Vermögen AG. Real Estate. Strategies. Value

Transcription

1 Vermögen AG Real Estate. Strategies. Value INTERIM ANNOUNCEMENT Q3 2013

2 1 GROUP INDICATORS In EUR thousand Change Income statement ratios Revenue 47,918 43, % 16,247 15,484 16,187 Total operating revenue 48,199 43, % 16,373 15,565 16,261 Changes in value for investment properties 1,385 3, % ,693 EBIT 36,768 35, % 12,044 11,237 13,487 EBIT margin 76.3 % 81.5 % % 72.2 % 82.9 % Earnings before tax (EBT) 23,020 21, % 6,868 7,314 8,838 EBT margin 47.8 % 48.7 % % 47.0 % 54.4 % Consolidated net income 19,301 17, % 5,727 6,165 7,409 Earnings per share (undiluted) EUR 0.87 EUR % EUR 0.26 EUR 0.28 EUR 0.33 FFO per share EUR 0.85 EUR % EUR 0.29 EUR 0.27 EUR 0.29 SHARE Key data (as of: September 30, 2013) German Securities Code (WKN) Number of shares in issue* 21,374,706 Share price as of balance sheet date (XETRA) EUR Market segment / Stock exchanges Freiverkehr (m:access) / München; Open Market, XETRA / Frankfurt Market capitalisation as of the balance sheet date EUR 237,900,478 * including already converted mandatory convertible bonds 2012 / 14 Share price performance (as of November 11, 2013) EUR 12.0 EPRA-Index Germany VIB SDAX 130% % % % %

3 2 VIB VERMÖGEN AG REPORTS FURTHER GROWTH IN OPERATING REVENUE AND CONSOLIDATED NET INCOME DURING FIRST NINE MONTHS OF 2013 ffoperating revenue up by around 10 % to EUR 48.2 million ffconsolidated net income grows by approximately 8 % to EUR 19.3 million ffadjusted EBT up 17 % year-on-year to EUR 20.4 million BUSINESS TRENDS VIB Vermögen AG is a medium-sized real estate holding company whose investments focus mainly on the Southern German region. The company pursues a develop-or-buy-and-hold strategy to secure and expand its portfolio long-term. This is achieved through purchasing already existing real estate, as well as through developing its own properties. The VIB Group s portfolio comprises 97 properties with a total rentable area of approximately 886,000 m² as of the September 30, 2013 reporting date. Along with a concentration on logistics and shopping / specialist market centres, the company holds industrial sites as well as commercial and service centres in its portfolio. This allows the VIB Group not only to benefit from positive trends in different sectors but also to even out fluctuations. RESULTS OF OPERATIONS Thanks to brisk investment activity over recent months and resultant higher rental income, the revenue of VIB Vermögen AG at the end of the third quarter was up year-on-year, as already in the two previous quarters of its current fiscal year. This trend was positively impacted by the acquisition of two new properties in Erlangen from July 1, 2013, which more than offset the disposal of a property in Günzburg in the first quarter. VIB Vermögen AG generated EUR 47.9 million of revenue during the first nine months of the year (9M / 2012: EUR 43.7 million), representing 9.6 % year-on-year growth. Other operating income rose to EUR 281 thousand (9M / 2012: EUR 243 thousand), and mainly comprises insurance reimbursements and costs passed on to tenants. Total operating income consequently grew to EUR 48.2 million as of September 30 (9M / 2012: EUR 44.0 million), reflecting EUR 4.2 million (+9.6 %) growth. An amount of EUR 1.4 million is reported under the changes in value for investment properties item (adjustments to market values of portfolio properties). The previous year s figure stood at EUR 3.8 million. Operating expenses for investment properties were higher compared to the previous year s values due to the gradual expansion of the portfolio over recent months and the related higher operating costs and maintenance expenses. Expenses for investment properties consequently rose by 4.8 % to EUR 9.1 million (9M / 2012: EUR 8.6 million). Personnel expenses reported a slight increase due to the year-on-year expansion of business operations, and amounted to EUR 2.0 million (9M / 2012: EUR 1.8 million). Other operating expenses were up by EUR 0.3 million to EUR 1.7 million (9M / 2012: EUR 1.4 million), which is attributable to expenses for PR work, legal and consultancy costs, and adjustments made to specific value allowances

4 3 applied to receivables. After a slight increase in amortisation and depreciation (EUR 71 thousand compared with EUR 66 thousand in the previous year), earnings before interest and taxes (EBIT) were up by 2.6 % to EUR 36.8 million (9M / 2012: EUR 35.8 million). Earnings from investments accounted for using the equity method stood at EUR 49 thousand during the first nine months of 2013 (9M / 2012: EUR 202 thousand). To this is added a EUR 1.0 million positive earnings contribution from deconsolidation (9M / 2012: EUR 0 thousand), result of the disinvestment of shares in Gewerbepark Günzburg GmbH, reflecting the realistic valuation of the sold property. Income of EUR 228 thousand was reported (9M / 2012: EUR 164 thousand) due to the changes in the market value of a long-standing CHF-based currency derivative. The guaranteed dividend to be paid to the remaining shareholders of BBI Bürgerliches Brauhaus Immobilien AG amounted to EUR 174 thousand (9M / 2012: EUR 176 thousand). The net interest expense rose only slightly by EUR 265 thousand to EUR million, despite the increase in debt accompanying investment activity (9M / 2012: EUR 14.6 million). Interest income fell to EUR 111 thousand (9M / 2012: EUR 150 thousand) due to a reduced cash position and continued low-interest investment terms. Interest expenses amounted to EUR 15.0 million compared with EUR 14.8 million in the prior-year period, with ongoing loan redemptions and refinancing at the low interest-rate level exerting a positive impact. The third quarter was concluded with cumulative earnings before taxes (EBT) of EUR 23.0 million. These earnings were up by 7.4 % compared with the comparable period of the previous year (EUR 21.4 million). After deducting income taxes, which increased to EUR 3.7 million (9M / 2012: EUR 3.5 million) comprising effective taxes of EUR 1.5 million and deferred taxes of EUR 2.2 million the Group generated consolidated net income of EUR 19.3 million. Compared with the EUR 17.9 million generated as of September 30, 2012, consolidated net income consequently grew by 7.6 % (+ EUR 1.4 million). Earnings per share (undiluted) improved by 13.0 % year-on-year to EUR 0.87 (EUR 0.77). Excluding value changes to investment properties (+ EUR 1.4 million), extraordinary deconsolidation items (+ EUR 1.0 million) and income from the measurement of financial derivatives (+ EUR 0.2 million), the Group generated EUR 35.4 million of adjusted EBIT in the first nine months of its current financial year (9M / 2012: EUR 32.1 million) and adjusted EBT of EUR 20.4 million (9M / 2012: EUR 17.5 million). This reflects the company s ongoing high and continuously-rising profitability. FFO (funds from operations; an indicator of the company s operative profitability) grew to EUR 18.1 million (9M / 2012: EUR 15.7 million), representing a 15.3 % increase. FFO per share rose to EUR 0.85 compared with EUR 0.74 as of September 30, 2012, reflecting 14.9 % year-on-year growth.

5 4 CONSOLIDATED INCOME STATEMENT (IFRS) in EUR thousand Revenue 47,918 43,739 Other operating income Total operating revenue 48,199 43,982 Changes in value for investment properties 1,385 3,775 Expenses for investment properties -9,065-8,648 Personnel expenses -2,009-1,773 Other operating expenses -1,671-1,432 Earning before interests, taxes, depreciation and amortisation (EBITDA) 36,839 35,904 Amortisation and depreciation Earnings before interests and taxes (EBIT) 36,768 35,838 Profit / loss on investments accounted for using the equity method Profit / loss on deconsolidation 1,015 0 Financial derivatives measurement profit / loss Other interest and similar income Interest and similar expenses -14,977-14,751 Expenses from guaranteed dividend Earnings before tax (EBT) 23,020 21,427 Income tax -3,719-3,483 Consolidated net income 19,301 17,944 Earnings attributable to Group shareholders 18,484 16,468 Earnings attributable to non-controlling shareholders 817 1,476 Earnings per share in EUR (undiluted) FFO per share in EUR MARKET TRENDS The German economy grew by 0.7 % in the second quarter of 2013, according to forecasts produced by the German Institute for Economic Research (DIW). Current growth-drivers especially include strong domestic consumption due to rising wages, low inflation and a stable labour market. Both private-sector and publicsector construction investments are making their contribution to the gathering growth momentum. Both

6 5 strong domestic demand as well as a return to stronger Eurozone exports should contribute to 1.7 % GDP growth in 2014, according to the DIW. Investment activity on the German commercial property market has performed very well with EUR 19.1 billion of transaction volumes as of the end of the first nine months of 2013 (+28 % year-on-year), according to data produced by Jones Lang LaSalle, who are forecasting EUR 30 billion for the full year. Transaction volumes divide as follows among the various types of use: office properties 43 %, retail properties 29 %, logistics and industrial properties 10 %, mixed real estate and other properties 9 % each. Investments and logistics properties which, along with retail properties, form a focus for VIB Vermögen AG report continuous growth since 2009 from around EUR 700 million to EUR 2.17 billion after the first nine months of 2013 according to BNP Paribas Real Estate. The trend in area turnover of warehouse and logistics spaces has also being clearly on the up since 2003: compared with 1.9 million m² sold or rented in 2003, this figure had already risen to 5.1 million m² by Demand is set to remain high given the constant growth in online retailing. BNP Paribas real estate experts also see retail properties on an uptrend. Almost EUR 5.52 billion of retail property investment volume during the first nine months of 2013 reflects an approximately 22 % year-on-year increase. This positive trend is set to continue given the continued good consumption climate and above-average purchasing power throughout the southern German states. STRATEGY AND OUTLOOK The revenue and earnings of VIB Vermögen AG continued to report gratifying growth in the third quarter of The company remains a beneficiary of its sustainable financing policy, with good equity backing, and debt that is predominantly secured long-term. The concentration of its business activities on the Southern German region helps VIB Vermögen AG to achieve its operating success. This high-growth region is expected to continue to experience growth in the future. The Managing Board also realised some lucrative investments as a result of its close regional network. The company s net asset value is strengthened through active asset management and continuous maintenance and modernisation measures. Even in the case of weaker economic growth, the conclusion of long-term rental agreements, strong credit rated tenants and a diversified tenant structure continue to ensure that long-term rental income can be generated. The Managing Board assumes that the company will continue to develop positively over the remaining months of the current year and for the further future. The company is maintaining its 2013 annual forecast (operating revenue: EUR million; EBIT: EUR million; EBT EUR million; in each case before valuation effects). In future, VIB Vermögen AG will continue to pursue the course it has adopted of investing on a targeted basis, thereby generating rising income and attractive rental returns. Neuburg / Danube, November 14, 2013 The Managing Board

7 6 CONTACT INVESTOR RELATIONS VIB Vermögen AG Petra Riechert Phone: +49 (0) Fax: +49 (0) cometis AG Ulrich Wiehle / Patrick Ortner Phone: +49 (0) Fax: +49 (0) ortner@cometis.de