VIB Vermögen AG with good results in fiscal year 2022
- Gross rental income increases to EUR 93.8 million
- Funds from operations after taxes and non-controlling interest (FFO) at EUR 62.7 million
- Consolidated net income of EUR 54.7 million achieved
- Guidance 2023: FFO before taxes and non-controlling interest between EUR 58.0-64.0 million
- Suspension of dividend planned
Neuburg/Donau, 15 February 2023. VIB Vermögen AG (“VIB”), a company specializing in the development, acquisition and portfolio management of commercial properties from the logistics and light industrial asset class, looks back on a successful fiscal year 2022. In addition to the good result, VIB further strengthened its partnership with the DIC Asset Group in the past fiscal year and pooled the various competencies and resources. Both strategically and organizationally. VIB successfully entered the profitable and high-cashflow segment of asset management of properties for institutional investors at the end of 2022 and launched the new “Institutional Business” division with a substantial volume from day one.
“Our business model with an even clearer strategic focus on logistics and light industrial properties has proven to be extremely robust in an overall environment shaped by uncertainty. With the strong partner DIC at our side, we have created the basis for further growth. And this with reliable and sustainable cash flows from two profitable business divisions in the future,” explained Dirk Oehme, speaker of the Managing Board of VIB.
Gross rental income and FFO increased
Gross rental income increased to EUR 93.8 million in fiscal year 2022 (previous year: EUR 90.3 million). Additions to the property portfolio and rent indexations contributed in particular to this growth. As of the balance sheet date on December 31, 2022, the portfolio of VIB comprised 114 commercial properties with a rentable area of around 1.4 million square meters and a balance sheet value of around EUR 1.4 billion. The vacancy rate remained at a very low level of 1.4 percent (previous year: 1.2 percent). Funds from operations (FFO) as an indicator of the inflow of funds totaled EUR 62.7 million in the fiscal year (previous year: EUR 58.6 million). This results in FFO per share of EUR 2.22 (previous year: EUR 2.12).
Good group net income
The result from ordinary activities adjusted for special effects amounted to EUR 44.7 million (previous year: EUR 38.2 million). The special effects amounted to EUR 17.1 million (previous year: EUR -1.0 million) on a net basis. Income taxes amounted to EUR 7.4 million (previous year: EUR 6.9 million). The consolidated net income amounted to EUR 54.7 million). Despite an increase in the number of shares, earnings per share were EUR 1.90 (previous year: EUR 1.08).
Suspension of dividend for fiscal year 2022 planned
In order to promote the growth strategy and to strengthen liquidity for the further expansion of the business and upcoming investments in our project developments, the Managing Board and the Supervisory Board of VIB plan to propose to the Annual General Meeting that no dividend for fiscal year 2022 be paid.
Guidance for the financial year with FFO before taxes and non-controlling interest between EUR 58.0-64.0 million
Due to the adjustments of the income statement classification to the EPRA standards, the relevant key performance indicators of gross rental income, FFO before taxes and non-controlling interests, and the vacancy rate will be used as Guidance from 2023 onwards. Gross rental income and FFO before taxes and non-controlling interests will replace the previous key Guidance of revenue and adjusted profit from ordinary activities. Due to the currently very volatile interest rate environment, we refrain from forecasting our average interest rate. The Managing Board expects gross rental income of between EUR 82.0 million and EUR 88.0 million for the financial year 2023. Due to the sale of the retail properties – the transfer of ownership, benefits and burdens is expected to take place on March 31, 2023 – this range can only be compared with the previous year to a limited extent. The Guidance funds from operations (FFO), is expected to be in a range of EUR 58.0 to 64.0 million. Against the backdrop of the unchanged challenging environment, the company is planning a vacancy rate in the low single-digit range for the end of the current financial year 2023.
The 2022 Annual Report is available for download at www.vib-ag.de.
VIB Vermögen AG
Tel.: + 49 (0)8431 9077-961
Fax: + 49 (0)8431 9077-1961
Profile of the VIB Vermögen AG
VIB Vermögen AG is a medium-sized company specializing in the development, acquisition and portfolio management of modern and sustainably profitable commercial properties. The company has been operating successfully on the market for almost 30 years. The focus is on properties in the logistics and light industrial asset class. VIB’s shares have been listed on the Munich (m:access) and Frankfurt (Open Market) stock exchanges since 2005.
Alongside direct acquisitions, VIB’s broad-based business model also comprises the entire spectrum of project development and redensification projects as part of a “develop-or-buy-and-hold” strategy: on the one hand, VIB acquires properties that have been let already, and on the other hand, it develops new properties from the ground up in order to permanently incorporate these into its own portfolio and generate rental income from them. In addition, VIB offers comprehensive property management services and solutions for institutional investors and holds interests in companies with real estate assets.
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