DGAP-News: HAMBORNER REIT AG / Key word(s): Quarterly / Interim Statement/Quarter Results
HAMBORNER REIT AG enjoys successful start to 2020 financial year
- Income from rents and leases up by 3.4% and funds from operations by 8.8%
- Portfolio volume rises to €1.64 billion; NAV per share €11.69
- Solid accounting ratios: REIT equity ratio of 56.5% and LTV of 42.0%
- Successful letting activities and further reduction of vacancy rate to 1.6%
- HAMBORNER portfolio proves comparatively resilient: Payments received to date for April amount to around 85% of total rent
SUCCESSFUL START TO 2020
Duisburg, 5 May 2020 - HAMBORNER has continued the positive business performance of the past year and, as expected, once again ended the first quarter of 2020 with growth in revenue and earnings.
Income from rents and leases amounted to €21.8 million, up €0.7 million or 3.4% on the same quarter of the previous year. Funds from operations (FFO) climbed by 8.8% to €13.3 million in the first three months. FFO per share climbed accordingly to €0.17. At 1.6% in the first quarter, the vacancy rate was again below the already low level of the same period of the previous year (2.0%). The REIT equity ratio was 56.5% as at 31 March 2020 and the loan-to-value (LTV) ratio 42.0%.
Ownership of two recently completed office properties in Neu-Isenburg and Bonn was transferred to the company in the first quarter. The total investment volume entailed amounts to €42.1 million. These properties will contribute around €2.3 million to rental income per year. Including the two additions, the company had a portfolio of 81 properties with a fair value of around €1.64 billion as at 31 March 2020. NAV per share was €11.69, 7.1% higher than at the end of the first quarter of 2019 (€10.92).
The full interim statement for the first quarter of 2020 is available for download at https://www.hamborner.de/en/investor-relations/financial-reports.html.
CURRENT BUSINESS SITUATION
After a promising start to the 2020 financial year, the past few weeks have been dominated by the effects of the coronavirus pandemic. As a result of the current crisis situation, around 140 tenants provisionally reduced or suspended their rent payments. As at 30 April 2020, total outstanding receivables from rent (including ancillary costs and VAT) for the month of April amounted to €1.4 million or 15.0% of total rent. Most of the payments not made relate to retail tenants (12.8% of total rent) affected by the officially ordered closure of businesses. HAMBORNER's office tenants almost entirely honoured their payment obligations in April. As a percentage of the company's total rent, just 0.7% of payments by this tenant group were not paid.
In the current market environment, HAMBORNER is benefiting from its diversified portfolio and its high share of tenants of good credit standing in systemically relevant areas, such as food retailers and personal and household goods stores. Given that by far most of the agreed rent payments were made as agreed in April, the HAMBORNER portfolio has proved comparatively resilient even in these economically difficult times.
"Despite the uncertainty still entailed by the gradual easing of the coronavirus lockdown, we are confident of finding mutual and fair solutions with the tenants concerned. The company is excellently positioned and has a solid accounting and financing structure in addition to comfortable liquidity resources. We are therefore cautiously optimistic for the rest of the year, and confident that the company will be able to manage the current challenges," said the members of HAMBORNER's Management Board Niclas Karoff and Hans Richard Schmitz.
OVERVIEW OF KEY FIGURES FOR THE FIRST QUARTER OF 2020
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.
CONTACT INVESTOR RELATIONS & PUBLIC RELATIONS
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