8 August 2017 / 07:00

Corporate News

HAMBORNER REIT AG enjoys successful first half and raises forecast for 2017

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

08.08.2017 / 07:00
The issuer is solely responsible for the content of this announcement.

Press Release

HAMBORNER REIT AG enjoys successful first half and raises forecast for 2017

- Significant increases in rental income (+ 19.7%) and FFO (+ 28.1%)

- Average borrowing rate drops further to 2.6%

- Forecast raised for rental income (18% to 20%) and FFO (EUR44 to EUR45 million)

Duisburg, 8 August 2017 - HAMBORNER REIT AG has enjoyed a successful first half of 2017 and today publishes its half-year financial report. Income from rents and leases amounted to EUR35.8 million in the first six months and was therefore up by 19.7% year-on-year. FFO, the company's key control parameter, rose strongly by 28.1% in the first half of the year to EUR22.1 million. Profit for the period was also significantly higher as against the first half of 2016 (EUR8.8 million) at EUR10.9 million. The vacancy rate, including agreed rent guarantees, was still at a very low level of 1.5% (previous year: 1.4%) in the reporting period. Not including rent guarantees, the vacancy rate was 1.7% (previous year: 1.7%). NAV per share as at the end of the first half of the year was EUR9.42 and therefore also up on the previous year's level (EUR8.93 as at 30 June 2016). The REIT equity ratio was 61.1% and the loan-to-value (LTV) ratio was 37.7%. The current financial situation of the company therefore remains comfortable.

The company was able to significantly reduce its average financing costs once again thanks to current low interest rates. The average interest rate of loans, including those agreed but not yet utilised as at 30 June 2017, was 2.6% (previous year: 3.2%). "With interest rates as they currently are, we feel there is still the potential to further reduce average financing costs, even given future borrowing and refinancing," said the members of HAMBORNER's Management Board Dr Rüdiger Mrotzek and Hans Richard Schmitz.

After the fair value of property assets rose to more than EUR1 billion as at the end of 2016, the portfolio continued to grow again in the first half of 2017. Ownership of a high-quality office property in Cologne - the O³ - was transferred to HAMBORNER right at the beginning of the year. Furthermore, two more attractive, large-scale retail properties were acquired at the end of the first quarter - "market Oberfranken" in Hallstadt/Bamberg and "Kaufland" in Berlin-Marzahn. The total investment volume for the properties added in the first half of the year was EUR108.8 million. The purchase agreement for a new building in Ratingen was signed in the second quarter. The office property with a purchase price of EUR34.4 million was transferred to the HAMBORNER portfolio on 11 July 2017. Taking into account the properties acquired in 2016 and still under construction in Kiel, Hanau and Passau, ownership of which will transfer in the second half of 2017, the total investment volume will increase to around EUR216 million. The company still has scope for acquisitions of between EUR120 and EUR150 million at this time.

The company has continued to make sales as well. The Kasslerfelder Kreisel property in Duisburg sold at the end of 2016 was transferred at the start of the first quarter of 2017. In addition, the sales agreement for a retail property in Minden was signed in July. With a residual carrying amount of EUR3.9 million, the sale price was EUR4.5 million. Taking into account the additions and disposals in the first half of the year, HAMBORNER had a portfolio of 71 properties with a fair value of more than EUR1.2 billion as at 30 June 2017.

Given the positive business trend in the first half of the year, the company is raising its previous forecast for income from rents and leases and for operating earnings (FFO) for 2017 as a whole. The Management Board is now assuming an increase in income from rents and leases of between 18% and 20%, and growth in FFO to between around EUR44 million and EUR45 million. This would correspond to FFO per share of between EUR0.55 and EUR0.56.

Key figures as at 30 June 2017

  H1 2017 H1 2016
Income from rents and leases EUR35.8 million EUR29.9 million
EBITDA EUR32.0 million EUR26.7 million
Earnings before depreciation and amortisation (EBDA) EUR24.7 million EUR19.8 million
Net profit for the period EUR10.9 million EUR8.8 million
Funds from operations (FFO), absolute EUR22.1 million EUR17.3 million
Funds from operations (FFO) per share EUR0.28 EUR0.28
Net asset value (NAV) per share EUR9.42 EUR8.93
Number of shares 79,717,645 62,002,613
REIT equity ratio 61.1% 56.9%
Loan to Value (LTV) 37.7% 40.5%


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

08.08.2017 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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