Very large portfolio of income-producing residential property assets, worth about €24 billion as of Dec. 31, 2015. Good asset localization, mainly in German cities that enjoy healthy economic and demographic trends. Strong rental income supported by highly diversified asset and tenant bases, high-occupancy and long average lease duration. Market leadership in Germany and a track record of successful integration of recent acquisitions, supporting continuous growth in wealthier and populous regions of Germany. Full geographical focus, and therefore reliance, on Germany and its currently strong economic conditions. Significant debt leverage with debt-to-debt-plus-equity ratio at around 55% on average. High investments and leverage policy constraining ability to further reduce the debt burden. Limited financial flexibility from the low proportion of unencumbered asset
