Real Estate segment
in € million |
|
2023 |
|
2022 |
|
Change |
|---|---|---|---|---|---|---|
Revenue |
|
46.5 |
|
44.1 |
|
5.3 % |
EBITDA |
|
25.8 |
|
26.6 |
|
- 3.1 % |
EBITDA margin in % |
|
55.5 |
|
60.3 |
|
- 4.8 pp |
EBIT |
|
16.1 |
|
18.4 |
|
- 12.5 % |
EBIT margin in % |
|
34.7 |
|
41.8 |
|
- 7.1 pp |
According to Grossmann & Berger’s latest market report, Hamburg’s office rental market was unable to build on the dynamic closing of the previous year, despite a high level of revenue in the fourth quarter. It stated that the area of office space let in 2023 fell by 19 % compared with the previous year to approx. 455,000 m2. The vacancy rate rose by 0.6 percentage points to 4.6 % compared with the prior-year period.
In this market environment, however, HHLA’s properties in the Speicherstadt historical warehouse district and the fish market area succeeded in continuing their positive trend from the 2023 financial year with almost full occupancy in both areas.
Revenue rose by 5.3 % in the reporting period to € 46.5 million (previous year: € 44.1 million). In addition to increased income from revenue-based rent agreements, this growth was also due to rising rental income from newly developed properties in the Speicherstadt historical warehouse district.
This significant revenue growth was offset by a planned temporary vacancy for facade renovation to increase the energy efficiency of a property and increased maintenance expenses in the fourth quarter. Moreover, higher depreciation and amortisation following a completed project development and demolition costs as part of preparations for a major construction project in the fish market area also had a negative impact on earnings. As a result, the cumulative operating result (EBIT) decreased strongly by 12.5 % to € 16.1 million in the reporting period (previous year: € 18.4 million).