26 March 2014 / 08:30

Corporate News

HAMBORNER REIT AG confirms provisional figures for 2013 – positive outlook for 2014

HAMBORNER REIT AG / Key word(s): Final Results/Real Estate

26.03.2014 / 07:30

HAMBORNER REIT AG confirms provisional figures for 2013 - positive outlook for 2014

- Rental and leasing income up 22%

- Rise in operating result (FFO) of 26%

- Dividend proposal of 40 cents per share

- Good start to 2014 - further increase in rent and FFO of 4% to 5% forecast for 2014

Duisburg, 26 March 2014 - At its press conference in Frankfurt/Main to mark the publication of its annual report, HAMBORNER REIT AG today confirmed all the preliminary figures it announced on 6 February. The growth trajectory of the last few years continued and was reflected in increases in key earnings figures. Rental and leasing income climbed to around EUR45.2 million as at 31 December 2013, an increase of 22% as against the previous year (EUR37.0 million), driven primarily by the new acquisitions of recent years. The increase in rental and leasing income also resulted in a rise in the operating result, which amounted to EUR20.4 million (previous year: EUR17.5 million). EBIT amounted to EUR20.8 million, around 13% higher than in the previous year (EUR18.4 million). After deducting net financial costs, the net profit for the year was around EUR8.5 million, up 10% on the previous year's level (EUR7.7 million).

The average vacancy rate remained at a low level of 2.5% (including rent guarantees). Across the entire portfolio, the weighted average remaining term of rental agreements is 7.2 years, which ensures rental cash flow for the coming years.

As a key indicator of operating performance, FFO (funds from operations) climbed significantly by around 26% in absolute terms to EUR23.8 million (previous year: EUR18.9 million). FFO per share - the company's key performance indicator - was EUR0.52 as at 31 December 2013 (previous year: EUR0.41). The company's net asset value (NAV) per share is EUR8.25 (previous year: EUR8.17 per share). The revaluation of the properties as at 31 December 2013 underlines the stable value of the HAMBORNER property portfolio.

The addition of new properties in Munich, Berlin, Bayreuth and Hamburg (total market value addition of EUR114.6 million) led to a 19.6% rise in the total value of the portfolio to EUR691.8 million. Furthermore, a purchase agreement for a commercial property in the Bad Homburg pedestrianised zone was signed in December. This property was transferred to us on 10 January 2014. HAMBORNER has also made progress in disposing of smaller properties with intensive management requirements. A property in Oberhausen was sold for EUR0.9 million in 2013 and sale agreements were signed for properties in Moers, Wuppertal and Hanover. Here, annual rental income of around EUR0.8 million was generated from around 13 commercial and 31 residential leases.
The sale price for the properties in Moers, Wuppertal and Hanover, which were handed over in January and February 2014, was around EUR10.9 million in total. In addition, an office property in Frankfurt from the original portfolio was sold at the start of March. The property built in 1970 with a carrying amount of EUR1.7 million was sold for a price of EUR5.3 million. Ownership is expected to transfer in the second quarter of 2014. The result associated with the sales in 2014 therefore amount to a total of EUR7.9 million.

The company's financial situation remains very sound with cash and cash equivalents of EUR28.2 million as at 31 December 2013, a loan-to-value (LTV) ratio of 43.7% and a REIT equity ratio of 52.5%, well in excess of the 45% required under the German REIT Act. Liabilities to banks totalled EUR331.5 million as at 31 December 2013, with an average remaining term of 7.3 years for the fixed-rate interest agreements. The average interest rate on all borrowings was 3.9% (previous year: 4.4%).

The distribution of a dividend of EUR0.40 per share will be proposed at the Annual General Meeting on 6 May 2014. Based on the price of shares as at the end of the year of EUR7.34, this marks a dividend yield of 5.4%.

The company is also optimistic for the current financial year. The disposals already implemented will further increase the net profit for the year. For 2014 the Managing Board is also forecasting rent growth of around 4% to 5% with a similar increase in FFO (not including income from disposals).

Overview of key figures 2013 2012 Change
Income from rents and leases EUR45.2 million EUR37.0 million +22%
Operating result EUR20.4 million EUR17.5 million +17%
EBIT EUR20.8 million EUR18.4 million +13%
Net profit for the year EUR8.5 million EUR7.7 million +10%
REIT equity ratio 52.5% 60.3% -7.8 percentage points
Loan-to-value (LTV) 43.7% 34.2% +9.5 percentage points
Funds from operations EUR23.8 million EUR18.9 million +26%
Funds from operations (FFO) per share EUR0.52 EUR0.41 +26%
Net asset value (NAV) EUR375.3 million EUR371.8 million +1%
Net asset value (NAV) per share EUR8.25 EUR8.17 +1%
Dividend per share (*) EUR0.40 EUR0.40 +/-0%

(*) proposal to Annual General Meeting


HAMBORNER REIT AG is a stock exchange-listed public limited company that today 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.


Sybille Schlinge
Tel.: +49 (0)203 54405-32
Fax: +49 (0)203 54405-49
E-mail: s.schlinge@hamborner.de
Web: www.hamborner.de

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