annual report 2009 - bei der Hamborner REIT AG

Anticipated business development
to our sHareHolders management report Financial statements supplementary inFormation
In the recent deep recession HAMBORNER proved to be very sound and comparatively independent
of the crisis. For 2010 and 2011 as well, we expect a stable operating business
development with a slowly recovering market environment. The rent incomes constitute
the key earnings source on the basis of the business model as a long-term portfolio holder.
For 2010 we expect a further increase in the rent incomes compared with the previous year,
attributable in particular to the new acquisitions transferred in 2009 and to the purchase
recorded in December. With an ongoing growth course of the company, we also expect continuously
increasing total rental income in the following years.
With respect to the economic vacancy rate and the rent losses, we expect a low level in the
future as well. No major rental agreements expire in 2010 for which it has so far not been
possible to conclude follow-up agreements; moreover our main tenants enjoy good creditworthiness.
In the case of the spaces available for subsequent letting in 2011, we are confident
of achieving agreement extensions or new lettings in good time. It appears overall that
our company has a sound foundation due to the income secured by letting, particularly from
the retail trade sector.
In the wake of the REIT conversion and the associated long-lasting exemption of the company
from corporation and trade tax, the hidden reserves of the company are to be determined
and taxable only once. The precise extent of the tax burden from the final levying of
taxes has not yet been established, but will probably be in the order of €17 to 20 million.
There is an outflow of liquidity to the same extent due to the tax payment, whereas the
effect on results will be considerably lower due to the simultaneous release of the balance
sheet deferred taxes. As of December 31, 2009, the company shows €14.7 million of deferred
tax liabilities and €2.2 million of deferred tax assets in the IFRS individual financial
statements.
HAMBORNER finds itself well-positioned with respect to the competition through the REIT
conversion, the structure of the property portfolio and due to the financial strength of the
company. This does not preclude further pressure on property prices and thus on the valuation
of the portfolio properties. With a continuing low interest rate level, however, this
presents a favourable environment for additional purchases. Nevertheless, new acquisitions
must satisfy our quality and yield requirements, so that timings of possible purchases and
also portfolio adjustments through selective sales are not precisely predictable. The 2010
result is significantly encumbered, in accordance with expectations, due to the final levying
of taxes specified above. However, this is a one-off fiscal-induced special effect. Operationally,
we expect positive earnings for 2010 and subsequent years, which allow appropriate
and, as far as possible, increasing distributions. This presupposes that we remain spared
from significant unforeseeable reductions in earnings.
annual report 2009 | Hamborner reit ag
55