HAMBORNER REIT AG publishes annual report 2018 and announces record result
- Income from rents and leases: up 12.6%
- FFO: up 17.7%
- Portfolio value: EUR1.5 billion
- NAV per share: EUR10.79 (up 6.3%)
- Dividend increases to EUR0.46 per share
SUCCESSFUL 2018 FINANCIAL YEAR
Duisburg, 27 March 2019 - After HAMBORNER REIT AG reported a highly successful 2018 financial year with the publication of its preliminary figures back on 7 February 2019, the key figures can now be confirmed without exception with today's publication of the annual report.
Income from rents and leases amounted to a record level of EUR83.4 million in the 2018 financial year, up by EUR9.3 million or 12.6% compared with 2017. EBIT amounted to EUR34.4 million in the reporting year (previous year: EUR32.5 million). After deducting the financial result, the net profit for the year was EUR19.4 million (previous year: EUR17.7 million. The vacancy rate including agreed rent guarantees was 1.3%, and therefore below the extremely low level of the previous year (1.4%). Funds from operations (FFO), the key operating earnings indicator, rose significantly by 17.7% last year to the record level of EUR52.7 million (previous year: EUR44.7 million). FFO per share increased accordingly to EUR0.66 (previous year: EUR0.56), thus exceeding the previous highest value of EUR0.56 from the previous year. The targets for revenue and income for the 2018 financial year were therefore met in full and, in the case of FFO, even surpassed.
The company's financial situation remains very comfortable. The loan-to-value (LTV) ratio was 42.5% as at 31 December 2018 (previous year: 39.6%). The REIT equity ratio of 56.4% (previous year: 59.0%) was still well in excess of the 45% required under the German REIT Act.
The performance of the property portfolio was also positive in 2018, highlighting the quality of the portfolio of retail and office properties. The annual revaluation of the property portfolio revealed a like-for-like increase in value of EUR40.0 million or 3.0%. The company successfully continued its growth strategy in the past financial year, investing a total amount of EUR118.6 million in five properties, which also created value added. The total fair value of the properties acquired was EUR124.0 million as at the end of the year, and therefore EUR5.4 million more than the properties' purchase prices. Taking into account the new investments and the increased fair values, the total value of HAMBORNER's portfolio is EUR1,517 million as at 31 December 2018 (previous year: EUR1,363 million). NAV per share as at the end of the year was EUR10.79 and therefore up 6.3% on the previous year's level (EUR10.15 as at 31 December 2017). NAV per share has risen by 24.5% in total since 2014.
"In the years ahead, we intend to steadily grow our property holdings and to further enhance the quality of our portfolio. Thanks to our far-reaching network and close contact with brokers and project developers, we are still able to acquire high quality properties at attractive locations. At this time, we are investing primarily in modern office properties as well as large-scale retail properties and retail centres with food retailers of good credit standing as core tenants. Food retailers have been posting revenue growth for years, and are left largely unscathed by economic downturns. This benefits not just the tenants, but also us as the owner of such properties," said the members of HAMBORNER's Management Board Dr Rüdiger Mrotzek and Hans Richard Schmitz.
In light of the consistently positive business performance, the company intends to propose to the Annual General Meeting on 7 May 2019 to increase the dividend for the 2018 financial year from 45 cents to 46 cents per share. This would mark an increase of 2.2% as against the previous year and a dividend yield of 5.5% based on the share price at the end of 2018. "We intend to continue our dependable and sustainable dividend policy, and to raise our dividend by 2.2% again to 47 cents per share in the coming year," predicted Dr Rüdiger Mrotzek and Hans Richard Schmitz.
For the current 2019 financial year, the company is assuming that the good business performance will continue, even under more volatile general economic conditions. According to current forecasts, income from rents and leases will grow by around one to two percent. FFO, the key operating performance indicator, is expected to match the previous year's high level. This forecast does not take into account other acquisitions or disposals not yet specified further. The remaining fire power for acquisitions of approximately EUR80 to EUR100 million available at this time gives the company the potential for further acquisitions that would have a positive effect on rental income and the operating result. Furthermore, the office properties in Aachen and Bonn acquired in October 2018 will be built over the course of 2019, forming the basis for further increases in rental income and FFO in 2020.
|Overview of key figures
|Income from rents and leases
|Net profit for the year
|REIT equity ratio
|Funds from operations
|Net asset value (NAV)
|Funds from operations (FFO) per share
|Net asset value (NAV) per share
|Dividend per share
|*Proposal to AGM
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 EUR1.5 billion. The portfolio focuses on large-scale retail parks and properties, profitable offices and medical practices and attractive high street properties 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 sustainable dividend policy 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.
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