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DGAP-News: HAMBORNER REIT AG / Key word(s): Quarter Results/Acquisition
HAMBORNER REIT AG: Business performance remains stable in first quarter of 2021
- Rental income on previous year's level at €21.8 million
- FFO declines to €12.7 million (down 4.6%) due to pandemic
- Net asset value (NAV) per share of €11.26 (up 1.9%)
- Successful progress in portfolio expansion and optimisation
- Strong letting performance and consistently extremely low vacancy rate
KEY FIGURES FOR THE FIRST QUARTER OF 2021
Duisburg, 27 April 2021 - HAMBORNER REIT AG has continued the positive business performance of the previous year and enjoyed a stable revenue development in the first quarter. Income from rents and leases reached the level of previous year's first quarter and amounted to €21.8 million. Funds from operations (FFO) decreased by around €0.6 million or 4.6% to €12.7 million in the first three months. The decline is essentially related to adjustments on rent receivables in connection with possible defaults due to COVID-19 and retroactive debt waivers for tenants hit especially hard by the pandemic. Furthermore, the result is affected by an increase in personnel expenses. Despite this, the company's financial and liquidity situation remains very comfortable. The REIT equity ratio was 55.6% as at 31 March 2021 and the loan-to-value (LTV) ratio 44.0%.
Six further High-Street retail properties that were sold in the second half of 2020 were transferred to their respective buyers during the first quarter of 2021.
Ownership of the property acquired in Mainz was transferred at the end of March 2021. The gross initial yield of the investment is 7.0%. Currently fully let for a period of around three years, the office property has substantial value potential that will be realised as part of the "manage to core" approach, on the basis of a comprehensive modernisation and re-letting concept as well as in line with HAMBORNER's ESG strategy.
Taking into account the disposals in the first quarter and the addition of the property in Mainz, HAMBORNER had a portfolio of 75 properties with a total value of €1.621 billion as at 31 March 2021. Net asset value (NAV) per share was €11.26, around 1.9% higher than at the end of fiscal year 2020 (€11.05).
The company systematically continued to grow its portfolio in recent weeks, and yesterday signed the purchase agreement for a further office property in Münster.
This property is a project development that was acquired in an off-market transaction and is located at the growing "Dreieckshafen" office site. It was built using CO2-reducing methods and has a rental area of around 6,300 m², of which approximately 80% has already been let to anchor tenants of good credit standing. Currently, the average term of the leases is around 7.5 years.
The purchase price is around €23.9 million. The gross initial yield is 4.5%. Ownership of the property will be transferred immediately after the property has been completed, provisionally at the end of 2021.
As part of its ongoing portfolio optimisation in the first quarter of 2021, the company signed an agreement for the sale of two High-Street properties in Bad Homburg with a sales volume of around €27.1 million.
In addition, three further sales agreements with a cumulative transaction volume of €41.4 million have been signed in March and April 2021. The properties are a centrally located retail centre in Fürth, a smaller wholesale property in Villingen-Schwenningen and mixed-used office and retail property in Hamburg. The properties were sold in line with the expected location and letting perspective in conjunction with the company's active portfolio management approach.
On average, the contractually agreed purchase prices for the five properties sold were around 7.7% higher than their fair values as determined by the most recent expert appraisal. The properties are expected to be transferred to their buyers in the course of the second quarter.
Despite the consistently lower overall take-up on the letting markets, the company has had a number of successes in its letting operations since the start of the year, including renewing the lease with one of its biggest office tenants in O3 property in Cologne.
Regarding the leases up for renewal in 2021, follow-on leases have already been signed for around 78% of the expiring lease volume. The company is also continuing to benefit from the high level of satisfaction among its existing tenants, as reflected by its recent retention rate of more than 80%.
Thanks to successful letting activity, the average remaining term of the leases (6.4 years) and the occupancy rate (98.3% according to the EPRA definition) remained at a high level as at 31 March 2021.
CURRENT BUSINESS PERFORMANCE
In the current market environment, HAMBORNER is continuing to benefit from its stable and diversified portfolio and its high share of tenants of good credit, particularly in the area of food retail.
As a result of the ongoing lockdown, individual tenants affected by closures are still curtailing or have suspended their rent payments. Across the portfolio as a whole, the ratio of incoming rent payments (including ancillary costs and VAT) was 95.8% in April. The rent collection rate in the period from January to April 2020 is thus 94.7% on average. Depending on the duration and extent of the official restrictions, the company anticipate that a number of tenants will still not be able to (fully) honour their payment obligations. HAMBORNER is continuing its dialogue with the tenants concerned HAMBORNER and is confident of finding mutual and fair solutions.
KEY FINANCIAL AND PORTFOLIO FIGURES AS AT 31 MARCH 2021
The full interim statement for the first quarter of 2021 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 €1.6 billion. The portfolio focuses on modern office properties at established locations as well as local supply properties as large-scale retail assets, retail parks, DIY stores and attractive high street properties 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.
27.04.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
HAMBORNER REIT AG
Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
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