LEG Immobilien : Presentation Portfolio and major stake acquisition

LEG Immobilien SE

Accelerating growth

1 December 2021	2021

LEG Immobilien SE

Disclaimer

While LEG Immobilien SE ("The Company") has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature and is intended to provide an introduction to, and an overview of the Company's business. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external sources, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate.

This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realised from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation, and supply and demand. The Company has based these forward- looking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice and the Company does not undertake any duty to update the information and forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

This presentation does not constitute an offer or invitation to purchase or sell any shares in the Company and neither this presentation or anything in it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

LEG Immobilien SE	2

Accelerating growth

Significant push for LEG's market positioning

15,400 units acquired and clear road to majority for BCP secured

Two building blocks improve the market position and offer growth potential

1 Portfolio acquisition

2 BCP N.V. majority secured: 31% direct + call option

• C. 15,400 units acquired from Adler S.A.
• Total acquisition price for 100% of the asset holding companies of €1,291m (19.8x net cold rent)
• Focus on affordable living with significant top- and bottom- line potential
• FFO I contribution in year 1 of €29m, expected to grow by over 30% within 5 years
• Accretive deal, positive on FFO I and NTA basis

• Perfect fit - securing attractive portfolio with 12,100 units in LEG target markets and offering new entry opportunities
• 24.1% directly acquired shares from institutional minorities
• 6.8% directly acquired shares from Adler S.A
• 63.0% secured via a call option from Adler S.A.
• Total acquisition price for the shares of €328m (-4%to NTA1)
• Call option 1 January - 30 September 2022, strike price €157 per share (+10% to NTA1)

• Significant broadening of footprint - 20% of units now outside NRW
• All debt-financing - bridge financing secured at attractive terms. Take out via debt and disposals
• Guidance 2022 raised to FFO I €475m - €490m (prev. €450m - €460m)
• €5m contribution to foundation "Dein Zuhause hilft" for social work within new locations

1 Q3 2021 reported

LEG Immobilien SE	3

Accelerating growth

Major portfolio acquisition in target markets outside NRW

C. 15,400 units mainly in North-Western Germany

Acquired portfolio
in units	Schleswig-Holstein
	Wilhelmshaven,	~700
	Aurich, Norden etc.
	~10,300

		Hanover/Wolfsburg/
		Brunswick etc.
		~2,000
in GAV
€m	Göttingen
	Non-core1
	~1,100
	~1,300

High-Growth

Stable

Higher-Yielding

1 Non-core assets: Mainly Mecklenburg-West Pomerania, Thuringia, Saxony 2 On comparable basis, i.e. similar market mix

3 After financing costs

Background & rationale

• C. 15,400 units - acquisition of 100% of asset holding companies
• Acquisition price of €1,291m
• Net cold rent multiple of c. 19.8x based on in-place rent, i.e. superior yield of 5.1% to LEG portfolio (4.4% as of Q3 21)
• Annualised FFO I contribution of c. €29m in 20223 - over 30% growth until 2026
• Transfer of units as at year end 2021
• Focus on affordable living with actual average rents of 5.93€/sqm, 3% subsidised units
• Strengthening of our presence outside NRW in Lower Saxony and Schleswig-Holstein
• C.1,300 units (8% of portfolio) mainly in Eastern Germany as non-core units and up for disposal within 12 months

Locations	Units	of total	Rent €/sqm	Market
Wilhelmshaven	6,800	44%	5.70	Higher yielding
Wolfsburg	1,300	8%	6.66	High-growth
Göttingen	1,100	7%	5.85	Stable
Top15	12,600	82%
Non-core	1,300	8%
Total	15,400	100%	5.93

LEG Immobilien SE	4

Portfolio deep dive

Wilhelmshaven with c. 6,800 units to become a major LEG location

Similar structure as our higher yielding markets - further potential via active management

Wilhelmshaven to be among top3 LEG higher-yielding markets

Market segment	Location	LEG units	LEG rent €/sqm	EPRA -Vacancy
Higher-Yielding	Recklinghausen	9,018	5.47	2.3%
	Gelsenkirchen	7,260	5.71	7.5%4
	Wilhelmshaven	6,831	5.70	7.2%	Wilhelmshaven
	Duisburg	6,315	6.02	2.8%

Similar to existing major LEG markets				LEG actively managing vacancy
Market characteristics	Wilhelmshaven	Duisburg	Gelsenkirchen
in its higher yielding markets
Purchasing power per capita	20,635 €	19,582 €	18,817 €
6.5%
Unemployment rate	10.3%	11.9%	14.3%		5.6%
Average age of population	46 years	44 years	44 years			4.2%	3.8%	3.8%
Share population above 65 years	26.0%	20.4%	20.7%
CAGR in-place rents last 5 years	3.9% p.a.	3.5% p.a.	2.6% p.a.
Vacancy	6.1%	4.3%	4.7%
	Q1 19	Q1 20	Q1 21	Q2 21	Q3 21
Sources: 1. 21stRE - Real Estate Location Analytics (RELAS)	2. VALUE AG market data base, asking rents Q3 2016 - Q3 2021	3. CBRE/Empirica vacancy index 2020 (data as of 2019)	4. Gelsenkirchen vacancy reduced by almost 5%-pts since Q1 2017

LEG Immobilien SE	5