Hamborner REIT raises forecasts on rental income growth

Listed German Hamborner REIT AG also posted strong results for the first nine months, increasing its rent and lease revenue by 18.7% to €453m, and giving raised forecasts for its full-year prospects. The company specialises in retail properties in city centre sites, as well as specialist stores, office buildings and medical practices.

The Duisburg-based company's FFO1 climbed by 20.9% to €26.5m, while rental income grew by 1.6% on a like-for-like basis. The vacancy rate is 1.7%, down from 2.2% last year. The NAV is up from €8.65 to €9.03 (the current share price is €8.70 – like most of its peers down about 20% over the past three months on recent highs). The REIT equity ratio is a comfortable 68.3% and the LTV ratio 28.5%.

Recent big acquisitions include a €20.9m purchase of an office property in Kiel, the €37.5m acquisition of the Rondo Steinheim retail centre in Hanau, and the DOMI high street building in Dortmund's main shopping precinct for €30.9m. In its largest deal to date, Hamborner closed on the Kurpfalz Center in Mannheim for €80m. Hamborner placed 17.7m new shares in September, generating gross proceeds of €166.5m.