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Invest in Bulgarian Farmland with ATERA REIT - High Growth, Low Volatility, Reliable Cash-Flow

Explore why investing in Bulgarian farmland through ATERA Real Estate Investment Trust (REIT) offers high growth potential, low volatility, undervalued assets in the EU, reliable cash-flow from rents, and strong performance compared to traditional investments.

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Invest in Bulgarian Farmland with ATERA REIT - High Growth, Low Volatility, Reliable Cash-Flow

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  1. Investor day15 November 2016

  2. ATERA at a glance

  3. Main characteristics of ATERA BSE ticker: 6A6 (former ATERA) Bloomberg ticker:6A6:BU

  4. Why invest in Bulgarian farmland? (1/2) • High growth and low volatility Calculations: Advance Terrafund Performance of MSCI EM EE, Bulgarian farmland and SOFIX *MSCI EM Eastern Europe index covers large and mid cap companies from the region **SOFIX is the official BSE index, based on the market cap of the 15 most liquid companies

  5. Why invest in Bulgarian farmland? (1/2) • BG farmland is seriously undervalued in comparison with the farmland in EU • Low correlation to traditional retail investments • Reliable cash-flow from rents Average prices in European countries in EUR/ha Source: Media publications 2016

  6. 272% land price growth for 10 years Bulgarian farmland market Source: Ministry of Agriculture and Food Supply, System for AgriMarket Information and National Statistical Institute

  7. What is a REIT? Real Estate Investment Trust (REIT) characteristics:

  8. Our organizational structure

  9. Our shareholder’s structure • Number of ordinary shares - 85 110 091 • Total number of shareholders - 1 665 • 26% foreign ownership of the market cap Source: Shareholders’ Book as of September 30, 2016

  10. Our business model

  11. Our land investments Source: Advance Terrafund as of December 31, 2015

  12. Our farmland by planning regions • Total 23 204ha of agricultural land • Average land portfolio price 2429 €/ha Source: Advance Terrafund as of September 30, 2016

  13. The most fertile soils are 1, 2, 4 Danube River Danube Valley • Legend • Chernozems (Black soils) • Grey forest soils • Planosols • Smolnitza & Cinnamonic forest soils • Cinnamonic forest soils • Brown forest soils • Mountain meadow soils Source: INSTITUTE OF SOIL SCIENCE “N. POUSHKAROV”

  14. Our farmland by regions in ha Source: Advance Terrafund as of September 30, 2016

  15. Our leased land Source: Advance Terrafund as of October 31, 2016 Page 15

  16. Our land banking • Land banking - sale of agricultural land, which is concentrated or consolidated in one village, while still acquiring separated land plots in other villages • Total acquired farmland since foundation 47 000 ha versus 23 900 ha total sold • Land consolidation - the company has finished 4 projects and participates in 11 other projects Land sales of ATERA Source: Advance Terrafund as of September 30, 2016

  17. Farmland market • Factors: • The world grain storage is the highest for the last 30 years • World wheat and corn prices - the lowest for the last 8 years • Lower oil price: • lower demand of agroproducts for biofuel production • lower grain and oil seed prices • Wheat production in Bulgaria in 2016 – highest level for the last 36 years • Grain and oil seed prices in Bulgaria in 2016 – 10% lower than 2015 on average • 15% higher cost prices for Bulgarian grain and oil seed producers • Forecast: • World grain and oil seed prices will remain at very low levels • Slight farmland sale price decrease • Slight rent price decrease Page 17

  18. Land portfolio turnover Source: Advance Terrafund

  19. Our key financial indicators • Total raisedcapital since foundation EUR 65.7 mn • Total distributed dividendssince foundation EUR 70.8mn • Net income distribution for dividends ~100% • No debt financing Source: Advance Terrafund

  20. Dividend yield The dividend yields of ATERA exceed these of SOFIX* *SOFIX is the official BSE index, based on the market cap of the 15 most liquid companies Source: REUTERS

  21. Performance of SOFIX and ATERA Since its foundation ATERA totally outperforms SOFIX* *SOFIX is the official BSE index, based on the market cap of the 15 most liquid companies Source: www.Infostock.bg

  22. Attachment ATERA’s balance sheet All amounts are in thousands BGN

  23. Attachment ATERA’s income statement Amounts are in thousands BGN unless indicated otherwise

  24. Attachment GDP growth in CEE countries Modest GDP growth forecast in Bulgaria compared to the other CEE countries

  25. Attachment Stock exchange markets in CEE Bulgarian market in Q3 2016 tries to compensate the drop in 2015 Source: Karoll Capital Management

  26. Contact Atanas Dimitrov Investor Relation Director Advance Terrafund REIT adimitrov@karoll.bg 1 Zlatovruh Str. 1164 Sofia BULGARIA Tel: +35924008332 www.advanceterrafund.bg

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