DGAP-News: HAMBORNER REIT AG: Strong first half of the year - forecast raised for 2018

Press Release

HAMBORNER REIT AG: Strong first half of the year - forecast raised for 2018

- Significant growth in rental income (up 15.4%) and FFO (up 17.9%)

- Vacancy rate at 1.0%

- Forecast for rental income and FFO raised to between 10% and 12%

Duisburg, 9 August 2018 - HAMBORNER REIT AG has enjoyed a successful first half of 2018 and today publishes its half-year financial report. Income from rents and leases amounted to EUR41.3 million in the first half of the year and was therefore up by 15.4% year-on-year. The rental income from properties that were in HAMBORNER's portfolio in both the first six months of 2017 and the reporting period (like-for-like) also increased by 0.8%. Funds from operations (FFO), the key operating performance indicator, increased strongly by 17.9% to EUR26.1 million in the first six months. The vacancy rate, including agreed rent guarantees, was reduced further as against the previous year to 1.0% (previous year: 1.5%). Not including rent guarantees, the vacancy rate was 1.5% (previous year: 1.7%). NAV per share as at the end of the first half of the year was EUR10.00 and therefore up 6.2% on the previous year's level (EUR9.42 as at 30 June 2017).

The company's financial situation remains very comfortable. The REIT equity ratio was 54.5% and the loan-to-value (LTV) ratio was 44.5%. The company was able to reduce its average financing costs once again thanks to low interest rates. The average interest rate of loans, including those agreed but not yet utilised as at 30 June 2018, was 2.2% (previous year: 2.6%). The low interest rates also afford the company the opportunity to further reduce its average financing costs on future borrowing and refinancing. As the follow-up financing has already been agreed for the majority of loans expiring through to 2020, and the current favourable interest rate has thus been locked in, ongoing declines in average financing costs are anticipated in the years ahead.

Four further properties were added to the portfolio over the course of the first half of 2018, bringing the total to 78, including three state-of-the-art, high-quality retail properties in Cologne, Bonn and Düsseldorf right at the start of the year. The total purchase price was EUR43.7 million. The second quarter saw the transfer of ownership of another retail property with a separate office section in Darmstadt. The purchase price was EUR42.8 million. Following the additions in the first half of the year, the total value of the HAMBORNER portfolio was EUR1.45 billion as at 30 June 2018. The company still has scope for acquisitions of approximately EUR120 million at this time.

Given the positive business trend in the first half of the year, the company is raising its previous forecast for income from rents and leases and for operating earnings (FFO) for 2018 as a whole. The Management Board is now assuming an increase in income from rents and leases of between 10% and 12%, with growth in FFO of 10% and 12% as well, representing FFO per share of between EUR0.61 and EUR0.63.

Key figures as at 30 June 2018

About HAMBORNER REIT AG

HAMBORNER REIT AG is a stock exchange-listed public limited company that exclusively operates in the property sector and is positioned as a portfolio holder for high-yielding commercial properties. The company has sustainable rental incomes, with a nationally-dispersed substantial property portfolio as its foundation. Attractive retail trade spaces in key town centre sites of German cities and intermediate centres form the focal point of the portfolio. In addition, the property portfolio includes highly-frequented specialist stores and profitable office buildings, as well as spaces for medical practices.

HAMBORNER REIT AG stands out due to its many years of experience in the property and capital market, its lean and transparent corporate structure as well as its special proximity to the tenants. Since February 18, 2010 HAMBORNER has been a registered Real Estate Investment Trust (REIT) and benefits at company level from exemption from corporation and trade tax.

Investor- & Public Relations:

Christoph Heitmann
Tel.: +49 (0) 203 54405-32
Fax: +49 (0) 203 54405-49
E-Mail: c.heitmann@hamborner.de
Web: www.hamborner.de