VIB continues on successful growth path during first nine months of 2015

Press releases

  • Revenue advances by 6.2 %, disproportionate rise in consolidated net income by 40.5 %
  • Adjusted EBT up by 10.9 %
  • FFO increases by 9.5 %, NAV rises by 8.0 %
  • 1 million sqm level of rentable space exceeded

Neuburg/Danube, November 11, 2015 – VIB Vermögen AG, a company specialising in commercial real estate development and portfolio management, successfully continued on its profitable growth path during the first nine months of 2015. Revenue according to IFRS was up by 6.2 % to EUR 55.0 million (9M 2014: EUR 51.7 million) as a result of attractive investments in the real estate portfolio and related additional rental income. Total operating revenue grew by 5.7 % to EUR 55.3 million (9M 2014: EUR 52.3 million).

Earnings before interest and tax performed well, registering a 26.5 % year-on-year increase to reach EUR 51.2 million (9M 2014: EUR 40.5 million). Notable in this context are EUR 9.0 million of changes in value for investment properties, which are attributable mainly to the logistics centre at Interpark near Ingolstadt that the company developed itself and completed in August.

Earnings before tax (EBT) also registered marked growth by 41.5 % to EUR 35.6 million (9M 2014: EUR 25.2 million). The EBT margin rose to 64.4 % accordingly (9M 2014: 48.1 %). When adjusted for changes in value for investment properties and extraordinary items from financial derivates, EBT improved by 10.9 % to reach EUR 26.8 million (9M 2014: EUR 24.2 million). This earnings growth rate, which outpaces top line growth, underscores the company's profitability once again. Given an overall very efficient cost structure, interest expenses, in particular, of EUR 15.3 million were slightly below the previous year's level, despite brisk investment activity (9M 2014: EUR 15.4 million).

After deducting EUR 5.8 million of taxes on income, consolidated net income stood at EUR 29.9 million, corresponding to 40.5 % year-on-year earnings growth (9M 2014: EUR 21.3 million). The undiluted earnings per share amounted to EUR 0.96 (9M 2014: EUR 0.81).

FFO, an indicator for cash inflows from operating activities, improved by 9.5 % to EUR 23.8 million during the first nine months of 2015 (9M 2014: EUR 21.7 million). Due to the strong consolidated net income that was generated, the new investments and the ongoing amortization of loans, VIB raised its net asset value (NAV) by 8.0 % compared with December 31, 2014 to a level of EUR 389.3 million (December 31, 2014: EUR 360.5 million).

Ludwig Schlosser, CEO of VIB Vermögen AG, expressed his great satisfaction with the progress achieved during the first nine months of the year: "With the successful conclusion in August of the logistics centre at the Interpark facility – which we developed ourselves – we have not only remained true to our strategy of growing in the future-oriented sectors of logistics/light industry and wholesale/retail, but have thereby also exceeded the 1 million sqm mark in terms of rentable space. We have invested around EUR 56 million in new properties during the course of 2015 to date, all of which offer attractive rental returns and are fully rented. We aim to continue further on this path in the future, and make the most of our expertise and many years of experience in the commercial real estate market to achieve targeted and profitable growth."

Holger Pilgenröther, CFO, added: "Our efficient cost structure and professional in-house management of our properties support this growth trend, also with a look to the company's profitability. Over and beyond this, we were able to continue further with our strategy of fixing the currently favourable interest-rate level by forward agreements at an early juncture. Newly secured borrowing volumes now amount to EUR 162 million, or 95 % of the fixed interest arrangements that expire in 2016/17. This will enable VIB to book a significantly positive earnings effect over the coming years, which will also impact in a falling average interest rate on our overall portfolio of borrowings over the next quarters. Overall, we are confirming our guidance for the 2015 fiscal year that we issued at the start of the year for the VIB Group."

The full interim report for the first nine months of the year can be downloaded from the company's website at vib-ag.de, within the Investor Relations area.