Copenhagen Property Market Report 2020

010% 015% 020%

Total return

00% 05%

Property Price Index

17

Copenhagen Property Market Report 2020

0-15% 0-10% 0-5%

19 18 17 16 15 14 13 12 11 10 09 08 07 06 05 04 03 02 01 00

Total return

Income return

Capital growth

Positive capital growth seven years running

30%

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

00

19 18 17 16 15 14 13 12 11 10 09 08 07 06 05 04 03 02 01

Total return

Income return

Capital growth

Note: Total return, income return and capital growth for commercial property in the Greater Copenhagen area. Source: Colliers

Commercial property produces attractive risk-adjusted returns

Commercial property continues to outperform bonds

0 100 200 300 400 500 600

2019

2000-2019

Return

Mean return

Risk Sharpe ratio

MSCI Denmark, Gross Total Return Nordea benchmark, 7-year bond Commercial property, Greater Copenhagen 1

31.6% 12.8% 24.6%

0.41

3.1% 5.3% 4.9%

0.52

11.8% 9.7% 5.9%

1.18

19 18 17 16 15 14 13 12 11 10 09 08 07 06 05 04 03 02 01 00

MSCI Denmark Gross Total Return Index Nordea benchmark 7-year bond Commercial property, Greater Copenhagen

Note: Average return and risk on commercial property, stocks and bonds. Sharpe ratio is calculated as follows:

[ E( r p ) — r f ] σ p E( r p ) = Expected return of asset p r f = Risk free return rate σ p = Standard deviation of portfolio Sources: MSCI, Nordea and Colliers

Note: Historical total return on Greater Copenhagen commercial property, stocks and bonds (index 100 = 2000). Sources: MSCI, Nordea and Colliers

1 Please note that the Colliers property price index is based on observations recorded throughout the whole year and therefore the return computed is an average across the year compared to the average across the previous year.