ADLER Real Estate AG:

Q1 2018 results presentation May 2018

Q1 2018 Operational performance3

Agenda

2

Update on BCP transaction5

Q1 2018 Financial performance2

ADLER Real Estate on the Capital Markets4

1 Introduction and executive summary

Guidance and outlook 6

Appendix7

1. Introduction and executive summary

3

Q1 2018 highlights

4

■ Average rent for the core portfolio increased by 3.2% to € 5.23 sqm/month in Q1 2018 vs Q1 2017 (like-for-like 3.7 %)

■ Occupancy rate for the core portfolio improved from by 1.1 PP from 90.6 % in Q1 2017 to 91.7 % in Q1 2018

■ FFO I up 79.7 % to EUR 14.2 million■ FFO I per share in Q1 2018 at € 0.21 (€ 0.13 in Q1 2017)

Rental operation

Financingand LTV

■ LTV in Q1 2018 stood at 60.4 % (from 59.4 % at the end of 2017), transitional effect to be reversed after consolidation of Brack Capital Properties

■ WACD down by 0.34 PP from 2.72 % at end of 2017 to 2.38 % in Q1 2018■ Successful placement of €800 m bonds post Q1 in April to refinance bridge loan facility and buyback of

EUR 200 million 2015/2020 4.75 % bonds

Valuation and EPRA

NAV

■ Q1 2018 fair market value of investment properties reached € 3,054.2 million (€3,019 million end of 2017) not including Brack Capital Properties

■ Fully diluted EPRA NAV per share of €16.61, stable on FY 2017 (€16.64) due to one-off financial expenses amounting to € 37.4 million

1LTV computed as net debt over GAV, excl. convertible debt

5

Significant FFO increases for

the next 3 years

■Operational efficiencies including digitalization

■Reduction of interest expenses for higher yielding debt

■ Further portfolio growth expected

ADLER Real Estate at a glance

Key short-term developmentsADLER Real Estate at a glance

■ ADLER Real Estate is a leading listed real estate company in Germany

■ SDAX-listed since 2015 (also included in FTSE EPRA/Nareit, Global Real Estate Index, GPR General Index, DIMAX)

■ Focus on value creation through organic growth and M&A strategies

■ Event-driven/special situation strategy

■ Strong acquisition-led growth 2013 to 2015 and consolidation in 2016, growth and capital structure optimization in 2017 and focus on growth in 2018

■ Focus on affordable housing in specific regions in Germany

■ After sale and de-consolidation of trading activities (ACCENTRO) now focused exclusively on letting business with some development exposure (Riverside) by way of forward purchase

Note: 1 LTV computed as Net debt over GAV, excl. convertible bonds

Continued improvements of key financial

metrics

■Reduction of LTV1 from 73.1% (FY2013) to 60.4% (Q1 2018)

■Reduction of WACD from 4.7% (2013) to 2.38% (Q1 2018)

■Rating improvements from BB- to BB Positive outlook , targeting investment grade in 2019 or earlier

Internalisation of key

operational functions

■Property management (ADLER Wohnen Service)

■ Facility management (ADLER Gebäude Service)

■Energy services (ADLER Energie Service)

Strong performance track record

6

14.2

0

10

20

30

40

50

60

3M 6M 9M FY

2017 2018

0

50

100

150

200

250

3M 6M 9M FY

2017 2018

€ m

€ m

24,086

48,218 47,662 50,305 50,236

0,000

10,000

20,000

30,000

40,000

50,000

60,000

2014 2015 2016 2017 Q1 18

1.171

2.235 2.442

3.019 3.054

0

500

1.000

1.500

2.000

2.500

3.000

2014 2015 2016 2017 Q1 18

€ m

351

880

1,066 1,207 1,184

0,000

0,200

0,400

0,600

0,800

1,000

1,200

2014 2015 2016 2017 Q1 18*

€ m

▪ ADLER Real Estate has shown a strong operational performance in Q1 2018

Number of rental units ('000) Net rental income (€ m) Investment properties (€ m)

FFO I (€ m) EPRA NAV (€ m)

0.750.74

0.60 0.59 0.60

50,0%

55,0%

60,0%

65,0%

70,0%

75,0%

2014 2015 2016 2017 Q1 18

LTV (%) Net debt / GAV

Note: * Effect due to share buyback program and one-off expenses, FY17 LTV adjusted for one-off items in connection with the company’s refinancing activities would stand at 57.3%

+ 6.9%

+ 79.7 %

Guidance68 - 73

Guidance210 - 220

Guidance55

ADLER Real Estate has shown a consistent track record of value creating M&A and successful integration

7Note: 1 Total offer enterprise value

Corporate M&A

2014■ First public takeover by ADLER Real Estate, offer initially accepted by 92.7% of shareholders■ The acquisition also brought its ESTAVIS’ subsidiary ACCENTRO, focused on the privatisation of residential housing

2015 ■ Second takeover by ADLER Real Estate, adding c. 21,000 units to the Group■ WESTGRUND had a business model very similar to ADLER Real Estate, but with key focus in medium and large towns in North and East Germany

2016

■ Initial stake bought in August 2015■ In January 2017 ADLER Real Estate received € 422 m in connection with the successful tender of its 26% share in conwert Immobilien Invest to Vonovia■ Economic profit amounting to c. € 48 m ■ Additional c. € 10 m in FFO I and LTV ratio and WACD improvements

2017■ Successful disposal of the residential housing privatisation business ACCENTRO at a considerable premium to book■ ACCENTRO will have delivered a contribution to equity of more than €70m over a 3 year period

Track record and key milestones

Successful disposal of Berlin assets

1,174 units

Portfolioc. 2,400 units

Portfolioc. 8,500 units

ESTAVIS AGc. 2,100 units

Portfolioc. 4,300 units

Westgrund AG Takeover offerc. 21,000 units

Ajax portfolioc. 2,700 units

Acquisition of 24.79% of ATX listed conwert

Immobilien Invest SE29,896 units

ADLER Real Estateannounces a package of measures to sustainably boost earnings strength

Portfolioc. 700 units

Corporate Bond 14/19€ 50 m

Capital increase in kind€ 80 m

Tap 14/19Corporate Bond

€ 50 m

CapitalIncrease€ 21 m

Corporate Bond 15/20

€ 300 m

Mandatory Convertible Bond

(IFRS Equity)€ 175 m

Tap Corporate Bond 15/20

€ 50 m

Change in the Group’s

Management Board

Convertible Bond16/21

€ 137 m

Redemption Schuldscheindarlehen

€ 62 m

Redemption Schuldscheindarlehen

€ 30 m

2015

Redemption Margin Loan

€ 200 m

Portfolioc. 6,750 units

Tap 14/19Corporate Bond

€ 30 m

Additional 5m shares in

conwert aquired

Stake in conwert sold to Vonovia SE

Portfolio160 units

2014

Tap Corporate Bond 15/20

€ 150 m

Buyback ACCENTRO convertible

€ 12 m

Redemption Bond 14/19

€ 130 m

Portfolioc. 200 units

Sale of 82% stake in ACCENTRO

c. € 180 mPortfolioc. 2,500

units

Corporate Bond

17/21-24€ 800 m

Successful disposal of legacy Commercial assets

Brack Capital Propertiestakoever offerannoucement

€1.5bn1

Portfolio 1,906 units

Capital increase in kind

€ 190 m

20172016 2018

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J S O N D J F M A

2018■ Acquisition of 41% stake from main shareholder and tender offer for a total stake of up to 70% in Brack Capital Properties NV.■ c. €6m of synergies identified already at announcement, with further potential gains in the medium-to-long term financing synergies through enhanced overall credit profile

Expected sale of 70 % of non-core portfolio

above book value at € 115 m

Corporate Bond

18/23-26€ 800 m

Considerably improved financial metrics on the back of refinancing activities

2. Q1 2018 Financial performance

8

44.9

0

50

100

150

200

3M 6M 9M FY

14.2

0

20

40

60

3M 6M 9M FY

Net rental income2 (€ m)

€ m

FFO I (€ m)

Results Q1 2018 – highlights

€ m Q1 2018Q1 2017

adjusted1Q1 2017 reported

Q1 18 vs adjQ1 17 (%)

FY 2018 guidance2

Net rental income 44.9 42.0 43.9 6.9 210-220

Earnings from property lettings 39.0 29.3 30.8 33.1 -

Earnings from the sale of properties 0.9 0.1 4.6 -- -

EBIT 46.2 27.8 32.5 66.2 -

FFO I 14.2 7.9 n/a 79.7 68-73

€ m

9

▪ ADLER Real Estate has significantly improved its operational performance

Solid operational performance

Note: 1 Pro forma figures, as if ACCENTRO had already been disposed of in 2016 ; 2 Targets include Brack Capital Properties to be consolidated from April 2018 onwards

+ 6.9% + 79.7 %

Equity ratio (%) 2 LTV (%) Net debt / GAV2

Results Q1 2018 – highlights (cont´d)

€ m Q1 2018 FY 2017Q1 18 vsFY 17 (%)

FY 2018 guidance1

Investment properties (€ m) 3,054.2 3,018.5 1.2 -

EPRA NAV (€ m) 1,184.2 1,207.2 14.1 -

Equity ratio (%) 24.8 27.5 - 2.7PP -

LTV (excl. convertibles) (%) - Net debt over GAV 60.4 59.4 + 1.0 PP 55

WACD (%) 2.38 2.72 - 0.34 PP 2.5

WACD (%)

10

▪ ADLER Real Estate has reached and exceeded its financial targets

ADLER with improved financial profile

74.9 73.7

59.9 59.4 60.4

55,0%

60,0%

65,0%

70,0%

75,0%

2014 2015 2016 2017 Q1 18

4.24.0

3.7

2.72.4

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

2014 2015 2016 2017 Q1 18

22.025.3 26.6 27.5

24.8

0,0%

10,0%

20,0%

30,0%

2014 2015 2016 2017 Q1 18

Note: 1 Targets include Brack Capital Properties to be consolidated from April 2018 on 2 Equity rate and LTV affected temporarily prior to consolidation of Brack Capital Properties

4.54.03.53.02.52.0

75.0

70.0

65.0

60.0

55.0

30.0

20.0

10.0

0.0

■ Expenses from property lettings reduced

due to ongoing insourcing of services

■ Personnel expenses up due to insourcing of

property and facility management activities

■ Financial result already shows efforts to

reduce interest expenses. But also affected

by one-offs amounting to €37.4 m from

prepayment penalties and transaction costs

■ Of which €0.4 m current tax expense and

€4.0 m deferred taxes

Profit and loss statement Q1 2018

Comments

11

Operating results increased

Source: ADLER Real Estate informationNote: 1 2016 adjusted means based on the assumption that ACCENTRO had already been disposed of in 2016

Insourcing impacts structure of expenses

Balance sheet as of March 31, 2018

12

Reflecting the company´s successful activities of financial consolidation

■ Investment properties increased due to fair value

adjustments

■ Cash position strong due to bridge financing facility

for BCP acquisition which was only used after

completion in April

■ Slight decrease in equity due to negative net

consolidated result stemming from one-off financial

expenses amounting to € 37.4 million

■ Current liabilities increased by EUR 312.4 million

due to bridge financing facility

Comments

Source: ADLER Real Estate informationNote: 1 2016 adjusted means based on the assumption that ACCENTRO had already been disposed of in 2016

Sources of funding and debt schedule

€ m

0

200

400

600

800

1000

1200

2018 2019 2020 2021 2022 2023 2024 2025

Secured debt Corporate bonds Convertibles

13

Weighted average maturity of 4.7 years

No major refinancing risk over the next three years

ICR (x)

1.43

1.591.71

1,0x

1,2x

1,4x

1,6x

1,8x

2015 2016 2017 Q1 18

Sources of funding (% of total)

Note: 1 Unsecured

▪ With c.€1.1bn of unencumbered assets, ADLER Real Estate has one of the highest unencumberance asset ratios in the industry

36.8

66.7

5.0

Convertibles1

Corporate bonds1

Secured debt

Unencumberance ratio (%)

c. 40%

0%

10%

20%

30%

40%

50%

Pre Q3 17 Q1 2018

c. EUR 1.2bn GAV

As at April 30, 2018

As at April 30, 2018

2.06

1.8

1.6

1.4

1.2

1.0

Volum

e (€ m) Due date

Strike-

price (€)

No. of potential ADLER

shares from conversion (m)

Nominal

interest rate

Premature

redemption Rate, at which premature redemption is possible

Bonds

2015/20 300 April 8, 2020 - - 4.751 Anytime

▪ 104.75 until 8/4/2019 from capital increases, max. 35% of

total volume

▪ 100.0 from 8/4/2019

2017/21 500 December 6, 2021 - - 1,5 Anytime ▪ Under condition of make whole

2017/24 300 February 6, 2024 - - 2,1 Anytime ▪ Under condition of make whole

2018/23 500 April 27 , 2023 1.9 Anytime ▪ Under condition of make whole

2018/26 300 April 27, 2026 3.0 Anytime ▪ Under condition of make whole

Convertibles

2013/18 11.25December 10,

20183.41 3.3 6.0 No call

▪ At face value, if amount outstanding falls

below 30% of original amount

2016/21 138 June 29, 2021 12.54 11.0 2.5 From July 19, 2019▪ At face value, if trading at more than

130% of strike price for at least 20 out of 30 trading days

No major refinancing risk over the next three years

Source: ADLER Real EstateNote: 1 150 m Euro Tap in April 2017, yield to call 2.5%

Debt redemption modalities

14

Finalized internationalization process to drive operational metrics

3. Q1 2018 Operational performance

15

Operational organisation streamlined

16

▪ Considerable progress made in terms of vacancy reduction and rent increases, however somewhat delayed through internalization process

▪ Expected to accelerate significantly as integration is completed in early 2018, which will also lead to efficiency gains and margin improvements

Source: ADLER Real Estate information

■ Regional structure established through regional offices

■ Complete internalisation of Property and Facility Management

■ Shared Service Centre established for rent and operating cost administration

■ Single IT system throughout the Group

■ Capex and modernization program concerning 1,300 vacant residential units nearly finished

■ 2nd tranche of modernization program completed

■ Energy Service company founded

Integrated platform

■ ADLER Real Estate has invested in streamlining and integrating its operations platform

■ This resulted in significant savings since the beginning of the process

ADLER Real Estate

Region

Rental units

Emp

loye

es

Asset Management(ADLER Real Estate)

Property Management(ADLER Wohnen Service)

Facility Management(ADLER Gebaude Service)

North West Middle East

12,300 11,700 7,300 19,200

10

235

297

Growing property portfolio in attractive B locationsADLER Real Estate portfolio at a glance

17

31.03.2018 TotalCore

PortfolioNon-Core Portfolio

Rental units 50,236 46,175 4,061

Ø rent/sqm/monthin € (actual)

5.19 5.23 4.76

Occupancy rate in% 90.2 91.7 76.7

Total and Core portfolio

▪ Top 20 locations account for c. 60% of rental income

▪ Success in vacancy reduction and rental increase and considerable future upside potential

Net rental income footprint

As at March 31, 2018

Operational performances significantly improved on the back of internalization and streamlining activities

18

Note: 1 Total portfolio; 2 All figures like-for-like

ADLER Group Q1 2018 Q1 2017 Change2018

Guidance

Net rental income 44.9 42.0 6.9 25 %

Occupancy rate (%)1 90.2 89.4 0.8 PP 2 PP

Ø rent €/sqm/month (€)1 5.19 5.04 3.0 % 4.0 %

Core portfolio2 Q1 2018 Q1 2017 Change

Residential & Commercial

Units 46,175 44,780 1,395 (+3.1%)

Ø rent in €/sqm/month 5.23 5.07 € 0.16 (+3.2%)

Occupancy rate in % 91.7 90.6 1.1 pp

Progress in ADLER’s Real Estate core portfolioKey operational statistics

4,904,955,005,055,105,155,205,25

3M 6M 9M FY 3M 6M 9M FY 3M

Total portfolio Core portfolio

88,0%

89,0%

90,0%

91,0%

92,0%

93,0%

3M 6M 9M FY 3M 6M 9M FY 3M

Total portfolio Core portfolio

Internalisation of Property Mgmt. for first 15,000 units €5.23 91.7 %

Average rent Occupancy rate (%)

€/sqm/Month

2016 2017 2018 2016 2017 2018

5.20

5.10

5.00

4.90

94

92

90

88

+ 1.1 PP+ 3.2 %

Top 20 locations with vacancy reduction/rent increase

19

Location Federal state NRI in € m Units Area (sqm) Ø rent €/sqm/month Occupancy rate (%) Remarks

As at March 31, 2018 31/03/18 31/03/17Change against

31/03/17 in€/ %31/03/18 31/03/17

Change against

31/03/17 in PP

1 Wilhelmshaven Lower Saxony 22.5 6,903 407.2 4.99 4.77 0.22/4.5 91.5 91.9 0.05

2 Duisburg North Rhine-Westphalia 16.3 4,146 260.1 5.34 5.23 0.11/2.2 98.0 98.0 -0.04 Fluctuation

3 Cottbus Brandenburg 5.2 1,868 110.0 4.63 4.53 0.10/2.3 85.3 85.0 0.32

4 Halle (Saale) Saxony-Anhalt 4.8 1,717 97.4 4.71 4.60 0.11/2.4 86.4 86.9 -0.46 Renovation/change in PM

5 Berlin Berlin 7.6 1,698 111.6 5.80 5.61 0.18/3.3 98.2 98.1 0.04

6 Wolfsburg Lower Saxony 6.0 1,300 87.5 6.04 5.42 0.62/11.4 95.3 97.0 -1.63 Fluctuation bef. capex

7 Helmstedt Lower Saxony 4.2 1,219 70.7 5.15 4.99 0.16/3.2 95.5 94.2 1.30

8 Leipzig Saxony 3.6 1,167 70.9 4.55 4.38 0.17/4.0 94.1 93.4 0.70

9 Goettingen Lower Saxony 4.8 1,139 76.1 5.49 4.93 0.56/11.4 96.2 95.1 1.08

10 Borna Saxony 2.3 900 50.1 4.57 4.59 -0.02/-0.5 84.0 88.3 -4.30 Agents channged

11 Chemnitz Saxony 2.3 856 53.4 4.71 4.67 0.04/0.9 77.1 80.6 -3.49 Attics ban (fire protection)

12 Schoeningen Lower Saxony 2.4 846 50.2 5.07 4.88 0.19/3.8 80.1 78.5 1.61

13 Schwerin Mecklenburg-Pomerania 2.5 816 48.0 4.70 4.37 0.33/7.6 91.0 90.1 0.98

14 Aurich Lower Saxony 2.7 782 52.5 4.83 4.51 0.33/7.2 88.7 82.5 6.17

15 Dortmund North Rhine-Westphalia 3.0 776 51.7 4.91 4.77 0.14/3.0 97.2 96.6 0.57

16 Norden Lower Saxony 2.8 747 46.8 5.15 4.74 0.41/8.6 96.6 97.4 -0.74 Change in PM

17 Erfurt Thuringia 2.5 643 38,9 5.84 5.47 0.38/6.9 90.8 67.1 23.73

18 Fuerstenwalde Brandenburg 2.0 573 30.6 5.66 5.33 0.34/6.3 94.0 95.4 -1.46 Demografics

19 Ludwigshafen Rhineland-Palatinate 2.7 526 34.1 7.00 6.94 0.06/0.9 92.9 94.3 -1.41 Preparing for renovation

20 Duesseldorf North Rhine-Westphalia 2.5 465 28.0 7.89 7.54 0.35/4.7 95.6 97.4 -1.82 Preparing for renovation

Total 102.7 29.087 1,776.0 5.22 5.00 0.22/4.4 92.3 91.8 0.51

Portfolio details

▪ B-locations exceeding expected rental increases in all locations

Outperforming benchmarks

4. ADLER Real Estate on the capital markets

20

ADLER share performance – benchmarked

Key metric In €

EPRA NAV/share, basic/diluted (March 31, 2018) 17.77 / 16.61

Consensus 16.20

Actual trading (May 15, 2018) 15.18

Upside Potential 5- 15%

Company Recommendation1 Target (€) Date

Oddo BHF buy 15.91 October 2017

Berenberg buy 16.20 February 2018

Equinet (ESN) buy 15.70 January 2018

HSBC buy 19.00 January 2018

DZ Bank AG buy 16.40 November 2017

Consensus (median) 16.20

21

▪ ADLER Real Estate has consistently outperformed both peers and indices, and the broker community forecast an upside between 5% and 15% upside

Key broker recommendations

ADLER share versus peers (Jan 2015 = 100)

Key trading considerations

ADLER share versus indices (Jan 2015 = 100)

80

100

120

140

160

180

200

220

240

Jan. 15 Jan. 16 Jan. 17 Jan. 18

ADLER

SDAX

DAX

DIMAX

80

100

120

140

160

180

200

220

240

260

Jan. 15 Jan. 16 Jan. 17 Jan. 18

ADLER

ADO

DT. Wohnen

Vonovia

Grand City

LEG

TAG

100

300

500

700

900

Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18

€ m

Market cap and shareholder structure

Average trading volume per day Q1 2018: c. 90,000 shares

Shareholders (March 31, 2018) Holdings (%)

Mezzanine IX Investors S.A. Luxembourg 18.7

Wecken Cie, Basel 17.8

Uhlandstrasse Immobilien GmbH Berlin 5.3

Free float 53.7

Treasury shares 4.5

Total 100.0

Share information

Total voting rights 57,549,017

Of which acquired via buy back programme

2,581,915

Listed/Stock exchange Prime Standard/Frankfurt am Main

Indices:SDAX, CDAX, FTSE EPRA/NAREIT Global Real Estate Index, GPR General Index, DIMAX

22

20.00030.00040.00050.00060.00070.00080.00090.000

100.000

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

▪ Increased liquidity and trading activity

▪ Successful share buy back programme

Market cap tripledin 3 years

Key share information (March 31, 2018)ADLER Real Estate shareholders’ structure

Market cap

2017 2018

100

80

60

40

20

Average trading volume per day (000)

Acquisition of Brack Capital Properties on track

5. Update on BCP highlights

23

Timing and envisaged path to effective control of Brack Capital Properties

24

Timeline

16-Feb-2018

■ ADLER Real Estate signed a sale and purchase agreement with Teddy Sagi for 41.04% of the share capital of Brack Capital Properties N.V. for ILS 440 (c. € 99.52) per BCP share (“SPA”)

■ BCP's two Co-CEOs and a member of the senior management team have signed irrevocable commitments to tender their stake of, in aggregate, 5.62% into a special tender offer by ADLER Real Estate

■ ADLER Real Estate announces intention to launch special tender offer to all shareholders of BCP for up to 70% + 1 share stake

■ After consummation of the SPA and the special tender offer, ADLER Real Estate will hold at least 46.66% which will allow it to gain control over the majority of BCP’s board of directors

19-Feb-2018■ Launch of special tender offer to acquire a minimum of 5% and up to an additional 25.80% of the shares in BCP at ILS 440 per

share

1-Apr-2018■ Settlement of special tender offer and SPA (with ADLER Real Estate having the right under the regulations to prolong the

special tender offer to up to 60 days)

Apr/May-2018■ Envisaged replacement of 5 out of 8 board members with ADLER Real Estate nominees/representatives at regular or

extraordinary shareholders meeting, thereby achieving effective control

22-Mar-2018 ■ End of ordinary acceptance period

Mid- to End-Mar-2018

■ Merger control clearance

Source: ADLER Real Estate informationNote: ILS/EUR exchange rate of 4.4211

23- to 26-Mar-2018

■ Additional acceptance period

P

P

P

P

P

P

in process

Complementary footprint across Germany with significant enhancement of exposure to larger cities

25

Combined ADLER and BCP Overview of top cities (combined)

Source: ADLER and BCP informationNote: 1Including Bremerhaven;2 As per January 2018 presentation; 3 Other NRW assets of BCP

▪ Top 15 locations account for c. 50% of total portfolio on a combined basis in terms of units

▪ BCP‘s assets to enhance overall portfolio quality with c. 12k residential units in high growth markets such as Leipzig, Dortmund and Hannover

Saarland

Sachsen

Berlin

Nordrhein-Westfalen

Baden-Württemberg

Hessen

Sachsen-Anhalt

Thüringen

Brandenburg

Bayern

Niedersachsen

Rheinland-Pfalz

Schleswig-Holstein Mecklenburg-

Vorpommern

Saarbrücken

MainzWiesbaden Frankfurt

Dortmund

Düsseldorf

Duisburg

Potsdam

Nürnberg

Erfurt

Bremen

Dresden

Hamburg

Hannover

Kiel

Köln

Leipzig

Magdeburg

München

Rostock

Schwerin

Stuttgart

Essen

100%

100%

100%

Other regions1,083 units

ADLER BCP

Lower Saxony: 18,861 units

Bremen: 1,516 units

Schleswig-Holstein: 1,921 units

Berlin: 1,698 units

Brandenburg: 3,707 units

Saxony: 10,657 units

NRW: 15,299 units

Saxony-Anhalt: 3,749 units

Thuringia: 1,968 units

100%

Mecklenburg-Western-Pomerania: 1,510 units

Total combined rental units: [c. 62.000]

Location Federal State ADLER BCP1 Combined

As of December 2017 Units % total Units % total Units % total

1 Wilhelmshaven Lower Saxony 6,901 13.7 % - - 6,901 11.1%

2 Duisburg NRW 4,146 8.2 % 6442 5.4%2 4,790 7.7%

3 Leipzig Saxony 1,167 2.3 % 3,600 30.2% 4,767 7.7%

4Halle (Saale) and Magdeburg

Saxony-Anhalt 1,656 3.3 % 576 4.8% 2,232 3.6%

5 Cottbus Brandenburg 1,868 3.7 % - - 1,868 3.0%

6 Dormund NRW 776 1.5 % 951 8.0% 1,727 2.8%

7 Berlin Berlin 1,688 3.4 % - - 1,688 2.7%

8 Wolfsburg Lower Saxony 1,300 2.6 % - - 1,300 2.1%

9 Helmstedt Lower Saxony 1,219 2.4 % - - 1,219 2.0%

10 Hannover Lower Saxony 281 0.6 % 1,167 9.8% 1,167 2.3%

11 Goettingen Lower Saxony 1,139 2.3 % - - 1,139 1.8%

12 Kiel Schleswig-Holstein 109 0.2 % 1,013 8.5% 1,013 1.8%

13 Borna Saxony 900 1.8 % - - 900 1.4%

14 Chemnitz Saxony 862 1.7 % - - 862 1.4%

15 Bremen1 Bremen 128 0.3 % 1,083 9.1% 1,083 1.9%

Other 26,683 52.0 % 2,8793 24.2%3 29,044 46.7%

50,305 100.0 % 11,913 100.0% 62,218 100.0%

Lower Saxony

30%

NRW25%

Saxony17%

Saxony-Anhalt

6%

Thuringia3%

Other7%

Brandenburg6%

Schleswig-Holstein

3%

Berlin3%

Acquisition of Brack Capital Properties’ residential assets to strengthen all key performance indicators

26

Source: ADLER Real Estate, Brack Capital Properties informationNote: 1Income-producing residential assets and incl. entire development/inventory assets portfolio; 2 Core portfolio only; 3Based on income-producing residential assets only, excl. development/ inventory assets portfolio; 4 Based on last ADLER Real Estate guidance for 2017, i.e. not including “locked-in” upside from Schuldscheindarlehen refinancing in December 2017, sale of ACCENTRO and non-core residential asset disposal; 5 FFO residential estimate based on NRI split; 6 Pro forma for 100% of BCP; 7Rental EBITDA Margin over NRI; 8ICR set to stay > 2.0x even assuming BCP’s retail portfolio is disposed at GAV; 9 Pro forma December bond refinancing;

▪ Combination with approximately € 3.64 bn real estate assets and c. 58k units

P&

LP

ort

folio

As of FY 2017

Portfolio value (€) € 1.0 bn1 € 3.64 bn€ 2.642 bn

LTV (%) Net Debt / GAV 45.3 %59.4% =

Number of Units 11,913 58,09246,1792

In-place rent residential (€ / sqm) € 6.06 € 5.37€ 5.212

Occupancy residential (%) 95% 92.7%92.1%2

Fair value per sqm residential (€ / sqm) €1,176 €977€ 9282

Annualized total rental Income (€) c. 48.4 m3 c. 212.2 mc. 163.82m

EBITDA margin (%)7 c. 71% >60%59.3%

ICR (x) c. 3.6x > 1.8 x81.71x

Residential Residential

Annualized FFO I (€) c. 20 m5€ 40.5 m4 > 60 m4,6

Not including “locked-in” upside from

Schuldscheindarlehenrefinancing in December 2017, sale of ACCENTRO and non-core residential

asset disposal

Cost of debt 2.0%2.72%9

Key set of numbers

27Source: Company information, FactSetNote: 1Net debt over GAV, 2 Basic number of shares 67.8 m (= number of outstanding shares 57.5 m + potential conversion from mandatory convertible bond), 3 Including residential development business

▪ ADLER trades at an attractive FFO yield vs. the market

Y/E 31/12, EUR m

Net rental income 170.3 64.9 210 – 220

EBIT (incl. revaluation) 311.8 172.63 n/a

Adjusted EBITDA 128.4 63.83 n/a

Net profit (IFRS, reported) 142.6 119.03 n/a

Funds from operations (FFO I) 40.5 34.5 65m – 70m

EPS (IFRS, reported) (basic/ diluted) 1.91 / 1.78 13.7 n/a

FFO per share (basic/ diluted) 0.60 / 0.51 4.5 0.96 - 1.03 / 0.81 – 0.87

EPRA NAV per share (basic/ diluted) 17.80 / 16.64 89.2 n/a

FFO yield 4.5% / 3.8% 7.5% 7.2% – 7.8% / 6.1% - 6.6%

P/ EPRA NAV per share (diluted) -20.2% 12.0% n/a

Net debt 2,106.2 671.1 n/a

Loan-to-value (LTV)1 (incl./excl. CB) 63.6% / 59.4% 45.3% c. 55%

Implied rental yield 6.3% 5.9% n/a

Number of shares (basic/ diluted) 67.8 / 80.0 7.7 67.8 / 80.0

Market cap 764.2 772.0 n/a

Enterprise value 2,869.3 1,550.6 n/a

Trading volume (3-month ADTV) c.88.6k c. 4.8k n/a

Residential only

Taking ADLER Real Estate to the next level

6. 2018 Guidance

28

ADLER Real Estate guidance and outlook 2018

Key metrics 2015 2016Target 2017

FY 2017

Target 2017 vs 2016 (%)

2017 vs 2016 Target 2018 Considerations

Net rental income (€ m) (excl. ACCENTRO)

131.6(160.9) 167.5

(n/a) 172.5

(170.3) 177

+ 2.9 +5.8% 210 – 220Compensate sale of non-core byimproved operational performance andportfolio growth

Occupancy rate (%) 88.8 90.0 93.0 90.6 +3 PP +0.6 PP 94Internalisation of property/facility management,tenant app

Ø rent €/sqm/month (€) (Core)

4.935.00

(5.04)5.08

5.17 (5.21)

+ 1.6 +3.4% 5.40Internalisation of property/facilitymanagement

FFO I (€ m) 16.1 27.3 40 40.5 + 46.5 +48.3% 68 – 73Debt redemption leads to decrease in financial liabilities, cost cutting, improved operational performance

EPRA NAV (€ m) 879.5 1,069.9 1,2501,207

(>1,2502)+ 16.4 12.8% -

Further fair value adjustments, operational profits

LTV (excl. Convertibles) (%) 3

73.7 59.9 5559.4 /

(c. 57.32)- 4.9 PP -0.5 PP 55

Debt redemption, fair value adjustments

WACD (%) 3.99 3.69 3.45 2.72 - 0.73 PP -0.97 PP 2.4Redemption of higher yielding debt, refinancing

29

Note: 1 Core Portfolio; 2On a like for like basis, final year figure are effected by the make whole amount of the refinancing; 3 LTV calculated as Net Debt / GAV

ADLER Real Estate historical review and guidance

WACD guidance revised from

7. Appendix

30

ADLER Real Estate management team

31

Tomas DE VARGAS MACHUCAChairman of the Management Board (Co-CEO),Chairman of the Executive Committee

■ Has assumed the role as Co-CEO as at 22nd

December 2017 together with Maximilian Rienecker■ Responsible for the Company’s Capital Markets

operations since 2013■ Before joining ADLER, Tomas de Vargas Machuca

spent 15 years in the real estate business of which 10 years in banking

■ He was an Executive Director at UBS Investment Bank’s Real Estate Finance

■ He holds a B.A. in Economics and a M.A. in Management of International Firms from Bocconi University in Milan, Italy.

Sven-Christian FRANKCOO, Management Board, Executive Committee

■ COO since 9 June 2016 ■ Responsible for operational management (asset,

property and facility mgmt) and transaction■ Formerly held various leading positions in real estate

business, notably at Gestrim Deutschland AG and Deutsche Real Estate AG

■ Born 1965, attorney at law, mediator (DAA), real estate asset manager (IREBS)

Maximilian RIENECKERChairman of the Management Board (Co-CEO)

■ Has assumed the role as Co-CEO as at 22nd

December 2017 together with Tomas de Vargas Machuca

■ With ADLER since February 2017, when he was appointed Head of Corporate Finance and Strategy.

■ Maximilian Rienecker calls on more than 4 years of experience in the real estate industry after roles in Sales and Marketing at ING Investment Management in Hong Kong and Corporate Strategy and M&A at SBM Offshore in Monaco

Group governance organisational chart

32

Executive Committee

T. de Vargas Machuca(Co-CEO, Chairman Exc. Committee, Acting CFO)Maximilian Rienecker(Co-CEO, Digitalization, Corporate Finance)Sven-Christian Frank (COO, Project Development) Carsten Wolff Florian SittaPeer Hoffmann Head of Asset ManagementHead IR/PR

ADLER REAL ESTATE AG Supervisory Board

Dr. D. Hoffmann,T. Katzuba von Urbisch,

T. Schmid

Accounting, Controlling &

Treasury

Asset Management

Bank Financing Investor RelationsLegal

Corporate Governance

Compliance &Human Resources

Head of Asset Management

Maximilian Rienecker(Co-CEO)

Management Board

S. Frank(COO)

T. de Vargas Machuca(Co-CEO)

Project Development

A. Wolf S. FrankR.GrassC. Wolff P. HoffmannF. Sitta

Lean Governance structure

Strategy for the acquisition of Brack Capital Properties

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Significantly enhancing portfolio quality

Attractive development pipeline exposure to larger cities

(Düsseldorf, Aachen)High quality commercial portfolio

■ ADLER Real Estate is set to acquire a high quality portfolio of superior quality residential assets, exposed to A locations

■ Meaningful overlap with ADLER Real Estate’s in-place portfolio and potential for efficiency gains to result in tangible synergy creation

■ Increase exposure to key metropolitan areas

■ ADLER Real Estate to get access to an attractive residential development platform with pipeline in Düsseldorf and Aachen, strong metropolitan regions with healthy outlook and growth prospects

■ Expansion of residential development at right point in the cycle, on the back of the Riverside development project in Berlin

■ ADLER Real Estate will also acquire BCP land complexes in Düsseldorf which are expected to drive further value creation

Brack Capital Propertiesportfolio

■ As part of the transaction, ADLER Real Estate is also set to acquire BCP’s retail portfolio

■ The portfolio is characterized by long WALTs and a high occupancy rate, and spread across attractive regions

■ ADLER Real Estate believes pure-play residential players command a premium, and due to attractiveness of assets, a potential sale of the retail assets to free up capital will be explored

1 2 3

Significant enhancement of KPIs

✓ Transformational acquisition for ADLER Real Estate, in line with the Company’s corporate growth strategy of creating value through complementary acquisitions in strong markets

✓ Leverages upon ADLER Real Estate’s track record of successful corporate acquisitions, which will contribute to a swift, efficient and de-risked integration

✓ Clear intention to implement ADLER Real Estate’s entrepreneurial hands on management approach and active asset management

Strategic considerations

Attractive & de-risked growth driversReview of commercial assets sale in

line with residential pure-play strategy

Source: ADLER Real Estate information

ADLER Real Estate to become one of the largest German Real Estate companies

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33.1

18.9

1.9

9.5

6,4

3,0 4,3 3,3 3,0

-

8,5

1,0

1,0

0,5

3,9 3,4 3,31,8 0,5

1,4 1,1 1,0 0

5

10

15

20

€ bn

Ordered by GAV (€ bn)

Source: Latest company information

▪ Transformational transaction increasing portfolio quality, scale and credit metrics, raising the Company’s profile as top 5 largest residential company in Germany, larger than any pure commercial player in Germany

▪ Transaction to solidify ADLER Real Estate’s position as third largest truly pan-German residential platform (after Vonovia and Grand City Properties), positioning the Company for further consolidation

Top 5 residential company in Europe and larger than any pure commercial players in Germany

346.6 163.1 130.1 86.8

xx = k units

62.2 83.1 20.6 50.2 11.9

35

30

Commercial

Residential (incl. inventories and development)

c. 4.5

1.5

NM NM NM NM NM NM NMNM

c. 10.9

■ Portfolio quality significantly enhanced by adding c. 12k residential units in high growth markets such as Leipzig, Bremen, Kiel, NRW and Hannover

■ Strong improvement in all key performance indicators

■ Access to larger and growing cities across Germany

Portfolio enhancing

Scale

■ Transformational transaction increasing portfolio quality, scale and credit metrics, raising ADLER Real Estate’s profile as top 5 residential company in Europe, larger in size than any pure-play commercial players in Germany

■ Transaction to position ADLER Real Estate as 3rd largest truly pan-German residential platform (after Vonovia and Grand City Properties), ensuring that the Company remains an active player in the ongoing German consolidation story

Transaction highly accretive for ADLER Real Estate shareholders

35

FFO per share

■ Strong double-digit FFO accretion from day one

■ Additional FFO gains expected from both operational and financing synergies given complementarity of the portfolio and enhanced credit profile Short to medium term

EPRA NAV per share

■ Transaction to be EPRA NAV accretive in the first year of consolidation (also excl. goodwill), driven by embedded growth potential in Brack Capital Properties portfolio

■ Additional value uplift embedded in Brack Capital Properties development portfolio Short to medium term

Credit metrics

■ Transaction to improve ADLER Real Estate’s credit metrics in the short- to medium-term, accelerating ADLER Real Estate’s path to investment grade credit

Short to medium term

Source: ADLER Real Estate information

Densification in Goettingen20% more apartments through adding one storey

36

Before After Change in %

Units (#) 1,184 1,411 + 19

Area (sqm 000) 79,000 97,600 + 23

Average rent €/sqm/month 4.98 7.28 + 46

NRI (€ m) 4.4 8.9 + 100

Market value (€ m) 72.1 170-180 130-160

Investment (€ m) 74

Project details

■ Project status

■ Approval procedure ongoing

■ Public hearing in February

■ Approval expected in summer

Project Wasserstadt Mitte in central Berlin

37

Key data

Inner-city district in the area between Berlin Central Station and the Government District

Project Wasserstadt Mitte

Address Heidestraße, 10557 Berlin

Project

▪ 6 New build, primarily residential▪ 1 listed exisiting building (Kornversuchsspeicher)

with commercial usage▪ 1 landbank with planning permission for

commercial use (currently gas station)

Area c. 25,845 m²

Building right B-Plan 1-62 b set and published on 26.07.2016

Building permission Granted on 28.07.2016

Construction permitBeginning Q2 107 expected (hand-in of buildingapplication in 12/2016)

Expected rentable areac. 50,240 m² Residential and Commercial space incl.“Kornversuchsspeicher“ and planning permission for Office building with c. 10,600m² possible GFA

Residential units 498 apartments and 255 micro-apartments

Full floors 6 above ground floors and 1 basement

Parking spaces in underground car park c. 242 incl. 25 electronic parkings

Bicycle parkingc. 550 secured and rentable bicycle parkings in thebasement / c. 600 in the inner courtyards

Current utilisationUndeveloped except for the ‚Kornversuchsspeicher‘ (fully vacant) and one gas station

▪ Secured contract with general contractor

▪ Financing secured and in line with target to reduce LTV < 55%

▪ Strengthening of position in attractive Berlin market

Source: ADLER Real Estate informationNote: 1 Calculated on a yearly basis

Project Wasserstadt Mitte in central Berlin

38

Project information

The plot offers ideal links to the public transport system and road network

▪ Strategically located in the government district close to Berlin’s main station

▪ Total rentable space of c. 50,240 sqm and landbank with c. 10,600 sqm GFA

Source: ADLER Real Estate informationNote: 1 Calculated on a yearly basis

Disclaimer

This document and its contents are confidential and not meant for forwarding. transmission. publication. duplication. or disclosure (in whole or part) to other persons. Outside of Germany the distribution of this document may be restricted by applicable laws.This document does not constitute an offer to sell or an invitation to make an offer to buy or subscribe for securities.This document and the information contained therein may not be distributed in the United States of America. Canada. Australia. Japan or other jurisdictions. in which such offer. respectively. such invitation to make an offer to buy or subscribe for securities is not allowed. This document does not constitute an offer to sell securities in the United States. Securities. including the securities of ADLER Real Estate Aktiengesellschaft may not be sold or offered for sale within the United States or to or for the account of / in favour of US citizens (as defined in Regulation S under the U.S. Securities Act of 1933 in the current version (the "Securities Act") unless they are registered under the regulations of the Securities Act or unless they are subject to an exemption from registration.

This document includes 'forward-looking statements'. Forward-looking statements are all statements. which do not describe facts of the past. but containing the words "believe". "estimate". "expect". "anticipate". "assume". "plan". "intend". "could". and words of similar meaning. These forward-looking statements are subject to inherent risks and uncertainties since they relate to future events and are based on current assumptions and estimates of ADLER Real Estate Aktiengesellschaft. which might not occur at all or occur not as assumed. They therefore do not constitute a guarantee for the occurrence of future results or performances of ADLER Real Estate Aktiengesellschaft. The actual financial position and the actual results of ADLER Real Estate Aktiengesellschaft. as well as the overall economic development and the regulatory environment may differ materially from the expectations. which are assumed explicitly or implicitly in the forward-looking statements and do not comply to them. Therefore. investors are warned to base their investment decisions with respect to ADLER Real Estate Aktiengesellschaft on the forward-looking statements mentioned in this document.

39

Contact

ADLER Real Estate AG

Joachimsthaler Straße 34

10719 Berlin

www.adler-ag.com

Tel: +49 (0)30 39 80 18 10

E-mail info@adler-ag.com

Investor Relations

Dr. Rolf-Dieter Grass

Corporate Communication

Tel: +49 (0) 30 200 09 14 29

Mobile: +49 172 386 25 58

Email: r.grass@adler-ag.com

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