DGAP-News: VIB Vermögen AG

VIB Vermögen grows whilst increasing profitability
 

- Operating revenue up by 5.7% to EUR 62.2 million

- A further above-average rise in adjusted earnings before tax (EBT), which are up by 17.0%

- Redensification and plot purchase dominate operating business

- Guidance confirmed for 2017 financial year as a whole
 

Neuburg/Danube, November 9, 2017 - VIB Vermögen AG, a company specialising in the acquisition, development and portfolio management of commercial properties, recorded significant increases in both revenue and earnings in the first nine months of 2017. This was mainly due to higher rental incomes associated with in-house developments, as well as a significant fall in interest expenses connected with existing loans.

The company's operating revenue rose by 5.7% in the first nine months of 2017, climbing from EUR 58.8 million to EUR 62.2 million. When adjusted for valuation effects, earnings before interest and taxes (EBIT) climbed by 6.9% from EUR 45.2 million to EUR 48.3 million. Following adjustment for valuation effects and extraordinary items, earnings before tax (EBT) once again grew much more strongly by 17.0% from EUR 29.9 million to EUR 35.0 million. The consolidated net income improved by 5.6%, from EUR 30.2 million to EUR 31.9 million. Given the average number of shares in the financial year, this equates to an increase of 5.7% in diluted and undiluted earnings per share, from EUR 1.05 to EUR 1.11.

The company's property sector-specific KPIs also improved on account of the positive course of business. FFO (funds from operations) rose by 16.9% from EUR 26.2 million to EUR 30.6 million. Undiluted NAV (net asset value), i.e. the value of total assets less total liabilities, increased by 3.8% compared to the end of 2016 (EUR 470.1 million) to reach EUR 488.1 million. The NAV per share improved accordingly by 3.8%, from EUR 17.05 to EUR 17.70 per share.

Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG: "Alongside the strong result from the rental business, the positive effect arising from a drop in interest expenses on our loans played a decisive role in our profitable growth, which comes in a market characterised by considerable demand and high prices. By virtue of the sustained low interest rates, this effect will continue in the future and will have further positive effects on our earnings and, consequently, our internal financing capability."

The operating highlights of the quarter included the densification via a new logistics property on an existing site at the former Grundig business park in Nuremberg. A further highlight was the acquisition of a site in Vaihingen/Enz in Baden-Württemberg. Here too, a new logistics property will be built, with construction scheduled to start halfway through the fourth quarter. Construction is also due to begin on a further logistics property at Interpark near Ingolstadt during the same period.

"We are delighted that we have been able to successfully implement our strategic approach - which involves growing increasingly by means of highly profitable in-house developments - with multiple projects in 2017. This is not only reflected in our current results, but also lays the foundation for future profitable growth. Thanks to the unwaveringly high demand for logistics properties, coupled with our solid financial position, we are confident that we will be able to complete further in-house developments in the future," explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.

Taking into account the results for the year so far, VIB Vermögen confirms the guidance for the 2017 financial year made in the 2016 Annual Report.

The full nine-month report of VIB Vermögen AG for the 2017 financial year can be accessed at vib-ag.de.
 

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 973
Email: petra.riechert@vib-ag.de
 

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.