Hamborner Reit Ag · XETR:HABA
Hamborner Reit — Non-Deal Roadshow (November 2015)
34 slides from Hamborner Reit's roadshow presentation, November 2015
Slide 1: Roadshow Presentation
Roadshow Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz November 2015
Slide 2: Key investment highlights
Creating sustainable shareholder value Key investment highlights Increasing portfolio quality Enhancing efficiency, increasing cash flow and dividend per share Strong asset and portfolio management Robust financial position Capital markets track record 2
Slide 3: History: Historical development of the company
History 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 Admi
Slide 4: Balanced portfolio with 100% German focus
Increasing portfolio quality Balanced portfolio with 100% German focus Geographical portfolio spread Diversification of asset types → 72 properties in 56 cities in Germany → Focus on West and South-West Schleswig- Holstein → approx. € 843 million portfolio value Mecklenburg- Western Pomerania Bremen
Slide 5: Regional diversification
Increasing portfolio quality Regional diversification Federal State Numer of objects Share in the market value of total portfolio Northrine-Westfalia 31 28% Bavaria 9 23% Schleswig- Baden-Wurttemberg 8 15% Holstein Mecklenburg- Hamburg Western Pomerania Hesse 7 10% Bremen Berlin Lower Saxony Lower S
Slide 6: 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 7: Investments in 2015
Increasing portfolio quality Investments in 2015 Aachen, Celle, Krefelder Straße 216 An der Hasenbahn 3 Built 2014 1975, modernized 2014 Main tenant Jobcenter Aachen real,-, Fressnapf, Aldi Leased area approx. 10,000 m² approx. 24,500 m² Annual rental income € 1.7 million approx. € 2.32 million Rema
Slide 8: Investments in 2015
Increasing portfolio quality Investments in 2015 GIEßEN Fürth, (Hornschuch-Center) Gießen, (Westoria Gießen) Gabelsberger-Str. 1 Gottlieb Daimler Str. 27 Built Build 1990 / modernized 2014/15 Build 1983 / modernized 2008 Main tenant EDEKA, Schuh Mücke, Rossmann… Real,-, Saturn, McDonalds Leased area
Slide 9: Contract signed, transfer of possession expected end of 2015 and 2016
Increasing portfolio quality Contract signed, transfer of possession expected end of 2015 and 2016 Berlin, Neu Isenburg, Ditzingen, Tempelhofer Damm Schleussnerstraße 100-102 Dieselstraße Built 2014/15 2015 (under construction) (under construction), opening 03/2016 Main tenant Kaisers, Aldi, Rossman
Slide 10: Disposals 2015
Increasing portfolio quality Disposals 2015 December 2015 January 2016 December 2015 Krefeld Price € 1.35m Duisburg Price € 1.25m Düren Kassel Price € 1.8m Price € 0.7m St. Augustin Price € 3.15m Rental income per year for the sold objects: approx. € 0.7 million Rental contracts 7 residential contra
Slide 11: Sales since strategy change 2007
Increasing portfolio quality Sales since strategy change 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 million Book value at sale Fair value at s
Slide 12: 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 1000 869 900 843 + Berlin - Kassel 781 (€ 20m) 800 745 + Fürth (€ 1m) 717 (€ 30m) + Neu + Ditzingen 692 + Celle 700 + Giessen Isenburg (€ 13m ) + Aachen (€ 3
Slide 13: Increasing value per asset through acquiring larger assets
Increasing portfolio quality Increasing 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 4% € 5-10 million 15% 11,2 10,6 < € 5 million 9,6 8,4
Slide 14: 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% 97.8% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3 2015 → Vacancy rate as at 30 September 2015 incl. rent guarantees: 2.2 % → Vacancy rate
Slide 15: Long-term leases with strong tenants
Strong asset and portfolio management Long-term leases with strong tenants Top 10 tenants (30/09/2015, % of annual rent *) Weighted average lease expiry by type (in years) Tenant Sector EDEKA Discount food retail 13.9% 9.7 9.4 6.9 5.2 5.4 Kaufland Gruppe Discount food retail 9.2% 6.8 4.9 5.2 OBI Ret
Slide 16: Rental performance
Strong asset and portfolio management Rental performance (per 31 Dec 2014) Rental performance (per 30 September 2015) Lettable space Lettable space (sqm 355.9 thousand) (sqm 421.3 thousand) Rental performance = Rental Rentalperformance performance== sqm 32.8 thousand sqm sqm 34.3thousand 11.9 thousa
Slide 17: Stable and predictable cost of debt
Robust financial position Stable and predictable cost of debt Expiration of fixed interest rates (per 30 September 2015, as % of total financial debt) → Financial debt: € 347.6 million 25% → Liquid funds: € 49.6 million → LTV: 35.2 % 20% 20% 18% → REIT equity ratio: 61.4 % 15% 14% 16% → Average matu
Slide 18: Lower marginal funding costs
Robust financial position Lower marginal funding costs Average cost of debt Examples of recent debt financing → May 2015: 1,58% expiring 2025 → September 2015: 1,65% expiring 2025 5,12% 5,01% 4,77% 4,56% 4,48% 4,42% 3,92% 3,92% 3,44% 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec Sept 2015
Slide 19: Low LTV equity ratio well within REIT criteria
Robust financial position Low LTV equity ratio well within REIT criteria Loan-to-value (%) → Figures: → LTV 50% 43.7% 43.3% 30.09.2015: 32.2% 39.1% 35.2% → REIT equity ratio 34.2% 28.1% 30.09.2015: 61.4 % 22.9% 19.3% 12.0% 2007 2008 2009 2010 2011 2012 2013 2014 Q3 2015 LTV Maximum target LTV 19
Slide 20: 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% 717 → Efficient organisation 692 700 → Internal management → 2 board members 600 580 30% → 31 employees 22.2 % 50
Slide 21: 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 €) 62.0 50.0 2x Capital Increases in 2015 45.5 45.5 45.5 Capital Increase # shares in million 34.1 34.1 Capital Increase 23.8 24.6 22.0 22.7 22.7 18.9 FFO
Slide 22: Outlook for 2015
Outlook for 2015 …as at 30/09/2015 1. Conclusion Successful first three quarters 2015 Positive development of operational business Capital Increase in February : 4,549,332 new shares, net proceeds of approx. € 40.9 million – RAG Stiftung new shareholder Capital Increase in July 2015: 11,959,948 new
Slide 23: 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) 700 100% → 2007: Start of new strategy 600 500 80% → 2010: Achievement of G-REIT status and change of 400 company name to HAMBORNER REIT AG 60% 300 600 → October 2
Slide 24: …resulting in increased liquidity
Capital markets track record …resulting in increased liquidity Share price development last 5 years Average turnover per day since 2009 # of shares 177,000 90,000 69,000 69,000 42,000 4,500 15,000 2009 2010 2011 2012 2013 2014 Jan-Oct 2015 24
Slide 25: Appendix
hamborner su! REIT nt ML wy ZUKUNFT BRAUCHT SUBSTANZ ME Appendix 25
Slide 26: 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 27: 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 27
Slide 28: Income statement (IFRS)
Appendix Income statement (IFRS) in € thousand 2013 2014 Q3 2015 Net rental income 40,933 42,858 35,103 Administrative expenses -1,131 -1,109 -873 Personnel expenses -3,311 -3,452 -2,648 Depreciation -16,379 -17,841 -13,773 Other operating income 1,334 714 813 Other operating expenses -1,030 -1,277
Slide 29: Funds from operations
Appendix Funds from operations in € thousand 2013 2014 Q3 2015 Q3 2014 Net rental income 40,933 42,858 35,103 31,977 - Administrative expenditure -1,131 -1,109 -873 -753 - Personnel costs -3,311 -3,452 -2,648 -2,477 + Other operating income 334 714 813 439 - Other operating expenses -790 -984 -553 -
Slide 30: Balance sheet (IFRS)
Appendix Balance sheet (IFRS) in € million 31. Dez 13 31. Dez 14 30. Sept 15 ASSETS Non-current assets 595.4 607.8 724.3 Investment Properties 595.4 606.8 722.1 Other 1 2.2 Current assets 35.4 13.5 56.7 Trade receivables and other assets 0.8 1.3 1.7 Bank deposits and cash balances 28.2 10.4 49.6 Non
Slide 31: Premium of the XETRA-closing price to NAV of +1.4%
Appendix Premium of the XETRA-closing price to NAV of +1.4% (per 30 Sept 2015) Net asset value (in accordance with EPRA) in € million 31. Dez 13 31. Dez 14 30. Sept 15 Share price / NAV Balance sheet long-term assets 596 608 724 + Balance sheet short-term assets 36 13 57 8.65 € 8.53 € +1.4 % - Non-c
Slide 32: Financial Calendar
Appendix Financial Calendar HAMBORNER REIT AG Interim Report for 3rd quarter 2015 10 November 2015 Annual report 2015 22 March 2016 Interim Report for 1st quarter 2015 27 April 2016 Annual General Meeting 2016 28 April 2016 32
Slide 33: 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 33
Slide 34: 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