HAMBORNER REIT AG: Preliminary figures confirm business performance in line with planning in 2022 – dividend proposal on previous year’s level – positive outlook for 2023

PRESS RELEASE

HAMBORNER REIT AG: Preliminary figures confirm business performance in line with planning in 2022 – dividend proposal on previous year’s level – positive outlook for 2023

• Reliable and stable business performance in continued difficult market environment
• Rental income of €85.0 million (+0.7% YOY) and FFO of €51.0 million (-4.0% YOY)
• Largely stable development of portfolio value (-2.0% like-for-like)
• Net asset value (NAV) per share of €11.86 (-2.0% YOY)
• Positive operating performance with increase in WALT and occupancy rate
• Dividend proposal on previous year’s level at €0.47
• Forecast for 2023 assumes further revenue growth and stable earnings situation

PROVISIONAL FIGURES AS AT 31 DECEMBER 2022

Duisburg, 9 February 2023 – HAMBORNER REIT AG has enjoyed another successful financial year according to the preliminary and unaudited figures published today. In a substantially changed macroeconomic environment characterised by considerable uncertainty, the company was able to successfully continue its business performance in line with planning and with largely stable development.

Regardless of the disposal of numerous properties in 2021/2022 in line with strategy, income from rents and leases increased by 0.7% compared with the previous year to €85.0 million in the past financial year, thereby reaching the upper end of the forecast range of €84.0-85.0 million.

Funds from operations (FFO) declined by 4.0% year-on-year to €51.0 million. FFO per share was therefore €0.63. The decline essentially resulted from higher expenses for scheduled maintenance as well as other non-recurring operating income in the previous year. Accordingly, FFO was higher than the most recent forecast of €48-49 million for the 2022 financial year. This was due in particular to higher other operating income in the fourth quarter and an increase in interest income.

The company’s financial position remains very comfortable. The REIT equity ratio was at a consistently high level of 59.6% as at 31 December 2022. The loan-to-value (EPRA LTV) ratio was 39.1%.

PORTFOLIO DEVELOPMENT

Another two high-quality, large-scale retail properties with long-term leases in place in Freiburg and Kempten were added to the company’s portfolio in 2022. The total investment volume was €48.6 million. At the same time, the short-term strategic sales activities were completed with the disposal of four high-street retail properties.

The company again commissioned the third-party expert Jones Lang LaSalle to appraise its property portfolio as at the end of 2022. On the basis of the reappraisal, the market value of the property portfolio (on a like-for-like basis) fell by €31.0 million or 2.0%.

Taking into account the reappraisal and the transactions completed, the HAMBORNER portfolio consisted of 66 properties with a total value of €1.608 billion as at 31 December 2022. Net asset value (NAV) per share declined slightly by 2.0% year-on-year to €11.86.

OPERATING PERFORMANCE

The company continued its reliable and stable business performance in terms of its operating activities as well. There were several successful accomplishments in letting operations in the 2022 financial year, and contracts were signed for rental space of around 85,000 m².

Highlights include follow-on leases and renewals with food retailers as well as new leases within the office portfolio.

Thanks to successful letting activities, the EPRA vacancy rate for both the office and retail portfolio was down as against the previous year and was 1.9% as at 31 December 2022. Within the core portfolio, which currently accounts for around 96% of the overall portfolio, the vacancy rate has been reduced to just 1.1%.

During the financial year, the weighted average lease term (WALT) increased to 6.5 years. As at 31 December 2022, the WALT was 7.6 years for the retail portfolio and 5.0 years for the office portfolio.

DIVIDEND

Despite the difficult conditions at present, the Management Board intends to reflect the business performance in line with planning in 2022 by proposing a dividend on previous year’s level of €0.47 per share at this year’s 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 to a dividend yield of approximately 6.2%.

The company currently plans to hold the Annual General Meeting on 27 April 2022 in person.

FORECAST FOR 2023

In view of the high quality of its property portfolio, its solid financial, earnings and liquidity situation and despite the sustained difficult economic conditions, especially the dynamic inflation and interest rate environment, the company is positive about its prospects for 2023.

Accordingly, it has issued its initial guidance regarding expected business performance in the current financial year:

• 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) slightly below previous year’s level

Among other things, business performance in the 2023 financial year will depend on the development of the property transaction market. The timing and volume of possible property acquisitions, and the resulting additional rental income, will affect both the company’s earnings and its revenue.

In preparing its guidance, the company took account of the current uncertainty affecting the transaction market and assumed a net investment volume from property acquisitions and disposals of around €50 million for the 2023 financial year. Transaction activity is expected to pick up in the second half of the year.

In addition, funds from operations (FFO) will be affected by uncertainty on the letting market, the continued dynamic development of inflation and the accompanying development of the interest rate environment in particular.

In this context, while earnings will be positively influenced by index-based rent increases, the 2023 financial year is expected to see longer marketing times for expiring leases and existing vacancies. Further cost increases are also anticipated, especially in the area of maintenance expenses.

PRELIMINARY KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 31 DECEMBER 2022

The company will release its final figures for 2022 when it publishes its annual report on 16 March 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 €1.6 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.