HALF-YEAR 2015

ROADSHOW

SEPTEMBER 1-3, 2015

2

Senior Management Team

CEO

Rabin Savion

• 2006 – present: Co-founder and

CEO of ADO

• 2002 – 2004: VP International BD

& Marketing at Oxford Capital

Investments / Pine Equity

• 2001 – 2002: Int. Business

Director MAN Properties in

affiliation with CBRE

• 1992 – 2001: Several

international Real Estate

Consultant positions (Miami, US)

• Studied Hospitality Management;

holds BS from Florida

International University

• Born in 1967

CFO

Yaron Zaltsman

• 2015 – present: CFO of ADO

• 2007 – 2015: CFO of ADO Group

Ltd.

• 2001 – 2006: Senior Manager at

Deloitte Touché - Financial Advisory

services

• 1999 – 2000: Consultant at Arthur

Andersen LLP

• Certified Public Accountant (CPA)

• Studied Economics & Accounting

at The Hebrew University of

Jerusalem (Israel); holds an MBA

from Tel Aviv University (Israel)

• Born in 1974

COO

Eyal Horn

• 2007 – present: COO of ADO

• 2004 – 2006: Operations

Manager at Italo

• 2002 – 2003: Business

Development & Sales at Marcus

Evans

• Studied International Business

Administration at Schiller

International University (Florida /

Germany); holds a BBA degree

• Born in 1975

• Strategy

• Business

Development

• Acquisitions

• Human Resources

• Communication

• Finance & Treasury

• Controlling & Risk

Management

• Accounting & Tax

• Investor Relations

• Capital Markets

• Asset and Property

Management

• Construction

Management

• Facility Management

01ADO

OVERVIEW

AND

INVESTMENT

HIGHLIGHTS

Key portfolio metrics (per Q2 2015)Investment highlights

4

Overview ADO – the pure play Berlin residential specialist

…a focussed residential portfolio¹…

Residential

87%

Commercial²

11%

Other

2%

Hold portfolio

98%

Privatisation

potential

c. 11%

Privatisation

portfolio

2%

Buildings 256

Residential Units 13,738

Commercial Units 738

Total Units 14,476

Lettable area (sqm) 969,031

Property value €1.2bn

EPRA NAV €518m

EPRA NAV proforma1 €712m

LTV 57.6%

LTV proforma1 41.6%

In-place rent €66.6m

1 Based on in-place rent total portfolio

2 Commercial in-place rent mainly as part of residential buildings

3 Based on residential lettable area

Milastr.

Prenzlauer Berg

Lübecker Str.

Mitte

Möckernstr.

Kreuzberg

…with potential for privatisation³

Source: ADO, CBRE

1 Proforma numbers are based on expected net proceeds of € 194m from IPO

Berlin residential pure play with a €1.2bn quality portfolio

Efficient, fully integrated and scalable platform with clear strategy

to create value and a management team with in-depth knowledge

of the Berlin market from almost a decade of local presence

Significant rental growth potential demonstrated with 6.2% average

annual like-for-like growth over the past three years (2012-2014)

Conservative financial strategy with c. 45-50% target LTV, c. 6 years

weighted average maturity, with low (2.6%) average cost of debt

and marginal cost of debt of 1.7% supporting FFO profile

2

3

1

4

Our properties…

Highlights Q2

5

Significant improvement in the operational and financial numbers

Financials

Proforma

IPO1 Q2 2015 HY1 2015

Income from rental activities € 17.8m € 28.6m

EBITDA from rental activities € 13.1m € 21.1m

EBITDA Margin 79% 78%

FFO1 €8.5m €13.1m

FFO1 per share €0.24 €0.34 €0.53

EPRA NAV per share €20.35 €20.73 €20.73

LTV 41.6% 57.6% 57.6%

Operations Q2 2015 2014

Rental growth l-f-l (LTM) 6.7% 8.0%

Vacancy rate 4.3% 4.8%

Privatization - avg. sales price /sqm €2,791 NM

Total maintenance & CAPEX /sqm €19.2 €27.2

• Integration of the Carlos portfolio with 5,749

residential units from April 1, 2015

• Operational integration on track, around 60 new

employees hired and integrated

• Investment program for Carlos portfolio started

• Vacancy rate significantly improved despite Carlos

integration

• Privatization program further ramping up, on track to

achieve sales target of 50 units in 2015

• Avg. Sales price of €2,791 per sqm, well above the

avg. portfolio value of €1,250 per sqm

• IPO was successfully concluded

• Fast track inclusion in the FTSE EPRA/NAREIT Index

family achieved

1 Proforma numbers are based on expected net proceeds of € 194m from IPO and 35m shares post IPO

02ADO

PORTFOLIO

AND

STRATEGY

Key metrics residential portfolio

ADO portfolio focused on Central locations

7

Central locations1 North East South West Total

Property value (in mill. €) 601 212 75 81 242 1,211

Number of units 5,544 2,858 988 716 3,632 13,738

Avg. Rent in € / sqm / month 6.12 5.42 6.34 5.84 5.22 5.71

Avg. New letting rent in € / sqm / month 8.47 7.11 8.84 7.76 6.66 8.21

Occupancy (physical) 97.1% 95.8% 90.1% 98.3% 94.2% 95.7%

ADO has a high quality centrally located Berlin portfolio

100% exposure within Berlin city borders with 50% in Central Locations

1 Berlin’s central locations comprise the districts Charlottenburg-Wilmersdorf, Friedrichshain, Kreuzberg, Mitte, North Neukölln, North Steglitz, Prenzlauerberg, South Reinickendorf and Schöneberg

High quality turn of the century…

N

W E

S

Spandau

Reinickendorf

Charlottenburg

-Wilmersdorf

Steglitz-

Zehlendorf

Mitte

Pankow

Lichten-

berg

Marzahn-

Hellersdorf

Treptow-

Köpenick

NeuköllnTempelhof-

Schöneberg

Friedrichshain-Kreuzberg

Central

Building locations:

Central locations1

North

East

South

West

Source: ADO, CBRE

4%8%

13%14%

6%

55%

Year of construction

1991-

2002

1973-

1990

1965-

1972

1950-

1964

< 1918 1919-

1949

1%3%

22%19%

29%26%

>186

# of floors

< 4 12-185 7-11

% of buildings % of buildings

…mostly low rise buildings

Like-for-like growth driven by active managementResidential like-for-like rental growth1 (%)

8

Average of 6.2% p.a. residential like-for-like rental growth over the

past three years, driven by:

Strong rental growth continues, based on quality portfolio and active management

Growth beyond rent table through targeted capex

investments, improving the quality and rent level of the

portfolio

1High regular rent increases implemented up to the

legal limits, resulting in rent increases for 31% of

existing tenants in 2014

Rent increases to market levels through tenant

fluctuation without capex

2

3

1 Annualised figures

8.0%

Regular increasesFrom fluctuation

From cost rentsFrom capex

Source: ADO

Reducing portfolio vacancy by active marketing with

location specific approach4

Maintenance & capex (€ / sqm)

2012 2013 2014Avg.

2012-2014

1st HY 20151

Maintenance 3.9 6.0 6.5 5.5 6.4

Capitalised maintenance 4.6 5.7 7.6 6.4 3.8

Modernisation capex 9.7 7.4 13.2 10.6 9.0

Total 18.2 19.1 27.2 22.5 19.2

1 Includes vacancy changes

0.1%

1.5%

2.5%

2013

4.7%

2.4%

0.0%1.0%

1.3%

2012

5.8%

1.7%

Q2 2015 (LTM)

6.7%

1.4%0.0%

1.8%

3.5%

2014

8.0%

2.8%

0.3%

1.6%

3.3% Avg.:

6.2%

1 Includes vacancy changes

Active asset management and high regular rent increases resulting in 6.2% annual like-for-like rental growth

9

Examples of past investments

• Focused investments on units with highest rent potential

• 223 units modernised, with c. €2.9m modernisation

capex spent on residential unit refurbishments in 1HY

2015

• Average investment of €13.0k per refurbished residential unit

allowed to achieve an average unlevered return on investment

of 21.8% in 2015 better than the on average 17.5% for the

years 2012 to 20141

• Targeted investments are also a measure to address

restrictions from rental cap regulation

2012 2013 2014 1HY 20153

Refurbished residential units 181 169 421 223

Average investment in € per

unit110,999 11,959 13,191 12,960

Return on investment

(unlevered)217.5% 16.8% 17.7% 21.8%

• Increased monthly

net rent from

€6.00 / sqm

to €8.18 / sqm

• Increased annual

rent from

€7,206 to €9,825

• Unit capex

investment:

€11,739

• ROI of 22.3%

• Increased monthly

net rent from

€3.50 / sqm

to €7.89 / sqm

• Increased annual

rent from

€3,990 to €8,995

• Unit capex

investment:

€25,671

• ROI of 19.5%

Karl-Marx-Str. 156,

Neukölln

Kantstr. 122,

Charlottenburg

1 Modernisation capex spent on residential unit refurbishment only

2 Annual rent differential before and after refurbishment divided by unit refurbishment investments

3 Based on the units already relet

Realising rent increases and attractive returns from targeted investments is a key component of our strategy

Investment strategy

Residential unit refurbishment investment and returns 1

Attractive returns of on average 21.8% above the long term average of 17.5% through targeted investments

Source: ADO

2

Strong vacancy reduction track record1 (per Q2 2015)

10

Active management creates upside from vacancy reduction

1 Residential only

Significant improvement since start of the year, but improvement activities result in ongoing elevated levels

• Strong track record of reducing vacancy and increasing

vacancies in acquired portfolios

• Average stabilisation period for acquired portfolios between 1 to

1.5 years, often with an initial increase in vacancy to improve

tenant structure

• Consistently sustainable high rent collection based on

procedural discipline in new tenant screening

Portfolio UnitsVacancy at

acquisition

Current

vacancy

€ / sqm at

acquisition

Current

€ / sqm

Acquired before 2012 2,744 8.1% 2.1% €4.92 €5.95

Acquired during 2012 552 4.0% 2.5% €5.57 €6.36

Acquired during 2013 1,977 6.2% 3.3% €5.38 €6.03

Acquired during 2014 936 3.4% 3.0% €6.12 €6.28

Acquisition Löwenberger

Str. 2,4 (2014)379 29.8% 32.5% €8.36 €8.72

Carlos portfolio 5,749 4.0% 4.9% €5.20 €5.24

Sta

ble

po

rtfo

lio

Vacancy improvement Rent increase

• Units currently available for letting amount to 1.1% vacancy

• Units currently being refurbished result in vacancy of 2.7%

• One turnaround project in Lichtenberg, Löwenberger Str. 2-4,

accounts for 0.7% of total vacancy (see next page)

• The Carlos-Portfolio accounts for 2.1% of total vacancy.

• More than 80% of the vacancy in the Carlos portfolio results

from the initiated construction work

• Vacancy rate in the “original” portfolio dropped by 100bps in

first half year 2015

Vacancy split¹

1 Based on physical vacancy, residential only; commercial vacancy rate Q2 15 3.8% vs Q4 14 3.6%

Source: ADO

4

1.9%1.4%

0.8%

0.3%

2.5%

1.6%

0.9%

1.8%

0.4%

0.8%

0.5%

4.8%

3.8%

4.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Q4 2014 Q2 2015

like-for-like

Q2 2015

Total

Sales

Construction (Carlos)

Construction

Marketing (Carlos)

Marketing

Carlos Portfolio – Integration and improvement has startedLöwenberger Straße – Investment & turnaround on track

11

Case studies –Löwenberger Straße & Carlos Portfolio

Key metrics (per August 12, 2015)

Location Lichtenberg

Acquisition price €13m

Number of units 379

Avg. rent / sqm / month – at acquisition €8.36

Avg. rent / sqm / month – current €8.78

Avg. new lettings rent / sqm / month €10.03

Target occupancy 98.0%

Occupancy steadily increasing since turnaround in Feb 15

• Active asset management to improve tenant structure

• €1,357k capex since acquisition on 144 units (€278 / sqm) to

create up-to-date standards, of which 104 are already let

Active management combined with targeted investments drives significant KPI improvements

Source: ADO

70.2%

56.6%

74.7%

50%

55%

60%

65%

70%

75%

80%

stabilization phase

99 vacant units, of which

c. 40 with Marketing &

59 under construction

• Around 60 new employees hired to ensure full integration &

application of ADO standards and processes in the Carlos

portfolio (no employees taken over)

• Investment and improvement program has started, already

around 300 under construction. Current vacancy rate therefore

at 5.1% (more than 80% due to construction)

• Satellite/field offices in place used by operation to service and

enhance tenant satisfaction (technical support, complete facility

management services and letting staff).

• Already more than 80 new lettings improving the average rent

since take-over by 2.5%

Key metrics (per August 12, 2015)

Location Spandau & Reinickendorf

Acquisition price €376m

Number of units 5,749

Avg. rent / sqm / month – at acquisition €5.20

Avg. rent / sqm / month – current €5.33

Avg. new lettings rent / sqm / month €5.96

Rent restricted units 48%

12

• Value-oriented condo sales at prices exceeding fair value

• 20 units sold in first half year 2015 for gross proceeds of

€4.15m

• Taxable profit of only 17% doesn’t reflect the full economic

gain as the units currently sold have been acquired as

condominiums therefore are carried at higher book values

• Sales target of at least 50 units in 2015 on track

• ADO targets to privatise around 100-150 units p.a. going

forward

Privatisation strategy and selection criteria

Acquisitions

Privatisation & Acquisition activities well on track

20 units sold in 1 HY 15 for an average sales price of €2,791 per sqm

Source: ADO

555

1,156 1,711

0

400

800

1,200

1,600

2,000

Converted & Conversion

in progress

Eligible for

conversion

Total

Units

1,250

2,791

0

500

1,000

1,500

2,000

2,500

3,000

Avg. Portfolio value

30/06/15

Avg. sales price

1HY 2015

€/sqm

Condominium conversion potential - Pipeline

Sales profit – Avg. sales price vs. portfolio value

• Opportunities all over Berlin are under review

• Total current pipeline of 2,600 units

• Thereof 1,100 units in final stage of negotiation

03FINANCIAL

OVERVIEW

In EUR m H1 2015 Q2 2015 Year 2014

Income from rental activities 28.6 17.8 33.7

Cost of rental activities (4.9) (3.2) (6.1)

Net operating income 23.7 14.6 27.6

Overhead costs (2.6) (1.5) (3.0)

EBITDA from rental activities 21.1 13.1 24.6

EBITDA from rental activities margin (%) 78.5% 79.1% 76.9%

Net result from privatization sales 0.7 0.2 0.1

EBITDA total 21.8 13.3 24.7

Financial cost interest bearing loans (8.0) (4.6) (11.1)

Financial costs shareholder loans/net others (5.6) (3.3) (2.7)

D&A (0.1) (0.1) (0.1)

EBT 8.1 5.3 10.8

14

• Income from rental activities for the first 6 months increased by 80%

driven mainly by the integration of the Carlos portfolio from April 1, 2015.

Income from rental activities as of Q2 reflects an annualized income of

€ 71 million.

Strong rental growth supported by our investment strategy

• The EBITDA from rental activities increased by 72% for the first half

2015. Comparing Q2 2015 to Q1 2015 it grew by 62% to EUR 13 million.

This represents an annualized EBITDA of EUR 52 million.

• Financing relies predominately on bank financing provided by German

mortgage banks that currently amounts to € 694m and a € 19m loan from

Harel. The average interest rate runs at 2.6%

• Include mostly non-cash interest loans from ADO Group which were all

converted into equity following the IPO.

Source: ADO

Comments

Overview of profit and loss

1

1

3

4

3

2

4

In %Q2 2015

(LTM)2014

CAPEX 3.5% 3.3%

Fluctuation 1.8% 1.6%

Cost Rents 0.0% 0.3%

Regular Increases 1.4% 2.8%

Total 6.7% 8.0%

2

In EUR m H1 2015 Q2 2015 Year 2014

EBITDA from rental activities 21.1 13.1 24.6

Net cash interest (8.0) (4.6) (11.1)

FFO1 (from rental activities) 13.1 8.5 13.5

Maintenance capital expenditures (1.4) (0.7) (3.4)

AFFO from rental activities 11.7 7.8 10.1

Net profit from privatizations 0.7 0.2 0.1

FFO2 (incl. disposal results) 13.8 8.7 13.6

FFO 1 EUR per share 0.53 0.34 0.54

FFO2 EUR per share 0.55 0.35 0.55

Based on 25m shares as of Jun 30, 2015

FFO 1 EUR per share (proforma) 0.38 0.24 0.39

FFO2 EUR per share (proforma) 0.40 0.25 0.39

Based on 35m shares post IPO

• FFO has increased strongly over the last years benefitting from strong

organic and acquisitive rental income growth. The increase in Q2 2015 is

mainly due to the addition of the Carlos portfolio.

• Maintenance & CAPEX

Total investment into the portfolio in the first half of 2015 amounted to

EUR 7.4 million compared to EUR 12.3 million in 2014. The reduced cost

per sqm on the modernization capex and capitalized maintenance results

from the integration of the Carlos portfolio which was only taken over in

the second quarter. We are currently in the ramp-up phase of our

dedicated building by building business plan for this part of our

portfolio. The investment in our “original” portfolio was in line with historic

levels which supported our strong 6.7% like-for-like rental growth.

• Capitalized maintenance (public) refers to investments to preserve the

quality and value of properties and does not include investment capex.

• Our privatization business which we started at the end of 2014 was

continuously taking up speed in the first half of 2015. In the first half of

2015 we already sold 20 units. With that we see ourselves well on track to

achieve our goal to sell at least 50 units until the end of the year. The

comparably low taxable profit of 17% results from the fact that most of

these units have already been acquired as condominiums and have

therefore been carried at higher values in our books compared to assets

which have been acquired as rental only properties. The average sales

price of €2,791 per sqm compare to an average portfolio value of €1,250

per sqm.

15

Q2 strong FFO yield reflects an annual run-rate of 6.5% on our NAV

1

3

1

2

Source: ADO

Comments

3

4

In EUR / per sqmJan 1–Jun

30, 2015

Jan 1–Dec

31, 2014

Maintenance 6.4 6.5

Capitalized maintenance 3.8 7.6

Modernization CAPEX 9.0 13.2

Total 19.2 27.2

2

4

25%

24%22%

22%

3%2% 2%

Solid balance sheet with low cost of debt and long term financingwith a targeted c. 45-50% LTV

16

• Total bank debt of €694m - primarily mortgage backed/secured

• Average cost of debt of 2.6%1 (2.5% on bank debt)

• 96% of interest is fixed or hedged

• No near term maturities with avg. weighted maturity of c. 6 years

• Mid-term target LTV of c. 45-50% allowing fast execution of

acquisitions from primary proceeds and target maturity for mortgage

debt between 5 to 7 years

• Successfully secured financing for acquisition of Carlos portfolio

at 1.7%

Diversified funding with German mortgage banks – by volume

Loan maturity profile with weighted average debt maturity of

c. 6 years

Key financing figures and strategy

Solid financing structure supporting FFO and cash flows with a committed LTV target of 45-50%

- 14 48

211

440

0

100

200

300

400

2015 2016 2017 2018-

2020

2021+

Bank debt (€m)

Q2 2015 LTV of 57% pre IPO due to recent acquisitions1

45

70

57

42

0

20

40

60

80

100

Old portfolio New portfolios

(Waypoint & Carlos)

Combined Pro-forma

LTV (%)3.4% 1.7% 2.6%

4.4%

2.8%

3.3%

2.1%

% Average interest rate

% Average interest rate

Source: ADO

1 Total of bank debt and € 19m Harel loan

1 Proforma numbers are based on expected net proceeds of € 194m from IPO

• Total portfolio value of € 1,211m as at 30 June, 2015 includes both

trading and investment properties. The Carlos portfolio with a total

amount of € 376m was taken over in April:

• Interest bearing loans include € 694m loans from banks and a loan

from Harel in an amount of € 19m related to the WayPoint portfolio.

• Includes only loans and capital notes from ADO Group. In July 2015,

these shareholder loans were converted into equity as a non-

refundable capital contribution without issuance of new shares

Overview of balance sheet

17

1

3

2

Source: ADO

Comments

Carlos

Remaining

portfolio - mostly

in Central Berlin Total

Total fair value € 376m € 835m € 1,211m

Value per sqm € 939 € 1,469 € 1,250

Multiplier

(current rent) 15.6x 19.6x 18.2x

Multiplier (new

letting rent) 13.1x 14.3x 13.9x

In EUR m JUN 30, 2015 DEC 31, 2014

(Unaudited) (Audited)

Investment properties 1,170 731

Other non-current assets 2 1

Non-current assets 1,172 732

Cash and cash equivalents 15 10

Other current assets 67 59

Current assets 82 69

Total assets 1,254 801

Interest bearing loans 713 433

Amounts due to related parties 290 186

Other liabilities 28 25

Deferred tax liabilities 41 26

total Liabilities 1,072 670

Total equity attributable to shareholders of the company 178 130

Non-controlling interests 4 1

Total Equity 182 131

Total shareholder’s equity and liabilities 1,254 801

Add back shareholder loans (to be converted upon IPO) 290 186

Adjusted Equity 468 316

1

1

2

3

18

Current proforma NAV - € 20.35 per share

(€m)

Source: ADO, CBRE

EPRA NAV (JUN 30, 2015 – unaudited)

178

518

712

290 941

Total equity attributableto shareholders of the

company

Add backshareholder loans

(to be converted uponIPO)

Derivatives Deferred tax liabilities EPRA NAV (unaudited) Profroma EPRA NAV(unaudited)

€ 20.73

per share

€ 20.35

per share

1 Proforma numbers are based on expected net proceeds of € 194m from IPO and 35m shares post IPO

We expect further growth of the NAV per share due to strong demand especially in Central Berlin

Seelchower Str.

Neukölln

19

Guidance

Bötzowstr.

Pankow

Schlesische Str.

Kreuzberg

Leibnizstr.

Charlottenburg

Transvaalstr.

Wedding

Kalischer Str.

Wilmersdorf

For the full year of 2015 we update our FFO1 forecast to be approximately EUR 30 million

In the privatization business we confirm our target to sell at least 50 units for the full year 2015 and

expect to sell around 100 to 150 from 2016 onwards

We anticipate like-for-like rental growth going forward to be approximately 5% which would have positive

impact over our portfolio value, NAV and NAV per share 1

2

3

The dividend payout ratio is expected to be between 30% to 40% of FFO14

04CONTACT

INFORMATION

ADO Properties

Am Karlsbad 11

10785 Berlin

Germany

Investor Relations

IR@ado.properties

+49 (30) 403 907 500

APPENDIXMARKET

OVERVIEW

22

Berlin’s attraction is based on its modern infrastructure, educational institutions and growing presence as a business hub

Berlin attracts the highest number of new businesses in Germany…

Source: Senate Department for Economics, Technology and Research

…and also attracts an increasing number of blue-chip companies…

Source: Berliner Morgenpost Berlin’s Top Employers 2014 Annual Survey

…resulting in a growing population

Source: Bundesländer Statistics Offices

Comments

Source: Verkehrverbund Berlin-Brandenburg, Destatis, Bundesländer Statistics Offices

• Modern infrastructure• 3.6m daily passenger trips via the public transportation system

• >28m overnight stays annually (3rd rank in Europe)

• Leading educational institutions• Federal state with the 2nd highest spending on education (€1,514 per

capita)

• Federal state with highest number of non-Berlin students (c. 29,000)

• Growing presence as a business hub• 30,000 jobs created in 2013

• Federal state with the highest level of venture capital investment in IT

(€136m; €46m for runner-up)

• Federal state with the 2nd highest spending on R&D (3.6% of GDP)

DE

76

SH

78

BY

81

HB

84

HE

96

HH

111

BE ST

46

TH

121

BB

57

MV

58

SL

60

SN

62

NI

65

BW

70

NW

75

RP

75

52

(0.4)%(0.4)%

(0.1)%

(0.7)%

MVSN SL

0.0%

THBB

(0.2)%

NW

0.1%

STRPBY

0.7%

HH

0.7%

BE

1.4%

0.1%

NI

0.1%

DE

0.2%

SH

0.3%

HB

0.4%

HE

0.5%

BW

0.6%

Population growth (2013)

# of new businesses per 10,000 residents (2013)

German headquarters

Note: BB=Brandenburg, BE=Berlin, BW=Baden-Württemberg, BY=Bayern, HB=Bremen, HE=Hessen, HH=Hamburg, MV=Mecklenburg-Vorpommern, NL=Niedersachsen, NW=Nordrhein-Westfalen, RP=Rheinland-Pfalz, SH= Schleswig-

Holstein, SL=Saarland, SN=Sachsen, ST=Sachsen-Anhalt and TH=Thüringen

Berlin vacancy decreased rapidly…

… due to strong migration to Berlin, which is forecast to

remain strong……

… further increasing housing shortage given lack of new supply

Vacancy in the Berlin market reduced significantly based on continuing population growth

Source: Berlin-Brandenburg Statistics Office, Senatsverwaltung für Stadtentwicklung und Umwelt

Source: CBRE‐empirica‐Leerstandsindex reports

1 Demand is estimated as population growth divided by the average household size of 1.73 (CBRE), increased by

c. 4,800 buildings to be replaced, as estimated by the Institut der deutschen Wirtschaft Köln (IWK)

2 Estimation based on the construction permits, issued in 2011

3 Estimation based on the sum of the construction permits, issued in 2012-2014

Source: Berlin-Brandenburg Statistics Office, IWK, CBRE Berlin Housing Market Report 2014, Federal Institute for

Research on Building, Urban Affairs and Spatial Development

Continuous undersupply in the market providing strong fundamental support for ADO’s business case

23

0%

1%

2%

3%

4%

5%

6%

2006 2007 2008 2009 2010 2011 2012 2013

1.8%

3,700

3,600

3,500

0

X1,000

+22.7k p.a.

+44.7k

+47.8k

3,517

2013

3,562

2014

3,698

2020

3,470

2012

Berlin housing supply and demand

Berlin residential housing vacancy

Berlin population growth

60,000

50,000

40,000

30,000

20,000

10,000

0

# of apartments

Total 2015-2017F

53,800

33,500³

2014

31,000

5,500²

2013

32,500

4,526

2012

29,400

4,180

Demand¹Newly built apartments