VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, recorded sustained growth in the third quarter of the year.
Revenue rose to EUR 67.6 million in the first nine months of 2019 – an increase of 5.1 per cent on the prior-year period. When adjusted for valuation effects and extraordinary items, EBT improved by 10.4 per cent, reaching EUR 41.9 million, compared with EUR 38.0 million in the same period in 2018. Consolidated net income was roughly on a par with the previous year at EUR 38.1 million.
Property transactions generate further growth
The VIB portfolio continues to grow, both as a result of direct acquisitions as well as development and redensification projects on the company’s own land. In the first nine months of the financial year, properties with a total investment volume of 48. 2 million euros were added to the property portfolio. In addition, ongoing projects are being driven forward by scheduled investments. All project developments are on time and on budget and are handed over to the tenants on time. Further details on the individual transactions can be found in the interim announcement published today.
Significant improvement in operational KPIs
During the reporting period, the portfolio generated funds from operations associated with letting activities in the amount of EUR 36.4 million – a year-on-year increase of 10.4 per cent. FFO per share improved accordingly by EUR 0.12 to EUR 1.32. 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 582.6 million (December 31, 2018: EUR 560.0 million). NAV per share therefore rose from EUR 20.30 to EUR 21.12.
In terms of implementing the strategic growth strategy, VIB Vermögen currently has a pipeline comprising plots in prime locations and a potential rentable area of some 115,000 square metres for in-house developments. In addition, the management team continuously reviews acquisition opportunities.
On the basis of the results to date and the macroeconomic and industry-specific underlying conditions, the Managing Board confirms its guidance for the 2019 financial year as a whole made in the 2018 Annual Report.
The full interim report for the third quarter of 2019 can be accessed at www.vib-ag.de.