Category: Corporate News

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.

VIB Group corporate news: 2018 Q1 interim report

Successful start to the 2018 financial year

– Revenue grows by 4.3 per cent, adjusted EBT climbs sharply by 9.9 per cent

– FFO (funds from operations) rises by 10.4 per cent

– Vacancy rate remains at historically low level of 0.8 per cent

Neuburg/Danube, May 9, 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, has continued its growth trajectory in the first quarter of 2018.

On account of new investments that were incorporated into the portfolio in 2017, revenue rose by 4.3 per cent to EUR 21.3 million in the first three months of the year (previous year: EUR 20.4 million). Due to a further fall in interest expenses, adjusted earnings before tax (EBT) climbed sharply by 9.9 per cent to EUR 12.5 million (previous year: EUR 11.4 million).

FFO, which is an indicator of cash inflow from operating activities, increased by 10.4 per cent to EUR 10.8 million (previous year: EUR 9.8 million). FFO per share came in at EUR 0.39, compared with EUR 0.36 in the previous year. NAV (net asset value), the value of total assets less liabilities, increased by 2.1 per cent compared to the end of the 2017 fiscal year to reach EUR 523 million (31/12/2017: EUR 513 million). Given the number of shares in circulation as of the balance sheet date, NAV per share stood at EUR 18.97, compared with EUR 18.58 as of 31/12/2017.

In-house property management continues to bear fruit in terms of the operational course of business. The vacancy rate, which fell to a historic low of 0.8 per cent as of the end of 2017, remained at this outstandingly low level at the end of the first quarter of 2018. In addition, a new rental agreement was signed for a retail property in Goch with a lettable area of approx. 2,100 square metres. The comprehensively insured property was destroyed in a fire last year. It will now be rebuilt in accordance with the latest requirements and standards by the end of the year. The rental agreement term with the current tenant was extended until the end of 2029 as a result of the rebuild.

On the basis of the results for the first quarter of 2018, VIB Vermögen AG confirms its guidance for the 2018 financial year made in the 2017 Annual Report.

The full interim report for the first quarter of 2018, as well as a current corporate presentation, 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.

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.

2017 preliminary results

Strong earnings increase for VIB Vermögen in 2017

– Revenue up by 5.0% to EUR 83.6 million

– Above-average increase in adjusted earnings before tax (EBT) of 15.4% to EUR 47.1 million

– Guidance for the 2017 fiscal year met in full

– Considerable proposed dividend increase of 9.1% to EUR 0.60 per share

– Further growth in revenue and earnings planned for 2018

Neuburg/Danube, March 21, 2018 – VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, has enjoyed a very successful 2017 fiscal year.

The preliminary IFRS consolidated figures show that revenue rose by 5.0% to EUR 83.6 million (previous year: 79.5 million), chiefly due to the increase in rental income resulting from new investments and rental indexing. In the reporting period, positive changes in value for investment properties came in at EUR 17.4 million (previous year: EUR 18.0 million). Expenses for investment properties climbed to EUR 13.8 million (previous year: EUR 13.3 million). Personnel expenses declined to EUR 3.6 million in the year under review (previous year: EUR 3.8 million). Other operating expenses rose to EUR 1.8 million (previous year: EUR 1.6 million).

Strong growth in earnings
Overall, earnings before interest and taxes (EBIT), adjusted for valuation effects, rose by 5.5% to EUR 64.4 million (previous year: EUR 61.1 million). Due to a decrease in overall liabilities and more favourable financing terms, interest expenses fell sharply by EUR 3.0 million, or 14.8%, from EUR 20.4 million to EUR 17.4 million.

When adjusted for valuation effects, earnings before tax (EBT) rose considerably by 15.4% to EUR 47.1 million (previous year: EUR 40.8 million). The consolidated net income improved by 9.2% to EUR 53.9 million (previous year: EUR 49.4 million). Given the number of shares, this equates to an increase of 9.2% in earnings per share, which now stand at EUR 1.87 (previous year: EUR 1.71).

“With our focus on in-house developments, we continue to see further potential for growth and rising profitability in the future,” explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG. “At the same time, we are working continuously on our site pipeline for future projects and reviewing the possibilities for targeted acquisitions of promising properties,” continues Pfandzelter.

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 climbed by 2.2 percentage points to 41.9% within the one-year period (31/12/2016: 39.7%), thus paying testament to the company’s exceptionally solid financing structure.

Improved portfolio indicators
The net asset value (NAV) of the company rose by 9.0% 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% to EUR 18.58 per share (31/12/2016: EUR 17.05 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 15.2% to EUR 1.49 per share, compared with EUR 1.30 per share in the previous year.

Holger Pilgenröther, Chief Financial Officer of VIB Vermögen, comments the pleasing result: “Operational growth, coupled with the sharp decline in interest expenses, has resulted in strong FFO. This enables us to propose a dividend increase to the Annual General Meeting for the ninth time in a row. This year, we wish to increase the dividend by 0.05 EUR or 9.1% to EUR 0.60 per share.”

Further growth anticipated for 2018
2018 is set to be another year of growth, driven by in-house developments in conjunction with targeted acquisitions. Two modern logistics properties – one at Interpark near Kösching and one in Vaihingen/Enz – are currently under construction, with completion scheduled for the second half of 2018. Furthermore, attractive offers to purchase properties and sites are reviewed on an ongoing basis.

2018 guidance
Overall, the Management Board anticipates further revenue growth, coupled with a further increase in profitability, for the current fiscal year. Revenue is expected to increase to between EUR 85.0 million and EUR 89.0 million. The company also expects that EBT will amount to between EUR 48.0 million and EUR 50.5 million (excluding valuation effects and extraordinary items). Funds from operations (FFO) are expected to come in at between EUR 42.0 million and EUR 44.5 million, which is higher than in the previous year.

The company will publish its final results for the 2017 fiscal year together with the 2017 Annual Report on April 25, 2018. A company presentation with details of the 2017 preliminary 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/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.