HAMBORNER REIT AG: Business performance in line with planning in first half-year Confirmation of forecast for full year 2022
- Ongoing portfolio expansion and successful completion of short-term strategic disposal activities
- Further improvement of portfolio quality and sharpening of property profile
- First half-year again verifies high reliability and stability of business model
- Rental income of 41.9 million (-2.4% YOY) and FFO of 24.2 million (-14.9% YOY)
- Net asset value (NAV) per share at 11.91 (+8.1% YOY)
- Higher WALT and consistently low vacancy rate
- Confirmation/specification of forecast for full year 2022
KEY FIGURES FOR FIRST HALF OF 2022
Duisburg, 9 August 2022 On a consistently difficult general economic landscape, HAMBORNER REIT AG has continued the positive business performance of the previous year as planned in the first half of 2022.
Despite the disposal of several properties in line with strategy over the past twelve months, rental income amounted to 41.9 million and was thus only 2.4% lower than the previous years level. The development in rental income was positively affected by contractually agreed rent adjustments as a result of the rise in Inflation (index agreements).
Funds from operations (FFO) declined by 14.9% year-on-year to 24.2 million in the first six months. FFO per share was therefore 0.30. Besides the lower rental income, the decline was essentially due to higher expenses for planned maintenance, which partly resulted from the implementation of secondary use concepts at former REAL sites, and further technical investments originally planned for 2021. Furthermore, the lower result derives from high non-recurring other operating income in the same period of the previous year.
The companys financial position remains very comfortable. The REIT equity ratio was at a consistently high 58.7% as at the end of the first half of the year. The loan-to-value (LTV) ratio was 41.8%.
In conjunction with its ongoing portfolio expansion, two further high quality, large-sale retail properties with long-term leases in place DIY stores in Freiburg and Kempten were transferred to the companys portfolio in the first half of 2022.
At the same time, the portfolio optimisation systematically continued with the disposal of two non-strategic retail properties. The company has therefore now disposed all high-street retail properties that were scheduled for a short-term sale and thus completed its associated sales activities. Despite the dynamic developments on the transaction markets, the selling prices of the 20 high-street assets disposed in total were 2.5% higher than the fair values recently determined.
Following the additions and disposals in the first half of the year, HAMBORNER had 67 properties with a total value of 1.640 billion as at 30 June 2022. Following the distribution of the dividend of 0.47 in May 2022, net asset value (NAV) per share declined by around 1.7% as against the end of 2021 at 11.91 (12.11 as of 31 December 2021). By contrast, NAV per share significantly increased by 8.1% compared to 30 June 2021.
The company continued its reliable and stable business performance in terms of its operating activities as well. During the first half of the year, it had a number of successes in its letting operations and agreed follow-on leases and renewals for around 44,000 m² of rental area. Among others, the company achieved long-term contract extensions with a number of well-known food retailers and further enhanced the attractiveness and future viability of retail locations.
Thanks to successful letting activities, the average remaining term of leases increased significantly year-on-year to 6.6 years, and the term within the retail portfolio is now 7.9 years (office portfolio: 5.0 years).
The occupancy rate was at a consistently high level of 97.6% as at 30 June 2022. Within the core portfolio, which currently accounts for around 96% of the total portfolio, the occupancy rate was even 98.6%.
The portfolio expansion and the completion of short-term strategic disposal activities enhanced the quality of the property portfolio once again and created the foundations for continuing the reliable revenue and income performance as well as for further value-adding growth.
Despite the mounting uncertainty in the face of geopolitical and economic developments, the company is standing by its recently published general assessments for the remainder of the year.
Given the currently dynamic inflation narrative, the company is anticipating additional indexation effects in the coming months, which will positively affect the further rent development.
Taking into account the most recent business developments, the company feels able to confirm its guidance for the year and further refine its forecast for revenue and income performance. HAMBORNER now assumes income from rents and leases of between 84 and 85 million for full financial year 2022 (previously: between 84 and 86 million). Funds from operations (FFO) are expected to amount to between 47 million and 49 million (previously: between 46.5 and 50.5 million), while net asset value (NAV) per share for 2022 will remain at around previous years level.
On the basis of this refined forecast for the year, the company intends to continue its reliable dividend policy and is therefore aiming for an attractive distribution for the 2022 financial year.
KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 30 JUNE 2022
|Income from rents and leases
|Funds from Operations
|Funds from Operations (FFO) per share
||30 June 2022
||31 Dec 2021
|REIT equity ratio
|Loan to Value (LTV)
|EPRA Net Asset Value (NAV)
|EPRA Net Asset Value (NAV) per share
|EPRA Net Tangible Assets (NTA)
|EPRA Net Tangible Assets (NTA) per share
|Fair value of the property portfolio
|EPRA vacancy rate
|Weighted remaining term of leases in years
The full financial report for the first half year of 2022 is available for download at https://www.hamborner.de/en/financial-reports/.
ABOUT HAMBORNER REIT AG
HAMBORNER REIT AG 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 1.6 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 central inner-city locations, district centres and highly frequented edge-of-town sites of 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.
Head of Investor & Public Relations
Tel.: +49 (0)203 54405-32
This press release has been issued by HAMBORNER REIT AG (hereinafter "HAMBORNER") solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of HAMBORNER ("forward-looking statements") that reproduce various assumptions regarding, e.g., results derived from HAMBORNER's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by HAMBORNER and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should therefore not be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. HAMBORNER accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. HAMBORNER does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. HAMBORNER is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.
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