HAMBORNER REIT AG starts 2023 with growth in revenue and earnings

PRESS RELEASE

HAMBORNER REIT AG starts 2023 with growth in revenue and earnings

• Solid operating performance in consistently challenging market environment
• Revenue still benefitting from indexation clauses
• Income from rents and leases rises by 6.3% to €22.2 million
• FFO grows 23.4% to €13.6 million
• Net asset value (NAV) per share at €12.03 (up 1.4% YTD)
• Confirmation of forecast for full-year 2023

KEY FIGURES FOR THE FIRST QUARTER OF 2023

Duisburg, 25 April 2023 –HAMBORNER REIT AG has continued the positive business performance of the previous year and achieved growth in revenue and earnings in the first quarter of 2023.

Income from rents and leases amounted to €22.2 million, up 6.3% compared to the same period of the previous year. In particular, the positive development was positively affected by contractually agreed rent adjustments as a result of the rise in inflation (indexation clauses). The resulting indexation effects amounted to 4.7% as at 31 March 2023 (like-for-like). Taking other effects into account, in particular a temporary vacancy in connection with the follow-on lease for the manage-to-core property in Mainz, rental income was up 3.9% year-on-year as at the end of the quarter (like-for-like).

Funds from operations (FFO) rose by around €2.6 million or 23.4% to €13.6 million in the first three months, with FFO per share of €0.17 (previous year: €0.14). Besides higher rental income, the increase essentially results from income in connection with the early termination of a lease for the manage-to-core property in Mainz.

The company’s financial position remains very comfortable. The REIT equity ratio was at a consistently high level of 60.4% as at 31 March 2023. The loan-to-value (EPRA LTV) ratio declined again to 38.2% as against the end of 2022.

PORTFOLIO DEVELOPMENT

There were no changes within the property portfolio in the first quarter of 2022. However, the market value of the portfolio increased slightly following the signing of the sale agreement for a retail property in Mosbach. The contractually agreed sale price was around €0.5 million higher than the market value at the time of the last appraisal. The resulting increase write-up caused the volume of the total portfolio value to rise slightly to €1,609.2 million as at the end of the quarter. The property is expected to be transferred to the buyer in the second quarter.

Net asset value (NAV) per share was up by around 1.4% as against the end of 2022 at €12.03 (€11.86).

OPERATING PERFORMANCE

While the economic environment is still subject to widespread uncertainty, the company continued the positive business performance of the previous year and achieved several successes in its letting operations in the first quarter.

Leases for rental areas of around 23,200 m² were signed in the first three months of the financial year (Q1 2022: around 17,400 m²), with office space accounting for around 75% of this figure. The full follow-on lease for the manage-to-core property in Mainz was a particular highlight. As a result of a temporary vacancy due to structural conversion work, the EPRA vacancy ratio of the total portfolio increased slightly to 3.3% as at 31 March 2023. Meanwhile, within the core portfolio, which currently accounts for around 96% of the property portfolio, the EPRA vacancy rate has been reduced to 0.9%.

The weighted average lease term (WALT) remained at a consistently high level of 6.5 years, while the term within the retail portfolio was 7.5 years as at 31 March 2023. In the office portfolio, WALT increased to 5.2 years as a result of successful letting activities.

OUTLOOK

With business progressing positively and in line with planning in the first quarter, the company is confirming its most recently published estimates for business performance over the remainder of the year and anticipates income from rents and leases of between €88.0 million and €89.5 million. Funds from operations (FFO) are expected to amount to between €50.0 million and €52.0 million, while net asset value (NAV) will be slightly below previous year’s level.

DIVIDEND & ANNUAL GENERAL MEETING

This year’s ordinary Annual General Meeting will be held in person in Mülheim/Ruhr on 27 April 2023. The Management Board and the Supervisory Board propose the distribution of a dividend on previous year’s level at €0.47 per share. Based on the current share price, this would translate into a dividend yield of around 6.6%. The dividend will be paid out on 3 May 2023.

KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 31 MARCH 2023

The full interim statement for the first quarter of 2023 is available for download at https://www.hamborner.de/en/financial-reports/.

ABOUT HAMBORNER REIT AG

HAMBORNER REIT AG 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 €1.6 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 central inner-city locations, district centres and highly frequented edge-of-town sites of 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.

CONTACT

Christoph Heitmann
Head of Investor & Public Relations
Tel.: +49 (0)203 54405-32
Mail: c.heitmann@hamborner.de
Web: www.hamborner.de

DISCLAIMER

This press release has been issued by HAMBORNER REIT AG (hereinafter "HAMBORNER") solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of HAMBORNER ("forward-looking statements") that reproduce various assumptions regarding, e.g., results derived from HAMBORNER's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by HAMBORNER and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should therefore not be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. HAMBORNER accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. HAMBORNER does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. HAMBORNER is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.