HAMBORNER REIT AG — Interim / Quarterly Report 2013

Nov 12, 2013

Hamburg Our property in Kurt-A.-Körber-Chaussee

Q3 2013 INTERIM REPORT

FOR THE THIRD QUARTER OF 2013 AND THE FIRST NINE MONTHS OF 2013

KEY FIGURES AT A GLANCE (IFRS)

€ thousand
From the income statement	30 September 2013	30 September 2012
Income from rents and leases	33,669	27,320
Net rental income	31,007	25,321
Operating result	16,228	13,440
Financial result	-8,925	-7,635
EBITDA	28,881	22,523
EBDA	19,956	14,881
EBIT	16,578	11,068
Funds from operations (FFO)	18,606	14,871
Net profit for the period	7,653	5,815
From the statement of financial position	30 September 2013	31 December 2012
Total assets	609,255	541,437
Non-current assets	586,244	511,352
Equity	269,966	276,752
Equity ratio in %	44.3	51.1
REIT equity ratio in %	52.9	60.3
Loan-to-value (LTV) in %	43.2	34.2
On HAMBORNER shares	30 September 2013	30 September 2012
Basic = diluted earnings per share in €	0.17	0.16
Funds from operations (FFO) per share in € *	0.41	0.33
Stock price per share in € (XETRA)	7.22	6.92
Market capitalisation	328,462	314,814
Other data	30 September 2013	31 December 2012
Fair value of investment property portfolio	673,460	579,510
Net asset value (NAV)	370,146	371,823
Net asset value per share in € *	8.14	8.17
Number of employees including Managing Board	27	26

* Based on the full number of ordinary shares as at end of reporting period

CONTENTS

letter from the managing board

interim management report

• General Economic Conditions
• Report on Result of Operations, Net Asset Situation and Financial Position
• Risk Report
• Forecast
• Supplementary Report

interim financial statements of hamborner reit ag as at 30 september 2013

• Income Statement
• Statement of Comprehensive Income
• Statement of Financial Position
• Statement of Cash Flows
• Statement of Changes in Equity
• Notes on the Interim Financial Statements
• responsibility statement
• additional information

The financial reporting of HAMBORNER REIT AG is in accordance with IFRS (International Financial Reporting Standards) as applicable in the European Union.

This interim report was published on 12 November 2013.

LETTER FROM THE MANAGING BOARD

The third quarter of 2013 is over and we are already rapidly approaching the end of the year. As we reported after the first quarter and the first half of this year, HAMBORNER has enjoyed a highly positive business performance in recent months and systematically continued the growth course on which it has embarked.

We recorded additions to our portfolio of around €95 million with NuOffice in Munich, the office building on the EUREF Campus in Berlin and an office and commercial property in Bayreuth. The OBI DIY store in Hamburg-Bergedorf, now completed and open, will be added to our books as well at the beginning of December. As at 30 September 2013 the value of our portfolio was therefore around €674 million. By the end of the year it will be around €690 million.

We have also not been idle in the area of sales, and can today report good news. In the third quarter we sold two smaller properties in Moers and Oberhausen that were no longer consistent with our strategy.

Our operating successes have continued as well. In the first nine months, for example, management income increased by 23.2% year-on-year and FFO, an indicator of the sustainable performance of the company, rose by 25.1%. For the year as a whole, we are forecasting a 20% increase in rental and leasing income and are striving to increase FFO by around 25%. This would correspond to FFO per share of around 52 cents.

We would especially like to draw your attention to our sustainability report that was published at the start of October. After having primarily described our business growth to you in our annual and quarterly reports to date, by doing this we are reinforcing our understanding of the interconnectedness of the economic, ecological and social dimensions of sustainable corporate governance. Corporate growth and sustainable business are directly linked for HAMBORNER. In September the report was audited by the Global Reporting Initiative (GRI) for compliance with the corresponding reporting standards, and can now be accessed in the Sustainability section of our homepage at www.hamborner.de.

We hope that this helps to make HAMBORNER a little more transparent for you; we thank you for your trust and hope for a continuing constructive discourse with you.

Duisburg, November 2013

Dr Rüdiger Mrotzek Hans Richard Schmitz

INTERIM MANAGEMENT REPORT

General Economic Conditions

The German economy developed less dynamically in the first nine months of 2013 than assumed by experts at the start of the year. Thus, in their autumn reports, the leading economic research institutions now expect the German economy to grow by 0.4% this year rather than the previously anticipated 0.8%. However, buoyed by the brisk expansion of the global economy and waning uncertainty in the euro area due to the public debt crisis, experts believe that Germany is on the brink of an upswing. All the latest indicators are pointing to this as well. Research institutions are therefore forecasting growth of 1.8% for 2014.

The main pillar of this economic recovery will be domestic demand within Germany. In addition to rising investment, this development is also being aided by a stable consumer climate thanks to good employment figures. An unemployment rate of 6.9% is expected for this year, and is then set to drop slightly to 6.8% for 2014. Consumer prices should increase moderately by 1.6% in 2013 and 1.9% in 2014.

Report on Result of Operations, Net Asset Situation and Financial Position

Against the backdrop of the general economic situation, the result of operations, net asset situation and financial position of HAMBORNER REIT AG developed well in line with expectations in the first nine months of this year.

Result of Operations

Management income from our properties amounted to €33,669 thousand by the end of September (previous year: €27,320 thousand). The increase as against the same period of the previous year was therefore €6,349 thousand or 23.2%. In particular, €6,800 thousand (24.9%) of this growth resulted from the property acquisitions of 2012 and the first nine months of the current financial year. Sales of properties reduced rental income by a total of €77 thousand (0.3%). The rental income from properties that were in our portfolio in both the first nine months of this year and same period of 2012 (like-for-like) dropped by €374 thousand (1.4%). The income from charging incidental costs to tenants amounted to €3,630 thousand, up €1,107 thousand (43.9%) on the figure for the same period of the previous year (€2,523 thousand).

The economic vacancy rate including agreed rent guarantees was 2.5% in the first nine months of the reporting year (previous year: 1.7%). Not including rent guarantees the vacancy rate was 3.6%, whereby the increase as against the previous year (1.8%) is due in particular to the properties acquired in Munich and Berlin in the first quarter of 2013, which were not fully let when transferred on account of first-time occupation. Also, the main tenant of a property in Bremen has not renewed its lease. Multi-year rent guarantees were agreed with the sellers for the vacant areas in the Munich and Berlin properties, which are now fully let.

Expenses of €5,094 thousand were incurred for the management of our properties by the end of September 2013 (previous year: €3,525 thousand). The increase of €1,569 thousand (44.5%) as against the same period of the previous year is mainly due to the larger property portfolio.

As at 30 September 2013, the expenses for the maintenance of the land and property portfolio amounted to €1,198 thousand and were €201 thousand higher than in the previous year (€997 thousand).

At €31,007 thousand, the net rental income derived from the above items is €5,686 thousand or 22.5% higher than the value for the same period of the previous year (€25,321 thousand).

Administrative and personnel costs together totalled €3,162 thousand in the reporting period, up €424 thousand or 15.5% on the previous year's level (€2,738 thousand). The operating cost ratio, i.e. administrative and personnel costs to rental and letting income, was therefore 9.4% (previous year: 10.0%).

Depreciation and amortisation expense climbed by €3,237 thousand in the reporting period to €12,303 thousand. In addition to an impairment loss of €463 thousand on a property held for sale in Oberhausen, the increase was essentially due to the growth of the property portfolio.

Other operating income rose by €801 thousand in the first nine months of the reporting year to €1,129 thousand (previous year: €328 thousand). At €1,000 thousand, the largest item in this is compensation paid by a tenant for the early termination of its lease.

Other operating expenses of €443 thousand were incurred after €405 thousand in the previous year. This item includes the costs of public relations work of €157 thousand (previous year: €110 thousand), legal and consulting costs of €122 thousand (previous year: €101 thousand) and contribution payments of €65 thousand (previous year: €65 thousand).

By 30 September 2013, the company generated an operating result of €16,228 thousand, up €2,788 thousand (20.7%) after €13,440 thousand in the same period of the previous year.

The result from the sale of investment property was €350 thousand (previous year: €17 thousand) in the reporting period and results from the disposal of a smaller space from our undeveloped land holdings at the start of the year.

The financial result amounted to €-8,925 thousand, down €1,290 thousand on the figure for the same period of the previous year (€-7,635 thousand). The reduction is primarily due to the further increase in the funds borrowed to finance the company's growth and the associated interest expenses of €8,956 thousand (previous year: €7,868 thousand). On the assets side, interest income dropped by €202 thousand as a result of the reduced liquidity and amounted to €31 thousand in the reporting period.

The first nine months of the current year closed with a net profit for the period of €7,653 thousand after €5,815 thousand in the same period of the previous year. This resulted in earnings per share of €0.17 after €0.16 in the first nine months of the previous year. As a result of the capital increase performed in July of the previous year, the figure for the previous year was calculated using the weighted average number of shares outstanding in the period in accordance with IAS 33.

FFO (funds from operations), i.e. the operating result before depreciation and amortisation expense and not including proceeds from disposals, increased by 25.1% and amounted to €18,606 thousand in the reporting period (previous year: €14,871 thousand). This corresponds to FFO per share of around 41 cents (previous year: 33 cents). FFO is an indicator of the sustainable performance of the company. With this in mind, we adjusted FFO for the first nine months of the current financial year by the non-recurring compensation payment mentioned above included in other operating income. FFO, and FFO per share in particular, is a key control parameter at HAMBORNER.

Net Asset Situation and Financial Position

In the first nine months of the reporting year, the company saw the addition of the two office properties referred to in the financial report on the first half of the year in Munich and Berlin (both added in the first quarter) and an office and retail property in Bayreuth added in the second quarter. The total purchase price was €91.6 million.

On 15 August 2013 we concluded an agreement for the sale of a residential and retail property in Moers for a purchase price of €2.4 million. The property is expected to be transferred at the start of 2014. Furthermore, on 24 September 2013 an agreement for the disposal of a residential and retail property in Oberhausen for a purchase price of €0.9 million was notarised. The property was transferred to the purchaser on 1 November 2013. With total annual rental income of €0.3 million on six commercial rental units and 23 residential units, the divestments in Moers and Oberhausen are in line with our strategy of selling smaller properties with high administrative requirements.

The current carrying amounts of the properties in Moers and Oberhausen have been reclassified to "Non-current assets held for sale". The amount reported for this item in the previous year of €3 thousand relates to around 5,300 m² from our undeveloped land holdings. This land was transferred to the buyer in January of this year.

The updated market value of the developed property portfolio was €673.5 million as at the end of the reporting period (31 December 2012: €579.5 million).

On 30 September 2013, the company had bank deposits and cash balances of €19.6 million. In particular, the decline of €9.7 million as against cash and cash equivalents as at 31 December 2012 (€29.3 million) results from the dividend payment for the 2012 financial year (€18.2 million) and payments for investments in the property portfolio (€90.4 million). These effects were offset by inflows from operating activities (€27.3 million; previous year: €19.8 million) and the borrowing of loans to finance property acquisitions in the amount of €86.1 million. Furthermore, the company has funding not yet used of €22.4 million at its disposal from loan agreements already concluded. These funds can be accessed immediately on fulfilment of the payout requirements.

In terms of equity and liabilities, equity amounted to €270.0 million as at 30 September 2013 after €276.8 million as at 31 December 2012. The reported equity ratio as at the end of the reporting period was 44.3% after 51.1% as at 31 December 2012. The REIT equity ratio declined from 60.3% as at 31 December 2012 to 52.9%.

Current and non-current financial liabilities rose by a net total of €80.0 million as a result in particular of the utilisation of property loans to finance property acquisitions less scheduled repayments, amounting to €310.7 million as at the reporting date after €230.7 million as at 31 December 2012.

The fair value of derivative financial instruments rose as against 31 December 2012 (€-15.2 million) to €-11.4 million as at 30 September 2013.

Risk Report

As a property company with a portfolio covering the whole of Germany, HAMBORNER REIT AG is exposed to a number of risks that could affect its result of operations, financial position and net assets situation. Currently, there were no significant changes in the assessment of risks to the business development of the company as against 31 December 2012. The comments made in the risk report of the 2012 management report therefore still apply.

The European Parliament has adopted the AIFM Directive, short for the Alternative Investment Fund Manager Directive, which must now be implemented in the national law of individual member states. As a result of the AIFM Directive, the European investment industry will be more closely regulated moving forward. More stringent supervisory and regulatory requirements will mean higher expenses. Following the final consultation letter by BaFin in the middle of June, REITs in Germany no longer fall within its scope per se. As with other listed property companies, this will depend on a case-by-case analysis. Thus, we are assuming that our company does not classify as an AIF.

No risks to the continuation of the company as a going concern are currently discernible.

Forecast

As an asset manager for commercial properties, HAMBORNER REIT AG held a portfolio of 72 properties as at 30 September 2013. In future, the company's strategy will be geared towards value-adding growth in the fields of retail, high street commercial properties and office properties.

The Managing Board is standing by its basic estimates regarding future business prospects as published in the 2012 annual report. For the year as a whole, the Managing Board is striving for a further significant rise in rental income of around 20% as against the 2012 financial year with the vacancy rate to remain low. In addition, the company is anticipating a stable performance in operating business and intends to increase FFO by around 25% to approximately 52 cents per share year-on-year as well in the 2013 financial year.

Supplementary Report

Ownership of the property held for sale in Oberhausen was transferred by 1 November 2013.

INTERIM FINANCIAL STATEMENTS OF HAMBORNER REIT AG AS AT 30 SEPTEMBER 2013

Income Statement

€ thousand	1 January – 30 September 2013	1 January – 30 September 2012	1 July – 30 September 2013	1 July – 30 September 2012
Income from rents and leases	33,669	27,320	11,497	9,127
Income from passed-on incidental costs to tenants	3,630	2,523	1,246	911
Real estate operating expenses	-5,094	-3,525	-1,721	-1,151
Property and building maintenance	-1,198	-997	-536	-400
Net rental income	31,007	25,321	10,486	8,487
Administrative expenses	-828	-706	-236	-205
Personnel costs	-2,334	-2,032	-788	-643
Amortisation of intangible assets, depreciation of property, plant and equipment and investment property	-12,303	-9,066	-4,187	-3,058
Other operating income	1,129	328	27	74
Other operating expenses	-443	-405	-101	-105
	-14,779	-11,881	-5,285	-3,937
Operating result	16,228	13,440	5,201	4,550
Result from the sale of investment property	350	17	0	0
Earnings before interest and taxes (EBIT)	16,578	13,457	5,201	4,550
Interest income	31	233	4	116
Interest expenses	-8,956	-7,868	-3,163	-2,624
Financial result	-8,925	-7,635	-3,159	-2,508
Earnings before taxes (EBT)	7,653	5,822	2,042	2,042
Income taxes	0	-7	0	0
Net profit for the period	7,653	5,815	2,042	2,042
Basic = diluted earnings per share (in €)	0.17	0.16	0.04	0.05

Statement of Comprehensive Income

€ thousand	1 January – 30 September 2013	1 January – 30 September 2012	1 July – 30 September 2013	1 July – 30 September 2012
Net profit for the period as per income statement	7,653	5,815	2,042	2,042
Items reclassified to profit or loss in the future if certain conditions are met:
Unrealised gains/losses (-) on the revaluation of derivative financial instruments	3,758	-2,374	603	-926
Other comprehensive income for the period	3,758	-2,374	603	-926
Total comprehensive income for the period	11,411	3,441	2,645	1,116

Other comprehensive income relates to changes in the fair value of interest rate swaps used to manage the risk of interest fluctuations. Corresponding changes in fair value are recognised in the revaluation surplus if they are sufficiently effective and this is documented.

Statement of Financial Position – Assets

€ thousand	30 September 2013	31 December 2012
Non-current assets
Intangible assets	8	14
Property, plant and equipment	142	159
Investment property	585,779	510,834
Financial assets	12	24
Other assets	303	321
	586,244	511,352
Current assets
Trade receivables and other assets	1,252	769
Income tax receivables	7	7
Bank deposits and cash balances	19,581	29,306
Non-current assets held for sale	2,171	3
	23,011	30,085
Total assets	609,255	541,437

Statement of Financial Position – Equity and Liabilities

€ thousand	30 September 2013	31 December 2012
Equity
Issued capital	45,493	45,493
Capital reserves	124,279	124,279
Retained earnings
Other retained earnings	91,348	91,348
Revaluation surplus	-15,137	-18,895
	76,211	72,453
Net retained profits
Profit carryforward	16,330	12,496
Net profit for the period	7,653	7,741
Withdrawal from other retained earnings	0	14,290
	23,983	34,527
	269,966	276,752
Non-current liabilities and provisions
Financial liabilities	301,933	222,990
Derivative financial instruments	11,381	14,838
Trade payables and other liabilities	2,255	2,013
Pension provisions	7,885	8,160
Other provisions	1,581	1,566
	325,035	249,567
Current liabilities and provisions
Financial liabilities	8,765	7,707
Derivative financial instruments	66	367
Income tax liabilities	19	18
Trade payables and other liabilities	3,689	4,314
Other provisions	1,715	2,712
	14,254	15,118
Total equity and liabilities	609,255	541,437

Statement of Cash Flows

€ thousand	1 January – 30 September 2013	1 January – 30 September 2012
Cash flow from operating activities
Earnings before taxes (EBT)	7,653	5,822
Financial result	8,925	7,635
Depreciation, amortisation and impairment (+)/write-ups (-)	12,303	9,066
Change in provisions	-1,455	-1,336
Gains (-)/losses (+) (net) on the disposal of property, plant and equipment and investment property	-350	-66
Change in receivables and other assets not attributable to investing or financing activities	-401	-409
Change in liabilities not attributable to investing or financing activities	553	275
Interest received	108	155
Tax payments	0	-1,295
	27,336	19,847
Cash flow from investing activities
Investments in intangible assets, property, plant and equipment and investment property	-90,359	-22,208
Proceeds from disposals of property, plant and equipment and investment property	354	7,732
Proceeds from disposals of financial assets	11	4
Payments relating to the short-term financial management of cash investments	0	-15,000
Proceeds relating to the short-term financial management of cash investments	15,000	0
	-74,994	-29,472
Cash flow from financing activities
Dividends paid	-18,197	-13,648
Proceeds from borrowings of financial liabilities	86,059	11,250
Repayments of borrowings	-5,415	-4,358
Proceeds from the capital increase	0	73,927
Payments for the costs of the capital increase	0	-2,559
Interest payments	-9,514	-7,592
	52,933	57,020
Changes in cash and cash equivalents	5,275	47,395
Cash and cash equivalents on 1 January	14,306	18,685
Bank deposits and cash balances (with a remaining term of up to three months)	14,306	18,685
Fixed-term deposits (with a remaining term of more than three months)	15,000	0
Bank deposits and cash balances	29,306	18,685
Cash and cash equivalents on 30 September	19,581	66,080
Bank deposits and cash balances (with a remaining term of up to three months)	19,581	66,080
Fixed-term deposits (with a remaining term of more than three months)	0	15,000
Bank deposits and cash balances	19,581	81,080

Statement of Changes in Equity

€ thousand	Issued capital	Capital reserves	Retained earnings			Net retained profits		Total equity
			Other retained earnings	Revalua tion surplus	Profit carryfor ward	Net profit for the period	Withdraw al from other retained earnings
As at 1 January 2012	34,120	64,285	105,638	-15,056	17,064	7,865	1,215	215,131
Carryforward to new account					9,080	-7,865	-1,215	0
Distribution of profit for 2011					-13,648			-13,648
Capital increase	11,373	62,553						73,926
Costs of capital increase		-2,559						-2,559
Other comprehensive income for the period 1 January – 30 September 2012				-2,374				-2,374
Net profit for the period 1 January – 30 September 2012						5,815		5,815
Total comprehensive income for the period 1 January – 30 September 2012				-2,374		5,815		3,441
As at 30 September 2012	45,493	124,279	105,638	-17,430	12,496	5,815	0	276,291
Other comprehensive income for the period 1 October – 31 December 2012				-1,465				-1,465
Withdrawal from other retained earnings			-14,290				14,290	0
Net profit for the period 1 October – 31 December 2012						1,926		1,926
Total comprehensive income for the period 1 October – 31 December 2012				-1,465		1,926		461
As at 31 December 2012	45,493	124,279	91,348	-18,895	12,496	7,741	14,290	276,752
Carryforward to new account					22,031	-7,741	-14,290	0
Distribution of profit for 2012					-18,197			-18,197
Other comprehensive income for the period 1 January – 30 September 2013				3,758				3,758
Net profit for the period 1 January – 30 September 2013						7,653		7,653
Total comprehensive income for the period 1 January – 30 September 2013				3,758		7,653		11,411
As at 30 September 2013	45,493	124,279	91,348	-15,137	16,330	7,653	0	269,966

Notes on the Interim Financial Statements

Information on HAMBORNER

HAMBORNER REIT AG is a listed corporation (SCN 601300) headquartered in Duisburg, Germany. This interim report of HAMBORNER REIT AG for the third quarter of 2013 was published on 12 November 2013. The interim financial statements have been prepared in euro (€), whereby all amounts – unless stated otherwise – are reported in thousands of euro (€ thousand). Minor rounding differences may occur in totals and percentages.

Principles of Reporting

This interim report of HAMBORNER REIT AG as at 30 September 2013 is in accordance with IFRS (International Financial Reporting Standards) as applicable in the European Union. In particular, it was prepared in line with the regulations of International Accounting Standard (IAS) 34 on interim reporting and the requirements of the German Accounting Standard No. 16 of DRSC (German Accounting Standards Committee) on interim reporting and in accordance with the requirements of section 37w and 37x of Wertpapierhandelsgesetz (WpHG – German Securities Trading Act). The scope of its reporting has been condensed compared to the separate financial statements as at 31 December 2012.

The interim financial statements as at 30 September 2013 are based on the same accounting policies as the separate IFRS financial statements as at 31 December 2012. The accounting standards applicable from 1 January 2013 that have been endorsed by the EU and revised were complied with. However, with the exception of additional disclosures on financial instruments in accordance with IAS 34.16A (j) in the notes, they had no significant effect on the presentation of the interim financial statements.

This interim report was neither audited by an auditor in accordance with section 317 HGB nor reviewed by an auditor.

In the opinion of the Managing Board, the interim report contains all the significant information needed to understand the changes in the result of operations, net asset situation and financial position of HAMBORNER REIT AG since the end of the last reporting period. The significant changes and transactions in the reporting period are presented in the interim management report of this document.

Other Selected Notes

In the process of preparing these interim financial statements, we reviewed the fair values of our properties as calculated by expert opinion as at 31 December 2012. The fair values of the properties in Moers and Oberhausen reported under "Non-current assets held for sale" were reduced by a total of €720 thousand and adjusted in line with their respective sale prices. The review did not identify any further factors affecting their value that would have led to a significantly different valuation. It therefore currently appears justified to retain the values for these properties as calculated by expert opinion as at 31 December 2012 in these interim financial statements. Property additions after 31 December 2012 were also valued by an expert and included in reporting accordingly.

With the exception of derivatives recognised at fair value, all assets and liabilities are measured at amortised cost.

Under assets and liabilities recognised at amortised cost, except for the financial liabilities, the carrying amounts of the financial assets and liabilities in the statement of financial position are a good approximation of their fair value.

The fair values of financial liabilities are equal to the present values of the payments associated with the liabilities, taking into account the current interest rate parameters as at the end of the reporting period, and amount to €321,570 thousand as at 30 September of this year (31 December 2012: €245,700 thousand).

The derivative financial instruments reported in the statement of financial position are measured at fair value. These are exclusively interest hedges. The market values calculated by banks result from discounting the expected future cash flows over the residual term of the contracts on the basis of observable market interest rates or yield curves (level 2 under IFRS 7).

By way of resolution by the Annual General Meeting on 7 May 2013, HAMBORNER was granted authorised capital in the amount of 50% of its current share capital and the authorisation to issue warrant and convertible bonds (contingent capital) for its further growth. These resolutions are anticipatory and the authorisations have a term of five years.

Significant Related Party Transactions

There were no reportable transactions with related parties in the 2013 reporting period.

RESPONSIBILITY STATEMENT

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the company, and the interim management report of the company includes a fair review of the development and performance of the business and the position of the company, together with a description of the principal opportunities and risks associated with the expected development of the company for the remaining months of the financial year.

Duisburg, 12 November 2013

The Managing Board

Dr Rüdiger Mrotzek Hans Richard Schmitz

HAMBORNER REIT AG Shares

Although the financial and political situation in the south of the euro area in particular has not yet eased significantly, the state of the European financial markets continued to grow calmer as a result of the support pledged by the European Central Bank. Furthermore, the German economy is still on track for growth and sentiment on the capital markets is positive. The DAX was at around 7,680 points at the start of the year. After reaching its first record high in May, it briefly slipped back below the 8,000-point line in the middle of the year. It reached its highest level in the reporting period on 19 September at 8,770 points and closed on 30 September 2013 at 8,594 points.

Name/code HAMBORNER REIT AG/HAB
SCN/ISIN 601300/DE0006013006
Number of shares 45,493,333
Share capital	€45,493,333
Index	SDAX/EPRA Index
Designated sponsor	HSBC
Free float	77.51%
Market capitalisation	€328.5 million

The performance of HAMBORNER's shares varied considerably in the first nine months of 2013. After a good start at the beginning of the year, the shares repeatedly came under pressure despite positive operating business, good figures and optimistic forecasts. Even after the payment of a dividend of 40 cents per share, they ended the first half of the year at €7.00 (down 6.4% since the end of 2012). From the start of July until the end of September, the price mostly remained between €6.95 and €7.30 without any discernible influences and closed on 30 September 2013 at €7.22 (down 3.5% on the end of 2012).

The markdown compared to their net asset value (NAV) per share of €8.14 was therefore 11.3%.

We still do not find this development in our share price to be satisfactory – especially given our good operating business, the solid structure of the company and the positive forecasts for 2013 as a whole. As in the past few months and weeks, we will therefore continue to actively seek to engage analysts and investors at roadshows and capital market conferences moving ahead.

Sustainability Report

After having primarily described our business growth to you in our annual and quarterly reports to date, we are delighted to have presented our first sustainability report at the start of October of this year. This report is intended as a first step in bringing you closer to our understanding of the interconnectedness of the economic, ecological and social dimensions of sustainable corporate governance, and to further enhance our claim to transparent reporting.

The sustainability report can be accessed in the Sustainability section of our homepage at www.hamborner.de. Naturally we shall also be happy to send you a bound copy on request if so required.

General Information

Transparency and reporting are the watchwords of our investor relations activities. The latest information, presentation documents and corporate disclosures can therefore be accessed at any time on our homepage www.hamborner.de in the Investor Relations section.

Here you can also join our mailing list to receive a newsletter containing all the key information on our company directly by e-mail.

Shareholder Structure as at 30 September 2013

ISIN: DE0006013006 SCN: 601300

Financial Calendar 2013/2014

12 November 2013	Interim report for Q3 2013
26 March 2014	Annual report 2013
5 May 2014	Interim report for Q1 2014
6 May 2014	Annual General Meeting 2014

Forward-looking Statements

This report contains forward-looking statements, e.g. on general economic developments in Germany and the company's own probable business performance. These statements are based on current assumptions and estimates by the Managing Board, which were made diligently on the basis of all information available at the respective time. If the assumptions on which statements and forecasts are based are not accurate, the actual results may differ from those currently anticipated.

Imprint

Publisher: The Managing Board of HAMBORNER REIT AG, Duisburg

As at: November 2013

HAMBORNER REIT AG

Goethestrasse 45 47166 Duisburg

Tel.: +49 (0) 203 54405-0 Fax: +49 (0) 203 54405-49 info@hamborner.de www.hamborner.de