Hamborner Reit Ag · XETR:HABA

Hamborner Reit — Investor Presentation (May 2016)

35 slides from Hamborner Reit's investor presentation, May 17, 2016

1. Slide 1: Company Presentation

   Company Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz May 2016

2. Slide 2: Agenda

   Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation May 2016 2

3. 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

4. Slide 4: Real Estate Investment Trust (REIT) requirements for G-REITs

   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

5. 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 board members 32 employees  Directly owned property  Internal management of REIT  German-wide portfolio  Only infrastructural building services externally  Market value of propertie

6. Slide 6: Growing market capitalization and increasing free float

   History / Capital markets track record Growing market capitalization and increasing free float Overview events Historic market cap (€ million) → 2007: Start of new strategy 596 590 → 2010: Achievement of G-REIT status and change of company name to HAMBORNER REIT AG → October 2010: Successful Capital

7. Slide 7: HAMBORNER REIT AG share

   History / Capital markets track record HAMBORNER REIT AG share Development of share price and turnover 5.000 11,00 € 4.000 10,00 € 9,00 € 3.000 8,00 € 2.000 7,00 € 1.000 6,00 € 0 5,00 € Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 15 15 15 15 15 15 15 15 15 15 15 15 16 16 16 Turnover

8. Slide 8: Agenda

   Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation May 2016 8

9. Slide 9: Well defined acquisition strategy

   Portfolio-Management 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 the mai

10. Slide 10: Balanced portfolio with 100% German focus

    Portfolio-Management Balanced portfolio with 100% German focus (as at 31. March 2016) Geographical portfolio spread Diversification of asset types → 67 properties in 55 cities in Germany → Focus on West and South-West Schleswig- Holstein → € 943 million portfolio value Mecklenburg- Western Pomerania

11. Slide 11: Regional diversification

    Portfolio-Management Regional diversification (as at 31. March 2016) Federal State Number of objects Share in the market value of total portfolio North Rhine-Westphalia 23 23% Bavaria 9 22% Baden-Wurttemberg 8 14% Hesse 8 10% Lower Saxony 6 8% Berlin 2 7% North NorthRhine- Rhine- Westphalia Westphal

12. Slide 12: Portfolio Development

    Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 943 900 717 Change of strategy 692 580 504 376 308 281 273 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 Company Presentation May 2016 12

13. 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) 2006 (100% = 54 properties) 31/03/2016 (Number of properties = 67) > € 10 million € 5-10 million 4% 14.0 15% 13.0 10.5 9.6 81% 8.4 < € 5 million 7.

14. Slide 14: Investments 2015 (1/2)

    Portfolio-Management Investments 2015 (1/2) Aachen, Celle, Fürth, (Hornschuch-Center) Gut-Dämme-Str. 14 An der Hasenbahn 3 Gabelsberger-Str. 1 Built 2014 1975 / modernized 2014 Build 1990 / modernized 2014/15 Main tenant Jobcenter Aachen real,-, Fressnapf, Aldi EDEKA, Schuh Mücke, Rossmann… Leased a

15. Slide 15: Investments 2015 (2/2)

    Portfolio-Management Investments 2015 (2/2) Gießen, (Westoria Gießen) Berlin, Neu Isenburg, Gottlieb Daimler Str. 27 Tempelhofer Damm 198-200 Schleussnerstraße 100-102 Built Build 1983 / modernized 2008 2014/15 2015 Main tenant real,-, Saturn, McDonalds Kaisers, Aldi, Rossmann REWE, dm Leased area a

16. Slide 16: Investments 2016

    Portfolio-Management Investments 2016 Lübeck, (Haerder-Center), Ditzingen, Münster, (Deilmann-Park), Sandstraße Dieselstraße Martin-Luther-King-Weg 30/30a Built 2008 2016 2016 Main tenant H&M, New Yorker, REWE, mytoys hagebaumarkt FOM University Leased area approx. 13,300 m2 approx. 9,400 m2 approx.

17. Slide 17: Divestments 2015/Transfer of possession 2016

    Portfolio-Management Divestments 2015/Transfer of possession 2016 Duisburg Dinslaken Solingen Kassel Price: € 2.64 million Price: € 1.94 million Price: € 3.17 million Selling price: € 0.7 million Transfer of poss. 28/01/2016 Transfer of poss. 28/01/2016 Transfer of poss. 28/01/2016 Transfer of poss.

18. Slide 18: Agenda

    Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation May 2016 18

19. Slide 19: High and stable occupancy

    Asset-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% 98,1% 98,8% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 → Vacancy rate as at 31/03/2016 incl. rent guarantees: 1.2 % Company Presentation May 2016 19

20. Slide 20: Long-term leases

    Asset-Management Long-term leases Weighted average lease expiry by type (31/03/2016, in years) 9.2 5.3 6.7 4.9 Office Highstreet Large-scale Total retailing Split of lease contracts expiring by year (31/03/2016) 37% 14% 12% 4% 2% 8% 8% 9% 6% 2016 2017 2018 2019 2020 2021 2022 2023 2024 and later Com

21. Slide 21: Solid tenants

    Asset-Management Solid tenants Top 10 tenants (31/03/2016, % of annual rent) Tenant Sector EDEKA Group Discount food retail 13.3% Kaufland Group Discount food retail 8.6% OBI Retail (DIY) 6.8% real,- Discount food retail 5.1% Jobcenter Agency of unemployment 4.4% H&M Textile retail 2.8% REWE Group D

22. Slide 22: Agenda

    Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation May 2016 22

23. Slide 23: Strong first quarter 2016

    Financial Figures / Financial Position Strong first quarter 2016 Highlights  Positive operational business development  Increase of income from rents and leases: + 23.2%  FFO increase: + 35.8%  Vacancy rate: 1.2% (1.6% excl. rent guarantees)  Transfer of possession of Haerder-Centre in Lübeck o

24. Slide 24: Significant key figures for the first quarter 2016

    Financial Figures / Financial Position Significant key figures for the first quarter 2016 Key figures Q1 2016 Q1 2015 Change Rental revenues € 14.7 million € 11.9 million + 23.2 % Operating result € 7.0 million € 5.6 million + 25.8 % Profit for the period € 6.1 million € 2.4 million n/a Funds from o

25. Slide 25: Portfolio development 2016

    Financial Figures / Financial Position Portfolio development 2016 Portfolio value € 961 million Portfolio value € 943 million Portfolio value Portfolio value € 900 million € 892 million transfers of ownership transfer of ownership transfer of ownership 28/01/2016 29/02/2016 Q2/2016e Duisburg (€ - 2.

26. Slide 26: Benefitting from economies of scale

    Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1000 943 30% 900 900 800 717 692 700 2006 20% 600 580 22.2 % 504 500 400 376 308 10% 281 273 300 186 200 Q1/2016 100 8.3 % 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 201

27. Slide 27: Stable and predictable cost of debt

    Financial Figures / Financial Position Stable and predictable cost of debt Expiration of fixed interest rates (31/03/2016) → Financial debt: € 384.2 million 23% → Liquid funds: € 28.3 million → LTV: 37.6 % 16% → REIT equity ratio: 59.6 % 14% 12% 9% → Average maturity of fixed interest 7% 6% rates: 6

28. Slide 28: Lower marginal funding costs

    Financial Figures / Financial Position Lower marginal funding costs Average cost of debt 5.12% 5.01% 4.77% 4.56% 4.48% 4.42% 3.92% 3.92% 3.31% 3.20% 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Mar 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Company Presentation May 2016 2

29. Slide 29: Low LTV, equity ratio well within REIT criteria

    Financial Figures / Financial Position Low LTV, equity ratio well within REIT criteria Loan-to-value (%) ---------------------------------------------- Maximum Target LTV = 50% -------------------------------------------- Figures: 43.7% 43.3% → LTV 39.1% 37.6% 34.2% 35.0% 31/03/2016: 37.6% 28.1% 22.

30. Slide 30: Increasing FFO and dividend per share

    Financial Figures / Financial Position Increasing FFO and dividend per share Funds From Operations (FFO) per share (in €) 62.0 Capital 50.0 Increase 2x Capital Capital 45.5 45.5 45.5 Increases in 2015 Increase 29.2 34.1 34.1 23.8 24.6 # shares in million 22.7 22.7 18.9 16.0 FFO absolute (€m) 12.2 9.

31. Slide 31: Conclusion and outlook

    Conclusion and outlook 1. Conclusion/Summary  Successful first quarter 2016  Positive development of operational business  Transfer of possession of Haerder-Centre in Lübeck on 29/02/2016  Purchase contract signed for office property in Münster  Disposal of three smaller properties in Dinslaken

32. Slide 32: Creating sustainable shareholder value

    HAMBORNER REIT AG Creating sustainable shareholder value  Strong asset- and portfolio management  Increasing portfolio quality  Robust financial position  Enhancing efficiency, increasing cash flow and dividend per share  Capital markets track record Company Presentation May 2016 32

33. Slide 33: Many thanks for your attention!

    Financial Calendar HAMBORNER REIT AG Interim Report for 1st half 2016 10 August 2016 Interim Report for 3rd quarter 2016 8 November 2016 Annual report 2016 28 March 2017 Interim Report for 1st quarter 2017 09 May 2017 AGM 2017 10 May 2017 Many thanks for your attention! Company Presentation May 2016

34. Slide 34: 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 Christoph Heitmann – Investor Relations T +49 (0)203 / 54405-32 M c.heitmann@hamborner.de Company Presentatio

35. Slide 35: 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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