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: anja.landes-schell@vib-ag.de
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.
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