Hamborner REIT (HAB2) Q1 2025 earnings summary

Executive summary

• Rental income declined 1.7% year-over-year to €23.0 million in Q1 2025, with FFO down 15.2% to €11.9 million (€0.15 per share), mainly due to higher operational costs, property disposals, and delayed turnover rents.

• Net rental income decreased 5.7% to €18.3 million, and net profit for the period was €2.5 million, down from €4.7 million in Q1 2024.

• Portfolio remained stable with a vacancy rate of 2.8–3.0% and WALT of 5.7 years.

• Recent property disposals in Hamburg, Osnabrück, and Lübeck totaled €27.4 million, with a strategic shift toward local supply retail properties.

• Operating result fell to €5.9 million from €7.7 million year-over-year, reflecting higher maintenance, administrative, and personnel expenses.

Financial highlights

• Annualized rental income at end of March was €91.2 million, with a like-for-like increase of 2% year-over-year, mainly from index adjustments.

• Maintenance expenses rose 35–35.5% to €1.6 million; admin expenses up 27% due to IT investments; personnel expenses up 11.5%.

• AFFO per share declined 13.5% year-over-year to €0.15.

• REIT equity ratio increased to 56.0% from 55.2% at year-end 2024; LTV reduced to 41.1%.

• Net debt/EBITDA at 9.4x; EBITDA/interest coverage at 4.7x.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: rental income expected at €87.5–89.0 million, FFO at €44–46 million.

• Dividend proposal for 2024 at €0.48 per share (76% payout ratio); future payout ratio to be reduced to 60–70% of FFO, implying a 2025 dividend of €0.33–0.39 per share.

• Cost increases of 10–20% expected in maintenance, personnel, and admin for 2025, with one-off costs for regulatory and strategic projects.

• No further acquisitions or disposals included in current forecast due to uncertainty in reinvestment timing.