visionary individual beneficial Interim report for the first nine months

Transcription

1 2010 visionary individual beneficial Interim report for the first nine months

2 VIB Vermögen AG successfully continues the positive operating growth enjoyed in previous years in the first nine months of 2010 Revenues total 38.2 million EBT of 10.0 million, consolidated earnings of 12.2 million Positive business confirms forecast Results VIB Vermögen AG s consolidated revenues (IFRS) in the first nine months of 2010 totaled 38.2 million. Taking other operating income of 0.9 million into account, and a non-cash adjustment to the value of investment properties in the amount of -2.4 million, the group thus recorded operating income totaling 36.6 million. Expenses for investment properties of 7.6 million mostly comprised expenses for ongoing operating costs (electricity, gas, water, etc.) and land tax payments and insurance premiums, which are mostly oncharged to the tenants of the corresponding properties. In addition, this item also includes maintenance and renovation costs for the properties. Personnel expenses in the period under review totaled 1.4 million. Consolidated other operating expenses amounted to 2.2 million and are due, in particular, to value adjustments for four loans denominated in Swiss Francs in the amount of 1.0 million. These value adjustments are related to the certain reporting date in particular and without an effect on liquidity. As a result, VIB Vermögen AG recorded EBIT totaling 25.3 million in the first nine months of fiscal year In line with the strong capital expenditure in the previous year, and slight changes in interest rates, interest expenses for financial liabilities totaled 14.5 million. The guaranteed dividend for the outstanding shareholders of BBI Bürgerliches Brauhaus Immobilien AG totaled 195 thousand. Negative results from at-equity investments of 468 thousand meant that EBT totaled 10.0 million as of September 30, There were extraordinary factors for income taxes during the period under review. As a result of the restructuring at the end of 2009 (formation of BHB Brauholding AG and contribution of Herrnbräu GmbH & Co. KG), the basis of calculation for income tax changed as of January 1, As a result, the deferred tax liabilities and the trade tax that they include had to be reduced. The resulting positive effect on taxes as well as the deferred taxes from the current fiscal year and the actual income taxes resulted in positive income tax of 1.9 million. As a result, earnings from continued operations totaled 11.8 million, and earnings from discontinued operations (beverages segment) totaled 366 thousand. The VIB Group thus recorded consolidated earnings of 12.2 million in the first nine months of This corresponds to earnings per share of

3 in T Group 9 months IFRS Real estate 12 months IFRS 1. Revenues 38,158 49, Changes in value for investment properties -2,398-3, Other operating income 860 2,181 = Total operating income 36,620 48, Expenses for investment properties -7,617-9, Personnel expenses -1,382-1, Other operating expenses -2,226-2,493 = EBITDA 25,395 34, Amortization of intangible asstes = EBIT 25,323 33, Net income from investments accounted for using the equity method Financial income Financial expenses -14,505-19, Expenses from guaranteed dividend Extraordinary result = EBT 9,962 13, Income taxes 1,870-1,767 = Earnings from continuing operations 11,832 12,142 Earnings from discontinued operations (IFRS 5) = Consolidated result 12,198 12,142 3

4 Market development The economic recovery in Germany increasingly gained pace in the first nine months of The gross domestic product, adjusted for prices, seasonal and calendar-based factors increased by 0.5 % in the first quarter of 2010, and German GDP lifted by 2.3 % in the second quarter. Experts are also increasingly optimistic for the year as a whole, even though there are still doubts that the rapid growth in the first six months can be continued at the same pace. In addition, the International Monetary Fund (IMF) increased its forecast for Germany from 1.9 % to 3.3 %, and the Kieler Institut für Weltwirtschaft (IfW) also increased its forecast for GDP growth to 3.4 %. This positive growth is due, in particular, to exports, which enjoyed particularly positive growth from January to July 2010 (+17.2% compared to the same period of the previous year), and also to increasingly robust indicators from the domestic economy. According to the German Federal Statistics Office, gross investments in equipment in the first half of 2010 totaled billion, and were thus up 3.5 % compared to the figure from the same period of the previous year. This growth is supported by the European Central Bank s interest rate policy and the fact that base rates are still at a record low of 1.0 %, however the fact that growth is at different paces within the eurozone means that there is not any major latitude in terms of financial policy. In addition, the policy of low interest rates is justified by the fact that inflation is currently at a low level. The overall economic recovery is now also increasingly reflected on the real estate markets. As of September 30, 2010, the transaction volume for commercial properties had a total volume of 13.1 billion. This figure totaled just 10.3 billion for the whole of Of this total, 44 % is due to retail properties, which thus constitute the most important category of use. Office properties accounted for 35 % of the transaction volume, and logistics and industrial property were responsible for 6 % of the total market. 1 Business development VIB Vermögen AG is the parent company of the VIB Group and is a medium-sized real estate holding company, whose investments focus on commercial properties in Southern Germany. The VIB Group s core competences are in the acquisition and management of its own properties and participating interests in companies with real estate portfolios. The company pursues a buy and hold strategy. It acquires portfolio properties and also develops properties for its own portfolio, in order to include these as portfolio properties over the long term. The VIB Group s portfolio currently comprises 85 properties with a total rental area of approx. 645,000 m². These are commercial properties, in particular logistics properties and industrial facilities, shopping and specialist store centers, as well as commercial and service centers. As a result of the high degree of diversification in the portfolio, the VIB Group is comparatively independent of developments in individual industries. 1 Jones Lang LaSalle,

5 There were no major changes in the real estate portfolio in the period under review (January 1, September 30, 2010). The operating focus was on active portfolio and asset management and continued consolidation of the real estate portfolio. As a result, the property in Großostheim is being renovated in close agreement with the tenant, a leading contact lens manufacturer. In addition to expanding the company s own canteen, all of the floors and windows in the property are being renewed. This building work is adapting the property to the commercial tenant's requirements. In addition, optimizing the portfolio includes taking over own development projects. These are then successively included in the portfolio after the projects have been completed. During the period under review, a development project was driven in Frankfurt, in the Martinszehnten district. The logistics property is favorably located close to the A661, and is in the final stages of completion and marketing. IPO for the former subsidiary BHB Brauholding Bayern- Mitte AG The VIB Group s core competence is acquiring and managing commercial properties. During fiscal year 2009, as part of its clear focus on the real estate sector, the Group reorganized its activities in the beverages sector. As a result it formed BHB Brauholding Bayern-Mitte AG (BHB Brauholding AG) in November This company s registered office is in Ingolstadt. The VIB subsidiary BBI Immobilien AG contributed its participating interest in Herrnbräu GmbH & Co. KG, Ingolstadt, to the formation of BHB Brauholding AG. This has put the organizational structures in place for the independent, focused further development of the beverages segment. After the formation of BHB Brauholding AG, VIB Vermögen AG initially held a 100 % interest via its subsidiary BBI Immobilien AG. In March 2010, the two members of the subsidiary s Managing Board acquired 400,000 new shares of BHB Brauholding AG as part of a cash capital increase. As part of a further capital increase with a public offer, a total of 1,600,000 no-par value shares of BHB Brauholding AG were placed at a price of 2.80 per share in July 2010 (gross proceeds from the issue: 4.48 million). BHB Brauholding AG was listed for the first time on July 8, 2010 in the m:access segment of Munich stock exchange. The interest held by the former parent company BBI Immobilien AG in BHB Brauholding AG fell to 35.5 % as a result of the two capital increases. As a result, the VIB Group no longer holds a majority interest, and now only carries its minority interest in BHB Brauholding AG at equity. The pro rata earnings due to the beverages segment to the start of July are carried as earnings from discontinued operations ( 366 thousand) in consolidated earnings. 5

6 Outlook The results from the first nine months of 2010 confirm the VIB Group s successful strategy. Acquisitions made in the past fiscal year have caused revenues to constantly increase. In addition, the Group s income also improved significantly as a result of its lean, cost-efficient organizational structure. As a result, in future, the company will stick to its tried-and-trusted business model of buying, building and managing its own properties and acquiring participating interests in companies with real estate holdings. In future, the Group will also selectively reinforce its portfolio in a cautious and yet target-oriented manner taking strict investment criteria into account. In so doing, Group will continue its buy-and-hold strategy, and continue to focus on the highgrowth Southern German market. Transparency has increased significantly as a result of the deconsolidation of the Beverages segment. The highly diversified portfolio of 85 properties with a total rental area of 645,000 m² will also form stable foundations in future for forecastable and attractive income. In view of the acquisitions made in 2009, which will contribute to the company s earnings for a full fiscal year for the first time this fiscal year, the Managing Board is forecasting a further increase in revenues and income in the Real Estate segment in 2010 as a whole. As a result, the Managing Board has confirmed the forecasts it has already published. Neuburg/Danube, November 18, 2010 The Managing Board Contact Investor Relations VIB Vermögen AG Petra Riechert Phone: +49 (0) Fax: +49 (0) petra.riechert@vib-ag.de cometis AG Ulrich Wiehle Phone: +49 (0) Fax: +49 (0) wiehle@cometis.de 6