DGAP-News: HAMBORNER REIT AG / Key word(s): Final Results/Forecast
HAMBORNER REIT AG - Annual financial statements confirm preliminary figures and successful 2017 financial year
- Income from rents and leases up 19.8%
- FFO rises 24.0%
- Portfolio value around EUR1.4 billion
- NAV per share of EUR10.15 (+5.3%)
- Dividend increases to EUR0.45 per share (+4.7%)
Duisburg, 21 March 2018 - With HAMBORNER REIT AG already having reported a successful 2017 financial year with the publication of its preliminary figures on 8 February 2018, the key figures can now be confirmed without exception with today's publication of the annual report. Income from rents and leases amounted to EUR74.1 million in 2017 and was therefore EUR12.3 million or 19.8% higher than the figure for the previous year. EBIT amounted to EUR32.5 million in the reporting year (previous year: EUR31.7 million). After deducting the financial result, the net profit for the year amounted to EUR17.7 million (previous year: EUR17.4 million. Funds from operations (FFO), the key earnings indicator for operating activities, rose by 24.0% last year to EUR44.7 million (previous year: EUR36.1 million). FFO per share increased to EUR0.56 (previous year: EUR0.45), thus exceeding the previous highest value of EUR0.54 from 2014. The targets for revenue and income for the 2017 financial year were therefore met or even surpassed in some cases.
The vacancy rate including agreed rent guarantees was 1.4% as at 31 December 2017, and therefore on par with the very low level of the previous year (1.3%). The performance of the property portfolio was also very positive in 2017. The annual revaluation of the property portfolio revealed a like-for-like increase in value of EUR32.1 million or 2.9%. The company invested a total amount of EUR214.5 million in seven properties in the past financial year, which also created value added. The total fair value of the properties acquired was EUR227.5 million as at the end of the year, and therefore EUR13.0 million more than the purchase prices of the seven properties. Taking into account the new investments and the increased fair values of the properties already held, the total value of HAMBORNER's portfolio is EUR1,363 million as at 31 December 2017 (previous year: EUR1,115 million). Net asset value (NAV) was up as well as a result of the appreciation of the property portfolio. NAV per share as at the end of the year was EUR10.15 and therefore up 5.3% on the previous year's level (EUR9.64 as at 31 December 2016).
The company's financial situation is likewise very comfortable. The loan-to-value (LTV) ratio was 39.6% as at the end of 2017 (previous year: 30.0%). The REIT equity ratio of 59.0% (previous year: 67.8%) was still well in excess of the 45% required under the German REIT Act.
2018 has begun well for the company. Ownership of the retail properties in Cologne, Bonn and Düsseldorf acquired in October 2017 was transferred on 2 January 2018, hence they will contribute to rental income and FFO for the full financial year. In light of this, the company is assuming that its good business performance will continue in the 2018 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 8% and 10% in 2018. The company is anticipating a similar increase in FFO. This forecast does not take into account other acquisitions or disposals not yet specified further.
ANNUAL GENERAL MEETING 2018
The Annual General Meeting of the company will be held on 26 April 2018 in Mülheim an der Ruhr. Given the consistently good business performance, the Management Board and the Supervisory Board will be proposing to the Annual General Meeting to increase the dividend from EUR0.43 to EUR0.45 per share. This marks an increase of 4.7% as against the previous year and a dividend yield of 4.5% based on the share price at the end of 2017. The invitation to the Annual General Meeting and the agenda were published in the Federal Gazette and on the company's homepage yesterday.
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.
|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|