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Interim Announcement Q1 2015WE DEVELOP GROWTH
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1 INTERIM ANNOUNCEMENT Q1 2015
// Key Group indicators
In EUR thousand01/01/2015
- 31/03/201501/01/2014
- 31/03/2014 Change
Highlights
Revenue 17,983 16,886 +6.5%
Total operating revenue 18,097 16,980 +6,6%
Changes in value for investment properties 950 1,103 -13.9%
EBIT 15,003 14,112 +6.3%
Earnings before tax (EBT) 9,863 9,107 +8.3%
EBT margin 54.5% 53.6% -
Adjusted earnings before tax (EBT, adjusted for valuation
effects and extraordinary items) 8,913 8,028 +11.0%
Consolidated net income 8,264 7,702 +7.3%
Earnings per share (undiluted, in EUR)1 0.28 0.30 -5.1%
FFO absolute1 7,913 7,193 +10.0%
FFO per share (in EUR) 0.29 0.29 +/-0%
31/03/2015 31/12/2014
Net asset value (NAV) per share (undiluted, in EUR)2 14.88 14.54
+2.3%
Key data (as of: March 31, 2015)
Market capitalisation on the reporting date (in EUR millions)
420.8
Number of shares2 24,783,906
Share price on reporting date (XETRA, in EUR) 16.98
German Securities Code (WKN) 245751
Stock exchanges / market segmentMunich: Open market
(m:access)Frankfurt: Open Market / XETRA
1 Average number of shares during the reporting period: Q1/2015:
27,579,833; Q1/2014: 25,227,231 2 Shares in issue as of the
reporting date: 31/03/2015: 24,783,906; 31/12/2014: 24,783,906
// The share
// share price (since January 1, 2014) (index comparison with
EPRA and DAX and SDAX equity indices)
EUR
12.0
10.0
16.0
14.0
01.04.1401.01.14 01.10.1401.07.14 01.01.15 01.04.15
100%
75%
150%
175%
125%
18.0
20.0
— EPRA-Index Germany — VIB— SDAX— DAX
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2 INTERIM ANNOUNCEMENT Q1 2015
// VIB Vermögen AG: Strong growth in first quarter of 2015
Operating activities
VIB Vermögen AG is a medium-sized company specialised in
commercial real estate management, and has now
been operating successfully on the markets for more than 20
years. The focus in the high-growth region of southern
Germany is on real estate from the logistics/light industry and
retail/wholesale sectors. Founded as an unincorporated
firm in 1993, it was converted into a public stock corporation
in 2000. VIB's shares have been listed on the stock
exchange of Munich (m:access) and Frankfurt (Open Market, XETRA)
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 long-term to its own portfolio, and
generate rental income from them. VIB also holds investments in
companies with real estate assets. In total, the VIB
Group portfolio as of April 1, 2015 comprises 102 attractive
logistics properties, shopping and specialist retail centres,
industrial buildings, as well as commercial and service centres
with a total rentable space of around 950,000 sqm.
Funding via annuity loans allows VIB to pursue a sustainable
financing approach. The company is able to continuously
increase its net asset value (NAV) through the ongoing repayment
of these loans and the resultant interest savings. It
also reduces the refinancing risk that can arise when concluding
interest-only loans, for example.
Success factors
Develop-or-Buy-and-Hold strategy Sustainable financing strategy
Inhouse portfolio management
fHigh and continuous earnings based on hold strategy
f Strong regional network drives:
f Low transaction costs
f Fast execution
f Profitable developments
f Investments in growth sector in economically strong Southern
Germany
f Financing by annuity loans
fNo refinancing needs
fGrowing amortisation component elevates the company's net asset
value
fBalanced leverage
fHigh equity ratio
f Intensive and permanent contact with our tenants
f Fast communication and promt reaction to changes
f Low vacancy
f Low cost ratio
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3 INTERIM ANNOUNCEMENT Q1 2015
Market environment
According to a joint forecast published by its leading economic
research institutions, Germany is on an uptrend. With
regard to 2015, gross domestic product (GDP) is expected to grow
by 2.1% in real terms (previous year: 1.9%), with
experts predicting that growth during the first quarter 2015
will have amounted to 0.6% (previous year: 0.8%).1
Global trade growth and domestic demand in Germany are
particularly relevant for tenants of VIB's logistics
properties. Global trade volumes were up by 3.4% in 2015
(previous year: 3.1%), according to estimates produced
by the International Monetary Fund (IMF), with German domestic
demand having risen by 2.5% on a price-adjusted
basis, according to the joint forecast (previous year: 1.1%).
Inflation and purchasing power trends in Germany are of
particular significance for retail property tenants. The
inflation rate in Germany in 2015 is expected to amount to 0.5%
(previous year 0.9%), thereby significantly undercutting the
almost 2% target level set by the European Central Bank
(ECB). Purchasing power per capita in Germany is set to grow by
2.7% in nominal terms.2
Especially the low interest-rate level in the Eurozone and the
weak euro are bolstering the importance of real estate
as an asset class, and encouraging capital flows into the German
real estate market. Properties worth a total of
EUR 9.5 billion traded in the first quarter (previous year: EUR
10.0 billion) reflect an awareness of quality among
investors that is prompting them to examine acquisitions
carefully, despite greater pressure to invest. Office
properties
continue to comprise the highest proportion of transaction
volumes, accounting for around 45% of the total. Retail
properties' share of the total registered a significant increase
to 31% (previous year: 22%). Warehouse and logistics
real estate accounted for 7% of transaction volumes (previous
year: 9%).
Germany Future Atlas VIB real estate locations
Regions and their chances in future:Best chancesVery good
chancesGood chancesLight chancesBalanced chances and risksLight
risksHigh risksVery high risks
Source: Prognos AG, 2013
Logistics/Light industry
Retail
Offices Commercialbuildings & others
1
http://www.cesifo-group.de/de/ifoHome/presse/Pressemitteilungen/Pressemitteilungen-Archiv/2015/Q2/pm-20150416-GD-ifo.html2
http://www.gfk.com/de/news-und-events/presse/pressemitteilungen/seiten/gfk-kaufkraftstudie-deutschland.aspx
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4 INTERIM ANNOUNCEMENT Q1 2015
Business trends
VIB Vermögen continued on its investment path during the first
quarter of the 2015 fiscal year. On February 1, 2015,
the company transferred the fourth MAN service station that it
has developed itself to its portfolio. This service station
is located in Freiburg-Umkirch and comprises an investment
volume of EUR 7.5 million. The service station generates
a rental return of 7.4% from this date, and is rented for 20
years.
With effect as of April 1, 2015, VIB also acquired a recently
revitalised specialist retail centre in a strongly frequented
business park in Neu-Ulm (total investment volume: EUR 14.8
million). The property is rented 100% to companies
of high credit standing, most of whom have already been tenants
of the property of many years' standing. Rental
contracts have been newly negotiated for 15-year periods for two
thirds of the total rental area of 18,740 sqm.
This property generates a rental return of around 7.6%. Rental
income from the property will be included in VIB's
consolidated revenue from the second quarter of the 2015 fiscal
year.
Consolidated revenue advanced by 6.5% to EUR 18.0 million in the
first quarter (Q1/2014: EUR 16.9 million). Total
operating revenue was up by 6.6% to EUR 18.1 million (Q1/2014:
EUR 17.0 million). This growth derives from rental
income from new properties which were not yet, or only
partially, part of the real estate portfolio in the prior-year
quarter.
Value changes to investment properties of EUR 1.0 million
(Q1/2014: EUR 1.1 million) were mainly attributable
to the property in Freiburg-Umkirch that the company developed
itself. Expenses for investment properties
(operating costs and repairs) of EUR 2.9 million were only
slightly ahead of the level of the prior-year period (Q1/2014:
EUR 2.8 million). Lower operating costs were offset by higher
maintenance expenses in this context. Personnel
expenses amounted to EUR 0.8 million (Q1/2014: EUR 0.7 million),
while other operating expenses were reduced
to EUR 0.3 million (Q1/2014: EUR 0.4 million).
Earnings before interest and tax (EBIT) were up by 6.3%, in line
with consolidated revenue growth, to
EUR 15.0 million (Q1/2014: EUR 14.1 million). Given the
favourable interest rate environment, interest expenses
of EUR 5.1 million were recorded only slightly above the level
of the previous-year quarter, despite brisk investment
activity (Q1/2014: EUR 5.0 million). Earnings before interest
and tax (EBIT) advanced by 8.3% year-on-year to
EUR 9.9 million (Q1/2014: EUR 9.1 million). When adjusted for
valuation effects and extraordinary items, adjusted
EBT rose by 11.0% to EUR 8.9 million (Q1/2014: EUR 8.0
million).
After deducting income taxes of EUR 1.6 million (current taxes:
EUR 0.7 million; deferred taxes: EUR 0.9 million),
the Group generated consolidated net income of EUR 8.3 million
(Q1/2014: EUR 7.7 million). Despite the higher
average number of shares in issue, earnings per share were held
at a high level as before, amounting to EUR 0.28
(Q1/2014: EUR 0.30).
FFO (funds from operations) improved compared with the
prior-year period to EUR 7.9 million (Q1/2014:
EUR 7.2 million), while FFO per share of EUR 0.29 remained at
the level of the previous-year period, despite the
higher average number of shares (Q1/2014: EUR 0.29).
Due to the profit that was generated during the period under
review and ongoing repayment of annuity loans, VIB
lifted its net asset value (NAV, undiluted) further compared
with the value at the end of the 2014 fiscal year to
a level of EUR 368.7 million (December 31, 2014: EUR 360.5
million). NAV per share (undiluted) increased to EUR
14.88 as of March 31, 2015 compared with EUR 14.54 as of
December 31, 2014.
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5 INTERIM ANNOUNCEMENT Q1 2015
Outlook
Given the expectation of favourable macroeconomic conditions and
the current low interest rate environment, VIB is
assuming that the positive trend in the commercial real estate
market in Germany will continue in 2015, especially in
the Southern German region. Based on corporate planning, the
Management Board of VIB Vermögen AG continues
to expect the following for the 2015 fiscal year:
fgrowth in operating revenue to between EUR 74.0 million and EUR
77.0 million
f an increase in earnings before interest and tax (EBIT) before
valuation effects and extraordinary items to
between EUR 53.5 million and EUR 56.0 million, and
fgrowth in earnings before interest and tax (EBIT) before
valuation effects and extraordinary items to
between EUR 33.0 million and EUR 35.0 million.
This guidance could be affected by a serious change to
macroeconomic conditions, changes to the general interest-
rate level, and further acquisitions or sales of properties
during the 2015 fiscal year.
Neuburg/Danube, May 12, 2015
The Managing Board
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6 INTERIM ANNOUNCEMENT Q1 2015
// IFRS consolidated income statement
In EUR thousand01.01.2015
- 31.03.201501.01.2014
- 31.03.2014
Revenue 17,983 16,886
Other operating income 114 94
Total operating revenue 18,097 16,980
Changes in value for investment properties 950 1,103
Expenses for investment properties -2,925 -2,829
Personnel expenses -769 -723
Other operating expenses -339 -397
Earnings before interest, tax, depreciation and amortisation
(EBITDA) 15,014 14,134
Amortisation and depreciation -11 -22
Earnings before interest and tax (EBIT) 15,003 14,112
Profit / loss on investments accounted for applying the equity
method -55 107
Income / expense from measurement of financial derivatives 0
-24
Other interest and similar income 19 22
Interest and similar expenses -5,063 -5,048
Expenses from guaranteed dividend -41 -62
Earnings before tax (EBT) 9,863 9,107
Income taxes -1,599 -1,405
Consolidated net income 8,264 7,702
Group shareholders' share of earnings 7,746 7,439
Non-controlling shareholders' share of earnings 518 263
Earnings per share (undiluted in EUR) 0.28 0.30
FFO per share (in EUR) 0.29 0.29
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7 INTERIM ANNOUNCEMENT Q1 2015
// Contact
Investor Relations
VIB Vermögen AG
Petra Riechert
Luitpoldstraße C70
86633 Neuburg / Danube
Tel.: +49 (0)8431 504 952
Fax: +49 (0)8431 504 973
E-Mail: [email protected]
cometis AG
Ulrich Wiehle
Tel: +49 (0)611 205855 11
Fax: +49 (0)611 205855 66
E-mail: [email protected]
