HAMBORNER REIT AG: Annual financial statements confirm business performance in line with planning in 2022 – dividend proposal of €0.47 per share – outlook for 2023 remains positive

PRESS RELEASE

HAMBORNER REIT AG: Annual financial statements confirm business performance in line with planning in 2022 – dividend proposal of €0.47 per share – outlook for 2023 remains positive

• Reliable and stable business performance in a difficult market environment
• Rental income of €85.0 million (up 0.7% YOY) and FFO of €51.0 million (down 4.0% YOY)
• Net asset value (NAV) per share of €11.86 (down 2.0% YOY)
• Dividend proposal unchanged year-on-year at €0.47
• Forecast for 2023 assumes further revenue growth and stable earnings situation

BUSINESS PERFORMANCE IN 2022

Duisburg, 16 March 2023 – HAMBORNER REIT AG today publishes its annual report for 2022 following another successful financial year and is fully confirming the preliminary figures published on 9 February 2023.

Although the 2022 financial year was characterised by a high degree of uncertainty and numerous negative factors, the company successfully continued its business performance in line with planning, achieving its revenue forecast in full and exceeding its earnings target. The company’s financial position also remained very comfortable, with a REIT equity ratio of 59.6% and loan-to-value (EPRA NAV) of 39.1%.

The market value of the property portfolio was largely stable, declining by just 2.0% compared with the previous year (on a like-for-like basis) according to the annual external portfolio valuation. With regard to property valuation, negative effects from changes in interest environment were offset by positive effects from contractually agreed rent adjustments as a result of the rise in inflation (indexation clauses) and a further improvement in portfolio quality. Net asset value (NAV) per share declined slightly by 2.0% year-on-year to €11.86.

The company also continued its reliable and stable business performance in terms of its operating activities and achieved considerable success in its letting activities in the 2022 financial year. As a result, the EPRA vacancy rate for both the office and retail portfolio was down as against the previous year, amounting to 1.9% as at 31 December 2022. The average remaining lease term (WALT) increased to 6.5 years.

DIVIDEND & ANNUAL GENERAL MEETING

Despite the persistently difficult conditions, the Management Board will reflect the business performance in 2022 as described above by proposing a dividend on previous year’s level of €0.47 per year at the Annual General Meeting. With FFO per share amounting to €0.63, this represents a payout ratio of around 75%. Based on the current share price, this would translate into a dividend yield of around 6.6%.

Having been held solely in virtual form in the past three years, the company will return to holding the Annual General Meeting on 27 April 2023 in person so that it can further intensify the personal dialogue with its shareholders. The agenda with proposed resolutions as well as further information and documents will be published today on the company’s website at https://www.hamborner.de/en/general-shareholder-meeting.

OUTLOOK

In view of its solid financial, earnings and liquidity situation and despite the difficult economic conditions, especially the dynamic inflation and interest rate environment, the company remains positive about its prospects for 2023. Accordingly, it is confirming the guidance regarding expected business development which it published at the same time as its preliminary results:

• Income from rents and leases: €88.0 million to €89.5 million
• Funds from operations (FFO): €50.0 million to €52.0 million
• Net asset value (NAV) down slightly on previous year

The company continues to assume a net investment volume from property acquisitions and disposals of around €50 million for the 2023 financial year, with transaction activity expected to pick up in the second half of the year.

Further information on the assumptions and key factors taken into account in the guidance can be found in the forecast report in the 2022 annual report, which is available to download on the company’s website at https://www.hamborner.de/en/investor-relations/financial-reports.html.

KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 31 DECEMBER 2022

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 €1.6 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 & Public Relations
Tel.: +49 (0)203 54405-32
Mail: c.heitmann@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.