Deutsche Wohnen SE — M&A Activity 2017

Mar 6, 2017

Deutsche Wohnen AG

» Portfolio acquisition of c. 4,200 units in Berlin 6 March 2017

» Acquisition of high quality portfolio in Berlin consisting of c. 3,900 residential units with focus on central locations

Majority of portfolio in central Berlin

KPIs
Units	4,166
Thereof residential units	3,893
Area (incl. commercial units)	274,000 sqm
Acquisition price	EUR 655m
Implied acquisition price per sqm	EUR 2,390
In-place rent multiple	~30x
Market rent multiple	~20x
Vacancy rate	~7%

Mainly popular "Altbau(1)" located in hot spot and growth areas in Berlin

1) "Altbau" consists of pre-war buildings

» Attractive pricing in light of rent upside and vacancy potential

Significant upside potential
	In-place rent		Market rent
Net rent p.a.	EUR 22m		EUR 32m1)
Residential net rent per sqm	EUR 6.95		EUR >10
Implied net rent multiple	~30x		~20x1)
Vacancy rate	~7%		<2%

• High quality portfolio of predominantly "Altbau"2) buildings entirely located in Berlin with limited incremental investment needs
• Significant rent upside potential of ~45%

Vacancy of ~7% (50% capex driven) provides near-term upside potential (Berlin average vacancy <2%)

• Initial EBITDA contribution of c. EUR 15 million

• Closing expected for Q2 2017

• Aim to significantly increase NOI margin (from 67% to more than 80%) mainly through vacancy reduction, rent and property management

• Financing of acquisition from proceeds of recent successful placement of convertible bonds and new shares

» Mainly consisting of attractive "Altbau" properties

Portfolio exhibition

» 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 AG

Registered Office Pfaffenwiese 300 65929 Frankfurt/Main Berlin Office Mecklenburgische Straße 57 14197 Berlin Phone: +49 30 897 86 5413 Fax: +49 30 897 86 5409

© 2017 Deutsche Wohnen AG