VIB once again grows successfully in the 2016 fiscal year

2016 preliminary results
 

VIB once again grows successfully in the 2016 fiscal year

– Operating revenue rises by 5.6%

– Adjusted Earnings before tax (EBT) climb by 11.8%

– 2016 guidance fully met

– Proposed dividend increase of 7.8% to EUR 0.55 per share

– Further growth in revenue and earnings planned for 2017
 

Neuburg/Danube, March 22, 2017 – VIB Vermögen AG, a company specialising in the development and portfolio management of commercial properties, recorded strong increases in both revenue and earnings in the 2016 fiscal year. On the basis of the preliminary IFRS figures, operating revenue rose by 5.6% to EUR 79.9 million. In particular, this positive trend was driven by increased rental income from new investments in the last two years. Growth came within the anticipated range for 2016.

In the year under review, changes in value from investment properties came in at EUR 18.0 million (previous year: EUR 16.4 million). Expenses for investment properties fell to EUR 13.3 million due to a decline in maintenance expenses (previous year: EUR 13.6 million). Personnel expenses for the reporting period stood at EUR 3.8 million, compared with EUR 3.3 million in the 2015 fiscal year. Other operating expenses remained steady at EUR 1.6 million.

Strong growth in earnings
Overall, earnings before interest and taxes (EBIT), adjusted for valuation effects, rose sharply by 7.1% to EUR 61.1 million. Despite the investments made in the year under review and the associated increase in total liabilities, interest expenses remained steady at EUR 20.4 million. This was chiefly due to more favourable financing terms.

When adjusted for valuation effects and extraordinary items, earnings before tax (EBT) rose considerably by 11.8% to EUR 40.8 million. As a consequence, consolidated net income also improved by 12.2% to EUR 49.4 million. Given the number of shares, this equates to an increase of 17.1% in diluted and undiluted earnings per share, which now stand at EUR 1.71.

“In the year under review, we once again demonstrated that our finely tuned business model is still able to generate continuous growth and above-average increases in profitability – even in the face of a general yield compression on the property market. We recorded major successes, including the acquisition of high-yield properties, the start of construction work on two project developments at Interpark and the expansion of our pipeline with promising sites,” noted Martin Pfandzelter, Chief Executive Officer of VIB Vermögen. “On the financing side, our long-term strategy bore fruit. We still see potential for further reducing the average interest rate on our borrowings.”

As of the end of the 2016 fiscal year, equity had risen by EUR 36.8 million to EUR 443.5 million (31/12/2015: EUR 406.8 million), primarily as a result of the net retained profit achieved. The equity ratio stands at 39.7% (31/12/2015: 40.3%) and pays testament to the solid financing structure of the company.
Holger Pilgenröther, CFO of VIB Vermögen: “2016 was an excellent year for VIB Vermögen, and we want to reward our shareholders accordingly. We are a stock with a reliable dividend. Therefore, with the consent of the Supervisory Board, we will be proposing a dividend of EUR 0.55 per share (a rise of around eight per cent) to the Annual General Meeting.”

Improved portfolio indicators
The net asset value (NAV) of the VIB portfolio rose by 13.9% to EUR 470.1 million as of the balance sheet date (31/12/2015: EUR 412.8 million). Given the number of outstanding shares, it increased by 8.7% to EUR 17.05 per share (31/12/2015: EUR 15.69 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 10.2% to EUR 1.30 per share, compared with EUR 1.18 per share in the previous year.

2016 saw VIB Vermögen press ahead with its proven strategy of investing in in-house developments and acquisitions within the sectors of logistics/light industry and retail. The company purchased a total of six sites for the purpose of completing in-house development projects: four of these sites are situated at Interpark Kösching near Ingolstadt, one is in Gersthofen near Augsburg and one is in Schwarzenbruck close to Nuremberg. The company also acquired two logistics properties in Wackersdorf and Uffenheim respectively.

Further growth anticipated for 2017
VIB expects to see increased growth from in-house developments in 2017. At Interpark Kösching near Ingolstadt, two project developments for the logistics sector are currently in the construction phase and are scheduled for completion in spring and summer 2017 respectively.
Overall, the company anticipates further revenue growth, coupled with sustained profitability, for the current fiscal year. Operating income is expected to increase to between EUR 81.5 million and 85.5 million. Furthermore, the company forecasts that EBIT will rise to between EUR 61.5 million and 64.5 million, and EBT to between EUR 43.0 million and 45.5 million (excluding valuation effects and extraordinary items in each case). Funds from operations (FFO) is expected to come in at between EUR 37.0 million and 39.5 million, which is higher than in the previous year.

The company will publish its final results for the 2016 fiscal year together with the 2016 Annual Report on April 26, 2017. A company presentation with details of the 2016 interim results can be found at www.vib-ag.de.
 

Contact

Investor Relations:

VIB Vermögen AG
Petra Riechert Tel. + 49 (0)8431 9077 952
Luitpoldstr. C70 Fax: +49 (0)8431 9077 973
86633 Neuburg/Donau Email: ed.ga-biv@trehceir.artep

Please note our new address from 27 March 2017:
Tilly-Park 1, 86633 Neuburg/Donau

Profile of VIB Vermögen AG (including BBI Immobilien AG)

VIB Vermögen AG is a medium-sized company specialising in commercial real estate management that has been operating successfully for more than 20 years. The company focuses on properties from the logistics/light industry and retail sectors in the economically strong southern German region. VIB’s shares have been listed on the Munich (m:access) and Frankfurt (Open Market) stock exchanges since 2005.

VIB’s business model is based on a “develop-or-buy-and-hold” strategy: Firstly, VIB acquires properties that are already rented. Secondly, it completely develops new properties in order to transfer them to its own portfolio on a long-term basis and generate rental income from them. VIB also holds investments in companies with real estate assets.