DGAP-News: HAMBORNER REIT AG / Key word(s): Forecast
HAMBORNER REIT AG publishes guidance for 2021 financial year
- Forecast income from rents and leases between €82 million and €86 million
- FFO on track for between €45 million and €50 million
- NAV expected to be roughly on previous year's level
- Portfolio optimisation to continue
- Forward-looking investments at established retail park locations
- Dividend proposal likely in line with previous year
Duisburg, 1 February 2021 - The Management Board of HAMBORNER REIT AG today made its first estimates for business performance in the current 2021 financial year and has published corresponding guidance.
According to current expectations, income from rents and leases is set to be between €82 million and €86 million (previous years' guidance: €87-88 million). Funds from operations (FFO) are expected to amount to between €45 million and €50 million in the 2021 financial year (previous years' guidance: €52-54 million). Net asset value (NAV) is expected to be at about the same level as the previous year. At present, this forecast is still subject to uncertainties that to a substantial extend stem from non-recurring effects anticipated during the fiscal year.
The uncertainty is due firstly to the possible impact of the coronavirus pandemic on the company's revenue and earnings situation. Given the current developments in connection with the pandemic and the associated nationwide lockdown since the middle of December 2020, at this time the Management Board is assuming that individual tenants affected by closures may curtail or suspend their rent payments moving ahead, despite the continuing high overall stability of the portfolio. Depending on the extent and duration of restrictions, and on the possible tenant insolvencies as a result, a negative impact is anticipated on the company's revenue and results of operations.
Another factor is the ongoing portfolio optimisation, which is set to continue in the 2021 financial year as well. In particular, the company's strategy involves the gradual disposal of high street retail properties. Following the successful sale of eleven properties in multiple transactions over the second half of 2020, the company intends to keep up its related marketing activities as 2021 progresses. A temporary decline in rental income is assumed depending on the progress made in the disposal of properties and the timing of the intended reinvestment of the sale proceeds. Furthermore, in some cases the planned property sales may entail non-recurring expenses - the exact amount of which cannot be reliably estimated at the current time - to pay off loans. Simultaneously, the company is striving to optimise the timing of the intended purchases and sales over the year as regards their effect on revenue and earnings.
Also, in view of the announced restructuring of the hypermarket group Real, the company is proactively exploring alternative uses for these rental spaces. Thanks to the high quality of the three locations in the portfolio with space let to Real, and the expertise of internal asset management, the company has already succeeded in identifying potential new tenants and has initiated early negotiations for the possible subsequent letting of the space in question. To ensure that the overall attractiveness of the properties remains high and to tap the potential from subsequent letting, investment expenses are anticipated in the current financial year, though their amount cannot be reliably quantified at the present time. Depending on how negotiations proceed, a corresponding earnings effect is expected in the current financial year.
Taking into account the business development in 2020 and the guidance for the fiscal year 2021, the Management Board and the Supervisory Board intend to propose the payment of a dividend to this year's Annual General Meeting, which is expected to be at the level of the dividend distributed last year.
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 profitable office properties 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 sustainable dividend policy 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.
01.02.2021 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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