HAMBORNER REIT AG reported largely stable operational business development in the second quarter of 2026, although the overall economic and sector-specific environment is still described as challenging. Rental income amounted to EUR 45.1 million, representing a reduction of 1.3 per cent compared to the same period last year. This decline is primarily due to property sales in the past and current financial year. Positive effects on revenue development resulted from contractually agreed rent adjustments, particularly index-linked rent increases due to inflation. On a like-for-like basis, rental income in the first half of the year increased by approximately EUR 0.7 million or 1.7 per cent year-on-year.
Funds from Operations (FFO) decreased by 4.4 per cent to EUR 23.8 million compared to the prior-year period. FFO per share accordingly fell to EUR 0.29, from EUR 0.31 in the previous year. In addition to reduced rental income and other operating income, contributing factors were increased costs in maintenance, administration, and personnel, as well as higher financing costs due to the changed interest rate environment. Despite these developments, the company's financial situation is considered comfortable. The Loan-to-Value (EPRA-LTV) increased to 45.2 per cent as at 30 June 2026, influenced by the dividend distribution and individual valuation adjustments. The REIT equity ratio decreased to 53.9 per cent in the first half of the year, but remains at a high level.
In the first quarter of 2026, the transfer of ownership for a retail property in Ditzingen, sold at the end of 2025, took place. As at 30 June 2026, the portfolio comprised a total of 63 office and retail properties. A portfolio-wide external appraisal was not carried out at the half-year end; however, punctual fair value adjustments were made in coordination with the external appraiser. After an increase in the fair value of an office property in Cologne by EUR 4.4 million in the first quarter, further valuation adjustments were made for eight properties as at 30 June 2026. These resulted from changed location and letting prospects, as well as increased cost forecasts for follow-on lettings. In total, these adjustments led to a decrease in the portfolio volume of EUR 20.7 million or 1.5 per cent, bringing the fair value of the total portfolio to EUR 1.316 billion. Net asset value (NAV) per share decreased to EUR 8.72 due to the dividend payment and fair value adjustments.
As part of the strategic reorientation of its property portfolio, the company completed the sale of an office property in Neu-Isenburg in the second quarter of 2026. The sale price amounted to EUR 13.5 million, marginally below the most recently determined expert fair value. An additional sales proceeds of up to EUR 0.2 million is realisable upon fulfilment of a contractual condition. The transfer of ownership is expected in the third quarter of 2026. The funds released are to be promptly reinvested in high-yield properties in the local supply and DIY sectors.
Operational business development in the first half of the year was also stable. Lease agreements for approximately 23,700 square metres of rental space were concluded, with approximately 66 per cent relating to office space. The tenant retention rate was around 88 per cent. The average remaining lease term (WALT) decreased slightly to 5.0 years as at 30 June 2026. The remaining terms for the retail and office portfolios were 6.2 and 3.6 years respectively. The EPRA vacancy rate increased slightly to 4.1 per cent. The Annual General Meeting on 3 June 2026 in Essen confirmed the resolutions proposed by the Management Board and Supervisory Board, including a dividend of EUR 0.39 per share for the 2025 financial year. The company maintains its positive expectations for the full year 2026.
