VIB Vermögen AG, a company specializing in the development, acquisition and portfolio management of commercial real estate, has confirmed its previously published preliminary figures for fiscal year 2021. At EUR 103.8 million, revenues reached the highest level in the company's 27-year history despite the once again challenging market environment against the backdrop of the ongoing Corona pandemic.
Rental income rises to over EUR 100 million for the first time
The 10.2 per cent increase in revenues is due to the additional rental income from the properties that were added to the portfolio during the period under review and the properties that did not yet fully contribute to earnings in the same period of the previous year (previous year: EUR 94.2 million). As of the balance sheet date on December 31, 2021, VIB Vermögen AG's portfolio included 112 commercial properties with a lettable area of just under 1.3 million square meters.
The balance of changes in the value of investment properties increased to EUR 108.2 million (previous year: EUR 22.3 million). Expenses for investment properties decreased to EUR 16.6 million (previous year: EUR 17.4 million). Group personnel expenses increased from 4.2 million to EUR 4.5 million. Other operating expenses increased slightly to EUR 2.1 million (previous year: EUR 1.9 million).
Earnings and equity at record levels
Expenses for financing the portfolio were again reduced due to further optimization of the financing mix and amounted to EUR 13.4 million (previous year: EUR 14.1 million). Earnings before taxes (EBT) adjusted for valuation effects increased by 15.6 per cent to EUR 66.7 million (previous year: EUR 57.7 million). Consolidated net profit increased significantly by 128.5 per cent to EUR 153.7 million. Based on the EUR 27.7 million shares issued, this corresponds to earnings per share of EUR 5.39 (previous year: EUR 2.39).
Equity grew by EUR 136.8 million to EUR 762.0 million as of December 31, 2021 (December 31, 2020: EUR 625.2 million). The equity ratio increased by 440 basis points to 47.4 per cent as of the reporting date 2021 (December 31, 2020: 43.0 per cent).
Value of real estate portfolio increased
112 properties with a balance sheet value of around EUR 1.5 billion belonged to the VIB Group's portfolio at the end of 2021. The net reinstatement value (NRV), which is decisive for the value of the long-term portfolio, increased to EUR 887.3 million as of December 31, 2021 (December 31, 2020: EUR 727.9 million). Based on the number of shares outstanding, the value increased by 21.3 per cent to EUR 32.02 per share (December 31, 2020: EUR 26.39 per share). Funds from operations (FFO) as an indicator of the company's operating cash inflows increased by 15.3 per cent from EUR 1.83 to EUR 2.11 per share in the reporting year.
Increase in dividend planned
As a result of the good earnings, the Managing and Supervisory Boards of VIB Vermögen AG are planning to propose to the General Meeting that the dividend for the past fiscal year be increased by EUR 0.10 to EUR 0.85 per share (previous year: EUR 0.75 per share).
"Fiscal 2021 was a very successful year - despite the challenging environment due to the ongoing Corona pandemic. With its solid business model, our company is well equipped to continue growing. Our next lighthouse project "Next Horizon" in Erding will contribute to this development as a further milestone," said Martin Pfandzelter, CEO of VIB Vermögen AG.
Guidance for 2022 foresees further growth
The Management Board expects to be able to generate sales of between EUR 103 and EUR 109 million in fiscal year 2022. EBT adjusted for valuation effects and special items is expected to increase to between EUR 67 and EUR 71 million. FFO from operations is expected to increase to between EUR 58 million and EUR 62 million in fiscal year 2022. With regard to vacancy development, the Management Board expects this to remain in the low single-digit percentage range (December 31, 2021: 1.2 per cent). Possible negative consequences due to the spread of the Corona virus have been taken into account in this planning based on the experience of the previous year. Additional effects, e.g. due to the war in Ukraine or disruptions to global supply chains, cannot currently be predicted and are therefore not included in this forecast.
The 2021 Annual Report and a current corporate presentation are available for download at www.vib-ag.de.