Hello, and welcome to the Hamborner REIT Conference Call H1 Results 2022. Please note this conference is being recorded and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the presentation. This can be done by pressing dial one on your telephone keypad to register your question. I will hand over to your host, Mr. Niclas Karoff, CEO, to begin today's conference. Thank you. Good morning, ladies and gentlemen. Welcome to our H1 2022 Earnings Call. Also on behalf of my colleagues, Hans Richard Schmitz and Christoph, who's leading our IR activities here. We will start the presentation with a glance at the highlights of the first half year. Afterwards, I will hand over to Hans Richard Schmitz, who, as usual, will provide you with more operational and financial details regarding our results. Let's start with a quick look at the key figures. Regardless of the obvious challenging macroeconomic conditions here in which we are finding ourselves, we have been able to keep on track strategically and also operationally. As a consequence, we were able to achieve very solid H1 results again. Influenced by our strategically driven sales activities, total rents on a year-on-year basis came down slightly. On the other hand, as expected, there were positive effects which result from the indexation of rents. Also the FFO came down, additionally driven by certain one-off effects, relating to the reletting measures of former real spaces. With reference to our capital recycling, we added two DIY properties and successfully completed our short-term strategic sales activity. More details regarding these transactions later on in the presentation. Again, our financial profile remains very solid, with an LTV of around 42%. A comfortable net debt EBITDA multiplier of 9.9 and no further refinancing needs for 2022. Overall, a solid first half year, which forms the basis for our updated guidance at the end of the presentation. After this short introduction, let's have a more in-depth look at the development of our portfolio. Let's start with the portfolio overview and additional comments on some KPIs. Concerning portfolio value, taking mainly into account our acquisition and sales activity slightly up compared to year-end 2021. Concerning vacancy, despite various letting successes, overall vacancy went slightly up during H1 to 2.4%, however, highly concentrated on selected assets within our managed core portfolio, as you can see. As of end of June, our core portfolio contained only 1.4%, so that the total vacancy remains on a very low level. Concerning WALT, on the other hand, also as a reflection of our letting results, the total WALT went up to 6.6 years. One driver has been new long-term letting agreements for our former real spaces, which pushed the WALT for our retail portfolio at a highly attractive level of 7.9 years. Let's move on to some further insights on like-for-like development in the portfolio. Considering the the current inflationary environment, we want to provide more transparency on the the rental development. For that reason, we decided to include into our presentation a more detailed year-on-year like-for-like split of the effects from the different influencing factors. As you can see here, we benefited from rent increases based on indexation clauses amounting to 3.6%, which is well-balanced between assets of the different asset classes and our investment strategies. There are two aspects that avoided a higher total like-for-like rent increases. The additional vacancy on one hand, as well as lower reletting rents within the retail portfolio on the other hand. The latter has been influenced by the assets with a former anchor tenant real. Depending on the further inflation development, we expect some additional positive effects for the remaining year as well as for 2023. With that, let me move on to a short transaction overview. The next two slides present an overview regarding our recent acquisitions and sales activities, respectively, the results of our portfolio optimization. Meanwhile, the two newly acquired DIY stores have been integrated into our portfolio. Based on location, asset quality, and long-term secured cash flows, we consider them to be a valuable addition to our core portfolio. On the other hand, we successfully sold the two remaining inner city retail properties, which were earmarked for short-term disposal, on our strategic list. Both transactions happened around the latest fair value. On the next page, you will find the updated results concerning our strategic sales program. Yeah, eventually we succeeded in achieving an even more focused, modern, and also easier to manage portfolio than we had in the past. Within our lean corporate structure, this provides room for future major tasks, especially additional growth geared towards sustainability. Yeah, with this short overview, let me hand over to my colleague, Hans Richard. Thanks for now. Thank you very much, Niclas. Good morning, ladies and gentlemen, and from me also, warm welcome to you all. As always, let us now have a closer look at the operating and financial figures for the first half of this year. Let's start with FFO development. With a total of EUR 41.9 million, income from rents and leases went slightly down compared to previous year, which mainly relates to the disposal of various retail assets during the last 12 months. The reduction of around EUR 3.8 million due to disposals is partly offset by additional rental income from acquisitions of around EUR 1.8 million. Besides, rent development was positively affected by various index-based rent adjustments. Total maintenance expenses increased to around EUR 3.3 million year-on-year. The expenses relate to regular minor ongoing maintenance and various planned measures. On the one hand, the increase of more than EUR 1 million is caused by previous year's COVID-19 impact, where maintenance was significantly reduced. On the other hand, further measures originally planned for Q4 last year have been postponed to this year, partly due to delays in the application of building permissions, for example, in our former real locations in Celle and Gießen. In total, around 12% of EUR 400,000 of the actual maintenance costs are related to those properties. For the rest of this year, we expect additional expenses of EUR 2 million-EUR 2.5 million for the three former real markets. Regarding the reletting of remaining vacant spaces in Celle and Giessen, negotiations with further renowned food retailers have progressed quite well, but here we don't expect additional costs for this year. Currently, we assume total maintenance expenses of EUR 9-10 million for 2022. As a result of the higher maintenance, the net rental income declined to EUR 34.58 million, a decrease of 5.8% compared to first half of 2021. Administration expenses increased to EUR 1.2 million, essentially due to higher expenses for cash deposits, which amounted to EUR 130,000. For the second half of this year, we only expect limited further cost effects as our financing banks already announced to abolish all fees as of this month. Personnel expenses increased to EUR 2.9 million. This is primarily due to salary adjustments as well as to a provision in connection with the appointment of our new management board member. Other operating income was significantly lower as a result of substantial one-off effects in the previous year. In 2021, we received a contractually agreed lease termination payment of EUR 2.2 million from our former tenant, real, and generated additional EUR 2.1 million income in connection with the revaluation of our property in Gießen. The approximately 9% lower interest costs resulted from scheduled repayments and expiries of loans since the beginning of the year. As a result of income and expenses, the FFO came in largely as planned in the reporting period at EUR 24.2 million. The corresponding FFO per share amounts to EUR 0.30. Now let's have a look at our NAV and NTA development. After the significant revaluation uplift at the end of last year, the consistently solid earning situation had a further positive impact on our NAV. FFO contributed with around EUR 24 million to the NAV development in the first half of this year. In contrast, the NAV was negatively affected by our dividend payment in May. As a result, NAV per share amounted to EUR 11.91 as at the end of June, a decrease of 1.7% compared to the end of December 2021, but a significant increase of 8.1% year-on-year. As in previous reporting periods, there is no material difference between NAV and NTA, which is only EUR 0.01 lower on a per share basis. Let me continue with an update on the current letting situation. Despite the ongoing challenging market conditions, we achieved various letting successes during the first half and were able to conclude leases for around 44,000 sq m, primarily related to long-term contract extensions with existing tenants from the food retail sector. Consequently, the average remaining term of leases for our retail portfolio increased significantly to 7.9 years, leading to a sound total portfolio WALT of 6.6 years. The WALT in the office portfolio is still at a consistently high level at five years. The remaining leases outstanding for renewal in the course of this year only correspond to less than 3% of our total annual rents, and we are confident to further benefit from the high level of retention among our existing tenants. A few remarks on our tenant structure. Compared to year-end 2021, there are some changes in our top tenant list. With the transfer of the last former Real market in our Mannheim property, the new tenant, Globus, has doubled its share in our tenant list. The Globus food market in Mannheim, as well as the Globus do it yourself store in Berlin, now contribute with 4.4% to our analyzed rents. As a result of the disappearance of Real, another tenant from the insurance sector took its place in the top 10 list, namely the Verwaltungsberufsgenossenschaft, an employees liability insurance association, which is the tenant in our office property in Mainz. Due to the transfer of ownership of the two large-scale retail properties in Freiburg and Kempten, our do it yourself exposure increased by 250 basis points to 11.5%. In total, our retail properties still contribute with around 57% to total annual rents, while the share of our office tenants is around 43%. All in all, our tenant structure remains very solid and forms the basis for future reliable cash flows. Now I would like to give you a short update on our financial situation, which is again continuing to remain very solid. The REIT equity ratio amounts to 58.7% and is therefore still well in excess of the 45% ratio required. The LTV by end of June is at 41.8%. Further debt indicators such as net debt to EBITDA or EBITDA interest coverage ratio remain at very solid levels at 9.9% and 4.7% respectively. Our average financing costs are unchanged at 1.6%, with an average remaining term of loans at 4.8 years. In spring, we have finalized our refinancing activities for the current year and signed follow-up agreements for all loan schedules for refinancing in 2022. Given the current interest environment, the agreed financing terms are very attractive, with an average interest rate of 1.7% and an average maturity of 6.3 years. Currently, we are starting the refinancing process for 2023, especially for the bonded loans expiring in March 2023. That is all from me for the moment. Thank you for your attention, and I will now hand over to Niclas again in order to give you a short outlook. Yes. Thank you. Thank you very much. Let me go on with our guidance. Taking into account the results of the first half year as well as our current view of the upcoming month, we see ourselves in a position to specify our full year guidance. We narrow the range for the rental income to EUR 84 million-EUR 85 million and expect to achieve an FFO within a range of EUR 47 million-EUR 49 million. With reference to NAV per share, we remain at our expectation of a number around the level of the end of 2021. Yeah, in order to make the assumptions that went into this updated forecast more transparent, we have added an overview of major influencing factors. For obvious reasons, this does not take into account the effects of a significant deterioration in the overall economic situation or potential external shocks in the further course of the year. Leaving this out and, based on the updated forecast, we should be in a position again to propose an attractive dividend to our shareholders for the fiscal year. Yeah, that's for now. Now we'd be happy to take your call. Thank you. As a reminder, if you would like to ask a question or make a contribution, please press star one. The first question comes from the line of Philipp Kaiser of Warburg Research. Please go ahead. Hello, can you hear me? No. Now it's better. Hello. Yes, we can hear you. Thank you. Yeah. Perfect. Thanks for taking my question. Just a couple of follow-ups. We may go through them one by one. The first one referring what you already highlighted, the major influencing factors for your new outlook, the delayed transaction activity. You guys a kind of good portion of cash already on the balance sheet. Are there any kind of negative impact for the coming years if you're not able to do any acquisitions this year to recycle this cash from the high street disposals? Or what's your view on that? That would be the first one. Yeah, I mean, we have been a bit cautious during the last couple of months on the acquisition side based on the market environment. Nevertheless, we are active here on searching for attractive assets. Generally, we intend to move forward as planned, meaning to further expand the portfolio selected acquisitions. On the other hand, we will keep in mind obviously as well our LTV situation so that we don't wanna overstress here the LTV. Based on market situation as we would expect it, hopefully during the course of the remainder of 2022, hopefully we will find a few attractive opportunities, and then we will see if we are able to execute or not. Uh, but, um- Just kind of assuming there will be a further slowdown in transaction volume or so, at least no real recovery, that shouldn't have a major impact on your growth path for the coming years if you are not able to acquire proper assets during the second half of the year. Or is it? I mean, we are now in August, so if we are going to acquire one or a few additional assets during the remainder of the year, the impact would be slightly low for obvious reasons. Then the impact would come in 2022. Again, it depends on how the pipeline is going to continue and what the market gives. That's what I'm saying. Yeah, we have to be a bit more cautious, meaning we want to remain disciplined on considering the pricings we are willing to pay for the assets and therefore we are pretty selective at the moment. Apart from this, I mean, strategically it's very clear that we want to further grow. Okay, thanks. Fully understood. Clear. Coming to the refinancing of the bonded loan, I mean, the interest environment changed rapidly in the last couple of months or even weeks. What's your view on the refinancing side, particularly for the bonded loan? And could you also kind of imagine doing kind of an ESG linked bond to refinance the outstanding one? Or is it not really what you want to do currently? The final decision about the bonded loan and what we will do with this at the beginning of next year. Not yet. We are in preparation and this is yes especially the ESG part. It could be that we will have a ESG link in the bonded loan if we would make a new one. Okay. Thanks. Thanks a lot. The last question is regarding the dividend and the dividend policy. As you stated also this morning that you intend to continue to deliver a reliable dividend policy and an attractive distribution. I think there's room for interpretation and the statement. Can we kinda assume that you stick to the stable dividend or kinda in line with the strategy, like decrease FFO means also a decrease in the dividend distribution or what, well, yeah, what we can assume on that? The reason why we added this comment was very simple, just to stress the fact that we see ourselves as a reliable distributor of dividends here as we have done in the past, and not more, not less. We haven't decided yet on the dividend, but we wanted to send the signal that we take this issue generally very serious. We know about the interest of many of our shareholders concerning our dividend strategy. Therefore we wanted to avoid that opportunity missing here to say something about dividend. That's what we can say at the moment. Okay. Just the statement that given the current situation that there will be a reliable dividend policy, despite the current upheaval. Okay, fully understood. That's all from my side. Thanks a lot for taking my questions. Absolutely. Pleasure. The next question comes from the line of Kai Klose of Berenberg. Please go ahead. Yes, sir. Good morning. I've got two quick questions for me. The first one is on page four of the presentation. You mentioned that there will be more effects coming from indexation, more positive effects from indexation coming in H2 and beyond. Could you give more details in which asset class you expect this to come, either retail or office? Or both? Yeah. It's hi Kai, it's in both. In both asset classes we expect here a positive impact. In which one you expect more? You can say half-half. Okay, thank you. The second question is on page six of the first half report. You mentioned there we had somewhat higher legal and consultancy costs of EUR 425,000 in H1. Could you give a bit more details on that? Should we expect the same amount to come in H2 again? No, it will not be the same amount in H2 because a part of this is related to the search of the new board member for the management team. Thank you. We currently have no questions on the line. If you would like to ask a question, please press star one. There are no further questions on the line. Okay. On behalf of our team, thank you very much for participating in the call. Should you have any further questions, please do not hesitate to contact Christoph afterwards. We hope from ourselves that we are able to talk to you soon. Thank you very much and have a great remaining week. Thank you. Bye-bye. Thank you from my side, too. Bye-bye. Thank you for joining today's call. You may now disconnect.