DGAP-News: HAMBORNER REIT AG / Key word(s): Forecast
HAMBORNER REIT AG reports positive development in rental payments and publishes updated forecast for 2020 financial year
- Significant rise in incoming rent ratios since April 2020 - Rental payments almost at pre-crisis levels in July 2020
- Portfolio quality and proximity to tenants lead to high business model resilience
- Forecast income from rents and leases between €87 million and €88 million
- FFO on track for between €52 million and €54 million
- Expected market-related decline in NAV per share in a single-digit percentage range
Duisburg, 21 July 2020 - On 25 March 2020, in the face of growing uncertainty in connection with the outbreak of the COVID-19 virus and the repercussions for its tenants, HAMBORNER REIT AG withdrew its revenue and earnings forecast for the 2020 financial year. As a result of the crisis situation and taking into account the law passed to mitigate the consequences of the COVID-19 pandemic enacted in March 2020 which, among other things, allowed tenants to suspend rent payments without sanctions from April to June 2020, some tenants have temporarily reduced or suspended their payments over the last few months. In particular, these are retail tenants who were directly affected by the officially ordered closures.
The far-reaching restrictions on public life in the months from March to May and the associated impact on individual tenant groups notwithstanding, the HAMBORNER portfolio proved very robust. Across the portfolio as a whole, the share of rental payments (including ancillary costs and VAT) in April 2020 amounted to 89.8% of total monthly rent. In the months of May 2020 and June 2020, when the restrictions due to COVID-19 were gradually eased, the rent payment ratio rose quickly and significantly to 92.6% and 95.2% respectively of total rent. According to the latest information, the rent payment ratio for July is now at 97.5% of total rent, and thus almost back to pre-crisis levels. A key factor in this has been the especially intensive and trusting dialogue with HAMBORNER's tenants since the pandemic began, as is reflected by the many individual agreements since entered into to provide fair and equitable assistance for the tenants affected. Further information on this will be available when the results are presented for the first half of the year on 30 July 2020.
Taking this positive development into account, the company now feels that it is able to release an updated forecast for the current financial year. According to current projections, income from rents and leases will be between €87 million and €88 million in the 2020 financial year (previous year: €85.2 million). Funds from operations (FFO) are expected to virtually match the high level of the past financial year in a range between €52 million and €54 million (previous year: €54.3 million). Assuming an unchanged number of shares, the Management Board is anticipating a decline in NAV per share for 2020 in a single-digit percentage range. The reason for the decline is an expected change in the market value of the existing property portfolio.
The forecast for the year as a whole is subject to there being neither a significant tightening of the restrictions due to COVID-19 (such as another shutdown with our tenants being ordered to close) nor currently unforeseen insolvencies among the tenant base. The forecast also does not take into account the possible effects of acquisitions or disposals in the remainder of the year.
The Management Board and the Supervisory Board will soon review the proposal for the appropriation of profits from April 2020 and make shareholders a corresponding dividend proposal.
ÜBER DIE 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.
KONTAKT INVESTOR RELATIONS & PUBLIC RELATIONS
|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:||1098861|
|End of News||DGAP News Service|