roadshow presentation - hamborner...retailing** large-scale retailing office / other * based on rent...

Roadshow Presentation

July 2012

Highlights equity raising

2

Deal terms

→ 3:1 Rights issue with tradable subscription rights

→ Any new shares which are not subscribed to in the context of the subscription offer will be offered for

purchase at the subscription price to qualified investors

Structure

Number of shares

Use of proceeds

Listing venue

Distribution

Syndicate

→ Up to 11,373,333 new shares

→ To provide financing for the acquisition of additional properties in accordance with Hamborner’s

investment strategy as well as to strengthen Hamborner’s capital base and financial soundness

→ Acquisition pipeline of approximately € 108 million

→ Stock exchanges of Frankfurt, Berlin, Düsseldorf, Hamburg, Munich and Stuttgart

→ Public offer in Germany and private placement in jurisdictions outside the United States of America,

Canada, Australia and Japan

→ Berenberg Bank (Sole Global Coordinator and Joint Bookrunner) → Kempen & Co (Joint Bookrunner)

Subscription price → € 6.50

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia

Timeline of equity issue

3

→ Ad-hoc announcement

→ Prospectus approval 29 June 2012

2 July 2012

3 July 2012

16 July 2012

18 July 2012

20 July 2012

→ Publication subscription offer in German Federal Gazette (Bundesanzeiger)

→ Start of subscription period and start of rights trading

→ End of subscription period

→ Registration of the capital increase with the commercial register

→ Settlement of all new shares

17 July 2012 → Announcement final take-up and rump placement (if any)

12 July 2012 → End of rights trading

Timeline


Key investment highlights Creating sustainable shareholder value

Increasing portfolio quality

Robust financial position

Enhancing efficiency, increasing cash flow and dividend per share

Capital markets track record

Strong asset and portfolio management

4

Capturing German momentum


2 Increasing portfolio quality

Agenda

4 Robust financial position

5 Enhancing efficiency, increasing cash flow and dividend per share

8 Appendix

3 Strong asset and portfolio management

6 Capital markets track record

7 Outlook

5

1 Capturing German momentum


Unemployment rate (%)

Well positioned to capture positive German momentum

GDP growth rate (%)*

Yields on 5-year government bonds (%)


6

* Year-on-year change ** The Euro area comprises 17 Euro countries Source: Eurostat, Bloomberg

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

Germany

Euro area**

2013F 2012F 2011 2010 2009 2008 2007 2006

Inflation rate (%)*

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2006 2007 2008 2009 2010 2011

Germany

Euro area**

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2012 2011 2010 2009 2008 2007 2006

Spain

UK

Germany

France

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2006 2007 2008 2009 2010 2011

Germany

>25 year

Euro area**

>25 year

Germany

<25 year

Euro area**

<25 year



Agenda



8 Appendix



7 Outlook

7



Balanced portfolio with 100% German focus Geographical portfolio spread Diversification of asset types (per 30 April 2012)

→ 67 properties in 51 cities in Germany, focus on West and

South

→ Total portfolio value of € 518 million

→ 1.4 million m2 of land plots (average value € 0.91/m2)

Schleswig- Holstein

Hamburg Bremen

Saarland

Berlin

Brandenburg

Annualised rental income (100% = € 36.4 million)*


8

Lower Saxony

North Rhine- Westphalia

Hesse

Rheinland- Palatinate

Baden- Wuerttemberg

Bavaria

Mecklenburg- Western Pomerania

Saxony

Saxony- Anhalt

Thuringia

31%36%

33%

Highstreet/ retailing**

Large-scale retailing

Office / Other

* Based on rent roll April 2012 ** Predominantly retail properties, small proportion of office space and residential units The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia

Well defined acquisition strategy

Acquisition strategy Asset focus

→ Focus on quality properties, location and property strategy

determined by asset type:

→ Commercial buildings used for retail trade

(highstreet retail) in A1 sites (pedestrian zones),

nationally at locations with > 60,000 inhabitants

→ Self-service markets and self-service department

stores in town centre sites or highly frequented

edge-of-town sites, nationally at locations with >

60,000 inhabitants

→ Modern office buildings built or redeveloped from

the year 2000 onwards in town centre sites of cities

with > 100,000 inhabitants

→ Regional diversification in high growth regions in Southern

and South-West Germany

→ Focus on towns and cities outside the main metropolises

→ Focus on acquisitions of € 10 million – € 40 million

→ Improving cost/yield structures through acquisition of

larger properties and disposal of smaller properties

→ Off market deals

→ Diversified commercial real estate portfolio structure with clear yield-orientation

→ Creating value through continuous expansion of portfolio

→ Acquisition strategy and asset focus result in limited competition from other potential buyers


9 The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia

Type Useable area (m2) Expected annual rental income (€ million)

Investment (€ million)

Tübingen Retail 15,000 1.5 22

Karlsruhe Retail/Office 15,100 2.4 37

Berlin Office 12,700 2.1 32

Hamburg Retail 10,000 1.3 17

Total 52,800 7.3 108

Acquisition pipeline

Acquisition pipeline


10

→ Hamborner has made indicative purchasing offers relating to these four properties


Increasing regional diversification

Geographical portfolio spread Acquisitions in 2011*

Schleswig- Holstein

Hamburg

Lower Saxony

Bremen


Hesse

Rheinland- Palatinate

Baden- Wuerttemberg

Bavaria Saarland

Berlin

Brandenburg

Mecklenburg- Western Pomerania

Saxony

Saxony- Anhalt

Thuringia

Initial portfolio

Transferred in 2012

Transferred in 2011

Transferred in 2010

Notarised in 2011, transfer

of ownership later

→ 8 new properties comprising purchase price of € 122 million

→ Langenfeld (€ 16 million)

→ Bad Homburg (€ 14 million)

→ Offenburg (€ 8 million)

→ Freiburg (€ 11 million)

→ Agreements signed worth approx. € 55 million

→ Aachen (transfer of possession in April 2012)

→ Munich (expected transfer of possession in 2013)

13%

11%

50%

16%

10%

Baden- Wurttemberg

Bavaria North Rhine- Westphalia

Hesse

Saxony

→ Leipzig (€ 12 million)

→ Brunnthal (€ 12 million)

→ Erlangen (€ 28 million)

→ Regensburg (€ 21 million)

Acquisitions split by region*

34%40%

26%

2011 (100% = € 122 million) 2010 (100% = € 64 million)

Bavaria

Baden-Wurttemberg



11 * Purchase prices excluding acquisition costs


Improving margin through acquiring larger portfolios

Portfolio split by property value Average value per assets 2006-2011 (€ million)

27%

14%23%

36%

27%55%

6%12%

2006 (100% = € 186 million)

2011 (100% = € 504 million)

< € 3 million

€ 3-5 million

€ 5-10 million

> € 10 million

< € 3 million

€ 3-5 million

€ 5-10 million

> € 10 million

3.5

4.85.1

5.4

6.1

7.3

0

1

2

3

4

5

6

7

8

2006 2007 2008 2009 2010 2011

+108.7%




Agenda



8 Appendix



7 Outlook

13



High and stable occupancy

Occupancy rates

95.7% 98.2% 97.9% 96.5% 97.5% 98.2%

2006 2007 2008 2009 2010 2011



Long-term leases with strong tenants

Split of lease contract expiry by year (30 April 2012) Top 10 tenants (30 April 2012, % of annual rent*)

Tenant

Kaufland Group

EDEKA

OBI

AREVA

SFC Energy

Telefonica O2

REWE

BfA

dm

Kaspersky

Total

12.8%

10.2%

7.7%

2.7%

2.5%

2.2%

2.2%

2.1%

2.0%

2.0%

46.4%

Weighted average lease expiry by type (30 April 2012, in years)

4.35.8

10.4

7.1

Office/

commercial

Highstreet/

retailing

Large scale/

retailing

Total

Sector

Discount food retail

Discount food retail

Retail (DIY)

Power & Utilities

Industrials/Energy

Telecommunication

Food retail

Government

Retail/Trade

Computer Software

Total


15

* Including rent guarantees

11% 6% 10%

70%

1%2%

2012 2013 2014 2015 2016 andlater

unlimited


Benefitting from economies of scale

Portfolio value (€ million) and overhead cost margin* Room for growth

→ Internal management

→ Efficient organisation

→ Internal management

→ 2 board members

→ 23 employees**

→ Outsourcing of infrastructural

building services only

→ Room to substantially grow the portfolio

with limited marginal costs

186

281

273 308

376

504

0%

10%

20%

30%

40%

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011

Portfolio value Overhead cost margin


16

* Personnel and administrative costs divided by income from rents and leases. Personnel costs are adjusted downward for one-off costs ** Per 30 April 2012 Source: Company



Agenda



8 Appendix



7 Outlook

17



Stable and predictable cost of debt

Expiration of fixed interest rates (per 31 March 2012, as % of total financial debt)

0% 0% 0% 0%2%

17% 17%

2%

28%

23%

11%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Expiration of fixed interest rates (as % of total financial debt)

Average of expiring fixed interest rates

→ Financial debt: € 218.5 million

→ Liquid funds: € 30.2 million

→ Average maturity of fixed interest

rates: 7.9 years

→ Average cost of debt: 4.46%

→ 100% of the debt is fixed/hedged

→ Banks:

→ Saving banks

→ Local banks

→ Cooperative banks

→ Other commercial banks



Low LTV, equity ratio well within REIT criteria

0.0%

28.1%

12.0%

22.9%19.3%

39.1%

0%

10%

20%

30%

40%

50%

60%

2006 2007 2008 2009 2010 2011

LTV Maximum target LTV (approx.)

Loan-to-value (%)*

→ Ratios per 31 March

2012:

→ LTV: 37.6 %

→ REIT-equity ratio:

56.8%


19

* Cash exceeds debt in 2006


Lower marginal funding costs

→ Munich (January 2012)

→ € 20.0 million for 10 years at 3.53%

fixed rate

→ Aachen (September 2011)

→ € 8.8 million for 10 years at 3.95%

fixed rate

4.77%

5.12%5.01%

4.56%4.48% 4.46%

2007 2008 2009 2010 2011 Q1 2012

Average cost of debt Examples of recent debt financing




Agenda



8 Appendix



7 Outlook

21



3.1 3.8 3.5 3.4 3.82.8

2006 2007 2008 2009 2010 2011

Development of rental income, overhead costs, and margin (€ million)

Increasing efficiency resulting in higher margins

Income from rents and leases Margin Overhead costs** Operating costs* – – =

+155%

7.9

13.716.4

18.7

24.5

8.0

2006 2007 2008 2009 2010 2011

+112% +34% +208%


13.2

19.722.5

25.0

32.2

12.6

2006 2007 2008 2009 2010 2011

2.2 2.3 2.5 2.9 3.91.8

2006 2007 2008 2009 2010 2011

22

* Operating costs include income from passing on incidental costs to tenants, current operating expenses and land and building maintenance ** Overhead costs include personnel and administrative costs . Personnel costs are adjusted downward for one-off costs Source: Company The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia

0.15 0.17 0.17 0.2 0.2 0.2 0.22 0.22 0.24 0.24 0.27 0.27 0.27 0.3 0.3 0.3 0.3 0.35 0.03 0.02 0.03 0.03 0.03

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Dividend per share (€)

→ Hamborner allocates a dividend of € 0.40 for FY 2011

Increasing Funds From Operations and dividend per share

Funds From Operations (FFO) per share (€)

Dividend

Bonus

0.370.42

0.36

0.47

'08 '09 '10 '11

0.35

0.37 0.37

0.40

'08 '09 '10 '11


23

22.77 22.77 34.12 34.12 Number of shares (million)

FFO

per

sh

are

(€

)



Agenda



8 Appendix



7 Outlook

24



Historic market cap (€ million)

Growing market capitalization and increasing free float…

Overview events

→ 2007: Start of new strategy

→ 2010: Achievement of G-REIT status and change of

company name to HAMBORNER REIT AG

→ October 2010: Successful Capital Increase 2010: net

proceeds of approx. € 76 million

→ February 2011: Secondary placement of approx.

€ 89 million HSH stake

→ March 2011: SDAX index inclusion

→ March 2012: EPRA index inclusion

Shareholder structure**

5%3%

77%

6%

9%

Asset Value Investors Free float

Ruffer

Prof. Dr. Siegert

Allianz Global Investors


25

* Up to and including June 2012 ** Company information

131

185

265

218 235

20%

40%

60%

80%

100%

0

50

100

150

200

250

300

2008 2009 2010 2011 2012 YTD*

Market cap Free float**


2008 2009 2010 2011 201220

30

40

50

60

70

80

90

100

110

120

0

50

100

150

200

250

300

350

400

1.200Indexed Price Performance Volume (Thousands)

Hamborner REIT AG FTSE EPRA/NAREIT Germany

SDAX Hamborner volume

… resulting in increased liquidity

→ YTD share price performance*:

→ Hamborner: 8.4%

→ FTSE EPRA Europe: 8.9%

→ SDAX: 8.7%


26

Inclusion in EPRA-Index

Average turnover per day since 2009 (# shares) Total return since 2008

Remarks

* Up to and including June 2012 Source: Bloomberg

12,392

38,101

52,823

3,637

2009 2010 2011 2012 YTD*



Agenda



8 Appendix



7 Outlook

27



Summary & Outlook

FY 2011 & Q1 2012:

Positive operational business development

Rents and FFO increased, low vacancy

Profitable investments of funds from the capital increase in 2010

Allocation of dividend of € 0.40 for FY 2011

Inclusion in EPRA-Index since March 2012

Business year 2012:

The Managing Board is striving for a 10% increase in rental income from 2011 to 2012

The Managing Board intends to increase the FFO by 5% to 10% from 2011 to 2012

Outlook


Key investment highlights Creating sustainable shareholder value






29




Agenda



8 Appendix



7 Outlook

30



in € thousand 2010 2011 Q1 2011 Q1 2012

Net rental income 22,124 28,244 6,434 8,275

Administrative expenses -811 -919 -215 -196

Personnel costs -2,564 -2,838 -656 -715

Amortisation / Depreciation -8,031 -10,523 -2,246 -2,956

Other operating income 2,534 1,769 213 201

Other operating expenses -724 -845 -244 -182

Operating result 12,528 14,888 3,286 4,427

Result from the sale of investment property 2,227 2,232 0 17

Earnings before interest and taxes (EBIT) 14,755 17,120 3,286 4,444

Financial result -6,308 -7,964 -1,554 -2,531

Net income for the period 5,669 7,865 1,732 1,913

Income statement (IFRS)

Income statement

Appendix


in € thousand FY 2010 FY 2011 Q1 2011 Q1 2012

Net rental income 22,124 28,244 6,434 8,275

- Administrative expenditure -811 -919 -215 -196

- Personnel costs - 2,564 -2,838 -656 -715

+ Other operating income 446 351 213 201

- Other operating expenses - 724 -845 -244 -182

+ Interest income 268 408 259 77

- Interest payments - 6,576 -8,372 -1,813 -2,608

FFO before taxes 12,163 16,029 3,978 4,852

FFO per share 0.36 0.47 0.12 0.14

Funds from operations

Funds from operations

12,16316,029

2010 2011

3,9874,852

Q1 2011 Q1 2012

Appendix

32

+32% +22%


in € million 31 December 2010 31 December 2011 31 March 2012

ASSETS

Non-current assets 322.1 435.6 435.8

Investment Properties 321.5 435.2 435.3

Other 0.6 0.4 0.5

Current assets 84.0 26.9 31.2

Trade receivables and other assets 0.4 2.7 1.0

Bank deposits and cash balances 83.6 18.7 30.2

Non current assets held for sale 0 5.5 0

Total assets 406.1 462.5 467.0

EQUITY & LIABILITIES

Equity 223.5 215.1 216.6

Financial liabilities and derivative financial instruments 164.1 228.9 232.4

Other liabilities and provisions 18.5 18.5 18.0

Total equity capital, liabilities and provisions 406.1 462.5 467.0

Balance sheet (IFRS)

Equity ratio 46.4%

Balance sheet

Appendix


Net asset value (NAV)

in € million FY 2010 FY 2011 Q1 2012

Balance sheet long-term assets 322 436 436

+ Balance sheet short-term assets 84 26 31

- Non-current liabilities and provisions -151 -220 -223

- Current liabilities -23 -14 -14

Balance sheet NAV - 232 228 230

+ Hidden reserves long-term assets 66 71 74

NAV 298 299 304

NAV per share in € 8.74 8.77 8.92

8.92 7.60

Net asset value

31 March 2012

Share price

31 March 2012

Net asset value in accordance with EPRA Discount of the XETRA-closing price to NAV of 14.8% (31 March 2012)

Appendix

34

-14.8%


City Address Asset-Class Space in m² Rent p. year

in € thousand

Purchase price

in € million

Gross initial

yield

Bad Homburg Louisenstr. 53-57 Highstreet 3,232 849 13.7 6.3%

Brunnthal Eugen-Sänger-Ring 7 Office 6,721 912 12.0 7.6%

Leipzig Brandenburger Str. 21 Retail / DIY market 11,139 890 11.6 7.6%

Regensburg Hildegard-von-Bingen-Str. 1 Office/ Medical Practices 8,998 1,437 21.0 6.8%

Freiburg Lörracher Str. 8 Large Scale Retail 3,987 860 11.4 7.5%

Erlangen Allee-am-Röthelheimpark 11-15 Office / Retail 11,600 1,916 28.1 6.9%

Langenfeld Solinger Str. 5-11 Highstreet 6,295 1,147 16.3 6.6%

Offenburg Hauptstr. 72/74 Highstreet 5,150 520 7.9 6.6%

57,122 8,531 122.0

Latest investments

Transfer of possession in 2011

City Address Delivery Asset-Class Space in m² Rent p. year

in € thousand

Purchase price

in € million

Aachen Debyestraße April 2012 Retail / DIY market 11,431 1,020 approx. 16

München Domagkstraße 10 Q1 2013E Office approx. 12,000 2,294 approx. 39

Transfer of possession expected in 2012 and 2013

Appendix


36


Brunnthal

Eugen-Sänger-Ring 7

Bad Homburg,

Louisenstr. 53-57

Leipzig,

Brandenburger Str. 21

Built 2010 1985 2009

Main Tenant SFC Energy AG Naspa, Hussel, Hof Apotheke,… OBI

Leased Area approx. 6,700 m² approx. 3,200 m² approx. 11,000 m²

Annual Rental income € 912,490 € 849,000 € 889,527

Remaining term approx. 8.3 years approx. 3.4 years approx. 12.8 years

Gross initial yield 7.6 % 6.3 % 7.6 %

Purchase price € 12 million € 13.7 million € 11.6 million


37


Regensburg

Hildegard von Bingen Str. 1

Langenfeld

Solinger Str. 5

Erlangen,

Allee am Röthelheimpark 11-15

Built 2007 2011 2010/2011

Main Tenant different medical practices H&M, Tom Tailor, Depot, dm, and other Konsum, dm, Pfrimmer and other


Annual Rental income € 1.43 million approx. € 1.14 million € 1.92 million

Remaining term approx. 6.8 years approx. 9.3 years approx. 10.4 years


Purchase price € 21.0 million € 17.1 million € 28.1 million


38


Offenburg,

Hauptstraße 72-74

Freiburg,

E-Center

Aachen,

Debyestraße 20

Built 1973, reconstruction 2008/2009 2011 2012

Main Tenant Müller Drogeriemarkt EDEKA OBI


Annual Rental income approx. € 525,000 € 860,000 approx. € 1.2 million (Ø rental income)

Remaining term approx. 6.2 years 17.8 years 15 years


Purchase price € 7.9 million € 11.4 million € 15.97 million

…in April 2012


http://www.schoofs-gruppe.de/meldung/alles-gut-be-dach-t-obi-markt-in-aachen-brand-fertiggestellt/

39

Already signed, transfer of possession expected in 2013

Munich,

NuOffice (under construction)

Built 2011/2013

Main Tenant n/a

Leased Area n/a

Annual Rental income approx. € 2.3 (expected)

Remaining term 8.8 years (expected)

Gross initial yield 5.9 % (expected)

Purchase price € 39.3 million (expected)


Disposals

Krefeld, Krützpoort 1

Erfurt, Marktstr. 2 Erfurt, Neuwerkstr.

Erfurt, Marktstr. 7-9

Price € 900,000

Price € 5.6 million

Price € 2.6 million Plot approx. 1.0 million sqm Book value € 0.8 million Book profit € 1.8 million Rest approx. 1.4 million sqm Undeveloped land

Appendix

40

December 2011 September 2011


HAMBORNER REIT AG

Interim report for 1st half 2012 9 August 2012

Interim report for 3rd quarter 2012 8 November 2012

Annual general shareholders´ meeting 2013 7 May 2013

Financial Calendar


Dr. Rüdiger Mrotzek – Member of the Board

T +49 (0)203 / 54405-55

M [email protected]

Hans Richard Schmitz – Member of the Board

T +49 (0)203 / 54405-21

M [email protected]

Sybille Schlinge – Investor Relations

T +49 (0)203 / 54405-32

M [email protected]

Contact


Disclaimer

This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities. Any such offer is being made solely on the basis of the Securities Prospectus published and registered with the German Financial Supervisory Authority (BaFin), and the rights offering. The information legally required to be provided to investors is contained only in the Securities Prospectus.

The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions or any State of the United States of America or the District of Columbia) and must not be distributed to U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended ("Securities Act")) or publications with a general circulation in the United States of America. This publication does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States of America. The securities have not been and will not be registered under the Securities Act and may not be offered or sold in the United States of America absent registration or an exemption from registration under the Securities Act, as amended. The Issuer does not intend to register any portion of the offering in the United States of America or to conduct a public offering of the Securities in the United States of America.

The shares that are the subject of the offer are not being offered or sold to any person in the United Kingdom, other than to qualified investors as defined in Section 86(7) of the Financial Services and Markets Act 2000, as amended from time to time, which includes legal entities which are regulated by the Financial Services Authority and entities which are not so regulated whose corporate purpose is solely to invest in securities and who also fall within the definition of "Investment Professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (the "FPO") and high net worth entities falling within Article 49(2)(a) to (d) of the FPO.

This publication is not an offer of securities for sale in Canada, Japan or Australia.


roadshow presentation - hamborner...retailing** large-scale retailing office / other * based on rent...

Documents