HAMBORNER REIT AG continues stable and planned business development in the third quarter – specification of full-year forecast for 2024

PRESS RELEASE

HAMBORNER REIT AG continues stable and planned business development in the third quarter – specification of full-year forecast for 2024

• Solid operational business development in line with planning
• Rental income of EUR 69.8 million (YoY +2.8%) and FFO of EUR 41.8 million (YoY -1.0%)
• Net asset value (NAV) per share at EUR 9.91 (-1.1% YTD)
• Confirmation/specification of full-year forecast for 2024

BUSINESS FIGURES AS AT 30 SEPTEMBER 2024

Duisburg, 7 November 2024 - HAMBORNER REIT AG once again recorded a solid operational business development in line with planning in the third quarter of the current financial year.

Income from rents and leases amounted to EUR 69.8 million in the first nine months of the year and was therefore 2.8% higher than in the same period of the previous year. The company benefited in particular from the previous year's property acquisitions and further contractually agreed rent adjustments due to inflation (index-linked rent increases). On a like-for-like basis, rental income in the first nine months was up by 1.9% or around EUR 1.3 million on the same period of the previous year.

This was offset by lower income from the passed on ancillary costs and other operating income as well as items such as increased expenses for maintenance and personnel, which led to a slight decline in funds from operations (FFO) of 1.0% to EUR 41.8 million. FFO per share amounted to EUR 0.51.

The company's financial situation remains comfortable. The REIT equity ratio was at a consistently high level at the end of the quarter at 54.9%. Following an increase during the year as a result of the dividend payment in the second quarter, the loan-to-value ratio (EPRA LTV) fell to 44.4% as at 30 September 2024.

PORTFOLIO DEVELOPMENT

There have been no changes to the property portfolio to date during the course of 2024. The portfolio thus continues to consist of 67 office and retail properties.

As at 30 June 2024, fair value adjustments were made for a total of five office and retail properties, partly on the basis of new findings from sales and rental contract negotiations, which led to a slight net decrease in the portfolio volume of EUR 7.8 million or 0.5%.

As part of its active portfolio management, at the end of the third quarter, the company signed a contract for the sale of an office property in Hamburg (An der Alster 6), which recently contributed around EUR 0.3 million to annual rental income but was no longer considered to be in line with the strategy due to its size, age structure and sustainability standards. In a challenging transaction market environment, the company managed to achieve an attractive selling price of EUR 8.0 million, which was 27.0% above the most recently determined fair value. The property was reclassified in the balance sheet as at 30 September 2024, with the fair value being increased by the difference. The transfer of ownership is expected to take place at the end of the fourth quarter of 2024.

Taking into account the value adjustments during the year described above, the total volume of the property portfolio as at 30 September 2024 was 0.4% below the value at the end of 2023 at EUR 1,465.4 million. The net asset value (NAV) per share fell slightly by 1.1% compared to the end of 2023 (EUR 10.02) and stood at EUR 9.91 at the end of the third quarter.

OPERATIONAL BUSINESS DEVELOPMENT

The company was also able to continue its steady business development at an operational level. The weighted average lease term (WALT) fell slightly in the first nine months of the year and amounted to 6.0 years as at 30 September 2024, with the terms within the retail and office portfolios being 7.2 and 4.4 years respectively. The EPRA vacancy rate remained at a low level at the end of the quarter at 3.1%.

OUTLOOK

The company stands by its fundamental assessment of business development for the remainder of the year. Taking into account the forecast assumptions presented in the 2023 annual report and the operational business development in the first nine months of 2024, the company sees itself in a position to substantiate the revenue forecast issued at the beginning of the year and its assessment of the development of the operating result (FFO).

The company now assumes that income from rents and leases will be at the upper end of the previous forecast range at EUR 92.0 million to EUR 93.0 million (previously: EUR 91.0 million to EUR 92.5 million). The operating result is expected to amount to between EUR 50.0 million and EUR 51.0 million (previously: EUR 49.0 million and EUR 50.5 million).

KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 30 SEPTEMBER 2024

The full financial statement for the third quarter of 2024 is available for download at https://www.hamborner.de/en/financial-reports/. Further information on the key performance indicators presented can be found in the Glossary.

ABOUT HAMBORNER REIT AG

HAMBORNER REIT AG is a SDAX-listed public limited company that operates exclusively in the real estate sector and is positioned as a portfolio holder for high-yield commercial properties. The company generates sustainable rental income based on 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 central inner-city locations, district centers or highly frequented suburban locations in large and medium-sized German cities.

HAMBORNER REIT AG is characterized by its many years of experience in the real estate and capital market, its consistent and sustainably attractive dividend strategy as well as 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 Relations, Financing & Corporate Communications
Tel.: +49 (0)203 54405-32
Mail: info@ir.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.