Hamborner Reit Ag · XETR:HABA
Hamborner Reit — Non-Deal Roadshow (May 2015)
45 slides from Hamborner Reit's roadshow presentation, May 21, 2015
Slide 1: Roadshow Presentation
Roadshow Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz May 2015
Slide 2: Key investment highlights
Creating sustainable shareholder value Key investment highlights Capturing German momentum Increasing portfolio quality Strong asset and portfolio management Robust financial position Enhancing efficiency, increasing cash flow and dividend per share Capital markets track record 2
Slide 3: Agenda
Agenda 1 Capturing German momentum 2 Increasing portfolio quality 3 Strong asset and portfolio management 4 Robust financial position 5 Enhancing efficiency, increasing cash flow and dividend per share 6 Capital markets track record 7 Appendix 3
Slide 4: Well positioned to capture German momentum
Capturing German momentum Well positioned to capture German momentum GDP growth rate (%)* Unemployment rate (%) 5% 14% 12% Euro area** 3% Germany 10% 1% Euro area** 8% 6% -1% 2006 2008 2010 2012 2014 2016 Germany 4% -3% 2% 0% -5% 2003 2005 2007 2009 2011 2013 2015 Attractive refinancing rate (%) Gro
Slide 5: Positive development of commercial real estate market in Germany
Capturing German momentum Positive development of commercial real estate market in Germany Demand for office and retail space Commercial real estate investment market Ratio of office space to office employment* Transaction volume development (in € billion) 130 Indexed 1995 = 100 Office space 44.0 12
Slide 6: Agenda
Agenda 1 Capturing German momentum 2 Increasing portfolio quality 3 Strong asset and portfolio management 4 Robust financial position 5 Enhancing efficiency, increasing cash flow and dividend per share 6 Capital markets track record 7 Appendix 6
Slide 7: Balanced portfolio with 100% German focus
Increasing portfolio quality Balanced portfolio with 100% German focus Geographical portfolio spread Diversification of asset types → 70 properties in 54 cities in Germany* Schleswig- → Focus on West und South Holstein Mecklenburg- → approx. € 780 million portfolio value** Western Pomerania Bremen B
Slide 8: Well defined acquisition strategy
Increasing portfolio quality 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 on towns and cities outside
Slide 9: Development of the HAMBORNER portfolio value (in € million)
Increasing portfolio quality Development of the HAMBORNER portfolio value (in € million) Development of the portfolio value Change of strategy 781 717 692 580 504 376 308 281 273 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 31 Mar 2015* * Including Celle property 9
Slide 10: Improving value per asset through acquiring larger assets
Increasing portfolio quality Improving value per asset through acquiring larger assets Portfolio split by property value Average value per asset 2006-2015 (in € million) 2006 (100% = 54 properties) 2015 (Number of properties = 70)* > € 10 million € 5-10 million 4% 15% 11.2 10.6 < € 5 million 9.6 81%
Slide 11: Increasing regional diversification
Increasing portfolio quality Increasing regional diversification Geographical portfolio spread Transfer of possessions in 2014 and 2015* Transfer of possession in 2015 Transferred in 2014 Transferred in 2013 → 6 new properties comprising a total purchase price of € 112 Schleswig- Holstein Mecklenbur
Slide 12: Sales strategy since 2007
Increasing portfolio quality Sales strategy since 2007 € 50.2 m 16 commercial objects sold: € 47.7 m +5% € 48.3 million → ø sales-price per object: € 3.0 million +52% → ø multiple 15.2 (rents: € 3.2 million) € 33.0 m 7 residential objects sold: € 1.9 millions 2 commercial assets to be sold: € 2.5 mi
Slide 13: 2015: Expansion of portfolio by € 80 million
Increasing portfolio quality 2015: Expansion of portfolio by € 80 million Development of the portfolio value €797m Transfer of €781m ownership • Berlin (€18m) • Kassel(€1m) Transfer of • Düren (€2m) ownership +€36m • Bad Homburg (€8m) €745m • Celle (€36m) • Koblenz (€11m) €717m • Siegen (€13m) • Cap
Slide 14: Agenda
Agenda 1 Capturing German momentum 2 Increasing portfolio quality 3 Strong asset and portfolio management 4 Robust financial position 5 Enhancing efficiency, increasing cash flow and dividend per share 6 Capital markets track record 7 Appendix 14
Slide 15: High and stable occupancy
Strong asset and portfolio 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% 97.6% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 → Vacancy rate as at 31 Mar 2015 incl. rent guarantees: 2.4 % → Vacancy rate as at
Slide 16: Long-term leases with strong tenants
Strong asset and portfolio management Long-term leases with strong tenants Split of lease contract expiry by year ** Top 10 tenants (% of annual rent*)** Tenant Sector EDEKA Discount food retail 13.6% 33% Kaufland Group Discount food retail 9.2% 12% OBI Retail (DIY) 7.9% 3% 9% 11% 9% 10% 7% 6% Bunde
Slide 17: Rental performance
Strong asset and portfolio management Rental performance (per 31 Dec 2014) Rental performance (per 31 Mar 2015) Lettable space Lettable m 2) (355.9kspace Lettable space (355.9k m2) (391.7k m2)* Rental performance = Rental performance = 16% 32.8k m2 leased space 15% 11.9k m2 leased space Contract ren
Slide 18: Agenda
Agenda 1 Capturing German momentum 2 Increasing portfolio quality 3 Strong asset and portfolio management 4 Robust financial position 5 Enhancing efficiency, increasing cash flow and dividend per share 6 Capital markets track record 7 Appendix 18
Slide 19: Stable and predicable cost of debt
Robust financial position Stable and predicable cost of debt Expiration of fixed interest rates (per 31 Mar 2015, as % of total financial debt) → Financial debt: € 319.7 million → Liquid funds: € 27.9 million → LTV: 39.0% 22% → Average maturity of financial debt: 19% 6.0 years 16% → Average cost of
Slide 20: Lower marginal funding costs
Robust financial position Lower marginal funding costs Average cost of debt Examples of recent debt financing → 3 loans at a total of € 32.9 million for three acquisitions: → € 17.5 million expiring in 2024 at 2.23% → € 8.3 million expiring in 2025 at 1.82% → € 7.1 million expiring in 2025 at 1.82%
Slide 21: Low LTV equity ratio well within REIT criteria
Robust financial position Low LTV equity ratio well within REIT criteria Loan-to-value (%) → Figures: → LTV: 39.0% 50% 43.7% 43.3% → REIT equity ratio: 57.4 % 39.1% 39.0% 34.2% 28.1% 22.9% 19.3% 12.0% 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 LTV Maximum target LTV 21
Slide 22: Agenda
Agenda 1 Capturing German momentum 2 Increasing portfolio quality 3 Strong asset and portfolio management 4 Robust financial position 5 Enhancing efficiency, increasing cash flow and dividend per share 6 Capital markets track record 7 Appendix 22
Slide 23: Benefitting from economies of scale
Enhancing efficiency, increasing cash flow and dividend per share Benefitting from economies of scale Portfolio value (in € million) and overhead cost margin* Potential for growth 800 40% → Efficient organisation 717 692 → Internal management 700 → 2 board members 600 580 30% → 28 employees** 22.2 %
Slide 24: FFO Development in 2014
Enhancing efficiency, increasing cash flow and dividend per share FFO Development in 2014 +714 +68 -1,109 -3,452 -984 -13,540 42,858 24,555 23,786 Net Rental - Administrative - Personnel + Other - Other + Interest - Interest FFO 2014 FFO 2013 income 2014 expenditure costs operating operating income
Slide 25: Increasing FFO and dividend per share
Enhancing efficiency, increasing cash flow and dividend per share Increasing FFO and dividend per share Funds From Operations (FFO) per share (in €) Capital Increase 50.0 45.5 45.5 45.5 45.5 Capital Increase 23.8 24.6 34.1 34.1 # shares in million Capital Increase 18.9 22.7 22.7 16.0 FFO absolut (€m
Slide 26: Agenda
Agenda 1 Capturing German momentum 2 Increasing portfolio quality 3 Strong asset and portfolio management 4 Robust financial position 5 Enhancing efficiency, increasing cash flow and dividend per share 6 Capital markets track record 7 Appendix 26
Slide 27: Growing market capitalisation and increasing free float…
Capital markets track record Growing market capitalisation and increasing free float… Overview events Historic market cap (in € million) → 2007: Start of new strategy 500 100% → 2010: Achievement of G-REIT status and change of 400 80% company name to HAMBORNER REIT AG 300 334 369 457 60% → October 2
Slide 28: …resulting in increased liquidity
Capital markets track record …resulting in increased liquidity Total return since 2012 Average turnover per day since 2012 # of shares in thousand Indexed Price Performance 2012 = 100 Volume (Shares in thousand) 240 1,200 220 Inclusion in 400 EPRA-Index 167.2 200 350 69.9 68.8 89.7 180 300 2012 2013
Slide 29: Agenda
Agenda 1 Capturing German momentum 2 Increasing portfolio quality 3 Strong asset and portfolio management 4 Robust financial position 5 Enhancing efficiency, increasing cash flow and dividend per share 6 Capital markets track record 7 Appendix 29
Slide 30: Income statement (IFRS)
Appendix Income statement (IFRS) in € thousand 2013 2014 Q1 2014 Q1 2015 Net rental income 40,933 42,858 10,894 11,061 Administrative expenses -1,131 -1,109 -283 -294 Personnel expenses -3,311 -3,452 -816 -1,023 Depreciation -16,379 -17,841 -4,450 -4,247 Other operating income 1,334 714 187 421 Othe
Slide 31: Funds from operations
Appendix Funds from operations in € thousand 2013 2014 Q1 2014 Q1 2015 Net rental income 40,933 42,858 10,894 11,061 - Administrative expenses -1,131 -1,109 -283 -294 - Personnel expenses -3,311 -3,452 -816 -1,023 + Other operating income 334 714** 187 421 - Other operating expenses -790* -984* -312
Slide 32: Balance sheet (IFRS)
Appendix Balance sheet (IFRS) in € million 31-Dec-13 31-Dec-14 31-Mar-15 ASSETS Non-current assets 596.3 607.8 632.0 Investment Properties 595.4 606.8 630.8 Other 0.9 1.0 1.2 Current assets 35.4 13.5 31.9 Trade receivables and other assets 0.8 1.3 1.5 Cash and cash equivalents 28.2 10.4 27.9 Non cur
Slide 33: Premium of the XETRA-closing price to NAV of 16%
Appendix Premium of the XETRA-closing price to NAV of 16% (per 31 March 2015) Net asset value (in accordance with EPRA) in € million 31-Dec-13 31-Dec-14 31-Mar-15 Share price/ NAV Balance sheet long-term assets 596 608 632 €10.25 +16% + Balance sheet short-term assets 36 13 32 €8.81 - Non-current li
Slide 34: Transfer of possession in 2014 / 2015
Appendix Transfer of possession in 2014 / 2015 City Address Asset-Class Space in m² Rent p. year Purchase price Gross initial Transfer of Main tenants in € thousand in € million yield possession Bad Commerzbank, Homburg Louisenstraße 66 High Street 3,240 464 7.9 5.9% January 2014 Derpart Siegen Bahn
Slide 35: Transfer of possession in 2014
Appendix Transfer of possession in 2014 Bad Homburg, Louisenstraße 66 Built 1970 Main-Tenant Commerzbank Leased area 3,240 m² Annual rental income € 0.46 million Remaining term 5.3 years Gross initial yield 5.4 % Purchase price € 7.9 million Siegen, Bahnhofstraße 8 Built 1968 Main-Tenant C&A Leased
Slide 36: Transfer of possession in 2014
Appendix Transfer of possession in 2014 Koblenz, Löhrstraße 40 Built 2002 modernized H&M, Württembergische Main-Tenant Versicherung Leased area 3,377 m² Annual rental income € 0.68 million Remaining term 5.3 years Gross initial yield 6.2 % Purchase price € 11.0 million 36
Slide 37: Transfer of possession in 2015
Appendix Transfer of possession in 2015 Aachen, Krefelder Straße 216 Built 2014 Main-Tenant Jobcenter Aachen Leased area approx. 10,000 m² Annual rental income € 1.7 million Remaining term 14.75 years Gross initial yield 6.4 % Purchase price € 26.8 million Celle, An der Hasenbahn 3 Built 1975, moder
Slide 38: Signed, transfer of possession expected end of 2015
Appendix Signed, transfer of possession expected end of 2015 Berlin, Tempelhofer Damm Built (under construction) Kaisers, Aldi, Main-Tenant Rossmann,… Leased area approx. 5,900 m² Expected annual rental income € 1.15 million Remaining term 12 years Expected gross initial yield 6.3 % Expected purchas
Slide 39: Disposals 2014 (1/2)
Appendix Disposals 2014 (1/2) January 2014 February 2014 April 2014 July 2014 Moers Hanover Frankfurt Berlin Price € 2.4m Price € 5.7m Price € 5.3m Price € 4.9m September 2014 December 2014 Hamburg Kamp-Lintfort Wuppertal Price € 2.8m Price € 1.9m Price € 3.4m 39
Slide 40: Disposals still to be transferred (2/2)
Appendix Disposals still to be transferred (2/2) December 2015 January 2016 Düren Kassel Price € 1.8m Price € 0.7m Rental income per year for the sold objects: approx. € 2.1 million Rental contracts 28 residential contracts 22 commercial contracts Selling price approx. € 28.8 million Total # of prop
Slide 41: Historical development of the company
Appendix 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 as a property company Asset Adm
Slide 42: REIT: Requirement for G-REIT's
Appendix [R]eal [E]state [I]nvestment [T]rust – REIT: Requirement for G-REIT´s 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 net profit* has to be paid as
Slide 43: Financial Calendar
Appendix Financial Calendar HAMBORNER REIT AG Interim Report for 1 half 2015 12 August 2015 Interim Report for 3rd quarter 2015 10 November 2015 Annual report 2015 22 March 2016 Annual General Meeting 2016 27 April 2016 43
Slide 44: 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 Sybille Schlinge – Investor Relations T +49 (0)203 / 54405-32 M s.schlinge@hamborner.de 44
Slide 45: 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