annual report 2009 - bei der Hamborner REIT AG

to our sHareHolders management report Financial statements supplementary inFormation
Forecast report
Orientation of the company
54 Hamborner reit ag | annual report 2009
HAMBORNER is a commercial real estate company operating nationwide and will also maintain
this orientation in the future. With the conversion into a REIT, the requirements that
ensue from the German REIT Act apply in the future. These relate in particular to the object
of the company as well as compliance with requirements relating to capital and company
law. The latter includes a minimum equity ratio of 45 % on a fair value basis.
In view of our excellent capital position and also against the background of the REIT conversion,
we consider ourselves very well positioned in the present difficult market environment
and well equipped for further growth. We can and will use market opportunities that present
themselves, effecting acquisitions depending on the ongoing price and market development.
Our strategy is therefore geared to the medium and long term. We will also maintain the
sound financing structure in the future and finance investments with an appropriate deployment
of borrowed funds of approximately 60 %.
Parallel to the expansion of the portfolio, the optimisation of the inventory through sales
will be a permanent task. This relates primarily to older, mainly smaller properties no longer
conforming to the strategy.
Expected economic environment
The German Federal Bank expects a continuation of the macroeconomic recovery process in
the next two years, but is only guardedly optimistic overall. After a decrease in the GDP by
approximately 5 % in 2009, an increase of 1.6 % is forecast for 2010 and 1.2 % in 2011. The
labour market remained comparatively stable in the economic crisis, though a prolonged
negative adjustment is expected in spite of the upturn. Therefore, the number of unemployed
people could increase from approximately 3.4 million in 2009 through 3.8 million in 2010
to 4.2 million in 2011. On the other hand, consumer prices will probably only increase moderately
in the coming years, namely by about 0.9 % in 2010 and approximately 1.0% in 2011.
Future situation in the industry
Letting market
Even if the whole economy has returned to slight growth again, the recovery will occur
rather slowly in the next two years and will have no major positive effects on the letting
markets. We expect comparable take-ups both for the retail trade and office markets. The
bulk of the rental price adjustments will probably be carried out in 2009, even if the prime
rents will ease further in individual cases. A tenants' market with extensive rent incentives
will still remain. As only a few new projects were started in 2009, the range of offers for
modern office spaces will reach its peak in the current year.
Investment market
The improved market sentiment and a stabilising financing environment will stimulate invest-
ment turnover in 2010. We expect an increasing transaction volume towards €15 billion.
Thus, the commercial investment market is returning to the normality of the long-term
average both in terms of the transaction volume and the transaction structure (small to
medium-sized individual investments), the property type (core properties with a long lease
term) and the group of investors (German equity investors orientated for the long-term).