9 February 2011 / 08:55

Corporate News

HAMBORNER REIT AG: Preliminary results figures confirm successful performance in 2010

HAMBORNER REIT AG / Key word(s): Preliminary Results/Final Results

09.02.2011 / 07:55

Press release

HAMBORNER REIT AG: Preliminary results figures confirm successful performance in 2010

- Income from rent and leases up approximately 11%

- Larger increase in operating result (FFO) of approximately 25%

- Purchase agreements with a volume of approximately EUR 150 million certificated

Duisburg, 9 February 2011 - HAMBORNER systematically pressed ahead with its strategy of profit-oriented growth in 2010 and can look back at a highly successful first year as a REIT. The strong operating performance in the past few years continued and is reflected in the significant year-on-year increases in many of the key results figures. According to the preliminary, unaudited figures for the annual financial statements, net rental income amounted to approximately EUR 22.1 million (previous year: EUR 19.9 million) - another double-digit rise of 11% (previous year: 14.2%). This was a result in particular of the new acquisitions in the past two years. The average vacancy rate remained at a low level, varying at around 2.5% (1.5% not including rent guarantees).

The operating result came to EUR 12.3 million after EUR 10.4 million in the previous year. This rise of around 18% is due in particular to the higher net rental income. The result before financing activities and taxes (EBIT) amounted to EUR 14.6 million, up approximately 34% on the previous year (EUR 10.9 million). The result from the disposal of properties of EUR 2.2 million, which significantly exceeded the previous year's value of EUR 0.4 million, made a positive contribution here. After deduction of the financial result and taxes, there was a profit for the financial year of around EUR 5.5 million, up roughly 8% on the previous year (EUR 5.1 million). Exit tax is already taken into account here. Having obtained REIT status means that the company is exempt from trade tax and corporation tax in future, but at the transition date it still had to identify the hidden reserves and subject them to an exit tax on a one-off basis.

As a key ratio for the operating performance, the FFO (funds from operations) saw a significant increase of roughly 25% to EUR 12 million (previous year: EUR 9.6 million). As at 31 December 2010, the FFO in relation to the number of shares which increased by 50% following the capital increase amounted to EUR 0.35 per share (previous year: EUR 0.42 per share with 22.77 million shares).

The company's net asset value (NAV) after the capital increase is EUR 8.80 per share, a decrease from the previous year's level of EUR 10.37 per share, chiefly due to the exit tax paid in the first half of 2010 and the attractive conditions for investors of the capital increase carried out in autumn 2010. However, the annual revaluation of the real estate assets by an external appraiser confirms the stability of the portfolio value. The total portfolio value rose by 22% to EUR 376 million as a result of the addition of new properties in 2010.

With cash assets of approximately EUR 83.6 million, a loan-to-value (LTV) ratio of 19.2% and a REIT capital ratio of 74.9% - considerably higher than the 45% required under the German REIT Act - the Managing Board members Dr. Rüdiger Mrotzek and Hans Richard Schmitz consider HAMBORNER REIT AG to be optimally equipped for further growth.

On the basis of the strong performance in 2010 and the positive outlook for 2011, with double-digit growth in net rental income expected again and stronger than proportionate FFO growth, the Managing Board intends - subject to approval from the Supervisory Board - to propose to the General Shareholders' Meeting on 17 May 2011 distributing a dividend of EUR 0.37 per share, despite the increased number of shares, and thus increasing the total dividend amount by 50%.

The company will publish the final figures on 29 March 2011.

Overview of key figures 2010 preliminary figures 2009 Change
Net rental income EUR 22.1 million EUR 19.9 million + 11%
EBIT EUR 14.6 million EUR 10.9 million + 34%
Profit for the financial year EUR 5.5 million EUR 5.1 million + 8%
REIT capital ratio 74.9% 67.1% + 7.8 percentage points
Loan to value (LTV) under EPRA 19.2% 22.9% - 3.7 percentage points
Funds from operations EUR 12.0 million EUR 9.6 million + 25%
Funds from operations (FFO) per share EUR 0.35 (*) / EUR 0.47 (**) EUR 0.42 -
Net asset value (NAV) per share EUR 8.80 EUR 10.37 - 15%
Dividend per share (***) EUR 0.37 EUR 0.37 +/- 0%

(*) with 50% increase in number of shares as compared to previous year
(**) with time-weighted number of shares in the financial year
(***) proposal to the AGM, subject to approval from the Supervisory Board


HAMBORNER REIT AG is a listed public limited company that now 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 solid portfolio of properties distributed throughout Germany. Attractive retail trade spaces in key city centre locations in 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 doctors' surgeries.

The company also owns approximately 2.4 million m² of undeveloped land, located predominantly in Duisburg North and in the adjacent municipalities of Dinslaken and Hünxe.

HAMBORNER REIT AG stands out due to many years of experience in the property and capital market, its lean and transparent corporate structure and its particular proximity to the tenants. The company is a registered Real Estate Investment Trust (REIT) and benefits at company level from exemption from corporation and trade tax.

Investor Relations:

Sybille Albeser
Tel.: +49 (0)203 54405-32
Fax: +49 (0)203 54405-49
E-mail: s.albeser@hamborner.de
Web: www.hamborner.de

End of Corporate News

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111495  09.02.2011

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