VIB Vermögen confirms record result and plans further dividend increase
Revenue rises by 3.9 per cent to EUR 86.8 million
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.