Stable business performance in the first half of the year in line with planning - confirmation of full-year forecast for 2024

PRESS RELEASE

HAMBORNER REIT AG: Stable business performance in the first half of the year in line with planning - confirmation of full-year forecast for 2024

• Continued solid operational business development
• Increase in rental income by 4.1% to EUR 46.7 million
• Rise in FFO by 0.7% to EUR 28.3 million
• Net asset value (NAV) per share at EUR 9.75 (-2.7% YTD)
• Confirmation of full-year forecast for 2024

BUSINESS FIGURES FOR THE FIRST SIX MONTHS OF 2024

Duisburg, 8 August 2024 - In a persistently challenging macroeconomic and sector-specific environment, HAMBORNER REIT AG has built on the positive operational business development from the previous year and recorded an increase in revenue and earnings in the first half of 2024.

Income from rents and leases amounted to EUR 46.7 million and was therefore 4.1% 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 as a result of inflation (index-linked rent increases). On a like-for-like basis, rental income in the first six months was up 2.7% on the same period of the previous year. Influenced by the rent increases, funds from operations (FFO) rose by 0.7% to EUR 28.3 million in the first half of 2024. FFO per share totaled EUR 0.35.

The company's financial situation remains comfortable. As of 30 June 2024, the REIT equity ratio remained at a high level of 54.1%. The loan-to-value ratio (EPRA LTV) increased to 45.1% compared to the end of 2023, in particular due to the dividend payment made in the second quarter of the year.

PORTFOLIO DEVELOPMENT

There were no changes to the property portfolio during the first half of 2024. The portfolio thus continues to consist of 67 office and retail properties. As of 30 June 2024, the company did not carry out a portfolio-wide revaluation in cooperation with an external appraiser.

Irrespective of this, fair value adjustments were made amongst others on the basis of new findings from sales and lease negotiations, for a total of five office and retail properties. Both decreases and an increase in market value were recorded, which on balance led to a slight decrease in the portfolio volume of EUR 7.8 million or 0.5%. The total volume of the property portfolio thus stood at EUR 1,463.2 million at the end of the first half of the year.

As a result of the dividend payment and value adjustments, the net asset value (NAV) per share declined by 2.7% compared to the end of 2023 (EUR 10.02) and amounted to EUR 9.75 as of 30 June 2024.

OPERATIONAL BUSINESS DEVELOPMENT

The company was also able to continue its positive development at an operational level. In the first six months of the financial year, contracts were concluded for rental space totaling around 25,000 m² (previous year: around 26,000 m²), with retail space accounting for around 62%. At approximately 84%, the retention rate was again at an extremely high level and illustrates the continued high level of satisfaction among existing tenants.

The average remaining term of leases (WALT) fell slightly in the first half of the year and stood at 6.1 years as of 30 June 2024, with the terms within the retail and office portfolios being 7.4 and 4.5 years respectively. The EPRA vacancy rate remained at a low level at 2.9%.

OUTLOOK

With business progressing positively and in line with planning in the first half year, the company is confirming the guidance for business performance over the remainder of the year published in its 2023 annual report and anticipates for the full year 2024 income from rents and leases of between EUR 91.0 million and EUR 92.5 million. Funds from operations (FFO) are expected to amount to between EUR 49.0 million and EUR 50.5 million.

Given the ongoing difficult conditions in the property transaction market, the company has again not included any purchases or disposals of properties in its forecast.

KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 30 JUNE 2024

The full half-year financial report 2024 is available to download from the Financial Reports section of the company’s website. Further information on the key performance indicators presented can be found in the Glossary.

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 €1.5 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 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 Relations, Financing & Corporate Communications
T: +49 (0)203 54405-32
M: info@ir.hamborner.de
W: 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.