5 February 2015 / 09:00

Corporate News

HAMBORNER REIT AG: Provisional figures for 2014: Rise in earnings and increase in net asset value

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

2015-02-05 / 08:00

HAMBORNER REIT AG - Provisional figures for 2014: Rise in earnings and increase in net asset value

- Rental and leasing income up 3.5%

- Growth in FFO of 3.2%, NAV rises 5.1%

- Earnings for year double

Duisburg, 5 February 2015 - Provisional earnings figures have confirmed a successful 2014 financial year. According to provisional annual financial statement figures that have not yet been audited, rental and leasing income amounted to EUR46.8 million for 2014, an increase of 3.5% as against the previous year (EUR45.2 million). The average vacancy rate remained at a very low level of 2.5% (2.3% including rent guarantees). EBIT amounted to EUR30.6 million, around 47% higher than in the previous year (EUR20.8 million). After deducting net financing costs, the net profit for the year amounted to around EUR17.1 million - double the figure for the previous year (EUR8.5 million) thanks largely to the disposals in 2014.

The key indicator of operating performance and the company's controlling system, FFO (funds from operations) amounted to EUR24.6 million for 2014 (previous year: EUR23.8 million). This corresponds to FFO per share of EUR0.54 (previous year: EUR0.52). The increase as against the previous year of 3.2% is due in particular to higher rental income as a result of property acquisitions in 2013 and 2014. The company's net asset value (NAV) per share is EUR8.67 and therefore up 5.1% on the previous year (EUR8.25 per share). The reason for the growth in NAV, in addition to the rise in FFO, is the remeasurement of the property portfolio, which was worth around EUR717 million as at the end of the year. The changes in market value ("like for like") amounted to a net positive figure of EUR12.4 million against previous year. This corresponds to rise in the value of the portfolio of 1.9%.

Investment in the 2014 financial year amounted to approximately EUR32 million. The company was able to acquire three new properties for its portfolio in Bad Homburg, Siegen and Koblenz, and also to sign purchase agreements for the job centre in Aachen and the T-Damm Center in Berlin, with an additional volume of roughly EUR46 million. The new job centre in Aachen built in 2014 is expected to be transferred in the first quarter of the current year of 2015. The extensive new construction and conversion work in the T-Damm Center is scheduled for completion in 2015. Ownership is expected to transfer at the end of the year.

2014 was extremely successful in terms of the sale of smaller properties with intensive management requirements. Thus, the result from the disposal of properties was EUR10.7 million as at 31 December 2014 after EUR0.4 million in the previous year, and was essentially due to the sale of seven properties in Moers, Wuppertal, Hanover, Frankfurt, Berlin, Hamburg and Kamp-Lintfort in addition to the sale of 92,000 square metres of undeveloped land. Furthermore, the sale of a smaller property in Düren was notarised shortly before the end of the year. However, the property will not transfer until the end of 2015. The administrative capacity that has been freed up as a result of the sales can now be effectively put to work elsewhere in the portfolio, as the annual rental income of around EUR1.8 million on the properties sold was offset by 20 commercial and 26 residential area agreements with intensive management requirements.

The company's financial position remains very healthy. Cash and cash equivalents amounted to EUR10.4 million (previous year: EUR28.2 million). The loan-to-value (LTV) ratio is 43.3% (previous year: 43.7%). The REIT equity ratio of 53.1% is also still well in excess of the 45% required under the German REIT Act.

In light of the consistently good business performance in 2014, the Managing Board intends - subject to the approval of the Supervisory Board - to propose to the Annual General Meeting on 7 May 2015 a dividend of EUR0.40 per share. Based on the price of shares as at the end of the year of EUR8.12, this means a dividend yield of 4.9%. The company will publish its final figures on 25 March 2015.

Overview of key figures
preliminary figures
Income from rents and leases EUR46.8 million EUR45.2 million +3.5%
EBIT EUR30.6 million EUR20.8 million +47%
Net profit for the year EUR17.1 million EUR8.5 million +101%
REIT equity ratio 53.1% 52.5% 0.6 percentage points
Loan-to-value (LTV) 43.3% 43.7% -0.4 percentage points
Funds from operations EUR24.6 million EUR23.8 million +3.2%
Funds from operations (FFO) per share EUR0.54 EUR0.52 +3.2%
Net asset value (NAV) EUR394.5 million EUR375.3 million +5.1%
Net asset value (NAV) per share EUR8.67 EUR8.25 +5.1%
Dividend per share (*) EUR0.40 EUR0.40 +/-0%

(*) Proposal to the AGM, subject to the approval of the Supervisory Board



HAMBORNER REIT AG is a stock exchange-listed public limited company that exclusively operates in the property sector and is positioned as a portfolio holder for high-yielding commercial properties. The company has sustainable rental incomes, with a nationally-dispersed substantial property portfolio as its foundation. Attractive retail trade spaces in key town centre sites of 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 spaces for medical practices.

HAMBORNER REIT AG stands out due to its many years of experience in the property and capital market, its lean and transparent corporate structure as well as its special proximity to the tenants. Since February 18, 2010 HAMBORNER has been a registered Real Estate Investment Trust (REIT) and benefits at company level from exemption from corporation and trade tax.


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

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