VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, confirms its previously published preliminary figures for the 2020 financial year. At EUR 94.2 million, revenue reached its highest level in the company’s 26-year history despite the challenging market environment stemming from the coronavirus pandemic.
Portfolio expands by roughly 125,000 sqm, helping increase rental income
The 3.5 per cent revenue increase is mainly attributable to two factors: the extra rental income from four logistics properties added to the portfolio during the reporting period, and rental income from properties that had not yet fully contributed to income in the preceding period (previous year: EUR 91.0 million). The VIB Vermögen AG portfolio counted 113 commercial properties with a rentable space of just under 1.3 million square metres as at the end of the reporting period on December 31, 2020. The portfolio’s market value is approximately EUR 1.4 billion.
The net changes in value for investment properties came in at EUR 22.3 million above the previous year’s figure. Expenses for investment properties climbed to EUR 17.4 million (previous year: EUR 16.1 million). Personnel expenses at the Group rose from EUR 3.9 million to EUR 4.2 million. Other operating expenses remained stable at EUR 1.8 million (previous year: EUR 1.8 million).
Income and equity at record levels
Expenses for financing the portfolio fell once again due to ongoing optimisation of the financing mix, this time to EUR 14.1 million (previous year: EUR 15.0 million). The adjusted earnings before tax (EBT) climbed by 3.1 per cent to EUR 57.7 million (previous year: EUR 56.0 million). Similarly, consolidated net income also developed positively during 2020. It reached EUR 67.3 million and therefore rose by 2.8 percentage points. (Previous year: EUR 65.4 million). Given the 27.6 million shares issued, it corresponds to earnings per share of EUR 2.39 (previous year: EUR 2.29).
Equity increased by EUR 47.9 million to EUR 625.2 million as at December 31, 2020 (December 31, 2019: EUR 577.3 million). As of the 2020 balance sheet date, the equity ratio stood at a considerable 43.0 per cent (December 31, 2019: 42.5 per cent).
Property portfolio value increases again
The VIB Group’s portfolio included 113 properties with a balance sheet value of roughly EUR 1.4 billion as at the end of 2020. The net asset value (NAV) of the company rose to EUR 666.3 million as of December 31, 2020 (December 31, 2019: EUR 613.0 million). Given the number of outstanding shares, it increased by 8.7 per cent to EUR 24.16 per share (December 31, 2019: EUR 22.23 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 3.4 per cent from EUR 1.77 per share to EUR 1.83 per share.
Twelfth dividend increase in a row planned
On account of the pleasing results, the Managing and Supervisory Boards of VIB Vermögen AG intend to propose the twelfth dividend increase in a row at the Annual General Meeting. For the year under review, it is planned to pay out a dividend of EUR 0.75 per share, which is EUR 0.05, or 7.1 per cent, higher than in the previous year (previous year: EUR 0.70 per share).
“Despite the adverse conditions created by the Covid-19 pandemic, we successfully achieved our targets during the financial year just ended. This shows that our company has an excellent foundation for sustainable growth with a stable and profitable business model,” says Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG.
“Thanks to the major projects that entered our portfolio as the year progressed, we have expanded this basis for further, profitable growth in the current financial year. In conjunction with the new projects in our pipeline, we are forecasting increased revenue and earnings for this year, too,” adds Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.
2021 guidance forecasts further growth
The Management Board is expecting revenue between EUR 99 million and EUR 105 million for the 2021 financial year. After adjusting for valuation effects and extraordinary items, EBT could reach an amount between EUR 61 million and EUR 65 million. FFO (funds from operating activities) is expected to rise to between EUR 54 million and EUR 58 million in the 2021 financial year. As for vacant properties, the Management Board expects that their share of the portfolio will remain a low, single-digit figure (December 31, 2020: 2.5 per cent).
This planning reflects the potential negative impacts caused by the spread of the coronavirus, based on last year’s experience. Any effects beyond these impacts cannot be foreseen currently and are therefore not included in the guidance.
The 2020 Annual Report, as well as an up-to-date corporate presentation, is available for download at www.vib-ag.de.