VIB Vermögen AG, a company specializing in the development, acquisition and portfolio management of commercial real estate, continued its growth course in the third quarter of 2020. In a challenging market environment, both revenues and earnings were increased. In the first nine months of 2020, revenues grew to around EUR 70.4 million - an increase of 4.1 percent compared to the same period of the previous year. EBT adjusted for valuation effects and special items improved by 3.9 percent to EUR 43.5 million, compared to EUR 41.9 million in the same period of 2019. Due to positive valuation effects, consolidated net income increased significantly by 21.7 percent year-on-year to EUR 46.4 million.
The financial impact of the Corona Crisis remained manageable in the period under review. Individual agreements were reached with some of the tenants in our portfolio as a result of the Corona Crisis. In this context, as of October 30, 2020, VIB has granted rent deferrals in the amount of EUR 550 thousand (July 31, 2020: EUR 575 thousand) and in individual cases also waived rents in the amount of EUR 376 thousand (July 31, 2020: EUR 330 thousand).
Further expansion of real estate portfolio
During the course of the year, the VIB Group's real estate portfolio was continuously expanded and comprised a total of 113 properties with a total rental area of 1.19 million sqm on September 30, 2020. The vacancy rate remained at a pleasingly low level of 2.6 percent.
The Amazon distribution center in Gersthofen was completed on schedule in the third quarter and handed over to the tenant. A logistics property with 7,500 sqm of warehouse and office space was built on the site, which has excellent infrastructural links. In addition to hall and office space, the long-term lease agreement also includes large open spaces for Amazon delivery vehicles. In terms of sustainability, it is pleasing to note that preparatory investments have already been made in the infrastructure in order to completely convert the vehicle fleet to electric mobility if required. In addition, a photovoltaic system will be installed on the roof of the logistics complex.
"We will consistently pursue our sustainable growth strategy. For the realization of future project developments, we have a land pipeline with a potential usable area of around 120,000 sqm. On top pf that, we have around 40,000 sqm that we can use for projects as part of our joint venture with WDP. In addition, we are constantly reviewing opportunities to expand our real estate portfolio through targeted acquisitions," says Martin Pfandzelter, CEO of VIB Vermögen AG.
Further increase in key operating figures achieved
In the period under review, the portfolio generated funds from operations of EUR 38.1 million - an increase of 4.4 percent over the previous year. Accordingly, FFO per share increased by 6 cents to EUR 1.38. The diluted and undiluted NAV (Net Asset Value as defined by the European Public Real Estate Association; EPRA) increased to EUR 642.9 million in the reporting period (December 31, 2019: EUR 613.0 million). As a result, NAV per share increased from EUR 22.23 to EUR 23.31.
The long-term effects of the Corona pandemic are still not foreseeable at this time. However, due to the Company's stable positioning and the course of business to date, we currently do not expect any significant negative effects on the Company's earnings situation in the current fiscal year. We therefore confirm the guidance for the current fiscal year 2020 given in the Annual Report 2019.
The complete interim report for the third quarter of 2020 is available at www.vib-ag.de