Rating

Financial Policy

• Strive to Achieve A global rating in the long term
• LTV limit at 45%
• Debt to debt-plus-equity ratio at 45% (or lower) on a sustainable basis
• Maintaining conservative financial ratios with a strong ICR
• Unencumbered assets above 50% of total assets
• Long debt maturity profile
• Good mix of long term unsecured bonds and non-recourse bank loans
• Dividend of 65% of FFO I per share

S&P Anchor Rating Matrix

In December 2017, Aroundtown's ("AT") credit rating was upgraded to 'BBB+' by Standard and Poor’s Rating Services ("S&P"). The rating increase followed the 'BBB' rating assigned by S&P in June 2016, acknowledging Aroundtown’s increased scale and scope, enhanced diversification and the continuously strong like-for-like rental income growth. Further, S&P acknowledged Aroundtown's well balanced portfolio across multiple asset types and regions with no dependency on a single tenant, asset type or region, underlining the company's strong business risk profile. An integral part of Aroundtown's strategy is to achieve a rating of 'A'.

Aroundtown holds a significant stake in Grand City Properties ("GCP"), a leading market player in the German residential real estate market. GCP is listed on the Prime Standard of the Frankfurt Stock Exchange and is an MDAX constituent. GCP maintains investment-grade ratings from two leading credit rating agencies, S&P ('BBB+') and Moody's ('Baa1'), with a long-term target rating of A-.