VIB Vermögen AG boosts consolidated earnings and raises dividend
- Revenues rose to € 52.3 million (previous year: € 48.2 million)
- Consolidated result of € 16.9 million achieved (previous year: € 12.3 million)
- Management Board proposes € 0.30 dividend to AGM (previous year: € 0.25)
- FFO of € 1.13 per share
- Net asset value (NAV) of € 12.36 per share
VIB Vermögen AG, a company specialising in managing commercial real estate portfolios, reports a further improvement in its operating business last year, according to provisional figures. The real estate company, which is based at Neuburg an der Donau, Germany, achieved revenues of € 51.8 million on an IFRS accounting basis (previous year: € 49.2 million). The VIB Group generated operating income of € 52.3 million (previous year: € 48.2 million), when taking into account € 2.8 million of other operating income (previous year: € 2.2 million), and a € -2.3 million non-cash-effective valuation adjustment to investment properties (previous year: € -3.2 million). Since the former beverages segment was reported as a discontinued operation (IFRS 5) retrospectively as of January 1, 2010 due to the IPO of BHB Brauholding AG, the previous year's comparable figures relate to the real estate segment that was previously reported separately.
Expenses for investment properties amounted to € 11 million in the financial year elapsed (previous year: € 9.6 million). Along with ongoing operational costs, this increase is primarily attributable to various renovation measures for portfolio properties. After deducting € 2.4 million of personnel expenses (previous year: € 1.9 million), and € 3.4 million of other operating expenses (previous year: € 2.7 million), earnings before interest and tax (EBIT) stood at € 35.4 million, reflecting a 5% increase compared with the previous year's level of € 33.8 million. Compared with € 14.3 million in the 2009 financial year, earnings before tax (EBT) fell slightly to € 12.8 million, despite lower interest expenses of € 18.8 million (previous year: € 19.2 million). This is mainly due to the formation of a non-cash-effective provision for a contingent loss for an interest-rate swap based on Swiss francs in an amount of € 2.6 million for the subsidiary BBI Immobilien AG.
Special effects in the income tax area, which resulted from the deconsolidation of the beverages segment, fed through to a positive income tax contribution of € 3.7 million. VIB Vermögen AG accordingly generated a consolidated result of € 16.9 million (previous year: € 12.3 million). This corresponds to earnings per share of € 0.91 (previous year: € 0.70).
The Funds from Operations (FFO) metric, an important indicator for the VIB Group of operating cash inflows from its real estate business, amounted to € 1.15 per share in the financial year elapsed (previous year: € 0,95). Further growth in net asset value (NAV) to € 12.36 per share (previous year: € 11.85) reflects the portfolio's value retention. This growth results primarily from continuing redemption payments for financial liabilities.
Ludwig Schlosser, CEO of VIB Vermögen AG, expressed his satisfaction accordingly: "Our high profitability, and our property portfolio's balanced risk distribution, show that we coped successfully with the 2010 business year despite major organisational challenges such as the spin-off of the beverages segment. We boosted revenue and earnings considerably compared with the 2009 record year. We would like our shareholders to participate in this success. For this reason, we will propose to the AGM on July 7, 2011 that it distributes a dividend of € 0.30 per share."
Peter Schropp, Management Board member responsible for the real estate segment at VIB Vermögen AG, also takes an optimistic view of the current business year: "Our focus in 2010 was mainly on active asset management and the consolidation of our property portfolio. We now enjoy an excellent starting base from which to invest again to a greater extent." The company's investment approach will nevertheless not be one of growth at any price, as Peter Schropp went on to add: "We only consider acquisitions if the respective properties correspond with our stringent investment criteria. We will also continue to concentrate on the high-growth market of Southern Germany in the future. In view of this approach, we expect that we will again grow both revenue and earnings in 2011 - presupposing that we retain our existing cost structure, and that market conditions remain as they are."
The company will publish its final 2010 results on April 12, 2011, together with its annual report on the company's website at www.vib-ag.de, within the Investor Relations area.
VIB Vermögen AG
VIB Vermögen AG (WKN 245751 / ISIN DE0002457512) is a medium-sized real estate holding company, whose investments focus on commercial properties in Southern Germany. Formed as a partnership in 1993, VIB Vermögen AG was transformed to become an Aktiengesellschaft (German public limited company) in 2000. Since then, the company has developed core competences in the acquisition and management of its own properties and participating interests in companies with real estate portfolios.
The VIB Group pursues a buy-and-hold strategy. It both develops properties for its own portfolio and also acquires existing properties. The VIB Group's real estate portfolio includes various logistics properties and industrial facilities, shopping and specialist retail centers as well as commercial and service centers. The VIB Group generates sustainable rental returns with a total rental area of approx. 658.000m².