HAMBORNER REIT AG Conference Call Q1 2024
23 April 2024
Office property 'EUREF-Campus' Berlin
Key figures Q1 2024
€23.4m | €14.0m | €0.17 | ||
Rental income1 | FFO | FFO per share | ||
€10.193.0%
NAV per share | EPRA vacancy rate | |
6.3 years | 56.1% | |
WALT | REIT equity ratio | |
42.6%9.4x
LTV | Net debt/EBITDA2 | |
1 Affected by P&L reclassifications; includes tenant prepayments for property taxes and insurance (previously reported under 'income from incidental costs passed on to tenants')
2 Net financial debt (average last five quarters) in relation to EBITDA adjusted by result from sales (last twelve months) | 2 |
Rent development
Development of annualized rents (year-on-year)1
+€1.7m | -€0.01m | €89.7m | ||||||||||||||||||||
+€1.6m | 0.0% | |||||||||||||||||||||
€86.5m | ||||||||||||||||||||||
+1.9% | ||||||||||||||||||||||
+1.8% | ||||||||||||||||||||||
Annualized rents | Acquisitions | Indexation | Re-lettings/ | Annualized rents | ||||||||||||||||||
31 March 2023 | Vacancy change | 31 March 2024 | ||||||||||||||||||||
Rent development like-for-like(year-on-year)1 | ||||||||||||||||||||||
Asset class | Total portfolio | Investment approach | ||||||||||||||||||||
Retail | Office | Split | Core | Manage-to-Core | ||||||||||||||||||
Total rents | +0.9%-pts | +3.4%-pts | +1.9%-pts | +2.8%-pts | -17.1%-pts | |||||||||||||||||
Indexation effects | +1.6%-pts | +2.4%-pts | +1.9%-pts | +1.9%-pts | +3.2%-pts | |||||||||||||||||
Follow-up Leases / | ||||||||||||||||||||||
-0.9%-pts | -0.5%-pts | -0.7%-pts | -0.4%-pts | -6.8%-pts | ||||||||||||||||||
Step rents | ||||||||||||||||||||||
Vacancy changes | +0.2%-pts | +1.4%-pts | +0.7%-pts | +1.4%-pts | -13.5%-pts | |||||||||||||||||
1 Point-in-timecalculation (31 March 2024 vs. 31 March 2023); acquisitions and disposals excluded; rounding differences possible | 3 |
Funds from operations (FFO)
in k€ | Q1 2024 | Q1 2023 | Change | |
1 | Income from rents and leases1 | 23,445 | 22,730 | +3.1% |
Income from passed on costs1 | 2,804 | 3,124 | -10.2% | |
Operating expenses | -5,612 | -5,926 | -5.3% | |
2 | Maintenance expenses | -1,186 | -1,555 | -23.7% |
Net rental income | 19,451 | 18,373 | +5.9% | |
Administrative expenses1 | -419 | -501 | -16.4% | |
Personnel expenses1 | -1,768 | -1,654 | +6.9% | |
3 | Other operating income | 179 | 1,132 | -84.2% |
Other operating expenses | -493 | -529 | -6.8% | |
4 | Interest expenses | -3.404 | -3.826 | -11.0% |
5 | Interest income | 446 | 639 | -30.2% |
FFO | 13,992 | 13,634 | +2.6% | |
Capex | -336 | -671 | -49.9% | |
AFFO | 13,656 | 12,963 | +5.3% | |
FFO per share in € | 0.17 | 0.17 | +2.6% | |
AFFO per share in € | 0.17 | 0.16 | +5.3% | |
1 Affected by P&L reclassifications as part of preparation of interim statement
Comments
▪1 Increase in income from rents and leases mainly due to property additions and indexation effects;
Pro rata inclusion of tenant prepayments for ground taxes and property insurance previously recognized under income from passed on costs (+€0.6m in Q1 2024 and Q1 2023)
▪2 Expenses relate to ongoing minor maintenance and various smaller planned measures
Wide range of measures (including those postponed from previous year) currently being started/implemented
▪3 Previous year's number includes one-off effect from compensation payment for the early termination of a lease by tenant in Mainz
property (€0.8m)
▪4 Lower interest expenses mainly result from repayment of bonded loans (€12.5m) in March 2023
▪5 Interest income mainly results from overnight cash deposits; decrease relates to lower liquidity compared to Q1 2023
4
Portfolio key metrics as of 31 March 2024
Asset class | Total portfolio | Investment approach | |||||||
Retail | Office | Split | Core | % | Manage-to-Core1 | % | |||
Number of properties | 39 | 28 | 67 | 64 | 95.5% | 3 | 4.5% | ||
Fair Value | €836.5m | €634.5m | €1,471.0m | €1,425.8m | 96.9% | €45.2m | 3.1% | ||
Leased area | 393,250 m² | 229,343 m² | 622,593 m² | 595,987 m² | 95.7% | 26,606 m² | 4.3% | ||
Annualized rent | €51.2m | €38.5m | €89.7m | €86.5m | 96.4% | €3.3m | 3.7% | ||
Annualized rental yield | 6.1% | 6.1% | 6.1% | 6.1% | 7.3% | ||||
EPRA vacancy rate | 1.5% | 4.9% | 3.0% | 1.7% | 27.3% | ||||
WALT | 7.6 years | 4.6 years | 6.3 years | 6.4 years | 3.4 years | ||||
Like-for-like development 31 March 2024 to 31 March 2023 | |||||||||
Rents | +0.9%-pts | +3.3%-pts | +1.9%-pts | +2.8%-pts | -17.1%-pts | ||||
EPRA vacancy rate | +0.2%-pts | -0.7%-pts | -0.2%-pts | -0.7%-pts | +10.5%-pts | ||||
WALT | +0.1 years | -0.6 years | -0.2 years | -0.3 years | +0.3 years | ||||
- Overall stable development of portfolio KPIs, incl. WALT (6.3 years) and EPRA vacancy rate (3.0%)
- Slight increase in rental yields as a result of portfolio revaluations in the last year
5
Tenant base
Top-10tenants (as of 31 March 2024)
Tenant | Sector | Rent1 |
Sector distribution (as of 31 March 2024)
SectorRent1EDEKA Group | Food retail | 13.4% |
Kaufland Group | Food retail | 7.2% |
REWE Group | Food retail / DIY | 7.0% |
OBI | DIY | 6.7% |
Globus | Food retail / DIY | 4.4% |
Agency of unemployment | Authorities | 3.2% |
Barmer | Finance / Insurance | 2.7% |
Netcologne | IT / Communication | 2.0% |
ALDI | Food retail | 2.0% |
City of Mainz | Authorities | 1.9% |
Food
DIY
IT / Communication
Finance / Insurance
Authorities
Textiles
Education
Real Estate
Medical / Pharma
Others (<3.0%)
33.2%
11.4%
9.6%
7.2%
6.2%
4.6%
4.0%
3.6%
3.5%
16.7%
Total | 50.2% |
Retail | Office | |
- No changes in list of top-10 tenants compared to year-end 2023
- Food retail still accounts for on third of total annualized rents
1 % of annualized rents (including rent guarantees) | 6 |
Leasing situation
Weighted average lease expiry (as of 31 March 2024)
7.6 years | 6.3 years | |
4.6 years | ||
Retail | Office | Total |
Letting result Q1 2024
17,188 m² | 18,995m² | ||
21% | 26% | ||
79% | 74% | ||
1,767 m² | 20% | ||
80% | |||
New lettings | Contract extensions | Total | |
Retail | Office |
30,0% | Lease expiry schedule (as of 31 March 2024; in % of annual rents) | ||||||||||||||
25,0% | 3.4% | ||||||||||||||
20,0% | |||||||||||||||
15,0% | |||||||||||||||
10,0% | 7.8% | 5.0% | 6.7% | 4.1% | 22.0% | ||||||||||
0.4% | |||||||||||||||
5,0% | 1.1% | 0.8% | 6.5% | 4.7% | |||||||||||
5.4% | 5.9% | 7.7% | 3.0% | ||||||||||||
2.6% | 3.4% | 4.0% | 3.1% | ||||||||||||
0,0% | 2.2% | ||||||||||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | ||||||
Retail | Office | and later | |||||||||||||
- Continued good letting success with a total volume of around 19,000 m² - WALT remains at consistently high level of 6.3 years
- Reduced letting tasks in 2024 with only 1.9% of total rental income up for renewal
7
Financial situation
Expiration of financial liabilities (as of 31 March 2024)
1.8 %
19.9%
16.4%
13.3%
1.9%
15.6%
8.2%
12.4%
7.3%
3.1%
56.1%
REIT equity ratio
42.6%
LTV
9.4x
Net debt/EBITDA1
5.7x
EBITDA/Interest coverage
€697.7m
Financial liabilities
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 |
2.2% | 3.0% | 1.3% | 1.4% | 2.5% | 1.1% | 1.8% | 1.0% | 2.2% |
Bank Loans | Bonded Loan | Weighted average interest rate | ||||||
1 Net financial debt (average last five quarters) in relation to EBITDA adjusted by result from sales (last twelve months)
1.9%
Ø Cost of debt
4.0 years
Ø Maturity of debt
8
Outlook
Dividend
€0.48 per share | ~72% | |
Dividend proposal | Resultant FFO payout ratio | |
Guidance 2024
€91.0m - €92.5m | €49.0m - €50.5m | |
Rental income | FFO | |
Main influencing factors
+ Stable and reliable cashflows | - Uncertainties on letting markets | |
+ | Property additions 2023 | - Maintenance expenses (incl. cost shifting from 2023) |
+ | Further indexation effects | - Operating expenses (incl. implementation of strategic projects) |
- Personnel costs |
9
Contact
Niclas Karoff
CEO/CFO
E-Mail: n.karoff@hamborner.de
Christoph Heitmann
Head of Investor Relations, Financing & Corporate Communications
E-Mail: c.heitmann@hamborner.de
Sarah Verheyen
COO/CIO
E-Mail: s.verheyen@hamborner.de
HAMBORNER REIT AG
www.hamborner.de
info@ir.hamborner.de
+49 (0)203/54405-32
10
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Disclaimer
Hamborner Reit AG published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2024 16:44:08 UTC.
