VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, has once again continued its growth trajectory in the first half of 2020.
During the reporting period, which includes the effects of the rental deferrals and waivers granted as a result of the Covid-19 pandemic, revenue rose by 2.9 per cent year-on-year, from EUR 45.1 million to EUR 46.4 million. EBT improved by 15.5 per cent in the first half of 2020, climbing from EUR 29.9 million to EUR 34.6 million. This increase was also influenced by the positive valuation result of EUR 5.9 million, which, in particular, is due to changes in the value of current in-house developments. When adjusted for valuation results, EBT increased by approximately EUR 1 million, or 3.7 per cent, from EUR 27.7 million to EUR 28.7 million. Consolidated net income climbed by 16.0 per cent year-on-year, from EUR 25.1 million to EUR 29.1 million.
“We are pleased that our in-house developments, which have thus far all been completed on time and on budget, are contributing to the continuous and profitable growth of the company. In these challenging times, it is also clear that our focus on the logistics sector enables further growth,” says Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG.
Funds from operations (FFO) from letting activities increased by 4.1 per cent year-on-year to some EUR 25.1 million. FFO per share improved accordingly by 4 euro cents to EUR 0.91. In the reporting period, diluted and undiluted NAV (net asset value according to the definition of the European Public Real Estate Association [EPRA]) rose to EUR 643.7 million (December 31, 2019: EUR 612.9 million). NAV per share therefore rose from EUR 22.23 to EUR 23.34.
New addition to the portfolio after June 30, 2020
The development project for Amazon in Gersthofen, near Augsburg, was completed and handed over to the tenant at the beginning of July, four weeks ahead of schedule. Therefore, this project is not included in the indicators contained within the half-year report. A logistics facility with 7,500 m² of warehouse and office space has been developed at the site, which boasts superb infrastructure links. In addition to the warehouse and office space, the long-term rental agreement also covers large undeveloped areas for delivery vehicles.
“In terms of sustainability, we are particularly pleased that preparatory investments have already been made so that, if necessary, the entire fleet can be served with sufficient charging capacity for electric vehicles,” explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG. “The installation of a photovoltaic system on the roof of the logistics building is also part of our sustainability strategy.”
On the basis of the results to date – and subject to the assumption that there will be no significant deterioration in the economic situation in the second half of 2020, such as due to a second lockdown – we confirm the forecast for the 2020 financial year published in the 2019 Annual Report.
The full 2020 half-year report can be accessed at www.vib-ag.de.