Germany's Hamborner REIT reported preliminary FFO up 24% for last year at €44.7m, helped by past capital increases and recent investments plus a 2.9% portfolio valuation upgrade. The Duisburg-based firm will propose raising the dividend to €0.45 per share.
"Hamborner REIT has again enjoyed a highly successful financial year," the company said in a release. Managing a portfolio of €1.36bn at year end, up from €1.12bn at the close of 2016, group income from rents and leases amounted to €74.1m in the 2017 financial year, up by 19.8% on 2016 as a result of new investments in particular. "The improvement illustrates that the capital increases in 2015 and 2016 contributed to .. value-adding growth. Furthermore, the investments carried out in the course of 2017 and at the start of 2018 as well as the remaining fire power of around €160m, mean additional potential for further increases in rental income and FFO."
The company invested €214.5m in seven properties last year, taking net asset value per share by year end to €10.15, up 5.3% on December 2016. It said its financial situation remains comfortable as well, even though the loan-to-value ratio rose to 39.6% from 30.0%. The equity ratio of 59.0%, down from 67.8%, is still well in excess of the 45% required under the German REIT Act. In light of the consistently positive business performance, the company said it intends to propose to the shareholder meeting on 26 April to increase the dividend for 2017 from €0.43 to €0.45 per share. Based on the share price at the end of 2017, this means a yield of 4.5%.
The company will publish its final figures for 2017 and its forecast for the current year on 21 March 2018.