Slide 1: Company Presentation
Company Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz August 2018
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation | August 2018 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 – no holding/parent companies
History / Capital markets track record Lean corporate structure – no holding/parent companies HAMBORNER REIT AG 2 36 board members employees ▪ Directly owned property ▪ Internal asset & property management ▪ German-wide portfolio ▪ Only infrastructural building services outsourced ▪ Market value of
Slide 6: Growing market capitalization and increasing free float
History / Capital markets track record Growing market capitalization and increasing free float Milestones Market cap (€ million) ▪ 2007: Start of new strategy 789 721 ▪ 2010: Achievement of G-REIT status and change of 596 company name to HAMBORNER REIT AG ▪ October 2010: Capital Increase – net proce
Slide 7: HAMBORNER REIT AG share
History / Capital markets track record HAMBORNER REIT AG share Development of share price and turnover (1 year) 31 July 2017 = 100% Number of shares 140% 800.000 130% 700.000 600.000 120% 500.000 110% 400.000 100% 300.000 90% 200.000 80% 100.000 70% 0 07.17 09.17 10.17 11.17 12.17 01.18 02.18 03.18
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation | August 2018 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, ▪ Focus on quality properties, location and property strategy South and South-West Germany determined by asset type: ▪ Focus also on towns and cities out
Slide 10: Balanced portfolio with 100% German focus
Portfolio-Management Balanced portfolio with 100% German focus Geographical portfolio spread (as of August 2018) Diversification of asset types (as of August 2018) ▪ 78 properties in 61 cities in Germany ▪ Focus on West, South and South-West Schleswig- Holstein Mecklenburg- ▪ € 1.454 billion portfol
Slide 11: Regional diversification
Portfolio-Management Regional diversification Federal State Number of properties Share in market value of total portfolio (as of August 2018) Northrhine-Westphalia 28 27% Bavaria 11 19% Baden-Wurttemberg 10 16% Hessen 9 13% Berlin 3 6% Lower Saxony 6 6% North NorthRhine- Rhine- Westphalia Westphalia
Slide 12: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 1,454 1,363 1,115 Change of strategy 900 692 717 580 504 376 281 308 273 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 August 2018 Company Presentation | August
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) August 2018 (Number of properties = 78) 18.4 18.6 > € 10 million 16.2 € 5-10 million 4% 15% 13.0 10.5 81% <
Slide 14: Investments 2018
Portfolio-Management Investments 2018 Düsseldorf Cologne Harffstraße Unter Linden Built 1980 (Modernized 2011) 2009 Main tenants EDEKA EDEKA, ALDI, dm, Sparkasse Leased area 5,343 m2 6,533 m2 Annual rental income 0.55 million € 1.03 million Remaining lease term 10.0 years(1) 8.1 years(1) Gross initi
Slide 15: Investments 2018
Portfolio-Management Investments 2018 Bonn Darmstadt Basketsring Leydhecker Strasse Built 2008 2000 Main tenants EDEKA REWE, Herbalife, Alcan Systems Leased area 4,934 m2 approx. 19.400 m2 Annual rental income € 0.76 million € 2.49 million Remaining lease term 10.0 years(1) 5.9 Jahre(1) Gross initia
Slide 16: Divestments since change of strategy in 2007
Portfolio-Management Divestments since change of strategy in 2007 € 83.4m € 81.5m + 2.5% + 47.8% € 56.4m Disposal of 27 commercial properties: € 81.5m → Average selling price: € 3.0m → Average multiple: 14.2 → Total annual rental income: € 5.9m Book Value Fair Value Selling Price at time of disposal
Slide 17: Portfolio development 2018
Portfolio-Management Portfolio development 2018 Portfolio value € 1,454 million Portfolio value € 1,409 million Portfolio value € 1,363 million Cologne (€ +21.0m)(1) Darmstadt (€ +44.0m)(1) Düsseldorf (€ +10.5m)(1) Kiel (€ +1.0m)(2) Bonn (€ +14.2m)(1) 31 December 31 March 30 June 2017 2018 2018 (1)
Slide 18: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation | August 2018 18
Slide 19: High and stable occupancy
Asset-Management High and stable occupancy Occupancy rates 97.9% 96.5% 97.5% 98.2% 98.1% 97.5% 97.7% 98.7% 98.6% 99.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 → Vacancy rate as of 30 June 2018 (incl. rent guarantees): 1.0 % → Vacancy rate as of 30 June 2018 (excl. rent guarantees): 1.5
Slide 20: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (30 June 2018, in years) 8.0 6.3 5.0 4.7 Office Highstreet Large-scale retail Total Split of lease contracts expiring by year (30 June 2018) 37% 3% 13% 10% 6% 9% 7% 9% 6% 2018 2019 2020 2021 2022 2023 2024 2025 2026 and later Co
Slide 21: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 30 June 2018) Tenant Sector % annual rents* EDEKA Group Food retail 11.6% Kaufland Group Food retail 6.8% REWE Group Food retail 5.6% real,- Food retail 5.5% OBI DIY retail 5.1% Jobcenter Agency of unemployment 3.3% H&M Textile retail 2.1% NetColo
Slide 22: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation | August 2018 22
Slide 23: Successful first half year 2018
Financial Figures / Financial Position Successful first half year 2018 Highlights ▪ Income from rents and leases: + 15.4% ▪ Funds from operations (FFO): + 17.9% ▪ Vacancy rate: 1.0 % (incl. rent guarantees) ▪ Acquisition of four properties in Cologne, Bonn, Düsseldorf and Darmstadt → Total investmen
Slide 24: Significant key figures for first half year 2018
Financial Figures / Financial Position Significant key figures for first half year 2018 Key figures 30 June 2018 30 June 2017 Change Income from rents and leases € 41.3 million € 35.8 million + 15.4 % Operating result € 17.1 million € 15.5 million + 4.5 % Profit for the period € 9.5 million € 10.9 m
Slide 25: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1,454 25% 1400 1,363 1200 1,115 20% 2006 22.2 % 1000 900 15% 800 717 692 580 600 10% 504 376 400 281 308 273 5% 186 200 H1 2018 6.8 % 0 0% 2006 2007 2008 2009 2010 2011 20
Slide 26: Financial liabilities
Financial Figures / Financial Position Financial liabilities Expiration of financial liabilities (as of 30 June 2018) Refinancing/ Bonded loans 54.5 % Repayment largely Ø interest rate: 1.5% REIT Equity ratio concluded Ø maturity: 5.1 years 44.5 % LTV €727.9m Financial liabilities* 1.7% 23.9% 2.2 %
Slide 27: Increasing FFO and dividend per share
Financial Figures / Financial Position Increasing FFO and dividend per share Funds From Operations (FFO) Capital (1) Calculation of FFO per share with outstanding shares at the respective time Increase 2 Capital Increases 79.7 79.7 Capital 62.0 44.7 Increase 50.0 Capital 45.5 45.5 45.5 36.1 Increase
Slide 28: Summary and outlook
Summary and outlook Conclusion/Summary ▪ Strong first half 2018 with positive development of operational business ▪ Vacancy rate: 1.0% ▪ Transfer of possession of four assets in Cologne, Düsseldorf, Bonn and Darmstadt ▪ Portfolio value: € 1.45 billion Forecast 2018 ▪ Rental income: + 10 - 12 % ▪ FFO
Slide 29: Many thanks for your attention! Financial Calendar
Financial Calendar HAMBORNER REIT AG - Financial Calendar Interim Report for 3rd quarter 2018 8 November 2018 Preliminary figures 2018 7 February 2019 Annual report 2018 27 March 2019 Interim Report for 1st quarter 2019 2 May 2019 AGM 2019 7 May 2019 Many thanks for your attention! Company Presentat
Slide 30: TOP 10 Properties (1/2)
Appendix TOP 10 Properties (1/2) Mannheim Munich Lübeck Berlin Cologne Kurpfalz Center NuOffice Haerder Center EUREF Campus O3 Asset type Retail Office High Street Office Office Year of acquisition 2016 2013 2016 2013 2017 Purchase price € 80.0 million € 40.1 million €49.1 million € 33.0 million € 4
Slide 31: TOP 10 Properties (2/2)
Appendix TOP 10 Properties (2/2) Hallstadt Hanau Darmstadt Celle Karlsruhe Market Oberfranken Rondo Steinheim Asset type Retail Retail/office Retail Retail/Office Retail Year of acquisition 2017 2018 2015 2012 2017 Purchase price € 41.4 million € 42.8 million € 35.2 million € 37.0 million € 37.5 mil
Slide 32: TOP 50 Cities in Germany
Appendix TOP 50 Cities in Germany High attractiveness in terms of ▪ Demographic development ▪ Centrality ▪ Purchase power ▪ Future opportunities Schleswig- Holstein Aachen* Ingolstadt* Mecklenburg- Western-Pomerania Aschaffenburg Karlsruhe* Hamburg Augsburg* Kempten Oldenburg Bad Homburg* Koblenz* B
Slide 33: Consumer purchasing behaviour in Germany
Appendix Consumer purchasing behaviour in Germany Share of eCommerce in retail sales 26.1% consumer electronics 28.7% 23.5% fashion & accessoires 25.6% 22.7% sports & hobby 24.3% 19.8% office & stationery 21.5% 14.8% jewellery & watches 16.4% 11.6% health & wellness 12.3% 10.7% furniture & interior
Slide 34: 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 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