We have just published a joint research note with the German Property Federation looking at the state of the listed German Real Estate: – Gross Property Assets Increase by 17% yoy to EUR78bn – Sector Uses Wide Variety of Markets Funding Instruments – German Sector Equals the US Ahead of Financial Crisis

1. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Initiative Immobilien-Aktie
German Listed Real Estate:
Finally Grown Up
08 October 2015

2. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 2
Long Term Development of Top 18 Free Float
16.12.2015
The listed Real Estate
sector has increased
substantially since 2008.
Investible Free Float up
from EUR1.5b in 2008 to
EUR35bn in 2015.

3. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 3
German Real Estate Capital Markets Funding by Instrument
16.12.2015
Capital Markets play an
increasingly important
role as capital providers.
But: Capital markets
funding is still below 2006
peak.

4. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 4
German Real Estate Capital Markets Funding by Instrument
16.12.2015
Wide range of capital
markets instruments
used.
Capital Markets Funding
currently dominated by
equity.
Reduced significance of
CMBS.

5. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 5
Banks Active in German Real Estate ECM
16.12.2015
38 banks have been active in German real estate ECM since 2009.
German and US banks dominate.
Banks Active in German Real Estate ECM (# of Banks by country) Banks Active in German Real Estate ECM (Capital Placed by Country of Bank)

6. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 6
Real Estate in % of German Equity Capital Markets
16.12.2015
Real Estate with strongly
rising importance in
German Equity Capital
Markets business:
Real Estate reached 30%
share of German ECM
business in H1 2015.

7. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 7
Leverage of German Listed RE Companies
16.12.2015
The listed Real Estate sector has deleveraged since 2009.
But: LTV is still strongly above EU average of 38%.

8. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 816.12.2015
Real Estate sector has
increased in importance.
Currently 1 DAX30
member, 4 DMAX
members and 6 SDAX
members.

9. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 916.12.2015
Real Estate represents 3% of combined DAX30/MAX/SDAX free float.
Real Estate represents 2% of DAX30 free float.

10. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 1016.12.2015
Real Estate represents 8% of MDAX free float.
Real Estate represents 11% of SDAX.

11. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 1116.12.2015
The average market cap
of our group of real estate
companies of EUR 2.2bn
is ahead of the average
for US REITs …
… exceeds the average
of the SDAX and has
narrowed gap to the
MDAX average.

12. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 1216.12.2015
Listed Real Estate in
Germany has reached the
status of the US REIT
sector before the financial
crisis.

13. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 1316.12.2015
The listed Real Estate
sector is largely
independent from strategic
or core holders/investors.
Whereas DAX30, MDAX
and SDAX are dominated
by core holders …
… when considering low
voting right presence at
Annnual General Meetings.

14. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 14
Development of Gross Property Value
16.12.2015
Listed Real Estate is an
important part of the German real
estate market.
Gross Property Assets increased
to EUR 78bn (up 17 % or EUR
11.5bn yoy).

15. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Germany as Growth Engine for Europe 1516.12.2015
Listed Real Estate is an
increasingly important
component of the German
residential market:
1m housing units owned
by listed companies
compared to 2.7m that
are in the public hands.

16. Initiative Immobilien-Aktie
Germany as Growth Engine for Europe
Initiative Immobilien-Aktie
Thank You For Your Attention
Peter Barkow Sabine Georgi
Managing Director Head of Real Estate and Capital Markets
Barkow Consulting GmbH ZIA Zentraler Immobilien Ausschuss e.V.
Rethelstraße 38 Unter den Linden 42
40237 Düsseldorf 10117 Berlin
www.BarkowConsulting.com www.ZIA-Deutschland.de