HAMBORNER REIT AG: Annual financial statements confirm successful business performance with revenue and earnings growth in 2023 – dividend proposal of €0.48 per share – AGM on 25 April 2024

PRESS RELEASE

HAMBORNER REIT AG: Annual financial statements confirm successful business performance with revenue and earnings growth in 2023 – dividend proposal of €0.48 per share – AGM on 25 April 2024

• Successful operating performance in challenging market environment
• Rental income of €91.1 million (+4.6%) and FFO of €54.7 million (+7.2%)
• Net asset value (NAV) per share of €10.02 (-15.5%)
• REIT equity ratio of 55.1% and loan-to-value (LTV) of 43.5%
• Dividend proposal raised by 2.1% year-on-year to €0.48

BUSINESS PERFORMANCE IN 2023

Duisburg, 14 March 2024 – HAMBORNER REIT AG today publishes its annual report for 2023 following another successful financial year and is confirming the preliminary figures released on 8 February 2024.

Although the 2023 financial year was characterised by a high degree of uncertainty and numerous negative factors, the company successfully continued its business performance, achieving its revenue forecast in full and exceeding its earnings target. The company’s financial position also remained comfortable, with a REIT equity ratio of 55.1% and loan-to-value (LTV) of 43.5%.

In a challenging transaction environment, the company was able to add another two high-quality, large-scale retail properties with long-term leases to its portfolio in 2023. The valuation of the property portfolio was adjusted in an intra-year appraisal of the portfolio as well as the regular year-end appraisal, which resulted in its fair value being reduced by 10.5% (like-for-like). This impairment was particularly due to the change in the interest rate environment.

Taking the reappraisals and the transactions completed into account, HAMBORNER had 67 properties with a total value of €1.471 billion as at 31 December 2023. Net asset value (NAV) per share declined by 15.5% year-on-year to €10.02.

At an operating level, the company achieved considerable success in its letting activities in the 2023 financial year. As a result, both the occupancy rate (98.3% according to the EPRA definition) and the average remaining term of leases (6.4 years) remained at a consistently high level as at 31 December 2023.

DIVIDEND & ANNUAL GENERAL MEETING

Despite the still-difficult conditions and in line with the successful business performance in 2023, the Management Board intends to continue its reliable dividend policy and will propose a dividend increase of 2.1% year-on-year to €0.48 per share at this year’s Annual General Meeting. Based on the current share price, this would correspond to a dividend yield of around 7.4%.

The company’s Annual General Meeting will again be held in person on 25 April 2024. The agenda and 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

Given the high quality of its property portfolio and its solid financial, earnings and liquidity situation and despite the consistently difficult economic conditions, the company is still feeling fundamentally positive about its prospects for 2024. Accordingly, it is confirming its guidance published in connection with its preliminary results:

• Income from rents and leases: €91.0 million to €92.5 million
• Funds from operations (FFO): €49.0 million to €50.5 million

Given the ongoing uncertainty over further developments on the property markets, the guidance does not take further property acquisitions and disposals into account.

Further information on the assumptions and key factors taken into account in the guidance can be found in the forecast report in the 2023 annual report, which is available for download on the company’s website at https://www.hamborner.de/en/financial-reports/.

KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 31 DECEMBER 2023

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
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.