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
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.