Hamborner Reit Ag · XETR:HABA
Hamborner Reit — Investor Presentation (November 2018)
38 slides from Hamborner Reit's investor presentation, November 2018
Slide 1: Company Presentation
Company Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz November 2018
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation | November 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)
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 38 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) 30. October 2017 = 100% Number of shares 120% 700.000 115% 600.000 110% 105% 500.000 100% 400.000 95% 90% 300.000 85% 200.000 80% 100.000 75% 70% 0 10.17 12.17 01.18 02.18 03.18 04.18 05.1
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation | November 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 November 2018) Diversification of asset types (as of November 2018) ▪ 78 properties in 61 cities in Germany ▪ Focus on West, South and South-West Schleswig- Holstein Mecklenburg- ▪ € 1.454 billion por
Slide 11: Regional diversification
Portfolio-Management Regional diversification Federal State Number of properties Share in market value of total portfolio (as of November 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 Westphal
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 Nov 2018 Company Presentation | November 2
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) November 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 0.6 million € 1.0 million Remaining lease term 10.0 years(1) 8.1 years(1) Gross initial
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 19,400 m2 Annual rental income € 0.8 million € 2.5 million Remaining lease term 10.0 years(1) 5.9 years(1) Gross initial yield 5.
Slide 16: Investments 2018 – Transfer of possession 2018/2019
Portfolio-Management Investments 2018 Transfer of possession 2018/2019 Berlin Bamberg Landsberger Allee Starkenfeldstrasse Built 1975 (Modernized in 2011) 2013 Main tenants Globus Baumarkt EDEKA, Perbility, Bosch BKK, IG Metall Leased area 16,500 m2 6,100 m2 Annual rental income € 1.7 million € 0.83
Slide 17: Investments 2018 – Transfer of possession 2019/2020
Portfolio-Management Investments 2018 Transfer of possession 2019/2020 Aachen Bonn Gut-Dämme-Straße/Grüner Weg Krähenhorst/Soenneckenstraße Built 2019 (under construction) 2019 (under construction) Main tenants Barmer, … Barmer, … Leased area 8,200 m2 6,200 m2 Annual rental income € 1.5 million € 1.
Slide 18: Divestments 2018
Portfolio-Management Divestments 2018 Brunnthal Undeveloped land Selling price: € 11.2 million Plot size: 200,000 m² Fair value as of 31 December 2017: € 11.1 million Selling price: € 0.8 million Book value as of 30 September 2018: € 10.2 million Book value as of 31 December 2017: € 0.2 million Book
Slide 19: Divestments since change of strategy in 2007
Portfolio-Management Divestments since change of strategy in 2007 € 94.6m € 92.5m + 2.3% + 42.0% € 66.1m Disposal of 28 commercial properties: € 92.5m → Average selling price: € 3.3m → Average multiple: 13.8 → Total annual rental income: € 7.2m Book Value Fair Value Selling Price at time of disposal
Slide 20: Portfolio development
Portfolio-Management Portfolio development Portfolio value € 1,541 million Portfolio value € 1,454 million Portfolio value € 1,363 million Cologne (+ €21.0m)(1) Berlin (+ €32.1m)(3) Düsseldorf (+ €10.5m)(1) Bamberg (+ €15.0m)(3) Bonn (+ €14.2m)(1) Aachen (+ €28.3m)(3) Darmstadt (+ €44.0m)(1) Bonn (+
Slide 21: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation | November 2018 21
Slide 22: 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% 98.9% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q3 2018 → Vacancy rate as of 30 September 2018 (incl. rent guarantees): 1.1 % → Vacancy rate as of 30 September 2018 (excl. rent guarant
Slide 23: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (30 September 2018, in years) 7.9 6.2 5.1 4.3 Office Highstreet Large-scale retail Total Split of lease contracts expiring by year (30 September 2018) 30% 13% 10% 10% 2% 6% 9% 7% 8% 5% 2018 2019 2020 2021 2022 2023 2024 2025 202
Slide 24: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 30 September 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% Ne
Slide 25: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation | November 2018 25
Slide 26: Successful first nine month 2018
Financial Figures / Financial Position Successful first nine month 2018 Highlights ▪ Income from rents and leases: + 14.4% ▪ Funds from operations (FFO): + 18.8% ▪ Vacancy rate: 1.1 % (incl. rent guarantees) ▪ Acquisition of four properties in Cologne, Bonn, Düsseldorf and Darmstadt → Total investme
Slide 27: Significant key figures for the first nine month 2018
Financial Figures / Financial Position Significant key figures for the first nine month 2018 Key figures 9M 2018 9M 2017 Change Income from rents and leases € 62.5 million € 54.6 million + 14.4 % Operating result € 26.6 million € 23.6 million + 12.4 % Profit for the period € 15.1 million € 15.7 mill
Slide 28: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1500 1,454 30% 1,363 2006 1250 25% 22.2 % 1,115 1000 20% 900 750 692 717 15% 580 504 500 10% 376 281 308 273 250 186 5% Q3 2018 6.7 % 0 0% 2006 2007 2008 2009 2010 2011 20
Slide 29: Financial liabilities
Financial Figures / Financial Position Financial liabilities Expiration of financial liabilities (as of 30 September 2018) Refinancing/ Bonded loans 55.5 % Repayment largely Ø interest rate: 1.5% concluded REIT Equity ratio Ø maturity: 4.9 years 43.7 % LTV €723.5m Financial liabilities* 1.7% 23.8% 2
Slide 30: 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 31: Summary and outlook
Summary and outlook Conclusion/Summary ▪ Strong first half 2018 with positive development of operational business ▪ Vacancy rate: 1.1% ▪ Transfer of possession of four assets in Cologne, Düsseldorf, Bonn and Darmstadt ▪ Portfolio value: € 1.45 billion ▪ Purchase contract signed for four further asse
Slide 32: Many thanks for your attention! Financial Calendar
Financial Calendar HAMBORNER REIT AG - Financial Calendar 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 Interim Report for 1st half 2019 1 August 2019 Interim Report for 3rd quarter 2019 7 November 2019 Ma
Slide 33: 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 34: 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 35: 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 36: 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 37: Contact
Contact Dr. Rüdiger Mrotzek Member of the Management Board @ r.mrotzek@hamborner.de Hans Richard Schmitz Member of the Management Board @ h.schmitz@hamborner.de Christoph Heitmann Head of Investor Relations & Public Relations @ c.heitmann@hamborner.de +49 (0)203 / 54405-32 Company Presentation | N
Slide 38: 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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