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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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.