Slides
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Q1 2025 results 15th May 2025 Dr Christian Ricken (CEO) Andy Halford (CFO)
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1 1. Highlights 2. Financial Performance 3. Business Performance 4. Funding, Liquidity & Capital 5. Outlook Appendix Agenda
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2 Highlights
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3 Non-performing loans further reduced Good start to 2025; 15% increase in adjusted operating profit Net interest income still at a historically high level New business with good margins and conservative LTVs Strong capital ratios, comfortable funding and liquidity position Highlights Loan impairment charges significantly below previous year Well prepared for a time of volatile markets
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4 Financial Performance
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Financial Performance – Group Profit & Loss Adjusted operating profit, 15% higher than last year 5 1) The previous year’s figures only refer to those activities then presented as continuing operations (excluding non-controlling interests) 2) Adjusted for costs for efficiency measures, investments in IT infrastructure and other material one-off effects 3) Post tax, based on IFRS equity Adjusted operating profit (€ mn) 93 107 0 50 100 150 3M 2024 3M 2025 Full year guidance: € 375-425 mn 15% ▪ Adjusted operating profit of € 107 mn above last year ▪ NII slightly down as expected but still at a historically high level ▪ Loan impairment charges significantly below previous year ▪ Adjusted admin expenses slightly up due to higher project costs ▪ Higher AT1 costs due to overlapping replacement of existing AT1 bond ▪ Adjusted RoE stable as increase in adj. operating profit compensated by higher AT1 cost and increased equity Profit & loss (€ mn) Q1 20241) Q1 2025 ∆ Net interest income 268 249 -7% Net commission income -2 1 Loan impairment charges -86 -55 -36% Admin expenses (adjusted)2) -82 -88 7% Other components -5 0 Adjusted operating profit2) 93 107 15% Non-recurring items2) -2 -7 Operating profit 91 100 10% Taxes -24 -27 13% AT1 -8 -13 63% Net profit 59 60 2% Adjusted return on equity (RoE)2,3) 8.2% 8.2%
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Financial Performance Net interest income reduced as expected, but still at a historically high level Adj. admin expenses slightly up due to prioritising specific change projects 6 Net interest income € mn NII reduced as expected, mainly driven by ▪ Lower interest rate environment ▪ Effects of proactively strengthening our Tier 2 and senior non prefered position 268 249 0 100 200 300 400 3M 2024 3M 2025 -7% Admin expenses (adjusted) € mn 82 88 0 40 80 120 3M 2024 3M 2025 ▪ Continuous focus on cost control ▪ Operating costs in line with budget ▪ Underlying trend stable, however temporarily increased due to prioritising specific change projects ▪ Adjusted cost-income ratio1) at 35% ▪ € 7 mn of non-recurring costs shown separately 1) Cost-income ratio excl. bank levy/deposit guarantee scheme and one-off charges for efficiency measures, investments in IT infrastructure and other items 7%
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Financial Performance Loan impairment charges significantly below previous year Loan impairment charges1, 2) 7 € mn 86 55 0 25 50 75 100 3M 2024 3M 2025 -36% Loan impairment charges ▪ Significantly down year on year ▪ Q1 seasonally lower, still significantly US office ▪ Management overlays increased by € 9 mn to € 94 mn (12/24: € 85 mn) 1) Incl. FVPL 2) Incl. management overlay
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8 Business Performance
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Structured Property Financing New business above last year with good margins and conservative LTVs 9 New business by region New business by property type Europe West: 40% Europe South: 22% North America: 16% Europe North: 12% CEE: 5% Asia / Pacific: 5% € 2.3 bn 1) Governed by “Green Finance Framework” Hotel: 53% Retail: 20% Logistics: 15% Office: 9% Residential: 2% Others: 2% € 2.3 bn New business by quarter 1)1)1) Newly acquired business Renewals 0.7 1.2 0.2 1.1 0.0 0.5 1.0 1.5 2.0 2.5 3M 2024 3M 2025 2.3 0.9 € bn ▪ Newly acquired business ▫ Very conservative avg. LTV of 56% ▫ Avg. margin of 281 bps ▪ New business includes € 0.7 bn green loans1) ▪ More conservative approach in new office financings ▪ Increased activity in the hotel sector ▫ e.g., € 0.6 bn financing of a portfolio of 7 hotels in 4 different European countries (62%) (03/2024) (0%) (13%) (13%) (12%) (0%) (03/2024) (36%) (17%) (0%) (41%) (6%) (0%)
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Structured Property Financing Loan portfolio stable excluding FX 10 ▪ Portfolio highly diversified by region and property type ▫ Focus on major global metropolitan areas ▫ No new construction financings ▫ Limited exposure in Germany (8% of commercial real estate financing portfolio) ▫ No exposure to Russia, China, Middle East ▪ € 0.4 bn of reduction due to FX ▪ Financing of refurbishments to foster green transition ▪ Green loan volume of € 8.3 bn (12/24: € 7.6 bn) Commercial Real Estate Financing Portfolio by region Commercial Real Estate Financing Portfolio by type Hotel: 35% Office: 26% Logistics: 17% Retail: 15% Residential: 6% Others: 1% Real Estate Financing Portfolio 29.5 30.5 32.5 33.2 32.8 0.5 0.4 0.4 0.3 0.2 20 25 30 35 12/21 12/22 12/23 12/24 03/25 Commercial Real Estate Financing portfolio others € bn Europe West: 40% Europe South: 10% CEE: 9% Germany: 8% Europe North: 5% North America: 25% Asia / Pacific: 3% € 32.8 bn € 32.8 bn 30.0 30.9 32.9 33.5 (4%) (40%) (9%) (5%) (26%) (37%) (27%) (16%) (13%) (6%) (1%) (12/2024) (12/2024) (8%)(8%) 33.0
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Structured Property Financing Conservative risk management 11 Performing portfolio yield-on-debt (YoD) 7.1% 8.5% 9.6% 9.6% 9.7% 0% 2% 4% 6% 8% 10% 12% 12/21 12/22 12/23 12/24 03/25 Performing portfolio loan-to-value (LTV) 58% 55% 56% 57% 57% 50% 55% 60% 65% 12/21 12/22 12/23 12/24 03/25 % 12 ’21 12 ’22 12 ’23 12 ’24 03 ’25 Hotel 5.0 9.0 10.6 10.4 10.9 Logistics 8.7 9.0 9.3 9.4 9.1 Office 7.6 6.9 7.5 7.6 7.6 Retail 9.1 9.8 11.3 12.0 11.8 % 12 ’21 12 ’22 12 ’23 12 ’24 03 ’25 Hotel 60 56 54 53 53 Logistics 55 52 55 58 58 Office 58 57 62 64 64 Retail 59 56 58 56 55 Loan-to-value (LTV)1) by property type Yield-on-debt (YoD)1) by property type 1) Including undrawn commitments, performing only
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Structured Property Financing Non-performing loans further reduced 12 Non-performing loan development (€ mn) 1) NPE ratio according to EBA Risk Dashboard definition 1,572 1,116 1,606 1,381 1,304 0 500 1,000 1,500 2,000 12/21 12/22 12/23 12/24 03/25 ▪ Non-performing exposure ratio acc. to EBA methodology1): 2.6% (12/24: 2.8%) ▪ Coverage ratio (incl. FVPL) of 28% (12/24: 28%) ▪ Ongoing active NPL management in a still challenging environment Non-performing loans by country Non-performing loans by property type USA: 1,042 Finland: 89 Spain: 57 UK: 55 Italy: 44 Germany: 10 France: 7 Office: 782 Retail: 285 Hotel: 183 Logistics: 40 Residential: 7 others: 7 € 1,304 bn € 1,304 bn
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Banking & Digital Solutions BDS deposits contributing well to group net interest income Average Housing Industry (BDS) deposits by type1) Maintenance reserves SightRental deposits € bn Term ▪ NII reduction mainly due to lower interest rate environment ▪ Joint Venture with Aareon attracting new clients, further enhancing deposit volumes ▪ Granular and sticky Housing Industry deposit structure from ~4,000 clients managing more than 9 mn units 13 1) Average on annual Net interest income € mn 65 59 0 25 50 75 2024 2025 -10% Q1 Q2 Q3 Q4 2.3 2.5 2.7 2.9 3.1 2.1 2.2 2.2 2.5 2.60.0 0.1 1.9 2.9 2.6 7.6 8.6 6.8 5.4 5.1 0 3 6 9 12 15 2021 2022 2023 2024 Q1 2025 13.4 12.0 13.713.6 13.4
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14 Funding, Liquidity & Capital
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Funding & Liquidity Very comfortable: ~75% of full year funding plan already achieved 15 Liability structure Capital market funding activities > 0.5 0.8 >0.0 0.1 0.4 0.0 0.5 1.0 1.5 3M 2024 3M 2025 € bn 1.4 34% 8% 2%32% 10% 8% 2% 3% 1% Deposits housing ind. Deposits retail (Raisin) Deposits institutional Hypothekenpfandbriefe Senior Unsecured (SP) Senior Unsecured (SNP) Public-sector Pfandbriefe Subordinated Capital ECP (SP) 09/24 € 39.8 bn ▪ Comfortable liquidity position ▪ Duration of liabilities successfully extended by adding retail deposits, ~99% with a maturity ≥ 2 years ▪ Solid liquidity ratios: ▫ NSFR 118%2) ▫ LCR 219%1) ▪ Total deposits of € ~17 bn Deposits: 43% ▪ Successful start in 2025 ▫ AT1 capital increased net € ~100 mn by replacement of outstanding € 300 mn with new USD 425 mn ▫ EUR 100 mn Tier 2 ▫ EUR 750 mn Pfandbrief benchmark (6.5Y) ▫ SEK 750 mn Pfandbrief (first since 2006) ▫ EUR 750 mn Pfandbrief benchmark (5.5Y) in April ▪ Remaining 2025 funding plan includes Pfandbrief and potentially SNP issues 1) Q1 average 2) As at 28.03.2025 Senior unsecuredPfandbriefe Tier 2 1) AT1
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Funding & Liquidity Treasury portfolio of € 8.3 bn ensures comfortable liquidity buffer 16 ▪ Strong liquidity profile due to highly-rated SSAs and Covered Bond focus ▪ Asset-swap purchases ensure low interest-rate risk exposure ▪ Well-balanced maturity profile Treasury portfolio development 7.4 6.7 7.1 8.2 8.3 0 2 4 6 8 10 12/21 12/22 12/23 12/24 03/25 Treasury portfolio by asset classTreasury portfolio by rating1) Public Sector Debtors: 68% Covered Bonds / Financials: 32% As of 31.03.2025 – all numbers refer to nominal amounts 1) Composite Rating AAA: 57%AA: 31% A: 5% BBB: 7% <BBB / no rating: 0% € bn > € 8.3 bn € 8.3 bn
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Capital Strong capital ratios 17 12.9 12.8 13.7 14.3 14.0 10 11 12 13 14 15 12/21 12/22 12/23 12/24 03/25 € bn B4 (phase in) RWA ▪ CET1 ratio increased mainly due to RWA reduction. CET1 fully phased ratio at 15.3% (12/24: 15.2%) ▪ RWA reduction mainly due to FX ▪ Tier 1 ratio and total capital ratio further increased due to additional capital (AT1, T2) ▪ Capital ratios significantly above SREP requirements ▪ T1-Leverage ratio1) at 7.3% (12/24: 6.8%) B4 (phase in) capital ratios 23.6% 24.0% 23.5% 26.6% 28.5% 20.5% 21.7% 21.6% 22.3% 23.5% 18.2% 19.3% 19.4% 20.2% 20.6% 15% 20% 25% 30% 12/21 12/22 12/23 12/24 03/25 TC-Ratio T1-Ratio CET1-Ratio 1) Preliminary, due to implementation of CRR III CET1 ratio vs. SREP (CET1) requirements1) 20.6% 4.5% 1.7% 2.5% 0% 5% 10% 15% 20% 25% 31.03.2025 B4 CET1 (phase-in) SREP 2025 9.3% Significant buffer 0.6% Pillar 1 P2R CCB CCyB / SyRB 1) 1)
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18 Outlook
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19 1) Adjusted, excl. expected one-off charges of € 20-25 mn in 2025 2) Subject to FX development 3) Post tax, based on IFRS equity Operating profit € 294 mn € 375 - 425 mn1) Structured Property Financing2) Banking & Digital Solutions ▪ REF Portfolio ▪ New business ▪ Deposit volume € 34 - 35 bn € 9 - 10 bn € 13 - 14 bn € 33.5 bn € 10.9 bn € 13.7 bn METRIC OUTLOOK 20252024 Outlook 2025 Q1 results fully in line with FY outlook albeit implications of recent heightened market volatility will take some time to become apparent Return on equity (RoE)3) 5.9% 7% - 8%1)
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20 Appendix Aareal AMBITION
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Aareal AMBITION Growth and efficiency initiatives targeting ≥13% RoE1) by 2027 21 1) Post tax, based on standardised 13.5% CET1-ratio (B4 fully phased) 2) B4 fully phased CET1 ratio 3) Cost-income ratio excluding bank levy/deposit guarantee scheme and one-off costs SPF BDS Risk, funding & capital Infrastructure People SPF BDS Risk, funding & capital Infrastructure ▪ Accelerate expansion of capital light business ▪ Growing CRE loan book moderately to € ~37 bn ▪ Further portfolio diversification, revised US strategy ▪ Leverage strong market position ▪ Increase market penetration within our existing customer base ▪ Expand customer base in Germany and internationally ▪ Preserve conservative risk appetite ▪ Further diversify funding sources ▪ Retain strong capital ratios ▪ Improve best-in-class cost-income-ratio ▪ Continue to realize our growth and strategic initiatives at low marginal costs ▪ Execute efficiency program People ▪ Strengthen leadership ▪ Invest in experienced experts and continue young talents program ▪ Foster diversity along every dimension CRE loan book: On balance: € ~37 bn Off-balance: € ~9 bn BDS deposit volume: > € 13 bn NPE ratio: < 3% CoR: ~ 45 bps CET1 ratio2): ≥ 13.5% CiR3): < 30% RoE1) ≥ 13%
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22 Appendix Asset Quality
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Segment SPF: CREF portfolio by country € 32.8 bn well diversified 23 7,133 6,183 3,742 2,580 2,586 1,852 1,750 1,519 974 804 575 561 543 1,955 0 2,000 4,000 6,000 8,000 10,000 US UK FR DE PL ES NL IT CA SE FI BE AU others 9.2% 10.7% 6.6% 9.4% 11.2% 11.6% 9.6% 8.3% 11.3% 9.2% 8.9% 10.2% 9.3% 11.4% 0% 4% 8% 12% 16% US UK FR DE PL ES NL IT CA SE FI BE AU others 68% 53% 59% 53% 54% 49% 55% 55% 54% 48% 59% 57% 57% 47% 0% 20% 40% 60% 80% 100% US UK FR DE PL ES NL IT CA SE FI BE AU others Note: others, including countries with a portfolio below € 500 mn 1) Including undrawn commitments, performing only CREF portfolio (€ mn) LTV1) YoD1) Ø YoD: 9.7% (12/2023: 9.6%) Ø LTV: 57% (12/2024: 57%) € 32.8 bn (12/2024: € 33.2 bn)
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Structured Property Financing US office remains key focus in 2025 24 ▪ Concentrating on high quality class A properties in A markets ▪ New York represents ~50% of the US office portfolio, rest largely spread throughout major US cities ▪ Loans are being monitored closely on a regular basis ▪ ~96% of portfolio has a (layered) LTV < 80% ▫ (Layered) LTV 80 - 100%: 4% (€ ~100 mn) ▫ (Layered) LTV above 100%: none Performing US office portfolio by (layered) LTVs 0 - 50%: 67% 50 - 60: 11% 60 - 70%: 10% 70 - 80%: 8% 80 - 90%: 3% >90%: 1% € 2.8 bn < LTV < 60%: 78% (avg. LTV: 76% vs. 75% 12/24) Performing US office portfolio by top 5 cities New York: 51% Atlanta: 15% Philadelphia 8% Boston 6% Chicago 5% Others: 15% € 2.8 bn
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Structured Property Financing US office 25 ▪ US office portfolio (€ 3.3 bn) ▫ Approx. 10% of total CREF portfolio ▫ € 2.5 bn performing ▫ € 0.8 bn non-performing ▪ Rest of portfolio (€ 29.5 bn) ▫ Approx. 90% of total CREF portfolio ▫ € 29.0 bn performing ▫ € 0.5 bn non-performing CREF portfolio as of 31.03.2025 others: 90% US office: 10% € 32.8 bn NPLs as of 31.03.2025 others: 40% US office: 60% € 1.3 bn
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Structured Property Financing European office portfolio performing well 26 European office portfolio1) by region Note: others including countries with a portfolio below € 100 mn 1) Excluding undrawn commitments 2) Including undrawn commitments European office portfolio by (layered) LTVs2) 0 - 50%: 87% 50 - 60%: 9% 60 - 70%: 3% 70 - 80%: 1% > 80%: 0% (avg. LTV: 58%) € 5.6 bn ▪ No new office NPLs in Europe since 2022 ▪ French office portfolio mainly in Paris ▫ High share of planned refurbishments into green assets (~1/3 of total French office portfolio) ▪ UK portfolio mainly in London city centre, no Canary Wharf ▪ Structural differences European vs US office markets ▫ Different interest rate environment ▫ Lower vacancy rates in European markets ▫ Longer investment horizons in Europe ▫ Tighter interest rate hedges in Europe ▫ Higher equity share / limited subordinated debt structures in Europe resulting in lower LTVs ▫ Longer commuting time and larger homes in the US, European cities offer larger mix of attractive areas to live and work ▫ Subleasing not common in Europe LTV < 60%: 95% France: 37% UK: 23% Poland: 12% Sweden: 9% Italy: 5% Germany: 5% Belgium: 4% Finland: 2% others: 3% € 5.4 bn >
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27 Appendix Funding, Liquidity & Capital
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Funding & Liquidity Diversified funding sources and distribution channels 28 Senior unsecured PfandbriefeDeposits: Housing industry Deposits: Retail clients € Deposits: Inst. customers
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29 Funding & Liquidity Strong Mortgage Cover Pool and Aaa Rating for Pfandbriefe Cover Pool by Country € mn As at 31.03.2025 Cover Pool by Property Type Share within cover pool 268336195 1,518 384 1,968 3,456 82 718 345 57 1,039 178 1,779 471 159 1,298 108 2,735 0% 3% 6% 9% 12% 15% 18% 21% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 AU BE DK DE FI FR UK IR IT CA LU NL AT PO SE CH ES CZ US Hotel: 28% Office: 29% Logistic: 18% Retail: 16% Residential: 8% Others: 1% € 17.1 bn Pfandbrief funding cornerstone of wholesale issuance ▪ Cover pool of € 17.8 bn incl. € 0.7 bn substitute assets diversified over 18 countries ▪ High quality assets: first-class mortgage loans (mortgage-lending-value 56.0%) ▪ Mortgage-lending-value with high discount from market-value ▪ Avg. LTV of the mortgage cover pool 35.3% ▪ The Pfandbriefe are rated 'Aaa’ by Moody`s ▪ Over-collateralisation on a PV basis as of 31.03.2025: 17.7% ▪ High diversification within property types and countries
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Funding & Liquidity MREL capacity well above regulatory requirements 30 MREL capacity vs. requirements (31.12.2024) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 overall subordinated TREA LRE 1) (Subordinated) MREL Requirements came into effect as of January 21, 2025. MREL-TREA requirement includes the combined buffer requirement (CBR). 2) Based on 2025 requirements in relation to current RWAs (phase-in) and leverage ratio exposure ▪ Senior Preferred have significant protection from subordinated liabilities and own funds ▪ Run-down of subordinated liabilities well manageable, after 5 years cet.par. still comfortably complying with requirements ▪ (Subordinated) MREL ratios as at 31.12.2024: % TREA LRE Actual 48.54 14.84 Requirements1) 24.30 8.03 Ample buffer MREL requirements2)MREL capacity Subord. Liabilities (1-5y) € mn Subord. Liabilities (> 5y) Own Funds
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31 Funding & Liquidity Ratings reflect strong credit profile based on solid capital and liquidity position Financial Ratings ESG-Ratings Fitch Ratings Issuer default rating (Stable) BBB Short-term issuer rating F2 Deposit rating BBB+ Senior preferred BBB+ Senior non preferred BBB Viability rating BBB Subordinated debt (Tier 2) BB+ Additional Tier 1 BB- Moody‘s Issuer rating (stable) Baa1 Short-term issuer rating P-2 Senior preferred Baa1 Senior non preferred Baa3 Bank deposit rating Baa1 BCA Ba1 Mortgage Pfandbriefe Aaa MSCI A ISS-ESG prime (C) Sustainalytics Low (20-10) CDP Awareness Level C Note: ESG-Ratings and Benchmarks as at 08.04.2025
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Interest payments and ADI of Aareal Bank AG Available Distributable Items (as of end of the relevant year) 32 31.12. 2021 31.12. 2022 31.12. 2023 31.12. 2024 € mn Net Retained Profit ▪ Net income ▪ Profit carried forward from previous year ▪ Net income attribution to revenue reserves 96 30 66 - 61 61 - - 452 391 61 - 2,440 1,988 452 - + Other revenue reserves after net income attribution 840 936 936 936 = Total dividend potential before amount blocked 936 997 1.388 3.376 ./. Dividend amount blocked under section 268 (8) of the German Commercial Code ./. Dividend amount blocked under section 253 (6) of the German Commercial Code 386 36 466 24 487 6 503 - = Available Distributable Items 515 507 895 2,873 + Increase by aggregated amount of interest expenses relating to Distributions on Tier 1 Instruments 20 21 29 33 = Amount referred to in the relevant paragraphs of the terms and conditions of the respective Notes as being available to cover Interest Payments on the Notes and Distributions on other Tier 1 Instruments 535 529 924 2,9061) Note: Calculation refers to unrounded numbers 1) € 1,941 mn to be distributed in March 2025 acc. to proposed dividend distribution
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33 Appendix ESG
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34 ▪ We are aware of our responsibility for the environment and strive to make a positive contribution to a green future ▪ Our aim is to integrate ESG considerations into all business decisions ▪ We are committed to transparency, integrity and continuous improvement and to working together with our clients for a sustainable world ▪ Deep integration of ESG into business, credit, investment, risk and funding strategies ▪ Comprehensive Green Finance Framework in place (for both lending and liabilities) ▪ Continuously leveraging our Green product portfolio ▪ Consistently positive ESG-rating results rewarding Aareal’s ESG performance …because it is important to us We are fostering the transition… ESG is fundamental to our business and our corporate strategy Supporting our clients on their „Road to Paris“ Real Estate is transitioning to a more… …sustainable digitized and connected future
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35 Aareal Bank “Green Finance Framework – Lending” put into place ▪ Aareal Bank‘s Green Finance Framework – Lending confirmed through a Second Party Opinion (SPO) by Sustainalytics ▪ Ambition to extend ESG assessment in our day-to-day lending activities ▪ Explicit customer demand for Aareal Bank’s green lending approach identified internationally and interest is high for the new product ▪ Green lending within a regularly updated framework provided Aareal Bank “Green Finance Framework – Liabilities” forms basis for Green Bonds ▪ In addition to the lending framework, Aareal Bank has implemented an accompanying and regularly updated liability-side / use-of-proceeds framework - confirmed through SPO by Sustainalytics - that allows issue of green financing instruments ▪ “Green Finance Framework – Liabilities” is intended to not only reflect our sustainable lending activities but also our strategic approach towards sustainability ▪ Bond issues under this framework invite open discussion and engagement with investors on the progress we have made and, on the path, forward ESG in our daily business Deep integration of ESG in our lending and funding activities ESG in our lending business ESG in our funding activity Continue to enlarge climate transparency in the portfolio ▪ Portfolio transparency and data accumulation significantly improved for both existing and new lending and to be continued ▪ Publication of first detailed report on financed carbon emissions of our Commercial Real Estate Financing portfolio in 2024 (in accordance with the Partnership for Carbon Accounting Financials (PCAF) standard)
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40% of CREF portfolio classified as Green Property Financings 36 Green Property Financings2) by region € 12.9 bn1) or 40% of total CREF portfolio fulfilling Aareal’s Green Finance Framework and are classified as “Green Property Financings”, thereof ▪ € 5.3 bn included in green asset pool for underlying of Green bond issues ▪ € 7.6 bn green property financings not (yet) included Europe West 30% Europe South 16% Europe East 16% Germany 11% Europe North 10% North America 16% Asia / Pacific 1% € 12.9 bn Office: 36% Logistic: 25% Retail: 20% Hotel: 15% others: 4% € 12.9 bn Green Property Financings2) by property type CREF1) portfolio Included in green asset poolCREF portfolio Not (yet) included 40% 1) CREF excluding business not directly collateralized by properties Portfolio data as at 31.03.2025 – ESG Data as at 31.03.2025 2) Valid certificate is documented € 7.6 bn € 5.3 bn Green Asset Pool € 12.9 bn Green Property Financings
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SEVERE (40+) HIGH (40-30) MEDIUM (30-20) LOW (20-10) NEGLIGIBLE (10-0) ▪ Aareal is at low risk of experiencing material financial impacts from ESG factors, due to its medium exposure and strong management of material ESG issues (negligible or low risk rating in five out of six material ESG issues) ▪ Still “Low” risk classification (18.1), Rank 217 of 1,040 in Sector Banks, 16 of 102 in Thrifts and Mortgages since 2022 D- AD C- C B- B A- ▪ Awareness Level C in CDP’s Climate Change survey, which affirms that Aareal recognizes the linkage between environmental issues and its business activities. since 2025 B BB BBB AAA AAACCC ▪ ‘A’ rating shows solid ESG performance in managing the most significant ESG risks and opportunities relative to industry peers ▪ Above average score in social issues (4.6) vs. Industry average (3.8) since 2024 37 ESG Rating results rewarding Aareal’s sustainability performance ▪ Prime Status confirms ESG performance above sector-specific Prime threshold, which means Aareal fulfils ambitious absolute performance requirements ▪ Range of 126 rated companies in the Mortgage & Public Sector Finance sector between D and B, Aareal on Decile Rank 2 since 2024 Prime threshold D- D D+ C- C C+ B- B B+ A- A A+ Note: Results and Benchmarks as of 08/04/2025
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38 Appendix Group Results
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Aareal Bank Financial performance 3M 2025 39 1) The previous year’s figures only refer to those activities then presented as continuing operations (excl. non-controlling interests) 2) Including items recognised at fair value through profit and loss 3) Costs for efficiency measures, IT infrastructure investments and other material non-recurring effects 4) Previously: consolidated net income allocated to ordinary shareholders 01.01.- 31.03.20241) 01.01.- 31.03.2025 € mn Net interest income 268 249 Net commission income -2 1 Loan impairment charges (LICs) 2) -86 -55 Administrative expenses (adjusted) 3) -82 -88 Other items -5 - Adjusted operating profit3) 93 107 Non-recurring effects -2 -7 Operating profit 91 100 Income taxes -24 -27 Interest on the AT1 bond -8 -13 Net profit4) 59 60
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Aareal Bank Segment results 3M 20251) 40 A a r e 01.01.- 31.03. 2024 01.01.- 31.03. 2025 01.01.- 31.03. 2024 01.01.- 31.03. 2025 01.01.- 31.03. 2024 01.01.- 31.03. 2025 01.01.- 31.03. 2024 01.01.- 31.03. 2025 € mn Net interest income 203 190 65 59 0 0 268 249 Loss allowance -83 -54 0 0 -83 -54 Net commission income -1 1 -1 0 0 0 -2 1 Net derecognition gain or loss 3 4 3 4 Net gain or loss from financial instruments (fvpl) -17 1 -1 0 -18 1 Net result from hedge accounting 8 -4 8 -4 Net gain or loss from investments accounted for using the equity method 1 1 Administrative expenses -60 -70 -24 -25 0 -84 -95 Net other operating income / expenses 0 -3 -1 0 0 0 -1 -3 Operating profit 53 65 38 35 0 0 91 100 Income taxes -12 -17 -12 -10 -24 -27 Consolidated net income before sold operations 41 48 26 25 0 0 67 73 Net income from sold operations 6 6 Consolidated net income 41 48 26 25 6 0 73 73 Allocation of results Cons. net income attributable to non-controlling interests 0 0 0 0 2 2 0 Cons. net income attributable to shareholders of Aareal Bank AG 41 48 26 25 4 0 71 73 Structured Property Financing Consolidation / Reconciliation Aareal Bank Group Banking & Digital Solutions 1) Presentation in line with the structure prescribed by IFRS 5
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41 Appendix Definitions and contacts
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42 Definitions New Business New business = Newly acquired business + renewals Common Equity Tier 1 ratio CET 1 Risk weighted assets CIR Admin expenses (excluding bank levy/deposit guarantee scheme and one-off costs) Net income Net income Net interest income + Net commission income + Net derecognition gain or loss + Net gain or loss from financial instruments (fvpl) + Net gain or loss on hedge accounting + Net gain or loss from investments accounted for using the equity method + Net other operating income / expense Net stable funding ratio Available stable funding Required stable funding Liquidity coverage ratio Total stock of high quality liquid assets Net cash outflows under stress Yield on Debt NOI x 100 (Net operating income, 12-months forward looking) Outstanding incl. prior/pari-passu loans CREF-portfolio Commercial real estate finance portfolio excl. private client business and WIB’s public sector loans REF-portfolio Real estate finance portfolio incl. private client business and WIB’s public sector loans Exposure (performing) Maximum [actual commitment (performing) or Outstanding (performing)] = = = = = = = = = (without developments) =
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Contacts Jürgen Junginger Head of Treasury-Investor Relations Managing Director Phone: +49 611 348 2636 juergen.junginger@aareal-bank.com Sebastian Götzken Director Treasury-Investor Relations Phone: +49 611 348 3337 sebastian.goetzken@aareal-bank.com Carsten Schäfer Director Treasury-Investor Relations Phone: +49 611 348 3616 carsten.schaefer@aareal-bank.com 43 Ralf Löwe Head of Treasury Managing Director Phone: +49 611 348 3001 ralf.loewe@aareal-bank.com Christopher Linnert Head of Funding Director Treasury Phone: +49 611 348 3889 christopher.linnert@aareal-bank.com Sandro Wieandt Assistant Vice President Treasury Phone: +49 611 348 3883 sandro.wieandt@aareal-bank.com
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44 Disclaimer © 2025 Aareal Bank AG. All rights reserved. This document has been prepared by Aareal Bank AG, exclusively for the purposes of a corporate presentation by Aareal Bank AG. This presentation may contain forward-looking statements. Forward looking statements are statements that are not historical facts; they include statements about Aareal Bank AG's beliefs and expectations and the assumptions underlying them; and they are subject to known and unknown risks and uncertainties, most of them being difficult to predict and generally beyond Aareal Bank AG’s control. This could lead to material differences between the actual future results, performance and/or events and those expressed or implied by such statements. Aareal Bank AG assumes no obligation to update any forward-looking statement or any other information contained herein. This presentation is provided for general information purposes only. It does not constitute an offer to enter into a contract on the provision of advisory services or an offer to purchase securities. As far as this presentation contains information from third parties, this information has merely been compiled without having been verified. Therefore, Aareal Bank AG does not give any warranty, and makes no representation as to the completeness or correctness of any such information or opinion contained herein. Aareal Bank AG accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation. The securities of Aareal Bank AG are not registered in the United States of America and may not be offered or sold except under an exemption from, or pursuant to, registration under the United States Securities Act of 1933, as amended.
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