DGAP-News: HAMBORNER REIT AG / Key word(s): Quarterly / Interim Statement/9 Month figures
HAMBORNER REIT AG enjoys successful nine months and confirms forecast for 2020 financial year
- Positive development in operating activities - Income from rents and leases up by 3.9% and funds from operations (FFO) by 2.5%
- Incoming rent ratios continue to stabilise at pre-crisis levels
- Forecast for 2020 still assumes rising income from rents and leases and FFO to virtually match high prior-year level
- Virtual Annual General Meeting resolves dividend of €0.47 per share
- High acceptance of first-ever stock dividend offer - acceptance ratio of 25.7%
BUSINESS PERFORMANCE IN FIRST NINE MONTHS OF 2020
Duisburg, 10 November 2020 - HAMBORNER has continued the positive business performance of the first half of the year and once again ended the third quarter of 2020 with growth in revenue and earnings. Income from rents and leases amounted to €66.2 million in the first nine months, up 3.9% on the previous year's level. Funds from operations (FFO) climbed by 2.5% to €42.3 million. FFO per share rose accordingly to €0.53. The vacancy rate stayed at a very low level of 1.7% from January to September 2020. The company's financial situation remains comfortable. The REIT equity ratio was thus 55.8% as at 30 September 2020 and the loan-to-value (LTV) ratio 42.5%. The fair value of the property portfolio was €1,626.0 million as at the end of the third quarter. NAV per share rose by 1.2% to €11.45 (30 June 2020: €11.27).
In conjunction with its portfolio optimisation, which will see the gradual disposal of retail properties in city centres, the company had its first successes in the third quarter, signing contracts to sell two high street properties in Osnabrück and Oldenburg. The sale prices amount to €10.5 million in total and are therefore higher than the fair value of the two properties as at 30 June 2020. With residual carrying amounts of around €5.6 million, the book profit will be around €4.9 million. Ownership of the property in Osnabrück was transferred on 1 September 2020. The property in Oldenburg is expected to be transferred to the buyer as at the end of 2020, though no later than the first quarter of 2021. Given the acceleration on the transaction markets and the current rise in marketing activities, the company is confident of further successful disposals in the months ahead.
CURRENT OPERATING BUSINESS SITUATION
The last few months have been dominated by the effects of the global coronavirus pandemic. The far-reaching restrictions on public life and the associated impact on individual tenant groups notwithstanding, HAMBORNER's business model is still proving highly stable. Following a brief decline in rental income in the wake of the national lockdown in spring, incoming rent ratios recovered quickly and were already almost back at pre-crisis levels in the months from July to October, at an average of 98.7%.
Regarding the rent payments outstanding on account of the pandemic, HAMBORNER is still engaged in a trusting dialogue with the tenants concerned and is working intensively on individual and fair solutions. As things currently stand, a number of individual agreements have been reached and temporary rent reductions of around €0.7 million have been granted in this context. This is equivalent to 0.8% of the company's annual rent income. Furthermore, it has been agreed to defer rental payments of €0.4 million or 0.5% of annual rent income.
The rent deferrals and reductions are offset by a number of extensions of the respective leases. The average term of the leases affected, weighted according to rental income, was thus increased by around 24 months. The stability of HAMBORNER's tenant structure is also reflected in the low number of tenant insolvencies to date. Just four smaller tenants, representing only 0.26% of total annual rent, have applied to open insolvency proceedings.
FORECAST FOR 2020
Given the positive business performance in recent weeks, HAMBORNER is confirming the forecast for the year as a whole that was updated in July 2020, and is standing by its positive assessment for revenue and earnings development. The company continues to assume that income from rents and leases will be between €87 million and €88 million in the 2020 financial year (previous year: €85.2 million). Funds from operations (FFO) are expected to virtually match the high level of the previous financial year at between €52 million and €54 million (previous year: €54.3 million). Furthermore, the company is assuming a decline in NAV of less than 10% in the current financial year.
The forecast is subject to the recent tightening of pandemic restrictions not having any material negative impact on tenants' payment patterns or ability to pay. The forecast also does not take into account the effects of possible acquisitions or disposals in the remainder of the year.
With the approval of the Annual General Meeting, for the first time, HAMBORNER offered its shareholders a stock dividend this year. Shareholders who were interested in the straightforward reinvestment of their dividend entitlements were given around two weeks to choose between having their dividend paid in cash or in the form of new HAMBORNER stock.
As a result, shareholders representing 25.7% in total of entitled shares exercised this option and chose to receive their dividend in the form of stock. On the basis of this acceptance rate, 861,922 new shares were issued at a subscription price of €7.854. Accordingly, the company's share capital rose by around 1.1% and the number of shares increased to 80,579,567. This leaves the company with around €6.8 million that it can now use for additional value-adding investment in the HAMBORNER property portfolio.
"We are delighted that numerous shareholders chose the stock dividend the first time that we offered it. Considering the current difficult economic situation, the acceptance rate underlines the trust that shareholders have in our business model and in HAMBORNER's future strategic path", said CEO Niclas Karoff.
OVERVIEW OF KEY FIGURES
The full interim statement for the third quarter of 2020 is available for download at https://www.hamborner.de/en/investor-relations/financial-reports.html.
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 modern 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.
|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:||1146714|
|End of News||DGAP News Service|