HAMBORNER REIT AG successfully closes first six months and confirms forecast for 2019
- Growth in rental income (+2.3%) and FFO (+1.9%)
- Vacancy rate 2.0%
- NAV per share: EUR10.63
Duisburg, 1 August 2019 - HAMBORNER REIT AG has enjoyed a successful first half of 2019 and today publishes its half-year financial report. Income from rents and leases amounted to EUR42.3 million in the first half of the year and was therefore up by 2.3% year-on-year. Funds from operations (FFO), the key operating performance indicator, increased by 1.9% to EUR26.6 million in the first six months. The vacancy rate including agreed rent guarantees remained at a low level of 2.0% (previous year: 1.0%). The company's financial situation remains very comfortable. The REIT equity ratio was 55.2% and the loan-to-value (LTV) ratio was 43.5%.
The company had a portfolio of 78 properties with a fair value of more than EUR1.5 billion as at 30 June 2019. NAV per share as at the end of the first half of the year was EUR10.63 and therefore up 6.3% on the previous year's level (EUR10.00 as at 30 June 2018).
HAMBORNER announced the transfer of ownership of a property in Bamberg immediately after the end of the reporting period. The property acquired in autumn 2018 was transferred to the HAMBORNER portfolio as planned on 1 July. This is a modern, 6,100 m² office and retail property that has been let to the food retailer EDEKA on a long-term lease and other office tenants of good credit standing. The weighted remaining term of the leases is around eight years. The purchase price of the property is EUR14.9 million. With annual rental income of EUR0.84 million, the gross initial yield is 5.6%.
The company has continued to make sales as well. An agreement for the sale of a commercial property in Leverkusen was signed in the middle of July. The selling price is EUR1.6 million. The sale will lead to a positive effect on earnings of EUR0.1 million. Ownership is expected to transfer in the coming weeks.
For 2019 as a whole, the Management Board is standing by its assessment for future business prospects as published in the 2018 annual report. The Management Board is assuming an increase in income from rents and leases of between 1% and 2% and FFO on par with the previous year's high level.
In light of the consistently positive business performance in the current year of 2019 and the forthcoming transfer of ownership of three project developments, the company is assuming further growth in rental income and FFO in 2020. At the start of the coming year, the office properties still under construction in Aachen, Bonn and Neu-Isenburg will be transferred to the HAMBORNER portfolio and will contribute to rental income with around EUR3.6 million p.a.
The half-year financial report is available for download at https://www.hamborner.de/en/investor-relations/financial-reports.html.
Key figures as of 30 June 2019
|Income from rents and leases
|Net profit for the period
|Funds from operations (FFO), absolute
|Funds from operations (FFO) per share
|Net asset value (NAV) per share
|REIT equity ratio
|Loan to Value (LTV)
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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