HAMBORNER REIT AG: Stable business performance and systematic implementation of revised corporate strategy
- Rental income of ?42.9 million in H1 (-2.1%)
- FFO rises 5.1% to ?28.4 million
- Successful continuation of portfolio expansion and optimisation
- Substantial letting successes and high rent collection rates underline quality of property portfolio and tenant structure
- Forecast for current financial year substantiated
KEY FIGURES FOR FIRST HALF OF 2021
Duisburg, 29 July 2021 - HAMBORNER REIT AG has enjoyed a stable business performance in the first half of 2021. Income from rents and leases amounted to ?42.9 million in the first six months, down by just 2.1% compared to the previous year's level. In particular, this was due to lower rents as a result of property sales and higher risk provisions for potential rent reductions in connection with the pandemic lockdown in the first half of 2021.
Funds from operations (FFO) climbed by 5.1% to ?28.4 million in the first six months. The increase essentially results from compensation paid in conjunction with the early termination of a lease and lower maintenance expenses. The company's financial and liquidity situation remains very comfortable. The REIT equity ratio was 57.5% as of 30 June 2021 and the loan-to-value (LTV) ratio 44.6%.
Under the portfolio optimisation programme announced in the summer of last year, HAMBORNER has sold 15 high-street retail properties in total with a cumulative transaction volume of ?109.5 million in the past twelve months, thereby reducing this section of the portfolio to currently six assets or 5.3% of the total portfolio volume. Moreover, three further retail properties with a transaction volume of ?41.9 million have been sold in conjunction with the active portfolio management approach.
Taking into account the 18 sales transactions, the total volume is now ?151.4 million, 4.4% higher than when the fair value was most recently determined. The annualised total rent of the properties amounted to around ?9.5 million. The sales will contribute to with around ?45.6 million.
Parallel to the property disposals, purchase agreements were signed for three attractive office properties in Münster, Mainz and Stuttgart in first half of 2021 as part of plans to grow the portfolio. The property acquired in Münster is currently being built at a fast-growing office location, and is expected to be transferred to the company's core portfolio by the end of the year.
In addition to the expansion of the core portfolio, two office properties with substantial potential for appreciation were acquired in Mainz and Stuttgart. This potential is to be leveraged in line with the manage-to-core approach.
Taking into account the property disposals in the first half of the year and the addition of the property in Mainz, HAMBORNER had a portfolio of 69 properties with a total value of ?1.549 billion as of 30 June 2021. Net asset value (NAV) per share was stable as against the end of 2020 at ?11.02 (?11.05).
Despite the consistently difficult overall situation on the letting markets and the occasionally significantly lower take-up, the company has had a number of successes in its letting operations since the start of the year, including the early renewal of the lease with its biggest office tenant in Cologne's O3 property until 2036. Furthermore, long-term follow-on leases have been signed for the majority of the space currently being used by the food retailer REAL at its locations in Mannheim, Celle and Gießen.
The letting performance amounted to around 96,000 m² in the first half of 2021 thanks to successful asset management activities. With the (EPRA) letting rate consistently high at 98.3%, the average remaining term of leases is 6.2 years.
CURRENT BUSINESS PERFORMANCE
Despite the officially ordered lockdown in the first half of 2021 and its associated impact on individual tenant groups of the company, incoming rent payments have remained at a consistently high level in the past few months. Across the portfolio as a whole, the rent collection rate (including ancillary costs and VAT) was 96.7% on average in the period from January to June 2021. Following the widespread lifting of pandemic restrictions at the end of the first half of the year, the ratio averaged 98.5% in July.
HAMBORNER is continuing its intensive dialogue with the tenants hit especially hard by the pandemic and is confident of finding further mutual and fair solutions.
Based on its business performance in the first six months of this year, the company feels able to substantiate its estimates for business development over the remainder of the year and to issue an updated forecast.
HAMBORNER is now forecasting income from rents and leases of between ?83 and ?85 million for 2021 as a whole (previously: between ?82 and ?86 million). Funds from operations are expected to be in the upper area of the previously communicated range at between ?48 and ?50 million (previously: between ?45 and ?50 million). Assuming a further stable development in the value of the like-for-like property portfolio, the company still anticipates that the NAV per share for 2021 will remain at around the previous year's level.
KEY FINANCIAL AND PORTFOLIO FIGURES AS AT 30 JUNE 2021
|Income from rents and leases
|Profit for the period
|Funds from Operations
|Funds from Operations (FFO) per share
||30 June 2021
||31 Dec 2020
|REIT equity ratio
|Loan to Value (LTV)
|EPRA Net Asset Value (NAV)
|EPRA Net Asset Value (NAV) per share
|EPRA Net Tangible Assets (NTA)
|EPRA Net Tangible Assets (NTA) per share
|Fair value of property portfolio
|EPRA vacancy rate
The half-year financial report is available for download at https://www.hamborner.de/en/investor-relations/financial-reports.html.
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 around ?1.5 billion. The portfolio focuses on modern office properties at established locations as well as attractive local supply properties as large-scale retail assets, retail parks and DIY stores 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 sustainably attractive dividend strategy 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.
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