Hamborner REIT (HAB2) Q4 2024 earnings summary

Executive summary

• Rental income increased by 2.0% year-over-year to €93.0 million, driven by indexation, property additions, and new acquisitions.

• Operational performance remained stable in 2024 despite inflation and interest rate pressures, with business development in line with plans.

• Operating result rose to €24.8 million from €11.1 million, mainly due to lower impairment losses.

• Period result improved to €16.3 million from a loss of €0.7 million in the prior year.

• Active portfolio management included disposals of non-core assets, with a strategic focus on retail properties with local supply character.

Financial highlights

• Funds from Operations (FFO) declined 5.5% to €51.6 million, mainly due to higher maintenance, administration, and interest costs; FFO per share was €0.63.

• Net rental income declined 1.3% to €75.0 million, impacted by higher maintenance expenses.

• Net Asset Value (NAV) per share decreased to €9.79 (-2.3% YoY) due to property portfolio impairments.

• Annualized rental income at year-end was €90.8 million, up 1.4% like-for-like.

• Maintenance expenses increased 21% to €10.1 million; administrative expenses up 20%.

Outlook and guidance

• 2025 rental income expected between €87.5–89.0 million; FFO forecasted at €44.0–46.0 million, reflecting recent disposals and higher costs.

• Dividend proposal at €0.48 per share, payout ratio around 76%, yield approximately 7.7%.

• Maintenance, personnel, and admin costs expected to rise 10–20% in 2025; other operating expenses to increase, partly due to one-off effects.

• Dividend policy under review, with potential adjustments based on FFO, investment strategy, and market environment.