VIB Vermögen continues to grow, with expansion in its logistics segment
- Operating revenue rises by 6.3 per cent to EUR 58.8 million in the first nine months of the year
- Adjusted EBT increases by 11.7 per cent to EUR 29.9 million
- Property portfolio exceeds the EUR 1 billion mark for the first time
- Guidance confirmed for 2016 as a whole
VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, continued on its positive growth trajectory in the third quarter of 2016, increasing revenue and earnings in line with its own expectations. The company’s operating revenue rose by 6.3 per cent to EUR 58.8 million in the first nine months of 2016. This was chiefly due to ongoing expansion of the property portfolio, the indexing of rental agreements and a further decrease in the vacancy rate.
The positive revenue growth was also reflected in earnings in the first nine months of 2016. Adjusted earnings before interest and tax (EBIT) climbed by 6.9 per cent to EUR 45.2 million. The corresponding figure for the prior-year period stood at EUR 42.3 million. Adjusted earnings before tax (EBT) increased by 11.7 per cent to EUR 29.9 million, compared with EUR 26.8 million in the prior-year period. In terms of consolidated net income, VIB posted EUR 30.3 million in the period under review (last year: EUR 29.9 million).
FFO (funds from operations) improved in line with the increased earnings figures. As an indicator of cash inflow from operating activities, it rose by 9.9 per cent to EUR 26.2 million in the first nine months of 2016, compared with EUR 23.8 million in the previous year. FFO per share climbed by 10.5 per cent, from EUR 0.86 to EUR 0.95. The undiluted NAV (net asset value), i.e. the value of total assets less liabilities, increased by 5.8 per cent to EUR 436.6 million as of September 30 (Dec 31, 2015: EUR 412.8 million). The undiluted NAV per share stood at EUR 16.38 (Dec 31, 2015: EUR 15.69). This increase is primarily attributable to the high earnings that VIB Group properties have generated in the course of the year.
At Interpark in Kösching, two development projects in the logistics segment are currently in the implementation phase and are scheduled for completion in spring and summer 2017, respectively. Furthermore, the acquisition of two existing properties in Uffenheim and Wackersdorf will contribute to further growth in the future. All four properties are already rented in full and will generate initial rental yields of between 7.0 and 8.7 per cent.
"We have built on our strong market position in the logistics property segment over the first nine months of 2016. Owing to new acquisitions, our property portfolio has now exceeded the EUR 1 billion mark. We continue to see considerable growth potential in our preferred segments of logistics and retail," explains Holger Pilgenröther, CFO of VIB Vermögen.
Taking into account the results of the first nine months of 2016, VIB Vermögen has confirmed the guidance for the 2016 financial year as a whole made in the 2015 Annual Report.
The complete Q3/2016 quarterly report of VIB Vermögen AG is available at vib-ag.de.