VIB Vermögen AG continues solid revenue and earnings growth in Q1 2015

Press releases

  • Total operating revenue up 6.6% to EUR 18.1 million
  • Earnings before tax (EBT) grow to EUR 9.9 million: EBT margin of 54.5%
  • Funds from operations (FFO) up 10.0% to EUR 7.9 million

Neuburg/Danube, May 13, 2015 – VIB Vermögen AG, a company specialising in commercial real estate development and portfolio management, continued its growth course during the first quarter of 2015, reporting (IFRS) revenue up by 6.5% to EUR 18.0 million (Q1/2014: EUR 16.9 million). Total operating revenue amounted to EUR 18.1 million, compared with EUR 17.0 million in the prior-year period (+6.6%).

Earnings before interest and tax (EBIT) also performed well, improving by 6.3% from EUR 14.1 million to EUR 15.0 million. This result includes EUR 1.0 million of value changes to investment properties (Q1/2014: EUR 1.1 million) for the MAN service station in Freiburg-Umkirch, which the company itself developed and which it transferred to its own portfolio on February 1, 2015.

Interest charges on the portfolio borrowings were reduced further thanks to the favourable capital market environment. Despite further investment activity, this allowed the net interest result in the first quarter of EUR -5.1 million to be held at approximately the previous year's level (Q1/2014: EUR -5.0 million). Earnings before tax (EBT) grew faster than revenue as a consequence, which were up 8.3% from EUR 9.1 million to EUR 9.9 million. The 54.5% EBT margin also reflects higher profitability (Q1/2014: 53.6%). When adjusted for valuation effects and extraordinary items, adjusted EBT grew by 11.0% to EUR 8.9 million (Q1/2014: EUR 8.0 million).

After deducting income taxes of EUR 1.6 million (Q1/2014: EUR 1.4 million), the Group generated consolidated net income up by 7.3% to EUR 8.3 million (Q1/2014: EUR 7.7 million). Despite a higher average number of shares in issue, earnings per share were held at a high level (EUR 0.28; Q1/2014: EUR 0.30) as before.

FFO (funds from operations) improved by 10.0% compared with the prior-year period to EUR 7.9 million (Q1/2014: EUR 7.2 million), allowing FFO per share to remain unchanged year-on-year at EUR 0.29, despite the higher average number of shares in issue. Thanks to the company's circumspect investment and financing strategy the net asset value (NAV) was increased once again, rising from EUR 14.54 to EUR 14.88 (undiluted).

"Our purchases at the start of the year reflect the consistent continuation of our targeted investment policy. The issue proceeds from our third successfully placed mandatory convertible bond at the end of last year give us sufficient liquidity to continue successfully on our growth course during the 2015 fiscal year. Our high-yielding development projects such as the logistics centre at Interpark Ingolstadt are lending additional strength to revenue and earnings," notes Ludwig Schlosser, CEO of VIB Vermögen AG. CFO Holger Pilgenröther added: "The expiry of fixed interest arrangements for various loans over the coming years will allow us to further reduce our average interest costs in the future. Along with planned investment activities, this forms a further important earnings-driver that will also devolve in further NAV growth."

The full report for the first quarter of 2015 is available for downloading from today on the company's website at vib-ag.de within the Investor Relations area.