Hamborner Reit Ag · XETR:HABA

Hamborner Reit — Investor Presentation (November 2016)

36 slides from Hamborner Reit's investor presentation, November 2016

  1. Slide 1: Company Presentation

    Company Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz November 2016

  2. Slide 2: Agenda

    Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation November 2016 2

  3. Slide 3: Historical development of the company

    History / Capital markets track record Historical development of the company Mining 1953 Foundation of the company: HAMBORNER founded as a mining company 1954 Listed on stock exchange as HAMBORNER Bergbau AG 1969 Integration of the mining activities into Ruhrkohle AG Asset 1970 Continuation of HAMBO

  4. Slide 4: Real Estate Investment Trust (REIT) requirements for G-REITs

    History / Capital markets track record [R]eal [E]state [I]nvestment [T]rust (REIT) Requirements for G-REITs  Listing on the regulated market  at least 45 % equity-ratio  > 15% free float  > 75% of assets must be real estate assets  > 75% of revenues must stem from real estate assets  > 90% of

  5. Slide 5: Lean corporate structure – no holding/parent companies

    History / Capital markets track record Lean corporate structure – no holding/parent companies HAMBORNER REIT AG 2 34 board members employees  Directly owned property  Internal management of REIT  German-wide portfolio  Only infrastructural building services externally  Market value of propertie

  6. Slide 6: Growing market capitalization and increasing free float

    History / Capital markets track record Growing market capitalization and increasing free float Overview events Historic market cap (€ million)  2007: Start of new strategy 751  2010: Achievement of G-REIT status and change of 596 company name to HAMBORNER REIT AG  October 2010: Successful Capital

  7. Slide 7: HAMBORNER REIT AG share

    History / Capital markets track record HAMBORNER REIT AG share Development of share price and turnover 130% 800.000 700.000 120% 600.000 110% 500.000 100% 400.000 300.000 90% 200.000 80% 100.000 70% 0 10.15 11.15 12.15 01.16 02.16 03.16 04.16 06.16 07.16 08.16 09.16 10.16 HAB VOLUME Total HAB SDAX E

  8. Slide 8: Agenda

    Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation November 2016 8

  9. Slide 9: Well defined acquisition strategy

    Portfolio-Management Well defined acquisition strategy Acquisition strategy Asset focus  Regional diversification in high-growth regions in West and  Focus on quality properties, location and property strategy South-West Germany determined by asset type:  Focus on towns and cities outside the mai

  10. Slide 10: Balanced portfolio with 100% German focus

    Portfolio-Management Balanced portfolio with 100% German focus (as at 30 September 2016) Geographical portfolio spread (incl. recent acquisitions) Diversification of asset types  67 properties in 55 cities in Germany  Focus on West and South-West Schleswig- Holstein  € 955 million portfolio value

  11. Slide 11: Regional diversification

    Portfolio-Management Regional diversification (as at 30 September 2016) Federal State Number of objects Share in the market value of total portfolio North Rhine-Westphalia 22 23% Bavaria 9 21% Baden-Wurttemberg 9 15% Hesse 8 10% Lower Saxony 6 8% Berlin 2 7% North NorthRhine- Rhine- Westphalia Westp

  12. Slide 12: Portfolio Development

    Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 955 900 Change of strategy 717 692 580 504 376 308 281 273 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016 Company Presentation November 2016 12

  13. Slide 13: Increasing value per asset through acquiring larger assets

    Portfolio-Management Increasing value per asset through acquiring larger assets Portfolio split by property value Average value per asset (in € million) 31/12/2006 (100% = 54 properties) 30/09/2016 (Number of properties = 67) > € 10 million 14.3 € 5-10 million 13.0 4% 15% 10.5 9.6 8.4 81% 7.3 <€5 6.

  14. Slide 14: Investments: Transfer of possession in 2016

    Portfolio-Management Investments Transfer of possession in 2016 Lübeck (Haerder-Center) Ditzingen Sandstraße Dieselstraße Built 2008 2016 Main tenant H&M, New Yorker, REWE, mytoys hagebaumarkt Leased area approx. 13,300 m2 approx. 10,000 m2 Annual rental income € 3.3 million € 0.9 – 1.0 million (ste

  15. Slide 15: Investments: Transfer of possession in 2016

    Portfolio-Management Investments Transfer of possession in 2016 Mannheim (Kurpfalz Center) Spreewaldallee Built 1972 (modernized and expanded in 2012/2013) Main tenant Real, Toys‘R‘Us, ALDI, dm, Adler Mode, Golf House Leased area approx. 28,000 m2 Annual rental income € 4.1 million Remaining term(1)

  16. Slide 16: Investments: Purchase contracts signed in 2016

    Portfolio-Management Investments Purchase contracts signed in 2016 Münster (Deilmann-Park) Kiel Martin-Luther-King-Weg 30/30a Kaistraße Built 2016 2017 (under construction) Main tenant FOM Barmer GEK Leased area approx. 3,300 m2 approx. 6,550 m2 Annual rental income € 0.43 million € 1.16 million Rem

  17. Slide 17: Investments: Purchase contracts signed in 2016

    Portfolio-Management Investments Purchase contracts signed in 2016 Hanau (Rondo Steinheim) Dortmund (DOMI) Otto-Hahn-Straße Ostenhellweg Built 2017 (under construction) 1948 (modernized and expanded in 2003) Main tenant REWE, ALDI, dm, Deichmann TK Maxx, Das Depot, O2, Dialysis centre Leased area ap

  18. Slide 18: Divestments 2016

    Portfolio-Management Divestments 2016 Duisburg Dinslaken Solingen Essen Price: € 2.64 million Price: € 1.94 million Price: € 3.17 million Selling price: € 3.26 million Transfer of poss. 28/01/2016 Transfer of poss. 28/01/2016 Transfer of poss. 28/01/2016 Transfer of poss. 02/08/2016 Total # of prope

  19. Slide 19: Divestments since change of strategy in 2007

    Portfolio-Management Divestments since change of strategy in 2007 € 68.8m € 67.1m +2.5% +54.0% € 44.6m Disposal of 25 commercial properties: € 66.9m → Average selling price: € 2.8m → Average multiple: 15.3 → Total annual rental income: € 4.8m Book Value Fair Value Selling Price at time of disposal a

  20. Slide 20: Agenda

    Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation November 2016 20

  21. Slide 21: High and stable occupancy

    Asset-Management High and stable occupancy Occupancy rates 100% 80% 60% 95.7% 98.2% 97.9% 96.5% 97.5% 98.2% 98.1% 97.5% 97.7% 98.1% 98.6% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016 → Vacancy rate as at 30/09/2016 incl. rent guarantees: 1.4 % → Vacancy rate as at 30/09/2016

  22. Slide 22: Long-term leases

    Asset-Management Long-term leases Weighted average lease expiry by type (30/09/2016, in years) 9.4 6.6 4.5 4.9 Office Highstreet Large-scale Total retailing Split of lease contracts expiring by year (30/09/2016) 37% 14% 12% 1% 8% 8% 9% 6% 5% 2016 2017 2018 2019 2020 2021 2022 2023 2024 and later Com

  23. Slide 23: Solid tenants

    Asset-Management Solid tenants Top 10 tenants (30/09/2016, % of annual rent) Tenant Sector % of annual rent* EDEKA-Group Discount food retail 12.5% Kaufland Group Discount food retail 7.9% OBI Retail (DIY) 7.0% real,- Discount food retail 5.1% Jobcenter Government Agency 4.4% H&M Textile retail 2.7%

  24. Slide 24: Agenda

    Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation November 2016 24

  25. Slide 25: Strong first three quarters 2016

    Financial Figures / Financial Position Strong first three quarters 2016 Highlights  Positive operational business development  Increase of income from rents and leases: + 18.7 %  FFO increase: + 20.9 %  Vacancy rate: 1.4% (1.7% excl. rent guarantees)  Total portfolio volume: approx. € 955 milli

  26. Slide 26: Significant key figures for first three quarters 2016

    Financial Figures / Financial Position Significant key figures for first three quarters 2016 Key figures Q1-Q3 2016 Q1-Q3 2015 Change Rental revenues € 45.3 million € 38.2 million + 18.7 % Operating result € 20.6 million € 18.1 million + 14.3 % Profit for the period € 14.1 million € 8.6 million + 63

  27. Slide 27: Portfolio development 2016/2017

    Financial Figures / Financial Position Portfolio development 2016/2017 Portfolio value Portfolio value € 1,130 million € 1,072 million Portfolio value € 955 million Portfolio value € 900 million Transfer of possession Transfer of possession Transfer of possession Q1-Q3 2016 Q4 2016 2017 Lübeck (€ +5

  28. Slide 28: Benefitting from economies of scale

    Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1200 30% 2006 22.2 % 1000 955 900 800 20% 692 717 580 600 504 400 376 10% 308 281 273 186 Q3 2016 200 8.3 % 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016

  29. Slide 29: Stable and predictable cost of debt

    Financial Figures / Financial Position Stable and predictable cost of debt Expiration of fixed interest rates (30/09/2016; % of total financial debt) 30/09/2016  Financial debt: € 416.5 million Follow-up financing  Liquid funds: € 118.9 million 2016 & 2017 completed  REIT equity ratio: 68.3 %  L

  30. Slide 30: Lower marginal funding costs

    Financial Figures / Financial Position Lower marginal funding costs Average cost of debt 5.12% 5.01% 4.77% 4.56% 4.48% 4.42% 3.92% 3.92% 3.31% 3.20% 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 30 Sep 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Company Presentation November 2

  31. Slide 31: Low LTV, equity ratio well within REIT criteria

    Financial Figures / Financial Position Low LTV, equity ratio well within REIT criteria Loan-to-value (%) ----------------------------------------------- Maximum Target LTV = 50% --------------------------------------------- Figures: 43.7% 43.3% → LTV 39.1% 34.2% 35.0% 30/09/2016: 28.5% 28.1% 28.5% 2

  32. Slide 32: Increasing FFO and dividend per share

    Financial Figures / Financial Position Increasing FFO and dividend per share Funds From Operations (FFO) per share (in €) 2x Capital Increases Capital 62.0 Increase 50.0 Capital 45.5 45.5 45.5 Increase 29.2 34.1 34.1 24.6 # shares in million 23.8 22.7 22.7 18.9 16.0 FFO absolute (€m) 12.2 8.5 9.7 0.

  33. Slide 33: Conclusion and outlook

    Conclusion and outlook 1. Conclusion  Positive development of operational business  Vacancy rate 1.4 % incl. rent guarantees  Transfer of possession of Haerder Centre in Lübeck and DIY store in Ditzingen  Transfer of possession of Kurpfalz Centre in Mannheim on 1st October 2016  Disposal of ass

  34. Slide 34: Many thanks for your attention! Financial Calendar

    Financial Calendar HAMBORNER REIT AG Preliminary figures 2016 09 February 2017 Annual report 2016 28 March 2017 Interim Report for 1st quarter 2017 09 May 2017 AGM 2017 10 May 2017 Interim Report for 1st half 2017 08 August 2017 Interim Report for 3rd quarter 2017 09 November 2017 Many thanks for yo

  35. Slide 35: Contact

    Contact Dr. Rüdiger Mrotzek – Member of the Board T +49 (0)203 / 54405-55 M r.mrotzek@hamborner.de Hans Richard Schmitz – Member of the Board T +49 (0)203 / 54405-21 M h.schmitz@hamborner.de Christoph Heitmann – Investor Relations T +49 (0)203 / 54405-32 M c.heitmann@hamborner.de Company Presentatio

  36. Slide 36: Disclaimer

    Disclaimer This presentation was exclusively prepared for the addresses specified on the title page and/or the participants at the mentioned event. The information in this presentation is based on both public information and documents as well as information which was made available to HAMBORNER REIT

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