VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, can look back on a strong opening quarter of the year. Between January and March 2020, revenue rose from EUR 22.5 million in the prior-year period to EUR 23.4 million in the period under review. Adjusted EBT improved by 4.9 per cent to EUR 14.6 million. Consolidated net income came in at EUR 12.2 million in the first quarter of 2020, which corresponds to an increase of roughly 5.4 per cent on the prior-year figure of EUR 11.6 million.
As of March 31, 2020, the real estate portfolio of VIB Vermögen consisted of 111 properties with a total rentable area of 1.18 million square metres. At 1.7 per cent, the vacancy rate remained extremely low compared with the rest of the industry. Funds from operations (FFO) from letting activities amounted to EUR 12.7 million in the period under review, which equates to an increase of 4.9 per cent/EUR 0.6 million. FFO per share also increased accordingly in the first quarter from EUR 0.44 to EUR 0.46.
NAV (net asset value) rose to EUR 625.6 million in the reporting period (December 31, 2019: EUR 613.0 million).
The effect of the temporary shutdown from 17. March 2020 has not yet affected the result in the 1st quarter of 2020.On account of the diversified structure of the portfolio, some 90 per cent of rents are not directly affected by the closures ordered by the authorities. In the interests of long-standing business relations, however, VIB is offering solutions for individual tenants who have been directly affected by the crisis. In most cases, this means granting deferrals, but – where legitimate exceptional circumstances apply – also includes rental waivers. Including these agreements, over 92 percent of the rents for the month of April 2020 have been received.
During the first quarter 2020, important groundwork was laid in terms of maintaining and expanding the portfolio. On the one hand, the company extended the rental agreement for its largest property to date (55,000 square metres at Interpark in Kösching) for a further five years with the current tenant, a car manufacturer. On the other hand, work at the company’s construction sites is progressing as planned. At the present time, it is anticipated that the two-storey logistics facility being developed at Interpark near Ingolstadt and the e-commerce distribution centre being built for Amazon in Gersthofen – which, together, will increase the size of the portfolio by about 95,000 square metres – will be handed over on schedule. What’s more, the company boasts a healthy site pipeline for the next few years that offers potential for a further 130,000 or so square metres of useful rentable space.
“We are pleased that, despite the current challenging economic environment, we are able to send positive signals for the current fiscal year with our solid quarterly figures and operational successes in terms of rental renewals and the development of new projects,” explains Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG.
On the basis of the results to date and subject to the further macroeconomic effects of the coronavirus crisis, the Managing Board of VIB Vermögen AG confirms its forecast for the 2020 fiscal year as a whole, as issued in the 2019 Annual Report. This anticipates a further rise in revenue to between EUR 91.0 million and EUR 97.0 million. EBT, before valuation effects and extraordinary items, is expected to reach between EUR 55.0 million and EUR 59.0 million. FFO is expected to rise to between EUR 48.0 million and EUR 52.0 million.
The full interim report for the first quarter of 2020 can be accessed at www.vib-ag.de.