Hamborner REIT (HAB2) Q2 2024 earnings summary

Executive summary

• Rental income for H1 2024 rose 4.1% to €46.7 million, driven by property additions, rent increases, and indexation effects.

• FFO increased 0.7% to €28.3 million, or €0.35 per share, with stable portfolio metrics and a low EPRA vacancy rate of 2.9%.

• Net rental income rose 4.3% to €39.7 million, and net profit reached €7.6 million, reversing a prior loss.

• Portfolio remained stable with 67 office and retail properties, and food retailers comprised about one-third of annualized rents.

• Annualized rental income reached €90.5 million, supported by acquisitions and indexation.

Financial highlights

• AFFO increased by 4.9% to €27.3 million, with AFFO per share at €0.34.

• Maintenance expenses increased to €2.8 million; full-year maintenance costs expected at €10 million.

• Interest expenses declined to €7 million due to prior loan repayment and lower variable financing costs.

• Portfolio value decreased by €7.8 million (0.5%) to €1,463 million after selective fair value adjustments.

• REIT equity ratio at 54.1%, LTV at 45.1%, and net debt/EBITDA at 9.8.

Outlook and guidance

• Full-year 2024 income from rents and leases expected between €91 million and €92.5 million; FFO guidance at €49 million to €50.5 million.

• No property acquisitions or disposals included in the forecast due to challenging transaction markets.

• Limited positive like-for-like rent effects and higher maintenance, operating, and personnel costs expected in H2 2024.

• Company remains confident for H2 2024 despite macroeconomic uncertainties.