VIB Vermögen: Significant increase in revenue and profitability in FY 2014

Press releases

  • Total operating revenue rises by 7.3 % to EUR 70.5 million; disproportionately strong gains in EBT by 9.1 % to EUR 38.3 million
  • Attractive interest environment and solid and sustainable financing structure continue to drive additional future NAV growth
  • 2015 forecast: total operating revenue of EUR 74.0 – 77.0 million, EBIT of EUR 53.5 – 56.0 million and EBT of EUR 33.0 – 35.0 million before valution effects

Neuburg/Danube, April 22, 2015 – VIB Vermögen AG, a company specialising in commercial real estate management, looks back on a successful 2014 fiscal year. Given further new investments, consolidated revenue was up by 7.6 % to EUR 69.9 million (previous year: EUR 65.0 million), and total operating revenue increased by 7.3 % to EUR 70.5 million (previous year: EUR 65.7 million).
The company also met or exceeded all profitability forecasts: earnings before interest and tax (EBIT excluding valuation effects and extraordinary items) of EUR 51.6 million grew by 9.7 % (previous year: EUR 47.0 million) and was recorded at the upper end of the forecast range of EUR 50.5 million to EUR 52.0 million. Earnings before tax (EBT) excluding valuation effects and extraordinary items of EUR 31.2 million were 15.5 % ahead of the previous year's EUR 27.0 million, thereby exceeding the company's forecast of EUR 29.0 million to EUR 30.5 million. Consolidated net income increased to EUR 32.4 million (previous year: EUR 29.0 million). The Managing and Supervisory boards will propose to the AGM on July 1, 2015, to raise the dividend per share by 6.7 % from EUR 0.45 to EUR 0.48.
As Holger Pilgenröther, CFO of VIB Vermögen AG, outlines: "Efficient in-house management of our real estate portfolio enabled us to again boost our operating earnings faster than our rate of revenue growth in 2014. We have also further reduced our borrowing costs thanks to the favourable interest rate environment – the average interest rate on our borrowings portfolio amounted to 3.91 % on the balance sheet date. Further fixed interest arrangements on annuity loans will expire over the coming two to three years. Given today's interest-rate level, this offers additional opportunities to cut our interest costs over the coming years. Along with our operational expansion, this will also drive further income and NAV growth for us."
On the debt side, VIB Vermögen AG finances itself predominantly through annuity loans. The company has also facilitated its growth on the equity side through mandatory convertible bond issues over the past three years. Given EUR 33.2 million of issue proceeds from the mandatory convertible bond that was issued in December 2014 and the positive consolidated income in the period under review, the company's equity ratio increased to 39.4 % on the reporting date (previous year: 37.0 %). Thanks to a combination of a sustainable financing structure and solid equity backing, loan-to-value (LTV) as well as net asset value (NAV) saw a further marked enhancement from 56.6% to 53.7% respectively to EUR 360.5 million on the balance sheet date (previous year: EUR 307.6 million). Basic NAV per share stood at EUR 14.54 on the reporting date (previous year: EUR 13.88), and diluted NAV per share amounted to EUR 14.52 (previous year: EUR 13.52).
In the 2015 fiscal year, the company aims to continue to chart its growth course and leverage further economies of scale, as explained by Martin Pfandzelter, Managing Board member responsible for the Real Estate area: "We develop growth – for our tenants and for our shareholders. During the coming business year, we will continue to focus on purchases in the attractive sectors of wholesale and retail, as well as logistics and light industry, and we are positioning ourselves as a strong partner to SMEs in the Southern German region with our high-yielding development projects.
With a look to the 2015 fiscal year, the Managing Board of VIB Vermögen AG is assuming growth in all significant Group figures: "With regard to the full fiscal year, we anticipate total operating revenue of between EUR 74.0 million and EUR 77.0 million, EBIT between EUR 53.5 million and EUR 56.0 million, and EBT between EUR 33.0 million and EUR 35.0 million, in each case before valuation effects", notes Pilgenröther.
The 2014 annual report can be downloaded as from today at