HAMBORNER REIT AG / Key word(s): 9-month figures/Real Estate
HAMBORNER REIT AG: Successful third quarter of 2014 - Further progress in acquisitions and sales
- Income from rents and leases up around 4%
- Net profit for the period doubles,
- Acquisition of two properties in the pedestrianised zones of Siegen und Koblenz,
- Sale of a smaller commercial building in Kamp-Lintfort
Duisburg, 12 November 2014 - HAMBORNER REIT AG has had a successful first three quarters of 2014. Income from rents and leases the first nine months rose by 3.8% on the previous year's level to a total of EUR34.9 million. The vacancy rate is still at a low level of 2.4%. The result from the sale of investment property as at 30 September 2014 was EUR10.3 million after EUR350 thousand in the previous year and results from the sale of properties in Moers, Wuppertal, Hanover and Frankfurt in the first half of the year and in Berlin and Hamburg in the third quarter of the reporting year. The net profit for the period was up in the first three quarters of the year and more than doubled to EUR16.2 million (previous year: EUR7.7 million).
As part of its strategy of buying larger properties while at the same time selling smaller properties no longer consistent with strategy, HAMBORNER continued to successfully leverage market opportunities. Along with the addition of the property in Bad Homburg in the first quarter, in April of this year the purchase agreement for the "T-Damm Center" in Berlin was signed for around EUR16.4 million. The property is expected to be handed over at the end of 2015. Furthermore, the purchase agreement for an office property in Aachen with a purchase price of EUR26.9 million was signed in April. Ownership is expected to transfer at the start of 2015. After the end of the reporting period, at the start of October, the purchase agreement was also concluded for the acquisition of two retail properties in Koblenz and Siegen. The purchase price was EUR24.0 million and ownership transferred as at 31 October 2014. HAMBORNER has therefore so far signed purchase agreements for around EUR75 million in the current reporting year.
In terms of sales, the properties in Moers, Wuppertal, Hanover and Frankfurt were handed over to their respective owners from January to June. These were followed by two further properties in Berlin and Hamburg by 30 September 2014. In addition, 92,000 m² of undeveloped land was transferred to the buyer in August. The sale price was EUR256 thousand. Total proceeds of EUR23.2 million have been generated from sales in 2014, offset by residual carrying amounts of EUR12.7 million. Moreover, the agreement for the sale of a retail property in Kamp-Lintfort at a purchase price of EUR3.4 million was concluded in September. Ownership will transfer at the start of December.
The updated fair value of the developed property portfolio taking into account the above changes in the portfolio was EUR679.4 million as at the end of the quarter under review (31 December 2013: EUR691.8 million).
FFO was around EUR18.7 million or EUR0.41 per share in the first nine months. It was therefore up 0.6% on the previous year's level.
The Managing Board is standing by its basic estimates and forecasts regarding future business prospects as published in the 2013 annual report. The sale of smaller properties no longer consistent with strategy has been highly successful to date. However, the disposals of the properties described above have also meant corresponding declines in rental income, with the result that the rise in rental income for the year as a whole forecast at the beginning of the year is likely to be a little more moderate. According to current estimates and taking into account further acquisitions and sales, the Managing Board is aiming for growth of around 3% to 4%, with FFO for the current financial year to rise by a similar amount.
After the payment of the dividend of EUR0.40 per share in May, NAV amounted to EUR8.22 per share as at 30 September 2014 (EUR8.25 as at 31 December 2013). The company's financial situation remains comfortable. The REIT equity ratio is 53.0% and the loan-to-value (LTV) ratio 43.3%.
Key figures as at 30 September 2014
About HAMBORNER REIT AG
HAMBORNER REIT AG is a stock exchange-listed public limited company that today 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.
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|Company:||HAMBORNER REIT AG|
|Listed:||Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, Hannover, München, Stuttgart|
|End of News||DGAP News-Service|