DGAP-News: HAMBORNER REIT AG / Key word(s): Preliminary Results/Forecast
HAMBORNER REIT AG reports record result - Preliminary figures show successful 2019 financial year with further growth in revenue and earnings
- Income from rents and leases: +2.1%
- FFO: +3.1%
- NAV per share: +7.4%
- Dividend increases to €0.47 per share
- Forthcoming property transfers to ensure further growth in 2020
SUCCESSFUL 2019 FINANCIAL YEAR
Duisburg, 5 February 2020 - HAMBORNER REIT AG has enjoyed another successful financial year according to the preliminary and unaudited figures published today. Income from rents and leases amounted to €85.2 million in the 2019 financial year, up by €1.8 million or 2.1% on 2018. The operating result amounted to €33.3 million (previous year: €32.8 million). The net profit for the year was €17.9 million, down on the previous year's level (€19.4 million) on account of the lower result from the sale of investment property.
The vacancy rate including agreed rent guarantees remained at a very low level of 2.0% (previous year: 1.3%). Funds from operations (FFO), the key operating earnings indicator, rose by 3.1% last year to €54.3 million (previous year: €52.7 million). FFO per share increased accordingly to €0.68, thus bettering the previous year's record figure by a further two cents. The targets for revenue and income for the 2019 financial year were therefore met in full and, in the case of FFO, even surpassed. The company's financial situation remains very comfortable. The loan-to-value (LTV) ratio was 42.4% as at 31 December 2019 (previous year: 42.5%). The REIT equity ratio of 57.3% (previous year: 56.4%) was still well in excess of the 45% required under the German REIT Act.
The performance of the property portfolio was also positive in 2019. The annual revaluation of the property portfolio revealed a like-for-like increase in value of €48.9 million or 3.2%. The company invested a total amount of €29.2 million in two local supply properties in Bamberg and Lengerich in the past financial year, which also created value added. The total fair value of the two properties was €30.1 million as at the end of the year, and therefore €0.9 million more than the properties' purchase prices. Furthermore, a smaller high street property in central Leverkusen no longer consistent with strategy was sold in 2019. The sale price was €1.6 million. Taking into account the acquisitions and disposals, and the increased fair value of the properties already held, the total value of HAMBORNER's portfolio is €1,598 million as at 31 December 2019 (previous year: €1,517 million). NAV per share as at the end of the year was €11.59 and therefore up 7.4% on the previous year's level (€10.79 as at 31 December 2017). The positive NAV development highlights the quality of the portfolio of office and local suplly properties.
In light of the consistently positive business performance, the company intends to propose to the Annual General Meeting on 6 May 2020 to increase the dividend for the 2019 financial year from 46 cents to 47 cents per share. This would mark an increase of 2.2% as against the previous year and a dividend yield of 4.8% based on the share price at the end of 2019. In the coming years as well, the company intends to continue its sustainable and dependable dividend policy, and to increase its distribution from time to time.
Ownership of the newly built office property in Neu-Isenburg transferred to the company on 1 January 2020. The future annualized rental income will amount to around €0.9 million. Also, two further office project developments in Bonn and Aachen were acquired for an investment volume of €51.1 million. These will be completed and transferred to HAMBORNER's portfolio in the first quarter of 2020. Rental income will rise by a further €2.7 million p.a. following the addition of the two properties.
As a result of these property transfers in the first quarter, the company is assuming that business performance will continue to progress well in 2020. According to current forecasts, income from rents and leases will grow by around 3%. FFO, the key operating performance indicator, is expected to match the previous year's record level. This forecast does not take into account other acquisitions or disposals not yet specified further. The remaining scope for acquisitions of approximately €130 to €150 million available at this time gives the company the potential for further acquisitions that would have a positive effect on rental income and the operating result.
The company will release its final figures for 2019 when it publishes its annual report on 26 March 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 more than €1.5 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
|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:||968013|
|End of News||DGAP News Service|