Business Model, Financials and Market - PATRIZIA Immobilien AG

PATRIZIA Immobilien AG
Business Model, Financials and Market
April 2011
PATRIZIA Immobilien AG │PATRIZIA Bürohaus │Fuggerstrasse 26 │86150 Augsburg │Germany
Phone: +49 (0) 8 21 / 5 09 10-0 00 │Fax: +49 (0) 8 21 / 5 09 10-9 99 │immobilien@patrizia.ag │www.patrizia.ag

Agenda
Business model / strategic repositioning
Business development and financials 2010
Outlook 2011
German residential real estate market
Copyright 2011 2

PATRIZIA The real estate investment house
PATRIZIA Who we are
• Founded in 1984 by Wolfgang Egger, CEO and majority shareholder
(49.97%)
• 27 years of experience in residential property resale
• PATRIZIA is a real estate investment house, i.e. a real estate agent and
full service provider
• Holistic, one-stop real estate expertise
• Organically grown with first acquisition on an organizational level in
Dec 2010 (LB Immo Invest GmbH, investment company)
PATRIZIA What we do
• Fully integrated business model
• We invest on our own account and for third parties
• We offer direct and indirect investments in residential and commercial
real estate in Germany and Europe
• As a strategic partner, we offer customized investment products to
national and international institutional and private clients e.g. as fund
vehicle or co-investment
• We operate nationwide with own local teams
Copyright 2011 3

PATRIZIA Nationwide platform with local market expertise
Head office: Augsburg
Branches: Berlin, Cologne, Dresden, Frankfurt, Hamburg,
Munich, Stuttgart
Employees: 427 permanent employees incl. 14 trainees
(March 2011), thereof
• Corporate/Holding 125
• Commercial 69
• Residential 94
• Project Development 11
• Property Management 114
Converted to full-time positions: 366
Shareholder structure:
• First Capital Partner GmbH (CEO Egger) 49.97%
• Further PATRIZIA Management 1.2%
• Alfred Hoschek 3.2%
• Other institutional investors 24.8%
• Private investors 20.8%
Copyright 2011 4

PATRIZIA The real estate expert
PATRIZIA manages every step of the real estate value chain based on a foundation of
high quality research and analysis.
Exit:
Investment realization
Placement
Marketing preparation /
sales management
Financial structuring and
optimization cash income / net
operating income
Professional property
management
Research
Fund raising via two own
investment companies
Due diligence
Acquisition
Fund management,
portfolio management
Value-oriented asset management
approach
Refurbishment
Copyright 2011 5

The PATRIZIA integrated business model – Our business lines
27-year in-depth real estate know-how and profound market knowledge, more than EUR 5bn assets under management
Residential Commercial
• Portfolio Management:
Asset and Investment
Management
• Own investments:
Residential Property
Resale
Asset Repositioning
• Co-Investments
• Residential funds via
PATRIZIA Immobilien
Kapitalanlagegesellschaft
mbH
• Portfolio Management:
Asset and Investment
Management
• Own investments
• Co-Investment
PATRoffice
• Commercial funds via
LB Immo Invest GmbH
Special Real Estate
Business
Both residential and
commercial
• Project Development
Own investments
Services for third-party
clients
• Property Management
For own investments
and third-party clients
Corporate
Holding:
Internal services, e.g.
• Research
• Financing
• Accounting/tax
• Controlling
• Legal affairs
• Risk management
• etc.
Copyright 2011 6

Residential Own investments
PATRIZIA Portfolio
as of Dec. 31, 2010
Region/City
* in accordance with Prognos/Handelsblatt 2010
Residential Property Resale
Sale of single units to tenants, owner-occupiers and private investors
via own local sales force in nationwide subsidiaries, approx. 2,800
units for sale
Asset Repositioning:
Exit via block sales, approx. 6,500 units for sale
Number
of units
Share of
the
portfolio
Area in
sqm
Future
prospects*
Munich 3,508 37.7% 241,285 top ~
Cologne/Dusseldorf 1,395 15.0% 122,712 good ~
Leipzig 970 10.4% 63,730 stable ~
Hamburg 839 9.0% 55,167 very good ~
Berlin 811 8.7% 47,697 stable ~
Frankfurt/Main 798 8.6% 50,250 top ~
Hanover 397 4.3% 27,652 stable ~
Regensburg 384 4.1% 26,475 very good ~
Dresden 152 1.6% 10,284 very good ~
Friedrichshafen 51 0.5% 3,387 very good ~
Total 9,305 100.0% 648,639
Book value of PATRIZIA„s assets :
EUR 1,125 million (project developments of EUR 53.9 m included)
Copyright 2011 7

Residential Residential funds
• PATRIZIA Immobilien Kapitalanlagegesellschaft mbH
– Five special funds with total investment volume of EUR 1.6 bn, EUR 664 million already invested in
residential real estate in Germany and Europe
– Most of the services are provided in-house by other subsidiaries, service fees as intercompany revenues
EUR million
PATRIZIA German
Residential Fund I
PATRIZIA EuroCity
Residential Fund I
VPV Immo PATRIZIA I
(Transfer fund)
Investment
volume
Committed
equity
Volume
invested
400 130 179
400
200
(fully subscribed)
128
185 185 185
PATRIZIA Urbanitas 300 150 139
PATRIZIA Domizil I 300 150 33
TOTAL 1,585 815 664
PATRIZIA German Residential Fund I: Focus on
residential real estate in Germany, launched in 2007
PATRIZIA EuroCity Residential Fund I: Focus on
Scandinavia, France, the Netherlands; placement
completed, launched in 2008
VPV Immo PATRIZIA I: Transfer fund with VPV
Lebensversicherungs-AG (insurance company),
commercial properties were mainly transferred,
launched end of 2009
PATRIZIA Urbanitas: Individual fund, tailored to
one long-term-oriented large-scale investor, focus
on residential properties not exceeding 10 years of
age, launched in January 2010
PATRIZIA Domizil I: Individual fund, set up for a
German institution for professional retirement
provision, focus on newly built residential properties,
launched in September 2010
Copyright 2011 8

Commercial − Fund business of LB Immo Invest (I)
• Asset management company LB Immo Invest GmbH was acquired from HSH Real Estate AG with
effect from January 3, 2011 (94.9% stake)
• 12 special funds, mainly invested in commercial real estate
• Investors are mainly savings banks, insurance companies, pension funds
Modular funds Individual funds Label funds
• Investors can create a diversified
portfolio and achieve the desired
risk/reward profile by investing in
different funds.
• Funds are launched based on the
specifications of an individual
investor.
• Real estate portfolio can be newly
established or transferred by the
investor.
• Provision of a fund platform in
accordance with the German
Investment Act.
• Asset management, purchase and
sale are the responsibility of the
investor or the investor’s service
provider.
in EUR bn Modular funds Individual funds Label funds Total
Gross fund volume 1.1 0.5 0.7 2.3
Net fund volume 0.7 0.3 0.5 1.5
Subscribed capital 0.8 0.6 0.6 2.0
Copyright 2011 9

Commercial − Fund business of LB Immo Invest (II)
Overview of special funds of LB Immo Invest (12 funds), in EUR million
Name Launched in Volume invested Net fund volume /
equity invested
MODULAR FUNDS 1,221.3 723.3
LB Handels-Invest Deutschland I 2002 253.1 162.1
LB Büro-Invest Europa I 2004 254.4 167.9
LB Wohn-Invest Deutschland I 2005 232.3 131.7
LB Handels-Invest Europa I 2005 182.3 99.3
LB Hotel-Invest Deutschland I 2007 109.9 59.0
LB Pflege-Invest Deutschland I 2007 189.5 103.2
INDIVIDUAL FUNDS 419.4 351.0
SV Europa Direkt 2003 94.9 68.1
LB-VA ImmoInvest 2004 160.3 109.6
LB HanseMerkur Invest 2005 114.5 121.4
LB Immo Invest Saar 2005 49.8 51.9
LABEL FUNDS 684.9 415.9
GLL BVK Internationaler Immobilien-Spezialfonds 2004 637.0 389.6
LB Immo HBL 2010 47.9 26.3
TOTAL 2,325.6 1,490.1
Copyright 2011 10

Commercial − Asset allocation of LB Immo Invest
11,7%
11,8%
Asset allocation by region Asset allocation by sector
2,6%
3,0%
4,9%
12,1%
As of June 30, 2010
0,8% 0,7%
52,4%
Germany
France
UK
USA
Netherlands
Finnland
Belgium
Sweden
Hungary
12,3%
8,0%
26,3%
6,1%
1,8%
45,5%
Office
Retail
Residential
Care
Hotel
Others
Copyright 2011 11

Commercial − Co-Investments
PATRIZIA enhances the performance of properties by active management. Own asset
management experienced specifically in managing mandates for large insurance companies
and other institutional investors
Co-Investment PATRoffice
• Actively managed co-investment with two of the leading European pension funds:
APG from Netherlands and ATP from Denmark
• PATRIZIA holds a 6.25% stake
• PATRIZIA is responsible for the purchase of the entire portfolio and asset management
• Investment primarily in German commercial real estate
• Total volume invested: EUR 350 million
• Launched in 2007
• Planed duration: 7 years
One of the properties acquired by PATRoffice:
Munich, Praterinsel 3-4
Copyright 2011 12

Special Real Estate Business
Residential & commercial, own & third-party business
• PATRIZIA‟s property management specializes in professional property
management of residential and commercial real estate of all sizes of its own
or in third-party ownership.
It currently manages with local teams around 17,500 units, 8,200 of which
are administered for third parties as a supplement to its own portfolios.
• PATRIZIA‟s project development provides all services involved in
commercial and residential project development, from conception through
purchase of suitable plots or property to the resale of the developed
property.
Current project: Project F40, Frankfurt, Feuerbachstrasse 40-46
Six urban villas with 54 apartments (VERO) and 64 new apartments (F40) awarded with the DGNB
gold certificate (German Sustainable Building Council). An office building is planned in addition.
Features
Planned purchase price: approx. EUR 140 million
Use: Offices, Residential
Gross floor, space planned: 29,500 sqm
Start of construction: deconstruction in Q4 2010, shell construction in Q2 2011
Project completion: 2013
In 2011, PATRIZIA acquired two plots of land in Düsseldorf and Augsburg. It is planned to
construct there a total of 140 and 240 units respectively.
VERO VERO
F40
Copyright 2011 13

Agenda
Business model / strategic repositioning
Business development and financials 2010
Outlook 2011
German residential real estate market
Copyright 2011 14

Highlights 2010 − Forecast met
Business development
• Sales figures increased by 91%:
residential property resale up 22% to 801 apartments privatized
block sales rose substantially to 1,002 units (+247%)
• Acquisition of investment company LB Immo Invest GmbH (with effect from 2011)
• Three project developments concluded and sold successfully
Financial structure stabilized
• Bank loans fell from EUR 1,070 m to EUR 841 m (-21%); better than guidance (EUR 870 m)
• Equity ratio improved to 24.3%. We nearly reached our goal of 25%
Earnings guidance realized
EBT adjusted of EUR 12.8 m reached upper end of the guidance (EUR 12-13 m)
EUR million 2010 2009 Change
Revenues 339.6 250.9 35.4%
Total operating performance 179.9 159.3 12.9%
EBIT 61.2 56.1 9.1%
EBIT adjusted* 60.9 56.1 8.6%
EBT 11.5 -8.0 244.3%
EBT adjusted* 12.8 2.4 428.7%
Consolidated annual profit / loss 6.2 -9.5 165.3%
* adjusted for profit / loss from non-cash market valuations
EUR million 12/31/10 12/31/09 Change
Equity 294.7 284.8 3.5%
Equity ratio 24.3% 20.0% 4.3%points
Bank loans 841.4 1.070 -21.4%
Cash and cash equivalents 70.5 56.2 25.5%
Real estate assets 1.125 1.333 -15.6%
Loan to value 74.8% 80.3% -5.5%points
Copyright 2011 15

Residential Property Resale
• Increase in single units sales by 22%
• Buyers in 2010: 67.2% buy-to-let investors, 24.5% owner-occupiers, 8.4% tenants
• Average price/sqm: EUR 2,370 (2009: 2,351 EUR/sqm), price depends on sales region
units
300
250
200
150
100
50
0
2.398
144
476 units 657 units 801 units
2.206
103
2.230
83
2.371
146
2.276
110
2.355 2.341 2.395
147
216
184 183
2.492 2.505
177
245
2.348
2.169
Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 Q4/2010
number of units sold average sales price per sqm
196
2.600
2.400
2.200
2.000
1.800
1.600
1.400
1.200
1.000
Euro/sqm
Copyright 2011 16

Asset Repositioning – Block sales
• 1,002 units sold en bloc, +247%
• Average price/sqm: EUR 1,625 (2009: EUR/sqm 2,177), depends on sales region
• Some of the properties sold in Q4 in Leipzig, Frankfurt, and the Hamburg region were sold unmodernized, hence
average sales price was depressed
units
700
600
500
400
300
200
100
0
1.900
85
722 units 289 units 1,002 units
2.195
52
1.846
357
2.001
228
0 0
1.803
33
2.221
256
0
1.987
297
1.801
83
1.389
Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 Q4/2010
number of units sold average sales price per sqm
622
2.500
2.000
1.500
1.000
500
0
Euro
Copyright 2011 17

Split of revenues 2010
Revenues increased by 35.4% up to EUR 339.6 million, another EUR 43.2 million were
generated by the sale of investment property
in EUR million
128,9
Purchase price revenues
of EUR 242.8 m from the
sale of inventories vs.
decreases in the book
value of EUR 199.2 m
71,5
Purchase price Purchase price
revenues from revenues from asset
residential property
resale
repositioning
42,4
Purchase price
revenues from
project
development
Rental income exceeds our
affecting financial payments
(EUR 48.1 m) by 32.6%;
ongoing maintenance (EUR
6.9 m) included by 18.3%
63,8
Rental income
(without ancillary
costs)
38.0% 21.0% 12.5% 18.8%
10,0
Revenues Services
segment
2.9%
23,1
Others (primarily
rental ancillary
costs)
6.8%
339,6
100%
43,2
Total revenues Purchase price
revenues from
investment property
Not posted as
revenues but as
income from the sale
of investment property
(EUR 1.2 m)
Copyright 2011 18

Financial result
The market valuation of interest rate hedges impacted the financial result by EUR -1.6 million
2010 in EUR million 2009 in EUR million
0.9
Interest
earnings
10.5
Market
valuation
interest rate
hedges
-49.1
Interest
expenses
-12.2 -49.8
Market
valuation
interest rate
hedges
Financial
result
Market
valuation
interest
rate
hedges
One-off
charge
(termination
interest
rate hedges)
in EUR‟000 Q1 2010 Q2 2010 Q3 2010 Q4 2010 2010 2009
Financial
result
Financial result (IFRS) -18,915 -15,957 -8,693 -6,191 -49,756 -64,071
- thereof changes in value of the derivatives -7,196 -3,402 3,569 5,404 -1,626 -10,381
- Thereof other financial result -11,719 -12,555 -12,262 -11,594 -48,130 53,690
6.4
Interest
earnings
5.8
Market
valuation
interest rate
hedges
-56.2
Interest
expenses
-16.2
-3.9
-64.1
Copyright 2011 19

Earnings before Tax (EBT) – Adjustments
70
60
50
40
30
20
10
0
EBT adjusted 2010
(in EUR million)
61,2
-49,8
11,5
EBIT financial EBT
result (IFRS)
1,6
profit /
loss from
interest
rate
hedges
-0,3
12,8
fair value EBT
adjust- adjusted
ments to
investment
property
60
50
40
30
20
10
0
-10
EBT adjusted 2009
(in EUR million)
56,1 -64,1
EBIT
financial
result
-8,0
EBT
(IFRS)
10,4 2,4
profit / loss
from interest
rate hedges
EBT
adjusted
Copyright 2011 20

EBT adjusted by quarter
in EUR million
Elimination of profit/loss from interest rate hedges (EUR -1.6 m) and fair value adjustments to
investment properties (EUR 0.3 m)
EBT adjusted improved in course of the year
10,0
8,0
6,0
4,0
2,0
0,0
-2,0
-4,0
-6,0
-8,0
-7,8
2008: EUR 0.8 million
0,2
9,2
-0,8
-4,7
2009: EUR 2.4 million
-2,5
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010
4,4
5,3
2,1
2010: EUR 12.8 million
2,9
3,1
4,6
Copyright 2011 21

Residual terms of our bank loans
• Liabilities with banks decreased by EUR 229 m or 21.4% in course of 2010
• Equity ratio improved to 24.3% (Dec 31, 2009: 20.0%)
• 66.2% of loans are hedged by means of interest rate hedging instruments (will expire in July 2014 at the latest,
fixed interest rate guaranteed 4.08%)
• In 2010, cost of financing (incl. margin and processing fee) amounted to 4.99% on the average bank loans
• The bank loan in the amount of EUR 466 m was extended in the meantime until June 30, 2014
Maturity
Amount of loans falling due
as of Dec. 31, 2010
Fiscal Year Quarter EUR‟000 in %
2011 523,314 62.2%
thereof Q1 470,957 56.0%
Q2 27,000 3.2%
Q3 20,912 2.5%
Q4 4,445 0.5%
2012 88,775 10.6%
thereof Q3 46,868 5.6%
Q4 41,908 5.0%
2013 81,020 9.6%
thereof Q4 81,020 9.6%
2014 148,270 17.6%
thereof Q2 135,120 16.1%
Q4 13,150 1.6%
TOTAL 841,380 100 %
EUR'000
1.400
1.200
1.000
800
600
400
200
0
Q4
2007
Q1
2008
Bank loans vs. equity ratio
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
bank loans equity ratio
Q2
2010
Q3
2010
Q4
2010
30%
25%
20%
15%
10%
5%
0%
Copyright 2011 22

Net Asset Value
25
20
15
10
5
0
NAV/Share Share price at the end of the quarter
EUR„000 12/31/2009 03/31/2010 06/30/2010 09/30/2010 12/31/2010
Investment Property (Fair value) 657,320 657,320 652,560 639,000 614,945
Participations (PATRoffice) 3,090 3,090 3,090 3,090 3,090
Inventories (at cost) 676,008 655,253 598,170 575,047 510,438
Bank balances and cash 56,183 53,530 58,801 64,124 70,537
- Bank loans -1,070,207 -1,029,949 -972,830 -931,912 -841,380
Net Asset Value (NAV) 322,394 339,244 339,791 349,349 357,630
Number of shares 52,130,000 52,130,000 52,130,000 52,130,000 52,130,000
NAV per share EUR 6.18 EUR 6.51 EUR 6.52 EUR 6.70 EUR 6.86
Share price at the end of the quarter EUR 3.06 EUR 3.25 EUR 2.95 EUR 3.24 EUR 3.84
Copyright 2011 23

Agenda
Business model / strategic repositioning
Business development and financials 2010
Outlook 2011
German residential real estate market
Copyright 2011 24

Outlook 2011 (I)
Residential segment
Residential Property Resale
• It will be difficult to achieve the 2010 sales figures despite favorable general conditions and
good demand
• We want to maintain this level for the entire year but do not exclude the possibility of a slight
decline
• 600 units in Munich, Hamburg and Berlin held as investment property were released for
residential property resale. The initial phase of sale, in which only the tenants are approached,
is planned to start in Q2
• Acquisition of 480 units in Munich for residential property resale in Q1 2011 (investment volume
> EUR 50 m)
Asset Repositioning / Block sales
• We intend growing block sales significantly. We see a good possibility of attaining more
transactions and in some cases increasing individual volumes.
• Three smaller bloc sales already notarized in Q1: 45 and 18 units in Hamburg, 26 units in the
Munich area. We expect to receive the purchase prices in Q1 and Q2
Copyright 2011 25

Outlook 2011 (II)
Commercial segment
Commercial funds
• The acquisition of LB Immo Invest GmbH was completed as of January 3, 2011
• We expect a profit contribution (EBT) from the integration of EUR 3.5 m after deduction of
transaction-related financing costs (and EUR 5 m in 2011)
Special Real Estate Business segment
Project development
• No completion of any projects in 2011. The project development in Frankfurt is due to be
completed in full by 2013
• In Q1, PATRIZIA has acquired two plots of land with a total area of 7,500 sqm in one of
Düsseldorf’s most desirable areas (“Belsenpark”). It is planned to construct a total of 140
premium-segment apartments here by 2014. The volume of the project is around EUR 60 m
• Notarization was also performed for a plot of land in Augsburg. Around 240 apartments will be
built in three construction phases on around 30,000 sqm near the city center and sold
individually. Completion of the last construction phase is planned for 2015
• PATRIZIA is currently examining further investment opportunities
.
Copyright 2011 26

Outlook 2011 (III)
Earnings and financial situation
• 2011 will see increasing earnings contributions from our two asset management companies:
LB Immo Invest will generate EBT of EUR 3.5 m after deduction of transaction related finance
costs
• PATRIZIA in its old structure should achieve an EBT adjusted in 2011 that at least matches the
2010 result (EUR 12.8 m).
• EBT adjusted of EUR 16-17 m for fiscal year 2011 as a whole
• The more we sell, the more we will be able to reduce our level of debt (but purchasing activities
require new loans to be taken out)
• Equity ratio of 25%
Dividend policy
• If we achieve our profit target and our equity base is at least 25% we will pay out a dividend
• Given the appropriate business success, 20-25% of the EBT adjusted should be distributed as
dividends
Copyright 2011 27

Agenda
Business model / strategic repositioning
Business development and financials 2010
Outlook 2011
German residential real estate market
Copyright 2011 28

German market supported by strong fundamentals
No boom – no crash
• Most European countries have
experienced a steep increase in their
house prices since 1995 and now
see dramatic decreases since the
beginning of the sub-prime crisis
• In contrast to that, Germany has
more or less stable house prices
since 1995 and therefore does not
suffer from the current market
environment
House price development 1998-2009 (Index 1998 = 100)
300
250
200
150
100
50
0
1998 2000 2002 2004 2006 2008
FR DE IE ES UK
Source: PATRIZIA Research, OECD
Owner occupancy rate (in %)
Sw itzerland
Germany
Austria
France
EU-Average
USA
UK
Italy
Greece
Spain
35%
41%
57%
58%
63%
68%
71%
73%
84%
Source: PATRIZIA Research, Eurostat, Federal Statistical Office, OECD 2008
87%
Copyright 2011 29

Investment prospects of regional residential markets in Germany
Regional analysis in Germany necessary
An analysis of the opportunities and risks of residential
investments needs to be carried out at local level and to
include both supply and demand factors.
On the supply side above all the provision of apartments and
the structure of the housing stock are of importance for a
potential investor in rented residential real estate.
On the demand side demographic developments and
purchasing power are the core factors to be considered in an
initial location analysis. These two factors exert a decisive
influence on the stability of the cash flow of the investment.
Ranking
Urban and administrative districts Germany 2009
far below average
below average
average
above average
high above average
Copyright 2011 30

Economic prospects – regional developments
Germany tends to regional re-urbanization:
importance of German metropolitan areas
increases
Strong price differentiation:
Rents and prices will only increase in
attractive regions, i.e. regions with
• positive economic prospects
• higher income level
• population growth
Source: Regional Planning Report 2005
Index of Metropolitan areas
Urban catchment area
and population density
major urban center
space between
peripheral area
freeway
Copyright 2011 31

Future prospects in Germany by region
2010
Source: Prognos/Handelsblatt 2010
Implications for PATRIZIA
76% of our Portfolio is located in areas
with top, very good or good future
chances for economic growth.
PATRIZIA portfolio locations share of PATRIZIA‟s portfolio (as of 31 Dec. 2010)
Top future prospects 46% (Munich, Frankfurt)
Very good future prospects 15% (Hamburg, Dresden, Friedrichshafen, Regensburg)
Good future prospects 15% (Cologne/Dusseldorf)
With future prospects –
Stable risk-reward-relation 23% (Berlin, Hanover, Leipzig)
With future risks –
Above average future risks –
High future risks –
Copyright 2011 32

Economic strength (status quo) and dynamics in Germany by region
Status quo of locations„ strength
PATRIZIA portfolio locations
Highest strength
Very high strength
High strength
Medium strength
Low strength
Very low strength
Lowest strength
Changes over time
PATRIZIA portfolio locations
Highest dynamic
Very high dynamic
High dynamic
Medium dynamic
Low dynamic
Very low dynamic
Lowest dynamic
Source: Prognos 2010
Copyright 2011 33

Demand for housing until 2015
Cologne
Frankfurt
Hamburg
Hanover
Leipzig
Regensburg
Friedrichshafen
Munich
Berlin
Dresden
PATRIZIA
portfolio locations
below -4%
-4% to 0%
0% to 4%
4% to 8%
8% to 12%
12% and more
The demand for housing will increase further,
given the increase in the average household
compensating for the general decrease in the
population. An increasing number of households
is seen as the main driver for housing demand.
Source: Empirica Institute 2007
130
120
110
100
Housing demand forecast 2000-2050
(Index 2000 = 100)
90
2000 2010 2020 2030 2040 2050
Bavaria-Munich NRW-Cologne/DD Berlin
Source: Federal Office for Building and Planning 2008
Copyright 2011 34

Household formation as driver of multi-family performance
until below -10
-10 until below -3
-3 until below 3
3 until below 10
10 an more
Change in number of households from
2005 until 2025 in %
While the population in Germany will
decrease, the household formations are
expected to steadily rise.
PATRIZIA portfolio locations
Source: Federal Office for Building and Planning, Bonn 2009
41
40
39
38
37
80
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
German housholds in m (left side) Population inm (right side)
84
83
82
81
Copyright 2011 35

Vacancy risk
Estimation of vacancy risk in rented
multi-family houses / multi-story
buildings 2005 until 2020
The vacancy risk for residential real
estate is in Western German regions
much lower than in Eastern Germany
due to better future prospects.
PATRIZIA portfolio locations
very low
low
average
high
very high
Source: Federal Office for Building and Planning, Bonn 2009
Copyright 2011 36

The “Mietspiegel”
The “Mietspiegel” is an index of local residential markets rents published by each major
municipality in Germany. The rent index contains “average” rents for apartments for each submarket
according to several factors, including: quality of the sub-market, age of building
construction, average unit size, etc.
• A landlord is not allowed to raise rents for current tenants above the level indicated in
the index, with a cap of a 20% increase over each 3 year time horizon
• Quality portfolios with below market rents stand to gain the most income growth, in
particular if
– Past owners under-managed the portfolio and
– If the “Mietspiegel” index levels are above current levels or increasing
significantly
Copyright 2011 37

Building permits and completions
700
600
500
400
300
200
100
0
Number of construction permits (in „000)
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10e
Single-family housing Multi-family housing
• For the first time there were again more building permits issued in Germany in 2009 compared with 2008 that
were not due to tax pull-forward incentives.
• A higher number of housing completions can be expected in 2010 due to the close historical relationship
between permits and completions.
• Rising construction activity can also be expected in subsequent years given the very positive
macroeconomic performance and positive housing construction indicators.
• This will be increasingly driven by the construction of apartment buildings since growing urbanization is
shifting housing demand to the cities.
700
600
500
400
300
200
100
0
Number of completions(in „000)
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
Total units Single-family houses Condominiums Rented apartments
Copyright 2011 38

PATRIZIA share
PATRIZIA share 2010 at a glance Shareholder structure
ISIN DE000PAT1AG3
SIN (Security Identification Number) PAT1AG
Code P1Z
No. of shares in issue as at 31 December 2010 52,130,000
2010 high* EUR 3.85
2010 low* EUR 2.59
Closing price as at 31 December 2010* EUR 3.84
Share price performance 2010 25.5%
Market capitalization as at 31 December 2010* EUR 200.2 million
Average trading volume per day 2010 56,000 shares
Indices SDAX, EPRA, GEX, DIMAX
Research Current estimates
Bank Analyst Date Rating Price target
Bankhaus Lampe Frank Neumann 24.03.2011 Buy EUR 7.00
Berenberg Bank Kai Klose 04.04.2011 Hold EUR 5.50
Close Brothers Seydler Research Manuel Martin 04.04.2011 Buy EUR 5.70
DZ Bank Ulrich Geis 10.03.2011 Buy EUR 6.50
HSBC Thomas Martin 28.02.2011 Underweight EUR 5.00
J.P. Morgan Harm Meijer 23.03.2011 Neutral EUR 4.50
UniCredit Burkhard Sawazki 23.02.2011 Hold EUR 6.00
Warburg Research Torsten Klingner 24.03.2011 Hold EUR 5.20
20,8%
24,8%
3,2% 1,2%
49,97%
First Capital Partner
GmbH
Other institutional
investors
Private shareholders
Alfred Hoschek
Further PATRIZIA
Management
Copyright 2011 39

Appendix: Glossary
Gross fund volume
Market value of properties plus value of investments in real estate companies
plus liquidity and receivables; properties that are secured under purchase
agreements without the transfer of ownership/benefits/ encumbrances are not
included
Net fund volume Gross fund volume less debt capital, liabilities and provisions
Target volume / Total
investment volume
Equity committed by the fund subscribers plus debt capital
Volume invested Purchase prices plus ancillary costs
Subscribed capital Equity committed by the fund subscribers
Copyright 2011 40

Financial calendar and contact details
Financial calendar 2011
11 May 2011 Interim report for the first quarter of 2011
29 June 2011 Annual General Meeting, Augsburg
10 August 2011 Interim report for the first half of 2011
19 October 2011 Real Estate Share Initiative, Frankfurt
9 November 2011 Interim report for the first three quarters of 2011
To be always updated, please have a look on our website www.patrizia.ag
PATRIZIA Immobilien AG
Margit Miller
Head of Investor Relations
Fuggerstrasse 26
86150 Augsburg
Germany
Tel.: +49 (0) 8 21 / 5 09 10-3 69
Fax: +49 (0) 8 21 / 5 09 10-3 99
margit.miller@patrizia.ag
Copyright 2011 41