25 April 2018 / 07:00

Corporate News

HAMBORNER REIT AG: Successful start to 2018

DGAP-News: HAMBORNER REIT AG / Key word(s): Quarterly / Interim Statement/Quarter Results

25.04.2018 / 07:00
The issuer is solely responsible for the content of this announcement.

Press Release

HAMBORNER REIT AG: Successful start to 2018

- Income from rents and leases up 15.4%

- FFO rises by 7.6%

- Portfolio volume of more than EUR1.4 billion

- Vacancy rate at 1.0%


Duisburg, 25 April 2018 - After its positive performance in 2017, HAMBORNER REIT AG also had a successful start to the 2018 financial year and consistently pursued its strategy of yield-oriented growth.

Income from rents and leases amounted to EUR20.4 million in the first quarter of 2018, up EUR2.7 million or 15.4% on the same quarter of the previous year. Funds from operations (FFO) climbed by 7.6% in the first three months to EUR11.6 million. Net profit for the period amounted to EUR3.5 million. The company achieved further successes in its letting activities, enabling it to reduce the vacancy rate from 1.4% to 1.0% in the first quarter. The company's financial situation remains comfortable. The REIT equity ratio was 57.8% and the loan-to-value (LTV) ratio was 40.9%.

At the start of the first quarter, ownership of three high-quality retail properties in Cologne, Bonn and Düsseldorf was transferred to HAMBORNER. The purchase agreement for the properties was signed at the end of November. However, the conditions for transfer were quickly established with the result that the three properties will now contribute to rental income and FFO for the whole of 2018. The main tenant of the three properties is EDEKA. With a total purchase price of EUR43.7 million, annual rental income amounts to approximately EUR2.3 million. Following the additions at the start of the year, HAMBORNER had a portfolio of 77 properties with a fair value of over EUR1.4 billion as at 31 March 2018. NAV per share came to EUR10.27 as at the end of the quarter, up 1.2% on the level at the end of 2017 (EUR10.15).

The purchase agreement for another property in Darmstadt was signed during the first quarter. This is a large retail property with a separate office section on land located in an established, easily reached business park in Darmstadt-Nord. The retail space is leased to the supermarket chain REWE on a long-term contract. The office tenants include Herbalife and Alcan Systems. The purchase price of the property was EUR42.8 million. Taking into account outstanding maintenance in the amount of EUR1.6 million, the gross initial yield is 5.6%. The acquisition process was also completed rapidly, meaning that ownership of the property was already transferred to the company on 20 April 2018.

For 2018 as a whole, the Management Board is keeping to its general assessment regarding future business prospects as published in the 2017 annual report. Following the end of the first quarter of 2018, the Management Board is now projecting an increase in income from rents and leases at the upper end of the previously forecast range of 8% to 10%. A comparable percentage increase in operating earnings (FFO) is anticipated.

The Annual General Meeting of the company will be held on 26 April 2018 in Mülheim an der Ruhr. A 2-cent increase in the dividend to 45 cents per share, to be paid out on 2 May 2018, will be proposed to the shareholders for the 2017 financial year. Based on the share price as at 31 March 2018, this means a dividend yield of 4.8%.

Key figures as of 31 March 2018

  31 March 2018 31 March 2017
Income from rents and leases EUR 20.4 million EUR 17.6 million
Operating result EUR 7.2 million EUR 7.7 million
Net profit for the period EUR 3.5 million EUR 4.4 million
Funds from operations (FFO) EUR 11.6 million EUR 10.8 million
Funds from operations (FFO) per share EUR 0.15 EUR 0.14
  31 March 2018 31 December 2017
REIT equity ratio 57.8% 59.0 %
Loan-to-value (LTV) 40.9% 39.6%
Net asset value (NAV) per share EUR 10.27 EUR 10.15


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.

Investor Relations/Public Relations

Christoph Heitmann
Tel.: +49 203 54405-32
Fax: +49 203 54405-49
E-mail: c.heitmann@hamborner.de
Web: www.hamborner.de

25.04.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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