VIB Vermögen : Annual Report 2020 with Group management report, - financial statements and Supervisory Board Report

Annual Report 2020

taking

sustainability­ to new dimensions

KEY GROUP INDICATORS

			Absolute
IN EUR THOUSAND	2020	2019	change	Change in %

Income statement

Revenue	94,207	90,995	3,212	+3.5
Changes in value for investment properties	22,323	22,319	4	0
EBT (earnings before tax)	80,041	78,287	1,754	+2.2
EBT excluding valuation effects and extraordinary items	57,718	55,968	1,750	+3.1
Consolidated net income	67,269	65,411	1,858	+2.8
Earnings per share¹ (in EUR), undiluted/diluted	2.39	2.29	0.10	+4.4
Balance sheet
Total assets	1,454,156	1,359,731	94,425	+6.9
Investment properties	1,368,001	1,296,352	71,649	+5.5
Equity	625,178	577,295	47,883	+8.3
Equity ratio (in %)	43.0	42.5		+0.5 pt.
Net debt	708,584	671,864	36,720	+5.5
LTV (loan-to-value ratio, in %)	50.3	51.0		-0.7 pt.
NAV (net asset value), undiluted/diluted	666,322	612,974	53,348	+8.7
NAV per share² (in EUR), undiluted/diluted	24.16	22.23	1.93	+8.7
Other key financials
FFO (Funds from Operations)	50,354	48,929	1,425	+2.9
FFO per share¹ (in EUR)	1.83	1.77	0.06	+3.4
Share price (Xetra closing price, in EUR)	28.65	29.80	-1.15	-3.9
Number of shares² (reporting date: 31/12)	27,579,779	27,579,779	0	0
Market capitalisation (reporting date: 31/12)	790,161	821,877	-31,717	-3.9
ICR (interest coverage ratio: interest expense/
net basic rents, in %)	17.5	19.1		-1.6 pt.
Average borrowing rate (in %)	1.77	2.10		-0.33 pt.
Real estate KPIs
Annualised net basic rents	89,597	81,321	8,276	+10.2
Vacancy rate (in %)	2.5	1.0		+1.5 pt.
Rentable space (in sqm)	1,285,995	1,162,586	123,409	+10.6
EPRA performance indicators
EPRA earnings	46,588	44,762	1,826	+4.1
EPRA earnings per share (in EUR)	1.69	1.62	0.07	+4.3
EPRA NRV	727,901	668,699	59,202	+8.9
EPRA NRV per share (in EUR)	26.39	24.25	2.14	+8.8
EPRA vacancy rate (in %)	2.5	1.0		+1.5 pt.

1. Average number of shares in the financial year
2. Number of shares in circulation on the reporting date

VIB VERMÖGEN AG

PROFITABLE COMMERCIAL PROPERTIES ARE OUR BUSINESS

For more than 25 years, we have been developing and acquiring modern and sustainably

profitable­ commercial properties for our portfolio. Our focus in this area is on the logistics/ light industry sector and is rounded off by properties in the area of retail, especially with tenants from the local supplies sector, organic retailers, chemists and garden centres/home improvement stores. As of the end of the 2020 fiscal year, our portfolio comprised 113 ­properties with a total rentable area of approximately 1.3 million sqm. The market value of these properties stands at approximately EUR 1.4 billion.

Thanks to our broad-based business model, which comprises direct acquisitions alongside the entire spectrum of in-house development projects as well as redensification, we are able to respond flexibly to market developments. Due to the high prices at the present time, we currently only acquire existing properties on a selective basis, instead focusing on the development of our own value-retaining properties. With this Annual Report, we wish to take the opportunity to give you an overview of our ongoing developments and explain in more detail the sustainability aspect in terms of our real estate projects.

CONTENTS

2 - 33

TO OUR SHAREHOLDERS

1. Letter to the shareholders

1. Supervisory Board report

1. Interview with the Managing Board

1. Taking Sustainability to new Dimensions

1. Our business model

1. The property portfolio in 2020

1. Share and investor relations

1. EPRA performance indicators

43 - 63	136
CONSOLIDATED MANAGEMENT	FURTHER INFORMATION
REPORT	136	Financial calendar
44	Basis of the Group	136	IR-Contact
47	Business report	136	Imprint

1. Report on risks and opportunities

1. Outlook

65 - 135

34 - 42

RESPONSIBILITY

34 Corporate Governance

40 Sustainability at VIB Vermögen AG

CONSOLIDATED FINANCIAL STATEMENTS

1. Consolidated income statement (IFRS)
2. Consolidated statement of comprehensive income (IFRS)
3. Consolidated balance sheet (IFRS)

1. Consolidated cash flow statment (IFRS)

1. Consolidated statement of
   changes­ in equity (IFRS)

1. Notes

132 Audit opinion

LETTER TO THE SHAREHOLDERS

DEAR SHAREHOLDERS, DEAR SIR OR MADAM,

Our company, VIB Vermögen AG, once again had a strong year, especially in light of the challenging circumstances associated with the coronavirus pandemic, which we dealt with effectively on account of our extremely stable business model. As a result, we achieved all of the targets we set ourselves for the 2020 fiscal year and posted increases in all significant indicators. With revenue of approx. EUR 94.2 million, we exceeded the previous year's figure of just under EUR 91.0 million by EUR 3.2 million. The largest share of this growth was attributable to the four properties newly added to the portfolio. As of the end of the 2020 reporting period, the market value of our commercial properties stood at some EUR 1.4 billion. The net asset value of our company rose once again, not least due to our solid financing structure and an equity ratio of 43%. Compared to the previous year's balance sheet date, the net asset value (NAV) climbed by more than EUR 53 million to EUR 666.3 million, thus reaching a record high. Despite the difficulties of a crisis-dominated year, we ultimately achieved consolidated net income of EUR 67.3 million, which equates to a year-on-year increase of 2.8%.

Our long-term strategic direction is based on profitable and sustainable company growth. In times like these, it is particularly important to have a crisis-proof business model. The figures for the year under review prove that this is exactly what we have. The logistics/light industry sector, which is the main focus of our operations, is a stable segment and therefore a guarantee of sustainability.

Sustainability has not only been a key issue in terms of societal debate in recent years, but also plays a central role in this year's Annual Report - as you will soon realise over the following pages. Ever since the company was established, our mission has been to meet our economic goals whilst always living up to our environmental and social responsibility - and also to ensure strong corporate governance. In the interview that follows this letter, you can find out what we are doing to fulfil this mission and how successful we are in our efforts.

Dear shareholders, our business model involves the acquisition of existing properties, the completion of in-house developments and the redensification of portfolio sites. In the year under review, we conducted several transactions at attractive terms in each of these three areas. One such transaction relates to a property that sets new standards within our portfolio in more ways than one. Measuring 115,000 sqm, it is not only our largest development project to date, but is also our first-evertwo-storey logistics property, thus redefining notions of sustainability and effective use of space. The property concerned, which was added to our portfolio as planned in November 2020, is located at Interpark Kösching near Ingolstadt. Following the completion of modernisation work, we also let an existing property in Göppingen, Baden-Württemberg, to anchor tenant Dehner for a 20-year period. Further- more, we also completed a new distribution centre for Amazon in Gersthofen. On account of these and other transactions, we significantly increased the total area of our portfolio during the reporting period. At the end of March 2021, we handed over the two DGNB Gold-certified buildings in Eslarn and at Interpark Kösching to the respective tenants; construction work had begun in the previous year. These projects and the redensification of a site at Businesspark Regensburg with an office complex, which is progressing according to plan, will contribute to a further increase in the rentable space of our portfolio this year. Despite rising property prices and a dwindling supply of suitable and available land, we believe that we are well positioned for the future. Thanks to our flexible business model, we are able to purchase existing properties, complete in-house development projects and optimise and re-densify within our portfolio.

2	VIB VERMÖGEN | ANNUAL REPORT 2020

TO OUR SHAREHOLDERS

LETTER TO THE SHAREHOLDERS

"THE COMPLETION AND HANDOVER OF THE ­DOUBLE-DECKER IS ANOTHER MILESTONE FOR OUR COMPANY, ESPECIALLY IN TERMS OF SIZE, COMPLEXITY AND SUSTAINABILITY."

MARTIN PFANDZELTER, CEO

VIB VERMÖGEN | ANNUAL REPORT 2020

3