HAMBORNER REIT AG — Interim / Quarterly Report 2018

Aug 9, 2018

Q2 2018

H A L F - Y E A R FINANCIAL REPORT AS AT 30 JUNE 2018

KEY FIGURES AT A GLANCE

€ thousand
from the income statement		30 June 2018	30 June 2017
Income from rents and leases		41,334	35,827
Net rental income		36,250	31,893
Operating result		17,104	15,546
Financial result		-7,592	-7,268
EBITDA		33,698	32,012
EBDA		26,106	24,744
EBIT		17,104	18,150
Funds from operations (FFO)		26,106	22,140
Net profit for the period		9,512	10,882
- thereof as a result from the sale of investment property		0	2,604
from the statement of financial position		30 June 2018	31 Dec. 2017
Total assets		1,203,053	1,173,503
Non-current assets		1,189,402	1,114,033
Equity		522,482	548,159
Equity ratio	in %	43.5	46.7
REIT equity ratio	in %	54.5	59.0
Loan-to-value (LTV)	in %	44.5	39.6
on hamborner shares		30 June 2018	30 June 2017
Number of shares outstanding		79,717,645	79,717,645
Basic = diluted earnings per share	in €	0.12	0.14
Funds from operations (FFO) per share	in €	0.33	0.28
Stock price per share (Xetra)	in €	9.11	8.99
Market capitalisation		726,228	716,662
the hamborner portfolio		30 June 2018	31 Dec. 2017
Number of properties		78	74
Fair value of property portfolio		1,454,350	1,362,600
Vacancy rate (including rent guarantees)	in %	1.0	1.4
Weighted remaining term of leases in years		6.3	6.6
other data		30 June 2018	31 Dec. 2017
Net asset value (NAV)		797,244	808,944
Net asset value per share	in €	10.00	10.15
Number of employees including Management Board		37	36

CONTENTS

4	letter from the management board
5	interim management report
5	General Economic Conditions
5	Report on Result of Operations, Net Asset Situation and Financial Position
7	Report on Risks and Opportunities
7	Forecast Report
8	Condensed Interim Financial Statements of Hamborner Reit AG as at and
	for the six months ended 30 June 2018
8	Condensed interim income statement
9	Condensed interim statement of comprehensive income
10	Condensed interim statement of financial position
12	Condensed interim statement of cash flows
13	Condensed interim statement of changes in equity
14	Notes on the condensed interim financial statements
16	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 9 August 2018.

LETTER FROM THE MANAGEMENT BOARD

DEAR SHAREHOLDERS, LADIES AND GENTLEMEN,

After our positive business performance in 2017 and the subsequent successful start to the new financial year, today we look back on the first half of 2018 in our half-year financial report.

Operating performance was again highly positive in the first half of the year. Income from rents and leases amounted to €41.3 million in the first six months of this year, an increase of 15.4% compared to the same period of the previous year. Funds from operations (FFO), the key operating performance indicator, increased strongly by 17.9% to €26.1 million over the same period. Including rent guarantees, the vacancy rate was at an extremely low level in the first half of 2018 at just 1.0%.

The transfer of ownership of further properties was reported right at the beginning of the year. The properties acquired are three modern, high quality and large-sale retail properties in Cologne, Bonn and Düsseldorf that are an ideal fit for our portfolio. The properties are leased to the supermarket chain EDEKA on a longterm contract. The total purchase price was €43.7 million. The purchase agreement for another property in Darmstadt was signed in the first quarter of 2018. This is a large retail property with a separate office section on land located in an established business park in Darmstadt-Nord. The retail space is leased to the supermarket chain REWE on a long-term contract. The main office tenants are Herbalife and Alcan Systems. The property, with a purchase price of €42.8 million, was transferred to HAMBORNER on 20 April. Following the additions in the first half of the year, the total value of the HAMBORNER portfolio was €1.45 billion as at 30 June.

We likewise have every confidence for the rest of the year. In light of the positive business performance in the first half of the year, instead of growth of between 8% and 10%, we are now forecasting a rise in income from rents and leases of 10% to 12% for 2018 as a whole. At 10% to 12%, we also expect a higher increase in FFO than initially assumed.

We would like to take this opportunity to thank all our shareholders for their confidence, and we look forward to a successful second half of 2018.

Duisburg, August 2018

Dr Rüdiger Mrotzek Hans Richard Schmitz

INTERIM MANAGEMENT REPORT

General Economic Conditions

The German economy is continuing its solid growth. After an increase of 0.3% in gross domestic product in the first quarter of 2018, it is expected to have risen by 0.4% in the second quarter. While the assessment of the current economic situation remains highly positive, expectations are being muted by foreign policy risks and uncertainty in connection with the smouldering trade conflict with the US. Nevertheless, leading economic research institutes are currently projecting growth of between 1.8% and 2.0% for 2018 as a whole.

According to the German Federal Ministry of Economics, the most important pillar of the German economy will continue to be private consumer spending, which is benefiting from rising income and the consistently good labour market situation. Around 2.3 million people were out of work in June 2018 according to the Federal Employment Agency. This corresponds to an unemployment rate of 5.0%. The number of people in employment rose by 0.6 million as against the previous year to 44.8 million.

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

As expected, the result of operations, net asset situation and financial position of HAMBORNER REIT AG were good in the first half of 2018.

Result of Operations

Income from rents and leases climbed by €5,507 thousand or 15.4% as against the same period of the previous year to €41,334 thousand in the first half of 2018 (€35,827 thousand). Income from property additions in 2017 and the first half of 2018 in particular contributed €5,542 thousand (15.5%) to this figure. Rental income from properties that were in our portfolio in both the first six months of 2017 and the reporting half-year (like-for-like) was €269 thousand (0.8%) higher than the previous year's level. Income declined by a total of €304 thousand (0.8%) as a result of property disposals in the previous year.

The vacancy rate is still at an extremely low level – even lower than in the previous year. Including agreed rent guarantees, it was 1.0% in the first half of the reporting year (previous year: 1.5%). Not including rent guarantees, the vacancy rate was 1.5% (previous year: 1.7%).

Income from incidental costs charged to tenants amounted to €6,415 thousand, €844 thousand or 15.1% higher than in the same period of the previous year (€5,571 thousand). Expenses for the management of our properties increased by €1,495 thousand (19.4%) to €9,210 thousand (previous year: €7,715 thousand) by the end of June 2018.

Expenses for the maintenance of our land and property portfolio increased by €499 thousand year-on-year to €2,289 thousand (previous year: €1,790 thousand). The expenses relate to minor ongoing maintenance and various planned measures. There were also significant maintenance expenses of €555 thousand (previous year: €246 thousand) in the first half of the year in connection with new leases and lease renewals.

At €36,250 thousand, the net rental income derived from the above items is €4,357 thousand or 13.7% higher than the value for the same period of the previous year (€31,893 thousand).

Administrative and personnel expenses totalled €2,816 thousand, up only €47 thousand or 1.7% on the previous year's level (€2,769 thousand). Administrative expenses increased by €16 thousand (2.3%) as against the previous year and personnel expenses rose by €31 thousand (1.5%). The operating cost ratio, i.e. administrative and personnel expenses to income from rents and leases, declined further as a result of the low rise in administrative and personnel expenses relative to rental income, and was 6.8% (previous year: 7.7%).

Depreciation and amortisation expenses rose by €2,732 thousand to €16,594 thousand in the reporting period after €13,862 thousand in the same period of the previous year as a result of property acquisitions in particular.

Other operating income amounted to €846 thousand in the first half of 2018 (previous year: €862 thousand). The income includes €416 thousand (previous year: €550 thousand) in compensation payments from tenants for the early termination of leases. Furthermore, the item includes compensation, reimbursements and expenses passed on in connection with property management of €272 thousand (previous year: €274 thousand).

Other operating expenses amounted to €582 thousand in the first half of 2018 (previous year: €578 thousand). This item includes membership fees of €132 thousand (previous year: €130 thousand) and costs of public relations work of €122 thousand (previous year: €107 thousand). Furthermore, €146 thousand (previous year: €146 thousand) relates to input tax adjustments due to the conclusion of VAT-exempt leases (section 15a of the Umsatzsteuergesetz (UStG – German VAT Act), which were passed on to tenants or compensated for by corresponding rent adjustments.

The operating result for the first half of 2018 amounted to €17,104 thousand after €15,546 thousand in the same period of the previous year.

No properties were sold in the first half of 2018. The company generated earnings of €2,604 thousand in the same period of the previous from the disposal of a property in Duisburg and undeveloped land.

The financial result is €-7,592 thousand as against €-7,268 thousand in the same period of the previous year. €-7,402 thousand (previous year: €-7,175 thousand) of this relates to interest expenses on loans. While interest expenses from borrowing additional loans for the pro rata debt financing of property acquisitions increased by €1,260 thousand, the like-for-like interest expense on the loans fell by €1,041 thousand or 15.4%. In particular, this was as a result of lower interest rates on renewed or refinanced loans.

The first half of the year closed with a net profit for the period of €9,512 thousand after €10,882 thousand in the same period of the previous year. The decline resulted in particular from the sale of properties in the previous year, whereas there were no disposals in the first half of the reporting year. Funds from operations (FFO), i.e. the operating result before depreciation and amortisation expenses and not including proceeds from disposals, increased by 17.9% and amounted to €26,106 thousand in the reporting period (previous year: €22,140 thousand). This corresponds to FFO per share of 33 cents (previous year: 28 cents).

Net Asset Situation and Financial Position

Three retail properties in Bonn, Düsseldorf and Cologne with a purchase price of €43.7 million were already added in the first quarter of the reporting year. This was followed in the second quarter by the transfer of ownership of a retail and office property in Darmstadt at a purchase price of €42.8 million on 20 April.

The updated fair value of the developed property portfolio was €1,454.4 million as at the end of the quarter (31 December 2017: €1,362.6 million).

The company had cash and cash equivalents of €10.5 million on 30 June 2018 as against €58.1 million as at 31 December 2017. Cash outflows for investments in the property portfolio (€-96.0 million), the dividend payment for the 2017 financial year (€-35.9 million) and interest and principal repayments for loans (€-36.3 million) were essentially offset by cash inflows from operating activities (€32.5 million) and the issue of promissory note loans (€75.0 million). In addition to its cash and cash equivalents as at 30 June 2018, the company also has financing commitments of €74.0 million at its disposal.

Equity amounted to €522.5 million as at 30 June 2018 after €548.2 million as at 31 December 2017. The reported equity ratio as at the end of the period was 43.4% after 46.7% as at 31 December 2017. The REIT equity ratio was 54.5% after 59.0% as at 31 December 2017.

Current and non-current financial liabilities increased by a net amount of €58.8 million as a result of the issue of promissory note loans in the first half of 2018 in particular, and amounted to €654.5 million as at the end of the first half of the year after €595.7 million as at 31 December 2017. The average borrowing rate for loans in place and those agreed but not yet utilised is 2.2%.

The fair value of derivative financial instruments was €-1.9 million as at 30 June 2018, having improved further as against 31 December 2017 (€-2.5 million).

The net asset value (NAV) of the company was €797.2 million as at the end of first half of the year (31 December 2017: €808.9 million). This corresponds to NAV per share of €10.00. The decline as against 31 December 2017 (€10.15) was largely as a result of the dividend of €0.45 per share distributed in May. NAV per share was up by 6.2% as against the same date of the previous year (30 June 2017: €9.42). NAV is determined by the fair values of the company's assets – essentially the value of its properties – net of borrowed capital.

Report on Risks and Opportunities

As a property company with a portfolio distributed across the whole of Germany, HAMBORNER REIT AG is exposed to a number of risks and opportunities that could affect its result of operations, net assets situation and financial position. There are not currently any new significant changes in the assessment of risks to, and opportunities for, the business development of the company as against 31 December 2017. The comments made in the "Report on Risks and Opportunities" in the 2017 management report therefore still apply.

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

Forecast Report

As a real estate company, HAMBORNER REIT AG held a portfolio of 78 commercial properties as at 30 June 2018. In future, the company's strategy will be geared towards value-adding growth in the fields of retail, high street and office properties.

We are standing by our basic estimates for future business prospects as published in the 2017 annual report. Following the successful first half of the year, instead of growth of between 8% and 10%, we are now forecasting a rise in income from rents and leases of 10% to 12% for 2018 as a whole. At 10% to 12%, we also expect a higher increase in FFO than initially assumed.

CONDENSED INTERIM FINANCIAL STATEMENTS OF HAMBORNER REIT AG AS AT AND FOR THE SIX MONTHS ENDED 30 JUNE 2018

CONDENSED INTERIM INCOME STATEMENT

€ thousand	1 Jan. – 30 June 2018	1 Jan. – 30 June 2017	1 April − 30 June 2018	1 April − 30 June 2017
Income from rents and leases	41,334	35,827	20,970	18,179
Income from passed-on incidental costs to tenants	6,415	5,571	3,266	2,863
Real estate operating expenses	-9,210	-7,715	-3,985	-3,485
Property and building maintenance	-2,289	-1,790	-1,065	-1,025
Net rental income	36,250	31,893	19,186	16,532
Administrative expenses	-723	-707	-367	-363
Personnel expenses	-2,093	-2,062	-1,085	-1,007
Amortisation of intangible assets, depreciation of property, plant and equipment and investment property	-16,594	-13,862	-8,413	-7,126
Other operating income	846	862	740	78
Other operating expenses	-582	-578	-164	-233
	-19,146	-16,347	-9,289	-8,651
Operating result	17,104	15,546	9,897	7,881
Result from the sale of investment property	0	2,604	0	2,273
Earnings before interest and taxes (EBIT)	17,104	18,150	9,897	10,154
Interest income	0	54	0	34
Interest expenses	-7,592	-7,322	-3,844	-3,724
Financial result	-7,592	-7,268	-3,844	-3,690
Earnings before taxes (EBT)	9,512	10,882	6,053	6,464
Basic = diluted earnings per share in €	0.12	0.14	0.08	0.08

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

€ thousand	1 Jan. − 30 June 2018	1 Jan. − 30 June 2017	1 April − 30 June 2018	1 April − 30 June 2017
Net profit for the period as per the income statement	9,512	10,882	6,053	6,464
Items reclassified to profit or loss in future if certain conditions are met:
Unrealised gains/losses (-) on the re valuation of derivative financial instruments	554	1,686	145	821
Items not subsequently reclassified to profit or loss:
Actuarial gains/losses (-) on defined benefit obligations	130	180	0	180
Other comprehensive income for the period	684	1,866	145	1,001
Total comprehensive income for the period	10,196	12,748	6,198	7,465

Other comprehensive income for the period relates to actuarial losses on defined benefit obligations and the effective portion of changes in the fair value of interest rate swaps used to manage the risk of interest rate fluctuations (cash flow hedge).

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION – ASSETS

€ thousand	30 June 2018	31 Dec. 2017
Non-current assets
Intangible assets	502	507
Property, plant and equipment	3,180	3,156
Investment property	1,184,401	1,109,235
Financial assets	1,120	926
Other assets	199	209
	1,189,402	1,114,033
Current assets
Trade receivables and other assets	3,192	1,365
Cash and cash equivalents	10,459	58,105
	13,651	59,470
Total assets	1,203,053	1,173,503

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION – EQUITY AND LIABILITIES

€ thousand	30 June 2018	31 Dec. 2017
Equity
Issued capital	79,718	79,718
Capital reserves	391,194	391,194
Retained earnings	51,570	77,247
	522,482	548,159
Non-current liabilities and provisions
Financial liabilities	631,593	552,979
Derivative financial instruments	1,886	2,109
Trade payables and other liabilities	1,699	1,716
Pension provisions	6,269	6,578
Other provisions	2,179	2,338
	643,626	565,720
current liabilities and provisions
Financial liabilities	22,908	42,682
Derivative financial instruments	76	406
Trade payables and other liabilities	12,090	14,230
Other provisions	1,871	2,306
	36,945	59,624
Total equity, liabilities and provisions	1,203,053	1,173,503

CONDENSED INTERIM STATEMENT OF CASH FLOWS

€ thousand	1 Jan. – 30 June 2018	1 Jan. – 30 June 2017
cash flow from operating activities
Net profit for the period	9,512	10,882
Financial result	7,592	7,268
Depreciation, amortisation and impairment (+)/write-ups (-)	16,594	13,862
Change in provisions	-844	-888
Gains (-)/losses (+) (net) on the disposal of property, plant and equipment and investment property	-1	-2,604
Change in receivables and other assets not attributable to investing or financing activities	-1,818	-1,029
Change in liabilities not attributable to investing or financing activities	1,479	1,619
	32,514	29,110
Cash flow from investing activities
Investments in intangible assets, property, plant and equipment and investment property	-96,021	-115,439
Proceeds from disposals of property, plant and equipment and investment property	1	9,797
Proceeds from disposals of financial assets	2	10
Proceeds from the short-term financial management of cash investments	0	50,000
Interest received	0	11
	-96,018	-55,621
Cash flow from financing activities
Dividends paid	-35,873	-34,279
Proceeds from borrowings of financial liabilities	88,000	79,500
Repayments of borrowings	-28,960	-7,600
Payments for cash collateral for financial liabilities	0	-4,191
Interest payments	-7,309	-7,316
	15,858	26,114
Changes in cash funds	-47,646	-397
Cash funds on 1 January	53,914	25,335
Cash and cash equivalents (with a remaining term of up to three months)	53,914	25,335
Restricted cash and cash equivalents	4,191	0
Fixed-term deposits (with a remaining term of more than three months)	0	50,000
Cash and cash equivalents on 1 January	58,105	75,335
Cash funds on 30 June	6,268	24,938
Cash and cash equivalents (with a remaining term of up to three months)	6,268	24,938
Restricted cash and cash equivalents	4,191	4,191
Cash and cash equivalents on 30 June	10,459	29,129

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

€ thousand	Issued capital	Capital reserves		Retained earnings
			Revaluation surplus	Other retained earnings
As at 1 January 2017	79,718	391,194	-9,850	100,249	561,311
Distribution of profit for 2016 (€0.43 per share)				-34,279	-34,279
Net profit for the year 1 Jan. – 30 June 2017				10,882	10,882
Other comprehensive income 1 Jan. – 30 June 2017			1,866		1,866
Total comprehensive income 1 Jan. – 30 June 2017			1,866	10,882	12,748
As at 30 June 2017	79,718	391,194	-7,984	76,852	539,780
Net profit for the year 1 Jul. – 31 Dec. 2017				6,801	6,801
Other comprehensive income 1 Jul. – 31 Dec. 2017			1,578		1,578
Total comprehensive income 1 Jul. – 31 Dec. 2017			1,578	6,801	8,379
As at 31 December 2017	79,718	391,194	-6,406	83,653	548,159
Distribution of profit for 2017 (€0.45 per share)				-35,873	-35,873
Net profit for the year 1 Jan. – 30 June 2018				9,512	9,512
Other comprehensive income 1 Jan. – 30 June 2018			684		684
Total comprehensive income 1 Jan. – 30 June 2018			684	9,512	10,196
As at 30 June 2018	79,718	391,194	-5,722	57,292	522,482

NOTES ON THE CONDENSED 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 first half of 2018 was published on 9 August 2018. 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 can occur in totals and percentages.

Principles of Reporting

This interim report of HAMBORNER REIT AG as at and for the period ended 30 June 2018 has been prepared in accordance with those International Financial Reporting Standards (IFRS (including IAS 34)) applicable to interim financial reporting as adopted by the European Union, 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 of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act). The scope of its reporting is condensed compared to the IFRS separate financial statements as at 31 December 2017.

The interim financial statements as at and for the period ended 30 June 2018 are based on the same accounting policies as the separate IFRS financial statements as at 31 December 2017. The accounting standards effective from 1 January 2018 that have been endorsed by the EU and revised were complied with. However, the application of these accounting standards had no significant impact on 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 Management 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 last annual financial statements as at and for the year ended 31 December 2017.

Material Transactions in the First Half of 2018

Ownership of the properties in Bonn, Düsseldorf and Cologne (2 January 2018) and Darmstadt (20 April 2018) was transferred in the first half of 2018. The investment volume not including incidental costs of acquisition amounted to €86.5 million.

To finance its further growth, the company issued promissory note loans with a total volume of €75.0 million in March. The loans have terms of five or seven years.

Other Selected Notes

In the process of preparing these interim financial statements, we reviewed the fair values of our investment properties as calculated by an independent expert as at 31 December 2017. The write-down of €0.8 million for a leasehold improvement on the property in Hallstadt taken into account by the expert as at 31 December 2017 has been reversed as the corresponding work was completed as at the end of the reporting period. Furthermore, the fair value of the property acquired in Kiel at the end of the previous year following a project development was increased by €1.3 million as a long-term lease was secured for some of the space still vacant. The review did not identify any further factors affecting the fair value of those properties that would have led to a significantly different valuation as at 30 June 2018. Therefore, the estimated fair values as at 31 December 2017 continue to be reasonable for these interim financial statements. Property additions in Bonn, Düsseldorf, Cologne and Darmstadt after 31 December 2017 were also valued by an independent expert and included in reporting accordingly.

Owing to the rise in capital market interest rates, the discount rate used to measure pension obligations already increased to 1.82% as at 31 March 2018 (31 December 2017: 1.64%). This interest adjustment caused pension provisions to fall by €130 thousand, which was recognised in the revaluation surplus.

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

For the 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 (level 2 under IFRS 13) as at the end of each reporting period, and amount to €679,495 thousand as at 30 June 2018 (31 December 2017: €595,661 thousand).

The derivative financial instruments reported in the statement of financial position are measured at fair value. These are exclusively interest hedges. The fair values 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 13).

Significant Related Party Transactions

There were no reportable transactions with related parties in the first half of 2018.

Events after the End of the Reporting Period

There were no significant events after the end of the 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 net asset situation, financial position and result of operations 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, 9 August 2018

The Management Board

Dr Rüdiger Mrotzek Hans Richard Schmitz

ADDITIONAL INFORMATION

General Development on the Capital Market

Despite a promising start to 2018, national and international stock markets reported losses over the first half of the year. After the DAX had ended 2017 at 12,918 points, the index continued its positive development and rose to a new all-time high of 13,597 points by the end of January. In the wake of growing geopolitical and economic uncertainty, particularly as a result of escalating global trade disputes, the DAX fell below 12,000 points at the end of the first quarter. Despite falling growth forecasts for the German economy, the DAX enjoyed a moderate rise in the second quarter of 2018 and ended the first half of the year at 12,306 points.

HAMBORNER REIT AG Shares

Development of HAMBORNER shares

TURNOVER IN THOUSANDS PRICE 4,000 3,000 1,000 0 €7.00 €8.00 2,000 €9.00 €10.00 €12.00 €11.00 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18

In line with the development of the market as a whole, the price of HAMBORNER shares declined slightly in the first half of 2018. At €9.11 as at 30 June 2018, the share price was around 8% less than at the end of 2017. Market capitalisation amounted to around €726 million as at the end of the first half of the year.

Share turnover was also down in the first six months of this year. Owing to investor restraint, the average trading volume was lower than the average for 2017 at around 133,000 shares per day (previous year: around 176,000).

Name/code	HAMBORNER REIT AG/ HAB
SCN/ISIN	601300/ DE0006013006
Number of shares	79,717,645
Share capital	€79,717,645
Index	SDAX/EPRA Index
Designated sponsor	HSBC
Free float	68.52%
Market capitalisation	€726.2 million

Shareholder Structure

Shareholder structure as at 30 June 2018

Annual General Meeting 2018

The Annual General Meeting was held in Mülheim/Ruhr on 26 April 2018. It resolved a dividend of €0.45 per share for the 2017 financial year. The dividend yield based on the closing price as at 31 December 2017 was therefore around 4.5%.

At the end of the Annual General Meeting, the former Chairman of the Supervisory Board, Dr Eckart John von Freyend voluntarily stepped down from the Supervisory Board due to age. In recognition of his services to HAMBORNER REIT AG, the Supervisory Board named Dr John von Freyend as its Honorary Chairman.

His successor as the Chairman of the Supervisory Board is the former Deputy Chairwoman Ms Bärbel Schomberg, who was elected at the Supervisory Board meeting held after the Annual General Meeting. Dr Andreas Mattner is the new Deputy Chairman of the Supervisory Board.

Furthermore, the Annual General Meeting of HAMBORNER REIT AG elected Mr Rolf Glessing as a new member of the Supervisory Board. Mr Glessing has taken the seat vacated by Dr John von Freyend and, as a former public auditor, is now a member of the Audit Committee.

General Information

Transparency and reporting are highly important in our investor relations activities. Information on resolutions by the Annual General Meeting, general presentation documents and all corporate disclosures can therefore be accessed at any time on our homepage www.hamborner.de in the Investor Relations section. There you can also register for our mailing list to receive a newsletter with all the key information on our company directly by e-mail.

FINANCIAL CALENDAR 2018/2019

9 August 2018	Half-year financial report 30 June 2018
9 November 2018	Quarterly financial report 30 September 2018
27 March 2019	Annual report 2018
2 May 2019	Quarterly financial report 31 March 2019
7 May 2019	Annual General Meeting 2019

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 Management 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.

ABOUT THIS PUBLICATION

Published by: The Management Board of HAMBORNER REIT AG, Duisburg

Date of publication: August 2018

HAMBORNER REIT AG

Goethestrasse 45 47166 Duisburg Tel.: +49 203 54405-0 Fax: +49 203 54405-49 info@hamborner.de www.hamborner.de