Key Investment Highlights
Increasing portfolio quality
We identify locations with potential. That is why we mainly focus on medium-sized towns, particularly in western and southern Germany. However, they should have at least 60,000 inhabitants. All our properties are carefully selected and examined before purchase. Our portfolio consists of quality properties with a volume of up to EUR 100 million in central locations. We also consider ourselves to be well positioned with the blend and risk mix of our portfolio. Measured in terms of rental income, we have a fairly even split between office properties, high-street properties and large-scale retail properties.
Strong asset und portfolio management
HAMBORNER has grown significantly in the last few years. We have expanded our portfolio in the last ten years to a volume of around €1.45 billion, while constantly maintaining a very high letting rate. Of course, that is only possible with reliable tenants of very good credit standing as well as medium-term and long-term leases.
Enhancing efficiency, increasing cash flow and dividend per share
However, this growth rate was not an end in itself. With a moderate increase in personnel costs and administrative expenses combined with a considerable rise in rental income, we have considerably reduced our operating costs ratio and sharply increased our margin. By doing this, we have made optimum use of the economies of scale available to us in recent years, resulting in balanced cost structures in the company.Stable, solid and reliable – that also applies to our dividend policy. Our strategy has always been to avoid reducing the dividend per share and then increasing it from time to time. In this respect, we pay special attention to the development of FFO, which illustrates our company‘s long-term operating earnings power. We intend to maintain our reliable dividend policy in the future and not reduce the dividend per share even in years when there is a capital increase.
Solid financial situation
We are also well-placed on the financing side. The REIT equity ratio as at 30 September 2018 amounts to 55.5% and the loan-to-value ratio (LTV) is 43.7%. The current average financing costs are 2.2%.
Capital markets track record
As a listed company since 1954 , since 2011 represented in the S-DAX, the HAMBORNER REIT AG has many years of experience in capital markets and was able to increase its visibility in recent years again.