DGAP-News: HAMBORNER REIT AG / Key word(s): Annual Results/Forecast
HAMBORNER REIT AG: Annual report confirms record result in 2019 financial year // Uncertainty regarding impact of coronavirus pandemic (COVID-19)
- Rental income (+ 2.1%) and FFO (+ 3.1%) climb to record levels
- NAV per share rises 7.4% to EUR 11.59
- Vacancy rate still at low level of 2.0%
- Forecast withdrawn over global virus pandemic
- Rental space not affected by closures currently accounts for around 75% of rental income
SUCCESSFUL 2019 FINANCIAL YEAR
Duisburg, 26 March 2020 - HAMBORNER REIT AG has enjoyed another successful financial year with further growth in revenue and earnings, and today publishes its annual report. The business figures reported in conjunction with the publication of the provisional results for the year on 5 February 2020 have been confirmed in full.
Income from rents and leases were at a record level of €85.2 million in 2019, up by €1.8 million or 2.1% on 2018. The operating result amounted to €33.3 million (previous year: €32.8 million). The net profit for the year was €17.9 million, down on the previous year's level (€19.4 million) on account of the lower result from the sale of investment property. Funds from operations (FFO), the key operating earnings indicator, rose by 3.1% last year to €54.3 million (previous year: €52.7 million). FFO per share increased accordingly to €0.68, thus bettering the previous year's record figure by a further two cents. The targets for revenue and income for the 2019 financial year were therefore met in full and, in the case of FFO, even surpassed. The vacancy rate including agreed rent guarantees remained at a very low level of 2.0% (previous year: 1.3%). The loan-to-value (LTV) ratio was 42.4% as at 31 December 2019 (previous year: 42.5%). The REIT equity ratio of 57.3% (previous year: 56.4%) was still well in excess of the 45% required under the German REIT Act.
The performance of the property portfolio was also positive in 2019. The annual revaluation of the property portfolio revealed a like-for-like increase in value of €48.9 million or 3.2%. Taking into account the acquisitions and disposals, the total value of HAMBORNER's portfolio is €1,598 million as at 31 December 2019 (previous year: €1,517 million). NAV per share as at the end of the year was €11.59 and therefore up 7.4% on the previous year's level (€10.79 as at 31 December 2018). The positive NAV development highlights the quality of the portfolio focused on shopping and office properties.
2020 PORTFOLIO ADDITIONS
Ownership of two recently completed office properties in Neu-Isenburg and Bonn was transferred to the company in the first quarter. Also, one further office project development was acquired in Aachen. After this outstanding property is added to the portfolio, these properties will contribute around €3.7 million to rental income per year. The total investment volume is €70.2 million.
The global community is facing special challenges regarding the current developments in connection with coronavirus (COVID-19). The Management Board of HAMBORNER REIT AG assumes that the growing spread of the virus and the act adopted by the German parliament to mitigate the consequences of the COVID-19 pandemic in civil, insolvency and criminal procedural law will have a negative impact on the company's result of operations. Specifically, the Management Board expects that, within the period provisionally from April to June 2020, a number of affected tenants will reduce or entirely suspend rent payments. Depending on the duration and extent of the COVID-19 pandemic, it must be anticipated that some of these tenants will not (fully) honour their payment obligations after the stated period.
For this reason, the Management Board has resolved to withdraw the forecast for income from rents and leases and for operating earnings (FFO) for the 2020 financial year published on 5 February 2020. Owing to the rapidity of developments in connection with COVID-19, it is currently not possibel for the Management Board to formulate a forecast for further business performance in the 2020 financial year. The Management Board will therefore not be issuing a new forecast for the 2020 financial year. A new forecast will be published as soon as the implications of COVID-19 for business can be reliably assessed.
Regardless of the uncertainty entailed by the current global crisis, the company feels it is still well positioned with its diversified portfolio of properties in excellent locations. At present, around 75% of total rental income is generated by office and retail tenants (with a focus on food retailers and small supermarkets) not affected by state-wide closures at this time.
The company's conservative business profile also offers a solid foundation for the challenges yet to come this year. In this context, the company currently has liquidity of around €70 million at its disposal. This includes cash and loans under existing agreements that can be utilised at short notice. Furthermore, HAMBORNER REIT AG holds various unencumbered properties that can be used to generate additional funds if necessary. Agreements have already been entered into for property loans scheduled for refinancing in 2020. There are therefore no further financing requirements in this regard. On this basis, the Management Board assumes that HAMBORNER REIT AG's liquidity will be sufficient at all times in the 2020 financial year.
In the coming weeks and months, the Management Board will maintain its regular and comprehensive communications with the company's stakeholders as usual, and it will report on ongoing business activities.
ANNUAL GENERAL MEETING 2020
On 24 March 2020, HAMBORNER issued the invitation to this year's Annual General Meeting and published the agenda in the German Federal Gazette and on the company's homepage. In line with the currently applicable general ruling of the local authorities on events, the Management Board has decided to go ahead with the Annual General Meeting as planned in Mülheim an der Ruhr on 6 May 2020. It plans to take strict prevention and hygiene measures at the venue to keep potential contagion risks as low as possible. The company is in close contact with the authorities in charge and will inform stakeholders as quickly as possible of a potential postponement or cancellation of the event should the general ruling be extended.
OVERVIEW OF KEY FIGURES
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 €1.6 billion. The portfolio focuses on profitable office properties as well as local supply properties as large-scale retail assets, retail parks, DIY stores 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.
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|
|EQS News ID:||1007345|
|End of News||DGAP News Service|