Company presentation - Grand City Properties SAMigration balance2: 0.9% Population density3: 2,424 per km2. 4 Best in Class Berlin Portfolio ... Over 90% of the portfolio is situated

COMPANY PRESENTATION

DEC 2019

2

GCP is a specialist in residential real estate, focused on value-add opportunities in

densely populated areas in Germany

COMPANY OVERVIEW

Net Rental Income1)

€354m

Adjusted EBITDA2)

€293m

FFO I2)

€213m

FFO I yield2)

6%3)

Dividend (65% of FFO I ps) yield over 2019 guidance

3.9%3)

Investment Properties

€7.6bn

Number of units

76k

Net Rentable Area

4.8m sqm

EPRA Vacancy

7.0%

In-place Rent

6.6€/sqm

Number of employees

>900

Key financials

Key facts and figures as of September 2019

EPRA NAV

€4.0 bn

€23.7 per share

EPRA NAVincluding perpetual notes

€5.0 bn

€29.8 per share

Net Profit9M 2019

€365m

€1.80 per share

Capital Structure

LTV 33%

Equity Ratio 50%

95th Percentile

1) Sep 2019 annualized2) 9M 2019 annualized3) based on a share price of €21

€3.5bn3)

Market Cap

Rating

BBB+ (S&P)

Baa1 (Moody’s)

➢ Gold for annual report 2018 (3rd consecutive Gold), awarded in Sept 2019

➢ Gold for sustainability report 2018 (3rd consecutive Gold), awarded in Sept 2019

MDAX

GPR250MSCI

-Global Developed-Europe Developed-Eurozone-Germany

FTSE EPRA/

NAREIT

STOXX 600

DIMAX

MSCI WORLD IMI Core Real Estate

Indices

3

PORTFOLIO OVERVIEWREGIONAL DISTRIBUTION

Regional distribution Sep 2019 (by value)

1.GDP Growth:

2018, data from the respective federal

state is used in case city data is not

available

2. Migration balance:

Average annual migration balance

2013-2017, domestic & foreign migration

3. Population density:

Residents per Sqk (2017)

Mannheim►GDP growth (BW) 1 : 1.5%

►Migration balance2: 0.9%

►Population density3: 2,125 per km2

Nuremberg/Fuerth►GDP growth (BA)1: 1.4%


►Population density(N)3: 2,763 per km2

Dresden/Leipzig/Halle

►GDP growth (SN) 1 : 1.2%

►Migration balance2: 0.4%-1.4%

►Population density3: 1,678-1,954 per km2

Berlin

►GDP growth1: 3.1%



Frankfurt am Main►GDP growth (HE) 1 : 2.2%



Bremen► GDP growth1 : 2.1%► Migration balance2: 1.0%► Population density3: 1,787 per km2

NRW►GDP share 2018 : 21% of total national

►GDP growth1: 0.9%


►Population density3: 525 per km2

Hamburg► GDP growth1 : 1.7%► Migration balance2: 0.9%► Population density3: 2,424 per km2

4

Best in Class Berlin Portfolio

* all breakdowns are by values

24%of GCP’s Portfolio

PORTFOLIO OVERVIEW (SEP 2019)*

Largest European metropolitan areaWell distributed within NRW 24%

of GCP’s Portfolio

Berlin

Cologne

Berlin

Duisburg

2/3 of the Berlin portfolio is located in top tier neighborhoods:Charlottenburg, Wilmersdorf, Mitte, Kreuzberg, Friedrichshain, Lichtenberg, Schöneberg, Neukölln, Steglitzand Potsdam.

1/3 is well located in affordable locations located primarily in Reinickendorf, Treptow, Köpenick and Marzahn-Hellersdorf.

4th

largest city in Germany

5

Over 90% of the portfolio is situated within a

short walking distance to an underground/overground station

Map represents over 90% of the London portfolio

The total London portfolio, including pre-marketed units consists of ca. 2,400 units

High Quality, well connected London portfolio


London - Camden London - Hackney London - Hounslow



6



Quality East Portfolio Dresden/Leipzig/Halle Quality North Portfolio Hamburg / Bremen



LeipzigDresden Hamburg BremenHalle

further diversification in Germany’s fast growing Eastern and largest Northern cities

7

Value (in €M)

Area (in k sqm)

EPRA Vacancy

Annualized net rent (in €M)

In-place rent per sqm

(in €)

Number of units Value per sqm

(in €)

Rental yield

NRW 1,832 1,644 8.1% 106 5.7 24,344 1,114 5.8%

Berlin 1,604 553 5.3% 52 8.2 7,469 2,901 3.2%

Dresden/Leipzig/Halle 986 925 9.0% 52 5.2 15,921 1,066 5.3%

Mannheim/KL/Frankfurt/Mainz 377 225 5.0% 19 7.4 3,788 1,673 5.1%

Nuremberg/Fürth/Munich 227 102 3.6% 10 8.2 1,471 2,218 4.4%

Hamburg/Bremen 370 297 4.3% 20 6.0 4,265 1,248 5.5%

London 773 93 5.7% 33 32.2 1,895 8,306 4.3%

Others 964 999 7.8% 62 5.8 16,938 964 6.4%

Development rights and new buildings* 466

Total 7,599 4,838 7.0% 354 6.6 76,091 1,474 5.0%

*of which pre-marketed buildings in London amount to €164m

Quality real estate portfolio

PORTFOLIO OVERVIEW – SEPTEMBER 2019

WELL DISTRIBUTED PORTFOLIO

Dortmund Berlin Halle Hamburg Bremen London

8

PORTFOLIO – POTENTIAL TO COME

Large upside potential for rent increase to market levels with very limited downside risk

Current annualized Rental Income vs. Market Potential including vacancy reduction

Only 3% of units subject to rent restrictions from subsidization, beginning from 2020

Total net rental income like-for-like growth of 3.6% for Sep 2019, including in-place rent like-for-like growth of 3.0% and occupancy like-for-like growth of 0.6%

Average residential tenancy length of ~10 years

9

Net Rent (in €m)

CAGR

+11%

Adj. EBITDA (in €m)

CAGR

+10%

FFO I (in €m)

CAGR

+11%

FFO I per share (in €)CAGR

FFO I per share

+7%

AFFO & FFO II (in €m)

*based on 2019 9M Annualized FFO I plus result from disposal of properties in 9M 2019

KEY FINANCIALS (1)

285328

364 380

2016 2017 2018 2019 9MAnnualized

225248

276293

2016 2017 2018 2019 9MAnnualized

160 178

198 213

2016 2017 2018 2019 9MAnnualized

104 111 122 137

229 204

334 310

2016 2017 2018 2019 9MAnnualized

AFFO

FFO II

0.92 0.96 1.01 1.08 1.05

1.121.19

1.28

2016 2017 2018 2019 9MAnnualized

FFO I per share after perpetual notes attribution

FFO I per share

*

10

KEY FINANCIALS (2)

Portfolio value (in €m)

CAGR

+18%

Total equity (in €m)

CAGR

+18%

Net Profit (in €m)

653 639583

2016 2017 2018

4,796

6,388

7,244 7,599

Dec 2016 Dec 2017 Dec 2018 Sep 2019

3,065

3,850

4,667 4,858

Dec 2016 Dec 2017 Dec 2018 Sep 2019

441365

1-9/2018 1-9/2019

11

KEY FINANCIALS (3)

EPRA NAV (in €m)

EPRA NAV per share (in €) EPRA NAV incl. perpetual notes per share (in €)

in €m unless otherwise indicatedNAV EPRA NAV

EPRA NAVincluding perpetual notes

Number of shares(in 000’)

Sep 2019 4,422 3,982 5,012

168,059Sep 2019 per share (in €) €26.3 €23.7 €29.8

Per share growth (dividend adjusted) +9% +9% +7%

Per share growth (excl. dividend adjustment) +6% +5% +4%

Dec 2018 4,162 3,753 4,783166,903

Dec 2018 per share (in €) €24.9 €22.5 €28.7

322799

1,349

1,924

2,541

3,3273,753

3,982

5,012

2012 2013 2014 2015 2016 2017 2018 Sep 2019 Sep 2019 incl.perpetual

46.9

9.412.4

16.4

20.222.5 23.7

2012 2013 2014 2015 2016 2017 2018 Sep 2019

46.9

9.4

15.5

20.724.2

28.7 29.8

2012 2013 2014 2015 2016 2017 2018 Sep 2019

CAGR 2012 - Sep 2019 incl. perpetual

+50%

CAGR 2012 - Sep 2019

+30%

CAGR 2012 - Sep 2019

+35%

12

GCP – TOP CLASS FINANCIAL RATIOS

BBB+by S&P

Baa1by Moody’s

with a long-term target to reach A-

unencumbered assets

80%€6.4 bn of assets

Well above policy of 50%

LTV 33%Well below board limit of 45%

ICR 6.5x Average debt maturity

8.2 yearswith no significant maturities

in the next years

Cost of Debt

1.3%

13

Maturity schedule

ø Maturity as at

year end 2016 7 years

Investment grade rating by S&P of BBB+ (A-2 Short Term) and from Moody’s of Baa1with a stable outlook. The ratings are supported by a strong financial profile whichvalidates the success of the business model

GCP’s long maturity schedule enables the Company to fully focus on lifting its assetspotentials, with no significant maturities in the near term

Many bank loans – non-recourse, non cross-collateral and non cross-default from variousfinancial institutions

Healthy and conservative capital structure with a low cost of debt of 1.3%

ø 8.2 Years

ø Maturity as at

year end 20177.7 years

ø Maturity as of

end of Sep 2019 8.2 years

ø Maturity as at

year end 20188.2 years

Loan-to-Value

DEBT SCHEDULE

36%34% 33%

45% Board of Directors' Limit

Dec 2017 Dec 2018 Sep 2019

14

88%

6%6%

fixed & swapped

capped

variable

* calculated as the ratio of the unencumbered assets to the total value of investments properties* adjusted EBITDA / interest** adjusted EBITDA / (interest + loan amortization), DSCR aka fixed charge coverage ratio

Unencumbered assets*

Interest Coverage Ratio* & Debt Service Coverage Ratio** (9M 2019)

Interest hedging structure Financing sources mix

94%Hedged

DEBT STRUCTURE AND COVER RATIOS

59% 57%

3% 3%

27% 34%

11% 6%

Dec 2018 Sep 2019

Bank Debt

Straight Bond

Convertible

Equity

Perpetuals

€2.8 bn

€4.1 bn€4.8 bn

€6.4 bn

Dec 2016 Dec 2017 Dec 2018 Sep 2019

56% of value

64% of value

65% of value

80% of value

5.4x

6.5x

DSCRICR

15

GCP has dozens of non-recourse separate bank loans from various

banks and maintains strong relations with a range of banks and

credit providers

FINANCIAL POLICY & FINANCING SOURCES

Strive to achieve A- global rating in the long term

LTV limit at 45%

Maintaining conservative financial ratios with a strong ICR

Unencumbered assets above 50% of total assets

Long debt maturity profile

Good mix of long-term unsecured bonds & non-recourse bank loans

GCP financial policy

Debt to debt plus equity ratio at 45% (or lower) on a sustainable basis

Dividend distribution of 65% of FFO I per share

16

Peer companiesLowerRange

UpperRange

BusinessAmount of units 76k 131k 396k

In-place rent (€ per m2) 6.6 5.8 6.8EPRA vacancy rate 7.0% 3.6% 2.1%

Book value per sqm (€) 1,474 1,295 2,241NRI multiple 20.0x 19.0x 27.4xCredit rating BBB+ / Baa1 BBB+ / Baa1 A- / A3

Key financials

Total cost of debt 1.3% 1.6% 1.3%

LTV 33% 40% 36%

Interest Coverage Ratio (ICR) 6.5x 4.9x 5.8x

Net debt-to-EBITDA 9.1x 15.2x 9.4x

GCP has a low downside risk among the peer group

PEER ANALYSIS (LARGEST 4)

SEPTEMBER 2019

17

Credit Rating development

* rating anchor of Vonovia is BBB, their final rating, after the effects of modifiers, is BBB+

Strong position within the investment grade scaling with a long-term rating of BBB+ (A-2 short term) S&P rating and Baa1 Moody’s rating

GCP’s anchor rating positions the company well for further rating improvements with a strong business risk profile and a conservative financial risk profile.

The Board of Directors of GCP has decided to strategically aim for A- rating from S&P and A3 rating from Moody’s and will continue to implement measures to achieve this target.

CREDIT RATING MATRIX

Score

A

Baa

Aa

A

Baa

Baa

Caa

A

A

Rating:

a) Indicated Outcome from Scorecard Baa1

b) Actual Rating Assigned Baa1

Factor 4 : Leverage and Coverage

a) Total Debt + Preferred Stock / 40% - 43%

b) Net Debt / EBITDA 12.2x - 12.7x

c) Secured Debt / Gross Assets 6% - 8%

d) Fixed Charge Coverage 4.4x - 4.8x

Factor 3 : Liquidity and Access To

a) Liquidity and Access to Capital A

b) Unencumbered Assets / Gross 75% - 80%

a) Gross Assets (USD Billion) $10.7 - $10.9

Factor 2 : Business Profile (25%)

a) Market Positioning and Asset Baa

b) Operating Environment Aa

Real Estate / REIT Industry Grid [1]

Moody's 12-18 Month

Forward View As of

5/31/2019 [2]

Factor 1 : Scale (5%) Measure

[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.[2] This represents Moody's forward view, not the view of the issuer, and unless noted in the text, does not incorporate significant acquisitions and divestitures.

1MINIMAL

2MODEST

3INTERMEDIATE

4SIGNIFICANT

5AGGRESSIVE

6HIGHLEVER-AGED

1EXCELLENT

aaa/aa+ aa a+/a a- bbb bbb-/bb+

2STRONG

aa/aa- a+/a A- BBB+ BBB bb+ bb

3SATISFACTORY

a/a- bbb+ BBB/BBB- BBB-/bb+ bb b+

4FAIR

bbb/bbb- bbb- bb+ bb bb- b

5WEAK

bb+ bb+ bb bb- b+ b/b-

6VULNERABLE

bb- bb- bb- b+ b b-

GCP will continue strengthening its position within the business profile

(Vonovia- BBB+)1)

(GCP)(DW)(Covivio)

(Alstria) 2)

(Aroundtown)

(ADO)

Financial risk profile

Bu

sin

ess

ris

k p

rofi

le

1) rating anchor of Vonovia is BBB, their final rating, after the effects of modifiers, is BBB+2) rating anchor of alstria is BBB+, their final rating after the effect of modifiers is BBB

18

Analyst Research Target Price

MDAX

GPR250 MSCI

-Global Developed-Europe Developed-Eurozone-Germany

FTSE EPRA/

NAREIT

STOXX 600

MSCI WORLD IMI Core Real Estate

Key Index Inclusions

GCP‘s operations are followed by leading real estate market analysts, who conduct independent equity research and provide price targets

ANALYST COVERAGE

31.7

28.0 28.0 27.5 27.025.5 25.2 25.0 25.0 24.5 24.1

23.0 23.0 22.721.0 21.0 21.0 21.0

20.0

17.5

0

4

8

12

16

20

24

28

32

Citigroup29.01.2020

UBS18.11.2019

First Berlin20.08.2019

Deutsche Bank20.02.2020

Berenberg29.01.2020

HSBC15.07.2019

Credit Suisse29.10.2019

KeplerCheuvreux18.11.2019

Commerzbank21.05.2019

J.P. Morgan16.01.2020

Goldman Sachs16.01.2020

BankhausLampe

18.11.2019

Hauck &Aufhäuser11.09.2019

Barclays09.01.2020

Nord LB05.12.2019

DZ Bank19.08.2019

Bank of AmericaMerrill Lynch18.11.2019

Oddo BHF15.11.2019

Jefferies18.11.2019

Kempen & co19.09.2019

19

PlacementFrankfurt Stock Exchange

(Prime Standard)

First equity issuance

19.07.2012 (€2.75 per share)

Number of shares 167,917,771

Number of shares(fully diluted)

180,676,902

Symbol (Xetra) GYC

GCP - Share Price and Total Return Since First Equity Placement (19.7.2012)

2.75 4 4.466.5

9.72 10.8

15.918

24.81

July 2012 Oct 2012* Feb 2013 Dec 2013 Feb 2014* June 2014** Sept 2015 June 2017 Feb2016/2022***

€15.5m €100m €35.7m €175.5m €150m €140m €151m €198m €450m

Share price/conversion price throughout the Company’s issuances

*Refers to the conversion price of the convertible bonds issuance**Effective conversion price 10.8 (9.72 conversion at 111.25% of par)***Refers to the conversion price. Last conversion date/maturity is March 2022

Date of issuance

Amount issued

OwnershipStructure

OUTPERFORMING

20

OUTPERFORMING

Spread over mid-€-swap for straight bonds

3.75% Perpetual notes Spread over mid-€-swap

21-11-2014: S&P rating upgrade to 'BBB-'

09-02-2015: Moody’s assignment of 'Baa2' rating

24-07-2015: S&P rating upgrade to 'BBB'

23-11-2016: S&P rating upgrade to 'BBB+'

07-09-2017:Moody's rating upgrade to 'Baa1'

Issuance spread: 2.01%

Current Spread: 0.47%



0.00

0.50

1.00

1.50

2.00

2.50

Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19

Series D: remaining 2 years

Series E: remaining 6 years

23-11-2016: S&P rating upgrade to 'BBB+'

07-09-2017:Moody's rating upgrade to 'Baa1'



-

1.00

2.00

3.00

4.00

5.00

6.00

Sep- 15 Mar- 16 Sep- 16 Mar- 17 Sep- 17 Mar- 18 Sep- 18 Mar- 19 Sep- 19

21

GCP is committed to maintaining a high standard of corporate responsibility towards its stakeholders

• GCP implements environment-friendly measures throughout its portfolio, with the goal of reducing its carbon footprint

• Gradually switching to energy sources from 100% renewable energy

• Reducing energy consumption through tenant education and raising awareness

Environmental Social

• Tenant satisfaction is a top priority and an essential part of GCP’s business strategy

• Over a hundred tenant events are organized annually throughout portfolio locations

• Partnering with local organizations and initiatives

• Employee commitment through development programs

Corporate Governance

• Experienced and diverse management board

• Four committees consisting mostly of independent directors for comprehensive oversight: Audit, Risk, Remuneration and Nomination

• Prudent control mechanisms as well as internal and external risk management systems

ESG MEASURES

22

Sustainability awards and ratings

In September 2019 , for the third consecutive year, GCP retained its EPRA BPR Gold Award for the 2018 annual

financial report as well as its EPRA sBPR Gold Award for its EPRA sBPR reporting, highlighting the Company’s continued commitment to the highest standards of

transparency and reporting

The Company’s continuous effort and ongoing commitment to enhancing and expanding its ESG initiatives and reporting was

recognized in February 2019 by Sustainalytics, one of the leading sustainability rating agencies, which ranked GCP in the 95th percentile among 300 global real estate peers, as well as

noting the Company as a leader in its peer group.

95thPercentile

among 300 Real Estate Peers

(February 2019)

(September 2019)

GCP publishes a Corporate Responsibility Report, demonstrating the Company’s commitment to sustainability by presenting to investors, business partners, employees and other stakeholders its

activities and achievements and to embed the high ESG criteria of the Company. The report can be found on our company website in the Sustainability section; grandcityproperties.com/sustainability

http://grandcityproperties.com/en/sustainability.html

23

MANAGEMENT

CEOChristian Windfuhr

Mr. Windfuhr is Grand City Properties’ CEO. Before joining Grand City Mr. Windfuhr served as CEO of Maritim Hotels, with 40 hotels in Germany. Prior to this he served as CEO of Mövenpick. He achievedthe financial turnaround of Mövenpick, drove international expansion, publicly listed the company, and worked out a strategic partnership with Kingdom Holding (HRH Prince Alwaleed) and JP Morgan.Served as Director of TUI, Europe’s largest tour operator. He served high positions in Holiday Inn, Kempinski, & Southern Sun. Graduated at Cornell University.

Board of Directors

Refael ZamirCFOChairman

Mr. Zamir is Grand City’s CFO and Chairman of the Board. Mr. Zamir has over 10 years of international experience in finance and accounting. Before joining GCP at the beginning of 2013, Mr. Zamir servedas a manager for Ernst & Young in the real-estate and financial institutions sectors. Mr. Zamir is a CPA and holds a BA and MBA in finance and business administration.

Simone Runge-BrandnerIndependent director

Ms. Runge-Brandner is an independent Director and member of the audit-, remuneration- and nomination committee. Her past positions include Deal Manager (Director) at UBS Deutschland AG, VicePresident Real Estate Finance/ Investment Funds, Credit Manager at Dekabank Frankfurt and Credit Manager Real Estate Finance at Helaba Frankfurt. Ms. Runge-Brandner has a Diploma in Internationalbusiness administration.

Daniel MalkinIndependent director

Mr. Malkin is an independent Director and member of the audit-, remuneration- and nomination committee. Before joining Grand City, he served as an Investment & fund Manager of fixed incomeinvestment funds at Excellence Investment Bank. Has a BA in Business Administration.

Audit Committee consists of the two independent directors Daniel Malkin and Simone Runge-Brandner

Yakir Gabay Mr. Gabay is the chairman of the Advisory Board. Before GCP, Mr. Gabay was chairman & managing partner of an investment company which managed over $30 billion of assets, before that he was the CEO of the investment banking of Bank Leumi. Mr. Gabay holds a MBA and BA in Accounting/Economics, and is a CPA.

Andrew Wallis Vice chairman, Advisory Board Member. Mr. Wallis was owner and CEO of a large German property management company. Previously he spent 10 years as an investment banker in the city of London for Merrill Lynch and JP Morgan. Mr. Wallis holds an MBA and a CFA.

Claudio Jarczyk Advisory Board member. Prior to GCP, Mr. Jarczyk served as an Executive Director at BerlinHyp Bank specializing in real estate financing with a focus on international clients, as a Chief InternationalExecutive at Landesbank Berlin and as an International Division-Department Manager at Bayerische Vereinsbank Munich. Mr. Jarczyk holds a Dipl.Kfm. / MBA at Munich University.

David Maimon Mr. David Maimon was the President and CEO of EL AL Airlines. Prior to that, Mr. Maimon was EVP of Customer Service, Commerce & Industry Affairs Sales & Marketing in EL AL Airlines and also servedas a Director in various commercial companies such as Leumi Gemel Ltd, Hever and Sun D'Or International Airlines. Mr. Maimon holds an MBA.

24

Generating superior risk

adjusted returns for our shareholders &

bondholders

Experienced management team with unique knowledge of the market

Conservative financial leverage with best financial profile in German real

estate market

In-house IT/software to support a strong team

Proven expertise with established track record

Permanent capital and rating improvement & reduction in cost of debt

Top geographical distribution in Germany

Investing in value-add

assets with downside

protection & upside

potential

High EBITDA & FFO margins and operational performance

Diversified portfolio with strong upside potential

Originate transactions at the source profiting from the full value chain

SUMMARY

25

APPENDIX

Essen Hamburg Munich Nuremberg-Fürth

London Berlin

Dortmund Frankfurt Dresden BremenHannover

Cologne

26

GERMANY - ROBUST MACRO ECONOMIC BASE

German GDP Development (€ trillion)

Source: Eurostat September 2019, forecast based on European Commission Summer 2019 Economic Forecast

German Purchasing Power Standard (EU=100)

Source: eurostat

Source: eurostat Source: eurostat

Debt-to-GDP 2018: Major European countries Budget Surplus/Deficit 2018: Major European countries

INCREASING GDP DESPITE GLOBAL ECONOMIC HEADWINDS

LOW DEBT LEVEL AND A BUDGET SURPLUS POSITIONS GERMANY WELL ABOVE THE EU AVERAGE AND MAJOR ECONOMIES

27

GERMANY - STRONG LABOUR MARKET

Strong economic fundamentals with a strong labor market which sees increasing employment, reducing unemployment rates and increasing wages, especially in Berlin, Leipzig and Munich

People in employment and unemployment rate Development of gross monthly earning (in €)

Source: destatis Source: destatis, industry and service sector excluding bonuses

Germany has the second lowest unemployment in the EU which, and according to Deutsche Bank, results in a greater opportunity to find employment than in many other countries. This, combined with attractive wages and a significant income gap compared to many Eastern European countries is a continueddriver for migration

Growth of Employment major German cities* 2009-2018

* B = BerlinD = DüsseldorfF = FrankfurtHH = HamburgL = LeipzigM = MunichS = StuttgartDE = German average

28

GERMANY - INCREASING RESIDENTIAL DEMAND

Increasing population from strong migration balance, and increasing urbanization levels along with a trend towards single-person households drivedemand for residential real estate

Increasing Population in Germany

Population growth major German cities* 2011-2018

Increasing urbanization rate in Germany

Population Density 2018 (residents per km²)

Source: Worldbank

Source: World BankSource: destatis

B = BerlinD = DüsseldorfF = FrankfurtHH = HamburgL = LeipzigM = MunichS = Stuttgart

Positive net migration in Germany (2018-2020 Bundesbank forecast)

29

GERMANY - LOW RESIDENTIAL SUPPLY, SIGNIFICANTLY BELOW DEMAND LEVELS

Building permits at low levels (000’), significantly below demand levelsShortage and high demand increases

cost inflation in construction (indexed)

Source: destatis

Construction over the last 15 years has been exceptionally low and completions even lower, well below target of approx. 370k p.a. according to IWCologne

Strong construction cost inflation of 4.7% for the 2nd quarter of 2019, and well above regular inflation over the last years according to destatis

According to Deutsche Bank the construction shortfall will remain in the near-term. Even when new supply outpaces annual demand, which DB expectsafter 2022, there is a backlog of well over a million units which will take many years to reduce

Due to demographic changes there is a shortage of master craftsmen in Germany which, according to Deutsche Bank, will have a major impact on thecapacity of new supply going forward, more than the lack of construction plots during the current cycle. As a result they deem overcapacity in theconstruction market unlikely

Source: destatis (actuals), IW Cologne (required construction)

According to IW Cologne construction does not follow the regional demand. As a result some, mainly rural regions, have no shortage while in manymetropolitan areas and student cities the problems persisted or worsened

370k p.a. target by IW

30

LONDON MARKET OVERVIEW

Source: Housing in London 2019 - GLA

Growing London population

Upward trent in open market rented housing

New constructions lagging required additionsIncreasingly strong labour market

Very low total vacancy Strong rental growth

KEY DRIVERS: POPULATION GROWTH, STRONG LABOUR MARKET AND ECONOMIC GROWTH

Robust real GVA growth

31

BERLIN

MARKET OVERVIEW

Key drivers: Capital city, positive net migration balance, public administration and start-up hub

Strong population growth attributable to migration – 30k-50k net migration growth p.a.

Highest population density at >4,000 residents per km² and the second most populous EU inner city after London

Strong base in public administration and other services, illustrated by high employment in service sector of 83%, industry and manufacturing 11% and 6% construction

Germany’s strongly growing start-up capital, with 30% of German startups having their HQ in Berlin and the second highestinvestment in startups in Europe in 2017, after London, offering countercyclical GDP diversification

The country’s most popular university among students and one of the most popular university cities world wide

One of Europe’s fastest growing tourist destinations with 13 million visits every year

Source: destatis.de - Genisis database 82111-0001

Nominal GDP 2009-2018

Source: statistik Berlin Brandenburg

Population growth (2014-Nov 2018)

Source: JLL Residential city profile Berlin

Purchase price development Berlin

2013 2015 201720162014 20182000

3000

4000

5000

6000

7000

8000

PrimeMedian

Median & prime rent development Berlin

2013 2015 201720162014 2018

PrimeMedian

15

10

5

20

25

32

NORTH RHINE-WESTPHALIA

MARKET OVERVIEWKey drivers: Economic growth and urbanization

Highest populated federal state in Germany with a population of approx. 18 million

Strongest economic region in Germany, generating 21% of the country’s GDP in 2018

Home to 29 of 79 largest German cities

High population density with 525 inhabitants per sqm, compared to national average of 230/sqm

NRW houses 20 of Germany’s largest 50 companies by revenue


Nominal GDP 2009-2018

Source: JLL Residential city profile Cologne Source: JLL Residential city profile Düsseldorf

Source: JLL Residential city profile Düsseldorf

Median rent development Düsseldorf

2013 2015 201720162014 2018

Source: JLL Residential city profile Cologne

Median rent development Cologne

PrimeMedian

2013 2015 201720162014 2018

Purchase price development Cologne

PrimeMedian

2013 2015 201720162014 2018

Purchase price development Düsseldorf

2013 2015 201720162014 2018

2000 -

3000 -

4000 -

5000 -

6000 -

7000 -

8000 -

2000 -

3000 -

4000 -

5000 -

6000 -

7000 -

15

10

5

20

25

15

10

5

20

25

1 in 4 students in Germany studies in NRW

33 Source: JLL Residential city profile Leipzig

2013 2015 201720162014 2018

PrimeMedian

Source: JLL Residential city profile Leipzig

2013 2015 201720162014 2018

PrimeMedian

Median rent development Leipzig

Purchase price development Leipzig

DRESDEN/LEIPZIG/HALLE

MARKET OVERVIEW

Source: statsitical bureaus of respective cities


5000

4000

3000

2000

1,000

15

10

5

Population growth 2018

Nominal GDP 2009-2018 Sachsen

2017

Key drivers: IT and Key Technology sectors

Software and IT sector experiences most growth across industry and services sectors, the state of Saxony is in the top 5 of patent applications per capita across German statesDresden & Leipzig have recently been declared one of the 12 digital hubs by the Federal Ministry for Economic Affairs and Energy in Germany leading to an increasing number of start-ups in the region.

Major industrial clusters: Microelectronics, Biotechnology, Automotive

Strong population growth figures from high birth rates. Dresden has the highest birth rate among Germany’s largest cities while Leipzig has the highest population growth in Germany since 2012

34

25

20

15

10

5

Source: JLL Residential city profile Hamburg

2013 2015 201720162014 2018

9,000

8,000

7,000

4,000

3,000

Source: JLL Residential city profile Hamburg

2013 2015 201720162014 2018

5,000

6,000

Median rent development Hamburg

Purchase price development Hamburg

HAMBURG/BREMEN

MARKET OVERVIEW

Key drivers: Major ports, Education, Science and Research and Aerospace industry

Hamburg is a major European education, science and research hub, with nearly 20 universities

Hamburg is Germany’s second largest city and boasts the highest GDP per capita of all German states

Bremen is an important economic center with a focus on international trade, aerospace and automotive industries as well as food industry

Hamburg is the 2nd and Bremen the 4th busiest port in Europe, boosting international trade

Population growth Hamburg

Population growth Bremen

35

EQUITY AND BOND BOOKRUNNERS

Aug-19 ➢ Issuance of Series V, 2034 straight bonds of €70m, under the EMTN programme, effective coupon of 1.5% p.a. until 2024

Jul-19 ➢ Issuance of Series U, 2025 straight bonds of €80m, under the EMTN programme, coupon of 0.75%

Jul-19 ➢ Issuance of Series T, 2021 straight bonds of €52m, under the EMTN programme, coupon of 0.6% + 3 month EURIBOR

Jul-19 ➢ Tap issuance of Series J, 2027 straight bonds of €168m to an aggregate nominal amount of €668m

Jul-19 ➢ Issuance of Series S, 2021 straight bonds of €60.5m under the EMTN programme, zero coupon

Jun-19 ➢ Issuance of Series R, 2039 straight bonds of €40m under the EMTN programme, coupon of 2.5% p.a.

Jun-19 ➢ Issuance of Series Q, 2024 straight bonds of CHF 130m under the EMTN programme, full currency hedge to Euro of notional amount, coupon of 0.6% p.a.

Mar-19 ➢ Issuance of Series P, 2029 straight bonds of HKD 290m under the EMTN programme, full currency hedge to Euro, effective coupon of 1.4% p.a. +3 month Euribor

Feb-19 ➢ Issuance of Series O, 2034 straight bonds of €15m under the EMTN programme, effective coupon of 1.7% p.a. +3 month Euribor

Feb-19 ➢ Issuance of Series N, 2039 straight bonds of €88m under the EMTN programme, effective coupon of 1.7% p.a. +3 month Euribor

Jun-18 ➢ Issuance of Series M, 2033 straight bonds of €55m under the EMTN programme, coupon of 1.7% p.a. till 2023

May-18 ➢ Issuance of Series L, 20-year straight bonds of JPY 7.5bn (€57m) due 2038 under the EMTN programme, currency hedge, coupon of 1.4% p.a.

Apr-18 ➢ Issuance of €350 million perpetual notes, coupon of 2.5% p.a.

Feb-18 ➢ Tap issuance of Series H, 2032 straight bonds of €145m to an aggregate nominal amount of €255m

Feb-18 ➢ Issuance of Series K, 2026 straight bonds of CHF 125m under the EMTN programme, currency hedge, coupon of 0.96% p.a.

Feb-18 ➢ Issuance of Series J, 2027 straight bonds of €500m under the EMTN programme, coupon of 1.5% p.a.

Feb-18 ➢ Issuance of Series I, 2028 straight bonds of HKD 900m under the EMTN programme, currency hedge, effective € coupon of 1% p.a. until 2023

Oct-17 ➢ Issuance of Series H, 2032 straight bonds of €110m under the EMTN programme, coupon of 2% p.a

Jul-17 ➢ Issuance of Series G, 2026 straight bonds of €600m under the EMTN programme, coupon of 1.375% p.a.

Jul-17 ➢ Established Euro Medium Term Note (EMTN) Programme

Jun-17 ➢ Equity capital increase of €198 million at €18 per share

Sep-16 ➢ Issuance of €200 million perpetual notes, coupon of 2.75% p.a.

Feb-16 ➢ Issuance of Series F, 2022 convertible bonds of €450m, coupon of 0.25% p.a, conversion price of €25.54

Jan-16 ➢ Completion of the conversion of Series C convertible bonds (€275m)

Sep-15 ➢ Tap issuance of €150m of 10 year straight bond to an aggregate nominal amount of €550m

Sep-15 ➢ Equity capital increase of €151m at €15.9 per share

Jul-15 ➢ Tap issuance of perpetual notes of additional €100m

Apr-15 ➢ Issuance of Series E, 10-year straight bond of €400m with a coupon of 1.5% p.a.

Mar-15 ➢ Tap issuance of perpetual notes of additional €250m

Feb-15 ➢ Issuance of €150m perpetual notes, coupon 3.75%

Oct-14 ➢ Redemption of straight bonds with nominal amount of €350m. Issuance of 7-year straight bond of €500m with a coupon of 2% p.a.

Jun-14 ➢ Tap issuance of convertible bonds with gross proceeds of €140m

Apr-14 ➢ Tap issuance of existing straight bonds with gross proceeds of €160m

Feb-14 ➢ Issuance of Series C, 5-year convertible bonds of €150m and a coupon of 1.50% p.a

PROVEN ABILITY TO ACCESS CAPITAL MARKETS

36

Overview of Covenant Package

Covenant Type GCP (BBB+ from S&P, Baa1 from Moody’s)

Limitation on Debt ✓

Total Debt / Assets <=60%(1)

Limitation on Secured Debt ✓

Secured Debt / Total Assets <=45%(2)

Interest Coverage Ratio ✓

Adjusted EBITDA / Net Cash Interest >= 2.0x(3)

Maintenance of Unencumbered Assets ✓

Unencumbered Assets / Unsecured Net Debt >= 125%(4)

Change of Control Protection ✓

1

2

3

4

Notes: 1) Total Net Debt / Total Net Assets2) Secured Net Debt / Total Assets3) All issuances under the EMTN programme require min. coverage of 1.8x4) Net Unencumbered Assets / Net Unsecured Indebtedness

The straight bonds and the convertible bond are unsecured and have the below covenant package:

5

GCP COVENANT PACKAGE

37

Screening process

Acquisition in densely populated areas and major cities

High cash flow generating assets

Vacancy reduction potential

Rent level per sqm is below market level (under-rented), upside potential

Purchase price below replacement costs and/or below market values

Potential to reduce the operating cost per sqm

Diversified and large base deal sources Acquisition criteria

Institutional investors

Private Equity

Banks

Loan funds Distressed

ownersBroker

network

“cherry-pick”best deals

Receivers

Court Auctions

▪ Yield & value increase▪ Long term asset

financing

AcquisitionDue Diligence & negotiation ofbest possible deal terms

Deal-sourcing network established since 2004

▪ Repositioning + Capex ▪ Increase Rent & occupancy▪ Decrease operating costs & non-

recoverable costs▪ Improve tenant satisfaction▪ In-house proprietary

IT software

Take-over

Sale on opportunistic basis at high capital gains and channel into high quality properties (up to 10% p.a.)

Long term hold (90%)

BUSINESS MODEL AND ACQUISITION CRITERIA

38

Continuous monitoring of portfolio operations, costs and staff performance

Systematic tenant lead following

Spot opportunities for rent increases

Manage re-letting risks

Collection monitoring

Asset Management

Sales & MarketingOperations / Maintenance

ConstructionAcquisitions & Due Diligence

Customer retention

Customer Relation Management (CRM) through Proprietary and Centralized IT system

Düsseldorf

Neu-Isenburg

Bremen

39

Goal of continuously reducing the carbon footprint

HEATING SYSTEMS

• Replacing heating systems to district heating with the focus on renewable resources or centralized gas with the focus

on climate-neutral produced gas

• 1/3 of the portfolio uses gas supplied heating, of which 28% has been switched to climate-neutral gas – CO2 missions

reduced by 20k tons as a result. A further 13% will be switched in the next two years, and the remainder gradually as

existing contracts expire

• New gas contracts are signed only with suppliers that provide 100% climate-neutral gas

EFFICIENCY AND IMPROVEMENTS

• Working with external providers to ensure efficient waste separation and management, optimizing recycling process

• Creating awareness among our tenants through various language-independent handouts, posters and explanatory videos regarding energy and

heating saving behavior and proper trash disposal

• Working on a Photovoltaic pilot project that will supply 150 apartments with solar energy, with potential to expand

• GCP continuously reviews its portfolio to identify potential energy-saving measures or reduction of CO2 emissions

RENEWABLE ENERGY

• Two thirds of properties have been switched to electricity from 100% renewable sources in the past two years, with

the goal of gradually switching when the opportunity arises

• All of GCP’s offices are supplied with energy from 100% renewable resources

• Cost savings of 23% have been achieved to date as a result

95th

Percentile

ESG MEASURES: ENVIRONMENTAL AND SUSTAINABILITY

40

Neighborhood and community initiatives

• The creation and maintenance of a comfortable community feeling is of high priority to Grand City, and this is

the target of our various initiatives

• GCP organizes over 150 family-friendly tenant events such as Easter egg hunts, barbeques, summer and

Christmas-related festivities to foster and support a community feeling, as well as various contests

• Supporting local associations such as kids’ soccer clubs, language schools, homework initiatives for children and

educational projects, social and consulting services, back-to-school equipment, various cultural events, etc.

Additionally, free spaces are provided for activities such as art projects or workshops

Modernization and accessibility measures

• Installations of playgrounds (both indoor and outdoor), fitness trails, BBQ spaces

• Elderly-friendly installations, e.g. elevators, ramps, stair lifts, bathrooms

• Partnering with local bodies and organizations to support the creation of community spaces and contributing to a

comfortable residential environment

Employee commitment

• Leadership Program provides employees the opportunity for personal development and internal advancement

potential

• Providing benefits such as a dedicated, free-of-charge fitness center and classes at the Company’s operational

headquarters

• Regular trainings for all staff (expert in-house and external trainers)

• High employee retention rate, including among management

95th

Percentile

ESG MEASURES: SOCIAL RESPONSIBILITY

41

Best-in-class tenant service through professional and 24/7 availability

A dedicated and professional service team is available 24/7 for existing and

prospective tenants, reachable through toll-free numbers, e-mail, and the recently

launched GCP mobile app

GCP‘s Service Center is certified with two TÜV service quality certificates, and in March

2017 passed the demanding annual TÜV inspection. Additionally, the Service Center

received the ISO 9001:2015 certification in 2019

Ticketing system: tenant applications and requests are documented in detail to allow

for an efficient follow-up on all stages of the request – setting up schedule for repairs,

visiting master apartments, discussing timetables etc. A ticket is not closed until a

request has been followed up to ensure tenant satisfaction

ESG MEASURES: TENANT SATISFACTION

*TÜV approved Service Center*

42

Advanced IT/software systems to monitor the complete portfolio and to

identify fluctuations of tenants, with immediate control over newly acquired

assets

Operational excellence with tenant management software - top service to

ensure tenant satisfaction and reduce termination

Tenant portal app for smartphones, enabling tenants to communicate with

property management, and submit and monitor the status of service requests

Tenants are able to book and manage consultations with property management

through the app

ESG MEASURES: TENANT SATISFACTION WITH IT SUPPORT

43

CONTACT

Halle

DISCLAIMERIMPORTANT:

This presentation has been provided for information purposes only and is being circulated on a confidential basis. This presentation shall be used only in accordance with applicable law, e.g.regarding national and international insider dealing rules, and must not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by the recipient to anyother person. Receipt of this presentation constitutes an express agreement to be bound by such confidentiality and the other terms set out herein. This presentation includes statements,estimates, opinions and projections with respect to anticipated future performance of the Group ("forward-looking statements"). All forward-looking statements contained in this documentand all views expressed and all projections, forecasts or statements relating to expectations regarding future events or the possible future performance of Grand City Properties S.A. or anycorporation affiliated with Grand City Properties S.A. (the “Group”) only represent the own assessments and interpretation by Grand City Properties S.A. of information available to it as ofthe date of this document. They have not been independently verified or assessed and may or may not prove to be correct. Any forward-looking statements may involve significant risks anduncertainties and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Norepresentation is made or assurance given that such statements, views, projections or forecasts are correct or that they will be achieved as described. Tables and diagrams may includerounding effects. This presentation is intended to provide a general overview of the Group's business and does not purport to deal with all aspects and details regarding the Group.Accordingly, neither the Group nor any of its directors, officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordinglyno reliance should be placed on, the accuracy or completeness of the information contained in the presentation or of the views given or implied. Neither the Group nor any of its directors,officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of thisinformation or its contents or otherwise arising in connection therewith. Grand City Properties S.A. does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation.

Katrin PetersenHead of CommunicationsE-mail: [email protected]

www.grandcityproperties.com

Documents

Company presentation - Grand City Properties SAMigration balance2: 0.9% Population density3: 2,424 per km2. 4 Best in Class Berlin Portfolio ... Over 90% of the portfolio is situated