VIB Vermögen confirms outstanding results for 2017

2017 Annual Report

VIB Vermögen confirms outstanding results for 2017

– Adjusted EBT grows by 15.4 per cent, FFO climbs by 15.2 per cent

– Significant dividend increase of 9.1 per cent to EUR 0.60 per share

– Further profitable growth anticipated for 2018

Neuburg/Danube, April 25, 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, has today presented its Annual Report for the 2017 fiscal year. On the basis of the audited annual financial statements, the company confirms its interim results published on March 21, 2018.

Consolidated revenue rose by 5.0 per cent to EUR 83.6 million in the year under review (previous year: EUR 79.5 million). This increase is chiefly attributable to the completion of further in-house developments. Positive changes in value for investment properties amounted to EUR 17.4 million in the year under review (previous year: EUR 18.0 million). Expenses for investment properties rose slightly by EUR 0.5 million to EUR 13.8 million (previous year: EUR 13.3 million). Personnel expenses declined marginally in the reporting period to EUR 3.6 million (previous year: EUR 3.8 million). Other operating expenses came in at EUR 1.8 million (previous year: EUR 1.6 million).

Above-average growth in earnings
Adjusted earnings before interest and tax (EBIT) climbed by 5.5 per cent to EUR 64.4 million in the year under review (previous year: EUR 61.1 million). More favourable financing conditions and a reduction in overall liabilities led to a sharp fall of EUR 3.0 million, or 14.8 per cent, in interest expenses, which declined to EUR 17.4 million (previous year: EUR 20.4 million). This resulted in a significant rise in adjusted earnings before tax (EBT), which climbed by 15.4 per cent to EUR 47.1 million (previous year: EUR 40.8 million). Consolidated net income improved by 9.2 per cent to EUR 53.9 million (previous year: EUR 49.4 million), which is reflected in earnings per share of EUR 1.87 (previous year: EUR 1.71).

Rise in FFO forms the basis for a further dividend increase
Funds from operations (FFO), as an indicator of the company’s operating cash inflow, improved considerably in the year under review, rising by 15.2 per cent to EUR 1.49 per share, compared with EUR 1.30 per share in the previous year. Therefore, the Managing and Supervisory Boards will once again propose a significant dividend increase of 9.1 per cent to EUR 0.60 at the Annual General Meeting.

“Our flexible business model gives us the opportunity to switch between in-house developments and the targeted acquisition of attractive properties,” explains Holger Pilgenröther, CFO of VIB Vermögen. “We are therefore paving the way for future profitable growth at VIB Vermögen, even in a challenging environment.”

Equity ratio increases to 42 per cent
As of the end of the 2017 fiscal year, equity had risen by EUR 39.8 million to EUR 483.4 million (31/12/2016: EUR 443.5 million). The equity ratio rose by 2.2 percentage points to 41.9 per cent (31/12/2016: 39.7 per cent), demonstrating the company’s exceptionally solid financing structure. The net asset value (NAV) of the company rose by 9.0 per cent to EUR 512.5 million as of the balance sheet date (31/12/2016: EUR 470.1 million). Given the number of outstanding shares, it also increased by 9.0 per cent to EUR 18.58 per share (31/12/2016: EUR 17.05 per share).

Portfolio grows to 1.06 million square metres of rentable space
With the completion of three in-house developments in the last year, rentable space has grown to 1.06 million square metres. The vacancy rate stood at a historically low level of 0.8 per cent as of 31/12/2017.

Further profitable growth planned for 2018
For the current financial year, the Managing Board anticipates revenue growth to between EUR 85.0 million and EUR 89.0 million. EBT, before valuation effects and extraordinary items, is expected to reach between EUR 48.0 million and EUR 50.5 million. In terms of funds from operations (FFO), the Managing Board expects a figure between EUR 42.0 million and EUR 44.5 million.

The 2017 Annual Report, as well as a current corporate presentation on the final results for 2017, can be found at www.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 929
86633 Neuburg/Donau Email: ed.ga-biv@trehceir.artep

Profile of 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.