Post on 22-Mar-2020
transcript
Deutsche Industrie REIT-AG (DIR)FY 2018/2019 Financial Results
19 December 2019
Content
▪ 2018/2019 Highlights
▪ Portfolio
▪ Valuation
▪ Acquisitions
▪ Disposals
▪ Financing
▪ Results FY 2018/2019
-------------------------------------------------
▪ Appendix: IR, Glossary, Disclaimer
2
FY 2018/2019 Highlights
Highlights FY 2018/2019
Key figures
4
Properties
63
Portfolio
Value
493.1 m€
Commercial
Space
1.15m sqm
Annualised
In-Place Rent
44.0 m€
FFO
12.9 m€
LTV
57.8%
REIT equity
ratio
46.2%
Rental
Income
25.5 m€
Pro forma
Portfolio YTD*
Key Figures
FY 2018/2019
Land Bank
2.6m sqm
* Based on pro forma portfolio as of 19/12/2019 = including notarised properties YTD with transfer of ownership after 30/09/2019
2019/2020
FFO-Guidance
23-25 m€
Revaluation
gains
37.6 m€
Occupancy
88%
Highlights FY 2018/2019
Key figures
5
0.37
0.60
FY 2017/2018 FY 2018/2019
FFO per share (€)
3.99
7.74
30/09/2018 30/09/2019
EPRA NAV per share (€)
Avg. # of
shares 14,511,150 21,619,034 # of shares 18,000,056 23,451,945
FY 2018 FY 2019
NRI margin: 79% ↗ 82%
Earnings per share (EUR) 0.95 ↗ 2.25
Cost ratio (recurring costs to rental income): 11.8% ↘ 7.7%
Costs of debt (non-current financial liabilities): 3.7% ↘ 2.9%
Portfolio
PortfolioSustainable external and internal growth
1 Based on pro forma portfolio as of 19/12/2019 = including notarised properties YTD with transfer of ownership after 30/09/20197
Absolute growth year on year and pro forma1 Like-for-like development2
22
49
63
09/2018 09/2019 Pro forma
No. of properties
84.9
88.988.2
09/2018 09/2019 Pro forma
Occupancy (%)
3.9
4.94.8
09/2018 09/2019 Pro forma
WALT (years)
167
392
493
09/2018 09/2019 Pro forma
GAV (m€)
16.1
33.1
44.0
09/2018 09/2019 Pro forma
Annualised in-place rent (m€)
3.23
3.34
3.50
09/2018 09/2019 Pro forma
IPR (€/sqm)
16.016.8
09/2018 09/2019
Annualised in-place rent (m€)
3.233.43
09/2018 09/2019
IPR (€/sqm)
85.184.3
09/2018 09/2019
Occupancy (%)
166
192
09/2018 09/2019
GAV (m€)
2 Based on 21 properties on both balance sheet dates
PortfolioBroad regional allocation
8
Pro forma portfolio as of 19/12/2019 = including notarised properties YTD with transfer of ownership after 30/09/2019Source: Google Maps
Portfolio as of 30/09/2019
Acquired properties
with transfer after 30/09/2019
Every location of our properties can be found here:
DIR Properties in Google maps
Federal State Properties Commercial space Annualised rent % of rent
North Rhine-Westphalia 24 333,671 sqm 12,903 k€ 29.3%
Lower Saxony 7 253,776 sqm 8,045 k€ 18.3%
Bavaria 6 121,909 sqm 7,547 k€ 17.1%
Baden-Wurttemberg 4 109,238 sqm 5,598 k€ 12.7%
Mecklenburg Western Pomerania 7 127,364 sqm 2,988 k€ 6.8%
Brandenburg 5 50,184 sqm 2,090 k€ 4.7%
Thuringia 4 57,229 sqm 1,689 k€ 3.8%
Rhineland Palatinate 1 20,905 sqm 1,022 k€ 2.3%
Saarland 1 44,084 sqm 948 k€ 2.2%
Saxony-Anhalt 2 11,900 sqm 558 k€ 1.3%
Bremen 1 9,903 sqm 420 k€ 1.0%
Berlin 1 8,816 sqm 221 k€ 0.5%
Total 63 1,148,979 sqm 44,027 k€ 100.0%
Type Properties Total rental space Commercial rental space IPR p. sqm Vacancy WALT Annualised rent % of rent GAV Yield
Logistics 20 391,093 sqm 376,758 sqm 3.55 € 10.6% 4.4 14,380 k€ 32.7% 177,890 k€ 8.1%
Production & logistics 28 590,027 sqm 422,158 sqm 2.85 € 4.6% 7.1 13,901 k€ 31.6% 163,772 k€ 8.5%
Industrial park 15 375,748 sqm 350,064 sqm 4.41 € 21.9% 2.7 15,746 k€ 35.8% 151,460 k€ 10.4%
Total 63 1,356,868 sqm 1,148,979 sqm 3.50 € 11.8% 4.8 44,027 k€ 100.0% 493,122 k€ 8.9%
PortfolioDiversified mix of uses
9
What‘s the type of
the property
How is the single
unit used
Main Use Units Annualised rent % of rent
Commercial 1,417 42,578,385 k€ 96.7%
Parking 1,193 516,892 k€ 1.2%
Other 357 876,801 k€ 2.0%
Residential 19 55,215 k€ 0.1%
Total 2,986 44,027,293 k€ 100.0%
Mainly commercial use
(no significant dilution)
Pro forma portfolio as of 19/12/2019 = including notarised properties YTD with transfer of ownership after 30/09/2019
Production34%
Logistics37%
Storage12%
Office16%
Other commercial space 1%
Types of use by commercial space
PortfolioWell-balanced industrial sectors
10Pro forma portfolio as of 19/12/2019 = including notarised properties YTD with transfer of ownership after 30/09/2019
cyclical53%
non-cyclical41%
publicsector
5%
privat/ non commercial
1%
Cyclicality by total rentIndustrial sector % of Rent
Transport/logistics services 15.2%
Metalworking 10.7%
Mail order/online trade 6.7%
Pharmaceutical industry 6.6%
Mechanical and plant engineering 6.3%
Automotive supplier 6.2%
Industry/specialist/wholesale trade 5.0%
Public sector 4.7%
Plastics processing 3.7%
Defence industry 3.5%
Air carrier 2.9%
Textile coating 2.7%
Compressed air technology 2.4%
Paper Processing/Paperboard/Packaging 2.3%
Retail trade 2.1%
Top Fifteen 81.0%
PortfolioSolvent major tenants – adequate WALT
▪ Annualised in-place rents split by remaining lease duration
11
WALT: 4.8 Years
Tenant Sector % of rent
Aenova / Haupt Pharma Pharmaceutical Industry 6.3%
Versandhaus Walz GmbH, Baby Walz, Online/Mail order seller 5.8%
DST Defence Service Tracks GmbH Defence industry 3.4%
Otto ( GmbH& Co KG ) Logistics 3.3%
Gabo Stahl GmbH Metalworking 2.9%
Bundesanstalt für Immobilienaufgaben German Armed Forces / Customs 2.8%
SIHL GMbH Printable materials 2.7%
Lufthansa Aerospace company 2.5%
CompAir / Gardner Denver Compressed air systems 2.3%
Veenendaal Schaumstoffwerk GmbH Foam processing 2.0%
Top Ten Tenants 34.1%
Top Twenty Tenants 487 Tenants in total 50.3%
Pro forma portfolio as of 19/12/2019 = including notarised properties YTD with transfer of ownership after 30/09/2019
PortfolioIndividual properties
▪ Detailed information of all our properties can be found here:
▪ https://www.deutsche-industrie-reit.de/en/portfolio/properties/
12
Valuation
PortfolioProperty valuation
14
9.6%
9.4%
10.1%
9.6%
8.1%
8.5%
9.1%
8.5%
Logistics Production &logistics
Industrial park Total
Yield before revaluation Yield as of 30/09/2019
▪ Valuation uplift reflects the market development in the light
industrial sector
▪ Highest change in logistics, shows the yield compression in this
asset class
▪ Longer WALT and more sale & lease back acquisitions in the
production & logistics category results in lower yields
▪ Valuation was done by CBRE
TypeCommercial rental
space in sqm
Annualised
rent in k€GAV in k€
Fair Value per
sqm
commercial
space
YieldValuation
change
Industrial park 241,709 9,011 98,930 409 9.1% 12.7%
Production &
logistics377,698 12,527 148,922 394 8.4% 11.5%
Logistics 299,509 11,602 143,960 481 8.1% 19.0%
Total 918,916 33,141 391,812 426 8.5% 14.4%
Portfolio value
(mEUR)
Value per sqm
rental space
Value per sqm
land bankYield In-place rent
Pro forma portfolio 19/12/2019 493.1 m€ 363 €/sqm 188 €/sqm 8.9% 3.50 €/sqm
...at implied yield on share price level of 16 € 687.9 m€ 507 €/sqm 262 €/sqm 6.4% 3.50 €/sqm
Required rent at constant yield 687.9 m€ 507 €/sqm 262 €/sqm 8.9% 4.45 €/sqm
Annualised
total portfolio
rent (m€)
Valuation
multiple Yield
Portfolio value
(mEUR)Net LTV
Net debt
outstanding
NAV
(m€)
Number
of shares
million
Hypothetical
NAV per
share (€)
premium/
discount at
share price of
16.00 €
Portfolio as of 30/09/2019 (IFRS) 33.1 11.8 8.5% 391.8 57,8% 249.8 181.5 23.45 7.74 107%
Pro forma portfolio as of 19/12/2019 44.0 11.2 8.9% 493.1 45% 221.9 271.2 29.16 9.30 72%
Assumptions
based on pro forma portfolio
44.0 12.0 8.3% 528.3 42% 221.9 306.4 29.16 10.51 52%
44.0 13.0 7.7% 572.4 39% 221.9 350.4 29.16 12.02 33%
44.0 14.0 7.1% 616.4 36% 221.9 394.5 29.16 13.53 18%
44.0 15.0 6.7% 660.4 34% 221.9 438.5 29.16 15.04 6%
44.0 16.0 6.3% 704.4 32% 221.9 482.5 29.16 16.55 -3%
44.0 16.5 6.1% 726.5 31% 221.9 504.5 29.16 17.30 -8%
44.0 17.0 5.9% 748.5 30% 221.9 526.6 29.16 18.06 -11%
44.0 17.5 5.7% 770.5 29% 221.9 548.6 29.16 18.81 -15%
44.0 18.0 5.6% 792.5 28% 221.9 570.6 29.16 19.57 -18%
44.0 18.5 5.4% 814.5 27% 221.9 592.6 29.16 20.32 -21%
44.0 19.0 5.3% 836.5 27% 221.9 614.6 29.16 21.07 -24%
PortfolioValuation potential - share price trades at attractive ~6.4% yield
15
Current
share
price
level
▪ Premium reflects market expectation on strong rent and
value upside potential
▪ Share price level implies ~6.3 – 6.7 % yield
▪ Value per sqm moderate, also at 6.4 % yield
▪ Still low rent in comparison to market level of 5 – 7 €/sqm
Acquisitions
AcquisitionsKloster Lehnin, Dinslaken, Wedemark
17
Kloster Lehnin Damsdorfer Hauptstraße 36 B
Acquired 18/11/2019
Type Logistics
Rental space 13,450 sqm
Annualised in-place rent 454 k€
WALT 1.1 years
Vacancy 0.0%
Purchase price 3,300 k€
Yield 13.8%
Sector(s) Archiving
Dinslaken Lanterstraße 34
Acquired 29/11/2019
Type Production & logistics
Rental space 3,610 sqm
Annualised in-place rent 167 k€
WALT 5.0 years
Vacancy 0.0%
Purchase price 1,850 k€
Yield 9.0%
Sector(s) Production of safety lighting
Wedemark Industriestraße 44
Acquired 03/12/2019
Type Logistics
Rental space 20,180 sqm
Annualised in-place rent 833 k€
WALT 0.5 years
Vacancy 4.6%
Purchase price 8,150 k€
Yield 10.2%
Sector(s) Automotive
AcquisitionsOberding
Oberding Lohstraße 22-28a
Acquired 12/12/2019 Vacancy 23.6%
Type Industrial park Purchase price 21.200 k€
Rental space 49,547 sqm Yield 17.9%*
Annualised in-place
rent3,789 k€ Sector(s) Aerospace companies, logistics
WALT 2.3 years
18* taking into account 1,495 k€ ground rent, the gross initial yield is 10.8%.
Disposals
Opportunistic disposalStralsund
20
Reasons:
• High vacancy, poor maintenance condition
• Good location near city centre of Stralsund
• Oversized land, only 5% used
• Development potential for residential, office or
similar use
• Purchase price 180 k€ → Sales price 610 k€
Stralsund Platz des Friedens 17-23; 31-47
TypeProduction &
logisticsSector(s)
Car services, handcrafter,
building companies
Property area 41,569 sqm Land use 5%
Commercial units 28 Date of transfer 01/07/2016
Total Rental space 3,235 sqm Commercial Rental space 2,279 sqm
Annualised In place rent 36 k€ IPR/sqm. Commercial 2.34 €/sqm
WALT 2.1 years Vacancy 72.4%
Book value 553 k€ Yield 6.4%
Financing
FinancingEquity
22
# Shares Date New shares Price Gross proceeds
Listing 15,000,048 07/12/2017 0 4.83 € 0 €
#1 16,500,052 23/04/2018 1,500,004 7.75 € 60% 11,625,031 €
#2 18,000,056 17/09/2018 1,500,004 10.00 € 29% 15,000,040 €
FY 2017/2018 3,000,008 8.88 € 40% (based on Listing) 26,625,071 €
#3 22,500,072 14/12/2018 4,500,016 11.00 € 10% 49,500,176 €
#4 23,451,945 19/09/2019 951,873 15.75 € 43% 14,992,000 €
FY 2018/2019 5,451,889 11.83 € 19% (based on Ø 17/18) 64,492,176 €
#5 29,163,187 15/11/2019 5,711,242 16.25 € 3% 92,807,683 €
Total 14,163,139 12.99 € 24% (based on Ø 18/19) 183,924,929 €
Capital measures since IPO
FinancingDebt
23
▪ 02/2019 Bond increased by EUR 28.1 million
▪ 06/2019 Convertible bond with EUR 41.6 million issued
▪ Seven loans concluded with EUR 66.3 million in 2018/2019
▪ Three further loans of EUR 17.5 million already concluded
▪ Six more loans in pipeline
*All figures are based on the pro forma portfolio as of 19 December 2019 = including notarised contracts with transfer of ownership after 30 September 2019 and loan/bond figures signed by 19 December 2019.
# Lender % Interests Amortisation Loan nominalLoan
Duration
Fixed
interestFV
Collateralised
properties
Property
LTV nominal
1 Secured Corporate bond 46.1% 4.00% 0.00% 118,000,000 € 2.9 2.9 146,040,000 € 9 80.8%
1 Convertible bond 16.2% 2.00% 0.00% 41,600,000 € 6.7 6.7 58,942,000 € 17 70.6%
10 Savings Banks 35.3% 2.00% 5.11% 90,325,000 € 10.0 8.5 185,250,000 € 24 48.8%
3 Cooperative Banks 2.5% 1.64% 6.99% 6,300,000 € 13.4 8.0 15,250,000 € 3 41.3%
15 Total w/o Pipeline 100.0% 2.91% 1.97% 256,225,000 € 6.3 5.6 405,482,000 € 53 63.2%
6 Pipeline 12.1% 1.36% 5.00% 35,190,000 € 11.6 11.6 66.440,000 € 9 53.0%
21 Total incl. Pipeline 100.0% 2.72% 1.74% 291,415,000 € 6.9 6.3 471,922,000 € 62 61.8%
FinancingDebt
24
Corporate Bond46%
Savings banks35%
Coop. Banks3%
Convertible Bond16%
Allocation Nominal Loans
0 m€
20 m€
40 m€
60 m€
80 m€
100 m€
120 m€
2019 2020 2021 2022 2024 2025 2026 2028 2029 2035 2036
Maturity profile (nominal amounts)
*All figures are based on the pro forma portfolio as of 19 December 2019 = including notarised contracts with transfer of ownership after 30 September 2019 and loan/bond figures signed by 19 December 2019.
Results
FY 2018/2019
k€ 30/09/2019 30/09/2018 k€ 30/09/2019 30/09/2018
Assets Equity and liabilities
Investment properties 392,849.0 168,242.2 Issued share capital 23,451.9 18,000.1
Intangible assets 1.8 3.2 Capital reserve 89,530.2 31,976.8
Property, plant and equipment 1,051.9 914.2 Other reserves 50.0 50.0
Other non-current assets 38,886.2 11,196.1 Retained earnings 68,431.1 21,784.2
Total non-current assets 432,788.9 180,355.7 Total equity 181,463.2 71,811.0
Trade and other receivables 815.9 265.6 Liabilities to banks 67,526.5 11,042.5
Other current assets 2,883.7 2,877.6 Corporate bonds 117,904.0 89,686.2
Cash and cash equivalents 2,065.7 117.1 Convertible bonds 41,184.0 0.0
Total current assets 5,765.2 3,260.3 Other non-current liabilities 1,530.1 1,302.9
Total non-current liabilities 228,144.6 102,031.6
Financial liabilities 3,956.9 870.8
Non-current assets held for sale 435.0 0.0 Liabilities to other creditors 20,177.7 2,744.4
Other current liabilities 5,246.7 6,158.2
Total current liabilities 29,381.3 9,773.4
Total assets 438,989.1 183,616.0 Total equity and liabilities 438,989.1 183,616.0
Financial Results FY 2018/2019Condensed IFRS balance sheet
Pro forma portfolio of
€ 493 million
including latest
notarised acquisitions
26
Capital increases in 12/18 from
18.0m to 22.5m shares
at 11.00 € per share and 09/19
+0.9 m shares to 23.5m shares
at 15.75 € per share
Revaluation gains
of 37.6 m€
Convertible bond
nominal 41.6 m€
Corporate bond
nominal 118.0 m€
Financial Results FY 2018/2019NAV, LTV and REIT equity ratio
k€ 30/09/2019 30/09/2018
Total equity 181,463.2 71,811.0
Conversion of convertible bonds 0.0 0.0
NAV 181,463.2 71,811.0
Fair value of derivative instruments - -
Deferred taxes - -
EPRA NAV 181,463.2 71,811.0
# of shares 23,451,945 18,000,056
NAV per share (€) 7.74 3.99
EPRA NAV:
k€ 30/09/2019 30/09/2018
Financial liabilities to banks 71,483.4 11,913.3
Corporate bonds 117,904.0 89,686.2
Convertible bonds 41,184.0 0.0
Liabilities to other creditors 20,177.7 2,744.4
Other financial liabilities 1,527.1 0.0
Total financial liabilities 252,276.2 104,343.9
Less cash and cash equivalents -2,065.7 -117.1
Less trust accounts* -459.0 -1,700.4
Less short term loans 0.0 -144.7
Net debt 249,751.5 102,381.7
Investment properties 392,849.0 168,242.2
Advance payments on investment property 38,886.2 11,196.1
Non-current assets held for sale 435.0 0.0
Total investment properties 432,170.2 179,438.3
Net LTV 57.8% 57.1%
LTV*:
27
* Starting from FY 2018/2019 the Trust Accounts (Property management)
have been included. The reported LTV for 30/09/2018 was 58.0%
k€ 30/09/2019 30/09/2018
Total equity 181,463.2 71,811.0
Investment properties 392,849.0 168,242.2
REIT-Equity ratio 46.2% 42.7%
REIT equity ratio
REITcriteria fulfilled
(45% by law)
k€ 01/10/2018 - 30/09/2019 01/10/2017 - 30/09/2018
Rental income 25,481.2 10,260.0
Income from operating and ancillary costs 4,258.5 2,479.3
Operating expenses -8,789.3 -4,668.6
Net rental income (NRI) 20,950.4 8,070.7
Net proceeds from the sale of investment properties 57.0 585.8
Other income 373.7 147.4
Valuation result 37,552.1 6,913.7
Personnel expenses -808.3 -453.7
Depreciation of assets -115.5 -14.1
Impairment loss of inventories and receivables -208.6 -195.0
Other operating expenses -1,592.9 -1,264.2
EBIT 56,207.9 13,790.5
Valuation result of financial liabilities -832.0 0.0
Interest income 98.6 1,634.5
Interest expenses -6,824.7 -2,971.9
EBT 48,649.8 12,453.1
Income and other taxes 22.1 1,261.2
Net income 48,671.9 13,714.3
Financial Results FY 2018/2019Condensed IFRS income statement
Income tax gains due to
reimbursement of
deferred taxes after
obtaining REIT status
28
Reporting change due to IFRS 15
from FY 2018/2019NRI margin up from
79% to = 82%
Valuation effect from the
convertible bond
Financial Results FY 2018/2019FFO / aFFO reconciliation
k€ 01/10/2018 - 30/09/2019 01/10/2017 - 30/09/2018
Total period income 48,671.9 13,714.3
Net income 0.0 -1,261.3
Adjustment Income taxes 115.5 14.1
Adjustment amortisation and depreciation -37,552.1 -6,913.7
Adjustment revaluation result 832.0 0.0
Adjustment revaluation result financial liabilities -57.0 -585.8
Adjustment sales result 446.1 -132.3
Adjustment for special effects / non-cash expenses + income 431.2 502.8
FFO undiluted 12,887.7 5,338.1
FFO per share undiluted 0.60 0.37
- Capex -3,273.4 -1,017.5
aFFO 9,614.3 4,320.6
aFFO per share (€) 0.40 0.30
Avg. # of shares for the period 21,619,034 14,511,150
FFO/aFFO:
29
Increase of FFO per share = 62%
Financial Results FY 2018/2019FFO-Guidance and Dividend proposal
▪ FFO guidance is mainly driven by prospective acquisitions
▪ DIR intends to invest between 120 m€ and 180 m€ in the FY 2019/2020
▪ Based on current projections DIR expects
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
▪ The Management Board plans to propose a dividend of EUR 0.16 per share
for 2018/2019 at the Annual General Meeting.
30
Appendix
Financial calendar & IR contactWe keep you informed
IR contact:
René Bergmann (CFO)
August-Bebel-Str. 68
D-14482 Potsdam
E-Mail: rb@deutsche-industrie-reit.de
Tel: +49 (0) 331 / 740 076 535
Fax: +49 (0) 331 / 740 076 520
32
Financial calendar
19/12/2019 Annual report for the financial year 2018/2019
13/02/2020 Q1 2019/2020 Interim statement
06/03/2020 Annual general meeting
14/05/2020 H1 2019/2020 financial report
13/08/2020 9M 2019/2020 Interim statement
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/
AppendixGlossary
33
# 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.
Unless otherwise specified all information are for the financial quarter ended 30 September 2019.
34