VIB Vermögen AG, a company specialising in the
development, acquisition and portfolio management of commercial properties, closed the 2019 fiscal year according to preliminary calculations with a record result. By virtue of additional rental income, revenue climbed by 4.8 per cent from EUR 86.8 million to EUR 91.0 million.
The annual valuation of the property portfolio, which is carried out by a surveyor, resulted in total positive changes in value for investment properties of EUR 22.3 million (previous year: EUR 19.5 million). Expenses for investment properties climbed to EUR 16.1 million (previous year: EUR 15.0 million). Personnel expenses at the Group rose slightly from EUR 3.7 million to EUR 3.9 million. Other operating expenses remained stable at EUR 1.8 million (previous year: EUR 1.8 million).
Sharp climb in earnings
On account of the ongoing favourable financing conditions, expenses for the financing of the portfolio were reduced to EUR 15.0 million (previous year: EUR 15.6 million). When adjusted for valuation effects, earnings before tax (EBT) rose sharply by 8.2 per cent, or EUR 4.2 million, to EUR 56.0 million (previous year: EUR 51.7 million). Consolidated net income therefore
increased accordingly by 9.2 per cent to EUR 65.4 million in 2019 (previous year: EUR 59.9 million). Given the 27.6 million shares, it also corresponds to earnings per share of EUR 2.29 (previous year: EUR 2.09).
Equity increased by EUR 49.7 million to EUR 577.3 million in the period to December 31, 2019 (31/12/2018: EUR 527.6 million). The equity ratio remained more or less stable and now stands at 42.5 per cent (31/12/2018: 42.7 per cent).
Further improvement in key property portfolio figures
As of the end of the year, the portfolio of the VIB Group comprised 109 properties, with a balance sheet value of EUR 1.3 billion. The net asset value (NAV) of the company climbed to EUR 613.0 million as of December 31, 2019 (31/12/2018: EUR 559.9 million). Given the number of
outstanding shares, it increased by 9.5 per cent to EUR 22.23 per share (31/12/2018: EUR 20.30 per share). Funds from operations (FFO), as an indicator of the company’s operating cash inflow, were improved in the year under review, rising by 7.9 per cent from EUR 1.64 per share to EUR 1.77 per share.
Eleventh dividend increase in a row planned
On account of the outstanding results, the Managing and Supervisory Boards of VIB Vermögen intend to propose the eleventh dividend increase in a row to the Annual General Meeting. For the year under review, it is planned to pay out a dividend of EUR 0.70 per share, which is
EUR 0.05, or 7.7 per cent, higher than in the previous year (previous year: EUR 0.65 per share).
“Our company has established itself as an extremely reliable payer of dividends. Thanks to the continuous and, most importantly, profitable expansion of our portfolio, we make it possible every year for our shareholders to share in the success of the company. Therefore, the
Managing and Supervisory Boards will be proposing a dividend increase to the Annual General Meeting for the eleventh time in a row,” explains Holger Pilgenröther, CFO of VIB Vermögen.
Continuation of the growth strategy through in-house developments
In particular, in-house developments at VIB Vermögen will once again lead to growth in rentable space and therefore rising rental income in 2020.
Revenue of between EUR 91.0 million and EUR 97.0 million is expected. Excluding valuation effects and extraordinary items, EBT is expected to reach a level between EUR 55.0 million and EUR 59.0 million. FFO (funds from operating activities) is expected to rise to between EUR 48.0 million and EUR 52.0 million in the 2020 fiscal year.
Possible negative effects due to the spread of the corona virus can not be forecasted in the Management Board’s point of view and therefore are not part of this guidance.
The company will publish its final results for the 2019 fiscal year together with the 2019 Annual Report on April 30, 2020. A company presentation with details of the 2019 interim results can be found at www.vib-ag.de.