PRESS RELEASE

HAMBORNER REIT AG continues business performance in line with planning in third quarter – Further confirmation of forecast for full year 2022

• Reliable and stable business performance in a difficult market environment
• Rental income of €63.2 million (-1.1% YOY) and FFO of €37.3 million (-11.9% YOY)
• Net asset value (NAV) per share of €12.08 (- 7.8% YOY)
• Further increase in WALT and occupancy rate
• Confirmation/further refinement of forecast for full year 2022

KEY FIGURES AS AT 30 SEPTEMBER 2022

Duisburg, 10 November 2022 – On a consistently difficult general economic landscape, HAMBORNER REIT AG has continued its business performance as planned in the first nine months of 2022.

Despite the disposal of numerous properties in line with strategy over the past twelve months, rental income amounted to €63.2 million and was thus only 1.1% lower than the previous year’s level. In particular, the development in rental income was positively affected by contractually agreed rent adjustments as a result of the rise in inflation (indexation agreements).

Funds from operations (FFO) decreased by 11.9% year-on-year to €37.3 million in the first nine months. FFO per share was €0.46. The decline was essentially due to higher expenses for scheduled maintenance and non-recurring other operating income in the same period of the previous year.

The company’s financial position remains very comfortable. The REIT equity ratio was at a consistently high level of 59.6% as at 30 September 2022. The loan-to-value (LTV) ratio was 41.1%.

PORTFOLIO DEVELOPMENT

In conjunction with its ongoing portfolio expansion, two further high quality, large-sale retail properties with long-term leases in place – DIY stores in Freiburg and Kempten – were transferred to the company’s portfolio over the course of 2022. At the same time, short-term strategic sales activities were wrapped up with the disposal of three high-street retail properties.

HAMBORNER had 66 properties with a total value of €1.638 billion as at 30 September 2022. Despite the distribution of a dividend of €0.47 per share during the year, net asset value (NAV) per share has been stable over the course of the year and, at €12.08 at the end of the third quarter, matched its level at the end of 2021 (€12.11). It was up significantly by 7.8% as against 30 September 2021.

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 first nine months of the year, and contracts were signed for rental space of around 67,000 m².

Highlights here 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 quarter and was 2.1% as at 30 September 2022. Within the core portfolio, which accounts for around 96% of the total portfolio at the current time, the vacancy rate has now been reduced to just 1.2%.

The weighted average lease term (WALT) has increased significantly over the year to 6.7 years, breaking down as 7.8 years for the retail portfolio and 5.2 years for the office portfolio.

OUTLOOK

The company is standing by its recently published general assessments for business performance over the remainder of the year.

The company is still forecasting income from rents and leases of between €84 million and €85 million for 2022 as a whole and it is assuming additional positive indexation effects given the current dynamic inflation narrative.

Taking the most recent business developments into account, the company feels that it can further refine its expectations for operating earnings. By current estimates, FFO will amount to between €48 million and €49 million (previously: between €47 million and €49 million) as at the end of the year.

The net asset value (NAV) per share is expected to remain at around previous year’s level as at the end of 2022.

On the basis of this refined forecast for the year, the company intends to continue its reliable dividend policy and is therefore aiming for an attractive distribution for the 2022 financial year.

Despite the consistently difficult geopolitical and economic situation, particularly as regards the dynamic inflation and interest landscape, the company feels fundamentally positive about the 2023 financial year.

KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 30 SEPTEMBER 2022

The full financial statement for the third quarter of 2022 is available for download at https://www.hamborner.de/en/financial-reports/.

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: [email protected]
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.