Slide 1: Company Presentation
Company Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz April 2016
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation April 2016 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 board members 31 employees Directly owned property Internal management of REIT German-wide portfolio Only infrastructural building services externally Market value of propertie
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 → 2010: Achievement of G-REIT status and change of company name to HAMBORNER REIT AG → October 2010: Successful Capital Inc
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 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Turnover (in thousands) HAMBOR
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation April 2016 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 and → Focus on quality properties, location and property strategy South-West Germany determined by asset type: → Focus on towns and cities outside the mai
Slide 10: Balanced portfolio with 100% German focus
Portfolio-Management Balanced portfolio with 100% German focus (as at 31. Dec. 2015) Geographical portfolio spread Diversification of asset types → 69 properties in 55 cities in Germany → Focus on West and South-West Schleswig- Holstein → € 900 million portfolio value Mecklenburg- Western Pomerania
Slide 11: Regional diversification
Portfolio-Management Regional diversification (as at 31. Dec 2015) Federal State Number of objects Share in the market value of total portfolio North Rhine-Westphalia 26 26% Bavaria 9 22% Baden-Wurttemberg 8 14% Hesse 8 11% Lower Saxony 6 8% Berlin 2 7% North NorthRhine- Rhine- Westphalia Westphalia
Slide 12: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 943 900 Change of strategy 717 692 580 504 376 308 281 273 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 03/2016 Company Presentation April 2016 12
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 2006-2015 (in € million) 2006 (100% = 54 properties) 31/12/2015 (Number of properties = 69) > € 10 million € 5-10 million 4% 15% 13.0 10.5 9.6 81% 8.4 < € 5 milli
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
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
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.
Slide 17: Divestments 2016
Portfolio-Management Divestments 2016 Disposal of properties 2015 Total # of properties 4 Duisburg St. Augustin Total selling price € 8 million Price € 1.25m Price € 3.15m Rental income per year for the sold objects € 0.7 million Krefeld Düren 8 residential contracts Rental contracts Price € 1.35m P
Slide 18: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation April 2016 18
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% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 → Vacancy rate as at 31/12/2015 incl. rent guarantees: 1.9 % Company Presentation April 2016 19
Slide 20: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (31/12/2015, in years) 9.5 6.9 4.8 5.4 Office Highstreet Large-scale Total retailing Split of lease contracts expiring by year (31/12/2015) 36% 13% 12% 9% 5% 8% 8% 5% 4% 2016 2017 2018 2019 2020 2021 2022 2023 2024 and later Com
Slide 21: Solid tenants
Asset-Management Solid tenants Top 10 tenants (31/12/2015, % of annual rent) Tenant Sector EDEKA-Group Discount food retail 13.6% Kaufland Group Discount food retail 9.0% OBI Retail (DIY) 7.1% real,- Discount food retail 5.3% Jobcenter Agency of unemployment 4.6% REWE-Group Discount food retail 2.2%
Slide 22: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation April 2016 22
Slide 23: Strong financial fiscal year 2015
Financial Figures / Financial Position Strong financial fiscal year 2015 Highlights Increase of income from rents and leases: + 12% FFO increase: + 19% (FFO per share: € 0.47 ) Two capital increases: Proceeds € 142.6 million Total invested volume: approx. € 157 million (six assets) Divestm
Slide 24: Significant key figures for 2015
Financial Figures / Financial Position Significant key figures for 2015 Key figures 2015 2014 Change Rental revenues € 52.4 million € 46.8 million + 12 % EBIT € 27.1 million € 30.6 million - 11 % Profit for the period € 13.8 million € 17.1 million - 19 % Funds from Operations (FFO) € 29.2 million €
Slide 25: Portfolio development 2015
Financial Figures / Financial Position Portfolio development 2015 Purchases/Capex + € 165 million Revaluation Portfolio value (incl. € 7m valuation gain) + € 26 million € 900 million Portfolio value € 717 million Sales - € 8 million 31/12/2014 31/12/2015 25 Company Presentation April 2016
Slide 26: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1000 40% 900 900 800 717 30% 692 700 2006: 22.2 % 600 580 504 500 20% 400 376 273 2015: 308 281 9.6 % 300 10% 186 200 100 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 27: NAV per share - growth
Financial Figures / Financial Position NAV per share - growth NAV per share NAV per share 31/12/2014: € 8.67 € 9.11 Number of shares: 45,493,333 € 8.67 + 5.1 % NAV per share 31/12/2015: € 9.11 Number of shares: 62,002,613 Capital increases, portfolio growth and revaluation were NAV-accretive on per
Slide 28: Cost of debt
Financial Figures / Financial Position Cost of debt Expiration of fixed interest rates (per 31/12/2015, as % of total financial debt) → Financial debt: € 344.3 million 25% → Liquid funds: € 27.1 million 23% → LTV: 35.0 % 20% 18% → REIT equity ratio: 61.5 % 16% 15% 13% → Average maturity of fixed int
Slide 29: 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% 31 Dec 2007 31 Dec 2008 31 Dec 2009 31 Dec 2010 31 Dec 2011 31 Dec 2012 31 Dec 2013 31 Dec 2014 31 Dec 2015 Company Presentation April 2016 29
Slide 30: Low LTV, equity ratio well within REIT criteria
Financial Figures / Financial Position Low LTV, equity ratio well within REIT criteria Loan-to-value (%) 50% Figures: → LTV 43.7% 43.3% 39.1% 34.2% 35.0% 31/12/2015: 35.0 % 28.1% 22.9% 19.3% → REIT equity ratio 12.0% 31/12/2015: 61.5 % 2007 2008 2009 2010 2011 2012 2013 2014 2015 LTV Maximum target
Slide 31: 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 9.7
Slide 32: Conclusion
Conclusion Successful financial year 2015 Positive development of operational business Increasing portfolio value to € 900 million Increasing portfolio quality with the sale of eight smaller properties with high administrative requirements and the purchase of six assets in Aachen, Celle, Fürth
Slide 33: 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 April 2016 33
Slide 34: Many thanks for your attention! Financial Calendar
Financial Calendar HAMBORNER REIT AG Annual Report 2015 22 March 2016 Interim Report for 1st quarter 2016 27 April 2016 AGM 2016 28 April 2016 Dividend payment 29 April 2016 Interim Report for 1st half 2015 10 August 2016 Interim Report for 3rd quarter 2015 08 November 2016 Many thanks for your atte
Slide 35: 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
Slide 36: 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