DGAP-News: HAMBORNER REIT AG / Key word(s): Final Results/Forecast
HAMBORNER REIT AG - Annual financial statements confirm preliminary figures and successful 2016 financial year
- Significant rise in income from rents and leases (+17.9%)
- Increase in FFO (+23.5%) and NAV per share (+5.8%)
- Portfolio value in excess of EUR1.1 billion
- Dividend proposal 0.43 Euro (+2.4%)
- Positive business performance continuing in 2017
SUCCESSFUL 2016 FINANCIAL YEAR
Duisburg, 28 March 2017 - With HAMBORNER REIT AG already having reported a successful 2016 financial year with the publication of its preliminary figures on 9 February 2017, the key figures can now be confirmed without exception with today's publication of the annual report. Income from rents and leases amounted to EUR61.8 million in 2016 and was therefore EUR9.4 million or 17.9% higher than the figure for the previous year. On a like-for-like basis as well, income from rents and leases was up by EUR0.8 million or 1.8%. The average vacancy rate (including rent guarantees) declined further as against the previous year's very low level (1.9%) to 1.3%. EBIT amounted to EUR31.7 million (previous year: EUR27.1 million). After deducting the financial result, the net profit for the year amounted to EUR17.4 million, up significantly by 26.5% on the previous year's level (EUR13.8 million).
Funds from operations (FFO), a key indicator of the company's operating performance, climbed to EUR36.1 million in 2016 (previous year: EUR29.2 million). At 23.5%, the rise in FFO was even higher than projected in the interim report on the third quarter (20%). This growth is due in particular to higher rental income as a result of property acquisitions in 2015 and 2016. With 17.7 million more shares than in the previous year, FFO per share amounted to EUR0.45.
The value of the company's property portfolio likewise rose substantially in 2016. The annual revaluation of the property portfolio revealed a like-for-like increase in value of EUR36.5 million or 4.1%. The new acquisitions implemented in 2016 also created value. The company invested a total amount of EUR179.7 million in five properties in the past financial year. The total fair value of the properties acquired was EUR189.4 million as at the end of the year, and therefore EUR9.7 million more than the purchase prices of the five properties. Taking into account the new investments and the increased fair values, the total value of HAMBORNER's portfolio as at 31 December 2016 is EUR1.115 billion (previous year: EUR900 million).
Net asset value (NAV) was up as well as a result of the appreciation of the property portfolio and the capital increase performed in the reporting year. Absolute NAV amounted to EUR768.5 million as at 31 December 2016, an increase of EUR203.8 million on the figure for the previous year (EUR564.7 million). With a significantly higher number of shares, NAV per share was EUR9.64 or 5.8% above previous year's level (EUR9.11).
The company's financial position remains very comfortable as well. The loan-to-value (LTV) ratio is 30.1% (previous year: 35.0%) and the REIT equity ratio is still well in excess of the 45% required under the German REIT Act at 67.8% (previous year: 61.5%).
2017 has also begun very well for the company. Ownership of the O3 office property in Cologne, acquired in autumn 2016, was transferred on 2 January 2017. Furthermore, purchase agreements for two more large-scale retail properties in Berlin-Marzahn and Hallstadt/Bamberg were signed in January and February. In light of this, the company is assuming that its good business performance will continue in the 2017 financial year with further significant year-on-year increases in results. A central factor in this is rental income, which is currently expected to rise by between around 16% and 18% in 2017. The Management Board is forecasting an increase in FFO to between around EUR43 and EUR44 million (up by 19% to 22% on the previous year). The improvement in results will, in particular, be due to the new acquisitions added in 2016 and early 2017, and the purchases of properties notarised in 2016 and the start of 2017 but not yet transferred. This forecast does not take into account other acquisitions or disposals not yet specified further.
ANNUAL GENERAL MEETING 2017
The Annual General Meeting of the company will be held on 10 May 2017 in Mülheim an der Ruhr. In light of the consistently good business performance, the Managing Board and the Supervisory Board will be proposing to the Annual General Meeting to increase the dividend from EUR0.42 to EUR0.43 per share. This marks an increase of 2.4% as against 2015 and 7.5% as against 2014. The invitation to the Annual General Meeting will be published on 29 March 2017, and the agenda will appear in the Federal Gazette and on the company's homepage on the same date.
About HAMBORNER REIT AG
HAMBORNER REIT AG is a stock exchange-listed public limited company that exclusively operates in the property sector and is positioned as a portfolio holder for high-yielding commercial properties. The company has sustainable rental incomes, with a nationally-dispersed substantial property portfolio as its foundation. Attractive retail trade spaces in key town centre sites of German cities and intermediate centres form the focal point of the portfolio. In addition, the property portfolio includes highly-frequented specialist stores and profitable office buildings, as well as spaces for medical practices.
HAMBORNER REIT AG stands out due to its many years of experience in the property and capital market, its lean and transparent corporate structure as well as its special proximity to the tenants. Since February 18, 2010 HAMBORNER has been a registered Real Estate Investment Trust (REIT) and benefits at company level from exemption from corporation and trade tax.
Investor Relations/Public Relations
|Company:||HAMBORNER REIT AG|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, SIX|
|End of News||DGAP News Service|