LEG Immobilien SE Accelerating growth

1 December 2021 ²⁰²¹

LEG Immobilien SE

Disclaimer

While LEG Immobilien SE ("The Company") has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature and is intended to provide an introduction to, and an overview of the Company's business. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external sources, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate.

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Accelerating growth

Significant push for LEG's market positioning

15,400 units acquired and clear road to majority for BCP secured

Two building blocks improve the market position and offer growth potential

Portfolio acquisition 1 2

C. 15,400 units acquired from Adler S.A.
Total acquisition price for 100% of the asset holding companies of €1,291m (19.8x net cold rent)
Focus on affordable living with significant top- and bottomline potential
FFO I contribution in year 1 of €29m, expected to grow by over 30% within 5 years
Accretive deal, positive on FFO I and NTA basis
Perfect fit securing attractive portfolio with 12,100 units in
- LEG target markets and offering new entry opportunities

BCP N.V. majority secured: 31% direct + call option

24.1% directly acquired shares from institutional minorities
6.8% directly acquired shares from Adler S.A
63.0% secured via a call option from Adler S.A.
Total acquisition price for the shares of €328m (-4% to NTA1 )
Call option 1 January 30 September 2022, strike price €157 per share (+10% to NTA1 )
Significant broadening of footprint 20% of units now outside NRW
All debt-financing bridge financing secured at attractive terms. Take out via debt and disposals
Guidance 2022 raised to FFO I €475m €490m (prev. €450m €460m)
€5m contribution to foundation "Dein Zuhause hilft" for social work within new locations

Accelerating growth

Major portfolio acquisition in target markets outside NRW

C. 15,400 units mainly in North-Western Germany

1 Non-core assets: Mainly Mecklenburg-West Pomerania, Thuringia, Saxony 2 On comparable basis, i.e. similar market mix 3 After financing costs

Background & rationale

C. 15,400 units acquisition of 100% of asset holding companies
Acquisition price of €1,291m
Net cold rent multiple of c. 19.8x based on in-place rent, i.e. superior yield of 5.1% to LEG portfolio (4.4% as of Q3 21)
Annualised FFO I contribution of c. €29m in 20223 over 30% growth until 2026
Transfer of units as at year end 2021
Focus on affordable living with actual average rents of 5.93€/sqm, 3% subsidised units
Strengthening of our presence outside NRW in Lower Saxony and Schleswig-Holstein
C.1,300 units (8% of portfolio) mainly in Eastern Germany as non-core units and up for disposal within 12 months

Locations	Units	of total	Rent €/sqm	Market
Wilhelmshaven	6,800	44%	5.70	Higher yielding
Wolfsburg	1,300	8%	6.66	High-growth
Göttingen	1,100	7%	5.85	Stable
Top15	12,600	82%
Non-core	1,300	8%
Total	15,400	100%	5.93

Wilhelmshaven with c. 6,800 units to become a major LEG location

Similar structure as our higher yielding markets – further potential via active management

Wilhelmshaven to be among top3 LEG higher-yielding markets

Market segment	Location	LEG units	LEG rent €/sqm	EPRA -Vacancy
Higher-Yielding	Recklinghausen	9,018	5.47	2.3%
	Gelsenkirchen	7,260	5.71	7.5%4
	Wilhelmshaven	6,831	5.70	7.2%
	Duisburg	6,315	6.02	2.8%

Similar to existing major LEG markets

Market characteristics	Wilhelmshaven	Duisburg	Gelsenkirchen
Purchasing power per capita	20,635 €	19,582 €	18,817 €
Unemployment rate	10.3%	11.9%	14.3%
Average age of population	years 46	44 years	44 years
Share population above 65 years	26.0%	20.4%	20.7%
CAGR in-place rents last 5 years	3.9% p.a.	3.5% p.a.	2.6% p.a.
Vacancy	6.1%	4.3%	4.7%

Wilhelmshaven

LEG actively managing vacancy in its higher yielding markets

Sources: 1. 21stRE – Real Estate Location Analytics (RELAS) 2. VALUE AG market data base, asking rents Q3 2016 – Q3 2021 3. CBRE/Empirica vacancy index 2020 (data as of 2019) 4. Gelsenkirchen vacancy reduced by almost 5%-pts since Q1 2017

Remarkable growth and value potential

Significant modernisation projects in two of the biggest and most attractive locations

Wolfsburg Göttingen

Start 2020

Completion 2026

Highlights

Holistic modernisation plan including comprehensive energetic refurbishment (KfW55-85) for ~2,200 units (14% of portfolio acquired)
Increase in number of units by 475 units via redensification and heightening of buildings
~3,500 new balconies, ~375 new parkings
Total rentable space +24% (36k sqm)
80 new subsidised units
Two new kindergartens and playgrounds to revitalize districts
LEG foundation "Dein Zuhause hilft" ready to support and implement social initiatives
Planned completion by 2026
Total investments c.€280m, driver for increased investment guidance (representing c. €2.75/sqm of investments in 2022)

BCP N.V. road to majority

BCP: A clear road to majority in an attractive asset A perfect fit to LEG

Transaction summary

Perfect fit securing attractive portfolio with 12,100 units in LEG target markets and offering new entry opportunities
24.1% shares directly acquired from mostly institutional minorities
6.8% shares directly acquired from Adler S.A.
63.0% secured via a call option from Adler S.A.
Total acquisition price for shares of €328m (-4% to NTA)
Call option 1 January 2022 until 30 September 2022, strike price €157 per share (+10% to NTA)

Background

Gross asset value implies 21.9x net cold rent
LTV 36.6%
Deal follows LEG's strategy to buy directly into attractive assets
Accounted under at-equity method while call option not being exercised

Source: BCP company presentation H1 2021 1 annualized H1 21 rental income

Strong balance sheet provides financing flexibility

Key parameter of the transaction Sources & uses ¹

Total	€ 1.716bn
31%-stake BCP:	€ 328m
Option on 63.0% stake in BCP:	€ 8m
Portfolio acquisition:	€ 1,380m
Acquisition price	€ 1,291m
Other	€ c.88m

LTV development & rolling Net Debt/EBITDA2

Comments

Total purchase price for combined portfolio and BCP stake of € 1.716bn
Currently full debt financing planned within LTV target range assuming non-core asset disposals and moderate revaluation gains
Refinancing of bridge starting from beginning 2022 depending on market conditions

1) rounded figures; 2) 12 month quarterly average net debt to adjusted EBITDA (LTM), light-blue: increasing LTV, dark-blue: decreasing LTV; 3) 1,300 non-core units from portfolio acquisition plus annual disposal program