Slide 1: Company Presentation – Preliminary figures 2017
Company Presentation Preliminary figures 2017 Dr. Rüdiger Mrotzek Hans Richard Schmitz February 2017
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 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)
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 34 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 30 Dec 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 12.16 02.17 03.17 04.17 05.17 06.17 07.17 08.17 10.17 11.1
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 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, ▪ 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 February 2018) Diversification of asset types (as of February 2018) ▪ 77 properties in 60 cities in Germany ▪ Focus on West and South-West Schleswig- Holstein Mecklenburg- ▪ € 1.406 billion portfolio
Slide 11: Regional diversification
Portfolio-Management Regional diversification Federal State Number of properties Share in market value of total portfolio (as of February 2018) Northrhine-Westphalia 28 28% Bavaria 11 18% Baden-Wurttemberg 10 17% Hessen 8 10% Berlin 3 8% Lower Saxony 6 6% North NorthRhine- Rhine- Westphalia Westphal
Slide 12: Portfolio Development
Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 1,406 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 Feb 2018 Company Presentation - Preliminar
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) February 2018 (Number of properties = 77) 18.4 18.3 > € 10 million 16.2 € 5-10 million 4% 15% 13.0 10.5 81%
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 7.8 years(1) 7.8 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) 9.6 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 11.4 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 10.3 years(1) 8.5 years(1) Gross initial
Slide 19: Investments 2018
Portfolio-Management Investments 2018 Bonn Basketsring Built 2008 Main tenants EDEKA Leased area 4,934 m2 Annual rental income € 0.7 million Remaining lease term 10.0 years(1) Gross initial yield 5.2 % Purchase price € 13.8 million Transfer of possession January 2018 (1) As of 31 December 2017 Compa
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 Portfolio value € 1,406 million € 1,363 million(1) Portfolio value € 1,115 million Transfer of possession 2018 Cologne (€ +20.2m)(2) Düsseldorf (€ +9.7m)(2) Bonn (€ +13.8m)(2) 31 Dec 2016 31 Dec 2017 Feb 2018 (1) After revaluation (2) C
Slide 24: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation - Preliminary figures 2017 24
Slide 25: High and stable occupancy
Asset-Management High and stable occupancy Occupancy rates 98.2% 97.7% 96.5% 97.5% 98.2% 98.1% 97.5% 97.7% 98.7% 98.6% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 → Vacancy rate as of 31 December 2017 (incl. rent guarantees): 1.4 % → Vacancy rate as of 31 December 2017 (excl. rent guarantees):
Slide 26: Long-term leases
Asset-Management Long-term leases Weighted average lease expiry by type (as of 31 December 2017, in years) 8.6 6.6 5.3 4.9 Office Highstreet large-scale retail Total Split of lease contracts expiring by year (as of 31 December 2017) 36% 12% 4% 6% 7% 9% 7% 9% 10% 2018 2019 2020 2021 2022 2023 2024 20
Slide 27: Solid tenants
Asset-Management Solid tenants Top 10 tenants (as of 31 December 2017, % of annual rent) Tenant Sector % of annual rent* EDEKA-Group Food retail 9.9 % Kaufland Group Food retail 7.2 % Real,- Food retail 5.9 % OBI Retail (DIY) 5.4 % REWE Food retail 3.7 % Jobcenter Agency of unemployment 3.5 % H&M Te
Slide 28: Agenda
Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation - Preliminary figures 2017 28
Slide 29: Successful financial fiscal year 2017
Financial Figures / Financial Position Successful financial fiscal year 2017 Highlights ▪ Increase in income from rents and leases: + 19.8% ▪ FFO increase: + 24.0% ▪ FFO per share: € 0.56 ▪ Vacancy rate: 1.4 % (incl. rent guarantees) ▪ Total invested volume: € 214.5 million (7 assets) ▪ Total portfo
Slide 30: Preliminary key figures for 2017
Financial Figures / Financial Position Preliminary key figures for 2017 Key figures 31 Dec 2017 31 Dec 2016 Change Rental revenues € 74.1 million € 61.8 million +19.8% Operating result € 29.4 million € 27.7 million +6.2% EBIT € 32.5 million € 31.7 million +2.5% Profit for the period € 17.7 million €
Slide 31: Benefitting from economies of scale
Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1400 1,363 25% 1200 2006 1,115 20% 22.2 % 1000 900 15% 800 692 717 580 600 504 10% 376 400 281 308 2017 273 7.7 % 5% 186 200 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2
Slide 32: Stable and predictable cost of debt
Financial Figures / Financial Position Stable and predictable cost of debt Expiration of fixed interest rates (31 Dec 2017; % of total financial debt) ▪ Financial debt: € 595.6 million ▪ Liquid funds: € 58.1 million 26% ▪ REIT equity ratio: 59.0 % Refinancing/ ▪ LTV: 39.6 % Repayment ▪ Average matur
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 Summary 2017 ▪ Successful fiscal year 2017 with positive development of operational business ▪ Vacancy rate: 1.4% (incl. rent guarantees) ▪ Acquisition of seven assets in Cologne, Hallstadt, Berlin, Ratingen, Hanau, Kiel and Passau ▪ Disposal of two assets in Duisburg and Minden
Slide 35: 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 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/Bamberg Hanau Celle Karlsruhe Ratingen Market Oberfranken Rondo Steinheim Asset type Retail Retail Retail/Office Retail Office Year of acquisition 2017 2015 2012 2017 2017 Purchase price € 41.4 million € 35.2 million € 37.0 million € 37.5 million € 34.4 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* Karlsruhe* Mecklenburg- Western-Pomerania Aschaffenburg Kempten Hamburg Augsburg* Koblenz* Oldenburg Bad Homburg* Cologne* Berl
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 - Preliminary figures 2017 Sou
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