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
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 cotribute 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.