10 August 2016 / 07:00

Corporate News

HAMBORNER REIT AG enjoyed successful first half of 2016 and announces a further investment

DGAP-News: HAMBORNER REIT AG / Key word(s): Half Year Results

2016-08-10 / 07:00
The issuer is solely responsible for the content of this announcement.


Press Release

HAMBORNER REIT AG enjoyed successful first half of 2016 and announces a further investment

- Positive development in operating activities (rental income +20.9%, FFO +23.9%)

- Follow-up financing concluded for 2017

- Purchase agreement signed for Kurpfalz Center in Mannheim

Duisburg, 10 August 2016 - HAMBORNER REIT AG has enjoyed a successful first half of 2016. Income from rents and leases was EUR29.9 million in the first six months of this year, up by 20.9% year-on-year. FFO, the company's key control parameter, rose by 23.9% in the first half of 2016 to EUR17.3 million. Net profit for the period of EUR8.8 million was also significantly higher than EUR5.0 million for the first half of 2015. The vacancy rate was down considerably year-on-year (2.5%) at 1.4% as at 30 June 2016. NAV per share as at the end of the first half of the year was EUR8.93 and therefore also above the previous year's level (EUR8.47 as at 30 June 2015). The current financial situation of the company remains comfortable with a REIT equity ratio of 56.9% and a loan-to-value ratio (LTV) of 40.5% at the end of the first half year.

After the transfer of possession of the Haerder Centre in Lübeck in the first quarter of this year, the transfer of possession of a DIY store in Ditzingen, for which the purchase agreement was signed in 2015, occured. The purchase price of the property, completed in March 2016, was amounted to EUR13.7 million with a gross initial yield of around 7.0%. In total, HAMBORNER has invested EUR62.8 million in new properties during the first half of 2016.

Furthermore, HAMBORNER signed a purchase agreement for a newly build office property in Kiel in July 2016. The office property with a rental area of around 6,550 m² will be built at an attractive city centre location close to the Firth of Kiel in the coming months. The purchase price is EUR20.9 million with an initial annual rental income of approximately EUR1.2 million and a gross initial yield of around 5.5%. The transfer of possession and the payment of the purchase price will take place after completion of the property and handover to the tenants, which is expected to be in mid-2017.

In addition to the acquisitions, three properties no longer consistent with HAMBORNER's strategy in Duisburg, Dinslaken and Solingen were sold in the first half of 2016. Taking into account the additions and disposals in the first half of the year, HAMBORNER had a portfolio of 68 properties with a fair value of EUR958.7 million as at 30 June 2016. An office and commercial building in Essen, which was sold in May 2016, was transferred to the buyer on 2 August 2016 after the end of the reporting period.

Without further property additions in the second half of the year, the Managing Board is assuming an increase in rental income and FFO for the full year 2016 at the top end of the previously forecast range of 13% to 15%.

The fixed-rate interest agreements for two loans will end in the 2017 financial year. A new interest rate for a loan borrowed in 2007 to replace the interest rate agreement ending as at 30 October 2017 has been agreed until the end of April 2026. The loan has a remaining value of EUR25.7 million, and the interest rate will drop from currently 5.16% to 1.10% from November 2017 onwards. Following the refinancing of another loan with a fixed interest rate agreement ending in July 2017 (loan amount of EUR9.0 million; 1.77% instead of 5.09%), the renewal of all interest rate agreements expiring in 2017 has thus already been concluded.

The company notarised the purchase agreement for the Kurpfalz Center in Mannheim on 8 August 2016. The purchase price amounts to EUR80 million. The Kurpfalz Center is part of the Vogelstang industrial area, an established and well connected location in the east of Mannheim. The retail park, which was comprehensively modernised and expanded in 2013 with the anchor tenants real, Toys'R'Us, Adler Modemärkte, ALDI and dm, has a total rental area of around 28,000 m². The weighted remaining term of the leases is around eight years with annual rental income of EUR4.1 million. The gross initial yield is around 5.1%. The transfer of possession is expected to take place in the fourth quarter of 2016. The Kurpfalz Center is being sold by Württembergische Lebensversicherung AG, Stuttgart, which purchased the property in 2013. Rotthege Wassermann provided legal advice to HAMBORNER and CMS Düsseldorf gave advice to the seller. Lührmann Düsseldorf brokered the transaction. The effects of this acquisition have not been included in the rental income and FFO forecast range set out above.

Key figures as at 30 June 2016

  H1 2016 H1 2015
Income from rents and leases EUR29.9 million EUR24.7 million
EBITDA EUR26.7 million EUR20.5 million
Earnings before depreciation and amortisation (EBDA) EUR19.8 million EUR14.0 million
Net profit for the period EUR8.8 million EUR5.0 million
Funds from operations (FFO), absolute EUR17.3 million EUR14.0 million
Funds from operations (FFO) per share EUR0.28 EUR0.28
Net asset value (NAV) per share EUR8.93 EUR8.47
Number of shares 62,002,613 50,042,665
  30/06/2016 31/12/2015
REIT equity ratio 56.9% 61.5%
Loan to Value (LTV) 40.5% 35.0%


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- & Public Relations:

Christoph Heitmann
Tel.: +49 (0)203 54405-32
Fax: +49 (0)203 54405-49
E-Mail: c.heitmann@hamborner.de
Web: www.hamborner.de

2016-08-10 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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