
2018/2019	28	438,099 m²	174.4 m€	218.6 m€	16.4 m€	16.6 m€	9.4%	7.6%
2019/2020	20	320,297 m²	120.5 m€	144.3 m€	11.4 m€	11.7 m€	9.5%	8.1%
Total Portfolio End of	69	1,229,072 m²	439.2 m€	565.0 m€	44.2 m€	44.5 m€	10.1%	7.9%
2019/2020
Total pro forma Portfolio	77	1,383,875 m²	491.8 m€	617.5 m€	49.5 m€	49.8 m€	10.1%	8.1%
End of 2019/2020

Track record of acquisitions (purchase price in m€)

closedsigned

26

Acquisitions

Pipeline insight

• Investment opportunities of DIR:

•	Period:	01/10/2019 - 30/09/2020
•	Offerings:	339
•	Asking price vol.:	2.26 billion €
•	Rental space:	4.1 million m²

Adjusted by duplicates1 and validity2:

Type	Offerings	Rental space	Asking price	€/m²	Average
		(million m²)	vol. (billion €)		Multiple
Industrial park	60	0.7	0.36	491	14.1
Logistics	82	0.8	0.55	654	15.1
Production &	197	2.5	1.36	537	14.0
logistics
Total	339	4.1	2.26	553	14.3

1. Assets offered more than once
2. Considering only offers with valid price, space and rent data

Comparing DIR to market (01/10/2019 - 30/09/2020):

Asking vs. purchase price €/m²

553
	318
Market	DIR

Asking vs. purchase price yield

	10.7%
7.0%
Market	DIR

27

Acquisitions

Selected deals

Source | Google Maps

Metzingen	James-Watt-Str. 9		Sembach	Junkersstr. 10		Gevelsberg	Kölner Straße 64
Acquired	24/09/2020		Acquired	13/11/2020		Acquired	18/11/2020
Type	Logistics		Type	Industrial park		Type	Production & logistics
Commercial space	16,352 m²		Commercial space	10,963 m²		Commercial space	32,406 m²
Annualised rent	0.5 m€		Annualised rent	0.4 m€		Annualised rent	1.5 m€
WALT	8.3 years		WALT	12.8 years		WALT	10.3 years
Occupancy commercial	93.5%		Occupancy commercial	95.6%		Occupancy commercial	100.0%
Purchase price	5.5 m€		Purchase price	4.8 m€		Purchase price	17.0 m€
Yield	9.4%		Yield	9.1%		Yield	9.0%
Sector(s)	Fashion producer		Sector(s)	Plastics processing		Sector(s)	Metalworking

28

Case study Mönchweiler

Case study Mönchweiler

Free option out of land bank

Leveraging development potential from the land bank via sale of undeveloped, unneeded land areas

Property: #67 Mönchweiler		Sale of land area
Acquired	Q3-2019/2020	Purchaser		Local municipality
Type	Industrial park	Object of sale		Forest plot and driveway
Property area	121,354 m²	Sales area		approx. 60,000 m²
Purchase price	8.9 m€	Sales price		Approx. 1.8 m€

Win-Win situation for DIR and purchaser

• unnecessary land area without own development possibility
• sale has no impact on cash inflow from rents for DIR
• prime micro location, but totally undeveloped area
• municipality intends to develop the area and has the sole legal possibility to do so
• DIR has the area → municipality has the re-zoning power

Areas sold have been marked red

30

Financing

Financing

Debt structure

				Loan	Loan	Fixed interest
#	Lender	Interest	Amortisation	Duration
nominal	(years)
				(years)
1	Secured Corporate bond	4.00%	0.00%	118.0 m€	1.9	1.9
1	Convertible bond	2.00%	0.00%	41.6 m€	5.7	5.7
16	Savings Banks	1.76%	4.87%	125.5 m€	10.2	7.5
8	Cooperative Banks	1.22%	5.55%	22.9 m€	14.7	9.4
1	Private Bank	2.25%	0.00%	10.0 m€	4.5	4.5
27	Total	2.60%	2.32%	318.1 m€	6.7	5.2

Loan allocation (% initial nominal loan amount)

Private Bank

3%

Savings banks

40%

Corporate Bond

37%

Convertible Bond

• Further diversification of financial instruments
• Long term maturity profile
• Cost of debt down to 2.60% (2.91%, 30/09/19)
• Average interest rate of bank loans at 1.7%
• ICR of 7.86 times (EBITDA/Net interests)
• Loans after balance sheet date ∿6.1 m€ at ∿0.99%
• Current loan pipeline ∿75.6 m€ at ∿1.42%

Maturity profile (m€ initial nominal loan amount)

120 m€

110 m€

100 m€

90 m€

80 m€

70 m€

60 m€

50 m€

40 m€

30 m€

Cooperative

banks 7%

13%

20 m€

10 m€

0 m€

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

32

Results

FY 2019/2020

Financial Results FY 2019/2020

Condensed IFRS balance sheet

Including balanced leaseholds of 20.8 m€. Nominal FV of the properties is 565.0 m€

Fair value of financial derivatives (interest SWAP)

Liquidity management by financial investments

			TEUR	30/09/2020	30/09/2019		TEUR	30/09/2020	30/09/2019
		Assets					Equity and liabilities
		Investment properties		585,819.7	392,849.0	Issued share capital	32,079.5	23,451.9
		Intangible assets	3.4	1.8	Capital reserve	229,993.6	89,530.2
		Property, plant and equipment	1,037.4	1,051.9	Other reserves	50.0	50.0
		Derivative financial instruments			491.4		0.0	Other Comprehensive Income		491.4	0.0
		Other financial assets			22,949.2	0.0	Retained earnings	114,585.5	68,431.1
		Other non-current assets	7,474.1	38,886.2	Total equity	377,200.0	181,463.2
		Total non-current assets	617,775.2	432,788.9	Liabilities to banks	134,664.2	67,526.5
		Trade and other receivables	3,420.1	815.9	Corporate bonds	118,065.2			117,904.0
		Other current assets		94,618.3	2,883.7	Convertible bonds	49,088.0	41,184.0
		Cash and cash equivalents	35.1	2,065.6	Other non-current liabilities	21,115.4		1,530.1
		Total current assets	98,073.5	5,765.2	Total non-current liabilities	322,932.8		228,144.6
									Financial liabilities	7,820.7		3,956.9
		Non-current assets held for sale	0.0	435.0	Liabilities to other creditors	0.0	20,177.7
									Other current liabilities	7,895.3	5,246.7
									Total current liabilities	15,715.9	29,381.3
			Total assets	715,848.7	438,989.1	Total equity and liabilities	715,848.7	438,989.1

Capital increases in 11/19 (at

16.25 €) and 6/20 (at 20.0 €) from 23.5m to 32.1m shares

Corporate bond

nominal 118.0 m€

Convertible bond nominal 41.6 m€

Mainly liabilities from

leaseholds

34

Financial Results FY 2019/2020

NAV, LTV and REIT equity ratio

EPRA NAV

TEUR	30/09/2020	30/09/2019
Total equity	377,200.0	181,463.2
NAV	377,200.0	181,463.2
Fair value of derivative instruments		-491.4		-
Deferred taxes	-		-
	Interest SWAP
EPRA NAV	376,708.6	181,463.2
# of shares	32,079,505	23,451,945
NAV per share - undiluted (€)	11.74	7.74

REIT equity ratio

TEUR	30/09/2020	30/09/2019
Total equity	377,200.0	181,463.2
Investment properties	585,819.7	392,849.0
REIT-Equity ratio	64.4%	46.2%

REIT criteria fulfilled (45% by law)

LTV

TEUR	30/09/2020	30/09/2019
Liabilities to banks	134,664.2	67,526.5
Liabilities from corporate bonds	118,065.2	117,904.0
Liabilities from convertible bonds	49,088.0	41,184.0
Other non-current liabilities	21,112.4	1,527.1
Non-current financial liabilities	322,929.8	228,141.6
Liabilities to banks	7,820.7	3,956.9
Liabilities to other creditors	0.0	20,177.7
Current financial liabilities	7,820.7	24,134.6
Other non-current financial assets	-22,949.2	0.0
Cash and cash equivalents	-35.1	-2,065.7
Trust accounts	212.5	-459.0
Short-term loans	-87,928.5	0.0
Current financial assets	-88,028.7	-2,524.7
Net debt	220,050.1	249,751.5
Investment properties	585,819.7	392,849.0
Advance payments on investment properties	7,474.1	38,886.2
Non-current assets held for sale	0.0	435.0
Total Investment properties	593,293.8	432,170.2
Net LTV	37.1%	57.8%

35

Financial Results FY 2019/2020

Condensed IFRS income statement

Operating expenses	2019/2020	2018/2019
Recoverable operating	-9,211.6	-3,755.3
and ancillary costs
Maintanance	-2,803.8	-2,195.2
Property management	-1,180.9	-817.4
Asset management	-3,106.0	-1,762.7
Other operating	-367.6	-258.7
expenses
Total	-16,669.8	-8,789.3

Other admin expenses	2019/2020	2018/2019
Legal and consulting costs	-380.0	-93.1
Remuneration of the Supervisory	-27.5	-28.1
Board
Related parties	-509.9	-471.9
Other	-1,660.9	-999.8
Total	-2,578.2	-1,592.9

		TEUR	01/10/2019 - 30/09/2020	01/10/2018 - 30/09/2019
		Gross Rental income	40,781.3	25,481.2
Income from operating and ancillary costs	7,174.2	4,258.5
		Operating expenses		-16,669.8	-8,789.3

		Net rental income (NRI)	31,285.7		20,950.5
Other income (incl. sales of investment properties )	175.6		430.7
Result from the revaluation of investment properties		36,981.7		37,552.1
		Personnel expenses	-854.2	-808.3
		Depreciation of assets	-157.8	-115.5
Impairment loss of inventories and receivables		-2,564.1		-208.7
		Other operating expenses		-2,578.2	-1,592.9
		EBIT	62,288.7	56,207.8
	Valuation result of financial liabilities		-7,904.0		-832.0
		Interest income	5,473.2		98.6
		Interest expenses	-8,147.2	-6,824.7
	Ground rents (Finance lease)	-890.0	0.0
		EBT	50,820.7	48,649.7
		Income and other taxes	-0.2	22.2
		Net income	50,820.5	48,671.9

Regular valuation in 09/2020

• 52.7 m€ higher market values vs. capex and transaction costs

IFRS-Valuation effect from financial investments amounting to 1.6 m€ and impairments for rent receivables

IFRS valuation effect of the convertible bond

36

Financial Results FY 2019/2020

FFO / aFFO reconciliation

FFO/aFFO

TEUR 01/10/2019 - 30/09/2020 01/10/2018 - 30/09/2019
Net income	50,820.5	48,671.9
Adjustment amortisation and depreciation	157.8		115.5
Adjustment revaluation result	-36,981.7		-37,552.1
Adjustment revaluation result financial liabilities		7,904.0		832.0
Adjustment sales result		0.0	-57.0
Adjustment for special effects / non-cash expenses + income		2,124.9			446.1
Adjustment for one-off expenses/income		619.9		431.2
FFO	24,645.5	12,887.7
FFO per share undiluted (€)		0.84	0.60
FFO per share diluted (€)		0.81	0.54
- Capex	-4,943.6	-3,273.4
aFFO	19,701.9	9,614.3
aFFO per share undiluted (€)	0.67	0.44
aFFO per share diluted (€)	0.65	0.41
Avg. # of shares for the period	29,297,634	21,619,034

FFO adjustment convertible bond

Adjustment	TEUR
Increase / decrease in individual value	671.4
adjustments for financial receivables
Increase / decrease in individual value	1,271.8
adjustments for rent receivables
Valuation adjustments for interest expenses	181.7

Increase of FFO per share +40%

37

Financial Results FY 2019/2020

FFO-Guidance and Dividend proposal FY 2020/2021

• FFO guidance is mainly driven by prospective acquisitions
• DIR intends to invest between 100 m€ and 200 m€ in the FY 2020/2021
• Based on current projections DIR expects

an FFO between 32 m€ and 34 m€for the Financial Year 2020/2021

• FFO run rate between 38 m€ and 40 m€ by the end of FY 2020/2021
• The Management Board plans to propose a dividend of EUR 0.24 per share at the Annual General Meeting in March 2021

38

Shares,

Investor Relations,

Management

DIR Shares

Basic data & shareholder structure

Shareholder structure:	Rolf Elgeti, 0.5%

Basic data

Obotritia Capital

Group 29.7%

Försterweg Beteiligungs GmbH, 3.6%	VBL, 9.8%
	Parson
	GmbH, 6.2%
Babelsberger Beteiligungs GmbH, 4.4%	Aurelius Growth
	Investments S.a.r.l.; 5.2%
Obotritia Beta Invest GmbH, 4.7%

Massachusetts Financial

Services, 5.0%

Obotritia Alpha Invest GmbH, 7.0%	Obotritia Delta Invest
GmbH, 2.2%

Gert Purkert, 4.7%

Obotritia Capital KGaA, 7.8%

Rocket Internet SE, 3.7%

Remaining free float*, 34.0%

Olive Tree Invest

GmbH, 0.9%

ISIN	DE000A2G9LL1
WKN	A2G9LL
Ticker Symbol	JB7
Number of shares	32.079.505
Nominal capital	32,079,505.00 €
Share class	Bearer shares
Stock exchanges	Berlin (Regulated Market)
Frankfurt, XETRA (Prime Standard)
Designated Sponsor	Oddo Seydler Bank AG
Listing	7 December 2017

Attributable to Rolf Elgeti	Free Float*
(Obotritia Group shares + own) =
42.5%
30.2%

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

40

DIR Shares

Share performance & coverage

23.0 €

rice

WA

olume

A

T

1,500 k€

22.5 €

1,450 k€

22.0 €

1,400 k€

21.5 €

1,350 k€

21.0 €

1,300 k€

20.5 €

6

20.0 €

1,250 k€

19.5 €

1,200 k€

19.0 €

1,150 k€

18.5 €

1,100 k€

18.0 €

17.5 €

1,050 k€

17.0 €

1,000 k€

16.5 €

WA

5

950 k€

16.0 €

4

15.12 €

900 k€

15.5 €

15.0 €

850 k€

14.5 €

800 k€

14.0 €

750 k€

13.5 €

700 k€

13.0 €

12.5 €

650 k€

12.0 €

600 k€

11.5 €

550 k€

11.0 €

3

500 k€

10.5 €

450 k€

10.0 €

2

9.5 €

400 k€

9.0 €

350 k€

8.5 €

300 k€

8.0 €

1

250 k€

7.5 €

7.0 €

200 k€

6.5 €

A

T

150 k€

6.0 €

100 k€

67 k€

5.5 €

50 k€

5.0 €

4.5 €

07/02/20

07/07/20

0 k€

07/12/17

07/01/18

07/02/18

07/03/18

07/04/18

07/05/18

07/06/18

07/07/18

07/08/18

07/09/18

07/10/18

07/11/18

07/12/18

07/01/19

07/02/19

07/03/19

07/04/19

07/05/19

07/06/19

07/07/19

07/08/19

07/09/19

07/10/19

07/11/19

07/12/19

07/01/20

07/03/20

07/04/20

07/05/20

07/06/20

07/08/20

07/09/20

07/10/20

07/11/20

07/12/20

07/01/21

	Event		Date	Price
	52 weeks low		06/04/2020	14.80	€
1	Capital increase 1.5m shares	23/04/2018	7.75	€
2	Capital increase 1.5m shares	17/09/2018	10.00	€
3	Capital increase 4.5m shares	14/12/2018	11.00 €
4	Capital increase 0.9m shares	19/09/2019	15.75	€
5	Capital increase 5.7m shares	15/11/2019	16.25	€
6	Capital increase		19/06/2020	20.00	€
	52 weeks high		05/05/2020	23.60	€
			Coverage
Bank		Date		Target price
Baader		18/12/2020		24.00 €
Berenberg		18/12/2020		23.00 €
ODDO BHF		18/12/2020		24.50 €

Market Cap as of 15/01/2021: ~ 504 m€

41

Financial calendar & IR contact

We keep you informed

IR contact

René Bergmann | CFO

August-Bebel-Str. 68

D-14482 Potsdam

E-Mail:[e-mail]

Tel:	+49 (0) 331 / 740 076 535
Fax:	+49 (0) 331 / 740 076 520

Financial calendar

21/01/2021 Virtual Road Show

11/02/2021 Q1 2020/2021 Quarterly statement

24/02/2021 ODDO SEYDLER BANK Small & Mid Cap Conference 2021

12/03/2021 Annual general meeting

12/05/2021 H1 2020/2021 financial report

12/08/2021 Q3 2020/2021 Quarterly statement

16/12/2021 Publication of the annual report for the financial year 2020/2021

Further Information about our share, analyst coverage or financial calendar

you'll find here:

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

42

Management

Experienced 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.

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.

43

Appendix

Appendix

Glossary I

#	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 space	Also 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	Occupancy commercial	Rented commercial space divided by rentable (total) commercial space
6	WALT	Weighed average lease terms - only contracts with an agreed fixed term have been considered
7	IPR commercial per m²	Rent of leased commercial units divided by space of leased commercial units
8	Current market value (Fair	Value determined by means of market value appraisal or, where this is not yet available, the purchase price
Value)
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	aFFO	FFO - Value-enhancing investments (Capex)
13	GAV	Gross Asset Value - Value of investment properties on the balance sheet

45

Appendix

Glossary II

• Glossary

14	Net-LTV	Net loan-to-value - debt (financial liabilities minus cash) divided by GAV
15	Cost Ratio	ratio between administrative expenses (after adjustment for one-off effects) and gross rental income
16	EBIT	operating income (sale& lease) excluding administration costs & depreciation before interest and income taxes
17	EBT	operating result (EBIT) + financial income excluding financial expenses (interest) before income tax
18	EPRA	The European Public Real Estate Association is a non-profit organization that represents the interests of European public real estate
companies
19	Coverage	Valuation of the company's share by external financial analysts and publication of investment recommendations
20	(Gross Initial) Yield	net rent income divided by purchase price (excluding transfer costs)
		Generic term for various types of companies in the industrial sector and includes activities of storage, distribution of commercial goods as
21	Light Industrial	well as their administration and production, commercial yards, logistics real estate (warehouses, transfer station, distribution halls and
		special warehouses) and industrial real estate (commercial storage, packaging and smaller production facilities)
22	valuation multiple	Information about the profitability of an investment - purchase price divided by annual market rent, inverse of initial return
23	Proforma-Portfolio	Portfolio including notarised properties with transfer of ownership after balance sheet date
24	like-for-like	Periodic review of the economic development of the previous year's portfolio (adjusted for purchases and sales in the current year)
25	ICR	Interest coverage ratio, EBITDA divided by interest expenses, the ability of the company to pay the interest back based on the results of
their operations

46

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 (TEUR) (exceptions are indicated), which may result in rounding differences.

Unless otherwise specified all information are for the financial year ended 30 September 2020.

47