PATRIZIA Immobilien AG

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PATRIZIA Immobilien AG
PATRIZIA
Immobilien AG
Business Model, Financials and Market
February 2012
PATRIZIA Immobilien AG
PATRIZIA Headquarters | Fuggerstraße 26 | 86150 Augsburg | T +49/8 21/5 09 10-0 00 | F +49/8 21/5 09 10-9 99 | [email protected] | www.patrizia.ag
Agenda




BUSINESS MODELL
BUSINESS DEVELOPMENT AND FINANCIALS 9 MONTHS 2011
GERMAN RESIDENTIAL MARKET
APPENDIX
PATRIZIA Immobilien AG| © 2012
2
PATRIZIA − The real estate investment house
WHO WE ARE AND WHAT WE DO
EMPLOYEES (DECEMBER 31, 2011)

Founded in 1984 by Wolfgang Egger, CEO and
majority shareholder (51.55%)
498 permanent employees
(converted to active full-time positions: 474)

PATRIZIA is a real estate investment house, i.e. a real
estate agent and full service provider
thereof

We offer direct and indirect investments in residential
and commercial real estate in Germany and Europe

First acquisition on an organizational level in
Dec 2010 (PATRIZIA GewerbeInvest KAG,
asset management company)
Corporate/Holding
Commercial
Residential
Special Real Estate
Solutions
Trainees
144
69
113
148
24
We operate nationwide with own local teams, first
foreign branch in Stockholm/Sweden (July 2011)

ASSETS UNDER MANAGEMENT1 (IN EUR BILLION)
FOR THIRD PARTIES
OWN INVESTMENTS
TOTAL2
Residential
0.9
1.0
1.9
Commercial
3.4
0.02
3.4
Total2
4.2
1.0
5.2
!) As
of September 30, 2011. Data from various sources, where book value is not available, investment volumes have been considered, without calculation of potential changes in value.
differences
2 Rounding
PATRIZIA Immobilien AG| © 2012
3
The PATRIZIA real estate value chain
FUND MANAGEMENT
Investment
realization/
Cash inflow
Research
& analysis
Sales
process
management
Identify
investment
targets
Property
management
In-depth
due
diligence
Property
refurbishment/
optimization
Acquisition
ASSET MANAGEMENT
PATRIZIA Immobilien AG| © 2012
INVESTMENT MANAGEMENT
4
Organizational structure
RESIDENTIAL SEGMENT
COMMERCIAL SEGMENT
SPECIAL REAL ESTATE SOLUTIONS
Acquisition
Acquisition
Sales
Asset Management
(Investment Management)
Asset Management
(Investment Management)
Property Management
Investments
Investments
Project Development


Residential Property Resale
Asset Repositioning
Co-Investments




Investments
Co-Investments
Co-Investments
Claims Management
Funds
Special Solutions
Residential Property Resale
Asset Repositioning
Funds


Special Funds (InVG)
Alternative Funds
PATRIZIA Immobilien AG| © 2012


Special Funds (InVG)
Alternative Funds
5
PATRIZIA‘s own portfolio1
AVERAGE MONTHLY RENT PER SQM: EUR 7.69
SALES CHANNELS
RESIDENTIAL PROPERTY RESALE
Sale of single units to tenants, owner-occupiers and private
investors, approx. 2,100 units for sale
ASSET REPOSITIONING
Exit via block sales, approx. 5,500 units for sale
REGION/ CITY
AREA (SQM)
2,189
29.0%
167,058
Cologne /
Dusseldorf
1,361
18.0%
119,583
Leipzig
991
13.1%
59,288
Frankfurt/Main
787
10.4%
50,104
Berlin
692
9.2%
40,168
Hamburg
658
8.7%
42,496
Hannover
393
5.2%
27,520
Regensburg
314
4.2%
21,891
Dresden
152
2.0%
10,284
11
0.1%
649
7,548
100%
539,040
TOTAL
of December 31, 2011
PATRIZIA Immobilien AG| © 2012
SHARE
Munich
Friedrichshafen
1 As
UNITS (NUMBER)
6
Residential special funds
PATRIZIA WOHNINVEST KAG (AUGSBURG)
− FORMERLY PATRIZIA IMMOBILIEN KAG −



Established for a holding period of between 7 and 10
years, fulfill the role of portfolio management
Most of the services are provided in-house by other
subsidiaries, service fees as intercompany revenues
PATRIZIA has no equity stake of its own in the funds, no
conflict of interest due to different portfolio strategies
EUR MILLION
J PATRIZIA German
Residential Fund I
J PATRIZIA German
Residential Fund II
J PATRIZIA EuroCity
Residential Fund I
J VPV Immo PATRIZIA I
(Transfer fund)
J PATRIZIA Urbanitas
J PATRIZIA Domizil I
J PATRIZIA SN REGIO
TOTAL
TARGET
FIGURE
VOLUME GROSS FUND
INVESTED1
VOLUME
400
200
187
450
20
0
250
169
116
172
172
187
300
300
200
2,072
137
114
0
812
40
35
0
As of December 31, 2011
1 Volume already invested plus project developments secured by sale contracts
PATRIZIA Immobilien AG| © 2012
565
J PATRIZIA GERMAN RESIDENTIAL FUND I
Focus on residential real estate in German major cities with
high spending power and positive demographic outlook,
existing housing stock without refurbishment needs, launched
in 2007
J PATRIZIA GERMAN RESIDENTIAL FUND II
Focus on German properties not exceeding 15 years of age,
committed equity fully subscribed, fund is not launched yet
J PATRIZIA EUROCITY RESIDENTIAL FUND I
Focus on Scandinavia, France, Benelux; placement
completed, launched in 2008
J VPV IMMO PATRIZIA I
Transfer fund with VPV Lebensversicherungs-AG (insurance
company), commercial properties were mainly transferred,
launched end of 2009
J PATRIZIA URBANITAS
Individual fund, tailored to one long-term-oriented large-scale
investor, focus on residential properties not exceeding 10 years
of age, launched in January 2010
J PATRIZIA DOMIZIL I
Individual fund, set up for a German institution for professional
retirement provision, focus on newly built residential properties
and project developments, launched in September 2010
J PATRIZIA SN REGIO
Focus on properties in Bavaria or Southern Germany, committed
equity fully subscribed, fund is not launched yet
Î Target 2012: EUR 300 - 400 million investments
7
Commercial special funds (I)
PATRIZIA GEWERBEINVEST KAG (HAMBURG)
− FORMERLY LB IMMO INVEST GMBH −
 Acquired from HSH Real Estate AG with effect from January 2011 (94.9% stake), purchase price EUR 35.7 million
 13 special funds, mainly invested in commercial real estate
 Investors are mainly savings banks, insurance companies, pension funds
 Assets under management of EUR 2.9 billion (Dec 2011)
Î Target 2012: EUR 200 - 300 million investments
MODULAR FUNDS

Investors can create a diversified
portfolio and achieve the desired
risk/reward profile by investing
in different funds.
PATRIZIA Immobilien AG| © 2012
INDIVIDUAL FUNDS
LABEL FUNDS

Funds are launched based on the
specifications of one individual
investor.

Provision of a fund platform in
accordance with the German
Investment Act.

Real estate portfolio can be
newly established or transferred
by the investor.

Asset management, purchase
and sale are the responsibility of
the investor or the investor’s
service provider.
8
Commercial special funds (II) − Overview
NAME
MODULAR FUNDS
LB Handels-Invest Deutschland I
LB Büro-Invest Europa I
LB Wohn-Invest Deutschland I
LB Handels-Invest Europa I
LB Hotel-Invest Deutschland I
LB Pflege-Invest Deutschland I
INDIVIDUAL FUNDS
SV Europa Direkt
LB-VA ImmoInvest
LB HanseMerkur Invest
LB Immo Invest Saar
LABEL FUNDS
GLL BVK Internationaler Immobilien-Spezialfonds
LB Immo HBL
TOTAL
LAUNCHED IN
2002
2004
2005
2005
2007
2007
2003
2004
2005
2005
2004
2010
As of December 31, 2011
1 Purchase prices without considering changes in market value and in exchange rates
2 Sum of assets: market value of properties plus value of investments in real estate companies plus liquidity and receivables
PATRIZIA Immobilien AG| © 2012
9
VOLUME
GROSS
1
INVESTED
FUND VOLUME2
1,504.8
1,194.6
292,0
256,2
294,8
232,1
313,6
261,8
250,7
169,6
147,7
100,5
206,0
174,4
521,0
444,2
98,8
98,7
166,0
164,7
205,4
134,6
50,7
46,2
878,6
893,2
605,8
736,0
272,8
157,2
2,904.4
2,532.1
Commercial special funds (III) − Asset allocation
GEOGRAPHICAL FOOTPRINT
SECTORS
INVESTOR GROUPS
ACCORDING TO COMMITTED EQUITY
3% 2%
2%
1%
6%
10%
6%
6%
35%
7%
13%
7%
52%
42%
34%
11%
15%
24%
25%
Germany
France
Office
Retail
Savings banks
USA
UK
Residential
Care
Pension funds
Netherlands
Finland
Hotel
Others
Others
Belgium
Sweden
As of December 31, 2011
PATRIZIA Immobilien AG| © 2012
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Insurance
companies
Co-Investments
COMMERCIAL
RESIDENTIAL
PATROFFICE
WOHNMODUL 1 SICAV-FIS







Actively managed co-investment with two of the
leading European pension funds:
APG (Netherlands) and ATP (Denmark)
PATRIZIA holds a 6.25% stake
PATRIZIA is responsible for the purchase (and sale) of
the entire portfolio and asset management
Investment primarily in German commercial real
estate
Total volume invested: EUR 350 million
Launched in 2007
Planed duration: 7 years






Actively managed co-investment with a German
pension fund
Start volume of EUR 100 million in equity, PATRIZIA
itself is also involved with a significant amount
The fund covers the entire range of PATRIZIA’s
expertise in value enhancement:
Aside from purchase, asset and property
management, the exit strategy includes plans for
block sales as well as individual sales by means of
residential property resale
Launched in September 2011
Total investment volume: EUR 250-300 million
First investments have already been made:
Munich
EUR 200 mn
Hamburg
EUR 20 mn
Düsseldorf EUR 10 mn
Augsburg
EUR 10 mn
PATRIZIA intends offering a larger number of co-investments in future; own stake will be in the region of 10%
depending on the investment and the partners. PATRIZIA will handle higher volumes with its existing equity.
As of December 31, 2011
PATRIZIA Immobilien AG| © 2012
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Agenda




BUSINESS MODELL
BUSINESS DEVELOPMENT AND FINANCIALS 9 MONTHS 2011
GERMAN RESIDENTIAL MARKET
APPENDIX
PATRIZIA Immobilien AG| © 2012
12
Residential Property Resale



745 units privatized in 2011
Average sales price depends on regional mixture
A further 87 units were sold for third parties
units
Euro/sqm
300
2.492 2.505
2.398
250
2.371
2.276
2.206 2.230
2.355 2.341
2.395
2.399
2.348
2.260
245
216
2.600
2.502
2.324
2.400
230
2.169
222
2.200
196
200
184
183
177
2.000
161
150
132
110
103
100
147
146
144
1.800
1.600
83
1.400
50
1.200
1.000
0
PATRIZIA Immobilien AG| © 2012
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Asset Repositioning – Block sales


836 units sold in Q4; 1,097 in total FY 2011
Increase in sales price per sqm in Q3 due to attractive sales solely in Munich
units
Euro/sqm
2.606
900
800
700
2.001
1.987
1.846
1.803
2.100
1.801 622
600
1.800
1.597 1.587
1.466
1.500
500
400
1.389
357
1.200
297
300
900
256
228
200
100
2.700
2.400
2.221
2.195
1.900
836
129
85
83
52
0
0
33
69
300
0
0
0
PATRIZIA Immobilien AG| © 2012
63
600
14
Key earning figures 9 months
EUR‘000
Q3 2011
Q3 2010
9 MONTHS
2011
9 MONTHS
2010
Purchase price revenues
- Purchase price revenues from inventories
24,363
44,036
81,809
146,901
- Purchase price revenues from investment
property1
Rental revenues
49,750
13,567
54,008
18,617
13,878
15,768
42,712
48,533
Revenues funds business and other services
11,884
2,899
22,711
8,509
Total revenues
54,609
68,143
161,222
221,230
EBIT
14,138
15,384
35,897
44,703
EBIT adjusted2
14,630
15,384
37,373
44,703
EBT
-3,631
6,690
7,059
1,138
EBT adjusted2,3
4,459
3,122
5,511
8,168
Net profit/loss
-4,788
4,640
3,013
-1,064
1
Not included in revenues
Adjusted for the amortization of other non-tangible assets (fund management contracts)
3 Also adjusted for non-cash profit/loss from interest rate hedges
2
PATRIZIA Immobilien AG| © 2012
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Split of revenues

Revenues did not reach last year’s level (EUR 221.2 million, -27.2%) due to higher sales of investment properties,
that are not recognized in revenues in accordance with IFRS
180
160
140
120
Purchase price revenues of
EUR 81.8 mn from the sale of
inventories vs. decreases in the
book value of 66.8 EUR mn
100
80
Rental income exceeds
our affecting financial
payments (EUR -31.9 mn)
by 34.1%; ongoing
maintenance (EUR -2.9
mn) included by 22.7%
Commissions/fees
(letting, sales, asset
management)
4,5
54,0
14,0
18,2
42,7
161,1
11,7
60
40
70,1
20
0
Single unit sales
Block sales
Rental income
(without ancillary
costs)
Funds
Revenues other
Others
Total revenues
services
(mainly ancillary
costs)
In EUR million
PATRIZIA Immobilien AG| © 2012
16
Purchase price
revenues from
the sale of
investment
property
Financial result
Market valuation of interest rate hedges had a positive impact of EUR 3.0 million (9 months 201: EUR -7.0 million)
Q1-Q3
2011
EUR ’000
Q1-Q3
2010
FY 2010
Interest on bank deposits
Income from securities
Income from interest hedges
Changes in the value of derivatives
Other interest
Finance income
Interest on revolving lines of credit and bank loans
Expenses from interest hedges
Changes in the value of derivatives
Other finance costs
Finance cost
FINANCIAL RESULT
232
83
0
3,913
427
4,655
-16,617
-12,973
-889
-3,014
-33,493
-28,837
299
0
0
3,751
249
4,299
-16,028
-18,020
-10,781
-3,035
-47,864
-43,565
573
0
0
10,546
375
11,494
-25,782
-23,024
-12,172
-272
-61,250
-49,756
Without valuation effects of derivatives
Adjusted finance income
Adjusted finance cost
Adjusted financial result
742
-32,604
-31,861
548
-37,083
-36,536
948
-49,078
-48,130
PATRIZIA Immobilien AG| © 2012
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EBT ─ Adjustments
EBT ADJUSTED 9 MONTHS 2011
EBT ADJUSTED 9 MONTHS 2010
45
45
40
40
35
35,9
35
-28.8
30
30
25
25
20
20
15
15
44,7
-43.6
10
10
1.5
5
7,1
-3.0
5,5
5
1,1
7,0
8,2
0
0
EBIT
Amorti- EBT
Financial EBT
Profit/
zation adjusted
result
(IFRS) loss from
(fund
interest
management
rate hedges
EBIT
Financial
result
EBT (IFRS) Profit/loss
EBT
from
adjusted
interest rate
hedges
contracts*)
* Acquisition of LB Immo Invest: Fund management contracts assigned to other intangible assets are subject to amortization over the expected remaining life of the contracts
PATRIZIA Immobilien AG| © 2012
18
EBT adjusted by quarter



Elimination of profit/loss from non-cash market valuation of interest rate hedges (Q1: EUR 12.1 mn,
Q2: EUR -1.4 mn, Q3: EUR -7.6 mn)
Without amortization of fund management contracts (-492 TEUR in each quarter 2011)
Outlook 2011 confirmed: EUR 16-17 mn
Necessary amount in
order to reach our
guidance 2011 of
EUR 16-17 mn
IN EUR MILLION
10,9
9,2
4,4
5,3
4,6
2,9
2,1
4,5
3,1
0,2
0,6
0,5
Q1
2011
Q2
2011
-0,8
-2,5
-4,7
-7,8
Q1
2008
Q2
2008
PATRIZIA Immobilien AG| © 2012
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
19
Q2
2010
Q3
2010
Q4
2010
Q3
2011
Q4
2011e
Segment reporting 9 months 2011
IN EUR MILLION
Q1-Q3
RESIDENTIAL
2011
2010
COMMERCIAL
SPECIAL REAL
ESTATE
CORPORATE /
SOLUTIONS CONSOLIDATION
2011
2011
2010
2010
2011
2010
GROUP
2011
2010
141.2
209.8
17.1
3.0
2.9
8.3
0
0
161.2
221.2
Intercompany revenues
9.8
10.8
1.9
3.2
4.9
3.6
-16.6
-17.6
0
0
Finance income
4.6
4.1
0.6
0.2
0.7
0.5
-1.2
-0.5
4.7
4.3
3.8
3.8
0.1
0
0
0
0
0
3.9
3.8
-37.3
-53.7
-1.8
-1.0
-2.0
-1.8
7.6
8.5
-33.5
-47.9
-0.9
-10.8
0
0
0
0
0
0
-0.9
-10.8
0
0
-1.5
0
0
0
0
0
-1.5
0
Segment result EBIT
44.8
52.0
2.7
1.7
-1.0
-1.4
-10.5
-7.6
36.0
44.7
Segment result EBT
12.1
2.5
1.4
0.9
-2.3
-2.7
-4.1
0.5
7.1
1.1
Segment result EBIT adjusted
44.8
52.0
4.2
1.7
-1.0
-1.4
-10.5
-7.6
37.5
44.7
Segment result EBT adjusted
9.2
9.5
2.7
0.9
-2.3
-2.7
-4.1
0.5
5.5
8.2
Third-party revenues
Thereof market valuation
income derivatives
Finance cost
Thereof market valuation
expenditures derivatives
Amortization (intangible assets)
PATRIZIA Immobilien AG| © 2012
20
Financial situation

No need for larger refinancing till Q2 2014; due to ongoing sales the loan will be paid off for the most part until maturity

85% of loans are hedged by means of interest rate hedging instruments (will expire in June 2014 at the latest)

Fixed interest rate guaranteed: 4.00%

In the first 9 months, cost of financing (incl. margin and processing fee) amounted to 4.97% on the average bank loans

Long-term bank loans include
(1) Financing of investment property until June 30, 2014
(2) Financing of PATRIZIA GewerbeInvest KAG until March 31, 2015
MATURITY PROFILE (APPROX. EUR 690 MN)1
BANK LOANS VS. EQUITY RATIO
Target range: 25-30%
30%
600
25%
1000
80%
511,0
1200
70%
500
60%
400
20%
800
15%
600
50%
40%
300
30%
200
100
84,0
20%
72,0
20,0
400
10%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008200820082008200920092009200920102010201020102011201120112011
Bank loans in TEUR
1 As
2012
2013
2014
Amount falling due in EUR mn
of December 31, 2011
PATRIZIA Immobilien AG| © 2012
0%
0
Equity ratio in %
21
10%
2015
share in %
Net asset value
7
6
5
4
3
2
1
0
NAV/share
share price at quarter's end
Q1 2009
Q2 2009
EUR‘000
Investment Property (fair value)
Participations (PATRoffice)
Participations (WohnModul1)
Inventories (at cost)
Bank balances and cash
- Bank loans
Net Asset Value (NAV)
Number of shares
NAV per share
Share price at the end of the quarter
Q3 2009
Q4 2009
Q1 2010
09/30/10
639,000
3,090
0
575,047
64,124
-931,912
349,349
52,130,000
EUR 6.70
EUR 3.24
Q2 2010
Q3 2010
12/31/10
614,945
3,090
0
510,438
70,537
-841,380
357,630
52,130,000
EUR 6.86
EUR 3.84
Q4 2010
Q1 2011
03/31/11
613,471
3,090
0
498,333
49,656*
-815,231*
349,319
52,130,000
EUR 6.70
EUR 4.92
Q2 2011
Q3 2011
06/30/11
611,269
3,090
0
527,931
33,923*
-830,147*
346,066
52,130,000
EUR 6.64
EUR 5.18
* adjusted figures, i.e. without cash and cash equivalents and loans that came about in the course of the acquisition of PATRIZIA GewerbeInvest KAG (formerly LB Immo Invest)
PATRIZIA Immobilien AG| © 2012
22
09/30/11
566,396
3,090
1,636
460,031
76,476*
764,836*
342,793
52,130,000
EUR 6.58
EUR 3.53
Agenda
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


BUSINESS MODELL
BUSINESS DEVELOPMENT AND FINANCIALS 9 MONTHS 2011
GERMAN RESIDENTIAL MARKET
APPENDIX
PATRIZIA Immobilien AG| © 2012
23
German market supported by strong fundamentals
NO BOOM − NO CRASH


Most European countries have experienced a steep increase in their house prices since 1995
The dominating rental market in Germany and the strict lending criteria for house purchase financing
prevented an overvaluation and support the ongoing market stability
OWNER OCCUPANCY RATE
HOUSE PRICES IN COMPARISON
(INDEX 1998 = 100)
Switzerland
300
Germany
250
Austria
200
France
150
EU-Average
USA
100
UK
35%
43%
58%
56%
63%
66%
69%
50
Italy
73%
0
Greece
74%
1998
FR
2000
DE
2002
IE
2004
2006
ES
UK
2008
2010
SE
US
Spain
Source: destatis, BIS, PATRIZIA Research
PATRIZIA Immobilien AG| © 2012
24
82%
Rent or buy – Living in major German cities is becoming luxury (I)
LIVING IN GERMANY
 Rental price per sqm in EUR (2010)
< 4.50
4.50 – 5.49
5.50 – 6.99
7.00 – 8.99
> 9.00





Strong rise of rents in German centers of commerce
Flats are almost mediated via estate agents
Big cities will become more crowded in future
Munich is the most expensive German place to live
Changed conditions:
Due to the higher number of couples and singles, more
people in Germany need more place to live.
The German Federal Statistical Office estimates a trend
reverse after 2025, when the number of households will
decrease.
1 Source:
http://www.sueddeutsche.de/geld/mieten-steigen-die-teure-lust-an-der-city-1.1259402, 17.01.2012
PATRIZIA Immobilien AG| © 2012
25
Rent or buy – Living in major German cities is becoming luxury (II)
PURCHASING PRICE
RENT
PER SQM IN EUR
PER SQM IN EUR
SELECTED CITIES
SELECTED CITIES
1 Source:
http://www.sueddeutsche.de/geld/mieten-steigen-die-teure-lust-an-der-city-1.1259402, 17.01.2012
PATRIZIA Immobilien AG| © 2012
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Attractiveness of regional residential markets
REGIONAL ANALYSIS IN GERMANY NECESSARY

An analysis of the opportunities and risks of
residential investments needs to be carried out at
local level and to include both supply and demand
factors.

On the supply side above all the provision of
apartments and the structure of the housing stock are
of importance for a potential investor in rented
residential real estate.

On the demand side demographic developments and
purchasing power are the core factors to be
considered in an initial location analysis. These two
factors exert a decisive influence on the stability of
the cash flow of the investment.
well below average
below average
average
above average
well above average
Source: PATRIZIA Research
PATRIZIA Immobilien AG| © 2012
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Economic prospects − Regional developments
IMPORTANCE OF GERMAN METROPOLITAN
AREAS INCREASES
STRONG PRICE DIFFERENTIATION:
Rents and prices will only increase in attractive regions,
i.e. regions with
 positive economic prospects
 higher income level
 population growth
GERMANY TENDS TO REGIONAL RE-URBANIZATION
Index of Metropolitan areas
Urban catchment area and
population density
major urban center
space between
peripheral area
freeway
Source: Regional Planning Report
PATRIZIA Immobilien AG| © 2012
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Future prospects by region
2010
IMPLICATIONS FOR PATRIZIA
72% of our portfolio is located in areas with top, very
good or good future chances for economic growth.
PATRIZIA portfolio locations share of PATRIZIA’s portfolio 1
Top future prospects
39% (Munich, Frankfurt)
Very good future prospects
15% (Hamburg, Dresden, Friedrichshafen, Regensburg)
Regional capital
Top chances
Very high risk
Good future prospects
18% (Cologne/Dusseldorf)
With future prospects
–
Stable risk-reward-relation
28% (Berlin, Hanover, Leipzig)
With future risks
–
Above average future risks
–
High future risks
–
1
As of December 31, 2011
Source: Prognos/Handelsblatt 2010
PATRIZIA Immobilien AG| © 2012
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Household formations
An increasing number of households is seen as the main driver for housing demand, compensating for the general
decrease in the population.
EXPECTED NUMBER OF HOUSEHOLDS
2005 - 2020
CHANGE IN NUMBER OF HOUSEHOLDS VS.
POPULATION (2005 – 2025E)
Hamburg
Baden-Wuerttemberg
Bavaria
Bremen
Schleswig-Holstein
Hesse
Lower Saxony
Rhineland-Palatinate
North Rhine Westphalia
Berlin
Brandenburg
Saarland
Meckl. W. Pomerania
Saxony
Thuringia
Saxony-Anhalt
Germany
41
84
40
83
39
82
38
81
37
80
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
German housholds in mn (left side)
-10
-8
-6
-4
-2
0
2
4
6
8
Source: Empirica Institute
PATRIZIA Immobilien AG| © 2012
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Population in mn (right side)
Demand for housing
The vacancy risk for residential real estate is in Western German regions much lower than in Eastern Germany due to
better future prospects
VACANCY RATES WITH RESPECT TO REGION (%)
HOUSING DEMAND FORECAST 2000-2050
(MULTI-FAMILY HOUSING)
(INDEX 2000 = 100)
Hamburg
Bavaria
Baden-Wuerttemberg
Hesse
Schleswig-Holstein
Berlin
Bremen
Rhineland-Palatinate
North Rine Westphalia
German average
Lower Saxony
Saarland
Mecklenburg W. Pomerania
Thuringia
Brandenburg
Saxony
Saxony-Anhalt
130
120
110
100
90
2000
2010
Bavaria‐Munich
0
2
4
6
8
Source: Empirica Institute, LBS
PATRIZIA Immobilien AG| © 2012
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2020
2030
2040
NRW‐Cologne/DD
2050
Berlin
Construction of apartment houses gain ground slowly
HOUSING STOCK AND COMPLETIONS




COMPLETIONS IN GERMANY
Residential construction shows a negative trend since the beginning of the new millennium. As recently as 2010
the market started to turn, reacting to the increasing demand pressure in urban agglomerations, but completions
still fall short of demand, as the number of households continues to grow
Rising construction activity can be expected in subsequent years given the very positive macroeconomic
performance and positive housing construction indicators
This will be increasingly driven by the construction of apartment buildings since growing urbanization is shifting
housing demand to the cities
Apartments out of the stock with its strengths and weaknesses will dominate housing supply over a longer period
PATRIZIA Immobilien AG| © 2012
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Mietspiegel (Rent index)
THE MOST COMMON BENCHMARK FOR EXISTING RENTS IS A CITY-SPECIFIC MIETSPIEGEL
The “Mietspiegel” is an index of local residential markets rents published by each major municipality in Germany
every two years. The rent index contains “average” rents for apartments for each sub-market.
EXISTING LETTINGS – UPSIDE FROM CHANGES IN MIETSPIEGEL

The rent index provides the legal framework for landlords to increase non-restricted rents in a respective micro
location according to size, age, condition etc.

Increase rents (every two years) when Mietspiegel changes, but: A landlord is not allowed to raise rents for
current tenants above the level indicated in the index, with a cap of a 20% increase over each 3 year time horizon

Quality portfolios with below market rents stand to gain the most income growth, in particular if


Past owners under-managed the portfolio and

If the Mietspiegel index levels are above current levels or increasing significantly
Modernization: Rental increase by allocating 11% p.a. of modernization capex
NEW TENANTS / VACANCY

Rents set according to supply and demand: Empty apartments can be rented out at every price that the tenant
agrees to pay
PATRIZIA Immobilien AG| © 2012
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Agenda




BUSINESS MODELL
BUSINESS DEVELOPMENT AND FINANCIALS 9 MONTHS 2011
GERMAN RESIDENTIAL MARKET
APPENDIX
PATRIZIA Immobilien AG| © 2012
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PATRIZIA Share
PATRIZIA SHARE AT A GLANCE
ISIN
SIN (Security Identification Number)
Code
No. of shares in issue
2011 high* / low*
Closing price as at December 30, 2011*
Share price performance 2011
Average trading volume per day in 2011
Market capitalization as at Dec. 30, 2011*
Indices
SHARE PRICE DEVELOPMENT 2011
DE000PAT1AG3
PAT1AG
P1Z
52,130,000
EUR 5.90 / EUR 3.06
EUR 3.43
-12%
91,200 shares
EUR 178.8 million
SDAX, EPRA, GEX, DIMAX
6,0 €
5,5 €
5,0 €
4,5 €
4,0 €
3,5 €
3,0 €
SHAREHOLDER STRUCTURE
2.16 % 0.6 %
RESEARCH – CURRENT ESTIMATES
BANK
ANALYST
DATE
RATING
PRICE TARGET
Baader Bank
Bankhaus Lampe
Berenberg Bank
Close Brothers Seydler Research
DZ Bank
HSBC
J.P. Morgan
UniCredit
Warburg Research
André Remke
Frank Neumann
Kai Klose
Manuel Martin
Ulrich Geis
Thomas Martin
Harm Meijer
Burkhard Sawazki
Torsten Klingner
12.01.2012
24.01.2012
11.01.2011
11.01.2011
09.11.2011
24.10.2011
11.01.2012
08.09.2011
11.01.2012
Hold
Buy
Buy
Buy
Buy
Overweight
Overweight
Hold
Buy
EUR 4.00
EUR 6.70
EUR 4.50
EUR 5.00
EUR 6.00
EUR 4.90
EUR 5.00
EUR 4.50
EUR 5.00
*) Closing price at Frankfurt Stock Exchange Xetra trading
PATRIZIA Immobilien AG| © 2012
35
15.9%
51.55 %
29.8 %
First Capital Partner (Wolfgang Egger)
Other institutional investors
Private shareholders
Alfred Hoschek (former CIO)
Other PATRIZIA managers
Financial Calendar and Contact Details
March 1, 2012
March 28, 2012
April 3, 2012
7th HSBC Real Estate & Construction Conference, Frankfurt/Main
Financial Statement 2011
Deutsche Bank's 2nd VIP Real Estate Event 2012, Frankfurt/Main
May 10, 2012
Interim report for the first quarter of 2012
May 22, 2012
Metzler Real Estate Day, Frankfurt/Main
June 20, 2012
Annual General Meeting, Augsburg
August 9, 2012
Interim report for the first half of 2012
September 12 - 13, 2012
Bank of America Merrill Lynch Global Real Estate Conference, New York
September 12 - 13, 2012
UBS Best of Germany, New York
September 5, 2012
October 8 - 10, 2012
November 8, 2012
Annual Conference of the Real Estate Share Initiative (IIA), Berlin
Expo Real, Munich
Interim report for the first three quarters of 2012
The conference calls about the financial reports will usually be held at 3 pm CET. Invitations and dial-in numbers will be provided in
advance.
To be always updated, please have a look on our website www.patrizia.ag
MARGIT MILLER
VERENA SCHOPP DE ALVARENGA
HEAD OF INVESTOR RELATIONS
MANAGER INVESTOR RELATIONS/CONTROLLING
T +49/8 21/5 09 10-3 69
F +49/8 21/5 09 10-3 99
M +49/1 51/16 15 02 85
[email protected]
T +49/8 21/5 09 10-3 51
F +49/8 21/5 09 10-3 99
PATRIZIA Immobilien AG| © 2012
[email protected]
36

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