Slide 1: Company Presentation - Preliminary figures 2016
Company Presentation Preliminary figures 2016 Dr. Rüdiger Mrotzek Hans Richard Schmitz February 2017
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation - Preliminary figures 2016 2
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
Slide 4: Real Estate Investment Trust (REIT) requirements
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
Slide 5: Lean corporate structure
History / Capital markets track record Lean corporate structure – no holding/parent companies HAMBORNER REIT AG 2 32 board members employees Directly owned property Internal management German-wide portfolio Only infrastructural building services externally Market value of properties: contr
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 721 2010: Achievement of G-REIT status and change of 596 company name to HAMBORNER REIT AG October 2010: Capital Increase –
Slide 7: HAMBORNER REIT AG share
History / Capital markets track record HAMBORNER REIT AG share Development of share price and turnover 1Basis 1 Feb=2016 Feb 2016 2016= 100% Number of shares 130% 900.000 800.000 120% 700.000 110% 600.000 500.000 100% 400.000 90% 300.000 200.000 80% 100.000 70% 0 02.16 03.16 04.16 05.16 06.16 07.16
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation - Preliminary figures 2016 8
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 also on towns and cities outside th
Slide 10: Balanced portfolio with 100% German focus
Portfolio-Management Balanced portfolio with 100% German focus Geographical portfolio spread (as of 31 January 2017) Diversification of asset types (as of 31 January 2017) 70 properties in 55 cities in Germany Schleswig- Focus on West and South-West Holstein Mecklenburg- € 1,164 million portfo
Slide 11: Regional diversification
Portfolio-Management Regional diversification Federal State Number of objects Share in the market value of total portfolio (31 January 2017) Northrhine-Westphalia 25 27% Baden-Wurttemberg 10 20% Bavaria 9 18% Hesse 7 8% Lower Saxony 6 7% Berlin 2 6% North NorthRhine- Rhine- Westphalia Westphalia Sch
Slide 12: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 1,164 1,115 Change of strategy 900 692 717 580 504 376 308 281 273 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 31 Jan 2017 Company Presentation - Preliminary figure
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 December 2006 (100% = 54 properties) 31 January 2017 (Number of properties = 70) 16.6 16.2 > € 10 million € 5-10 million 4% 15% 13.0 10.5 9.6 81
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 (s
Slide 15: Investments: Transfer of possession in 2016
Portfolio-Management Investments Transfer of possession in 2016 Mannheim (Kurpfalz Center) Münster (Deilmann-Park) Spreewaldallee Martin-Luther-King-Weg 30/30a Built 1972 (modernized and expanded in 2012/2013) 2016 Main tenant Real, Toys‘R‘Us, ALDI, dm, Adler Mode, Golf House FOM Leased area approx.
Slide 16: Investments: Transfer of possession in 2016/2017
Portfolio-Management Investments Transfer of possession in 2016/2017 Dortmund (DOMI) Cologne (O3) Ostenhellweg Am Coloneum Built 1948 (modernized and expanded in 2003) 2006 Main tenant TK Maxx, Das Depot, O2, Dialysis centre NetCologne Leased area approx. 9,200 m2 approx. 26,500 m2 Annual rental inc
Slide 17: Investments: Purchase contracts signed in 2016
Portfolio-Management Investments Purchase contracts signed in 2016/Transfer of possession in 2017 Kiel Hanau (Rondo Steinheim) Kaistrasse Otto-Hahn-Strasse Built 2017 (under construction) 2017 (under construction) Main tenant Barmer GEK REWE, ALDI, dm, Deichmann Leased area approx. 6,550 m2 approx.
Slide 18: Investments: Purchase contracts signed in 2016
Portfolio-Management Investments Purchase contracts signed in 2016/Transfer of possession in 2017 Passau (Neustiftcenter) Steinbachstrasse/Alte Poststrasse Built 2017 (under construction) Main tenant REWE Leased area approx. 4,300 m2 Annual rental income € 0.9 million Remaining lease term 11.5 years
Slide 19: Investments: Purchase contracts signed in 2017
Portfolio-Management Investments Purchase contracts signed in 2017/Transfer of possession in 2017 Berlin Hallstadt/Bamberg (Market Oberfranken) Märkische Allee Michelinstrasse Built 2006 1974 (modernized and expanded in 2006) Main tenant Kaufland Müller, tegut, C&A, Expert, ALDI Leased area approx.
Slide 20: Divestments 2016
Portfolio-Management Divestments 2016 Disposal of properties 2016 Duisburg Dinslaken Solingen Essen Kassel Selling Price: € 2.64 million Selling price: € 1.94 million Selling price: € 3.17 million Selling price: € 3.26 million Selling price: € 0.7 million Total # of properties 5 Total selling price
Slide 21: Divestments since change of strategy in 2007
Portfolio-Management Divestments since change of strategy in 2007 € 69.5m € 67.7m +2.5% +53.0% € 45.3m Disposal of 25 commercial properties: € 67.5m → Average selling price: € 2.7m → Average multiple: 15.3 → Total annual rental income: € 5.0m Book Value Fair Value Selling Price at time of disposal a
Slide 22: Portfolio development 2016/2017
Portfolio-Management Portfolio development 2016/2017 Portfolio value € 1,288 million Portfolio value Portfolio value € 1,164 million € 1,115 million(3) Portfolio value € 900 million Transfer of possession Transfer of possession Transfer of possession 2016 January 2017 2017 Lübeck (€ +54.4m)(1) Colog
Slide 23: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation - Preliminary figures 2016 23
Slide 24: 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% 98.7% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 → Vacancy rate as at 31/12/2016 incl. rent guarantees: 1.3 % → Vacancy rate as at 31/12/2016 exc
Slide 25: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (as of 31 December 2016, in years) 9.0 6.7 5.0 5.0 Office Highstreet Large-scale Total retailing Split of lease contracts expiring by year (as of 31 December 2016) 32% 12% 8% 12% 9% 7% 7% 9% 4% 2017 2018 2019 2020 2021 2022 2023
Slide 26: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 31 December 2016, % of annual rent) Tenant Sector % of annual rent* EDEKA-Group Discount food retail 11.3% Kaufland Group Discount food retail 7.2% real,- Discount food retail 6.7% OBI Retail (DIY) 6.4% Jobcenter Government Agency 4.1% H&M Textile
Slide 27: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation - Preliminary figures 2016 27
Slide 28: Strong financial fiscal year 2016
Financial Figures / Financial Position Strong financial fiscal year 2016 Highlights Increase in income from rents and leases: + 17.9% FFO increase: + 23.5% (FFO per share: € 0.45 ) Capital increase: Net proceeds € 162 million Total invested volume: approx. € 180 million (five assets) Dives
Slide 29: Significant preliminary key figures for 2016
Financial Figures / Financial Position Significant preliminary key figures for 2016 Key figures Preliminary figures 2016 2015 Change Income from rents and leases € 61.8 million € 52.4 million + 17.9 % EBIT € 31.7 million € 27.1 million + 17.2 % Profit for the period € 17.4 million € 13.8 million + 2
Slide 30: Portfolio development 2016
Financial Figures / Financial Position Portfolio development 2016 Acquisitions 2016 Sales 2016 Like-for-like portfolio Portfolio value € 1,115.0 million Purchase prices Capex Revaluation Sales Capex Revaluation + € 179.7m + € 0.9m + € 8.8m - € 11.6m + € 0.9m + € 36.5m 31/12/2015 31/12/2016 Company P
Slide 31: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1200 30% 1,115 2006 22.2 % 1000 900 800 20% 692 717 580 600 504 400 376 10% 308 281 273 186 200 2016 8.5 % 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Port
Slide 32: NAV per share development
Financial Figures / Financial Position NAV per share development NAV per share € 9.64 € 9.11 +5.8 % +11.2 % € 8.67 Portfolio growth, FFO growth and revaluation were NAV-accretive on per share basis 2014 2015 2016 45,493,333 62,002,613 79,717,645 shares shares shares Company Presentation - Preliminar
Slide 33: Stable and predictable cost of debt
Financial Figures / Financial Position Stable and predictable cost of debt Expiration of fixed interest rates (31 December 2016; % of total financial debt) Financial debt: € 414.5 million Follow-up financing Liquid funds: € 75.3 million 2017 completed REIT equity ratio: 67.8 % LTV: 30.1 % 25
Slide 34: Increasing FFO and dividend per share
Financial Figures / Financial Position Increasing FFO and dividend per share Funds From Operations (FFO) (1) Calculation of FFO per share with outstanding shares at the respective time Capital Increase 2 Capital Increases 79.7 Capital 62.0 36.1 Increase 50.0 Capital 45.5 45.5 45.5 29.2 Increase 23.8
Slide 35: Summary and outlook
Summary and outlook 1. Summary 2016 Positive development of operational business Increasing portfolio value to € 1,115 million Vacancy rate 1.3 % (incl. rent guarantees) Transfer of possession of properties in Lübeck, Ditzingen, Mannheim, Münster and Dortmund Purchase contracts signed for
Slide 36: Many thanks for your attention! Financial Calendar
Financial Calendar HAMBORNER REIT AG Financial Calendar 2017 Preliminary figures 2016 9 February 2017 Annual report 2016 28 March 2017 Interim Report for 1st quarter 2017 9 May 2017 AGM 2017 10 May 2017 Dividend payment 15 May 2017 Interim Report for 1st half 2017 8 August 2017 Interim Report for 3r
Slide 37: TOP Properties (1/2)
Appendix TOP 10 Properties (1/2) Mannheim Lübeck Munich Cologne Berlin Kurpfalz Center Haerder-Center NuOffice O3 EUREF-Campus Asset type Retail High Street Office Office Office Year of acquisition 2016 2016 2013 2017 2013 Purchase price € 80.0 million €49.1 million € 40.1 million € 49.0 million € 3
Slide 38: TOP Properties (2/2)
Appendix TOP 10 Properties (2/2) Dortmund Gießen Fürth Karlsruhe Celle DOMI Westoria Gießen Hornschuch Center Asset type Retail/Office Retail Retail/Office Retail Retail Year of acquisition 2012 2015 2016 2015 2015 Purchase price € 37.0 million € 35.2 million € 30.8 million € 31.6 million € 30.1 mil
Slide 39: 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
Slide 40: 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