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CORESTATE

Capital Markets Day

Strategy, Products, Markets and Clients

(2)

2

Business Overview and Strategy

Agenda

3

4

5

Investment Management

Financials: Leverage, Cash Flow

Coverage and Liquidity

Corporate Governance, Risk

and Compliance Update

Appendix

-Operating Environment

Corestate

´

s Move to New Pastures

(Lars Schnidrig, CEO)

REIM under COVID-19: Markets, Clients,

Products and Perspectives

(Nils Hübener, CIO & Mark Holz, Head of Research)

Product Highlights I: City Quarters and Micro

Living

(Tobias Gollnest & Lambros Reppas)

Product Highlights II: Logistics, French Market,

HFS

(Edward Bates, CEO STAM Europe;

Martin Bassermann, CFO)

Sneak Preview: Transaction Market in 2021

(Nils Hübener, CIO)

4

7

21

43

54

(3)

Glossary

Disclaimer

This presentation contains forward-looking statements that are subject to various risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change.

Actual results can differ materially from those anticipated in the forward-looking

statements of CORESTATE Capital Holding S.A. (the “Company”) as a result of a

variety of factors, many of which are beyond the control of the Company,

including those set forth from time to time in the Company’s press releases and reports and those set forth from time to time in the Company’s analyst and

investor calls and discussions. The company does not assume any obligation to update the forward-looking statements contained in this presentation.

This presentation does not constitute an offer to sell or a solicitation or offer to buy any securities of the Company, and no part of this presentation shall form the basis of or may be relied upon in connection with any offer or commitment whatsoever. This presentation is being presented solely for information purposes and is subject to change without notice.

Extent and impact of the corona pandemic on the course of business in 2020 cannot yet be conclusively assessed. The company is therefore monitoring further developments and their impact on business activities very closely and will always present reliable information transparently in a timely manner.

€ = Euro; $ = (US)Dollar; % = percentage; a = actual; acc. = according; adj. = adjusted; aggr. = aggregated; approx. = approximately; c(a) = circa; e = expected;

(F)Y = (financial) year(s); H = half year(s);

LTM = last twelve months; M = month(s); Q = quarter(s); tba = to be announced k = thousand(s); m = million(s); bn = billion(s) 3

(4)

CORESTATE

´

s Move to New Pastures

(5)

Successful Corporate Transformation on all Layers

Update on Our Corporate Journey

From Founders Business

to a Fully Institutionalized Investment Manager

• Dynamic market consolidation with comprehensive integration of large and bolt-on acquisitions driven by regulatory and market pressure

• Institutionalization driven by scale, platformand independence

People: smooth transition from founders to corporate manager and set-up of a robust organization

Process: ongoing implementation of groupwide standards and a Target Operation Model − IT: harmonization and improvement of digital backbone (SAP, AM, PM, Treasury, HR …)

Financing: substitution of expensive acquisition loans with long-dated financial instruments • Corporate governance improved with new Supervisory Board and Management Board

enhancement

COVIDas an accelerator on the finishing straight − De-risking and deleveraging as key priority

a) Capital increase provides flexibility and leads to a short-term net debt reduction b) Start of a cash conversion program from balance sheet assets

− Adjustment of corporate structures by a coherent groupwide efficiency initiative

2017/2018

2018/2019

2020

2020

(6)

Consistent Improvement of Operations, Product Range and Client Access

Update on Our Strategic Market Approach

Between COVID and New Pastures

RE Equity from niche to scale

− New Core/Core+ focus and a sharpened product range opens room for bigger clients and higher volumes

− Value add and opportunistic as extra spice driven by market environment • RE Debt will further surf the HFS success story with promising upgrade options

− Gilt-edged in the crisis with tangible organic growth perspectives from restraint competitive environment

− Intensified cross-selling potentials esp. in residential and city quarters • New positioning and re-branding in time and on schedule for H1 2021 • ESG as one key element of future product offering and brand essence

• Short term client initiative on DACH region with considerably strengthened equity raising team from January 2021

(7)

REIM under COVID-19: Markets, Clients, Products and Perspectives

(8)

Investment strategy Property sourcing

Contact brokers Contact developers Contact owners Contact public entities

Property selection REC 1* REC 2* In depth analysis Identification of capital Acquisition process Legal / Tech DD ESG DD Negotiations Signing and Closing Initial desktop analysis

Select potential acquisition targets

CIO Head of Transactions Head of Sales Pursue opportunity? Yes/No

In depth analysis (tech, commercial, ESG) Business plans

Site visits

Sales manages equity source

Investment Finance Fund Mgt. Research Sales Compliance Investment coordination, deal monitoring & decision

• Strong teams with sectoral and regional approach

• Holistic marketing and communication concept

• City Ranking Index as a basis for market selection

• Strategic co-op with independent research institutions

where appropriate

Holistic Investment / Product Line Strategy

Investment Management Team

• Pan European team / strong focus on DACH

• Property sector specializations

• 26 FTEs

• Strong off-market property access

• Sector specializations, incl separate responsibilities for technical asset management

• Long-standing relations with the clients

• Broad experience in various countries, segments and

risk-categories

• Regional teams on the ground

• c 50 FTEs

Asset Management Team

CORESTATE’s integrated investment process

Agile and Smooth CIO Set-Up

*Real Estate Committee 1 and 2

(9)

Uncertainty reached a new historic high

Uncertainty drives investors to ‚safe haven‘ assets

Sources: Global Policy Uncertainty Index, Eurostat, CORESTATE Research

-1,0 0,0 1,0 2,0 3,0 4,0 5,0 -100 0 100 200 300 400 500

Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sep Jan Mai Sept Jan Mai Sep

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 10 -y bun d GEP U Inde x

Global Economic Policy Uncertainty (GEPU) Index

Uncertainty Index 10-Y Bund

Lehman Euro crisis US fiscal crisis Refugee crisis B rexit referen d u m Trum p -ele ction Tr ad e w ar , B re xi t n eg otia tions C O VI D -19 9

(10)

In a ‚lower

-for-

ever‘ rate environment, property remains an attractive asset class

Interest rates

strengthening property demand

Sources: Investing.com as of November 2020, CORESTATE Research

• More than USD 15 tr with negative yields

• In Germany alone, ca. EUR 200 bn of government bonds mature and need to be reinvested every year

• With low or negative fixed income yields (for Germany even 30-Y Bunds yield negative), real estate is seen as an attractive alternative asset class

negative positive 1 2 3 4 5 6 7 8 9 10 Switzerland Germany Japan Netherlands Austria Sweden Denmark France Belgium Spain Portugal UK Italy Poland USA

Government bond yields (by maturity in years) Yield is

(11)

European transaction volume held up well, but activity is down

European Transaction Volume

Source: RCA, CORESTATE Research

Core Assets 1.000 2.000 3.000 4.000 5.000 6.000 0 50 100 150 200 250 300 350 Mi lli ar de n Germany (rhs) United Kingdom (rhs) France (rhs) Netherlands (rhs) Spain (rhs)

Europe – Transaction volume 12 months rolling totals, € bn

(12)

European transaction volume held up well, but activity is down

European Transaction Volume

Source: RCA, CORESTATE Research

Germany

‚Low-risk Europe‘ Core Assets 1.000 2.000 3.000 4.000 5.000 6.000 0 50 100 150 200 250 300 350 Mi lli ar de n Germany (rhs) United Kingdom (rhs) France (rhs) Netherlands (rhs) Spain (rhs)

Europe – Transaction volume 12 months rolling totals, € bn

(13)

European transaction volume held up well, but activity is down

European Transaction Volume

Source: RCA, CORESTATE Research

Germany

‚Low-risk Europe‘

Residential

Logistics / Offices

(with strong covenants) Core Assets 1.000 2.000 3.000 4.000 5.000 6.000 0 50 100 150 200 250 300 350 Mi lli ar de n Germany (rhs) United Kingdom (rhs) France (rhs) Netherlands (rhs) Spain (rhs)

Europe – Transaction volume 12 months rolling totals, € bn

(14)

Flexecurity and asset selection are key

The Cycle: Risk is with the income side

Source: CORESTATE Research

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 R isk Income Capital values

Qualitative risk assessment by market component Short-term outlook (12 –24 months)

Security of income is crucial

• Asset Management focus • Core / Core+ focus

• Flexibility

Core yields to remain defensive • Low rates

• High liquidity

(15)

In the mid-term, market opportunities to strengthen

Source: CORESTATE Research Opportunity

Risk Equilibrium

Property market

characteristics Propertysector Property marketcharacteristics Propertysector

Transaction activity Value Add Yields Core Yields Income Hotel Residential Office Retail Logistics Transaction activity Value Add Yields Core Yields Income Hotel Residential Retail Mixed Use Mixed Use Micro Living Office Logistics Micro Living

12 to 24 months outlook…

…and beyond

(16)

De-risking, pro-longing leases and modernizing the portfolio

Implications for our strategy

Asset Management

Strengthening income security

• Intensive discussions with our tenants to find suitable solutions to keep occupancy high and rental loss minimal

• Negotiate lease prolongations

De-risk portfolios

• Identify long-term risks

• Strategically optimize portfolios

Modernize portfolios

• Physically reposition assets

• Strengthen brand image for our property operation entities

(17)

Asset repositioning to create value

Asset Management Initiative: Strengthening the portfolio

* Based on sqm

Initial situation

• 70 % of lettable area retail use, 8 % office use • 4.070 m² vacant area of commercial use

Repositioning of vacant area

• Long-term (20 year) rental commitment from city Hanau

• Reduction of vacant space by 34 %

• Healthier tenant and sector mix of 60% retail use, 18 % office use* as well as positive effect on visitor frequency

(18)

In the short-term, stability and security of income is key

Implications for our strategy

Investment Management

• ‚Core’ investment focus

• Residential / Mixed use / City Quarters

• Offices / logistics with long and secure leases

• Acknowledging cyclical and structural market developments equally

Mid-term, there will be pockets of growth and value-add opportunities

• Focus on winning cities: R&D led, modern business structure, openness and security, culture and leisure offer

• City Quarters (Stadtquartiere) offer cities on a micro scale

• Selective acquisition of value-add logistics in strategically important locations

• Strengthen and broaden micro living to capitalise on social and demographics change

• Acknowledging the COVID evolvement, riskier strategies like hotels can become relevant later in the cycle

(19)

Institutional and semi-institutional money is targeting real estate

Increasing allocation into Real Estate

*German insurance companies

Source: EY, Trendbarometer der Immobilienanlagen der Assekuranz 2020; UBS, Global Family Offices Report 2020; PMA Investor Intentions Survey Q3 2020

-80% -60% -40% -20% 0% 20% 40% 60% 20 01 20 03 20 05 20 07 20 09 20 11 20 13 20 15 20 17 20 19

Europe –Short-term investment intentions, Q3 2020 Office Retail Logistics Residential Institutional Insurance companies* Semi-Institutional

Global Family offices

5% 6% 7% 8% 9% 10% 11% 12%

Real estate quota

Outlook:

Increase: 39% Stable: 54% Decrease: 7%

• Investor demand is high and likely to remain strong • Investment focus is narrowing and risk-averse

0% 10% 20% 30% 40% 50% Infrastructure

Hedge Funds Real estate Private equity - funds Privat equity - direct

investment

Intentions to increase allocation

(20)

Challenging

market environment

Product solutions in a challenging market environment

• Investment pressure is still very high • Return requirements remain firm • More focused /selective strategies • Lower risk tolerance

• High degree of uncertainty • Cautious financing (banks) side • Limited product availability

Residential and related assets

1

Mixed-use urban City Quarters

Strategically located logistics

2

3

Real estate debt

4

Client needs in this environment

Example

solutions

(21)

Product Highlights I: City Quarters and Micro Living

(22)

City Quarters in the 1970/80s

Cologne, Chorweiler

(23)

City Quarters in the 1970/80s

Cologne, Chorweiler Berlin, Marzahn

(24)

City Quarters in the 1970/80s

Cologne, Chorweiler Berlin, Marzahn

Munich, Neuperlach

(25)

City Quarters in the 1970/80s

Cologne, Chorweiler Berlin, Marzahn Munich, Neuperlach Frankfurt, Niederrad 25
(26)

New concept of City Quarters

Example Bremen

Source: Haven Höövt Projektentwicklungsgesellschaft mbH

Police

Residential

Daycare

Residential Retail Residential

Serviced Apartments Restaurants

Key Features:

• 32,000m² on 89 acres of land • C. 950 users and employees • Urban mixed-use incl.

residential, services, facilities, gastronomy and police station

Residential Restaurants Residential Commercial Commercial Bakery

City Quarter Am Alten Speicher

Medical Residential (17,000 sqm) Serviced Apartments (3,600 sqm) Boardinghouse (2,500 sqm) Police Station (3,000 sqm) Daycare (2,700 sqm) Parking (1,600 sqm) Commercial (1,500 sqm) Area Split 26

(27)

New concept of City Quarters

Example Bremen

Source: Haven Höövt Projektentwicklungsgesellschaft mbH

Police

Residential

Daycare

Residential Retail Residential

Serviced Apartments Restaurants

Residential Restaurants Residential Commercial Commercial Bakery

City Quarter Am Alten Speicher

Medical City Quarter Train Station River Weser School Residential Area Residential Area 27

Key Features

• 32,000m² on 89 acres of land • C. 950 users and employees • Urban mixed-use incl.

residential, services, facilities, gastronomy and police station

Residential (17,000 sqm) Serviced Apartments (3,600 sqm) Boardinghouse (2,500 sqm) Police Station (3,000 sqm) Daycare (2,700 sqm) Parking (1,600 sqm) Commercial (1,500 sqm) Area Split

(28)

The following megatrends will most likely have a significant impact on the real estate sector

and can be taken into account in the development of City Quarters

:

Important Megatrends

The wide range of structural factors impacting the real estate market today are not independent from each other but rather constitute a new set of requirements for real estate investments.

Urbanisation

Demographic transition Digitalisation

Sustainability

(29)

New buildings in line with latest standards (e.g. LEED, accessibility etc.) leading to energy efficiency and environmentally friendly solutions

Risk diversification of cashflow through mixed use, large share of residential use

Long-term leases

with anchor tenants

Increase in asset class

importance due to strong investor interest

Aspects such as modernity

and sustainabilityprovide attractive buildings and

high quality of living

New City Quarters fulfill several purposes for investors and users

Investment Rationale

From an investor's point of view, City Quarters meet the changing requirements for stable and sustainable real estate, which cannot be met in an isolated view of the respective asset classes of residential, office and retail

(30)

• The former dispatch centre of the Quelle Warenhaus AG has been constrcucted in five phases between 1953 and 1966

• Parts of the building are listed, e.g. façade, staircases and the cantine

• The entire property will be developed to a mixed use city quarter

City Quarter Project The Q, Nuremberg (Separate Account)

(31)

City Quarter Project The Q, Nuremberg (Separate Account)

31

• The former dispatch centre of the Quelle Warenhaus AG has been constrcucted in five phases between 1953 and 1966

• Parts of the building are listed, e.g. façade, staircases and the cantine

• The entire property will be developed to a mixed use city quarter

(32)

Transaction property

• The city quarter project “The Q” includes 5

building sections:

− 1 and 4 is commercial use; area c. 50,000 sqm

− 2, 3 and 5 will be home for c. 2,000 residential users, gastronomy and kindergarten; area c. 112,000

• The commercial area is predominantly office use (82%), which is already let to the City of Nuremberg for a term of 25 years

• In addition the property offers reatil space in the ground floor (12%) and a parking garage in the basement (6%)

• Construction start ist in Q1 2021 with an expected compeltion and hand over to the tenants three years later

• The deal has been structured as a separate account for Germanies biggest pension fund

• Total acquisition volume is more than €300m

and the purchase price will be paid pari passu to construction progress

City Quarter Project The Q, Nuremberg (Separate Account)

(33)

City Quarter Project The Q, Nuremberg (Separate Account)

(34)

Investment Thesis

34 Profile

Core (key-ready acquisition) of a new building or revitalization

Asset Allocation

Diversified portfolio in medium-sized and large German cities.

The selection of cities is based on the CORESTATE City Index

Volume c. EUR 500 million Holding period 10 years Target cash-on-cash Ø 4.5% p.a.

(35)

Solid Ground

Micro Living Landscape

Country Location # Beds

Germany Various Location 4,350

Incl. construction Austria Vienna 1,391 Switzerland Zurich (2021) 447 Spain Seville 203 Valencia (2021) 162 Madrid (2022) 207

Poland Various Locations

Incl. construction 1,022

Denmark Kopenhagen (2022) 248

U.K. Managed by CRM c. 23,000

Corestate assets

Development CRM

Italy New Office in Milan since Q3/2020

(36)

Country Scoring as Solid Base for Expansion Strategy

Sources: Eurostudent, Eurostat; OECD, S&P, Global Property Guide

Rank Country

Demo-graphics Political Stability Capital Markets Economic Activity Micro Living Ø Overall attractiveness 1 Germany 2,1 1,3 3,4 2,1 1,7 1,9 2 Netherlands 1,9 1,3 2,8 2,6 2,1 2,1 3 Denmark 2,0 1,9 2,1 2,5 2,3 2,2 4 Switzerland 1,5 1,2 2,1 1,7 3,1 2,3 5 Norway 1,6 1,2 2,2 2,7 2,7 2,3 6 Sweden 1,5 1,3 3,0 2,6 2,7 2,4 7 United Kingdom 2,4 2,7 2,8 4,1 1,7 2,5 8 Ireland 1,6 2,2 2,4 2,0 3,1 2,5 9 Austria 1,5 1,3 2,7 3,1 2,8 2,5 10 France 2,7 3,2 3,6 3,5 2,1 2,7 11 Poland 2,4 2,5 2,8 3,3 2,6 2,7 12 Iceland 1,2 2,9 2,4 2,6 3,6 2,8 13 Belgium 2,1 2,5 3,3 2,8 3,1 2,8 14 Spain 3,0 3,2 3,1 3,0 2,6 2,9 15 Italy 3,6 4,0 3,4 3,3 2,2 2,9 16 Turkey 1,4 4,6 3,7 3,7 2,6 2,9 17 Finland 3,1 1,3 2,4 3,2 3,3 3,0 18 Czech Republic 2,2 1,8 3,3 3,9 3,3 3,1 19 Hungary 2,8 3,8 3,3 3,7 3,2 3,3 20 Estonia 2,9 3,5 2,7 4,9 3,3 3,5 21 Bulgaria 3,8 2,9 3,0 3,5 3,8 3,5 22 Portugal 4,3 3,0 3,6 3,3 3,6 3,6 23 Greece 3,8 4,7 3,6 4,3 3,0 3,6 24 Croatia 3,4 4,7 3,7 3,3 3,9 3,7 25 Serbia 3,6 5,6 3,3 4,3 3,5 3,8 26 Slovak Republic 3,7 2,6 2,7 4,3 4,3 3,9 27 Latvia 4,4 4,5 2,8 4,2 3,9 3,9 Rating 1,0 - 1,5 1,6 - 2,4 2,5 - 3,4 3,5 - 4,4 4,5 - 5,4 5,5 - 6,0 Top 15 countries will be analyzed

Major cities of Hungary and Portugal will be analyzed

(37)

Serviced-Apartment landscape at Occupancy Level (illustrative)

COVID-19 Heavily Impacts Serviced-Apartments

Sources: Upartments . Joyn Serviced Living

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Jan 20 Feb 20 Mrz 20 Apr 20 Mai 20 Jun 20 Jul 20 Aug 20 Sep 20 Okt 20 Nov 20 Dez 20

Occupancy-rates

(operating assets still in ramp up phase)

COVID -19 Lo ckd o w n Solid financial Pedestal during Covid-19

• While the classic hospitality industry struggles with closed operations, serviced apartments offer a solid financial pedestal with an occ. of 30-35%.

Projection Su m m er Pick -up 37

(38)

60 65 70 75 80 85 90 95 100

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Projection

PBSA landscape at Occupancy Level (illustrative)

COVID-19 with Transitory Impact on Student Homes

Sources: Upartments . Joyn Serviced Living

COVID-19 Lockdown measures

• While UK was hit harder by COVID-19, however could partly recover back to an actual average occ. of 80% • Germany and Austria remained very stable with a market average of 90%

• CORESTATE PBSA performance is even higher than the market average with an average occ. of 93%

YOUNIQ (Germany & Austria) German Market Average CRM (UK)

UK Market Average

38

(39)

European PBSA Market Shows Promising Catch-up Opportunities

Sources: Nationale statistische Ämter und Ministerien für Hochschulbildung; The Class of 2020 – „Trend Report 2020“; Savills; Eurostudent.eu; The Sodexo International University Lifestyle Survey; CORESTATE Research, *Net initial yield; **based on the precentage of students stay abroad and international students; ***Quelle:

www.officeforstudents.org.uk 39

Country Number of

Students

Number of

International Students Prime Yield

Number of

Units (approx.) Supply Rate

Germany 2.87m 374k 3.70% - 4,20% 316k 12% UK 1.97m 458k 3.75%* 627k 32% France 2.62m 341k 3.75% -4,80%* 340k 13% Poland 0.80m 78k 5.50% 81k 10% Sweden 0.41m 37k 4.25% 96k 23% Denmark 0.27m 34k 4.00%* 68k 25% Spain 1.56m 121k 5.00%* 94k 6% Italy 1.89m 97k 5.00% 57k 3%

(40)

Brand Evolution: YOUNIQ and Linked Living

become YOUNIQ (MY WAY OF LIVING)

Brand Refresh - Next generation of YOUNIQ

We continue to develop our self's as the market leader in the Micro Living Sector with a better visibility through our Brand Refresh YOUNIQ –MY WAY OF LIVING

(41)

Project 1 Alfred & Charlotte florenz2 Elb- 3 Boots-hafen 4 Mika 5 Nikolai 6 Johannis 7 Ludwig 8 Herkules 9 Bambi 10 Nemo 11 Wolfgang 12 Steep

Fund CRG II CRG II CRG II CRG III CRG II CRG II CRG III CRG II CRG III CRG II CRG II CRG II Signing Q3 2017 Q4 2017 Q4 2018 Q1 2019 Q1 2019 Q2 2019 Q4 2019 Q4 2019 Q1 2020 Q1 2020 Q1 2020 Q1 2020 City Berlin Dresden Kiel Dresden Leipzig Leipzig Leipzig Kassel Kitzingen Hamburg Hanau Trier NLA (in m²) 7,300 8,850 10,465 14,804 10,440 4,396 12,398 9,459 4,559 12,819 12,160 7,333 Planned completion 2020 2020 2021 2020 2021 2022 2022 2020 2022 2020 2020/21 2023

Live Live Live Live Live Partly Live

1 2 3 4 5 7 6 8 2 9 10

• Forward funding capabilities and well-established off-market contacts supports attractive acquisition multiples and corresponding returns

• Average purchase-price multiple of c 24.8x

Illustrative Example of Current Residential Investment Approach in Funds CRG II & CRG II

Strong Sourcing Power for Profitable Residential Assets

* NRI figures are forecast figures that are no guarantee of future performance. The quarterly and annual figures represent the purchase data. All images are illustrations

(42)

Why Forward Funding Opportunities ?

Key Anchor of Residential Expansion Strategy

Influence of Energy-/ and Building Standards (ESG) High returns through comparably higher yields and sustainably higher rent level Attractive repayment and financing subsidies for building energy standards, through KFW. Avoiding of the German rent control policy through new build

properties

Very good market penetration through excellent off-market developer contacts 42

(43)

Edward Bates, CEO STAM Europe | Martin Bassermann, CFO & HFS Verwaltungsrat

(44)

• Edward Bates is President and CEO

22 dedicated professionals for real estate • Total AUM c €2bn

• Offices, Logistics, Retail and Residential focused

• Core long term income to opportunistic

strategies

Market Overview

• Investment market: a 30% slow-down expected in 2020 due to the Covid19 –with a strong resilience of the Logistics and Residential sectors

• Strong appetite of the investors for both Logistics and Residential

− Logistics investment volume are higher than 10-year average, second highest 10-year in term of investment volumes

− Housing prices in Paris has increase by 8% versus 2019

• Prime Yields compression for logistics at 3.80% for Prime and 2.80% for Prime Offices

• Take-up for commercial real estate as of Q3 2020 shows an important decrease versus 2019

• Supply – especially within the office sector –rises

STAM is an investment and asset manager

focused on real estate investments in France

STAM & French Market overview

(45)

Core / Core + strategy: • Income • Capital improvement AUM: • Current: €120m • Dry powder: €75m

Residential Investments

STAM Post-Covid focus

(46)

3 strategies to focus on within the logistics sector:

• Core / Core +: Income and dividend strategy • Value-Add: Urban Logistics and Light

Industrial strategy: €350m total investment

• Opportunistic: Big Box developments with

leasing risk: €300m total investment

Logistics Investments

STAM Post-Covid focus

(47)

€600m

AUM

Current Locations of AUM

STAM Logistics AUM

47

100%

France

900,000

Total Areas (sqm)

25

Total assets

9

dedicated professionals

Acquisition Asset Management Property Management Technical Management
(48)

• Location: St Ouen l’Aumône : 25km north-west from Paris • Areas: 14,975 sqm • Delivery scheduled in Q4 2021 • Yield-on-Costs: 7.4% • Price psm: €1,13048 • Targeted IRR1: 15% • Targeted EM1: 1.8x Saint-Ouen-l’Aumône

Saint Ouen

l’Aumône

| KPIs

STAM

Focus on Parisian Last Mile Transaction

1 Post taxes, pre-promote

(49)

Snapshot of the Current Market Environment

HFS

Rock-Solid in the Crisis

49

Product sweet spot: metropolises in Germany with focus on residential and city quarters (mixed use) in A & B locations have been rising for more than 10 years and continue also during the crisis • HFS project portfolio largely immune to the impact of COVID-19

• Banks have tightened underwriting criteria and limited lending on higher risk profiles in RE

→ short-term credit crunch

• Competitor landscape in RE private debt partly affected by the pandemic (scale, diversification, portfolio bias) →crisis drives consolidation

• Cautious investor base tend to re-commit money to bigger players

• High demand on financing: class-A developer with the right product focus and track record want to secure future projects & plots

(50)

Pension Schemes 50% Insurers 23% Pension Funds 12% Investment Funds 8% Others 3) 7%

Mezzanine Funds Showing Strong Organic Growth

(in bn€)

Investor Base and Performance of HFS Stratos Funds

Average commitment of fund volume to projects

Semi Annual Cash Dividend Distribution of H1-2020; FY2020 Fund accounts not yet finalized, 3) Others incl. Banks, Foundations etc… 50

Stable and Loyal Investor Landscape

c 70 institutional clients 0.76 0.96 1.11 1.165 1.25 c 1.3 700 800 900 1.000 1.100 1.200 1.300 1.400 KPIs 2015 2016 2017 2018 2019 H1-2020 Committed1) 99.2% 98.6% 99.3% 99.2% 99.1% 99.3% Investor Returns 13.2% 12.8% 12.0% 11.2% 10.4% 5.6% 2)

Stable double-digit returns since inception 2009 and very efficient deployment of funds

3Y-CAGR since acquisition (H1-2017): +7.4%

• Increasing demand for new commitments from existing and new investors backed by an outstanding performance in the crisis

(51)

Residential 68% Retail 16% Office 16% 270 204 127 118 50 61 59 42 91 18 11

Uses of Mezzanine Funds at the End of H1-2020

Update on Lending and Exposure

51

Regional Break Down of Current Outstanding Financings

c 70% of lending volume goes to Top7 cities in Germany • Total committed fund volume: c € 1.3bn

• # of financed projects: 57

• Ø size of mezzanine financing: c € 23m 57

projects

(52)

Illustrative Example for a Recently Completed Project

It’s All About Location, Location… and the Right Developer

52

Property 80.473 m²

Rentable Area 23.505 m²

Issue 14.12.2018

Repayment 31.07.2020

Mezz Capital in mio 40,000 EUR

Term 19 months

Interest on

Mezz tranche 20 %

Description

The project is located in a parkland of almost 80.000 m². The area was developed and built as a hospital between 1909 and 1912; this historical and high-quality building material has largely been preserved. The project involves the purchase of 5 connected plots of land via three share deals and an asset deal. It is planned to renovate the six existing old Art Nouveau buildings that are in need of improvement and which enjoy historical monument protection status; 186 residential units are to be built here. Two more new buildings with a total of 52 residential units are to be built. After the project phase and once the building was ready for construction (May 2020), the bond was reissued.

(53)

• All market drivers intact: investor base, product focus, demand, competition • Tangible pipeline of requested financings on record level (c € 0.5 billion)

• Further organic growthin mezzanine fund volumes in 2021 (5-10%) • Cross-Selling opportunities for Corestate´s RE equity business

City quarters and conversion of former industrial or commercial plots in metropolitan areas

Affordable housing in A-cities

Residentialprojects in A & B cities (“ABBA”)

• Launch of whole-loan fund in 2021 (postponed due to COVID-19)

Bright Outlook for HFS Business

Private Debt

More Than Stable in the Upcoming Years

(54)

Nils Hübener, CIO

(55)

Anchored on a superior core/core+ pipeline and amplified by advanced niche products and

opportunistic deals esp. from repricing in sub-sectors

Expected transaction volumes in 2021: € 2-3bn

Q1-2021 Q2-2021 H2-2021

Still impact from COVID-19; focus on Core/Core+ transactions Continuously less impact from the pandemic, more deals to come Deal volumes tend to normalize – first “spice deals” in the market

3.5%–4% Office 3.5%-4.5% Residential Mezzanine 4%-6% Logistics 5%–5.5% Micro Living 10%–13% 3.5%–5% City Quarters

Essential Product Offer 2021 Driven by Agile Investment Approach and Proven Track Record

Market Uncertainties to Prevail in the first Half and to Vanish Gradually in H2

Transaction Market in 2021: Continuous Recovery

55

Returns1

(56)

Dr. Kai G. Klinger Chief Markets Officer

Phone: +49 69 3535630-106 ir@corestate-capital.com

Investor Contact

Please note that these dates may be subject to change

24 February 24 March 28 April 19 May 11 August 10 November

Financial Calendar 2021

Publication preliminary results for FY 2020 Annual financial report 2020

Annual General Meeting Publication results for Q1 Publication results for H1

Publication results for first nine months

References

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