Author: Noel Schmitt

• All targets were achieved or partly exceeded
• Funds from operations (FFO) increased by around 10% to EUR 79.5 million
• Gross rental income rises to EUR 88.9 million
• Persistently low vacancy rate of 3.5 % as proof of high real estate quality
• Office asset class successfully established as a second and diversifying source of income
• Guidance for 2025: further significant increase in gross rental income to EUR 101-105 million planned, FFO between EUR 78-82 million expected

Neuburg/Danube, 12 March 2025. VIB Vermögen AG (“VIB“), a company specializing in the development, acquisition and management of commercial real estate, can look back on a successful fiscal year 2024. In a persistently challenging environment VIB was able to once again demonstrate the resilience of its business model. On the one hand, this was largely driven by the good performance of the logistics and light industrial asset class, which has been well established for many years. On the other hand, the company has successfully strengthened the office asset class, significantly enhancing the diversification of its overall portfolio.

FFO above guidance, gross rental income at the upper end of expectations

In 2024, the gross rental income amounted to EUR 88.9 million. This was at the upper end of the guidance of EUR 85 to 89 million, which was increased during the year, and above the previous year’s level (EUR 86.9 million). The increase is attributable to the valuable acquisitions and rent indexations, which overcompensated the property sales realized in 2024. Funds from operations before taxes and minority interests (FFO) rose significantly by around 10% to EUR 79.5 million (previous year: EUR 72.6 million), exceeding slightly the guidance of EUR 74 to 78 million raised in August 2024. The vacancy rate of 3.5% in the proprietary portfolio also reflects the expectations of the Management Board and is at a very low level compared to the industry as a whole – a proof of the high quality of the properties and VIB’s excellent asset management.

To finance the upcoming investments and project developments, the Management Board and Supervisory Board of VIB plan to propose a minimum dividend of EUR 0.04 per share to the Annual General Meeting and to retain the majority of the retained earnings for future growth.

Expansion of the office asset class reflected in a balanced portfolio structure

As at December 31, 2024, the portfolio of VIB Group consisted of a total of 153 properties with a total value of EUR 3.1 billion and a cumulative rental space of 2.04 million m². The acquisitions made in the office asset class in the past year are also reflected in the increasingly balanced portfolio structure in the proprietary portfolio (79 properties, market value of EUR 1.7 billion, rental space of 0.89 million m²). In terms of rental income, properties in the logistics and light industrial asset class accounted for 51.6% of the proprietary portfolio in 2024 and office properties for 41.1%. The remainder is divided between retail properties (6.1%) and commercial buildings or other properties (1.2%). Hence, the VIB Group successfully continued its diversification strategy in 2024 and is now very well positioned for the future with two highly profitable asset classes.

In addition to the acquisitions made, VIB took advantage of the increase in market demand and also selectively sold properties in the logistics and light industrial asset class. As part of the diversification strategy, this has not only contributed to a balanced real estate portfolio, but also to attractive gains from these sales. This confirms the value creation in respect of VIB`s 360-degree-approach.

The “Institutional Business” segment, i.e. the management of real estate properties for institutional investors, also established itself well in 2024. With income totaling EUR 7.2 million, this segment also makes an important contribution to diversifying the VIB Group’s business strategy.

VIB starts the new year confidently – significant increase in gross rental income planned for 2025

“2024 was a successful year for VIB, during which we laid the foundation for future value creation. We have significantly broadened our portfolio by strengthening the office asset class. This, and the expectations of a brightening sentiment in the real estate sector, make us optimistic about the coming quarters,” comments Dirk Oehme, Speaker of the Board of VIB. For the current financial year, the Management Board expects a significant increase of gross rental income to between EUR 101 and 105 million. Funds from operations (FFO) are forecasted to range between EUR 78 and 82 million. The vacancy rate is expected to remain in the low single-digit percentage range.

The 2024 Annual Report and a current company presentation are available for download at https://vib-ag.de/.

About VIB Vermögen AG

VIB Vermögen AG is a medium-sized company specializing in the development, acquisition and management of modern and sustainably profitable commercial real estate, which has been operating successfully on the market for more than 30 years. The focus is on real estate in the logistics, light industrial and office asset classes. VIB shares have been listed on the Munich (m:access) and Frankfurt (Open Market) stock exchanges since 2005.

In addition to direct acquisitions, VIB’s broad-based business model also includes the complete spectrum of in-house developments and redensification as part of a 360-degree-approach: On the one hand, VIB Vermögen AG acquires properties that are already let, and on the other hand it develops new properties from scratch in order to incorporate them into its own portfolio on a permanent basis and generate rental income from them. At the same time, sales are part of the overall strategy. In addition, VIB offers comprehensive real estate management services and solutions for institutional investors and holds interests in companies with real estate assets.

More information at www.vib-ag.de

Contact VIB Vermögen AG

Investor Relations:
Tilly Park 1
86633 Neuburg/Danube
Phone: + 49 (0)8431 9077-961
Fax: + 49 (0)8431 9077-1961
ed.ga-biv@ri

Press release

VIB Vermögen AG with a successful first half of 2023 

• Gross rental income of EUR 46 million as planned
• 7 percent increase in funds from operations (FFO) to EUR 37 million
• Consolidated net income up 80 percent to EUR 63 million
• Full-year forecast for 2023 confirmed

Neuburg/Danube, August 3, 2023. VIB Vermögen AG, a company specializing in the development, acquisition and portfolio management of commercial properties, can look back on a successful first half of 2023 in the face of a challenging market environment. Despite the sale of 31 retail properties as of March 31, 2023, gross rental income came to EUR 46.4 million and was, thus, almost on a par with the previous year. This performance was underpinned by the acquisition of logistics and light industrial properties in the second half of 2022 as well as ongoing rental indexing for portfolio properties.

“We are pleased with this high stability in the current difficult market environment. This is reflected in our cash flows and the consistently stable vacancy rate of our portfolio. In conjunction with DIC Asset AG, we are able to additionally build on our strength as a leading powerhouse for logistics. Our new Institutional Business segment promises additional and growing income. We want to actively take advantage of the opportunities arising from the market when it recovers in 2024,” explains Dirk Oehme, Speaker of the Board of VIB.

The real estate portfolio under the VIB Group’s umbrella comprises 158 properties as of 30 June 2023, the largest number in the company’s history. Of these, 83 are held in VIB’s in-house portfolio. A total of 75 properties have been held in the newly created Institutional Business segment since the beginning of the year. In this segment, VIB manages properties for external third parties, particularly institutional investors, generating lucrative property management fees for the company.

The sale of the retail property portfolio and the targeted acquisition of logistics properties in the second half of 2022 have additionally reinforced VIB’s focus as the logistics arm of the DIC Asset Group. Logistics and light industrial properties now account for 91 percent of the VIB Group’s total portfolio.

The real estate assets under management in the in-house portfolio were valued at EUR 2.0 billion as of the reporting date, while those attributable to the Institutional Business segment were valued at EUR 1.4 billion. Accordingly, real estate assets of a total of EUR 3.4 billion and a total floor space of 2.3 million square metres are under management, marking a further record in VIB’s history.

Increase in FFO and consolidated net income, vacancy rate still low

Funds from operations (FFO) before taxes and minority interests increased by 6.7% over the same period in the previous year to EUR 37.3 million, translating into FFO per share of EUR 1.13. Consolidated net income came to EUR 63.4 million, up from EUR 35.2 million in the previous year. This increase was also underpinned by gains from the sale of 31 retail properties to a special real estate fund at the beginning of the year.

The vacancy rate was also encouraging, remaining at a low 1.7% despite the challenging economic conditions in Germany. In this respect, VIB will be continuing its proven strategy of managing its property portfolio in-house through its own employees.

Full-year forecast for 2023 confirmed

In an ad-hoc bulletin published on July 7, 2023, VIB announced that it had signed a new loan agreement with DIC Asset AG. The resulting additional interest income will have a significant positive impact on funds from operations (FFO) as the main earnings indicator. This has prompted the Managing Board to raise the forecast published in the annual report for 2022.

VIB confirms the full-year forecast for 2023 adjusted on July 7, 2023 of gross rental income of between EUR 82.0 and 88.0 million (unchanged; 2022: EUR 93.8 million), funds from operations (FFO) in a range of EUR 68.0 to 74.0 million (previously EUR 58.0 to 64.0 million; 2022: EUR 71.2 million) and a vacancy rate as of December 31, 2023 of a percentage in the low single digits (unchanged; December 31, 2022: 1.4%).

The report on the first half of 2023 and the latest corporate presentation are available at https://vib-ag.de/.

Contact

VIB Vermögen AG
Investor Relations:
Tilly-Park 1
86633 Neuburg/Donau
Tel.: + 49 (0)8431 9077-961
Fax: + 49 (0)8431 9077-1961
E-Mail: ed.ga-biv@llehcs-sednal.ajna

Profile of the VIB Vermögen AG

VIB 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.