Hamborner Reit Ag · XETR:HABA
Hamborner Reit — H1 2020 Earnings Presentation
25 slides from Hamborner Reit's earnings presentation, Jul 30, 2020
Slide 1: Conference Call H1 2020 & Strategy update
Conference Call H1 2020 & Strategy update Dr. Rüdiger Mrotzek Hans Richard Schmitz Niclas Karoff Hans Richard Schmitz 30 July 2020
Slide 2: Agenda
Agenda 1 Update on H1 2020 performance 2 Strategy update H1 2020 | 30 July 2020 2
Slide 3: First half year 2020 Highlights
First half year 2020 Highlights ▪ Despite challenging market environment, HAMBORNER with solid financial performance in H1-2020 Solid operational ▪ Cash collection rates almost back to pre-Corona level given high share of business tenants with strong financial profiles and operations in systematical
Slide 4: Development of key figures H1 2020
Development of 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 operatio
Slide 5: Portfolio development: Portfolio additions H1 2020
Portfolio development Portfolio additions H1 2020 Neu-Isenburg Bonn Aachen Office Office Office Purchase price: € 16.3 million Purchase price: € 22.8 million Purchase price: € 37.7 million Annual rents: € 0.9 million Annual rents: € 1.4 million Annual rents: € 1.9 million Gross initial yield: 5.5% G
Slide 6: Portfolio development: Asset Disposal
Portfolio development Asset Disposal 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
Slide 7: Asset management: Tenant structure
Asset management Tenant structure 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% F
Slide 8: Asset management: Lease contracts
Asset management Lease contracts Weighted average lease expiry by type (as of 30 June 2020, in years) Retail 7.5 8.4 5.1 5.5 6.4 4.1 Office Large-scale High street Other Total retail retail retail portfolio Lease expiry schedule (as of 30 June 2020; % of annual rents) 30.1% 0.9% 13.3% 11.8% 3.6% 6.7
Slide 9: Rental operations – Corona Update
Corona Update Asset management Rental operations – Corona Update Rent collection rates(1) (as of 29 July 2020) Rent deferrals/reductions(1) (as of 29 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 deferral
Slide 10: Rental operations – Corona Update: Asset management achievements
Corona Update Asset management Rental operations – Corona Update Asset management achievements (as of 29 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
Slide 11: Funds from Operations (FFO) Profit and loss statement
Funds from Operations (FFO) Profit and loss statement in € thousand H1 2020 H1 2019 Change 1▪ Increase attributable to new acquisitions 1 Income from rents and leases 43,868 42,303 +3.7% 2▪ Decrease in administrative Income from passed-on 6,985 6,623 +5.5% expenses due to postponement incidental cos
Slide 12: Net Asset Value (NAV) according to EPRA
Net Asset Value (NAV) NAV according to EPRA in € million 30 Jun 2020 31 Dec 2019 ▪1 Increase of long-term assets (incl. hidden reserves) resulting from 1 Balance sheet long-term assets 1,253.3 1,224.0 newly acquired assets, partly offset by negative revaluation 2 + Balance sheet short-term assets 32
Slide 13: Balance sheet IFRS
Balance sheet IFRS ASSETS 30 June 31 Dec 1▪ Corona related revaluation Change € million 2020 2019 adjustment of investment Non-current assets 1,253.3 1,224.0 -0.9% properties offset by inclusion of 1 Investment Properties 1,247.9 1,202.7 +3.8% newly acquired assets in Aachen, Bonn and Neu-Isenburg O
Slide 14: 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 15: 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 16: Agenda
Agenda 1 Update on H1 2020 performance 2 Strategy update H1 2020 | 30 July 2020 16
Slide 17: 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% properties with 10-20% properties with value add potential value add potential 5% Focus on Focus on food- 80-90% properties with 75-85% anchored retail sustainable bui
Slide 18: 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 19: 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 20: Financing strategy
Financing strategy Investment properties and funding split Diversification of funding sources Public debt instruments ▪ Evaluation with regard to adding Debt financing public debt instruments, e.g. Equity convertible, bond etc. Further growth Optimisation of existing financing Investment properties
Slide 21: 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 22: 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 23: Appendix: HAMBORNER Management
Appendix HAMBORNER Management 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 H1 2020 | 30 July 2020 23
Slide 24: Appendix: Financial Calendar
Appendix 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 H1 2020 | 30 July 2020 24
Slide 25: 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