Hamborner Reit Ag · XETR:HABA
Hamborner Reit — Investor Presentation (May 2018)
42 slides from Hamborner Reit's investor presentation, May 2018
Slide 1: Company Presentation
Company Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz May 2018
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation May 2018 2
Slide 3: Historical development of the company
History / Capital markets track record Historical development of the company Mining 1953 Foundation of the company: HAMBORNER founded as a mining company 1954 Listed on stock exchange as HAMBORNER Bergbau AG 1969 Integration of the mining activities into Ruhrkohle AG Asset 1970 Continuation of HAMBO
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 33 board members employees ▪ Directly owned property ▪ Internal management ▪ German-wide portfolio ▪ Only infrastructural building services externally ▪ Market value of properties: € 1.4
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 ▪ 2010: Achievement of G-REIT status and change of 596 company name to HAMBORNER REIT AG ▪ October 2010: Capital Increase – net proce
Slide 7: HAMBORNER REIT AG share
History / Capital markets track record HAMBORNER REIT AG share Development of share price and turnover (1 year) 28 April 2017 = 100% Number of shares 140% 800.000 130% 700.000 600.000 120% 500.000 110% 400.000 100% 300.000 90% 200.000 80% 100.000 70% 0 04.17 06.17 07.17 08.17 09.17 10.17 11.17 12.17
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation May 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 (as of May 2018) Diversification of asset types (as of May 2018) ▪ 78 properties in 61 cities in Germany ▪ Focus on West and South-West Schleswig- Holstein Mecklenburg- ▪ € 1.451 billion portfolio value West
Slide 11: Regional diversification
Portfolio-Management Regional diversification Federal State Number of properties Share in market value of total portfolio (as of May 2018) Northrhine-Westphalia 28 27% Bavaria 11 19% Baden-Wurttemberg 10 16% Hessen 9 13% Berlin 3 6% Lower Saxony 6 6% North NorthRhine- Rhine- Westphalia Westphalia Sc
Slide 12: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 1,451 1,363 1,115 Change of strategy 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 May 2018 Company Presentation May 2018 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 (in € million) 31 December 2006 (100% = 54 properties) May 2018 (Number of properties = 78) 18.4 18.6 > € 10 million 16.2 € 5-10 million 4% 15% 13.0 10.5 81% <€5
Slide 14: Investments 2017
Portfolio-Management Investments 2017 Cologne (O3) Hallstadt/Bamberg (Market Oberfranken) Am Coloneum Michelinstrasse Built 2006 1974 (modernized and expanded in 2006) Main tenants NetCologne Müller, tegut, C&A, Expert, ALDI Leased area approx. 26,500 m2 approx. 21,800 m2 Annual rental income € 2.8
Slide 15: Investments 2017
Portfolio-Management Investments 2017 Berlin Ratingen Märkische Allee Balcke-Dürr-Allee Built 2006 2017 Main tenants Kaufland SPIE, Capgemini Leased area approx. 6,500 m2 approx. 10,400 m2 Annual rental income € 0.9 million € 1.9 million Remaining lease term 7.6 years(1) 5.4 years(1) Gross initial y
Slide 16: Investments 2017
Portfolio-Management Investments 2017 Hanau (Rondo Steinheim) Kiel Otto-Hahn-Strasse Kaistrasse Built 2017 2017 Main tenants REWE, ALDI, dm, Deichmann Barmer GEK Leased area approx. 12,800 m2 approx. 6,550 m2 Annual rental income € 2.0 million € 1.2 million Remaining lease term 14.3 years(1) 9.3 yea
Slide 17: Investments 2017
Portfolio-Management Investments 2017 Passau (Neustiftcenter) Steinbachstrasse/Alte Poststrasse Built 2017 Main tenants REWE Leased area approx. 4,300 m2 Annual rental income € 0.9 million Remaining lease term 11.3 years(1) Gross initial yield 5.9 % Purchase price € 14.9 million Transfer of possessi
Slide 18: 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 9.8 years(1) 7.9 years(1) Gross initial
Slide 19: 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 approx. 19.400 m2 Annual rental income € 0.8 million € 2.5 million Remaining lease term 10.0 years(1) 5.9 Jahre(1) Gross initial
Slide 20: Divestments 2017
Portfolio-Management Divestments 2017 Duisburg „Kasslerfelder Kreisel“ Minden Selling price: € 9.5 million Selling price: € 4.5 million Fair value as of 31 Dec 2015: € 9.2 million Fair value as of 31 Dec 2016: € 4.5 million Book value as of 31 Dec 2016: € 7.2 million Book value as of 31 Dec 2016: €
Slide 21: Divestments since change of strategy in 2007
Portfolio-Management Divestments since change of strategy in 2007 € 83.4m € 81.5m + 2.5% + 47.8% € 56.4m Disposal of 27 commercial properties: € 81.5m → Average selling price: € 3.0m → Average multiple: 14.2 → Total annual rental income: € 5.9m Book Value Fair Value Selling Price at time of disposal
Slide 22: Portfolio development 2017
Portfolio-Management Portfolio development 2017 Acquisitions 2017 Sales 2017 Like-for-like portfolio Portfolio value € 1,362.6m Portfolio value € 1,115.0m Purchase prices Capex Revaluation Sales Capex Revaluation + € 214.5m + € 1.0m + € 12.1m - € 14.0m + € 1.9m + € 32.1m 31 Dec 2016 31 Dec 2017 Comp
Slide 23: Portfolio development 2018
Portfolio-Management Portfolio development 2018 Portfolio value € 1,451 million Portfolio value € 1,409 million Portfolio value € 1,363 million Transfer of possession Transfer of possession January 2018 April 2018 Cologne (€ +21.0m)(1) Darmstadt (€ +42.8m)(2) Düsseldorf (€ +10.5m)(1) Bonn (€ +14.2m)
Slide 24: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation May 2018 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% 98.7% 98.6% 99.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018 → Vacancy rate as of 31 March 2018 (incl. rent guarantees): 1.0 % → Vacancy rate as of 31 March 2018 (excl. rent guarantees): 1.
Slide 26: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (as of 31 March 2018, in years) 8.4 6.5 5.3 4.8 Office Highstreet large-scale retail Total Split of lease contracts expiring by year (as of 31 March 2018) 36% 4% 4% 12% 9% 10% 11% 7% 7% 2018 2019 2020 2021 2022 2023 2024 2025 20
Slide 27: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 31 March 2018, % of annual rent) Mieter Sector % annual rents* EDEKA Group Food retail 12.0% Kaufland Group Food retail 7.0% real,- Food retail 5.7% OBI DIY retail 5.3% REWE Group Food retail 3.6% Jobcenter Agency of unemployment 3.4% H&M Textile
Slide 28: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation May 2018 28
Slide 29: Successful first quarter 2018
Financial Figures / Financial Position Successful first quarter 2018 Highlights ▪ Increase in income from rents and leases: + 15.4% ▪ FFO increase: + 7.6% ▪ Vacancy rate: 1.0 % (incl. rent guarantees) ▪ Acquisition of three retail properties in Cologne, Bonn and Düsseldorf → Total invested volume: €
Slide 30: Significant Key figures for first quarter 2018
Financial Figures / Financial Position Significant Key figures for first quarter 2018 Key figures 31 Mar 2018 31 Mar 2017 Change Income from rents and leases € 20.4 million € 17.6 million +15.4% Operating result € 7.2 million € 7.7 million -5.9% Profit for the period € 3.5 million € 4.4 million -21.
Slide 31: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 25% 1,409 1400 1,363 1200 1,115 20% 2006 22.2 % 1000 900 15% 800 717 692 580 600 10% 504 376 400 281 308 273 5% 186 200 Q1 2018 6.7 % 0 0% 2006 2007 2008 2009 2010 2011 20
Slide 32: Financial liabilities
Financial Figures / Financial Position Financial liabilities Expiration of financial liabilities (as of 31 March 2018) 57.8 % Refinancing/ Bonded loans REIT Equity ratio Repayment Ø interest rate: 1.5% settled Ø maturity: 5.3 years 40.9 % LTV €716.1m Financial liabilities* 1.7% 24.4% 2.3 % 8.7% 14.7
Slide 33: Increasing FFO and dividend per share
Financial Figures / Financial Position Increasing FFO and dividend per share Funds From Operations (FFO) Capital (1) Calculation of FFO per share with outstanding shares at the respective time Increase 2 Capital Increases 79.7 79.7 Capital 62.0 44.7 Increase 50.0 Capital 45.5 45.5 45.5 36.1 Increase
Slide 34: Summary and outlook
Summary and outlook Conclusion/Summary ▪ Successful first quarter 2018 with positive development of operational business ▪ Vacancy rate: 1.0% ▪ Acquisition of 3 assets in Cologne, Düsseldorf and Bonn (transfer of possesion in January 2018) ▪ Transfer of possession of further retail/office property i
Slide 35: Many thanks for your attention!
Financial Calendar HAMBORNER REIT AG - Financial Calendar Interim report for first half 2018 9 August 2018 Interim Report for 3rd quarter 2018 8 November 2018 Preliminary figures 2018 7 February 2019 Annual report 2018 27 March 2019 Interim Report for 1st quarter 2019 2 May 2019 AGM 2019 7 May 2019
Slide 36: TOP 10 Properties (1/2)
Appendix TOP 10 Properties (1/2) Mannheim Munich Lübeck Berlin Cologne Kurpfalz Center NuOffice Haerder-Center EUREF-Campus O3 Asset type Retail Office High Street Office Office Year of acquisition 2016 2013 2016 2013 2017 Purchase price € 80.0 million € 40.1 million €49.1 million € 33.0 million € 4
Slide 37: TOP 10 Properties (2/2)
Appendix TOP 10 Properties (2/2) Hallstadt Hanau Darmstadt Celle Karlsruhe Market Oberfranken Rondo Steinheim Asset type Retail Retail/office Retail Retail/Office Retail Year of acquisition 2017 2018 2015 2012 2017 Purchase price € 41.4 million € 42.8 million € 35.2 million € 37.0 million € 37.5 mil
Slide 38: TOP 50 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 39: Survey: Consumer purchasing behaviour in Germany
Appendix Survey: Consumer purchasing behaviour in Germany Food 86% 11% 1% Drugstore products 93% 4% 1% Books 80% 4% 15% Optician 91% 5% Sport/Hobby/Leisure 73% 5% 6% 12% 5% Office products/Stationery 88% 4% 4% 5% Furniture/Interior/Decoration 69% 16% 5% 5% 5% Telecommunication 63% 8% 7% 20% 2% Consu
Slide 40: Retail sales in Germany
Appendix Retail sales in Germany €bn 500 44.0 48.8 450 39.8 31.3 34.7 37.1 23.9 26.3 400 21.8 350 300 250 421.0 431.7 439.0 443.8 200 397.1 403.3 411.6 414.1 416.2 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017e Stationary trade Internet Company Presentation May 2018 Source: German Retail
Slide 41: 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 42: 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