DGAP-News: HAMBORNER REIT AG continues stable business performance and raises earnings forecast for current financial year

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DGAP-News: HAMBORNER REIT AG / Key word(s): Quarter Results/9 Month figures
HAMBORNER REIT AG continues stable business performance and raises earnings forecast for current financial year

09.11.2021 / 07:00
The issuer is solely responsible for the content of this announcement.

PRESS RELEASE

HAMBORNER REIT AG continues stable business performance and raises earnings forecast for current financial year

– Income from rents and leases of €63.9 million (-3.5%)

– FFO on previous year’s level at €42.3 million

– Portfolio expansion and optimisation continuing

– Consistently high rent collection rates and further letting success in third quarter

– Earnings forecast raised for current financial year

OPERATING PERFORMANCE

Duisburg, 9 November 2021 – HAMBORNER REIT AG continued its stable business performance in the third quarter of the current financial year with consistently high rent collection rates (99.3% average for quarter) and generated income from rents and leases of €63.9 million in the first nine months. Despite the disposal of numerous retail properties over the course of 2021 in line with strategy and higher risk provisions for potential rent reductions in connection with the pandemic lockdown in spring 2021, rental income was only 3.5% lower compared to previous year’s level. Funds from operations (FFO) were positively influenced by compensation paid in conjunction with the early termination of a lease agreement and were stable year-on-year at €42.3 million. The company’s financial and liquidity situation remains very comfortable. The REIT equity ratio was 58.6% as at 30 September 2021, an increase of 4.1 percentage points as against the end of 2020. The loan-to-value (LTV) ratio declined to 43.5% during the year (31 December 2020: 44.5%).

PORTFOLIO DEVELOPMENT

As part of the portfolio optimisation programme announced last year, HAMBORNER has now sold 16 high-street properties in total with a transaction volume of €139.0 million, thereby reducing this section of the portfolio to currently five assets or just 3.4% of the total portfolio volume. Moreover, three neighbourhood shopping properties have been sold for a total of €41.9 million in conjunction with the active portfolio management approach. The total transaction volume therefore amounted to €180.9 million, 3.7% higher than the fair value most recently determined.

In return, the company has signed purchase agreements for three attractive office properties and a modern DIY store with a garden centre since the beginning of the year and is thus continuing to further develop the portfolio. While the office properties in Mainz and Stuttgart have already been transferred to the company’s portfolio, the newly developed office building in Münster and the DIY store in Freiburg are due to be transferred as at the end of the year and in the first quarter of 2022 respectively.

Taking into account the transactions already completed, HAMBORNER had 67 properties with a total value of €1.544 billion as at 30 September 2021. Net asset value (NAV) per share was up by around 1.4% as against the end of 2020 at €11.21 (€11.05).

LETTING ACTIVITIES

The company also had a successful third quarter in terms of its letting activities. Despite the consistently difficult general conditions on the letting markets, the company agreed follow-on leases or renewals for around 25,000 m² of rental area, thus increasing its letting performance to around 122,000 m² in total in the current year. Thanks to successful asset management activities, both the occupancy rate (98.2% according to the EPRA definition) and the average remaining term of leases (6.1 years) have remained at a consistently high level as at the end of the third quarter.

FORECAST FOR 2021 FINANCIAL YEAR

HAMBORNER is maintaining its most recently published estimates for future business outlook and is still forecasting income from rents and leases of between €83 and €85 million for 2021 as a whole.

However, taking into account the most recent business developments, the company considers itself to be in the position to slightly increase its operating earnings (FFO) forecast for the year as a whole. The company assumes that FFO will be slightly higher than the last communicated range of €48 to €50 million and will amount to between €52 and €53 million. In particular, the forecast has been revised on account of the postponement or the elimination of expenses originally anticipated for the current financial year.

Accordingly, the company is now assuming a slight increase in NAV per share in 2021 compared to the end of 2020 (€11.05).

KEY FINANCIAL AND PORTFOLIO FIGURES AS AT 30 SEPTEMBER 2021

  9M 2021 9M 2020 Change
Income from rents and leases €63.9m €66.2m -3.5%
Operating result €27.9m €9.0m n/a
Profit for the period €53.8m €0.1m n/a
Funds from Operations €42.3m €42.3m -0.1%
Funds from Operations (FFO) per share €0.52 €0.53 -2.1%
  30 Sep 2021 31 Dec 2020 Change
REIT equity ratio 58.6% 54.5% +4.1%-points
Loan to Value (LTV) 43.5% 44.5% -1.0%-points
EPRA Net Asset Value (NAV) €912.2m €890.7m +2.4%
EPRA Net Asset Value (NAV) per share €11.21 €11.05 +1.4%
EPRA Net Tangible Assets (NTA) €911.7m €890.2m +2.4%
EPRA Net Tangible Assets (NTA) per share €11.21 €11.05 +1.4%
Fair value of property portfolio €1,544.1m €1,624.8m -5.0%
EPRA vacancy rate 1.8% 1.9% -0.1%-points
WALT 6.1 years 6.3 years -0.2 years

 

The full interim statement is available for download at https://www.hamborner.de/en/investor-relations/financial-reports.html.

ABOUT HAMBORNER REIT AG

HAMBORNER REIT AG is a public company listed in the SDAX that operates exclusively in the property sector and is positioned as a portfolio holder for high-yield commercial properties. The company generates sustainable rental income on the basis of a diversified portfolio of properties distributed throughout Germany with a total value of around €1.5 billion. The portfolio focuses on modern office properties at established locations as well as attractive local supply properties as large-scale retail assets, retail parks and DIY stores in major German cities and mid-sized centres.

HAMBORNER REIT AG is distinguished by its many years of experience on the property and capital market, its consistent and sustainably attractive dividend strategy and its lean and transparent corporate structure. The company is a registered real estate investment trust (REIT) and benefits from corporation and trade tax exemption at company level.

CONTACT

Christoph Heitmann
Head of Investor & Public Relations
Tel.: +49 (0)203 54405-32
Mail: c.heitmann@hamborner.de
Web: www.hamborner.de

09.11.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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