Neuburg/Danube, August 6, 2015 – VIB Vermögen AG, a company specialising in commercial real estate development and portfolio management, continued its profitable growth during the first half of 2015, reporting increases in both revenue and earnings. As expected, IFRS revenue was up by 5.5 % to EUR 36.2 million (H1/2014: EUR 34.3 million) as a result of attractive investments and related additional rental income. Total operating revenue grew by 5.3 % to EUR 36.5 million (H1/2014: EUR 34.6 million).
Due to the measurement at fair value through profit or loss of the properties that were newly transferred to the portfolio (including Freiburg-Umkirch), a positive valuation change of EUR 1.0 million to investment properties was reported (H1/2014: EUR 1.1 million). Expense items also increased as a consequence of the successful growth path. Expenses for investment properties, for example, rose to EUR 6.2 million, mainly due to renovation and maintenance measures (H1/2014: EUR 5.9 million). The slight increase in personnel costs to EUR 1.6 million (H1/2014: EUR 1.5 million) also reflects the company's growth. Earnings before interest and tax (EBIT) grew to EUR 28.8 million (H1/2014: EUR 27.6 million), with the EBIT margin thereby remaining at a high level of 79.0 % (H1/2014: 79.6 %). When adjusted for valuation effects, EBIT stood at EUR 27.9 million, up 5.1 % year-on-year (H1/2014: EUR 26.5 million).
Despite the acquisitions during the current year and the related increase in non-current liabilities, the interest expense has reduced slightly to EUR 10.2 million due to more favourable financing costs (H1/2014: EUR 10.3 million). Earnings before tax (EBT) improved by 5.8 % to EUR 18.4 million (H1/2014: EUR 17.4 million). The higher EBT margin also shows the further improvement in profitability. When adjusted for valuation effects and extraordinary items, adjusted EBT grew by 7.7 % to EUR 17.6 million (H1/2014: EUR 16.4 million). After deducting corporation taxes on income, consolidated net income amounted to EUR 15.4 million (H1/2014: EUR 14.6 million) – an increase of 5.2 %. Undiluted earnings per share amount to EUR 0.53 (given an average number of shares of 27,579,833), compared with EUR 0.56 in the previous year (given an average number of shares of 25,227,231). The calculation of the average number of shares in circulation takes full account of the as yet unconverted shares from the issue of the mandatory convertible bond at the end of last year.
The balance sheet also reflects this sustainable growth: The equity ratio improved to 40.1 % (December 31, 2014: 39.4 %), mainly due to the consolidated net income that was generated, and the loan to value (LTV) ratio of 54.2 % remained approximately at the previous year's level (December 31, 2014: 53.7 %). Net asset value (NAV) per share reported a marked improvement to EUR 15.17 (December 31, 2014: EUR 14.54) as a result of the profit that was generated and scheduled debt repayments. Funds from operations (FFO) per share – an indicator of cash inflows from operating activities – amounted to EUR 0.57 during the first half of 2015 (given an average number of shares of 27,579,833), compared with EUR 0.58 in the prior-year period (given 25,227,231 average shares in issue).
Ludwig Schlosser, CEO of VIB Vermögen AG, expressed his satisfaction with the success achieved during the first half of the year: "Our strategy of growing sustainably and profitably through acquisitions – as well as through developing our own properties in the logistics/light industry and wholesale/retail areas – has continued to prove its worth. We aim to continue along this path over the further course of year, and we are confirming our guidance accordingly." CFO Holger Pilgenröther added: "Our sustainable financing strategy underpins such growth. Given the current interest rate environment, we continue to be able to finance ourselves on very attractive terms. The average rate of interest on our portfolio of borrowings has already reduced from 3.91 % (as of 31/12/2014) to currently 3.77 %. The high volumes of fixed interest borrowings that will expire over the coming years also offer us opportunities to further reduce our interest costs."
The full report for the first half of 2015 is available for downloading from today on the company's website at vib-ag.de within the Investor Relations area.