Hamborner Raises Funds from Operations Forecast to €44 Million for 2026
Key Facts
Hamborner REIT reported its nine-month results on November 10, 2026, and raised the upper end of its 2026 funds from operations forecast to €44 million, from a previous range of €38 million to €42 million. The company said its updated forecast is between €42 million and €44 million, a revision to this operating metric. It also updated its estimate for rental and lease income, but did not raise all of its financial forecasts. The revision, the company said, reflects nine-month performance and an updated estimate of income and expenses. It said successful leasing and spending below plan on some items helped lift its funds from operations forecast.
Rental and lease income totaled €67.3 million in the first nine months of 2026, down 0.9% from the same period a year earlier. The company attributed the decline mainly to property sales in the previous and current years. This was partly offset by the impact of inflation-linked rent adjustments, according to its announcement. In contrast, the company raised its full-year rental and lease income forecast to €88.5–90.0 million, from €87.5–89.5 million previously. The update raises both the lower and upper ends of the annual forecast, alongside a decline in reported income for the nine months compared with the corresponding period.
Hamborner attributed the higher funds from operations forecast in part to successful leasing and to spending below plan on leasing incentives, tenant improvements and related maintenance. It said it had signed leases covering about 27,500 square meters since the start of the year through September 30. Renewals with office tenants in particular helped bring the tenant retention rate to about 85% in the first nine months. These figures provide context for the company's comments on leasing performance, while overall rental and lease income declined due to property sales. The company said its updated annual estimate takes into account performance in the elapsed period and an updated estimate of income and expenses.
The vacancy rate under the EPRA standard was 4.4% on September 30, while the average remaining lease term across the portfolio was five years. Terms varied by sector, at six years for retail properties and 3.6 years for office properties. The portfolio's value fell by €46.1 million compared with the end of 2025. Management said the decline reflected, alongside property sales, the revaluation of selected properties at the end of June 2026. The company made no further adjustments to portfolio values during the third quarter.
The stock rose 5.14% to $18.4 following the announcement, compared with a previous close of $17.5, according to an Investing.com report attributed to Reuters. The report linked the move to the forecast update, while the announcement came in an environment the company described as challenging both economically and for the sector. On the management call, Hamborner said it expects business for the rest of the year to be broadly in line with its forecasts despite those conditions. It added that the company will continue the strategic development of its property portfolio. This includes gradually reducing the office share and reviewing acquisition opportunities in the retail sector, according to the call transcript.
The company set February 25, 2027, as the date for publishing preliminary 2026 figures, with its annual report due on April 22, 2027. The preliminary figures are scheduled for after the financial year ends, while the annual report will provide subsequent disclosure of the year's results. These dates mark two upcoming milestones for tracking the forecasts the company announced in November. The funds from operations range announced for 2026 remains €42 million to €44 million, compared with the previous range of €38 million to €42 million. The updated rental and lease income forecast is also €88.5–90.0 million, compared with the previous estimate of €87.5 million to €89.5 million.