Author: Noel Schmitt

Corporate news

Addition of three in-house developments in the first nine months drives further growth at VIB Vermögen

– Revenue climbs by 3.8 per cent in the first nine months year-on-year to EUR 64.4 million

– Adjusted EBT rises by 8.4 per cent, reflecting a further increase in profitability

– Portfolio strengthened by three new in-house developments with an investment volume of EUR 41.3 million

– Guidance confirmed for the 2018 financial year

Neuburg/Danube, November 7, 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, increased its revenue to EUR 64.4 million – and improved its consolidated net income by 19.2 per cent to approximately EUR 38.1 million – in the first nine months of 2018. This positive development is chiefly attributable to higher earnings from new properties associated with development projects, which also made a positive contribution of EUR 7.4 million to the valuation result. Declining interest expenses on existing loans represented another factor in this regard.

With the aforementioned increases, VIB further improved its profitability. When adjusted for valuation effects and extraordinary items, EBT increased by approximately EUR 3.0 million year-on-year, amounting to just under EUR 38.0 million.

Outstanding results thanks to a diversified and profitable property portfolio
As of the balance sheet date of September 30, 2018, the VIB Vermögen property portfolio comprised 108 properties with total rentable space of more than 1.12 million square metres. During the reporting period, these properties generated FFO (funds from operations) – an indicator of the company’s cash inflow from operating activities – of approximately EUR 33.2 million. This equates to an increase of EUR 2.6 million, or 8.5 per cent, on the prior-year period. FFO per share improved accordingly from EUR 1.11 to EUR 1.20. By virtue of the pleasing course of business, the undiluted net asset value (NAV) of the company climbed to EUR 536.3 million as of September 30, 2018 (December 31, 2017: EUR 512.5 million). Taking the total number of shares, NAV per share has increased by 4.6 per cent from EUR 18.58 to EUR 19.45 since the start of the year.

“In particular, the continued positive trend in all financial indicators at VIB is due to the completion and successful letting of in-house development projects, coupled with the ongoing reductions in interest expenses on existing loans,” explains Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG, adding: “For our sustainable growth strategy, we have a property pipeline with a potential floor space of a further 155,000 square metres. “

During the year under review, VIB Vermögen has already completed three in-house developments with a total investment volume of EUR 41.3 million and incorporated them into the portfolio. With a total useful area of 56,300 square metres, these logistics and light industry properties will contribute total net basic rents of approximately EUR 3.4 million a year to the revenue of the VIB Group.
 

On the basis of the results to date and the macroeconomic and industry-specific underlying conditions, the Managing Board of VIB Vermögen confirms the guidance for the 2018 financial year as a whole made in the 2017 Annual Report.

The full interim report for the first nine months of 2018 can be accessed 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

VIB Vermögen AG is a medium-sized company specialising in commercial real estate management that has been operating successfully for 25 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.

Corporate news
VIB Vermögen reports completion and full occupancy of a 31,000 square metre site in Schwarzenbruck

Neuburg/Danube, October 25, 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and management of commercial properties, has added a further multi-
functional property in an attractive location to its portfolio.

In total, the multifunctional logistics property boasts a rentable useful area of approximately 31,000 square metres. The facility is fully let on a long-term basis to two users from the logistics and e-commerce sectors. With an investment volume of around EUR 20 million, the property is generating a net initial yield of approximately 8.5 per cent.

“We are delighted that we have completed yet another development project on time and on budget. This project is further proof of our development and letting expertise and is a perfect fit with our corporate strategy,” explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.
 

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/Danube Email: ed.ga-biv@trehceir.artep

Profile of VIB Vermögen AG

VIB Vermögen AG is a medium-sized company specialising in commercial real estate management that has been operating successfully for 25 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.

Corporate news

VIB launches major new development project at Interpark by fully letting the first construction phase

Neuburg/Danube, September 24, 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, has concluded a long-term rental agreement with a leading carmaker from the region for the first construction phase of its largest reserved plot at the Interpark industrial estate near Ingolstadt.

The roughly 27,500 square metres of rental space, which are being developed on an existing site measuring some 113,000 square metres in total, represent the first stage of the entire development. Construction is scheduled to start in the fourth quarter of 2018, with the company anticipating the completion of the first construction phase in the fourth quarter of 2019.The investment volume for the state-of-the-art facility, which is suitable for logistics and light industry, amounts to about EUR 25 million.

“We are delighted to have got the development of the Zeppelinstrasse site at Interpark off the ground by fully letting the first construction phase. We are currently examining a range of options in order to find an attractive solution that will ensure sustainable use of the remainder of the site,” explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.

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/Danube 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 25 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.

Corporate news

VIB Vermögen honoured with the “Most Improved Annual Report” and a prize in the Gold category at the EPRA Awards

Neuburg/Danube, September 19, 2018 – VIB Vermögen was one of the companies that showed the greatest improvement in the implementation of the so called ‘EPRA Best Practice Recommendations’ in its financial reporting at this year’s EPRA Awards and additionally won the much-coveted prize in the Gold category.

Every year, the financial experts at the European Public Real Estate Association (EPRA) analyse the quality of the financial reports of Europe’s major listed property companies. This year, the Association assessed 155 companies in conjunction with audit firm Deloitte. The basis for analysing the reports is their compliance with EPRA guidelines on quality and comparability of reporting, known as the “Best Practice Recommendations”. The considerable importance of these criteria is reflected in the increasing number of companies who report in accordance with them.

“We are delighted by the recognition shown by the EPRA and by the Gold Award. VIB Vermögen has always attached great importance to transparent, high-quality reporting. The positive assessment issued by these independent experts serves to strengthen our commitment to this goal,” says Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG, commenting on this year’s Award.

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/Danube 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 than 25 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.

Corporate news

VIB Vermögen extends rental agreement with leading sporting goods manufacturer in respect of 30,200 square metres

Neuburg/Danube, 6. September 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, has prematurely extended the rental agreement for the property in Uffenheim in the greater area of Würzburg by five years to the end of 2024.

The logistics facility, which is conveniently located near the A7 motorway, was acquired and added to the VIB portfolio in October 2016 – and is let to an international renowed manufacturer of sporting goods. The early extension of the rental agreement is another positive example of the business strategy, which involves administering and managing the properties of the VIB Group portfolio in-house.

“The successful tenancy extension is mainly attributable to our proactive in-house management
associated with the close contact to our tenants. Alongside our expertise in the development and acquisition of properties, managing our portfolio by ourselves has again proofen to be the right strategy”, explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.

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/Danube 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.

Corporate news

VIB Vermögen further increases property portfolio and profitability in the first half of 2018

– Revenue rise of 3.5 per cent to EUR 42.6 million thanks to portfolio expansion

– Further increase in profitability, with sharp climb of 8.3 per cent in adjusted EBT

– Outlook for the 2018 financial year confirmed
 

Neuburg/Danube, August 8, 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and management of commercial properties, has closed the first half of 2018 with significant increases in revenue and earnings. This trend was driven by the letting of new properties arising from development projects, as well as the ongoing decline in interest expenses on existing borrowings. As a result, FFO (an indicator used in the property sector) and adjusted EBT rose more sharply than revenue.

Following new additions to the portfolio and rent adjustments due to indexing, revenue rose by 3.5 per cent year-on-year to EUR 42.6 million (previous year: EUR 41.1 million). When adjusted for valuation effects and extraordinary items, EBT came in at EUR 25.0 million (previous year: EUR 23.0 million), which represents a considerable increase of 8.3 per cent. Consolidated net income rose by 5.0 per cent to EUR 22.9 million in the first half of the year (previous year: EUR 21.8 million).

“The first half of 2018 was extremely pleasing for VIB Vermögen. With the new additions to our portfolio, we are benefiting from our strategy of making good use of in-house developments in the current market environment. At the same time, our long-term financing strategy, which continues to result in lower interest expenses, is paying off in terms of our borrowings,” explains Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG.
 

An attractive and profitable property portfolio
As of June 30, 2018, the VIB Vermögen property portfolio comprised 105 properties with rentable space of approximately 1.07 million square metres. The FFO (funds from operations) generated from it, which serves as an indicator of the company’s cash inflow from operating activities, climbed by 9.1 per cent to EUR 21.8 million euros in the first half of 2018 (previous year: EUR 20.0 million). FFO per share improved accordingly from EUR 0.72 to EUR 0.79. By virtue of the pleasing course of business, the undiluted net asset value (NAV) of the company climbed to EUR 536.5 million as of June 30, 2018 (December 31, 2017: EUR 512.5 million). Taking the total number of shares, undiluted NAV per share increased by 4.7 per cent from EUR 18.58 to EUR 19.45. The vacancy rate remains unchanged at its low level of 0.8 per cent.

At VIB Vermögen, three new developments, as well as a redensification development on an existing site, are currently under construction. All four projects are in-house developments and will add some 57,000 square metres of rental space to the portfolio. Two of the new developments have been fully let prior to completion and will be handed over to their tenants in the next few weeks. One third of the remaining new development has already been let, and construction is scheduled for completion in the fourth quarter of 2018. The redensification project is being completed on an existing site in the Regensburg area and comprises the construction of two office complexes. Completion is scheduled for the fourth quarter of 2019.

In addition, the burgeoning site pipeline of VIB Vermögen totals some 170,000 square metres for potential new development projects. Whilst property acquisitions are also conceivable, these depend on the further development of prices.

“The market for logistics properties remains extremely attractive. In this regard, southern Germany represents an outstanding location in the heart of Europe. With in-house developments on new sites and the redensification of existing sites, we are able to tap into considerable potential when it comes to further optimising our portfolio with attractive properties in the future. This also reduces our exposure to the high purchase prices of existing properties,” emphasises Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.

On the basis of the results to date and the planned course of business, VIB Vermögen confirms its guidance for the 2018 financial year as a whole made in the 2017 Annual Report.

The full 2018 Half-Year Report can be accessed 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.

Corporate news

VIB Vermögen lets some 6,500 square metres at Interpark to a leading South Korean conglomerate

Neuburg/Danube, August 01, 2018 – VIB Vermögen AG will complete two in-house developments – one in Vaihingen an der Enz and one at Kopernikusstrasse 2 at Interpark – on time and on budget as of September 01, 2018. Following the successful marketing of the last-remaining free space, both properties will enter the portfolio fully let.

Kopernikusstrasse 2 at Interpark, a superb logistics location with excellent transport links, has approximately 13,700 square metres of rental space and an investment volume of around EUR 9.8 million. Construction began with the pre-letting of around 7,200 square metres, with the tenant a medium-sized production company. A logistics facility in Vaihingen an der Enz was built for the same tenant with some 11,800 square metres of rentable space and an investment volume of approximately EUR 10.9 million.

Prior to completion, VIB Vermögen AG has successfully let the roughly 6,500 square metres of remaining space at Kopernikusstrasse 2, Interpark, to a leading South Korean conglomerate, meaning that both properties are now fully let on a long-term basis.

Together, the two properties boast some 25,500 square metres of rentable space and will generate an average initial yield of about 7.7 per cent on an investment volume of around EUR 20.7 million.

“The fact that both properties have been fully let prior to completion underscores not only the highly attractive nature of the two locations, but also the considerable in-house development expertise of VIB Vermögen. Our burgeoning site pipeline will continue to enable us to focus on – and successfully implement – in-house developments,” explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.

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/Danube 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.
 

Corporate News

Annual General Meeting of VIB Vermögen AG resolves to increase the dividend for the ninth time in a row

– Dividend increasing by nine per cent to EUR 0.60 per ordinary share

– Actions of the Management Board and Supervisory Board officially approved by a significant majority

– Ernst & Young appointed the new auditor
 

Neuburg/Danube, June 29, 2018 – Around 57.4 per cent of the voting-entitled capital was represented at this year’s Annual General Meeting of VIB Vermögen AG, a company specialising in the development, acquisition and management of commercial real estate. As expected, the actions of the members of the Management Board and Supervisory Board in the 2017 financial year were officially approved by a significant majority of the shareholders.

Dividend of EUR 0.60 per ordinary share approved
The joint proposal by the Management Board and Supervisory Board to distribute a dividend of EUR 0.60 per ordinary share with dividend rights for the 2017 financial year was also met with widespread approval (previous year: EUR 0.55 per share). Based on the share price on December 31, 2017, this corresponds to a dividend yield of 2.8 per cent. Therefore, the company will be distributing over EUR 16.5 million amongst the 27,579,779 shares with dividend rights. This means that, since its incorporation, VIB Vermögen has paid a dividend to its shareholders every year and even increased the amount nine times in a row.

“We are happy to have enabled our shareholders to share in the success of our company again this year with an even higher dividend. With our business model, we are able to adapt to changes in the general conditions very well”, explained Martin Pfandzelter, CEO of VIB Vermögen AG, to the shareholders. VIB focuses on the in-house development, the acquisition of attractive properties and in addition the strategic expansion of its pipeline for future projects. Beside global influences, the company has to monitor factors such as property prices, interest rates, rents, construction costs and the creditworthiness of tenants. Only a company that brings these components together perfectly can operate so successfully. VIB Vermögen is therefore also well positioned for future growth and further increases in profitability.

Finally, the Annual General Meeting also accepted the proposal of the Supervisory Board to appoint the auditing firm Ernst & Young to audit the annual and consolidated financial statements for the 2018 financial year and review the interim reports. The change took place in order to meet the transparency requirements of the capital market.

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/Danube 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.

Corporate news

VIB Vermögen adds 33,500 square metres to its property portfolio

– Infill development of office space in a portfolio property in Business Park Regensburg

– Construction of a logistics facility near Nuremberg

Neuburg/Danube, June 28, 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and management of commercial properties, is adding another 33,500 square metres of new office and logistics space to its portfolio.

The company recently started adding around 3,500 square metres of space to an existing property in Business Park Regensburg as infill development in two additional office buildings on existing ground. Around 95 per cent of the new office spaces at the in-demand location are already being leased to three long-term tenants. The construction of the bulding is due to finish in the fourth quarter of 2019. On the basis of the parameters, the project is expected to have an initial yield of around 7.5 per cent.

The second real estate project is the construction of a logistics facility that is due to be completed in the fourth quarter of this year. Situated in Schwarzenbruck in the vicinity of the booming city of Nuremberg, the property will have a total lettable area of around 30,000 square metres. Already before completion, a tenant from the logistics sector was won for around one third of the rental space, who intends to set up a business and administrative headquarters at this location in order to profit from the economic power of the Nuremberg metropolitan region. The initial yield of this project will be around 8.5 per cent.

“The realisation of the two real estate projects – infill development and a new build – is consistent with our business model whereby we are flexible enough to react to the conditions of the markets. It has proven itself once again here”, says Martin Pfandzelter, CEO of VIB Vermögen AG.

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/Danube 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.