Interim Announcement Q WE DEVELOP GROWTH

Transcription

1 Interim Announcement Q WE DEVELOP GROWTH

2 1 // Key Group indicators In EUR thousand 01/01/ /03/ /01/ /03/2014 Change Highlights Revenue 17,983 16, % Total operating revenue 18,097 16,980 +6,6% Changes in value for investment properties 950 1, % EBIT 15,003 14, % Earnings before tax (EBT) 9,863 9, % EBT margin 54.5% 53.6% - Adjusted earnings before tax (EBT, adjusted for valuation effects and extraordinary items) 8,913 8, % Consolidated net income 8,264 7, % Earnings per share (undiluted, in EUR) % FFO absolute 1 7,913 7, % FFO per share (in EUR) /-0% 31/03/ /12/2014 Net asset value (NAV) per share (undiluted, in EUR) % // The share Key data (as of: March 31, 2015) Market capitalisation on the reporting date (in EUR millions) Number of shares 2 24,783,906 Share price on reporting date (XETRA, in EUR) German Securities Code (WKN) Munich: Open market (m:access) Stock exchanges / market segment 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 // share price (since January 1, 2014) (index comparison with EPRA and DAX and SDAX equity indices) EUR % % % % 10.0 DAX SDAX EPRA-Index Germany VIB 75%

3 2 // 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 VIB's shares have been listed on the stock exchange of Munich (m:access) and Frankfurt (Open Market, XETRA) since 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 ffhigh and continuous earnings based on hold strategy ffstrong regional network drives: fflow transaction costs fffast execution ffprofitable developments ffinvestments in growth sector in economically strong Southern Germany fffinancing by annuity loans ffno refinancing needs ffgrowing amortisation component elevates the company's net asset value ffbalanced leverage ffhigh equity ratio ffintensive and permanent contact with our tenants fffast communication and promt reaction to changes fflow vacancy fflow cost ratio

4 INTERIM ANNOUNCEMENT Q 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 Regions and their chances in future: Best chances Very good chances Good chances Light chances Balanced chances and risks Light risks High risks Very high risks VIB real estate locations Logistics/ Light industry Offices Retail Commercial buildings & others Source: Prognos AG,

5 4 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 million (December 31, 2014: EUR million). NAV per share (undiluted) increased to EUR as of March 31, 2015 compared with EUR as of December 31, 2014.

6 5 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: ffgrowth in operating revenue to between EUR 74.0 million and EUR 77.0 million ffan 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 ffgrowth 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 interestrate level, and further acquisitions or sales of properties during the 2015 fiscal year. Neuburg/Danube, May 12, 2015 The Managing Board

7 6 // IFRS consolidated income statement In EUR thousand Revenue 17,983 16,886 Other operating income 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 Other operating expenses Earnings before interest, tax, depreciation and amortisation (EBITDA) 15,014 14,134 Amortisation and depreciation Earnings before interest and tax (EBIT) 15,003 14,112 Profit / loss on investments accounted for applying the equity method Income / expense from measurement of financial derivatives 0-24 Other interest and similar income Interest and similar expenses -5,063-5,048 Expenses from guaranteed dividend 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 Earnings per share (undiluted in EUR) FFO per share (in EUR)

8 7 // Contact Investor Relations VIB Vermögen AG Petra Riechert Luitpoldstraße C Neuburg / Danube Tel.: +49 (0) Fax: +49 (0) petra.riechert@vib-ag.de cometis AG Ulrich Wiehle Tel: +49 (0) Fax: +49 (0) wiehle@cometis.de