Deutsche Wohnen SE — Investor Presentation 2017

Aug 11, 2017

Deutsche Wohnen SE

» H1 2017 results

Conference Call, 11 August 2017

» Highlights H1 2017

Operating business continues to be strong:

• L-f-l rental growth of 3.2% for total portfolio - including the effects of the new Berlin rent index >4% for 2017 expected
• Re-letting rents have significantly outpaced in-place rents – reversionary potential incl. capex increased to EUR 230m
• EBITDA excl. disposals up 9.1% yoy
• FFO I up 11.1% yoy (6.8% on a per share basis) with FFO I margin up 3pp to 60.2% yoy
• Privatization business continues to deliver attractive gross margins of >30%; realized prices per sqm up 27% yoy
• Non-core disposals almost completed at prices significantly above book values

Portfolio valuation underpins ongoing market dynamics:

• EUR 0.9bn value uplift to EUR 17.1bn (+5.6%); Berlin portfolio now valued at EUR 1,882 per sqm (+8.3%) or c. 60% of replacement costs
• EPRA NAV per share +6% at EUR 31.42
• Widened spread between in-place and market rent multiples offer further potential for NAV growth

Capex programme to accelerate rental and value growth fully on track:

• Modernization expenses increased by 75% to EUR 75m yoy, another 90m of investments already committed
• Almost 50% of 30,000 capex stock in tender/assignment or execution phase

» Market and sector specific trends underpin the investment case

• Supply demand imbalance has significantly widened in recent years in Berlin with no indication of reversal of trend –new construction remains subdued with replacement cost (incl. land) of c. EUR 3,200/ sqm
• Latest developments indicate that political and legal framework may focus more on supporting new supply although in the medium term due to capacity constraints no significant impact expected

» Re-letting rents have outpaced in-place rents

• Despite strong regulation rent potential almost doubled since 2013 as new-letting rents have grown much faster than (regulated) in-place rents
• Total rent potential for entire portfolio (incl. effects of capex program) increased to c. EUR 230m; unlocking that rent potential will require c. EUR 1.5bn investments over next 5 years (capex program plus re-letting investments)
• Spread between in-place and market multiples significantly widened over the last 4.5 years, implying significant further value upside over the coming years
• Economic development in Berlin is backing rent potential and value upside with decrease in unemployment rate by c. 2pp and increase of GDP per capita by c. 8% since 2013

» Focused and concentrated portfolio with attractive reversionary potential

S ic lu tra te te g c s r	Re i de ia l t s n i ts un ( ) #	% f l to ta o ( d by me as ur e fa ir v lue ) a	1) In lac t -p e re n / / 3 0 0 6 2 0 1 7 ( E U R /sq /m h ) t m on	Ne le in t t t w- g re n / / 3 0 0 6 2 0 1 7 ( E U R /sq /m h ) t m on	2) Re ia l t p te t n o n / / 3 0 0 6 2 0 1 7 ( in % )	Va ca nc y / / 3 0 0 6 2 0 1 7 ( in % )
S ic d h tra te t g co re a n g ro w io re g ns	1 5 9, 0 1 9	9 9. 6 %	6. 2 5	7. 9 3	2 7 %	1. 9 %
Co + re	1 4 0, 1 2 2	9 2. 2 %	6. 3 3	7. 9 4	3 0 %	1. 9 %
Co re	1 8, 8 9 7	7. 4 %	5. 6 2	6. 4 8	1 5 %	2. 2 %
No n- co re	1, 5 3 3	0. 4 %	4. 8 9	5. 7 1	1 8 %	6. 4 %
To l ta	1 6 0, 5 5 2	1 0 0 %	6. 2 3	7. 9 2	2 7 %	2. 0 %
T he f Gr Be l in te re o ea r r	1 1 4, 4 9 2	7 7. 3 %	6. 2 5	8. 2 4	3 1 %	1. 9 %

Reversionary potential across entire portfolio almost 30%, for recently acquired Berlin portfolio even > 60%; also Core regions – in particular Hanover / Braunschweig –are delivering high rent uplifts as part of the re-letting process

To unlock the reversionary potential higher re-letting expenses of c. EUR 7,800 per apartment on average necessary, delivering an average yield on cost of c. 12%

Vacancy rate in Core⁺ portfolio increased by 10bps qoq, however 40bps capex driven vacancy

1) Contractually owed rent from rented apartments divided by rented area

2) Unrestricted residential units (letting portfolio); rent potential = new-letting rent compared to in-place rent (letting portfolio)

» Continued strong dynamics result in significant value uplift

Re io g ns	Re i de ia l t s n i ts un ( ) #	/ 3 0 ( E	F V / 0 6 2 0 1 7 ) U R m	F V / / 3 0 0 6 2 0 1 7 ( /s ) E U R q m	M l ip le t u in lac t -p e re n / / 3 0 0 6 2 0 1 7	M l ip le t u ke t t m ar re n / / 3 0 0 6 2 0 1 7	M l ip le t u in lac t -p e re n / / 3 1 1 2 2 0 1 6	Fa ir Va lu e / / 3 1 1 2 2 0 1 6 ( /s ) E U R q m
C + or e	1 4 0, 1 2 2		1 5, 7 3 2	1, 8 1 2	2 3. 8	1 7. 7	2 2. 7	1, 6 9 3
G Be l in te re a r r	1 1 4, 4 9 2		1 3, 1 9 5	1, 8 9 7	2 1 5.	1 8. 2	2 3. 7	1, 3 8 7
C or e	1 8, 8 9 7		1, 2 6 2	1, 0 5 3	1 5. 7	1 3. 6	1 4. 9	9 9 6
No C n- or e	5 5 1, 3		7 2	6 8 8	1 2. 9	1 0. 1	1 1. 8	7 1 6
To l ta	5 5 1 6 0, 2		1 7, 0 6 6	1, 7 0 9	2 2. 8	1 7. 3	5 2 1.	5 1, 8 0

Revaluation of EUR 886m or EUR 129 per sqm, leading to an in-place rent multiple expansion by 1.3x to 22.8x (based on annualized rents of c. EUR 750m) – no multiple expansion based on market rents

Core+ regions contributed c. EUR 800m (thereof c. EUR 760m Berlin) and Core regions c. EUR 70m (thereof c. EUR 50m Hanover/ Brunswick)

Sources for value uplift are improved performance (c. 25%) and yield compression (c. 75%)

Widened spread of c. 6x between in-place and market rent multiples offer further potential for NAV growth

» Berlin rent index delivered highest increase since inception

	2 0 1 3	2 0 1 5	2 0 1 7 e
Be l in b le (" M ie ie l ") h t t t t r re n a s p g e g ro w	6. 3 % +	5. 4 % +	9. 4 % +
To l r i d ia l u i in Be l in t t t a e s e n n s r	1 0 2, 6 0 0 c.	9 8, 0 0 0 c.	1 1 1, 0 0 0 c.
T he f u ic d i ( b j b le ) t t t t t t t re o nr e s r e n s su e c o re n a u	8 6, 2 0 0 c.	1) 8 4, 7 0 0 c.	1 0 2. 0 0 0 c.
f u No i i h inc t t t . o n s w re n re a s e	3 7, 5 0 0 c.	3 8, 3 0 0 c.	1) 3 9. 3 0 0 c.
S ha f Be l in i h ic h b j b le t t t t t re o r u n s w a re s u e c o re n a	4 4 % c.	4 5 % c.	3 9 % c.
Re inc fro b le in Be l in fo l io t t t t n re a s e s m re n a r p o r	5. 4 % +	5. 5 % +	7. 5 % +

The 9.4% rent table growth only partially reflects the dynamic market development - Deutsche Wohnen re-letting rents have even increased by c. 17% since 2015

Approximately 40% of Berlin stock is subject to rent table increases in 2017 - for another 15% rents can be increased in 2018 and for another 10% in 2019

Changes in the calculation method of the rent index will result in rent increases for applicable Deutsche Wohnen stock of c. 7.5%, i.e. some 2pp below the headline number

>4% like for like rental growth for total portfolio in 2017 expected, up to 5% for Berlin

1) Based on residential units that are relevant for rent table adjustments in 2017 only, another c. 25,000 units in Berlin are subject to Berlin rent table in 2017 and 2018

» Strong like-for-like development as of 30 June 2017

L i ke -fo l i ke r- 3 0 / 0 6 / 2 0 1 7	Re i de ia l t s n i ts un ( ) #	1) In lac t -p e re n 3 0 / 0 6 / 2 0 1 7 ( E U R /sq ) m	1) In lac t -p e re n 3 0 / 0 6 / 2 0 1 6 ( E U R /sq ) m	C ha ng e ( ) y- o- y	Va ca nc y 3 0 / 0 6 / 2 0 1 7 ( in % )	Va ca nc y 3 0 / 0 6 / 2 0 1 6 ( in % )	C ha ng e ( ) y- o- y
S ic d g h ion tra te t g co re an row re g s
+ Co re	1 3 2, 3 0 5	6. 3 0	6. 0 9	3. 4 %	1. 6 %	1. 4 %	0. 2 p p
Co re	1 8, 3 0 6	6 3 5.	4 5. 5	1. % 7	2. 0 %	2. 0 %	0. 0 p p
2) fo Le ing l io t t t p or	1 5 0, 6 1 1	6. 2 2	6. 0 2	3. 2 %	1. 6 %	1. 4 %	0. 2 p p
To l ta	1 5 4, 7 1 5	6. 2 0	6. 0 1	3. 2 %	1. 8 %	1. 6 %	0. 2 p p
T he f Gr Be l in te re o ea r r	1 0 8, 6 5 7	6. 2 2	6. 0 0	3. 6 %	1. 6 %	1. 4 %	0. 2 p p

We continue to see the strongest increase in like-for-like rental growth in Berlin (+3.6%)

Tenant turnover continues to be stable at 8% across entire portfolio, around 7% in Berlin

1) Contractually owed rent from rented apartments divided by rented area

2) Excluding non-core and disposal stock

» EUR 1bn Capex programme fully on track

	H 1 2	0 1 7	H 1 2	0 1 6
	E U R m	E U R / 1) sq m	E U R m	E U R / 1) sq m
Ma in te na nc e ( d hr h t ex p en se ou g & l ) p	4 9. 7	1 0. 0 5	4 3. 7	8. 9 0
Mo de iza io t rn n ( i l ize d ta ca p on ba lan he ) t ce s e	5. 7 2	1 5. 2 1	4 3. 2	8. 8 0
To ta l	1 2 4. 9	2 5. 2 7	8 6. 9	1 7. 7 0
Ca i l iza io ta t te p n ra	6 0. 2 %		4 9.	7 %

• Holistic investment approach focused on significant quality improvement - on average we spend c. EUR 630 per sqm
• EUR 75.2m was spent on modernization in H1 2017, an almost 75% increase yoy
• Another c. EUR 90m of investments already committed
• Almost 50% of 30,000 capex stock in tender/assignment or execution phase
• c. 20% of the capex measurements in Berlin are located in "protection areas" where local authorities need to approve certain measures
• So far this has not stalled the capex programme in any significant way
• In a worst case scenario investments of only up to EUR 100m might be affected
• Original planning assumed application of financial hardship clauses for up to 30% of capex stock –so far we are below that level
• Post investment program 90% of portfolio will be in a good to optimal quality range

1) Annualized figure, based on quarterly average area

» An example where capex, roof extensions and new construction is planned in one building complex located in a 'protection area'

	P l d i t a n n e a c o n s	N f u i t o. o n s	Ex d t p e c e I t t nv e s m e n / E U R s q m
C a p ex	Fa d in d l la ins la io ia l ly b lc ie d ip l t t t t c a e, w ow s, c e r u n, p a r ne w a o n s, s a n p e s, c e n ra ( ), he ing b hr d iza io t t t t t t t t a s y s e m a o o m m o e rn n va c a n a p a r m e n s e n ra nc e, , irc t s a a s e s	~2 5 0	1, 2 0 0
Ro f e io t o x e ns n	Ro f e io i h d io d l ig h b hr ina b le t t t t t t t o e ns ns wo o e n c o ns ru c n, ay a o o m s, su s a x w d in d ( ins d f p d in d ), f fo t t t t wo o e n w ow s e a o vc c o a e w ow s s e p a ra e ro o e rra c e r h f a t t e a c ro o p a r m e n	~5 0	2, 5 0 0
Ne io t t w c o ns ru c n	M ive io b ie fre i h lev fs ie t t t t t a s s c o ns ru c n, a rr r- e e a o rs g re e n ro o c o nv e n n w , , lo ia ( f ) t g g s o r ro o e rra c e s	~6 0	2, 6 0 0

Apart from capex and redensification measurements, focus on recreation of neighbourhood through renewal of outdoor installations (including covered bicycle stands) with a calm and green inner courtyard

Successful cooperation between local authorities and Deutsche Wohnen allows socially sustainable capex execution in a 'protection area' (Milieuschutzgebiet) in a hotspot of Berlin, Prenzlauer Berg

» New construction pipeline offers attractive additional growth

Zo d La d / Re de i f ica io t ne n ns n
ip io De t sc r n		io Lo t ca n	i Un ts
Ex is ing ion lan t tru t co ns c p		Be l in r	4 0 7
		Fr k fu t an r	1 8 0
Lo hu d le fo bu i l d ing r r w i t p er m	M i d te rm	Dr de es n	1, 0 6 0
In inc l n ia ta		1) Po da ts m	1, 4 0 0
ip l q p r a o s oc uo		Su m	3, 1 1 0
	Lo ng te rm	Fr k fu t an r	1, 6 0 0
	To l ta		4, 7 1 0

Un d La d zo ne n
De ip io t sc r n		Lo io t ca n	Un i ts
	M i d	Be l in r	6 0 0
No ion lan tru t co ns c p	te rm	Su m	6 0 0
Zo ing ica l ly ty n p ro ce ss p ire in ta ta re q u s c er p er ce n g e f r ic tr te o es	Lo ng te rm	Be l in r	6, 0 0 0
Un in im ing ta t ce r	d lan d lev ls e To l ta		6, 6 0 0
To l z d d d lan d ta on e an un zo ne			1 1, 3 1 0

Excluding roof extensions1) Zoning process already contractually secured

• Almost 50% of mid-term pipeline already in planning phase with construction work expected to start in 2018
• 30% of land close to water front
• Requirements for zoning process in terms of portion of rent restricted housing differ substantially between local governments
• e.g. Berlin 30% social quota vs. Dresden 5%, Potsdam 0%
• Redensification on existing land delivers highest return on investment as DW is capitalizing on its existing land bank
• Scarcity of available land plots may positively impact further redensification potential (option value)
• DW has successfully partnered with the City of Potsdam and the State of Brandenburg for a quality development in the Potsdam region

• 1,400 residential units

• EUR 350-400m investment volume
• Expected construction start in 2019 (phase I); total construction time of 4-5 years

» Strong earnings and cash contributions from letting

in E U R m	H 1 2 0 1 7	H 1 2 0 1 6
Re l in ta n co m e	3 6 6. 5	3 4 7. 8
No b le n- re co ve ra ex p en se s	( ) 5. 3	( ) 4. 4
Re l los ta n s	( ) 2. 5	( ) 3. 4
Ma in te na nc e	( ) 4 9. 7	( ) 4 3. 7
O he t rs	( ) 2. 7	( ) 4. 2
in fro i ia Ea Re de l Pr t ty rn g s m s n op er Ma t na g em en	3 0 6. 3	2 9 2. 1
Pe l, l a d a dm in is ive tra t rso nn e g en er a n e xp en se s	( 2 2. 6 )	( 1 9. 2 )
Ne Op in In ( N O I ) t t er a g co m e	2 8 3. 7	2 7 2. 9
N O I in ma rg	4 % 7 7.	8. % 7 5
N O I in E U R / s / m h t q m on	4. 8 7	4. 6 3

H1 2017 H1 2016

Cash interest expenses1) (47.7) (51.1)

283.7 272.9

H1 2017 delivered a high NOI margin despite increased maintenance spending (+12.9% on a per sqm basis)

236.0 221.8

1) Excluding interest expenses for nursing & assisted living

Cash flow from portfolio after cash interest

in EUR m

expenses

Net operating income (NOI)

» Disposals business remains opportunistic

• Continuation of selective privatizations to validate price points in micro locations
• Continue to achieve attractive gross margins despite > EUR 6bn portfolio revaluations since 2014
• Since 2014 realized prices increased by 63%

• No reliance on free cash flow generation to finance investment program

• Successful streamlining of portfolio in recent years

• 14,000 units disposed at attractive margins since 2014

• Non-Core disposals almost completed at prices significantly above book value - e.g. 1,100 units sold in Oberhausen (NRW) at 15% gross margin
• Share of Core+ increased to 92%

Too early in cycle to accelerate privatization pace to turn book gains into cash returns for shareholders

Opportunistic disposals at attractive prices possible to improve overall quality and further de-risk portfolio

» Disposal business continues to deliver attractive margins

D isp ls os a	Pr iva iza t	io t n	In i io l les t tu t s na sa		To l ta
wi th clo sin in g	H 1 2 0 1 7	H 1 2 0 1 6	H 1 2 0 1 7	H 1 2 0 1 6	H 1 2 0 1 7	H 1 2 0 1 6
No f u i ts . o n	3 0 5	7 4 9	1, 5 0 2	1, 5 0 5	1, 8 0 7	2, 2 5 4
Pr ds ( E U R ) oc ee m	4 0. 9	9 0. 0	1 1 0. 2	1 3 0. 9	1 1. 1 5	2 2 0. 9
Bo k v lu o a e	3 0. 7	6 5. 2	9 5. 3	1 1 3. 0	1 2 6. 0	1 7 8. 2
ice in Pr E U R p er s q m	1, 9 2 5	1, 5 1 8	9 9 2	1, 1 1 4	/a n	/a n
Ea in ( E U R ) rn g s m	6. 9	1 9. 7	1 3. 6	1 7. 0	2 0. 5	3 6. 7
in Gr os s m ar g	3 3 %	3 8 %	1 6 %	1 6 %	2 0 %	2 4 %
Ca f im ( ) h low t E U R s p ac m	3 5	8 0	1 0 8	1 2 5	1 4 3	2 0 5

Demand for the real estate asset class remains high; a total of 2,611 units were sold, of which 1,807 had transfer of ownership in the first 6 months of 2017

Realized prices increased 27% to EUR 1,925 per sqm in the privatization business; Berlin, achieved even average prices of almost EUR 2,300 / sqm (>30x in-place rent multipliers)

» Increasing FFO contribution from Nursing and Assisted Living

Op io ( in E U R ) t er a ns m	H 1 2 0 1 7	H 1 2 0 1 6	in E U R m	H 1 2 0 1 7	H 1 2 0 1 6
To l inc ta om e	4 9 5.	3 4. 6	Nu ing rs	3 5. 5	2 7. 4
To l e ta xp en se s	( 4 1. 8 )	( 3 1. 3 )	L iv ing	4. 3	3. 2
E B I T D A io t op er a ns	4. 1	3. 3	O he t r	6. 1	4. 0
E B I T D A in ma rg	8. 9 %	9. 5 %	in E U R m	H 1 2 0 1 7	H 1 2 0 1 6
Le as e e xp en se s	7. 5	6. 2
E B I T D A R	1 1. 6	9. 5	S f f ta	( ) 2 4. 2	( ) 1 7. 7
E B I T D A R in ma rg	2 3 % 5.	2 % 7. 5	Re / lea t n se O he t r	( ) 7. 4 ( ) 1 0. 2	( ) 6. 0 ( ) 7. 6
As ( in E U R ) ts se m	H 1 2 0 1 7	H 1 2 0 1 6	S l ig h in de l ine in ion l bu ine fro he t m t t ar g c op er a a s ss m
Le inc as e om e	2 0. 9	6. 0	in ion f 3 fa i l i ies in Ha te t t g ra o c f o fu 2 0 1 6. Ra l ly m o ne re	bu ire m rg ac q u fu fa b is he d r c	d in Q 4 i l i ly t cu rre n
To l e ta xp en se s	( 0. 3 )	( 0. 6 )	p- up ing lev l o t o ru nn a cc up an cy e	f o ly ~8 0 % n	ty
E B I T D A ts as se	2 0. 6	5. 4
Op io & As ( in E U R ) t ts er a ns se m	H 1 2 0 1 7	H 1 2 0 1 6
To l E B I T D A ta	2 4. 7	8. 7	Se in he l i da d g t o t t te co ns o ro u "E ing fro ing as ar n s m nu rs a n	f ina ia l s up nc d a is d l iv ing te ss	ta te ts me n "
In te t e re s xp en se s	( ) 2. 1	( ) 2. 1
i io F F O I c tr bu t on n	2 2. 6	6. 6	Inc lu de ts to t s p ay me n op er a	ion l p tn a ar er

The integration of the acquired portfolio is fully on track and in line with our assumptions

» Best in class EBITDA margin

in E U R m	H 1 2 0 1 7	H 1 2 0 1 6
Ea ing fro Re i de ia l Pr Ma t ty t rn s m s n op er na g em en	3 0 6. 3	2 9 2. 1
Ea ing fro D isp ls rn s m os a	2 0. 5	3 6. 7
Ea ing fro Nu ing d As is d L iv ing te rn s m rs a n s	2 4. 7	8. 7
Se i io in t tr bu t g m en co n n m ar g	5 5 3 1.	5 3 3 7.
Co te rp or a ex p en se s	( ) 3 9. 9	( ) 3 4. 6
O / he ing inc t t r op er a ex p en se s om e	( ) 0. 5	0. 3
E B I T D A	3 1 1. 1	3 0 3. 2
On f fs e- o	0. 1	0. 0
A d j. E B I T D A ( in l. d isp ls ) c os a	3 1 1. 2	3 0 3. 2
Ea ing fro D isp ls rn s m os a	( ) 2 0. 5	( ) 3 6. 7
A d j. E B I T D A ( l. d isp ls ) ex c os a	2 9 0. 7	2 6 6. 5

• Slightly higher cost ratio due to increased personnel expenses, primarily driven by new hiring to execute capex programme as well as increases of compensation for existing staff
• EBITDA margin increased by 2.7pp due to increased earnings (Berlin acquisition) and growth of nursing and assisted living business

1) Defined as adj. EBITDA divided by rental income

» Operational improvements and acquisitions drive FFO growth

in E U R m	H 1 2 0 1 7	H 1 2 0 1 6
E B I T D A ( d j d ) te a us	3 1 1. 1	3 0 3. 2
Ea ing fro D isp ls rn s m os a	( ) 2 0. 5	( ) 3 6. 7
Lo ion -te t t ng rm -re m un er a co m p on en 1) ( ) ha ba d s re se	1. 2	2. 0
A i lua ion t e ty t q u va	0. 7	0. 9
/ In inc te t e re s xp en se om e	( ) 4 9. 5	( ) 5 2. 7
Inc tax om e es	( 1 9. 2 )	( 1 4. 4 )
M ino i ies t r	( ) 3. 1	( ) 3. 6
F F O I	2 2 0. 8	1 9 8. 7
fro Ea ing D isp ls rn s m os a	2 0. 5	3 6. 7
F F O I I	2 4 1. 3	2 3 5. 4
2) F F O I p ha in E U R er s re	0. 6 3	0. 5 9
3) f s D i lu d n be ha in te um r o re s m	3 6 9. 0	3 7 0. 8
3)i D i lu d F F O I p ha E U R te er s re n	0. 6 0	0. 5 4
1,2 ) O in F F I I p ha E U R er s re	0. 6 9	0. 7 0

FFO I per share increased by 7% yoy

1) H1 2016 number adjusted; 2) Based on weighted average shares outstanding (H1 2017: 349.54m, H1 2016: 337.43m; H1 2015: 304.05m); 3) Based on weighted average shares assuming full conversion of "in the money" convertible bonds; 4) based on rental income

» EPRA NAV per share up 6% in H1 2017

in E U R m	3 0 / 0 6 / 2 0 1 7	3 1 / 1 2 / 2 0 1 6
Eq i ( be fo l l ing in ) ty tro te ts re no n- co n re s u	8, 8 0 9. 2	7, 9 6 5. 6
Fa ir v lue f de iva ive f ina ia l t a s o r nc ins tru ts me n	2 1. 2	4 7. 0
fe ( ) De d tax t rre es ne	2, 3 1 2. 0	2, 0 0 4. 4
E P R A N A V ( d i lu d ) te un	1 1, 1 4 2. 4	1 0, 0 1 7. 0
S ha d ing in ts tan re s o u m	3 5 4. 7	3 3 7. 5
E P R A N A V ha in E U R p er s re ( d i lu d ) te un	3 1. 4 2	2 9. 6 8
f fe f e f c E ise i b les ts t c o xe rc o on ve r	1) 6 2 5. 2	1) 9 9 2. 3
E P R A N A V ( d i lu d ) te	1 1, 7 6 7. 6	1 1, 0 0 9. 3
S ha d i lu d in te re s m	3 7 4. 1	3 7 0. 8
E P R A N A V ha in E U R ( d i lu d ) te p er s re	3 1. 4 6	2 9. 6 9

23.0229.68 31.42 31/12/2015 31/12/2016 31/06/2017EPRA NAV per share (undiluted)EPRA NAV per share (undiluted) in EUR+ 29%+6%Considering the EUR 262m dividend paid and the EUR 129m FV adjustments of the convertible bonds due tothe positive share price performance EPRA NAV wouldhave amounted to EUR 32.52 per share (+10%)

In 2017 only one "in the money" convertible bond considered which is due 2021, dilution risk significantly reduced due to successful tender offer for 2020 convertible bond

Next revaluation with end of 2017 financials envisaged

1) Current strike price of CB 2021: 20.5668 EUR corresponds to ~19.4m shares

» Conservative long term capital structure

Ra ing t	A- / A b le lo k 3; t t s a ou o
Ø i tu ty m a r	8. 0 y e a rs ~
% d b k d b t s e cu re a n e	6 7 %
% d d b t ns e cu re e u	3 3 %
Ø in t t t e re s c o s	1. 4 % (~ 8 % he d d ) 7 g e
L T V t t a rg e ra ng e	3 4 0 % 5-

• Low leverage, long maturities and strong rating
• Flexible financing approach to optimize financing costs –unencumbered assets increased to > EUR 3.5bn
• No significant maturities until and including 2019
• LTV at 36.9% as of Q2 2017 (-0.8pp vs year end)
• ICR (adjusted EBITDA excl. disposals / net cash interest) 5.9x (+0.8x yoy)
• Short term access to c. EUR 1bn liquidity through CP program and (unsecured) RCFs

1) Excluding commercial paper

» Like for like rental growth guidance increased

	2 0 1 6	2 0 1 7 l d o	2 0 1 7 N e w	d t u p a e	i iv M d a n r e r s
O ( ) F F I E U R m	3 8 4	4 2 5 ~	4 2 5 ~		O f i l d i i i t t t p e r a o n a p e r o r m a n c e a n r e c e n a c q s o n s u
D i i d d v e n p e r h ( E U R ) s a r e	0. 7 4	0. 7 8 ~	0. 7 8 ~		B d i f F F O I 6 5 % t t a s e o n p a y -o u r a o r o m d h d i t t t a n c u r r e n s a r e s o u s a n n g
L T V	3 % 7. 7	3 5- 4 0 % ( t t a r g e ) r a n g e	3 5- 4 0 % ( t t a r g e ) r a n g e		A i k i t t t m o e e p c u r r e n r a n g
L i k f l i k e- o r- e l h t t r e n a g r o w	2. 9 %	3. 5 %	4 % >		I B l i l f l l h t t 5 % t t n e r n w e e x p e c u p o r e n a g r o w

» Appendix

» Continued strong market dynamics result significant value uplift

Summary

• Revaluation of EUR 886m or EUR 129 per sqm, leading to a multiple expansion by 1.3x to 22.8x
• Core⁺ regions contribute c. EUR 800m, thereof c. EUR 760m in Berlin
• Also Core regions, in particular Hanover / Braunschweig, contributed with c. EUR 70m
• Sources for value uplift are improved performance (c. 25%) and yield compression (c. 75%)

K f i e y g u r e s	2 0 1 4	5 2 0 1	2 0 1 6	H 1 2 0 1 7
To l fa ir lu t a va e ( E U R )	b 9. 8 n	b 1 1. 7 n	b 1 5. 5 n	b 1 7. 1 n
Ar ( in ) e a m s q m	9. 2 2	9. 1 5	9. 4 9	9. 6 5
M l ip le t u ( ) t t cu rre n re n	1 5. 5 x	1 8. 1x	2 1. 5 x	2 2. 8 x
An l is d nu a e in- la t p c e re n ( E U R )	6 2 9 m	6 4 8 m	7 1 8 m	7 4 7m

1,0621,2811,5801,70931-Dec-2014 31-Dec-2015 31-Dec-2016 30-Jun-2017Fair value of residential portfolio (EUR/sqm)+21%+23%+8%

» Attractive spread between in-place and market rent multiples offer further potential for NAV growth

Re io g ns	Re i de ia l t s n i ts un ( ) #	F V / / 3 0 0 6 2 0 1 7 ( ) E U R m	F V / / 3 0 0 6 2 0 1 7 ( /s ) E U R q m	M l ip le t u in lac t -p e re n / / 3 0 0 6 2 0 1 7	M l ip le t u ke t t m ar re n / / 3 0 0 6 2 0 1 7	M l ip le t u in lac t -p e re n / / 3 1 1 2 2 0 1 6	Fa ir Va lu e / / 3 1 1 2 2 0 1 6 ( /s ) E U R q m
C + or e	1 4 0, 1 2 2	1 5, 7 3 3	1, 8 1 2	2 3. 8	1 7. 7	2 2. 7	1, 6 9 3
G Be l in te re a r r	1 1 4, 4 9 2	1 3, 1 9 5	1, 8 7 9	2 5. 1	1 8. 2	2 3. 7	1, 7 3 8
R h ine -M in a	9, 8 6 5	1, 1 1 2	1, 7 8 4	1 9. 8	1 5. 5	1 9. 9	1, 7 6 9
R h ine lan d	0 0 9 5,	4 0 3	1, 2 4 7	1 6. 3	1 4. 0	1 8 5.	1, 2 2 6
/ Ma he im nn Lu dw ig ha fe s n	4, 9 3 5	3 3 8	1, 0 6 5	1 4. 9	1 2. 5	1 5. 2	1, 0 5 1
Dr de es n	4, 4 4 0	4 4 1	1, 3 8 0	2 0. 5	1 7. 7	1 9. 1	1, 2 5 0
+ O he Co t r re	1, 3 8 1	2 4 3	2, 8 8 7	2 3. 7	1 9. 2	2 3. 5	2, 8 1 7
C or e	1 8, 8 9 7	1, 2 6 2	1, 0 5 3	1 5. 7	1 3. 6	1 4. 9	9 9 6
/ Ha Br ic k no ve r un sw	9, 1 3 0	6 4 5	1, 0 6 8	1 5. 6	1 2. 9	1 4. 5	9 8 3
K ie l / L ü be k c	4, 9 5 5	3 3 5	1, 1 3 0	1 6. 8	1 4. 4	1 5. 9	1, 0 6 6
Co i ies Ea t te re c s rn Ge rm an y	4, 8 1 2	2 8 2	9 4 7	1 4. 6	1 4. 4	1 4. 8	9 5 7
No C n- or e	1, 5 3 3	7 2	6 8 8	1 2. 9	1 0. 1	1 1. 8	7 1 6
To l ta	1 6 0, 5 5 2	1 7, 0 6 6	1, 7 0 9	2 2. 8	1 7. 3	2 1. 5	1, 5 8 0

» Strong like-for-like development as of 30 June 2017

L i ke -fo l i ke r- 3 0 / 0 6 / 2 0 1 7	Re i de ia l t s n i ts un ( ) #	2) In- lac t p e r en 3 0 / 0 6 / 2 0 1 7 ( E U R /sq ) m	2) In- lac t p e r en 3 0 / 0 6 / 2 0 1 6 ( E U R /sq ) m	C ha ng e ( ) y- o-y	Va ca nc y 3 0 / 0 6 / 2 0 1 7 ( in ) %	Va ca nc y 3 0 / 0 6 / 2 0 1 6 ( in ) %	C ha ng e ( ) y- o-y
1) Le ing fo l io t t t p or	5 1 0, 6 1 1	6. 2 2	6. 0 2	3. 2 %	1. 6 %	1. 4 %	0. 2p + p
+ Co re	1 3 2, 3 0 5	6. 3 0	6. 0 9	3. 4 %	1. 6 %	1. 4 %	0. 2p p +
Gr Be l in ter ea r	1 0 8, 6 7 5	6. 2 2	6. 0 0	3. 6 %	1. 6 %	1. 4 %	0. 2p + p
R h ine -M in a	8, 9 3 2	7. 6 4	7. 4 2	2. 9 %	1. 6 %	1. 3 %	0. 3p + p
R h ine lan d	4, 9 1 3	6. 1 9	6. 0 8	1. 9 %	0. 8 %	1. 2 %	0. 4p p -
Ma he im / Lu dw ig ha fen nn s	4, 7 8 0	5. 9 2	5. 7 2	3. 6 %	0. 7 %	0. 5 %	0. 3p + p
Dr de / Le ip ig es n z	3, 9 7 3	5. 3 8	5. 2 5	2. 5 %	2. 2 %	2. 4 %	0. 2p p -
So Co ig t ns e re+	9 4 2	1 0. 1 0	9. 9 7	1. 2 %	0. 6 %	1. 4 %	0. 8p p -
Co re	1 8, 3 0 6	5. 6 3	5. 5 4	1. 7 %	2. 0 %	2. 0 %	0. 0p p
/ Ha Br ic k no ve r un sw	9, 0 8 9	1 5. 7	6 2 5.	1. % 7	1. % 7	1. 8 %	0. 1p p -
K ie l / L ü be k c	4, 9 4 5	5. 5 7	5. 4 7	2. 1 %	2. 1 %	1. 6 %	0. 6p + p
Co i ies Ea Ge t ter re c s n rm an y	4, 2 7 2	5. 5 2	5. 4 4	2. 7 %	2. 7 %	2. 7 %	0. 0p p
To l ta	3) 1 5 4, 1 5 7	6. 2 0	6. 0 1	3. 2 %	1. 8 %	1. 6 %	0. 2p p

1) Excluding non-core and disposal stock; 2) Contractually owed rent from rented apartments divided by rented area; 3) Total l-f-l stock incl. Non-Core

» Selective bolt-on acquisitions of quality assets

Ov iew f a is i io in i de ia l s in 2 0 1 6 t t er v o cq u ns re s n ce
	Be l in r	Dr de es n	Le ip ig z	To l ta
# o f u i ts n	4, 0 3 9	1, 0 1 9	4 4 5	0 3 5, 5
Inv tm ts es en ( in E U R ) m	6 9 3	1 5 7	1 0 5	9 5 5
Inv tm t es en ( ) in E U R p er sq m	2, 4 1 8	2, 0 3 6	2, 4 0 7	2, 3 4 5
In- lac t p e re n ( ) h t p er sq m p er m on	6. 9 1	6. 6 1	6. 1 7	6. 7 7
In- lac l ip le t m t p e re n u	3 0	2 4	2 8	2 9
Ma ke l ip le t r t m t r en u	1 9	2 2	2 5	2 0

Overview of acquisitions in nursing and assisted living since 2016

	As ly ts se on	As & ts se Op ion t er a s	To l ta
As inv t tm ts se es en ( in E U R ) m	4 2 0	5 4	4 7 3
f fa i l i ies # o t c	2 8	3	3 1
f be ds # o	4, 1 3 2	4 9 2	4, 6 2 4
Nu ing rs	3, 7 2 1	3 3 5	4, 0 5 6
As is d te s l iv ing	4 1 1	1 5 7	6 8 5

Overall we have invested almost EUR 1.5 bn in the acquisition of quality assets since 2016 – the integration of the acquired portfolios is fully on track and in line with our assumptions

Based on June 2017

» Illustration of acquired assets

» New construction: First successful "PPP" in Potsdam serves as role model

	fa Ke ts y c
S ize	1, 4 0 0 i de ia l u i t ts • > re s n n i de ia l a 1 3 0, 0 0 0 s t q m re s n re a • ~
To l inv lum ta tm t v es en o e ( ) inc l. c fo lan d t os r	E U R 3 0- 4 0 0m 5 •
Ex d lev l te t p ec re n e	E U R i h i de ia l 9 t te t p er sq m w up s p o n • ,
Ex d c ion te tru t p ec on s c ta t s r	2 0 1 9 ( ha I ) • p se f c To l c ion im 4- 5 y ta tru t t on s c e o ea rs •
Ke lem f u ba ts y e en o r n lan ing tra t p n co n c	Gu d 1 3 0 k s i de ia l a te t • ar an e q m re s n re a fro ing m zo n p ro ce ss No ia l ho ing ire ts • so c us re q u me n In fra i de d by ic ip l i ies tru tu t • s c re p rov m un a D W i inv i h tm t to t w t 1 0 y co m m en es ea r • in im ho l d ing io d m um p er

Deutsche Wohnen has successfully partnered with the City of Potsdam and State of Brandenburg for a quality development of the biggest greenfield project in the region

» Bridge from adjusted EBITDA to profit

in E U R m	H 1 2 0 1 7	H 1 2 0 1 6
E B I T D A ( d j d ) te a us	3 1 1. 2	3 0 3. 2
De ia ion t p re c	( ) 3. 5	( ) 3. 0
A i lua ion t e ty t q va u	0. 7	0. 9
F ina ia l re l ( ) t t nc su ne	1) ( 6 1. 4 )	1) ( 8. 1 ) 5
E B T ( d j d ) te a us	2 4 7. 0	2 4 3. 0
Va lua ion ies t t p ro p er	8 8 9 5.	3 1. 3 7
On f fs e- o	2 2. 1	0. 0
S Va lua ion W A P d i b le bo ds t t an co nv er n	( ) 1 2 4. 7	( ) 9 5. 2
E B T	9 8 6. 1	8 9. 1 7
Cu t tax rre n es	( ) 2 0. 6	( ) 1 4. 4
De fe d tax rre es	( ) 2 9 3. 5	( ) 2 1 7. 5
Pr f i t o	6 2. 0 7	6 4 2 7.
Pr f i i bu b le he ha ho l de f t a t tr ta to t o s re rs o he t t p ar en co mp an y	6 4 7. 3	6 2 9. 3
2) Ea ing ha rn s p er s re	1. 8 5	1. 8 6

in E U R m	H 1 2 0 1 7	H 1 2 0 1 6
In te t e re s xp en se s	( ) 4 9. 8	( ) 5 3. 2
In % f ts o g ros s ren	1 4 % ~	1 5 % ~
No h in te t n- ca s re s ex p en se s	( ) 1 1. 9	( ) 5. 5
In inc te t re s om e	0. 3	0. 6
( ) F in ia l l t t an c re su ne	( ) 6 1. 4	( ) 5 8. 1

Mainly one-off transaction and financing costs fromloan cancellations as well as from CB 2017

Thereof EUR 4.4m from valuation of derivatives and EUR (129.1) m from convertible bonds

1) Adjusted for Valuation of SWAPs and convertible bonds; 2) Based on weighted average shares outstanding (H1-17: 349.54m; H1-16: 337.43m)

» Summary balance sheet

A t s s e s			E i d L i b i l i i t t q u y a n a e s
in E U R m	/ / 3 0 0 6 2 0 1 7	/ / 3 1 1 2 2 0 1 6	in E U R m	/ / 3 0 0 6 2 0 1 7	/ / 3 1 1 2 2 0 1 6
Inv ies tm t p t es en ro p er	1 7, 7 6 8. 2	1 6, 0 0 5. 1	To l e i ta ty q u	9, 1 1 1. 8	8, 2 3 4. 0
O he t t ts r n on -c ur re n as se	1 4 7. 9	1 0 8. 6	F ina ia l l ia b i l i ies t nc	4, 6 7 0. 7	4, 6 0 0. 0
De fe d tax ts rre as se	0. 7	0. 7	Co i b les t nv er	1, 0 2. 4 5	1, 0 4 1 5.
No t ts n cu rre n as se	1 9 1 6. 8 7,	1 6, 1 1 4. 4	Bo ds n	8 4 6. 5	7 3 2. 3
La d a d bu i l d ing he l d fo le n n s r sa	3 2 2. 4	3 8 1. 5	Ta l ia b i l i ies t x	4 1. 6	4 8. 3
Tr de iva b les a re ce	3 0. 6	1 6. 4	De fe d l ia b i l i ies tax t rre	1, 9 8 3. 2	1, 6 8 7. 1
O he t t ts r c ur re n as se	1 1 4. 6	9. 1 7	De iva ive t r s	2 3. 1	4 7. 0
Ca h d h e iva len ts s an ca s q u	3 2 3. 1	1 9 2. 2	O he l ia b i l i ies t t r	5 2 8. 2	3 8 9. 8
Cu t ts rre n as se	7 9 0. 7	6 6 9. 2	ia i i ies To ta l l b l t	9, 5 9 5. 7	8, 5 4 9. 6
To l a ta ts ss e	5 1 8, 7 0 7.	1 6, 7 8 3. 6	To l e i d l ia b i l i ies ta ty t q u an	1 8, 7 0 7. 5	1 6, 7 8 3. 6

Investment properties represent ~95% of total asset s

Strong balance sheet structure offering comfort throughout market cycles

» Disclaimer

This presentation contains forward-looking statements including assumptions, opinions and views of Deutsche Wohnen or quoted from third party sources. Various known and unknown risks, uncertainties and other factors could cause actual results, financial positions, the development or the performance of Deutsche Wohnen to differ materially from the estimations expressed or implied herein. Deutsche Wohnen does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, none of Deutsche Wohnen AG or any of its affiliates (including subsidiary undertakings) or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Deutsche Wohnen 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.

Deutsche Wohnen SE

Registered OfficePfaffenwiese 30065929 Frankfurt/ Main Berlin OfficeMecklenburgische Straße 5714197 BerlinPhone: +49 30 897 86 5413Fax: +49 30 897 86 5419

© 2017 Deutsche Wohnen SE