Hamborner Reit Ag · XETR:HABA
Hamborner Reit — Investor Presentation (November 2017)
41 slides from Hamborner Reit's investor presentation, November 2017
Slide 1: Company Presentation
Company Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz November 2017
Slide 2: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position HAMBORNER REIT AG - Company Presentation - November 2017 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) 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
History / Capital markets track record Lean corporate structure – no holding/parent companies HAMBORNER REIT AG 2 35 board members employees ▪ Directly owned property ▪ Internal management ▪ German-wide portfolio ▪ Only infrastructural building services externally ▪ Market value of properties: € 1.3
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 721 725 ▪ 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 November 2016 = 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 11.16 12.16 01.17 02.17 03.17 04.17 05.17 06.17 08.17
Slide 8: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position HAMBORNER REIT AG - Company Presentation - November 2017 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 also on towns and cities outside th
Slide 10: Balanced portfolio with 100% German focus
Portfolio-Management Balanced portfolio with 100% German focus Geographical portfolio spread (as of Nov 2017) Diversification of asset types (as of Nov 2017) ▪ 73 properties in 57 cities in Germany Schleswig- ▪ Focus on West and South-West Holstein Mecklenburg- Western Pomerania ▪ € 1.305 billion po
Slide 11: Regional diversification
Portfolio-Management Regional diversification Federal State Number of properties Share in the market value of total portfolio (as of Nov 2017) Northrhine-Westphalia 25 25% Baden-Wurttemberg 10 18% Bavaria 10 17% Hessen 8 11% Berlin 3 9% Lower Saxony 6 6% North NorthRhine- Rhine- Westphalia Westphali
Slide 12: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 1,305 1,115 Change of strategy 900 692 717 580 504 376 308 281 273 179 177 186 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Nov 2017 HAMBORNER REIT AG - Company Presentation - N
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) November 2017 (Number of properties = 73) 17.9 > € 10 16.2 million € 5-10 million 4% 15% 13.0 10.5 <€5 9.6
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 8.0 years(1) 8.1 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 15.0 years(1) 9.9 yea
Slide 17: Investments 2017 - transfer of possession outstanding
Portfolio-Management Investments 2017 Transfer of possession outstanding Passau (Neustiftcenter) Steinbachstrasse/Alte Poststrasse Built 2017 (under construction) Main tenants REWE Leased area approx. 4,300 m2 Annual rental income € 0.9 million Remaining lease term 11.5 years(1) Gross initial yield
Slide 18: Investments - purchase contract signed
Portfolio-Management Investments Purchase contract signed Düsseldorf Köln Harffstraße Unter Linden Built 1980 (Modernized 2011) 2009 Main tenants EDEKA EDEKA, ALDI, dm, Sparkasse Leased area 5,350 m2 6,500 m2 Annual rental income 0.6 million € 1.1 million Remaining lease term 10.3 years(1) 8.5 years
Slide 19: Investments - purchase contract signed
Portfolio-Management Investments Purchase contract signed Bonn Basketsring Built 2008 Main tenants EDEKA Leased area 4,900 m2 Annual rental income € 0.7 million Remaining lease term 10.0 years(1) Gross initial yield 5.4 % Purchase price € 13.9 million Transfer of possession Q1 2018e (1) As of date o
Slide 20: Divestments 2017
Portfolio-Management Divestments 2017 Divestments H1 2017 Recent Divestment 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 mi
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 Portfolio value € 1,364 million Portfolio value Portfolio value € 1,319 million(4) € 1,305 million Portfolio value € 1,115 million Transfer of possession Transfer of possession Transfer of possession Januar-November 2017 Q4 2017 2018 Cologne (€ +50.3m)
Slide 23: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position HAMBORNER REIT AG - Company Presentation - November 2017 23
Slide 24: High and stable occupancy
Asset-Management High and stable occupancy Occupancy rates 95.7% 98.2% 97.9% 96.5% 97.5% 98.2% 98.1% 97.5% 97.7% 98.1% 98.7% 98.5% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 30 Sep 2017 → Vacancy rate as of 30 September 2017 incl. rent guarantees: 1.5 % → Vacancy rate as of 30 September
Slide 25: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (as of 30 September 2017, in years) 8.6 6.5 5.1 4.7 Office Highstreet large-scale retail Total Split of lease contracts expiring by year (as of 30 September 2017) 36% 0% 8% 8% 12% 9% 9% 10% 7% 2017 2018 2019 2020 2021 2022 2023
Slide 26: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 30 September 2017, % of annual rent) Anteil an annualisierten Tenant Sector Mieterträgen* EDEKA-Group Discount food retail 10,2 % Kaufland Group Discount food retail 7,4 % Real,- Discount food retail 5,9 % OBI Retail (DIY) 5,6 % Jobcenter Agency o
Slide 27: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position HAMBORNER REIT AG - Company Presentation - November 2017 27
Slide 28: Strong first nine month 2017
Financial Figures / Financial Position Strong first nine month 2017 Highlights ▪ Increase in income from rents and leases: + 20.5% ▪ FFO increase: + 27.6% ▪ Vacancy rate: 1.5 % (incl. rent guarantees) ▪ Total invested volume: € 180.6 million (5 assets) ▪ Total portfolio volume: € 1.3 billion ▪ NAV p
Slide 29: Significant key figures for nine month 2017
Financial Figures / Financial Position Significant key figures for nine month 2017 Key figures Q1-Q3 2017 Q1-Q3 2016 Change Income from rents and leases € 54.6 million € 45.3 million +20.5% Operating result € 23.6 million € 20.6 million +14.4% Profit for the period € 15.7 million € 14.1 million +11.
Slide 30: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1400 1,282 1200 1,115 2006 20% 22.2 % 1000 900 800 717 692 580 600 504 10% 376 400 281 308 273 Q3 2017 186 7.4 % 200 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 31: Stable and predictable cost of debt
Financial Figures / Financial Position Stable and predictable cost of debt Expiration of fixed interest rates (30 Sep 2017; % of total financial debt) ▪ Financial debt: € 552.4 million ▪ Liquid funds: € 41.5 million ▪ REIT equity ratio: 58.7 % 24% Refinancing/ ▪ LTV: 40.0 % Repayment ▪ Average matur
Slide 32: 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 Capital Increase 2 Capital Increases 79.7 Capital 62.0 36.1 Increase 50.0 Capital 45.5 45.5 45.5 29.2 Increase 23.8
Slide 33: Summary and outlook
Summary and outlook Conclusion/Summary ▪ Successful first nine month 2017 with positive development of operational business ▪ Vacancy rate: 1.5% (incl. rent guarantees) ▪ Transfer of possession of five assets in Cologne, Hallstadt/Bamberg, Berlin, Ratingen and Hanau ▪ Transfer of possession of an of
Slide 34: Many thanks for your attention!
Financial Calendar HAMBORNER REIT AG - Financial Calendar Preliminary figures 2017 8 February 2018 Annual Report 2017 21 March 2018 Interim Report for 1st quarter 2018 25 April 2018 AGM 2018 26 April 2018 Dividend payment 2 May 2018 Interim report for first half 2018 9 August 2018 Interim Report for
Slide 35: TOP 10 Properties (1/2)
Appendix TOP 10 Properties (1/2) Mannheim Lübeck Munich Cologne Berlin Kurpfalz Center Haerder-Center NuOffice O3 EUREF-Campus Asset type Retail High Street Office Office Office Year of acquisition 2016 2016 2013 2017 2013 Purchase price € 80.0 million €49.1 million € 40.1 million € 48.9 million € 3
Slide 36: TOP 10 Properties (2/2)
Appendix TOP 10 Properties (2/2) Hallstadt/Bamberg Hanau Karlsruhe Celle Ratingen Market Oberfranken Rondo Steinheim Asset type Retail Retail/Office Retail Retail Office Year of acquisition 2017 2012 2015 2017 2017 Purchase price € 41.5 million € 37.0 million € 35.2 million € 37.5 million € 34.4 mil
Slide 37: 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* Karlsruhe* Mecklenburg- Western-Pomerania Aschaffenburg Kempten Hamburg Augsburg* Koblenz* Oldenburg Bad Homburg* Cologne* Berl
Slide 38: 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 39: 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 HAMBORNER REIT AG - Company Presentation - November
Slide 40: 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 HAMBORNER REIT AG -
Slide 41: 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
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