Slide 1: Company presentation
Company presentation Niclas Karoff Hans Richard Schmitz August 2020
Slide 2: Agenda
Agenda 1. HAMBORNER at a glance 2. Portfolio overview 3. Asset Management 4. Financials 5. Strategy update 6. Appendix Company presentation | August 2020 2
Slide 3: History and company profile
History and company profile History Company profile ▪ Public commercial property company 1953 Foundation of HAMBORNER ▪ Profitable and diversified German-wide property portfolio 1954 Listing on stock exchange ▪ “Two-pillar” portfolio structure with focus on 2009 Clear focus on commercial properties
Slide 4: The HAMBORNER share
The HAMBORNER share The HAMBORNER share Shareholder structure Current share price € 8.69 as of 05/08/2020 12,45% RAG Foundation Market capitalization € 693m WKN / ISIN 601300 / DE0006013006 5,57% BlackRock 79.717.645 Ticker symbol HAB shares 4,95% Belfius Insurance Class of shares Bearer shares Exch
Slide 5: Agenda
Agenda 1. HAMBORNER at a glance 2. Portfolio overview 3. Asset Management 4. Financials 5. Strategy update 6. Appendix Company presentation | August 2020 5
Slide 6: Portfolio development
Portfolio development Development of the HAMBORNER portfolio value (€ million) 1,598 1,631 1,517 1,363 1,115 900 692 717 580 504 376 281 273 308 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Aug 2020 HAMBORNER with steady growth track record Company pres
Slide 7: € 1,631m 82 Properties 60 Cities
Portfolio structure 82 Properties € 1,631m Schleswig- 60 Cities Portfolio value Holstein Mecklenburg- Western Pomerania Bremen Annualised rental income Lower Saxony Berlin Saxony- Brandenburg Anhalt Office North Rhine-Westphalia Saxony Large-scale Thuringia Hesse retail 37.0% 100% 46.0 % Rhineland-
Slide 8: Portfolio structure
Portfolio structure Portfolio split by property value Average value per asset (€ million) 31 December 2006 August 2020 (Number of properties = 82) > € 10m 19.5 19.4 19.9 18.4 € 5-10m 4% 15% 16.2 100% = 54 properties 13.0 81% 10.5 < € 5m 9.6 8.4 August 2020 < €5m 7.3 11% 6.1 100% 21% €5-10m = 82 prop
Slide 9: Investments 2020
Investments 2020 Neu-Isenburg Bonn Aachen Siemensstrasse Soenneckenstrasse Gut-Dämme-Strasse Asset type Office Office Office Year of construction 2019 2019/2020 2019/2020 Main tenants UBL, Köster Barmer, Bonnfinanz Barmer Leased area 4,500 m2 6,200 m2 8,200 m2 Remaining lease term 5.8 years(1) 11.8
Slide 10: Disposal 2020
Disposal 2020 Osnabrück Asset type: High Street Retail Selling price: €5.9 million WALT: 1.8 years Annual rental income: €0.3 million Book value(1): €3.1 million Transfer of possession: Q3/Q4 2020e Disposal of High Street Retail asset in line with HAMBORNER portfolio strategy Company presentation |
Slide 11: Agenda
Agenda 1. HAMBORNER at a glance 2. Portfolio overview 3. Asset Management 4. Financials 5. Strategy update 6. Appendix Company presentation | August 2020 11
Slide 12: Rental situation and lease contracts
Rental situation and lease contracts Occupancy rates (in %) Weighted average lease expiry (as of 30 June 2020; in years) Retail 7.5 98.7 98.6 98.7 98.7 98.0 98.2 8.4 5.1 5.5 6.4 4.1 2015 2016 2017 2018 2019 H1 Office Large-scale High street Other Total 2020 retail retail retail portfolio Lease expir
Slide 13: Solid tenant base
Solid tenant base Top 10 tenants (as of 30 June 2020) Sector distribution (as of 30 June 2020) Tenant Sector Rent(1) Sector Rent(1) EDEKA Food retail 11.5% Food 32.4 % Kaufland Food retail 5.7% IT/Communication 10.0% REWE Food retail 5.3% Textile 9.4% DIY 7.9% Real Food retail 5.2% Finance/Insurance
Slide 14: Rental operations – Corona Update
Corona Update Rental operations – Corona Update Rent collection rates(1) (as of 31 July 2020) Rent deferrals/reductions(1) (as of 31 July 2020) Impact of legal moratorium Waivers to date limited to for rent deferrals c. 100 tenants a total volume of € 0.5m(2) 10.0% and rent deferrals to a 99.4% 0.3%
Slide 15: Rental operations – Corona Update
Corona Update Rental operations – Corona Update Asset management achievements (as of 31 July 2020) ▪ Trustworthy cooperation with our tenants to counter adverse impacts from Corona lock-down ▪ Negotiations of rent deferrals and reductions (waivers) as well as contract prolongations ▪ Early prolongat
Slide 16: Agenda
Agenda 1. HAMBORNER at a glance 2. Portfolio overview 3. Asset Management 4. Financials 5. Strategy update 6. Appendix Company presentation | August 2020 16
Slide 17: Key figures H1 2020
Key figures H1 2020 Key figures H1 2020 H1 2019 Change Income from rents and leases € 43.9 million € 42.3 million +3.7% Rents like-for-like -0.3% -0.1% Operating result € -0.8 million € 16.9 million -104.7% Profit for the period € -8.5 million € 9.2 million -192.2% Funds from operations € 27.0 milli
Slide 18: Financial situation
Financial situation Expiration of financial liabilities (as of 30 June 2020) 54.7 % REIT Equity ratio Ø Refinancing interest rates 2020: 1.8% 43.1 % 2021: 1.1% LTV 1.6% €763.1m Financial liabilities(1) 21.3% 8.2% 13.3% 1.93 % 12.6% Ø cost of debt (1) 9.4% 8.3% 8.0% 6.2% 4.3% 2.6% 2.9% 1.3% 5.2 years
Slide 19: Guidance and outlook
Guidance and outlook Guidance 2020 ▪ Rental income: €87-88 million (previous year: €85.2 million) ▪ FFO: €52-54 million (previous year: €54.3 million) ▪ Decline in NAV per share in a single-digit percentage range AGM & Dividend ▪ Virtual AGM to be held on 8 October 2020 ▪ Dividend proposal of €0.47
Slide 20: Agenda
Agenda 1. HAMBORNER at a glance 2. Portfolio overview 3. Asset Management 4. Financials 5. Strategy update 6. Appendix Company presentation | August 2020 20
Slide 21: Portfolio strategy – Target “two-pillar” portfolio structure
Portfolio strategy – Target “two-pillar” portfolio structure Target structure Office Retail "Manage to Core" "Manage to Core" 10-20% 10-20% properties with properties with value-add potential value add potential Large-scale retail Focus on properties assets with focus on 80-90% 80-90% with sustainab
Slide 22: Portfolio strategy – Updated investment approach
Portfolio strategy – Updated investment approach Solid basis (to date) Broadening of solid basis (prospective) Asset classes Office, Retail Office, Retail Risk profile Core Core, Manage to Core Lot size ▪ >€ 10 m (retail) and >€ 20 m (office) ▪ >€ 10 m (retail) and >€ 20 m (office) ▪ Investment focu
Slide 23: Portfolio strategy – Regional focus
Portfolio strategy – Regional focus HAMBORNER locations Split of HAMBORNER portfolio by no. of assets HAMBORNER focus regions (as of 30 June 2020) Key cities metropolitan areas 60 22 (1) Within metropolitan region Outside metropolitan region ▪ Frequent characteristics of Metropolitan regions: - Surp
Slide 24: Financing strategy
Financing strategy Investment properties and funding split Public debt instruments Debt financing Equity Further growth based Diversification of funding sources on solid capital ▪ Evaluation with regard to adding public debt foundation instruments, e.g. convertible, bond etc. Optimisation of existin
Slide 25: Dividend strategy
Dividend strategy Going forward ▪ Increased focus on total return concept ▪ Alignment of dividend amount with corporate strategy and market environment Approach ▪ Contemplation to offer scrip dividend to shareholders in the future ▪ Enhancement of internal financing capability to enable additional a
Slide 26: Strategy update – Summary
Strategy update – Summary ▪ HAMBORNER is committed to continuing its growth strategy – further development of the business model taking into account market effects from Corona situation ▪ Continuation of established “two-pillar business model” (office and retail) ▪ Main focus remains on Core segment
Slide 27: Many thanks for your attention!
Financial Calendar HAMBORNER REIT AG - Financial Calendar Quarterly financial statement Q3 2020 11 November 2020 Preliminary figures 2020 4 February 2021 Annual report 2020 17 March 2021 Quarterly financial statement Q1 2021 27 April 2021 Annual general meeting 2021 29 April 2021 Many thanks for you
Slide 28: Agenda
Agenda 1. HAMBORNER at a glance 2. Portfolio overview 3. Asset Management 4. Financials 5. Strategy update 6. Appendix Company presentation | August 2020 28
Slide 29: TOP Properties (1/2)
Appendix TOP 10 Properties (1/2) Mannheim Munich Berlin Cologne Lübeck Kurpfalz Center NuOffice EUREF Campus O3 Haerder Center Asset type Retail Office Office Office High Street Year of acquisition 2016 2013 2013 2017 2016 Purchase price € 80.0m € 40.1m € 33.0m € 48.9m €49.1m Fair value € 82.3m(1) €
Slide 30: TOP Properties (2/2)
Appendix TOP 10 Properties (2/2) Hallstadt Hanau Darmstadt Karlsruhe Celle Market Oberfranken Rondo Steinheim Asset type Retail Retail/office Retail/Office Retail Retail Year of acquisition 2017 2018 2012 2015 2017 Purchase price € 41.4m € 42.8m € 37.0m € 35.2m € 37.5m Fair value € 47.3m(1) € 46.0m(
Slide 31: Consumer purchasing behaviour in Germany
Consumer purchasing behaviour in Germany Share of eCommerce in retail sales 28,8% consumer electronics 31,0% 33,8% 25,6% fashion & accessoires 27,7% 30,0% 24,4% sports & hobby 26,4% 28,9% 21,6% office & stationery 22,6% 24,6% 16,2% jewellery & watches 18,1% 18,9% 11,9% furniture & interior 13,4% 15,
Slide 32: Geographic focus on metropolitan areas
Appendix Geographic focus on metropolitan areas Metropolitan areas in Germany BIP Metropolitan area Population Area Fraction of Germany (2) Hamburg 5 million 28,529 sqm 6.78% Northwest 2.7 million 13,771 sqm 3.01% Hannover-Braunschweig-Göttingen-Wolfsburg 3.8 million 18,529 sqm 4.76% Berlin-Brandenb
Slide 33: [R]eal [E]state [I]nvestment [T]rust
Appendix [R]eal [E]state [I]nvestment [T]rust 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 net income has to be paid as dividend
Slide 34: Contact
Contact Niclas Karoff CEO @ n.karoff@hamborner.de Hans Richard Schmitz COO/CFO @ h.schmitz@hamborner.de Christoph Heitmann Head of Investor Relations & Public Relations @ c.heitmann@hamborner.de +49 (0)203 / 54405-32 Company presentation | August 2020 34
Slide 35: 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