EQS-News: HAMBORNER REIT AG publishes preliminary figures – stable and planned business development in 2024 – Dividend proposal at previous year's level

PRESS RELEASE

HAMBORNER REIT AG publishes preliminary figures – stable and planned business development in 2024 – Dividend proposal at previous year's level

• Operational business development according to plan in a still challenging market environment
• Increase in rental income by 2.0% to €93.0 million
• FFO decline by 5.5% to €51.6 million
• Stabilisation of market value of the real estate portfolio after year-end revaluation
• Net asset value (NAV) per share at €9.79 (-2.3% YOY)
• Loan-to-value (LTV) at 43.7%
• Dividend proposal with €0.48 per share at previous year's level – Current dividend yield at 7.7%
• Full-year forecast for 2025 influenced by property disposals and increased expenses

PRELIMINARY BUSINESS FIGURES AS AT 31 DECEMBER 2024

Duisburg, February 25, 2025 – With today's publication of the preliminary, unaudited financial results, HAMBORNER REIT AG is looking back on another business year characterized by uncertainties and negative influencing factors. However, in a challenging overall economic environment, the company was able to achieve a solid and planned operational business development.

Income from rents and leases amounted to €93.0 million and was thus 2.0% above the previous year's level. The positive development was particularly influenced by the acquisition of new properties in 2023 and contractually agreed rent adjustments as a result of Inflation (index-based rent increases). On a comparable basis (like-for-like), rental income in the 2024 financial year was around €1.4 million or 1.6% higher than the previous year.

This was offset by reduced income from the passing on of incidental costs as well as, among other things, increased expenses for maintenance, personnel and administration, which led to a decline in funds from operations (FFO) by 5.5% to €51.6 million. FFO per share was €0.63.

The financial situation of the company remains comfortable. With 55.2% the REIT equity ratio was at a consistently high level as of 31 December 2024. The loan-to-value (EPRA-LTV) increased slightly over the course of the year to 43.7% (previous year: 43.5%) under the influence of the revaluation of the real estate portfolio and the dividend payment in the second quarter.

PORTFOLIO DEVELOPMENT

In a difficult transaction environment, the company has sold an office property in Hamburg (An der Alster 6), which most recently contributed around €0.3 million to annual rental income, but was no longer classified as being in line with the strategy due to its size, age structure and sustainability standards. The sales price of €8.0 million was 27.0% above the last determined market value. The property was transferred to the buyer in December 2024.

At the end of the year 2024, the company had the property portfolio regularly evaluated by the external expert Jones Lang LaSalle. Following the negative performance in 2023, which was mainly due to the changed interest rate environment, the latest appraisal showed a stabilization of property values. Based on the revaluation, the market value of the real estate portfolio (like-for-like) decreased by €28.2 million or 1.9%.

Taking into account the year-end valuation and the completed transaction, HAMBORNER had 66 properties with a total value of €1,441 million as of 31 December 2024. The net asset value (NAV) per share decreased slightly year-on-year by 2.3% to €9.79.

On the transaction side, the company has signed a sales agreement for a retail property in Lübeck. The property being sold is the "Haerder-Center", an inner-city shopping centre that was acquired by the company in 2016. The sales price amounts to around €20.9 million. With the conclusion of the purchase agreement, which was already signed in December 2024, but was still subject to a suspensive condition, the company has now divested its last remaining high-street property and has thus fully completed its sales activities in this regard.

In addition, the sale of another property with a transaction volume of around €6.5 million was notarized this month. The property in question is a smaller office building in Osnabrück, Lower Saxony. The property was sold as part of the active portfolio management, taking into account the size of the property and the location assessment.

The two properties for sale recently contributed approximately €2.9 million to the company's annual rental income. The selling prices were at the level of the most recently determined market values. The purchase price payments and the transfer of ownership are expected to take place at the end of the first quarter.

"We are pleased to complete our strategic sales activities with regard to our high street portfolio with the sale of the Haerder Center in Lübeck and to focus even more strongly on properties with a local supply character. At the same time, we will continue to pursue our active portfolio management approach and place individual properties, such as the property in Osnabrück, on the market. We intend to reinvest the resulting sales proceeds as quickly as possible and are continuously examining acquisition opportunities in both the office and retail property asset classes," comments Sarah Verheyen, COO/CIO of HAMBORNER REIT AG.

In addition to the two properties recently sold, the company is expected to sign the sales contract for another property in the short term.

OPERATIONAL BUSINESS DEVELOPMENT

At the operational level, the company was also able to continue its largely stable business development. In the 2024 financial year numerous rental successes were achieved and contracts for rental space of approx. 49,000 m² were concluded. The average remaining lease term (WALT) fell slightly over the course of the year and stood at 5.8 years as at 31 December 2024, with the terms within the retail and office portfolios amounting to 7.0 and 4.3 years respectively. The EPRA vacancy rate remained at a consistently low level of 2.8% at the end of the year.

DIVIDEND

Notwithstanding the currently difficult conditions and considering the planned business development in 2024 the Management Board intends to propose to this year's Annual General Meeting the distribution of a dividend at the previous year's level of €0.48 per share. In relation to the current share price, this corresponds to a dividend yield of approximately 7.7 %.

The Annual General Meeting of the Company will take place on 26 June 2025 as a physical event.

GUIDANCE 2025 & OUTLOOK

Last week, the company already provided an initial forecast of the expected business development for the current year:

• Income from rents and leases: €87.5 – €89.0 million
• Funds from operations (FFO): €44.0 – €46.0 million

The expected decrease in income from rents and leases compared to the previous year is primarily due to the already completed sales of existing properties, as well as the imminent signing of the further sales contract.

As the timing and volume of potential reinvestment of proceeds from property sales, as well as the resulting positive effects on revenue and operating result, are currently difficult to predict, the company has refrained from considering potential future property purchases in the forecast. Furthermore, no further selective sales of assets were taken into account.

The currently predicted decline in the operating result (FFO) is due, on the one hand, to the reduced rental income resulting from the sale of properties, and on the other hand, to increased maintenance and personnel expenses compared to the previous year, as well as costs associated with the implementation of projects driven by regulatory and strategic factors. The cost increases in the areas of maintenance, personnel and administration are expected to be between 10% and 20%. At the level of other operating expenses, the company currently expects a higher percentage increase, which is partly attributable to one-off effects during the year.

In view of the reduced revenue and earnings forecast for the financial year 2025, as well as higher costs expected in the medium term, the Management Board and Supervisory Board will review the company's dividend policy, which may result in an adjusted distribution strategy.

PRELIMINARY KEY FINANCIAL AND PORTFOLIO FIGURES AS OF 31 DECEMBER 2024

The company will publish the final financial figures for the year 2024 as part of the publication of the annual report on 17 April 2025. The full report will be made available for download in the Financial Reports section of the company's website. Further information on the key figures presented can be found in the glossary.

ABOUT HAMBORNER REIT AG

HAMBORNER REIT AG is a SDAX-listed public limited company that operates exclusively in the real estate sector and is positioned as a portfolio holder for high-yield commercial properties. The company generates sustainable rental income based on a diversified portfolio of properties distributed throughout Germany with a total value of more than €1.4 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 centers or highly frequented suburban locations in large and medium-sized German cities.

HAMBORNER REIT AG is characterized by its many years of experience in the real estate and capital market, its consistent and sustainably attractive dividend strategy as well as 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.