DGAP-News: VIB Vermögen AG

2017 preliminary results

Strong earnings increase for VIB Vermögen in 2017

- Revenue up by 5.0% to EUR 83.6 million

- Above-average increase in adjusted earnings before tax (EBT) of 15.4% to EUR 47.1 million

- Guidance for the 2017 fiscal year met in full

- Considerable proposed dividend increase of 9.1% to EUR 0.60 per share

- Further growth in revenue and earnings planned for 2018

Neuburg/Danube, March 21, 2018 - VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, has enjoyed a very successful 2017 fiscal year.

The preliminary IFRS consolidated figures show that revenue rose by 5.0% to EUR 83.6 million (previous year: 79.5 million), chiefly due to the increase in rental income resulting from new investments and rental indexing. In the reporting period, positive changes in value for investment properties came in at EUR 17.4 million (previous year: EUR 18.0 million). Expenses for investment properties climbed to EUR 13.8 million (previous year: EUR 13.3 million). Personnel expenses declined to EUR 3.6 million in the year under review (previous year: EUR 3.8 million). Other operating expenses rose to EUR 1.8 million (previous year: EUR 1.6 million).

Strong growth in earnings
Overall, earnings before interest and taxes (EBIT), adjusted for valuation effects, rose by 5.5% to EUR 64.4 million (previous year: EUR 61.1 million). Due to a decrease in overall liabilities and more favourable financing terms, interest expenses fell sharply by EUR 3.0 million, or 14.8%, from EUR 20.4 million to EUR 17.4 million.

When adjusted for valuation effects, earnings before tax (EBT) rose considerably by 15.4% to EUR 47.1 million (previous year: EUR 40.8 million). The consolidated net income improved by 9.2% to EUR 53.9 million (previous year: EUR 49.4 million). Given the number of shares, this equates to an increase of 9.2% in earnings per share, which now stand at EUR 1.87 (previous year: EUR 1.71).

"With our focus on in-house developments, we continue to see further potential for growth and rising profitability in the future," explains Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG. "At the same time, we are working continuously on our site pipeline for future projects and reviewing the possibilities for targeted acquisitions of promising properties," continues Pfandzelter.

As of the end of the 2017 fiscal year, equity had risen by EUR 39.8 million to EUR 483.4 million (31/12/2016: EUR 443.5 million). The equity ratio climbed by 2.2 percentage points to 41.9% within the one-year period (31/12/2016: 39.7%), thus paying testament to the company's exceptionally solid financing structure.

Improved portfolio indicators
The net asset value (NAV) of the company rose by 9.0% to EUR 512.5 million as of the balance sheet date (31/12/2016: EUR 470.1 million). Given the number of outstanding shares, it also increased by 9.0% to EUR 18.58 per share (31/12/2016: EUR 17.05 per share). Funds from operations (FFO), as an indicator of the company's operating cash inflow, improved considerably in the year under review, rising by 15.2% to EUR 1.49 per share, compared with EUR 1.30 per share in the previous year.

Holger Pilgenröther, Chief Financial Officer of VIB Vermögen, comments the pleasing result: "Operational growth, coupled with the sharp decline in interest expenses, has resulted in strong FFO. This enables us to propose a dividend increase to the Annual General Meeting for the ninth time in a row. This year, we wish to increase the dividend by 0.05 EUR or 9.1% to EUR 0.60 per share."

Further growth anticipated for 2018
2018 is set to be another year of growth, driven by in-house developments in conjunction with targeted acquisitions. Two modern logistics properties - one at Interpark near Kösching and one in Vaihingen/Enz - are currently under construction, with completion scheduled for the second half of 2018. Furthermore, attractive offers to purchase properties and sites are reviewed on an ongoing basis.

2018 guidance
Overall, the Management Board anticipates further revenue growth, coupled with a further increase in profitability, for the current fiscal year. Revenue is expected to increase to between EUR 85.0 million and EUR 89.0 million. The company also expects that EBT will amount to between EUR 48.0 million and EUR 50.5 million (excluding valuation effects and extraordinary items). Funds from operations (FFO) are expected to come in at between EUR 42.0 million and EUR 44.5 million, which is higher than in the previous year.

The company will publish its final results for the 2017 fiscal year together with the 2017 Annual Report on April 25, 2018. A company presentation with details of the 2017 preliminary results can be found at www.vib-ag.de.
 

Contact

Investor Relations:

VIB Vermögen AG
Petra Riechert Tel. +49 (0)8431 9077 952
Tilly-Park 1 Fax: +49 (0)8431 9077 929
86633 Neuburg/Donau 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.