Willkommen
Jane Gavan CEO
Tamara Lawson CFO
Dream Global REIT
Refinancing Initiative • Refinancing program to take advantage of historically low interest rates • Redemption of 5.5% convertible debentures with mortgages at rates below 2% • Expect interest rate savings of over $10 million and proforma interest coverage ratio of 4 times
Dream Global REIT
Dual Listing in Europe • Listing on the Frankfurt stock exchange under the symbol “DRG” • Easier for Europeans to buy DRG • Investor relations program in Europe to create liquidity and reinforce the Dream Global opportunity
Dream Global REIT
Credit Rating • Investment grade rating from Moody’s in Europe • Endorsement of our assets, the German market and the management platform • Provides another source of capital for investment opportunities
"Dream's Baa3 rating reflects its wellmanaged, good quality, and geographically diversified portfolio that is located in markets with strong office sector fundamentals." Ramzi Kattan Vice President – Senior Analyst Moody's Investors Service
Bruce Traversy Head of Investments
Size of investment market 2015 investment volume in billions of $CDN
$100
$80b
$80 $60 $40
$24b
$20 $0 Canada
Germany
36 million people
82 million people
Size of investment market 2016 change in investment volume YTD 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20%
25%
Canada
Germany
-15%
Buyer origin Canada
Germany
10%
55%
45%
90%
Foreign
Domestic
Foreign
Domestic
Relative size of office markets Office inventory in hundreds of millions of square feet 250 200 150 100 50 0
220
207 169
159
149 117
100
84 83
72 65 60
48 47 43 41 40 37 37 35 35 31 30 29 27 25 23 21
Relative size of office markets Office inventory in hundreds of millions of square feet 250 200 150 100 50 0
220
207 169
159
149 117
Relative size of office markets Office inventory in hundreds of millions of square feet 120 100 80 60 40 20 0
100 84 83 72
65
60 48 47
Relative size of office markets Office inventory in hundreds of millions of square feet 50 45 40 35 30 25 20 15 10 5 0
43
41 40
37 37 35 35 31 30 29
27 25
23
21
Comparative vacancy: top markets Current office vacancy rate 25%
22%
20%
11%
11%
0%
6% 6%
5% 3%
11%
10%
9%
10% 5%
15%
14%
15%
9% 9% 5%
5% 4%
6%
5% 3%
6% 3%
3%
6%
5%
4% 2%
3%
Prime net initial yields 6.00% 5.45%
5.50%
5.69% 5.24% 4.84% 4.85%
5.00% 4.50% 4.00% 3.50%
4.10% 4.15% 3.60%
3.85% 3.30%
3.50%
3.71% 3.82%
4.09%
3.00%
Canada: cap rates for Downtown AA office building converted to net initial yields by deducting estimated closing costs Germany: net initial yields for prime office Q3 2016
Alexander Sannikov SVP, Commercial Properties
Dream Global REIT Portfolio Overview
12.6M SQUARE FEET GLA
$2.9B TOTAL GVA
181
89.1%
$176M
$11.23
PROPERTIES
TOTAL GRI
OCCUPANCY
BOOK VALUE PER UNIT
4.2
YEARS WALT
8.3% EPRA VACANCY
Overview of the Acquisition Properties Acquisition Properties comprise 78% of overall GAV* 22% Rivergate, Vienna, Austria
Millerntorplatz 1, Hamburg
Cäcilium, Cologne
Z-Up, Stuttgart
Werfthaus, Frankfurt
Oasis III, Stuttgart
ABC Bogen, Hamburg
k.26, Frankfurt
Gross Asset Value
78%
Initial Properties Acquisition Properties
Acquisition Properties at-a-glance of GAV
properties
35
5.4M sf
96.2%
5.5
1.0%
$2.3B
occupancy
* Including Siemens Campus
years WALT
GLA
Market rents above in-place rents
9
Cologne Tower, Cologne
Overview of the Initial Properties Initial Properties comprise 22% of overall GAV* 22%
Gross Asset Value
78%
Initial Properties New Acquisitions
Saarforum, Saarbrücken
Ölmühlweg 12, Königstein
Kurfürstenallee 130, Bremen
Poststrasse 4-6, Darmstadt
Initial Properties at-a-glance
$0.7B
146
of GAV
Properties
83.6%
3.1 years
Occupancy
* Including Siemens Campus
WALT
7.2M sf LAND: 12.5M sf GLA:
11%
Market rents above in-place rents
12
Our Portfolio
HAMBURG
BERLIN
Tenant Base DUSSELDORF COLOGNE
FRANKFURT
Initial Portfolio Acquisitions Joint Venture
STUTTGART
Deutsche Post
Other Tenants
MUNICH
VIENNA
Our Portfolio
HAMBURG
BERLIN
Tenant Base DUSSELDORF COLOGNE
FRANKFURT
Initial Portfolio Acquisitions Joint Venture
STUTTGART
Deutsche Post
Other Tenants
MUNICH
VIENNA
Our Portfolio
HAMBURG
BERLIN
Tenant Base DUSSELDORF COLOGNE
FRANKFURT
Initial Portfolio Acquisitions Joint Venture
STUTTGART
Deutsche Post
Other Tenants
MUNICH
VIENNA
Our Offices
HAMBURG
HALLE
COLOGNE FRANKFURT LUXEMBOURG
MUNICH
VIENNA
Our strong and diverse management platform
Jane Gavan
Tamara Lawson
Alexander Sannikov
Chief Executive Officer Experience: 28 yrs
Chief Financial Officer Experience: 25 yrs
SVP, Portfolio Management Experience: 10 yrs
Bruce Traversy
Kim Andersson
Anne Braun
Jennifer Bachmann
Frederic Spratte
Head of Investments Experience: 27 yrs
Marc Nickel Head of Leasing Experience: 15 yrs
Investments Experience: 12 yrs
Head of Asset Management Experience: 8 yrs
Head of Strategic Asset Management Experience: 14 yrs
Associate Director, Leasing Experience: 15 yrs
Michael Schwöbel Head of Real Estate, Europe Experience: 18 yrs
Mark Göhring
Strategic Assets Projects Experience: 25 yrs
Antje Lubitz
VP, Finance & Controlling Experience: 23 yrs
Michael Schwöbel Head of Real Estate, Europe
Marc Nickel Head of Leasing
Anne Braun Head of Strategic Asset Management
Frederic Spratte Associate Director, Leasing
Property Tour
Berlin
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nurnberg
Stuttgart Freiburg
Munich
Vienna
Berlin VIEW PROPERTY TOUR
Berlin Vacancy Rate
Prime Rents
9%
€ 29
8%
€ 28
7%
6.6%
€ 28.00 psm
€ 27
6%
€ 26 €/psm
-40%
5% 4%
4.0%
3%
€ 24 € 23
2%
€ 22
1%
€ 21
0%
€ 20 2011
2012
2013
2014
2015
2016
+27%
€ 25
€ 22.00 psm
2011
2012
2013
2014
2015
2016
Berlin
Goldpunkthaus Zimmerstraße Lowenkontor — 2: Berlin map makro with Lowenkontor & Goldpunkt
Berlin Gendarmenmarkt
Zimmerstraße
Potsdamer Platz
Checkpoint Charlie
Berlin • Berlin office market is firing on all cylinders • Our portfolio is well leased to a wide range of tenants • Strong growth prospects with recent renewals completed at 20% to 30% rent increases
Hamburg
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nurnberg
Stuttgart Freiburg
Munich
Vienna
Hamburg VIEW PROPERTY TOUR
Millerntorplatz
Millerntorplatz
Millerntorplatz
Millerntorplatz
Millerntorplatz • Over 20% in value appreciation in less than 2 years • IRR on the manage-to-core project in excess of 15% • The required investment of EUR 10 million will be largely financed by existing senior lender based on the value increase
Hamburg
Humboldt Haus
Hamburg
Hammer Strasse
Hammer Strasse
Hammer Strasse
Hammer Strasse
Stuttgart
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nurnberg
Stuttgart Freiburg
Munich
Vienna
Stuttgart VIEW PROPERTY TOUR
Stuttgart
• One of the strongest markets in Germany with vacancy rate of 3% • Low new supply • Dream Global REIT has 3 strong assets
Vienna
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nurnberg
Stuttgart Freiburg
Munich
Vienna
Rivergate
Rivergate Rivergate VIEW PROPERTY TOUR
Rivergate
Rivergate • • • •
Excellent transport connections International tenants Flexible floorplate High quality office building
Rivergate
Rivergate
• Excellent transportation connections • International tenants • Flexible floorplate • High quality office building
Dusseldorf
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nurnberg
Stuttgart Freiburg
Munich
Vienna
Dusseldorf VIEW PROPERTY TOUR
Feldmühleplatz
Feldmühleplatz
• Park like setting in an upscale neighbourhood • Strong covenants • Long turn upside from new residential redevelopment
Frankfurt
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nurnberg
Stuttgart Freiburg
Munich
Vienna
Frankfurt VIEW PROPERTY TOUR
Secondary Markets
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nurnberg
Stuttgart Freiburg
Munich
Vienna
Relative Yield Premium Prime Yield 7%
REGIONAL 12
6%
BIG 7
5%
4%
3% 5
10
15
20
Market Size in sqm
Strong Fundamentals Vacancy Rate 8%
6.0%
4%
Rental Growth 2010-2015
€ 30
20%
€26
€ 25
5.5% €/psm
6%
Prime Rents
15%
€ 20
€13
€ 15 € 10
2%
Regional 12
10%
0%
€0 Big 7
12%
5%
€5
0%
13%
Big 7
Regional 12
Big 7
Regional 12
Hannover
Hannover
Grammophon
Essen
Essen
Europa Center
Erfurt
Erfurt
Anger Entrée
Darmstadt
Darmstadt
Europahaus
Secondary Markets Freiburg
Nurnberg
Lorracher Strasse
Parkside
Freiburg
Mannheim
Bertold Strasse
Gallilei
Nurnberg
Ergo
Initial Portfolio
Initial Portfolio
HAMBURG
BERLIN
DUSSELDORF COLOGNE
FRANKFURT
STUTTGART MUNICH
VIENNA
Guetersloh - Macro
DRG Asset City Centre
Train Station
Guetersloh - Micro
Bremen
Darmstadt
Saarbrücken
Kiel
Kiel Potential Redevelopment
Munich
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nuremberg
Stuttgart Freiburg
Munich
Vienna
Munich VIEW PROPERTY TOUR
Munich Marsstraße 20
Leopoldstraße
Werner-Eckert I
Tubinger Strasse
Westendstrasse
Werner-Eckert II
Nurmberg
Siemens Campus Nurnberg
Siemens Campus — Nuremberg — Siemnes
Siemens Campus — Nuremberg — Siemnes
Siemens Campus
Cologne
Hamburg
Berlin
Hannover
Essen
Dusseldorf Cologne
Erfurt
Frankfurt Darmstadt Mannheim Nuremberg
Stuttgart Freiburg
Munich
Vienna
Cologne
Cologne Tower VIEW PROPERTY TOUR
Cologne • Trophy asset • Landmark building • High quality, international tenants • Exceptional amenities
Danke
