Category: Corporate News

Corporate news
VIB Vermögen expands portfolio with two development projects

– Logistics property in Schwarzenbruck with 9,400 square metres of rentable space to be completed by the end of the year

– 3,700 square metres of office space have been added at Business Park Regensburg

Neuburg/Danube, September 17, 2019 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, is adding new office and logistics space in Schwarzenbruck and Regensburg to its portfolio.

In late 2018, VIB Vermögen completed and fully let an approx. 30,000 square metre logistics facility in the economically strong Nuremberg Metropolitan Region. On account of strong demand, a further logistics facility of approx. 9,400 square metres is being built in a directly adjacent location. The property, which has been fully let prior to completion, will be added to the portfolio at the end of 2019. The project has an investment volume of some EUR 7.2 million.

Two office complexes and a multistorey car park have been added to Business Park Regensburg on a gravel area previously used as a car park. The two office complexes were fully let for attractive rental terms at the start of construction. They boast a combined rentable area of 3,700 square metres, as well as 742 parking spaces in the car park. The investment volume stands at approx. EUR 10.3 million.

“Both projects are classic examples of the sustained growth witnessed in our core region. Alongside classic development projects, redensification at existing sites is a key strategic pillar of further sustainable and profitable growth at the company,” 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 an der Donau Email: ed.ga-biv@trehceir.artep

About VIB Vermögen AG

VIB Vermögen AG is a medium-sized company specialising in commercial real estate management that has been operating successfully for more 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 posts further growth in revenue and profitability in the first half of 2019

– Revenue increases by 5.9 per cent to EUR 45.1 million in the first six months of the year

– Adjusted EBT grows sharply by 10.9 per cent to EUR 27.7 million

– Forecast confirmed for 2019 as a whole

– Publication of the second sustainability report

Neuburg/Danube, August 7, 2019 – VIB Vermögen AG, a company specialising in the
development, acquisition and portfolio management of commercial properties, has once again continued its growth trajectory in the first half of 2019.

Between the beginning of January and the end of June 2019, revenue rose year-on-year from EUR 42.6 million to EUR 45.1 million – an increase of 5.9 per cent. Adjusted EBT even improved by 10.9 per cent, reaching EUR 27.7 million, compared with EUR 25.0 million in the first half of 2018. Consolidated net income climbed by 9.2 per cent year-on-year to EUR 25.1 million. The rise in revenue is chiefly attributable to properties added to the portfolio in the second half of 2018.

During the reporting period, VIB Vermögen acquired two multifunctional logistics/light industry properties: one in the Stuttgart metropolitan region 9,100 square metres and one in southern Thuringia (19,900 square metres), as well as a further Dehner garden centre in Göppingen (10,200 square metres). An office complex, complete with multistorey car park, in Regensburg and the first phase of a logistics property at Interpark near Ingolstadt are currently under construction. Both properties are already fully let and, following completion, will boast a total useful area of some 31,000 square metres.

“We are pleased that, with these attractive property purchases, we have had further success in the area of property acquisition, alongside our core competency of development projects. In an era of high property prices, this pays testament to the considerable expertise and strong
network of VIB in the southern German property market,” explains Holger Pilgenröther, CFO of VIB Vermögen AG.

Broadly diversified property portfolio
As of June 30, 2019, the real estate portfolio of VIB Vermögen consisted of 108 properties with a total rentable area of 1.14 million square metres. Properties in the logistics/light industry
segment account for roughly two thirds of this broadly diversified portfolio, with retail properties making up about 28 per cent and office space/other commercial properties about six per cent. The average remaining term of the rental agreements is comparatively high at 5 years and 3 months. Coming in at 0.7 per cent at the end of the reporting period, the vacancy rate remained extremely low compared with the rest of the industry.

Funds from operations (FFO) from rental activities increased by 10.5 per cent year-on-year to some EUR 24.1 million. FFO per share improved accordingly by EUR 0.08 to EUR 0.87.
In the reporting period, diluted and undiluted NAV (net asset value according to the definition of the European Public Real Estate Association [EPRA]) rose to EUR 586.9 million (December 31, 2018: EUR 560.0 million). NAV per share therefore rose from EUR 20.30 to EUR 21.28.

On the basis of the results to date and the macroeconomic and industry-specific underlying conditions, the Managing Board of VIB Vermögen confirms its forecasts for the 2019 financial year as a whole made in the 2018 Annual Report.

The full 2019 Half-Year Report can be accessed at www.vib-ag.de.

Furthermore, VIB Vermögen has published its second sustainability Report. This report explains the focus of the company with regard to economic, ecological and social action. In addition, this report also includes new aspects of sustainability that have emerged in the course of the past 12 months as a result of the exchange with the stakeholders.

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 an der Donau Email: ed.ga-biv@trehceir.artep

About 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.

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

• Dividend climbs by almost 9 per cent to EUR 0.65 per ordinary share
• Actions of the Managing and Supervisory Boards officially approved by an overwhelming majority
• Considerable approval for the conversion to registered shares
• Resolution approved to increase the size of the Supervisory Board to four members
• Former Chief Executive Officer Ludwig Schlosser elected to the Supervisory Board

Neuburg/Danube, July 5, 2019 – Around 56.4 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 portfolio management of commercial properties. As expected, the actions of the members of the Managing and Supervisory Boards in the 2018 financial year were officially approved by a significant majority of the shareholders.

Dividend of EUR 0.65 per ordinary share approved
The joint proposal by the Managing and Supervisory Boards to distribute a dividend of EUR 0.65 per ordinary share with dividend rights for the 2018 financial year (previous year: EUR 0.60) was also met with widespread approval. Based on the share price on December 31, 2018, this corresponds to a dividend yield of some 3 per cent. Therefore, the company will be distributing almost EUR 18 million amongst the 27,579,779 shares with dividend rights.

“We are delighted that 2018 was a double anniversary year. Not only did it see the 25th anniversary of the company, but also the tenth consecutive dividend increase,” explained Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG, speaking to shareholders. “The other agenda items, i. e. the conversion to registered shares, the expansion of the Supervisory Board to four members and the election of the company founder to the Supervisory Board, are further milestones for our company. We are very pleased that we were able to win the approval of the shareholders for this.”

Contact

Investor Relations:

VIB Vermögen AG
Petra Riechert
Tilly-Park 1
86633 Neuburg an der Donau
Tel.: +49 (0)8431 9077 952
Fax: +49 (0)8431 9077 929
Email: ed.ga-biv@trehceir.artep

About VIB Vermögen 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 acquires a logistics/light industry property in southern Thuringia for EUR 16.9 million

Neuburg/Danube, July 2, 2019 – VIB Vermögen AG, a company specialising in the development, acquisition and management of commercial properties, has added an extremely attractive logistics/light industry property to its portfolio.

The property has been acquired via a sale-and-lease-back share deal with our third-largest tenant. The property in southern Thuringia boasts some 19,500 square metres of rentable space, split between three separate areas, with the rental agreement term of ten years bolstering the excellent, long-term partnership. Thanks to its strategically favourable location just off the A9 motorway, the site is ideal for Europe-wide distribution logistics. The total investment volume stands at approx. EUR 16.9 million. On account of the plot size of more than 74,000 square metres, the project also offers the potential for subsequent redensification.

“Having already successfully renewed the rental agreements with our two largest tenants, we are now delighted to be building on the long-term commercial relations with our third-largest tenant,” explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG. “The trust on which our partnership is based is underscored by the fact that the vendor of the property will remain involved in the project as a co-investor holding some ten per cent.”

Contact

Investor Relations:
VIB Vermögen AG
Petra Riechert
Tilly-Park 1
86633 Neuburg/Donau
Tel.: + 49 (0)8431 9077-952
Fax: + 49 (0)8431 9077-929
E-Mail: ed.ga-biv@trehceir.artep

About 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.

VIB and WDP evaluating the potential for joint developments of logistics properties in North Rhine-Westphalia, Bremen and Hamburg

Neuburg/Danube, June 6, 2019 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, and WDP, a developer and portfolio manager of logistics properties in Benelux, have signed an LOI with a view to evaluating joint expansion of their logistics portfolios. The target region for investments comprises North Rhine-Westphalia, Bremen and Hamburg.

Targeted investments in the aforementioned regions represent a sensible expansion in terms of offering the companies’ tenants wider geographic coverage. It is planned to make the investments under the auspices of a joint venture in which each of the two companies will hold a 50 per cent stake. The intention is that the investments will be completed in accordance with the current “develop-or-buy-and-hold” strategy in the logistics/light industry segment. VIB Vermögen, which has been operating on the German property market for more than 25 years and whose portfolio predominantly includes properties in southern Germany, will grow in the north of the country as a result, whereas the geographic presence of the WDP portfolio will extend eastward.

“By expanding our regional focus beyond our existing core region of southern Germany, we are generating potential for further sustainable and profitable growth. This partnership between two successful European real estate companies fosters regional expansion by pooling development expertise and a mutually complementary customer base,” explains Martin Pfandzelter, CEO of VIB Vermögen AG.

“We firmly believe that extending our core region through expansion into Germany is the right move in terms of meeting our customers’ needs. And it is supported by our strategy of forging long-term partnerships with new and existing customers,” adds Joost Uwents, CEO of WDP.

Contact

Investor Relations:

VIB Vermögen AG
Petra Riechert
Tilly-Park 1
86633 Neuburg an der Donau
Tel.: +49 (0)8431 9077 952
Fax: +49 (0)8431 9077 929
Email: ed.ga-biv@trehceir.artep

About 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 acquires and develops a logistics/light industry property in Ehningen for EUR 7.5 million

Neuburg/Danube, May 23, 2019 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, is adding a versatile logistics/light industry property in Ehningen, Baden-Württemberg, to its property portfolio.

The property boasts a rentable area of approx. 9,100 square metres. It is located directly within the growth region of Stuttgart, making it attractive to a broad spectrum of potential tenants. What’s more, the logistics facility is currently being renovated to meet the very latest standards, with VIB expecting completion by the end of the year. Alongside the renovation work, negotiations are also under way with numerous potential tenants.

“Our mission is to tap into further economically strong locations by continuously expanding our property portfolio. This project exemplifies the considerable in-house expertise at VIB when it comes to combining acquisitions with targeted development in a way that generates further value added for our company and our shareholders,” explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.

Contact

Investor Relations:
VIB Vermögen AG
Petra Riechert
Tilly-Park 1
86633 Neuburg an der Donau
Tel.: +49 (0)8431 9077 952
Fax: +49 (0)8431 9077 929
Email: ed.ga-biv@trehceir.artep

About 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 confirms the positive growth trends for revenue and profitability in the first quarter of 2019

– Revenue increases by 5.9 per cent to EUR 22.5 million in the first quarter

– Adjusted EBT grows more sharply by 11.1 per cent to EUR 13.9 million

– Promissory note loans totalling EUR 42.5 million successfully placed

– Outlook for full-year 2019 confirmed

Neuburg/Danube, May 15, 2019 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, continued the positive trends for revenue and profitability during the first three months of the 2019 financial year. Between January and March 2019, revenue increased from EUR 21.3 million in the previous-year period to EUR 22.5 million and adjusted EBT increased from EUR 12.5 million to EUR 13.9 million. Consolidated net income therefore also increased by 10.6 per cent to EUR 11.6 million. The main reasons for this are the additional rental income from new properties in the portfolio and the further reduction in interest expenses.

“The significant drivers of our good start to the new financial year are the continuous investments in development projects,” explains Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG. “The favourable interest rates of our promissory note loan, which we recently placed
successfully, will also make a contribution. Thanks to the high demand, we were able to increase the originally planned volume of EUR 30 million up to EUR 42.5 million. The additional funds will help us in continuing our successful course of profitable growth.”

High-quality and structurally balanced portfolio
As of March 31, 2019, the real estate portfolio of VIB Vermögen consisted of 108 properties with a total rentable area of 1.12 million square metres. At 0.6 per cent, the vacancy rate remained at a very low level compared to the rest of the industry. During the reporting period, funds from operations (FFO) from rental activities totalled EUR 12.1 million, an increase of 11.9 per cent, or EUR 1.3 million. FFO per share also increased accordingly in the first quarter from EUR 0.39 to EUR 0.44.

In the reporting period, diluted and undiluted NAV (net asset value according to the definition of the European Public Real Estate Association (EPRA)) rose by 2.1 per cent to EUR 572.0 million (December 31, 2018: EUR 560.0 million). This is also reflected in the NAV per share, which rose from EUR 20.30 to EUR 20.74 per share.

On the basis of the results to date and the macroeconomic and industry-specific underlying conditions, the Managing Board of VIB Vermögen confirms its forecasts for the 2019 full financial year as made in the 2018 Annual Report.

The full interim report for the first quarter of 2019 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/Danube, Germany Email: ed.ga-biv@trehceir.artep

About 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.

2018 financial results

VIB Vermögen confirms record result and plans further dividend increase

– Revenue rises by 3.9 per cent to EUR 86.8 million

– Adjusted EBT grows by 9.9 per cent to EUR 51.7 million

– Tenth consecutive dividend increase proposed

– Revenue and earnings growth set to continue in 2019

Neuburg/Danube, April 30, 2019 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, closed its 25th anniversary year with an outstanding set of results. The interim IFRS consolidated figures for the 2018 financial year, which have already been published, have thus been confirmed. During the reporting period, revenue rose by 3.9 per cent to EUR 86.8 million (previous year: EUR 83.6 million). This increase is chiefly attributable to higher rental incomes from properties that were completed during the 2018 financial year. Furthermore, the properties handed over to their tenants during the 2017 financial year – and which now generated a full year’s rental income for the first time – made a significant revenue contribution.

Positive changes in value for investment properties amounted to EUR 19.5 million in reporting period (previous year: EUR 17.4 million). Expenses for investment properties climbed to EUR 15.0 million (previous year: EUR 13.8 million). Personnel expenses at the Group rose slightly from EUR 3.6 million to EUR 3.7 million. Other operating expenses, on the other hand, remained on a par with the prior-year level at EUR 1.8 million.

Sharp climb in earnings
Adjusted earnings before interest and tax (EBIT) climbed by 4.7 per cent year-on-year to EUR 67.5 million (previous year: EUR 64.4 million). Thanks to the continued favourable financing conditions, the interest expense also fell by almost EUR 2 million to EUR 15.6 million (previous year: EUR 17.4 million). When adjusted for valuation effects, earnings before tax rose sharply by 9.9 per cent, or EUR 4.7 million, to EUR 51.7 million (previous year: EUR 47.1 million). Consolidated net income improved accordingly, coming in at EUR 59.9 million in 2018 (previous year: EUR 53.9 million). This equates to an increase of 11 per cent. Given the 27.6 million shares, it also corresponds to very pleasing earnings per share of EUR 2.09 (previous year: EUR 1.87).

Equity reached EUR 527.6 million as of December 31, 2018. This equates to a rise of EUR 44.2 million compared to the balance sheet date of the previous year (31/12/2017: EUR 483.4 million). The equity ratio also rose again and stood at 42.7 per cent as of the end of 2018 (31/12/2017: 41.9 per cent).

“VIB Vermögen celebrated its 25th anniversary in the 2018 financial year. The results achieved in the reporting period offer further cause for celebration. At the same time, they represent an endorsement of the strategy underpinning our business model, which draws on in-house developments and the acquisition of existing properties as the keys to sustainable and targeted growth,” remarks Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.

Further improvement in key property portfolio figures
Our broadly diversified portfolio, which also performed strongly in the 2018 financial year, forms the cornerstone of our outstanding financial results. The VIB Vermögen portfolio comprised 108 properties at the end of the reporting period (previous year: 105), with a rentable area of more than 1.1 million square metres and a market value of some EUR 1.2 billion. The net asset value (NAV) of the company rose to EUR 560.0 million as of December 31, 2018 (31/12/2017: EUR 512.5 million). Given the number of outstanding shares, it increased by 9.2 per cent to EUR 20.30 per share (31/12/2017: EUR 18.58 per share). Funds from operations (FFO), as an indicator of the company’s operating cash inflow, improved considerably in the year under review, rising by 10 per cent to EUR 1.64 per share, compared with EUR 1.49 per share in the previous year.

Further dividend increase planned
The Managing and Supervisory Boards of VIB Vermögen will once again propose a dividend increase to the Annual General Meeting. The intention is to increase the dividend by EUR 0.05, or 8.3 per cent, to EUR 0.65 per share (previous year: EUR 0.60 per share).

“We are delighted that we can once again enable our shareholders to benefit from our success; together with the Supervisory Board, we will be proposing a dividend increase to the Annual General Meeting for the tenth time in a row. We are also confident that we will be able to further increase our key financial indicators in the current year,” explains Holger Pilgenröther, Chief Financial Officer of VIB Vermögen.

Profitable growth set to continue in 2019
The Managing Board anticipates that VIB Vermögen in-house developments in 2019 will lead to a further increase in revenue and profitability. They expect revenue of between EUR 88.5 million and EUR 92.5 million . Excluding valuation effects and extraordinary items, EBT is expected to reach a level of between EUR 52.0 million and EUR 54.5 million. Finally, the Managing Board anticipates that funds from operations (FFO) will climb to a level of between EUR 45.5 million and EUR 48.0 million in the 2019 financial year.

The 2018 Annual Report, as well as a current corporate presentation, are available for download 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 an der Donau Email: ed.ga-biv@trehceir.artep

About 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 places promissory note loan in the amount of EUR 42.5 million

– Issue proceeds to fund further growth at the company

– Average interest rate for the total volume stands at a very attractive 1.03 per cent

Neuburg/Danube, April 2, 2019 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, has placed a promissory note loan in the amount of EUR 42.5 million. The envisaged issue volume originally stood at EUR 30.0 million and was successfully increased to EUR 42.5 million due to strong investor demand. VIB Vermögen AG will use the proceeds to fund its further project-based growth.

The promissory note was offered in conjunction with the banks BayernLB and Kreissparkasse Biberach in two fixed-term tranches. The first tranche is worth EUR 18.5 million and has a term of eight years. The second tranche amounts to EUR 24 million and has a term of five years. With an average interest rate of 1.03 per cent, the promissory note loan contributes to the optimum financing mix on the debt financing side.

“The success of our company is, to a considerable degree, based on sustainable financing. Promissory note loans are flexible and represent the perfect complement to traditional annuity loans. We were able to secure the highly attractive interest rate by virtue of our solid financing structure and the relations with our banking partners that we have nurtured over many years. At the same time, we are delighted with the trust placed in our company by the underwriters of the promissory note loan”, explains Holger Pilgenröther, Chief Financial 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/Donau E-Mail: ed.ga-biv@trehceir.artep

About 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.

2018 interim results

VIB Vermögen continues profitable growth course and plans a further dividend increase

– Revenue increases by 3.9 per cent to EUR 86.8 million

– Adjusted earnings before tax (EBT) rise sharply by 9.9 per cent to EUR 51.7 million

– Dividend set to increase for the tenth time in a row, with a proposed dividend of EUR 0.65 per share

– Continued growth in revenue and earnings expected for 2019

Neuburg/Danube, March 27, 2019 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, closed its 25th anniversary year with another record result. Interim IFRS figures for the Group indicate that revenue increased by 3.9 per cent to EUR 86.8 million (previous year: EUR 83.6 million) in the 2018 financial year. This rise was chiefly driven by additional rental income from properties completed in the 2018 financial year. Furthermore, the properties handed over to tenants during the 2017 financial year made a significant revenue contribution, generating a full year’s rental income for the first time.

Positive changes in value for investment properties amounted to EUR 19.5 million in the year under review (previous year: EUR 17.4 million). Expenses for investment properties climbed to EUR 15.0 million (previous year: EUR 13.8 million). Personnel expenses at the Group rose slightly from EUR 3.6 million to EUR 3.7 million. Other operating expenses remained stable at EUR 1.8 million (previous year: EUR 1.8 million).

Sharp climb in earnings
Thanks to the continued favourable financing conditions, the interest expense fell by almost EUR 2 million to EUR 15.6 million (previous year: EUR 17.4 million). When adjusted for valuation effects, earnings before tax rose sharply by 9.9 per cent, or EUR 4.7 million, to EUR 51.8 million (previous year: EUR 47.1 million). Consolidated net income improved accordingly, coming in at EUR 59.9 million in 2018 (previous year: EUR 53.9 million). This equates to an increase of 11 per cent. Given the 27.6 million shares, it also corresponds to earnings per share of EUR 2.09 (previous year: EUR 1.87).

As of December 31, 2018, equity stood at EUR 527.6 million, which was EUR 44.2 million higher than the prior-year date (31/12/2017: EUR 483.4 million). The equity ratio rose again and now stands at 42.7 per cent (31/12/2017: 41.9 per cent).

“VIB Vermögen celebrated its 25th anniversary in the 2018 financial year. It is therefore fitting that we have posted yet another excellent result. These figures provide further endorsement of our strategy of sustainable and targeted growth on the basis of a flexible business model,” remarks Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG. “With our high-quality portfolio of existing properties and an attractive pipeline for future projects, we believe that we are well positioned in a demanding market environment,” adds Pfandzelter.

Further improvement in key property portfolio figures
The VIB Vermögen portfolio comprised 108 properties at year end (previous year: 105). The net asset value (NAV) of the company rose to EUR 560.0 million as of December 31, 2018 (31/12/2017: EUR 512.5 million). Given the number of outstanding shares, it increased by 9.2 per cent to EUR 20.30 per share (31/12/2017: EUR 18.58 per share). Funds from operations (FFO), as an indicator of the company’s operating cash inflow, improved considerably in the year under review, rising by 10 per cent to EUR 1.64 per share, compared with EUR 1.49 per share in the previous year.

Further dividend increase planned
The Managing and Supervisory Boards of VIB Vermögen will once again propose a dividend increase to the Annual General Meeting. The intention is to increase the dividend by EUR 0.05, or 8.3 per cent, to EUR 0.65 per share (previous year: EUR 0.60 per share).

“VIB is benefiting from the expansion of its portfolio and a continued favourable financing environment. This is reflected directly in our funds from operations and our earnings figures. We are also enabling our shareholders to benefit, which is why the Managing and Supervisory Boards will be proposing a dividend increase to the Annual General Meeting for the tenth time in a row,” explains Holger Pilgenröther, CFO of VIB Vermögen.

In-house developments driving growth in 2019
Multiple large-scale in-house developments at VIB Vermögen will lead to growth in rentable space as well as rising rental income in 2019.
The Managing Board of VIB Vermögen anticipates a further increase in revenue and profitability for the current financial year. Revenue of between EUR 88.5 million and EUR 92.5 million is expected. Excluding valuation effects and extraordinary items, EBT is expected to reach a level between EUR 52.0 million and EUR 54.5 million. FFO (funds from operating activities) is expected to rise to between EUR 45.5 million and EUR 48.0 million in the 2019 financial year.

The company will publish its final results for the 2018 financial year together with the 2018 Annual Report on April 30, 2019. A company presentation with details of the 2018 interim results 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 an der Donau Email: ed.ga-biv@trehceir.artep

About 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.