Slide 1: Company presentation: Preliminary figures 2018
Company presentation Preliminary figures 2018 Dr. Rüdiger Mrotzek Hans Richard Schmitz 7 February 2019
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | Preliminary figures 2018 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)
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 39 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 789 721 731 ▪ 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 January 2018 = 100% Number of shares 110% 600.000 105% 500.000 100% 400.000 95% 300.000 90% 200.000 85% 80% 100.000 75% 0 01.18 03.18 04.18 05.18 06.18 07.18 08.18 09.18 11.18 12.18 01.
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | Preliminary figures 2018 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: Balanced portfolio with 100% German focus
Portfolio-Management Balanced portfolio with 100% German focus Geographical portfolio spread Diversification of asset types ▪ 78 properties in 60 cities in Germany ▪ Focus on West, South and South-West Schleswig- Holstein ▪ € 1.517 billion portfolio value Mecklenburg- Western Pomerania Bremen Berlin
Slide 11: Regional diversification
Portfolio-Management Regional diversification Federal State Number of properties Share in market value of total portfolio (31 December 2018) Northrhine-Westphalia 28 26% Bavaria 10 19% Baden-Wurttemberg 10 16% Hessen 9 12% Berlin 4 9% Lower Saxony 6 6% North NorthRhine- Rhine- Westphalia Westphalia
Slide 12: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 1,517 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 Company presentation | Preliminary fi
Slide 13: Portfolio structure
Portfolio-Management Portfolio structure Portfolio split by property value Average value per asset (in € million) 31 Dezember 2006 31 December 2018 (Number of properties = 78) > € 10m 19.5 18.4 € 5-10m 4% 15% 16.2 100% = 54 properties 13.0 81% 10.5 < € 5m 9.6 8.4 31 Dezember 2018 7.3 < € 5m 6.1 13%
Slide 14: Investments 2018
Portfolio-Management Investments 2018 Düsseldorf Cologne Harffstraße Unter Linden 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 lease term 10.0 years(1) 8.1 years(1) Gross initial
Slide 15: Investments 2018
Portfolio-Management Investments 2018 Bonn Darmstadt Basketsring Leydhecker Strasse 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 lease term 10.0 years(1) 5.9 years(1) Gross initial yield 5.
Slide 16: Investments 2018: Transfer of possession 2018/2019
Portfolio-Management Investments 2018 Transfer of possession 2018/2019 Berlin Bamberg Landsberger Allee Starkenfeldstrasse Built 1975 (Modernized in 2011) 2013 Main tenants Globus Baumarkt EDEKA, Perbility, Bosch BKK, IG Metall Leased area 16,500 m2 6,100 m2 Annual rental income € 1.7 million € 0.83
Slide 17: Investments 2018: Transfer of possession 2019/2020
Portfolio-Management Investments 2018 Transfer of possession 2019/2020 Aachen Bonn Gut-Dämme-Straße/Grüner Weg Krähenhorst/Soenneckenstraße Built 2019 (under construction) 2019 (under construction) Main tenants Barmer, … Barmer, … Leased area 8,200 m2 6,200 m2 Annual rental income € 1.5 million € 1.
Slide 18: Divestments 2018
Portfolio-Management Divestments 2018 Brunnthal Undeveloped land Selling price: € 11.2 million Plot size: 200,000 m² Fair value as of 31 December 2017: € 11.1 million Selling price: € 0.8 million Book value as of 30 September 2018: € 10.2 million Book value as of 31 December 2017: € 0.2 million Book
Slide 19: Divestments since change of strategy in 2007
Portfolio-Management Divestments since change of strategy in 2007 € 94.6m € 92.5m + 2.3% + 42.0% € 66.1m Disposal of 28 commercial properties: € 92.7m → Average selling price: € 3.3m → Average multiple: 13.8 → Total annual rental income: € 7.2m Book Value Fair Value Selling Price at time of disposal
Slide 20: Portfolio development
Portfolio-Management Portfolio development Acquisitions 2018 Sales 2018 Like-for-like portfolio Portfolio value € 1,517.3m Portfolio value € 1,362.6m Purchase prices Revaluation Sales Capex Revaluation + € 118.6m + € 5.4m - € 11.1m + € 1.8m + € 40.0m 31 December 31 December 2017 2018 Company present
Slide 21: Portfolio development
Portfolio-Management Portfolio development Portfolio value Portfolio value € 1,583.4 million 1,517.3 million Portfolio value 1,362.6 millon Bamberg (+ €15.0m)(1) Aachen (+ €28.3m)(1) Bonn (+ €22.8m)(1) 31 December 31 December … 2017 2018 2019/2020 Company presentation | Preliminary figures 2018 (1)
Slide 22: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company presentation | Preliminary figures 2018 22
Slide 23: 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% 98.7% 98.6% 98.7% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 → Vacancy rate as of 31 December 2018 (incl. rent guarantees): 1.3 % → Vacancy rate as of 31 December 2018 (excl. rent guarantees):
Slide 24: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (31 December 2018, in years) 7,7 6,3 6,2 4,5 4,7 Large-scale High street Other Office Total retail retail retail portfolio Split of lease contracts expiring by year (31 December 2018) 22% 13% 10% 11% 10% 9% 7% 8% 5% 5% 2019 2020
Slide 25: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 31 December 2018) Tenant Sector % annual rents* EDEKA Group Food retail 11.6% 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% Globus DIY stores DIY retai
Slide 26: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company presentation | Preliminary figures 2018 26
Slide 27: Successful fiscal year 2018
Financial Figures / Financial Position Successful fiscal year 2018 Highlights ▪ Income from rents and leases: + 12.6% ▪ Funds from operations (FFO): + 17.7% ▪ Vacancy rate: 1.7 % (incl. rent guarantees) ▪ Acquisition of five properties in Cologne, Bonn, Düsseldorf, Darmstadt and Berlin → Total inves
Slide 28: Significant preliminary key figures 2018
Financial Figures / Financial Position Significant preliminary key figures 2018 2018 2017 Change Kennzahlen Preliminary figures Income from rents and leases € 83.4 million € 74.1 million + 12.6 % Operating result € 32.8 million € 29.4 million + 11.8 % Profit for the period € 19.4 million € 17.7 mill
Slide 29: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 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% 2018 6.9 % 0 0% 2006 2007 2008 2009 2010 2011 2012
Slide 30: Financial liabilities
Financial Figures / Financial Position Financial liabilities Expiration of financial liabilities (as of 31 December 2018) Refinancing/ Bonded loans 56.4 % Repayment largely Ø interest rate: 1.5% concluded Ø maturity: 4.6 years REIT Equity ratio 42.5 % LTV 1.7% €719.5m 23.8% Financial liabilities* 8.
Slide 31: 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 # shares in million
Slide 32: Outlook
Outlook Forecast 2019 ▪ Income from rents and leases: + 1 % – 2 % ▪ Expected FFO at the current high level ▪ Forecast does not take into account further acquisitions or disposals ▪ Additional acquisitions in the course of 2019 would have a further positive effect on rental income and operating resul
Slide 33: Many thanks for your attention!
Financial Calendar HAMBORNER REIT AG - Financial Calendar Annual report 2018 27 March 2019 Interim Report for 1st quarter 2019 2 May 2019 AGM 2019 7 May 2019 Interim Report for 1st half 2019 1 August 2019 Interim Report for 3rd quarter 2019 7 November 2019 Many thanks for your attention! Company pre
Slide 34: TOP 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 35: TOP 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 36: TOP Cities in Germany
Appendix TOP 50 Cities in Germany High attractiveness in terms of ▪ Demographic development ▪ Centrality ▪ Purchase power ▪ Future opportunities Schleswig- Holstein Aachen* Ingolstadt* Mecklenburg- Western-Pomerania Aschaffenburg Karlsruhe* Hamburg Augsburg* Kempten Oldenburg Bad Homburg* Koblenz* B
Slide 37: Consumer purchasing behaviour in Germany
Appendix Consumer purchasing behaviour in Germany Share of eCommerce in retail sales 26.1% consumer electronics 28.7% 23.5% fashion & accessoires 25.6% 22.7% sports & hobby 24.3% 19.8% office & stationery 21.5% 14.8% jewellery & watches 16.4% 11.6% health & wellness 12.3% 10.7% furniture & interior
Slide 38: 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 | P
Slide 39: 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