Hamborner REIT (HAB2) Q3 2024 earnings summary

Executive summary

• Income from rents and leases rose to €69.8 million for the first nine months of 2024, up 2.8% year-over-year, driven by property additions and indexation effects.

• FFO slightly decreased to €41.8 million, with FFO per share at €0.51, while operational metrics like WALT (6.0 years) and vacancy rate (3.1%) remained stable.

• Net rental income increased 1.3% to €58.4 million, and operating result nearly doubled to €21.3 million.

• Net profit for the period was €11.6 million, up from €2.7 million year-over-year.

• Food retail remains the dominant tenant, accounting for about one third of annualized rents.

Financial highlights

• Annualized rent income was stable at €90.5 million year-over-year.

• Maintenance expenses increased 10% year-over-year to €5.7 million, with full-year costs expected around €10 million.

• Admin expenses rose by €200,000 due to digitalization, and other operating income fell by nearly 30%.

• AFFO per share remained stable at €0.49 year-over-year.

• Basic/diluted EPS: €0.14 (up from €0.03 year-over-year).

Outlook and guidance

• Full-year 2024 income from rents and leases and FFO expected at the upper end of previous forecasts: €92.0–93.0 million and €50.0–51.0 million, respectively.

• Guidance reflects stable cash flows, property additions, and further indexation, offset by higher maintenance and operating costs.

• Only minor reductions in vacancy expected by year-end, with limited positive like-for-like rent effects anticipated.

• Company remains confident for Q4 2024 despite macroeconomic challenges.