VIB Vermögen makes a successful start to the 2017 fiscal year

VIB Vermögen makes a successful start to the 2017 fiscal year

– Operating revenue up by 4.6% to EUR 20.4 million

– 12.9% increase in adjusted earnings before tax (EBT)

– Handover of a logistics property developed in-house at Interpark Kösching

– Guidance confirmed for the 2017 fiscal year as a whole

Neuburg/Danube, May 10, 2017 – VIB Vermögen AG, a company specialising in the acquisition, development and portfolio management of commercial properties, has continued to grow in the first quarter of 2017. The company, which today released its figures for the first three months of 2017, once again posted increases in revenue and earnings. Key factors in this regard were the increase in rental incomes from new investments and the reduction in interest expenses for real estate loans.

In the first three months of the year, the company’s operating revenue climbed by 4.6% from EUR 19.5 million to EUR 20.4 million. When adjusted for valuation effects, earnings before interest and taxes (EBIT) rose by 5.3% from EUR 15.3 million to EUR 16.1 million. A considerably stronger increase was witnessed in earnings before tax (EBT) adjusted for valuation effects and extraordinary items, which rose by 12.9% from EUR 10.1 million to EUR 11.4 million. Playing a decisive role in this development was the 9.6% drop in interest expenses, which is, in turn, attributable to a decrease in the average interest rate for loan liabilities. Consolidated net income improved by 25.7% from EUR 8.5 million to EUR 10.7 million.

Based on the average number of shares in the fiscal year, this equates to an increase in diluted and undiluted earnings per share of 27.6% to EUR 0.37, compared with EUR 0.29 in the prior-year period.

FFO (funds from operations), which is an indicator of cash inflow from operating activities, improved by 11.5% to EUR 9.8 million in the first three months of 2017, compared with EUR 8.8 million in the previous year. The undiluted NAV (net asset value), i.e. the value of all asset items less liabilities, climbed by 2.4% compared with the end of the 2016 fiscal year to reach EUR 481.2 million. As a result, NAV per share rose by 2.3% from EUR 17.05 to EUR 17.45 per share.

“Alongside the positive course of business, we are also particularly pleased about the on-schedule handover of a further logistics property developed in-house at Interpark Kösching. A second project at the site will be completed in summer,” explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG. “We are also working to optimise our existing portfolio and we examine new acquisition and development opportunities on an on-going basis. We still see high market demand for logistics and light industry properties and wish to continue benefiting from this in the future,” adds Pfandzelter.

The property, which was handed over on March 31, is let to a prestigious company in the logistics sector and boasts a total useful area of 21,000 sqm. The investment volume stood at approximately EUR 15.4 million. The net initial yield stands at about 8%. Following completion of the logistics property, the portfolio of VIB Vermögen now comprises 105 properties.

Taking into account the results in the first three months of 2017, VIB Vermögen confirms the guidance for the 2017 fiscal year as a whole issued in the 2016 Annual Report.

The full VIB Vermögen AG interim report for the first three months of the 2017 fiscal year can be accessed at vib-ag.de.

Contact

Investor Relations:

VIB Vermögen AG
Petra Riechert Tel. +49 (0)8431 9077 952
Tilly-Park 1 Fax: +49 (0)8431 9077 973
86633 Neuburg/Danube Email: ed.ga-biv@trehceir.artep

About VIB Vermögen AG (including BBI Immobilien AG)

VIB Vermögen AG is a medium-sized company specialising in commercial real estate management that has been operating successfully for more than 20 years. The company focuses on properties from the logistics/light industry and retail sectors in the economically strong southern German region. VIB’s shares have been listed on the Munich (m:access) and Frankfurt (Open Market) stock exchanges since 2005.

VIB’s business model is based on a “develop-or-buy-and-hold” strategy: Firstly, VIB acquires properties that are already rented. Secondly, it completely develops new properties in order to transfer them to its own portfolio on a long-term basis and generate rental income from them. VIB also holds investments in companies with real estate assets.