DGAP-News: VIB Vermögen AG

VIB Vermögen remains on a profitable growth track in the first half of 2017
 

- Operating revenue up by 5.5% to EUR 41.2 million

- Above-average increase of 15.4% in adjusted earnings before tax (EBT)

- Guidance confirmed for 2017 financial year as a whole
 

Neuburg/Danube, August 9, 2017 - VIB Vermögen AG, a company specialising in the acquisition, development and portfolio management of commercial properties, was once again able to record significant increases in both revenue and earnings in the first six months of 2017. This was chiefly due to higher rental incomes from new investments, as well as lower interest expenses on existing loans.

The company's operating revenue rose by 5.5% in the first half of 2017, climbing from EUR 39.1 million to EUR 41.2 million. Adjusted for valuation effects, the earnings before interest and taxes (EBIT) climbed by 6.1% from EUR 30.2 million to EUR 32.1 million. Following adjustment for valuation effects and extraordinary items, earnings before tax (EBT) grew much more strongly by 15.4% from EUR 20.0 million to EUR 23.0 million. The consolidated net income improved by 13.4%, from EUR 19.3 million to a total of EUR 21.8 million. Given the average number of shares in the financial year, this equates to an increase of 13.4% in diluted and undiluted earnings per share, from EUR 0.67 to EUR 0.76.

Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG: "We can look back on six highly successful months in which we have recorded above-average increases in both revenue and earnings. Key for this, in addition to the strong operating letting result, was especially the positive effect of the further decline in the average interest rate on our loan portfolio, which was 2.82% as of 30 June, 2017."

This positive course of business is also reflected in the property sector-specific KPIs. FFO (funds from operations), for example, as an indicator of cash inflow from operating activities, improved by 14.4% in the first half of 2017, rising from EUR 17.5 million to EUR 20.0 million. Undiluted NAV (net asset value), i.e. the value of total assets less liabilities, increased by 4.8% compared to the end of 2016 to reach EUR 492.8 million. NAV per share improved accordingly by 4.8%, from EUR 17.05 to EUR 17.87 per share.

The operational highlights of the first six months of the current financial year included the on-budget handover of two in-house developments at Interpark Kösching near Ingolstadt, with both properties generating above-average net initial yields of 8.0% and 8.3%, respectively.

"We are delighted about the results and regard them as an endorsement of our strategic approach of growing increasingly by means of highly profitable in-house developments. We continue to observe strong interest in the market for commercial properties. With this in mind, we have already secured attractive sites at an early stage to enable further projects," explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG.

Taking into account the results for the year so far, VIB Vermögen has confirmed the guidance for the 2017 financial year made in the 2016 Annual Report.

The full half-year report of VIB Vermögen AG for the 2017 financial year can be accessed at vib-ag.de.

Contact

Investor Relations:

VIB Vermögen AG
Petra Riechert
Tilly-Park 1
86633 Neuburg/Donau
Tel. +49 (0)8431 9077 952
Fax: +49 (0)8431 9077 973
Email: petra.riechert@vib-ag.de
 

Profile of VIB Vermögen AG (including BBI Immobilien AG)

VIB Vermögen AG is a medium-sized company specialising in commercial real estate management that has been operating successfully for more than 20 years. The company focuses on properties from the logistics/light industry and retail sectors in the economically strong southern German region. VIB's shares have been listed on the Munich (m:access) and Frankfurt (Open Market) stock exchanges since 2005.

VIB's business model is based on a "develop-or-buy-and-hold" strategy. Firstly, VIB acquires properties that are already rented. Secondly, it completely develops new properties in order to transfer them to its own portfolio on a long-term basis and generate rental income from them. VIB also holds investments in companies with real estate assets.