Hamborner Reit Ag · XETR:HABA
Hamborner Reit — Investor Presentation (August 2019)
40 slides from Hamborner Reit's investor presentation, August 2019
Slide 1: Company presentation
Company presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz August 2019
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | August 2019 2
Slide 3: 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 38 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 789 721 718 ▪ 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) 29.06.2018 = 100% Number of shares 115% 600.000 110% 500.000 105% 400.000 100% 95% 300.000 90% 200.000 85% 100.000 80% 75% 0 06.18 08.18 09.18 10.18 11.18 12.18 01.19 02.19 04.19 05.19 06.
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | August 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 also on towns and cities out
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 61 cities in Germany ▪ Focus on West, South and South-West Schleswig- Holstein ▪ € 1.517 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 19% 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 1,532 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 August 2019 Company presentatio
Slide 14: Portfolio structure
Portfolio-Management Portfolio structure Portfolio split by property value Average value per asset (in € million) 31 December 2006 August 2019 (Number of properties = 79) > € 10m 19.5 19.4 18.4 € 5-10m 4% 15% 16.2 100% = 54 properties 13.0 81% 10.5 < € 5m 9.6 8.4 August 2019 7.3 < € 5m 6.1 13% 5.1 5
Slide 15: Investments 2018
Portfolio-Management Investments 2018 Düsseldorf Cologne Harffstraße Unter Linden Asset type Large-scale retail Large-scale retail 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 le
Slide 16: Investments 2018
Portfolio-Management Investments 2018 Bonn Darmstadt Basketsring Leydhecker Strasse Asset type Large-scale retail Large-scale retail/Office 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 leas
Slide 17: Investments 2018
Portfolio-Management Investments 2018 Berlin Landsberger Allee Asset type Large-scale retail (DIY store) Built 1975 (Modernized in 2011) Main tenants Globus Baumarkt Leased area 16,500 m2 Annual rental income € 1.7 million Remaining lease term 11.6 years(1) Gross initial yield 5.3 % Purchase price €
Slide 18: Investments 2019
Portfolio-Management Investments 2019 Bamberg Starkenfeldstrasse Asset type Large-scale retail/office Built 2013 Main tenants EDEKA, Perbility, Bosch BKK, IG Metall Leased area 6,160 m2 Annual rental income € 0.84 million Remaining lease term 8.0 years(1) Gross initial yield 5.6 % Purchase price € 1
Slide 19: 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 incom
Slide 20: Investments 2019 – Transfer of possession 2020
Portfolio-Management Investments 2019 Transfer of possession 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 price
Slide 21: Divestment 2019
Portfolio-Management Divestment 2019 Leverkusen Asset type: 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: Q3 2019e Company presentation | August 2019 21
Slide 22: 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 23: Portfolio development
Portfolio-Management Portfolio development Portfolio value Portfolio value € 1,598.0 million Portfolio value 1,532.2 million 1,517.3 millon Aachen (+ €28.3m)(1) Bonn (+ €22.8m)(1) Bamberg (+ €14.9m)(1) Neu-Isenburg (+ €16.1m)(1) Leverkusen (- €1.4m)(2) 31 December August … 2018 2019 2020 Company pre
Slide 24: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | August 2019 24
Slide 25: 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 H1 2019 → Vacancy rate as of 30 June 2019 (incl. rent guarantees): 2.0 % → Vacancy rate as of 30 June 2019 (excl.
Slide 26: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (30 June 2019, in years) 9.0 6.7 6.8 4.7 4.1 Large-scale High street Other Office Total retail retail retail portfolio Split of lease contracts expiring by year (30 June 2019) 30% 3% 11% 11% 8% 9% 5% 6% 8% 9% 2019 2020 2021 2022
Slide 27: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 30 June 2019) Tenant Sector % annual rents* EDEKA Group Food retail 11.7% 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% NetCologne Telecommunication 2.
Slide 28: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company presentation | August 2019 28
Slide 29: Significant key figures H1 2019
Financial Figures / Financial Position Significant key figures H1 2019 H1 2019 H1 2018 Change Income from rents and leases € 42.3 million € 41.3 million +2.3% Operating result € 16.9 million € 17.1 million -1.0% Profit for the period € 9.2 million € 9.5 million -2.8% Funds from operations (FFO) € 26
Slide 30: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1,517 1,517 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% H1 2019 7.2 % 0 0% 2006 2007 2008 2009 2010 2
Slide 31: Financial liabilities
Financial Figures / Financial Position Financial liabilities Expiration of financial liabilities (as of 30 June 2019) Refinancing/ Repayment Bonded loans Ø interest rate: 1.5% 55.2 % concluded Ø maturity: 4.1 years REIT Equity ratio 43.5 % LTV 1.7% €721.6m 23.4% Financial liabilities* 8.7% 13.7% 14.
Slide 32: 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 33: Outlook
Outlook Forecast ▪ Rental income 2019: + 1 - 2 % ▪ FFO 2019 expected on previous year‘s high level ▪ Remaining fire power: € 60 – 80 million ▪ Future growth in rents and FFO secured due to transfer of possession of assets in Aachen, Bonn and Neu-Isenburg in 2020 Dividend outlook ▪ Continuation of re
Slide 34: Many thanks for your attention! Financial Calendar
Financial Calendar HAMBORNER REIT AG - Financial Calendar Interim report for 1st half 2019 1 August 2019 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 Ma
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 | A
Slide 40: 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