Hamborner Reit Ag · XETR:HABA

Hamborner Reit — Investor Presentation (August 2016)

35 slides from Hamborner Reit's investor presentation, August 2016

1. Slide 1: Company Presentation

   Company Presentation Dr. Rüdiger Mrotzek Hans Richard Schmitz August 2016

2. Slide 2: Agenda

   Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation August 2016 2

3. 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

4. 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

5. 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 of REIT  German-wide portfolio  Only infrastructural building services externally  Market value of propertie

6. 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 596 603  2010: Achievement of G-REIT status and change of company name to HAMBORNER REIT AG 369  October 2010: Successful Cap

7. Slide 7: HAMBORNER REIT AG share

   History / Capital markets track record HAMBORNER REIT AG share Development of share price and turnover 3.000 11,00 € 10,00 € 2.000 9,00 € 1.000 8,00 € 0 7,00 € Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 15 15 15 15 15 16 16 16 16 16 16 16 Turnover in thousands HAMBORNER share price Average turn

8. Slide 8: Agenda

   Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation August 2016 8

9. 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

10. Slide 10: Balanced portfolio with 100% German focus

    Portfolio-Management Balanced portfolio with 100% German focus (as at 30 June 2016) Geographical portfolio spread (incl. recent acquisitions) Diversification of asset types  68 properties in 56 cities in Germany  Focus on West and South-West Schleswig- Holstein  € 959 million portfolio value Meck

11. Slide 11: Regional diversification

    Portfolio-Management Regional diversification (as at 30 June 2016) Federal State Number of objects Share in the market value of total portfolio North Rhine-Westphalia 23 24% Bavaria 9 21% Baden-Wurttemberg 9 15% Hesse 8 10% Lower Saxony 6 8% Berlin 2 7% North NorthRhine- Rhine- Westphalia Westphalia

12. Slide 12: Portfolio Development

    Portfolio-Management Portfolio Development Development of the HAMBORNER portfolio value (in € million) 959 900 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 H1 2016 Company Presentation August 2016 12

13. 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) 31/12/2006 (100% = 54 properties) 30/06/2016 (Number of properties = 68) > € 10 million 14.1 € 5-10 million 13.0 4% 15% 10.5 9.6 8.4 81% 7.3 <€5 6.

14. Slide 14: Investments 2016

    Portfolio-Management Investments 2016 Lübeck (Haerder-Center) Ditzingen Sandstraße Dieselstraße Built 2008 2016 Main tenant H&M, New Yorker, REWE, mytoys hagebaumarkt Leased area approx. 13,300 m2 approx. 10,000 m2 Annual rental income € 3.3 million € 0.9 - € 1.0 million (steprent) Remaining term 3.

15. Slide 15: Purchase contracts signed in H1 2016

    Portfolio-Management Purchase contracts signed in H1 2016 Kiel Münster (Deilmann-Park) Kaistrasse Martin-Luther-King-Weg 30/30a Built under construction 2016 Main tenant Barmer GEK FOM University Leased area approx. 6,550 m2 approx. 3,300 m2 Annual rental income € 1.16 million € 0.43 million Remaini

16. Slide 16: Purchase contract signed in H2 2016

    Portfolio-Management Purchase contract signed in H2 2016 Mannheim (Kurpfalz Center) Spreewaldallee 1972 Built modernized and expanded in 2012/2013 Main tenant Real, Toys‘R‘Us, ALDI, dm, Adler Mode, Golf House Leased area approx. 28,000 m2 Annual rental income € 4.1 million Remaining term approx. 8 y

17. Slide 17: Divestments 2016

    Portfolio-Management Divestments 2016 Duisburg Dinslaken Solingen Essen Price: € 2.64 million Price: € 1.94 million Price: € 3.17 million Selling price: € 3.26 million Transfer of poss. 28/01/2016 Transfer of poss. 28/01/2016 Transfer of poss. 28/01/2016 Transfer of poss. 02/08/2016 Total # of prope

18. Slide 18: Divestments since change of strategy in 2007

    Portfolio-Management Divestments since change of strategy in 2007 € 68.8m € 67.1m +2.5% +54.0% € 44.6m Disposal of 25 commercial properties: € 66.9m → Average selling price: € 2.8m → Average multiple: 15.3 → Total annual rental income: € 4.8m Book Value Fair Value Selling Price at time of disposal a

19. Slide 19: Agenda

    Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures / Financial Position Company Presentation August 2016 19

20. Slide 20: 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% 98.6% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016 → Vacancy rate as at 30/06/2016 incl. rent guarantees: 1.4 % Company Presentation August 2016

21. Slide 21: Long-term leases

    Asset-Management Long-term leases Weighted average lease expiry by type (30/06/2016, in years) 9.6 6.8 4.7 5.1 Office Highstreet Large-scale Total retailing Split of lease contracts expiring by year (30/06/2016) 37% 14% 12% 4% 2% 8% 8% 9% 6% 2016 2017 2018 2019 2020 2021 2022 2023 2024 and later Com

22. Slide 22: Solid tenants

    Asset-Management Solid tenants Top 10 tenants (30/06/2016, % of annual rent) Tenant Sector % of annual rent* EDEKA-Group Discount food retail 12.6% Kaufland Group Discount food retail 7.9% OBI Retail (DIY) 7.0% real,- Discount food retail 5.1% Jobcenter Government Agency 4.4% H&M Textile retail 2.7%

23. Slide 23: Agenda

    Agenda 1 History / Capital markets track record 2 Portfolio-Management 3 Asset-Management 4 Financial Figures/Financial Position Company Presentation August 2016 23

24. Slide 24: Strong first half year 2016

    Financial Figures / Financial Position Strong first half year 2016 Highlights  Positive operational business development  Increase of income from rents and leases: + 20.9%  FFO increase: + 23.9%  Vacancy rate: 1.4% (1.7% excl. rent guarantees)  Total portfolio volume: approx. € 959 million  NA

25. Slide 25: Significant key figures for first half year 2016

    Financial Figures / Financial Position Significant key figures for first half year 2016 Key figures H1 2016 H1 2015 Change Rental revenues € 29.9 million € 24.7 million + 20.9 % Operating result € 13.3 million € 11.6 million + 14.9 % Profit for the period € 8.8 million € 5.0 million + 75.3 % Funds f

26. Slide 26: Portfolio development 2016/2017

    Financial Figures / Financial Position Portfolio development 2016/2017 Portfolio value Portfolio value € 1,069 million € 1,048 million Portfolio value € 959 million Portfolio value € 900 million transfer of possession transfer of possession Transfer of possession H1 2016 H2 2016 2017 Lübeck (€ +52,5

27. Slide 27: Benefitting from economies of scale

    Financial Figures / Financial Position Benefitting from economies of scale Portfolio value (€ million) and overhead cost margin* 1200 30% 2006 22.2 % 959 1000 900 800 20% 692 717 580 600 504 400 376 10% 308 281 273 186 H1 2016 200 8.7 % 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016

28. Slide 28: Stable and predictable cost of debt

    Financial Figures / Financial Position Stable and predictable cost of debt Expiration of fixed interest rates (30/06/2016; % of total financial debt)  Financial debt: € 417.9 million Follow-up financing 2017  Liquid funds: € 28.6 million completed  LTV: 40.5 %  REIT equity ratio: 56.9 % 25%  Av

29. 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% 3.20% 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 30 Jun 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Company Presentation August 201

30. 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 (%) ----------------------------------------------- Maximum Target LTV = 50% --------------------------------------------- Figures: 43.7% 43.3% → LTV 39.1% 40.5% 34.2% 35.0% 30/06/2016: 40.5% 28.1% 2

31. 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 €) 2x Capital Increases Capital 62.0 Increase 50.0 Capital 45.5 45.5 45.5 Increase 29.2 34.1 34.1 24.6 # shares in million 23.8 22.7 22.7 18.9 16.0 FFO absolute (€m) 12.2 8.5 9.7 0.

32. Slide 32: Conclusion and outlook

    Conclusion and outlook 1. Conclusion first half year 2016  Successful first half 2016  Positive development of operational business  Transfer of possession of Haerder-Centre Lübeck and DIY store in Ditzingen  Disposal of assets in Duisburg, Dinslaken and Solingen  Purchase contract signed for p

33. Slide 33: Many thanks for your attention!

    Financial Calendar HAMBORNER REIT AG Interim Report for 1st half 2016 10 August 2016 Interim Report for 3rd quarter 2016 10 November 2016 Annual report 2016 28 March 2017 Interim Report for 1st quarter 2017 09 May 2017 AGM 2017 10 May 2017 Many thanks for your attention! Company Presentation August

34. Slide 34: 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

35. Slide 35: 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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