THREE MONTH

FINANCIAL RESULTS 2016

MAY 19, 2016

01OVERVIEW &

INVESTMENT

HIGHLIGHTS

Key portfolio metrics (end of Q1 2016)Investment highlights

2

Overview ADO –the pure-play Berlin residential specialist

…a focussed residential portfolio¹…

Residential

87%

Commercial²

11%

Other

2%

Current hold

portfolio 97.5%

Long term

potential 10.7%

Mid term

potential 10.8%

Privatisation

portfolio 2.5%

Buildings 311

Residential Units 15,493

Commercial Units 891

Total Units 16,384

Lettable area (k sqm) 1,091

Property value € 1.6bn

EPRA NAV* € 849m

Current cash position* € 90m

LTV* 45.6%

In-place rent € 78.5m

*Excluding the effect of the €98m additional net-equity

raised on April 21, 2016 by issuing 3.5 million new

shares

1 Based on in-place rent total portfolio

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

3 Based on total units

…with potential for privatization³

Berlin residential pure play with a € 1.6bn quality portfolio

Efficient, fully integrated and scalable platform with clear strategy

to create value. This unique platform allows management to have

in-depth knowledge of the Berlin market from almost a decade of

local presence

Exceptional rental growth demonstrated with 6.5% average annual

like-for-like growth over the past four years (2012-2015) supported

by quality portfolio, smart targeted capex investments and active

management

Conservative financial strategy with c. 45-50% target LTV, c. 5.3

years weighted average maturity, with low (2.3%) average cost of

debt (which is expected to fall below 2% during the year) and

marginal cost of debt of 1.4% supporting FFO profile

2

3

1

4

Our properties…

Schildhornstr.

SteglitzSchichauweg

Tempelhof

Sommerstr.

Reinickendorf

Highlights Q1

3

Financials Q1 2016 2015

Income from rental activities € 20.4m € 65.8m

EBITDA from rental activities € 14.4m € 48.5m

EBITDA Margin 75% 78%

FFO1 € 9.4m € 30.7m

FFO1 per share € 0.27 € 1.04

EPRA NAV per share € 24.26 € 24.10

Proforma EPRA NAV per share1 € 24.61 -

LTV2 45.6% 43.6%

Proforma LTV1 2 39.3% -

Operations Q1 2016 2015

Rental growth l-f-l (LTM) 5.9% 7.3%

Vacancy rate 3.8% 4.0%

Privatization - avg. sales price /sqm € 2,964 € 2,801

Total maintenance & CAPEX /sqm € 28.8 € 20.8

• Operational performance on track with Income and

EBITDA from rental activities benefitting significantly

from portfolio growth

• Like-for-like rental growth of 5.9% confirms our target

of 5% like-for-like rental growth for 2016

• Vacancy rate improved to 3.8%

• EBITDA-margin is, as usual for Q1, negatively impacted

by the seasonal high maintenance level of the winter

season. We expect EBITDA-margin and total

maintenance & CAPEX to come back to similar levels as

for the full year 2015

• Privatization program continued strong with an avg.

sale price of € 2,964 per sqm, well above the avg.

portfolio value for Central Locations of € 1,700 per sqm

• On April 21, 2016 we raised net proceeds of € 98m by

issuing 3.5m new shares. The shares where place at

€28.50 representing a discount of only 1.7% compared

to the previous closing price. The proceeds will be used

for further growth1 Including the effect of the capital increase after the end of the quarter

2 Excl. new acquisitions signed after the end of the quarter

02ADO

PORTFOLIO

AND

STRATEGY

Key metrics residential portfolio (end of Q1 2016)1

ADO portfolio focused on Central Locations

5

Central Locations4 North East South West Total

Property value (in mill. €) 746 266 153 106 288 1,559

Number of units 6,196 3,155 1,520 823 3,799 15,493

Avg. Rent in € / sqm / month 6.26 5.53 6.36 6.08 5.30 5.86

Avg. New letting rent in € / sqm / month2 9.39 6.22 9.323 8.24 5.96 7.65

Occupancy (physical) 96.6% 97.4% 97.6% 97.8% 93.9% 96.2%

ADO has a high-quality, centrally located Berlin portfolio

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

1 All values except the property value are for the residential portfolio only

2 Based on the last three months

3 Positively impacted by the high turn over and high rent level of the Löwenberger Straße project. Normalized for this effect the avg. new letting rent East would be € 8.06 / sqm

4 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-

KöpenickTempelhof-

Schöneberg

Friedrichshain-Kreuzberg

Central

Neukölln

Building locations:

Central Locations4

North

East

South

West

55%

5%

12% 12% 10%5%

Year of construction

1991-

2002

1973-

1990

1965-

1972

1950-

1964

< 1918 1919-

1949

26%29%

19%22%

3%1%

>186

# of floors

< 4 12-185 7-11

% of buildings % of buildings

…mostly low rise buildings

6

Sizeable acquisition with a strong fit to the existing ADO portfolio

• Portfolio and assets located partly in inner city location like

Charlottenburg, Wedding and Neukölln and partly in the outskirts

with Marzahn and Spandau

• Mixed property age with “Altbau” buildings from the turn of the

century and new buildings from the 90’s

• Substantial rent upside for new lettings with approx. 40%

reversionary potential to market rents in the inner-city assets and

20% in the outskirts

• New financing expected of 50%, to maintain the company LTV

strategy with an average interest rate of up to 1.5%

• Expected annual FFO contribution of ca. € 3.8m in the first year with

overall like-for-like rental growth expected of at least 5%

Soldiner Str. 37

Wedding

Key metrics

Acquisition cost1 €116m

€1,535 / sqm

Residential / commercial area sqm 74,913 /8,105

Number of residential/commercial units 978 / 82

Rental income p.a. €5.4m

Avg. rent / sqm / month – current € 5.68

Avg. new lettings rent / sqm / month € 6.92

Vacancy residential/commercial 2% / 15%

Estimated FFO1 €3.8m

New deals of 1,060 units in Berlin, partly taken over in Q1 and partly in Q2, fitting our portfolio with attractive upside

N

W E

S

Spandau

Reinickendorf

Charlottenburg

-Wilmersdorf

Steglitz-

Zehlendorf

Mitte

Pankow

Lichten-

berg

Marzahn-

Hellersdorf

Treptow-

Köpenick

NeuköllnTempelhof-

Schöneberg

Friedrichshain-Kreuzberg

Central

Hakenfelder Str.9

Spandau

Sonnenallee 77

Neukölln

Taken over in Q1 2016

Expected take over Q2 2016

1 Including € 56m deals to be taken over in Q2

1.8% 2.4% 3.1%

0.8% 0.6%

1.5% 1.0%

1.6%

2.7% 2.6%

2.5%1.3%

3.3%

3.8%2.7%

5.8%

4.7%

8.0%7.3%

5.9%

2012 2013 2014 2015 Q1 16

Residential like-for-like rental growth1 (%) Q1 growth of 5.9% in line with our average of 6.5% p.a. like-for-like

rental growth over the past four years and our 2016 target

Exceptional rental growth continues at 5.9% on track for the 2016 target of at least 5%

Growth beyond rent table through targeted capex

investments, improving the quality and rent level of the

portfolio

1

High regular rent increases implemented up to the

legal limits. Effects of the 2015 Mietspiegel will drive

growth over the year 2016

Rent increases to market levels through tenant

fluctuation without capex & reducing portfolio vacancy

by active marketing with location specific approach

2

3

Regular rent increases

From fluctuation w/o capex and vacancy reduction

From modernization capex

Maintenance & capex (€ / sqm)

2014 2015Avg.

2012-2015

Q1 2016

Maintenance 6.5 6.3 5.7 8.7

Capitalized

maintenance7.6 4.6 5.6 4.0

Modernization capex 13.2 9.9 10.0 16.1

Total 27.2 20.8 21.3 28.8

1 Includes vacancy changes

Avg.:

6.5%

Smart targeted CAPEX investments combined with active asset management are the key drivers of our business model

7

• Maintenance level for Q1 was higher due to the winter

season in combination with the high proportion of newly

acquired units during the last 12 months

• Modernization CAPEX was exceptional high due to the high

rate of projects finalized in Q1 (more than 300 units of which

200 units are out of the Carlos portfolio)

• We expect maintenance and CAPEX levels over the year to

come back to our long term averages

Vacancy reduction by 0.2% in Q1 2016 to be followed by further improvements

• Overall reduction in vacancy by 0.2% in the first quarter

• High completion rate of work results in a decrease of vacancy

due to construction by 1.0% and a corresponding increase in

units available for marketing of 0.9%. More than 300 units have

been completed during Q1 of which 200 units are out of the

Carlos portfolio

• Positive start of Q2 indicates to a further significant reduction of

the vacancy rate in the next quarters out of the units which are

now available for marketing

Vacancy split¹

1 Based on physical vacancy, residential only. Commercial vacancy rate Q1 16 4.8% vs Q4 15 5.5%

1.9%

0.4% 0.6%

0.4%

1.1%

2.5%

1.0%

0.9%

1.7%

0.8%

0.4%

0.5%0.4%

4.8%

4.0%3.8%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

Q4 2014 Q4 2015 Q1 2016

Marketing Marketing (Carlos) Construction

Construction (Carlos) Privatization

8

Completion of construction works increased units available for marketing at the end of the quarter

Integration and improvement ongoing

Case studies – Carlos Portfolio

Turn-around of Carlos on track with 200 units modernized in Q1 and further improvements to come

Key metrics (per April, 2016)

Location Spandau & Reinickendorf

Acquisition price € 376m

Current fair value € 415m/ €1,039 per sqm

Number of residential units 5,748

Avg. rent / sqm / month:

– At acquisition € 5.19

– Current average € 5.30

– Avg. new lettings € 5.83

Rent restricted units 48%

Occupancy rate improving above pre-acquisition levels

9

New letting volumes demonstrate operational improvements Investment program on track

0

100

200

300

400

500

0

25

50

75

100

125

Apr

15

May

15

Jun

15

Jul 15 Aug

15

Sep

15

Oct

15

Nov

15

Dec

15

Jan

16

Feb

16

Mar

16

Apr

16

No. of finished Units (resi) Finished Units accumulated

0

10

20

30

40

50

60

70

80

Apr 15 May

15

Jun 15 Jul 15 Aug

15

Sep

15

Oct 15 Nov

15

Dec

15

Jan 16 Feb

16

Mar

16

Apr 16

No. of New lettings Average No. of cancellations

95.9% 96.1%

94.0%

94.5%

95.0%

95.5%

96.0%

96.5%

97.0%

Apr

15

May

15

Jun

15

Jul 15 Aug

15

Sep

15

Oct

15

Nov

15

Dec

15

Jan

16

Feb

16

Mar

16

Apr

16

• 26 units sold in Q1 2016 for gross proceeds of € 4.6m,

generating close to 75% value uplift compared to

average book value of Central Locations

• Comparably low taxable profit of 15% results from the

fact that most units have already been acquired as

condominiums and therefore been carried at higher

book values

• We target to sell around 100 units in 2016 as we expect

further price increases for condominiums especially in

inner city locations and try to maximize profits not sales

volume

Privatization results and outlook

Privatization activities on target

26 units sold in Q1 2016 for an average sales price of € 2,964 per sqm

1,700

2,964

0

500

1,000

1,500

2,000

2,500

3,000

Avg. Portfolio value

Central locations

31/12/15

Avg. sales price

Q1 2016

€/sqm

Sales profit – Avg. sales price vs. portfolio value

10

409

1,764

1,756 3,929

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Privatization

portfolio

Medium term

potential

Long term

potential

Total

Units

Privatization potential

03FINANCIAL

OVERVIEW

• Total portfolio value of € 1,559m as at 31 March, 2016 includes

investment and trading properties. The fair value of the portfolio was

assessed by CBRE as of December 31, 2015 and will be updated

again on June 30, 2016

• More than € 40m cash has been deployed for acquisitions in Q1 2016.

the existing proforma cash position ( including the additional cash

from equity raising in April 20, 2016) will enable us to purchase

additional € 300m million deals while maintaining our LTV strategy

• Interest bearing loans include € 777m loans from banks and a loan

from Harel Insurance in an amount of € 20m related to the WayPoint

portfolio

• Our EPRA NAV per share is € 24.26 as of 31 March, 2016. On April

21, 2016 the Company raised additional equity by issuing 3.5m new

shares for a total net proceeds of € 98m. Proforma EPRA NAV per

share after the capital increase is € 24.61

Proforma NAV per share of € 24.61 following equity

raise in April 2016

12

1

Comments

In €m March 31, 2016 Dec 31, 2015

(Unaudited) (Audited)

Investment properties 1,521 1,459

Other non-current assets 3 4

Non-current assets 1,524 1,463

Cash and cash equivalents 90 134

Other current assets 74 73

Current assets 164 207

Total assets 1,688 1,670

Interest bearing loans 797 785

Other liabilities 44 42

Deferred tax liabilities 49 48

total Liabilities 890 875

Total equity attributable to shareholders of the company

789786

Non-controlling interests 9 9

Total Equity 798 795

Total shareholder’s equity and liabilities 1,688 1,670

EPRA NAV 849 844

No. of shares 35 35

EPRA NAV per share 24.26 24.10

1

1

3

4

2

1

Carlos

Remaining

portfolio - mostly

in Central Berlin Total

Total fair value € 415m € 1,144m € 1,559m

Value per sqm € 1,039 € 1,642 € 1,422

Multiplier

(current rent) 17.0x 21.1x 19.9x

Multiplier (new

letting rent) 15.5x 15.0x 15.2x

2

3

4

3.6% 1.4%

2016Old interest rate

New interest rate

Solid balance sheet with a proforma LTV of 39.3% and further upside from decreasing funding costs

13

• Total debt of € 797m - primarily mortgage backed/secured

• Average cost of debt of 2.3%

• Almost all loans are fixed interest rate or hedged

• No near term maturities with avg. weighted maturity of c. 5.3 years

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

acquisitions from free cash and target maturity for mortgage debt

between 5 to 7 years

• The Company signed binding term sheet to refinance up to € 150m

with an expected fixed rate of up to 1.4% for 6 years. The refinancing

is expected to be completed on June 30, 2016.

Average interest rate

Diversified funding profile with weighted average debt maturity of

approx. 5.3 years

Key financing figures and strategy

Solid financing structure supporting FFO with an LTV target of 45% to 50%

Refinancing overview Q2 2016E

Refinancing volume

28

169

13 61

526

-

100

200

300

400

500

600

2017 2018 2019 2020 2021+

Bank debt (€m)

1.4%

3.5%

2.0%

2.1%

% Average interest rate

3.0%

€ +150m

2.3% Max.

2.0%

2015 20161 2016 outlook after expected refinancing of at least € 150 million of loans

March 31,

2016

Expected 2016

year end1

In € m Q1 2016 Q1 2015 Year 2015

Income from rental activities 20.4 10.8 65.8

Cost of rental activities (3.9) (1.7) (11.4)

Net operating income 16.5 9.1 54.4

Overhead costs (2.0) (1.0) (5.9)

EBITDA from rental activities 14.5 8.1 48.5

EBITDA from rental activities margin (%) 75% 77% 78%

Net result from privatization sales 0.7 0.5 1.5

EBITDA total 15.1 8.6 50.0

Financial cost interest bearing loans (4.8) (3.6) (17.7)

Financial costs shareholder loans/net others (0.6) (2.1) (6.5)

IPO related expenses - - (0.4)

Depreciation & Amortization (0.1) (0.0) (0.3)

EBT 9.6 2.9 25.1

14

• Income from rental activities increased by 88% driven by rental growth of

5.9% and acquisitions. Quarter-on-quarter growth was 6.7%. Q1 reflects

an annualized income from rental activities of € 81 million

Strong rental growth supported by our investment strategy

• EBITDA from rental activities increased by 80%. Q1 2016 results

represent an annualized EBITDA of € 60 million. EBITDA-margin is, as

usual for Q1, negatively impacted by the seasonal high maintenance

level of the winter season. We expect EBITDA-margin and total

maintenance & CAPEX to come back to similar levels as for the full year

2015

• Financing relies predominately on bank financing provided by German

mortgage banks. The average interest rate is 2.3%, which we expect to

be reduced to below 2% after the scheduled refinancing in June 2016

• Includes mostly non-cash interest on loans from ADO Group which were

all converted into equity at July 23, 2015 upon the completion of the IPO

• One-off expenses related to the IPO that were classified to the P&L in

the financial statements

Comments

Overview of profit and loss

1

1

3

4

3

2

4

In %LTM March

31, 2016

Jan 1 – Dec

31, 2015

CAPEX 2.7% 3.8%

Fluctuation 2.6% 2.7%

Regular Increases 0.6% 0.8%

Total 5.9% 7.3%

2

5

5

In € m Q1 2016 Q1 2015 Year 2015

EBITDA from rental activities 14.4 8.0 48.5

Net cash interest (4.8) (3.6) (17.7)

Current income taxes (0.2) (0.0) (0.1)

FFO1 (from rental activities) 9.4 4.4 30.7

Maintenance capital expenditures (2.4) (0.6) (4.1)

AFFO from rental activities 7.0 3.8 26.6

Net profit from privatizations 0.7 0.5 1.5

FFO2 (incl. disposal results) 10.1 4.9 32.2

FFO 1 € per share 0.27 0.18 1.04

FFO2 € per share 0.29 0.20 1.09Note: On July 23, 2015 the Company issued 10m new shares as part of the IPO. The number of shares is calculated as the weighted average number of shares for the period

• EBITDA from rental activities increased by 80% by our strong 5.9% l-f-l

rental growth and successful acquisitions. The annualized Q1 figures

represent an EBITDA of more than € 60 million

• FFO1 has increased by more than 110% due to our operational

performance and the relative improvement of our net cash interest

expenses which only increased by 36%. The comparably low growth

compared to Q4 2015 of 5% results mainly from the high level of

maintenance in Q1. Going forward we expect a substantial growth in

FFO1 compared to the Q1 run-rate based on continuing like-for-like

growth, further acquisitions and from the expected refinancing

• Maintenance and CAPEX level for Q1 was higher due to the winter

season in combination with the high proportion of newly acquired units

during the last 12 months and the high rate of modernization projects

finalized in Q1 (more than 300 units of which 200 units are out of the

Carlos portfolio). We expect maintenance and CAPEX levels over the

year to come back to our long term averages

• Our privatization business started at the end of 2014. In 2016 we sold 26

units for a gross profit of € 0.7 million, on track with our 2016 target. The

comparably low taxable profit of 15% 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 € 2,964 per sqm compares to an average portfolio value for

Central Locations, which we see as most comparable, of € 1,700 per sqm

15

1

1

2

Comments

3

3

In € / per sqmJan 1 – Mar

31, 2016 (*)

Jan 1 –

Dec 31, 2015

Maintenance 8.7 6.3

Capitalized maintenance 4.0 4.6

Modernization CAPEX 16.1 9.9

Total 28.8 20.8

3

Overview of FFO

Maintenance and CAPEX

2

(*) Annualized figures based on total lettable area.

4

4

16

Guidance

We update our FFO1 run-rate guidance to at least € 50 million by the end of year 2016

We expect to privatize around 100 units p.a. from 2016 onwards

We anticipate like-for-like rental growth going forward to be at least 5% which would

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

2

3

We update the dividend pay-out ratio to be up to 50% of FFO1

4

5

Average cost of debt by the end of year 2016 will be reduced to below 2% with a LTV in

the range of 45% to 50% after refinancing at least € 150 million of existing loans

Stettiner Str.

Wedding

Ahornstr.

Steglitz

Kaiser-Friedrich-Str.

Charlottenburg

Kirchhofstr.

Spandau

Binzstr.

Pankow

Hefnersteig,

Siemensstadt

04CONTACT

INFORMATION

ADO Properties

20 Rue Eugene Ruppert

L-2453 Luxemburg City

Luxemburg

Investor Relations

IR@ado.properties

+352 26 493 412

18

Financial Calendar 2016

Putbusser Str.

Wedding

Martin-Opitz-Str.

Wedding

Publication Q2 financial reportAug 17, 2016

Publication Q3 financial reportNov 17, 2016

Gutenbergstr.

Köpenick

Grimmstr.

Tempelhof

Steglitzer Damm

Steglitz

Otawistr.

Wedding