Hamborner Reit Ag · XETR:HABA
Hamborner Reit — Investor Presentation (November 2019)
37 slides from Hamborner Reit's investor presentation, November 2019
Slide 1: Company presentation
Company presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz November 2019
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | November 2019 2
Slide 3: History / Historical development of the company
History / Capital markets track record Historical development of the company 1953 Foundation of the company: HAMBORNER founded as a mining company Mining 1954 Listed on stock exchange as HAMBORNER Bergbau AG 1969 Integration of the mining activities into Ruhrkohle AG 1970 Continuation of HAMBORNER a
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 40 board members employees ▪ Directly owned property ▪ Internal asset & property management ▪ German-wide portfolio ▪ Only infrastructural building services and center ▪ 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 789 764 721 ▪ 2010: Achievement of G-REIT status and change of 670 596 company name to HAMBORNER REIT AG ▪ October 2010: Capital Increase – n
Slide 7: HAMBORNER REIT AG share
History / Capital markets track record HAMBORNER REIT AG share Development of share price and turnover (1 year) 31 Oct 2018 = 100% Number Numberof Number ofofshares shares shares 115% 600.000 110% 500.000 105% 400.000 100% 95% 300.000 90% 200.000 85% 100.000 80% 75% 0 10.18 12.18 01.19 02.19 03.19 0
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | November 2019 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 on cities with positive demogr
Slide 10: HAMBORNER's Top 50 Cities in Germany
Portfolio-Management HAMBORNERs TOP 50 Cities in Germany High attractiveness in terms of ▪ Demographic development ▪ Centrality ▪ Purchase power ▪ Future opportunities Schleswig- Holstein Mecklenburg- Aachen* Ingolstadt* Hamburg Western-Pomerania Aschaffenburg Karlsruhe* Augsburg* Kempten Oldenburg
Slide 11: Balanced portfolio with 100% German focus
Portfolio-Management Balanced portfolio with 100% German focus Geographical portfolio spread Diversification of asset types ▪ 79 properties in 60 cities in Germany ▪ Focus on West, South and South-West Schleswig- Holstein ▪ € 1.546 billion portfolio value Mecklenburg- Western Pomerania Bremen Berlin
Slide 12: Regional diversification
Portfolio-Management Regional diversification Federal State Number of properties Share in market value of total portfolio Northrhine-Westphalia 27 26% Bavaria 11 18% Baden-Wurttemberg 10 16% Hessen 9 12% Berlin 4 10% Lower Saxony 6 6% North NorthRhine- Rhine- Westphalia Westphalia Schleswig-Holstein
Slide 13: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 1,517 1,546 1,363 Change of strategy 1,115 900 692 717 580 504 376 281 308 273 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nov 2019 Company presentation |
Slide 14: Portfolio structure
Portfolio-Management Portfolio structure Portfolio split by property value Average value per asset (in € million) 31 December 2006 November 2019 (Number of properties = 79) > € 10m 19.5 19.6 18.4 € 5-10m 4% 15% 16.2 100% = 54 properties 13.0 81% 10.5 < € 5m 9.6 8.4 November 2019 7.3 < € 5m 6.1 11% 5
Slide 15: Investments 2019 Transfer of possession 2019
Portfolio-Management Investments 2019 Transfer of possession 2019 Bamberg Lengerich Starkenfeldstrasse Alwin-Klein-Strasse Asset type Local supply/Large-scale retail & office Local supply/Large-scale retail Built 2013 2019 Main tenants EDEKA, Perbility, Bosch BKK, IG Metall EDEKA, Deichmann, Takko L
Slide 16: Investments 2019 Transfer of possession 2020
Portfolio-Management Investments 2019 Transfer of possession 2020 Bonn Aachen Krähenhorst/Soenneckenstrasse Gut-Dämme-Strasse/Grüner Weg Asset type Office Office Built 2019 (under construction) 2019 (under construction) Main tenants Barmer, … Barmer, … Leased area 6,200 m2 8,200 m2 Annual rental inc
Slide 17: Investments 2019 Transfer of possession 2019/2020
Portfolio-Management Investments 2019 Transfer of possession 2019/2020 Neu-Isenburg Siemensstrasse Asset type Office Built 2019 (under construction) Main tenants UBL, … Leased area 4,500 m2 Annual rental income € 0.9 million Remaining lease term approx. 8 years(1) Gross initial yield 5.4 % Purchase
Slide 18: Divestment 2019
Portfolio-Management Divestment 2019 Leverkusen Asset type: Local supply/High street retail Selling price: € 1.6 million Fair value as of 31 December 2018: € 1.4 million Contribution to earnings: € 0.1 million Transfer of possession: 3 September 2019 Company presentation | November 2019 18
Slide 19: Divestments since change of strategy in 2007
Portfolio-Management Divestments since change of strategy in 2007 € 96.2m € 93.9m + 2.4% + 41,1% € 68.2m Disposal of 29 commercial properties: € 94.3m → Average selling price: € 3.3m → Average multiple: 13.8 → Total annual rental income: € 7.1m Book Value Fair Value Selling Price at time of disposal
Slide 20: Portfolio development 2019/2020
Portfolio-Management Portfolio development 2019/2020 Portfolio value € 1,613.1 million Portfolio value Portfolio value € 1,545.9 million Portfolio value € 1,531.7 million € 1,517.3 millon Aachen (+ €28.3m)(3) Bamberg (+ €15.8m)(1) Lengerich (+ €14.2m)(3) Bonn (+ €22.8m)(3) Leverkusen (- €1.4m)(2) Ne
Slide 21: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | November 2019 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% 98.1% 98.7% 98.6% 98.7% 98.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 → Vacancy rate as of 30 September 2019 (incl. rent guarantees): 2.0 % → Vacancy rate as of 30 September 20
Slide 23: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (in years; 30 September 2019) Local supply 7.7 8.7 6.6 5.5 4.4 3.8 Office Large-scale High street Other Total retail retail retail portfolio Split of lease contracts expiring by year (% of annual rents; as of 30 September 2019)
Slide 24: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 30 September 2019) Tenant Sector % annual rents* EDEKA Group Food retail 12.0% Kaufland Group Food retail 6.8% REWE Group Food retail 5.5% real,- Food retail 5.4% OBI DIY retail 5.0% Jobcenter Agency of unemployment 3.2% NetCologne Telecommunicati
Slide 25: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company presentation | November 2019 25
Slide 26: Significant key figures 9M 2019
Financial Figures / Financial Position Significant key figures 9M 2019 9M 2019 9M 2018 Change Income from rents and leases € 63,7 million € 62,5 million +2.0% Operating result € 26,8 million € 26,6 million +0.8% Profit for the period € 15,3 million € 15,1 million +1.0% Funds from operations (FFO) €
Slide 27: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1,517 1,531 30% 1500 2006 1,363 22.2% 25% 1250 1,115 20% 1000 900 717 15% 750 692 580 504 10% 500 376 281 308 273 250 186 5% 9M 2019 7.1% 0 0% 2006 2007 2008 2009 2010 201
Slide 28: Financial liabilities
Financial Figures / Financial Position Financial liabilities Expiration of financial liabilities (as of 30 September 2019) Refinancing/ Repayment Bonded loans Ø interest rate: 1.5% 55.6 % concluded Ø maturity: 3.8 years REIT Equity ratio 43.1 % LTV 1.7% €729.2m 22.9% Financial liabilities* 8.6% 13.4
Slide 29: 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 79.7 79.7 79.7 2x 52.7 CI CI 62.0 44.7 50.0 CI 36.1 45.5 45.5 45.5 CI Capital increase CI 29.2 34.1 34.1 23.8 24.6
Slide 30: Outlook
Outlook Forecast ▪ Rental income 2019: + 2 % ▪ FFO 2019 expected on previous year‘s high level ▪ Future growth in rents and FFO secured due to transfer of possession of assets in Aachen, Bonn and Neu-Isenburg ▪ Remaining fire power: € 50 – 60 million Dividend outlook ▪ Continuation of reliable and s
Slide 31: Many thanks for your attention! Financial Calendar
Financial Calendar HAMBORNER REIT AG - Financial Calendar Interim report for 3rd quarter 2019 7 November 2019 Preliminary figures 2019 6 February 2020 Annual report 2019 26 March 2020 Interim report for 1st quarter 2020 5 May 2020 AGM 2020 6 May 2020 Dividend payment 11 May 2020 Half-year financial
Slide 32: TOP 10 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 € 80.0 million € 40.1 million € 33.0 million € 48.9 million €4
Slide 33: TOP 10 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 € 41.4 million € 42.8 million € 37.0 million € 35.2 million € 37.5 mil
Slide 34: Development of key figures since change of strategy
Review Development of key figures since change of strategy 31 Dec 2008 31 Dec 2018 Rental income €19.4m €83.4m Funds from operations (FFO) €8.5m €52.7m FFO per share €0.37 €0.66 Dividend per share €0.35 €0.46 Net asset value (NAV) per share €10.57 €10.79 Number of shares 22.7m 79.7m Share price € 5.
Slide 35: Consumer purchasing behaviour in Germany
Appendix Consumer purchasing behaviour in Germany Share of eCommerce in retail sales 26,1% consumer electronics 28.8% 31.0% 23.5% fashion & accessoires 23.5% 25.6% 22.7% sports & hobby 24.4% 26.4% 19.8% office & stationery 21.6% 22.6% 14.8% jewellery & watches 16.2% 18.1% 10.7% furniture & interior
Slide 36: 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 37: 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
Hamborner REIT — Investor Presentation (November 2019) on 6ix