DGAP-News: HAMBORNER REIT AG / Key word(s): AGM/EGM/Dividend
HAMBORNER REIT AG postpones 2020 Annual General Meeting and makes dividend amount subject to reservation
- Postponement of Annual General Meeting in connection with global virus pandemic and resulting restrictions on public life
- Company makes dividend payment for 2019 financial year subject to reservation as a precaution
- Minimum distribution in accordance with German REIT Act of €0.18 per share
- Suspension or reduction of April payments by tenants in amount of €1.8 million or 19% of monthly total rent
- Liquidity situation still sound
POSTPONEMENT OF 2020 ANNUAL GENERAL MEETING
Duisburg, 7 April 2020 - In view of the current developments in connection with the spread of the SARS-CoV-2 virus, the Management Board of HAMBORNER REIT AG, in coordination with the Supervisory Board, has today resolved to postpone the Annual General Meeting planned to be held on 6 May 2020 until a later date in the second half of 2020.
Given the official restrictions on events still in place and the German government's more stringent prevention measures, it is no longer possible to hold the Annual General Meeting as planned on the originally intended date. Under the current risk situation, the health of our shareholders, employees and all service providers involved is our top priority. The company will announce a new date for the Annual General Meeting as soon as sufficient planning and performance certainty can be guaranteed.
In the interests of its shareholders and the customary, intensive sharing of information with all stakeholders, the company expressly intends not to take advantage of the opportunity for an exclusively online annual general meeting as allowed by legislation, and is still aiming to hold the event in person.
DIVIDEND PAYMENT FOR 2019 FINANCIAL YEAR
Owing to the postponement of the Annual General Meeting, the dividend will not be paid as intended on 11 May 2020 as this would require a corresponding resolution on the appropriation of profits by the Annual General Meeting. Given the general economic repercussions of the pandemic that can currently still be only partially surmised and the associated uncertainty regarding the company's business performance over the year as a whole, in connection with the postponement of the Annual General Meeting, the Management Board has resolved to make the amount of the dividend payment for the 2019 financial year subject to reservation for now. This decision has been made in line with the principle of business prudence and despite the fact that the company's financial and liquidity situation remains sound. The Supervisory Board has acknowledged and approved this precautionary measure. HAMBORNER REIT AG had originally planned to propose a dividend of €0.47 per share for shareholders at the Annual General Meeting (previous year: €0.46). As soon as the company is able to make a meaningful assessment of the actual economic impact of the crisis on future business developments, the Management Board and the Supervisory Board will review the appropriation of profits and prepare an updated dividend proposal for the new Annual General Meeting to be convened if necessary.
MINIMUM DISTRIBUTION OF €0.18 PER SHARE
The provisions of section 13(1) of the German REIT Act stipulate a mandatory distribution of 90% of the net income for the year generated in accordance with the German Commercial Code. HAMBORNER intends to comply with this obligation and to distribute a dividend of at least €0.18 per share to its shareholders. Prior to the new date of the Annual General Meeting and taking further business developments into account, the company will make a decision on the extent to which it can honour its original dividend proposal of €0.47 per share.
IMPACT ON CURRENT BUSINESS SITUATION
Regardless of the current global crisis, the company feels it is still very well positioned with its conservative business model and its profitable, diversified property portfolio. In the current market environment, HAMBORNER is benefitting in particular from its high share of tenants of good credit standing in systemically relevant areas, such as food retailers, who currently account for around a third of the company's total rental income. Other retail tenants not affected by closures, such as personal and household goods stores, chemists and DIY stores, contribute around 12% of rental income. Office properties, including medical care facilities, medical practices and public authorities, which currently generate around a third of rental income, are also largely being spared by official requirements. Space not affected by closures currently accounts for around 75% of total rental income.
A reliable estimate of the duration and extent of the restrictions on public life and the resulting consequences for the economic development of various tenants is not possible at this time. As a result of the current situation and taking into account the law passed to mitigate the consequences of the COVID-19 pandemic, which allows tenants to suspend rent payments without sanctions, HAMBORNER was contacted by approximately 180 tenants by 6 April 2020 regarding a provisional suspension or reduction of its rent payments. These are essentially retail tenants currently affected by the officially ordered closure of businesses. The resulting monthly rent volume amounts to around €1.8 million or 19% of total rent. HAMBORNER is engaged in a close dialogue with its tenants in this regard, and is working intensively on fair solutions for dealing with the current challenges.
The company's current financial and liquidity situation is still comfortable. HAMBORNER currently has liquidity of around €80 million at its disposal, comprising cash and loans that can be accessed at short notice under existing financing agreements. Furthermore, HAMBORNER REIT AG holds various unencumbered properties that can be used to generate additional funds if necessary. Agreements have already been entered into for property loans scheduled for refinancing in 2020. There are therefore no further financing requirements in this regard.
Regarding the leases ending in 2020, in the first quarter by the end of March, the company achieved a number of letting successes and signed follow-on leases for by far most of the space in question. The remaining share of leases expiring by the end of the financial year accounts for just around 1% of the total rental income of the company.
HAMBORNER will present its financial report for the first quarter of 2020, which will contain detailed information on future business developments, on 5 May 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 profitable 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.
INVESTOR RELATIONS & PUBLIC RELATIONS CONTACT
|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:||1017321|
|End of News||DGAP News Service|