VIB Vermögen confirms successful growth in 2016

VIB Vermögen confirms successful growth in 2016

– Operating revenue rose by 5.6% to EUR 79.9 million

– Adjusted earnings before tax (EBT) with a plus of 11.8%

– New growth impulses through active portfolio management and proprietary developments

– Guidance 2017: EBT between EUR 43.0 and 45.5 million before valuation effects

Neuburg/Danube, April 26, 2017 – VIB Vermögen AG, a company specialising in the acquisition, development and portfolio management of industrial properties, has today published its audited results for the 2016 fiscal year and confirmed its preliminary figures of March 22, 2017. Thus, group revenue rose by 5.9% to EUR 79.5 million, after EUR 75.1 million in the previous year. The company’s operating income increased by 5.6% to EUR 79.9 million. Main driver of these positive results was the higher rental income from the new investments.

Strong growth in earnings
Driven by revenue growth, the earnings before interest and taxes (EBIT), adjusted for valuation effects and extraordinary items, increased by 7.1% to EUR 61.1 million. The earnings before tax (EBT), adjusted for valuation effects and extraordinary items, rose disproportionately by 11.8% to EUR 40.8 million. As a result, the consolidated net income also improved by 12.2% to EUR 49.4 million. Based on the average number of shares in the fiscal year, this corresponds to an increase in diluted and undiluted earnings per share of 17.1% to EUR 1.71.

The positive development of the company was also reflected in the company’s financial situation in the 2016 fiscal year. Thus, equity rose by EUR 36.8 million to EUR 443.5 million (31 December 2015: EUR 406.8 million) at the end of the 2016 fiscal year. This was primarily due to the profit achieved in the period under review. As at the balance sheet date the equity ratio remained almost unchanged at 39.7% (31 December 2015: 40.3%) and documented the company’s solid financing structure.

Based on the positive operating performance in 2016, the Management Board and Supervisory Board of VIB Vermögen AG will propose a dividend of EUR 0.55 per share (previous year: EUR 0.51 per share) to the Annual General Meeting on 29 June 2017.

Portfolio numbers significantly improved
The net asset value (NAV) rose by 13.9% to EUR 470.1 million as at the balance sheet date (31 December 2015: EUR 412.8 million). Based on the number of outstanding shares, the value rose by 8.7% to EUR 17.05 per share (31 December 2015: EUR 15.69 per share). The funds from operations (FFO), as an indicator of the company’s operating cash inflows, improved significantly in the year under review to EUR 35.8 million (31 December 2015: EUR 32.6 million). This represents a growth of 10.2% to EUR 1.30 per share (31 December 2015: EUR 1.18 per share). The vacancy rate was again reduced by active portfolio management and stood at 1.3% (31 December 2015: 1.8%) at the end of the year.

Active portfolio optimization in the Grundig-Businesspark
As part of its portfolio optimization, VIB Vermögen is currently expanding its commercial property in the Grundig-Businesspark in Nuremberg. The mixed property in Nuremberg, acquired in 2012, which covers both office and logistics areas, currently has a lettable area of approximately 85,000 sqm. The extension, which will be completed at the beginning of 2018, will result in an additional lettable area of approximately 7,500 sqm. The new facility is already leased to 2 companies with a contract term of 10 years each.

“The strength of our business model and the sustained growth of our company resulting from it are also reflected in the recent examples of our portfolio developments. We are again demonstrating our competence in the area of project developments by expanding our property at the Grundig-Businesspark near Nuremberg and by the completion of two project developments in the Interpark,” said Martin Pfandzelter, CEO of VIB Vermögen AG.

Further growth expected in 2017
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 annual report 2016 as well as a current company presentation on the business results 2016 are available at www.vib-ag.de.

Contact

Investor Relations:

VIB Vermögen AG
Petra Riechert
Tilly-Park 1
86633 Neuburg/Donau
Tel. + 49 (0)8431 9077 952
Fax: +49 (0)8431 9077 973
Email: ed.ga-biv@trehceir.artep

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.