17 March 2022 / 06:00

Corporate News

HAMBORNER REIT AG: Final figures confirm stable revenue and income development in 2021 – dividend proposal of €0.47 per share

DGAP-News: HAMBORNER REIT AG / Key word(s): Annual Results/Forecast
17.03.2022 / 07:00
The issuer is solely responsible for the content of this announcement.

PRESS RELEASE

HAMBORNER REIT AG: Final figures confirm stable revenue and income development in 2021 - dividend proposal of €0.47 per share

- Income from rents and leases of €84.4 million (-4.3%) and FFO of €53.1 million (-4.5%)

- Revenue and income targets for 2021 financial year achieved or outperformed

- Systematic implementation of portfolio strategy through selective acquisitions and disposals

- Increase in value of like-for-like portfolio of 4.8%

- Significant increase in NAV per share to €12.11 (+9.6%)

- Strong letting performance and consistently extremely low vacancy rate

- Dividend proposal unchanged year-on-year at €0.47

BUSINESS PERFORMANCE IN 2021

Duisburg, 17 March 2022 -HAMBORNER REIT AG has enjoyed another successful financial year in 2021 and is today publishing its annual report. The business figures reported in conjunction with the publication of the preliminary results on 8 February 2022 have been confirmed in full.

Despite the disposal of a number of properties over the course of 2021 in line with strategy, rental income amounted to €84.4 million and was thus only 4.3% lower than the previous year's level. Funds from operations (FFO) were down 4.5% year-on-year at €53.1 million in 2021. FFO per share was €0.65. The targets for revenue and income for the 2021 financial year were therefore fully met or even outperformed.

The company's financial and liquidity situation is still comfortable. The REIT equity ratio was 61.0% as at 31 December 2021, an increase of 6.5 percentage points as against the end of 2020. The loan-to-value (LTV) ratio declined to 41.3% during the year (31 December 2020: 44.5%).

At an operational level, despite the consistently difficult conditions, the company had a number of successes in its letting operations, some of which substantial, and agreed follow-on leases or renewals for around 140,000 m² of rental area (previous year: 102,000 m²). As a result of successful asset management activities, the EPRA vacancy rate was still at an extremely low level of 2.0% as at the end of 2021. The average remaining term of the leases was 6.1 years.

PORTFOLIO DEVELOPMENT

In line with its strategy, the company added three attractive office properties and a modern DIY store to its portfolio in 2021. The total investment volume was €79.6 million. While the office properties in Mainz, Stuttgart and Münster were already transferred to HAMBORNER's portfolio in 2021, the DIY store in Freiburg has been added to the portfolio this week.

At the same time, HAMBORNER has systematically continued the optimisation of its property portfolio and thus again enhanced the quality of the portfolio as a whole. Since the revision of its business strategy in the summer of 2020, 21 properties in total, mainly in city centres, with a total volume of €194.6 million have been sold. On average, the sale prices were 3.5% higher than the fair values recently determined. As a result of the portfolio rotation, the average age of the properties has fallen significantly by 31%, while the average property value increased by 21%.

On the basis of the annual appraisal of the portfolio by Jones Lang LaSalle, the market value of the property portfolio (on a like-for-like basis) was up by €70.0 million or 4.8%. The increase is particularly due to the appreciation of local supply properties.

Taking into account the reappraisal and the transactions already completed, HAMBORNER had 68 properties with a total value of €1,604 million as at 31 December 2021. Net asset value (NAV) per share rose significantly by 9.6% as against the previous year to €12.11.

DIVIDEND & ANNUAL GENERAL MEETING

In line with the consistently good business performance in 2021, the Management Board will propose a dividend on previous year's level of €0.47 per share at the upcoming Annual General Meeting. Based on the current share price, this would translate into a dividend yield of around 4.9%.

The Annual General Meeting of the company will be held on 28 April 2022 in virtual form, without shareholders or their authorised representatives attending in person. The agenda and the proposals for resolution will be published today in the German Federal Gazette and on the company's website at https://www.hamborner.de/en/general-shareholder-meeting.

FORECAST FOR 2022

In view of the high quality of its property portfolio and its solid financial, earnings and liquidity situation, the company is optimistic for the remainder of the year and has issued its initial guidance for business performance in 2022:

- Income from rents and leases: €84.0 million to €86.0 million

- Funds from operations (FFO): €46.5 million to €50.5 million

- Net asset value (NAV) per share expected to reach previous year's level

Business performance in the current financial year will be largely influenced by the company's acquisition activities and the reinvestment of the liquidity generated by last year's disposal of properties that were no longer consistent with strategy. The timing and volume of possible property acquisitions, and the additional rental income that results from them, will affect both the company's earnings and its revenue.

Furthermore, operating earnings (FFO) will similarly be affected by higher maintenance expenses, in particular in connection with the implementation of the secondary use concepts at the former Real sites in Celle and Gießen. The higher expenses are partially due to the postponement of activities originally planned for the 2021 financial year.

Further information on the assumptions and key factors taken into account in the guidance can be found in the forecast report in the 2021 annual report, which is available to download on the company's website at https://www.hamborner.de/en/investor-relations/financial-reports.html.

OUTLOOK

Given the successful disposal of the vast majority of its portfolio of high-street retail properties, HAMBORNER intends to focus more on its growth trajectory again and to increase the size of its portfolio to around €2.0 billion in the medium term. In line with the company's sustainability strategy, it still plans to mainly invest in high-quality office and local supply retail properties with an average annual acquisition volume of around €100 million.

KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 31 DECEMBER 2021

  2021 2020 Change
Income from rents and leases €84.4m €88.2m -4.3%
Operating result €31.8m -€0.9m n/a
Profit for the period €54.3m -€9.3m n/a
thereof income from the disposal of properties €36.4m €7.1m n/a
Funds from Operations €53.1m €55.6m -4.5%
Funds from Operations (FFO) per share €0.65 €0.69 -5.4%
REIT equity ratio 61.0% 54.5% +6.5%-points
Loan to Value (LTV) 41.3% 44.5% -3.2%-points
EPRA Net Asset Value (NAV) €984.9m €890.7m +10.6%
EPRA Net Asset Value (NAV) per share €12.11 €11.05 +9.6%
EPRA Net Tangible Assets (NTA) €984.4m €890.2m +2.4%
EPRA Net Tangible Assets (NTA) per share €12.10 €11.05 +9.5%
Fair value of property portfolio €1,604.0m €1,624.8m -1.3%
EPRA vacancy rate 2.0% 1.9% +0.1%-points
WALT 6.1 years 6.3 years -0.2 years
 

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 at established locations as well as attractive local supply properties as large-scale retail assets, retail parks and DIY stores 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 sustainably attractive dividend strategy 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

Christoph Heitmann
Head of Investor & Public Relations
Tel.: +49 (0)203 54405-32
Mail: c.heitmann@hamborner.de
Web: www.hamborner.de

DISCLAIMER

This press release has been issued by HAMBORNER REIT AG (hereinafter "HAMBORNER") solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of HAMBORNER ("forward-looking statements") that reproduce various assumptions regarding, e.g., results derived from HAMBORNER's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by HAMBORNER and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should therefore not be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. HAMBORNER accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. HAMBORNER does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. HAMBORNER is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.



17.03.2022 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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