DUISBURG (dpa-AFX) - Hamborner Reit sees its asset values declining more than previously thought due to the tight situation in office and retail properties. The fair value of the real estate portfolio on a like-for-like basis is likely to fall by 5.5 to 6.0 percent as of June 30 compared with year-end 2022, the SDax-listed commercial real estate specialist announced in Duisburg on Monday evening. This is due to a negative performance of the office and retail portfolio, it said. Investors reacted negatively to the news on Tuesday.

In early trading, Hamborner Reit shares slid more than four percent to 6.35 euros. The shares are thus almost 6 percent lower since the turn of the year. Investors who have held Hamborner Reit in their portfolios for a year, on the other hand, have to come to terms with a drop in value of a good quarter.

The Group also announced that expectations for the net asset value (NAV) at the end of the year, an important indicator in the sector, are falling. While the company previously expected a slight decline, the Executive Board now expects 7 to 12 percent less compared to the December 31, 2022 value of 11.86 euros. In view of the continuing dynamic market environment, which is characterized by uncertainties, the range of the adjusted forecast already takes into account further possible value adjustments as part of the regular external portfolio valuation at the end of 2023, it said.

Based on the new news, analyst firm Warburg Research lowered its price target by five percent to 9.50 euros. The adjusted Group forecast reflects the challenging market environment as well as the recent negative news, particularly in the office sector, it said in justification. However, Warburg analyst Philipp Kaiser remains confident and continues to recommend buying the stock. "Based on the solid balance sheet, we believe Hamborner Reit is well positioned to weather the current difficult times relatively unscathed."/he/ngu/tav