Slide 1: Company presentation: Preliminary figures 2019
Company presentation Preliminary figures 2019 Dr. Rüdiger Mrotzek Hans Richard Schmitz February 2020
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 2019 | February 2020 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 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
Slide 5: Lean corporate structure – no holding/parent companies
History / Capital markets track record Lean corporate structure – no holding/parent companies HAMBORNER REIT AG 1 40 Board member Employees ▪ Directly owned property ▪ Internal asset & property management ▪ German-wide portfolio ▪ Only infrastructural building services and center ▪ Market value of p
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) 789 806 ▪ 2007: Start of new strategy 721 ▪ 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 2019 = 100% Number of Number ofshares shares 125% 600.000 120% 500.000 115% 400.000 110% 105% 300.000 100% 200.000 95% 100.000 90% 85% 0 01.19 03.19 04.19 05.19 06.19 07.19 08.1
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 2019 | February 2020 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 on cities with positive demogr
Slide 10: Acquisition strategy | Top 50 Cities in Germany
Portfolio-Management Acquisition strategy | TOP 50 Cities in Germany High attractiveness in terms of ▪ Demographic development ▪ Centrality Schleswig- Holstein ▪ Purchase power ▪ Future opportunities Mecklenburg- Western-Pomerania Aachen* Ingolstadt* Hamburg Aschaffenburg Karlsruhe* Oldenburg Augsbu
Slide 11: Balanced portfolio with 100% German focus
Portfolio-Management Balanced portfolio with 100% German focus Geographical portfolio spread Diversification of asset types ▪ 80 properties in 60 cities in Germany ▪ Focus on West, South and South-West Schleswig- Holstein ▪ € 1.614 billion portfolio value Mecklenburg- Western Pomerania Bremen Berlin
Slide 12: Regional diversification
Portfolio-Management Regional diversification Federal State Number of properties Share in market value of total portfolio Northrhine-Westphalia 27 26% Bavaria 11 19% Baden-Wurttemberg 10 15% Hessen 10 13% Berlin 4 10% Lower Saxony 6 5% North NorthRhine- Rhine- Westphalia Westphalia Schleswig-Holstei
Slide 13: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 1,614 1,546 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 2019 Feb 2020 Company pre
Slide 14: Portfolio structure
Portfolio-Management Portfolio structure Portfolio split by property value Average value per asset (in € million) 31 December 2006 February 2020 (Number of properties = 80) 20.2 > € 10m 19.5 19.6 18.4 € 5-10m 4% 15% 16.2 100% = 54 properties 13.0 81% 10.5 < € 5m 9.6 8.4 February 2020 7.3 < €5m 6.1 1
Slide 15: Investments 2019
Portfolio-Management Investments 2019 Bamberg Lengerich Starkenfeldstrasse Alwin-Klein-Strasse Asset type Local supply/Large-scale retail & office Local supply/Large-scale retail Built 2013 2019 Main tenants EDEKA, Perbility, Bosch BKK, IG Metall EDEKA, Deichmann, Takko Leased area 6,160 m2 4,600 m2
Slide 16: Divestment 2019
Portfolio-Management Divestment 2019 Leverkusen Asset type: Local supply/High street retail Selling price: € 1.6 million Fair value as of 31 December 2018: € 1.4 million Contribution to earnings: € 0.1 million Transfer of possession: 3 September 2019 Company presentation | Preliminary Figures 2019 |
Slide 17: Portfolio development 2019
Portfolio-Management Portfolio development 2019 Acquisitions 2019 Sales 2019 Like-for-like portfolio Portfolio value € 1,598.1m Portfolio value € 1,517.3m Purchase prices Revaluation Sales Capex Revaluation + € 29.2m + € 0.9m - € 1.4m + € 3.2m + € 48.9m 31 Dec 2018 31 Dec 2019 Company presentation |
Slide 18: Investments 2019: Transfer of possession 2020
Portfolio-Management Investments 2019 Transfer of possession 2020 Neu-Isenburg Siemensstrasse Asset type Office Built 2019 (under construction) Main tenants UBL, … Leased area 4,500 m2 Annual rental income € 0.9 million Remaining lease term approx. 8 years(1) Gross initial yield 5.4 % Purchase price
Slide 19: Investments 2019: Transfer of possession 2020
Portfolio-Management Investments 2019 Transfer of possession 2020 Bonn Aachen Krähenhorst/Soenneckenstrasse Gut-Dämme-Strasse/Grüner Weg Asset type Office Office Built 2019 (under construction) 2019 (under construction) Main tenants Barmer, … Barmer, … Leased area 6,200 m2 8,200 m2 Annual rental inc
Slide 20: Divestments since change of strategy in 2007
Portfolio-Management Divestments since change of strategy in 2007 € 96.2m € 93.9m + 2.4% + 41,1% € 68.2m Disposal of 30 commercial properties: € 94.3m → Average selling price: € 3.1m → Average multiple: 13.2 → Total annual rental income: € 7.1m Book Value Fair Value Selling Price at time of disposal
Slide 21: Portfolio development 2019/2020
Portfolio-Management Portfolio development 2019/2020 Portfolio value € 1,665.3 million Portfolio value Portfolio value € 1,598.1 million(3) € 1,641.2 million Portfolio value € 1,517.3 millon Bamberg (+ €15.9m)(1) Aachen (+ €28.3m)(4) Lengerich (+ €14.2m)(1) Neu-Isenburg (+ €16.1m)(4) Bonn (+ €22.8m)
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 2019 | February 2020 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% 98.1% 98.7% 98.6% 98.7% 98.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 → Vacancy rate as of 31 December 2019 (incl. rent guarantees): 2.0 % → Vacancy rate as of 31 December 2019 (e
Slide 24: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (in years; 31 December 2019) Local supply 7.7 8.7 5.8 6.6 4.5 3.8 Office Large-scale High street Other Total retail retail retail portfolio Split of lease contracts expiring by year (% of annual rents; as of 31 December 2019) 27
Slide 25: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 31 December 2019) Tenant Sector % annual rents* EDEKA Group Food retail 12.0% Kaufland Group Food retail 5.9% REWE Group Food retail 5.5% real,- Food retail 5.4% OBI DIY retail 5.0% Jobcenter Agency of unemployment 3.3% NetCologne Telecommunicatio
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 2019 | February 2020 26
Slide 27: Significant preliminary key figures 2019
Financial Figures / Financial Position Significant preliminary key figures 2019 2019 2018 Change Income from rents and leases € 85.2 million € 62,5 million +2.1% Operating result € 33.3 million € 26,6 million +1.5% Profit for the period € 17.9 million € 15,1 million -7.8% thereof result from sales €
Slide 28: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 30% 2006 22.2% 1,598 1,517 1500 25% 1,363 1,115 20% 1000 900 15% 692 717 580 504 10% 500 376 281 273 308 5% 186 2019 7.5% 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 29: Financial liabilities
Financial Figures / Financial Position Financial liabilities Expiration of financial liabilities (as of 31 December 2019) Refinancing/ Repayment Bonded loans Ø interest rate: 1.5% 57.3 % concluded Ø maturity: 3.6 years REIT Equity ratio 42.4 % LTV €759.9m 1.6% Financial liabilities* 21.8% 8.2% 13.5%
Slide 30: 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 79.7 2x CI 54,3 CI 52,7 62.0 44,7 50.0 CI 36,1 45.5 45.5 45.5 CI Capital increase CI 29,2 34.1 34.1
Slide 31: Outlook
Financial Figures / Financial Position Outlook Forecast 2020 ▪ Income from rents and leases: + 3% ▪ Expected FFO at the current record level ▪ Forecast includes outstanding transfers of offices in Aachen and Bonn, but does not take into account further acquisitions or disposals ▪ Additional acquisit
Slide 32: Many thanks for your attention! Financial Calendar
Financial Calendar HAMBORNER REIT AG - Financial Calendar Annual report 2019 26 March 2020 Quarterly financial report Q1 2020 5 May 2020 AGM 2020 6 May 2020 Dividend payment 11 May 2020 Half-year financial report H1 2020 30 July 2020 Quarterly financial report Q3 2020 11 November 2020 Many thanks fo
Slide 33: TOP 10 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 34: TOP 10 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 35: Development of key figures since change of strategy
Review Development of key figures since change of strategy 31 Dec 2008 31 Dec 2019* Rental income €19.4m €85.2m Funds from operations (FFO) €8.5m €54.3m FFO per share €0.37 €0.68 Dividend per share €0.35 €0.47 Net asset value (NAV) per share €10.57 €11.59 Number of shares 22.7m 79.7m Share price € 5
Slide 36: Consumer purchasing behaviour in Germany
Appendix Consumer purchasing behaviour in Germany Share of eCommerce in retail sales 26,1% consumer electronics 28.8% 31.0% 23.5% fashion & accessoires 23.5% 25.6% 22.7% sports & hobby 24.4% 26.4% 19.8% office & stationery 21.6% 22.6% 14.8% jewellery & watches 16.2% 18.1% 10.7% furniture & interior
Slide 37: Contact
Contact 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 | Preliminary Figures 2019 | February 2020 37
Slide 38: 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