VIB Vermögen : Annual Report 2022

dynamic performance

Annual Report 2022 of VIB Vermögen AG

VIB VERMÖGEN AG | ANNUAL REPORT 2022

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Group KPIs

	01/01/-	01/01/-	Change	Change
in EUR thousand	31/12/2022	31/12/2021	absolute	in %
INCOME STATEMENT KPIS
Gross rental income	93,784	90,322	3,462	+3.8
Amortisation and depreciation on investment properties	-31,014	-29,005	-2,009	+6.9
Earnings from ordinary business activities (EBT)	61,851	37,210	24,641	+66.2
Adjusted earnings from ordinary business activities (EBT)	70,753	66,215	4,538	+6.9
Consolidated net income	54,704	31,039	23,665	+76.2
Earnings per share1 (in EUR), undiluted/diluted	1.90	1.08	0.82	+75.9
BALANCE SHEET KPIS	31/12/2022	31/12/2021
Total assets	1,586,409	1,417,690	168,719	+11.9
Investment properties	1,145,908	1,300,628	-154,720	-11.9
Equity	744,754	599,604	145,150	+24.2
Equity ratio (in %)	46.9	42.3		+4.6 points
Net debt	667,867	679,573	-11,706	-1.7
LTV (loan-to-value ratio, in %)	28.9	44.5		-15.6 points
OTHER KEY FINANCIALS	01/01/-	01/01/-
31/12/2022	31/12/2021
FFO excluding valuation effects and extraordinary items	62,662	58,601	4,061	+6.9
FFO per share1 (in EUR)	2.22	2.12	0.10	+4.7
	31/12/2022	31/12/2021
Share price (Xetra closing price, in EUR)	20.30	45.45	-25.15	-55.3
Number of shares2 (balance sheet date)	33,054,587	27,710,009	5,344,578	+19.3
Market capitalisation (balance sheet date)	671,008	1,259,420	-588,412	-46.7
ICR (interest coverage ratio: interest expense/net basic rents, in %)	13.2	14.7		-1.5 points
Average borrowing rate (in %)	1.77	1.70		+0.07 points
REAL ESTATE KPIS	31/12/2022	31/12/2021
Annualised net basic rents	99,597	91,958	7,639	+8.3
Vacancy rate (in %)	1.4	1.2		+0.2 points
Rentable space (in sqm)	1,365,381	1,287,818	77,563	+6.0
EPRA PERFORMANCE INDICATORS	01/01/-	01/01/-
31/12/2022	31/12/2021
EPRA-earnings	57,257	54,752	2,505	+4.6
EPRA-earnings per share (in EUR)	2.03	1.98	0.05	+2.5
EPRA NRV	1,737,064	887,090	849,974	+95.8
EPRA NRV per share (in EUR)	52.55	32.01	20.54	+64.2
EPRA NDV	1,530,026	705,188	824,838	+117.0
EPRA NDV per share (in EUR)	46.29	25.45	20.84	+ 81.9
EPRA NTA	1,471,098	746,278	724,820	+97.1
EPRA NTA per share (in EUR)	44.51	26.93	17.58	+65.3
EPRA vacancy rate (in %)	1.4	1.2		+0.2 points

Prior-year figures recalculated

1. Average number of shares during the financial year
2. Shares in issues as of the balance sheet date

VIB VERMÖGEN AG | ANNUAL REPORT 2022

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VIBVermögen AG

Profitable logistics and light industrial properties are our area of expertise

For almost 30 years, we have been developing, acquiring and managing modern and sustainably profitable commercial properties for our portfolio. Our focus in this area is on properties in the asset class of logistics and light industrial. As of the end of the 2022 fiscal year, our portfolio comprised 114 properties with a total rentable area of approximately 1.37 million sqm. The balance sheet 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 and redensification projects, we are able to respond flexibly to market developments. We not only selectively acquire and sell existing properties, but also focus on the in-house development

of prime real estate. As of year-end 2022, we have integrated the new business area - property management for institutional investors - into our business model and already boast a substantial initial volume of approx. EUR 1.1 billion of assets under management. With this Annual Report, we hope to provide you with an overview of our performance, current developments and future strategic direction.

Contents

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To our Shareholders­

• Letter to the shareholders
  9 Supervisory Board report
  13 Property portfolio of the VIB Group in 2022
  16 Share and investor relations
  20 EPRA performance indicators

28

Consolidated Management Report

1. Basis of the Group

1. Business Report

1. Report on Risks and Opportunities

1. Outlook

53

Consolidated Financial Statements

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

58 Consolidated cash flow statement (IFRS)

1. Consolidated statement of changes in equity (IFRS)
2. Notes to the consolidated financial statements for the 2022 financial year

118 Audit opinion of the independent auditor

122

Further Information­

1. Financial calendar
2. IR-Contact

124 Imprint

VIB VERMÖGEN AG | ANNUAL REPORT 2022

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TO OURSHAREHOLDERS

5	13	20
Letter to the shareholders	Property portfolio of the	EPRA performance indicators
	VIB Group in 2022
9	16

Supervisory Board report

Share and investor relations

TO OUR SHAREHOLDERS

Letter to the shareholders Supervisory Board report Property portfolio 2022 Share and investor relations EPRA performance indicators

VIB VERMÖGEN AG | ANNUAL REPORT 2022

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Letter to the shareholders

Dear Shareholders,

Dear Sir or Madam,

VIB Vermögen AG can look back on an extremely successful fiscal year 2022. Despite the challenging economic environment - with rising inflation, a tighter interest rate policy pursued by central banks and the ongoing war in Ukraine - we surpassed the strong performance of the previous year in terms of both revenue and earnings. Alongside this record result, we have further strengthened the partnership between VIB Vermögen AG and the DIC Asset Group and pooled the various competencies and resources within a single property platform that boasts a leading position on the German commercial property market with a focus on office and logistics space.

Gross rental income rose by 3.8% year on year to EUR 93.8 million. This growth was driven both by higher rental income from our existing properties and by the new additions to our property portfolio from the previous year. As of the end of the 2022 fiscal year, our portfolio comprised 114 commercial properties with a balance sheet value of approx. EUR 1.4 billion. FFO (funds from operations), which is an indicator of cash inflow from operating activities, improved by 6.9% to EUR 62.7 million.

Another positive factor is the extremely low vacancy rate, which represents continued proof of the quality of our properties. In an overall environment shaped by uncertainty, we managed to keep the vacancy rate at an excellent level of 1.4%, compared with 1.2% in the previous year.

Adjusted for extraordinary items, total earnings from ordinary business activities climbed by 17.2% to EUR 44.7 million. Consolidated net income rose significantly by 76.2% to EUR 54.7 million. The company's ­performance in the 2022 fiscal year offers impressive proof that our strategic direction, with a clear investment focus on the logistics and light industrial segment, represents the foundation for long-term, sustainable and profitable growth, even in challenging economic times.

Environmental and social responsibility are core components of our successful business model. For many years, we have been pursuing the objective of achieving our economic targets while operating in a sustainable way. EPRA, the association representing listed property companies in Europe, presented us with two Gold Awards in 2022 in recognition of the exemplary transparency and quality of our financial and sustainability reporting.

Our "NEXT HORIZON" project is a prime example of our ESG approach. The marketing for our largest development project of recent years got under way in Erding in February 2022.

On a plot boasting 111,000 sqm of net ­project development area, we are constructing several buildings with a total rental area of approx. 79,000 sqm for various uses. The buildings are being constructed in accordance with the stringent criteria required to achieve DGNB Gold sustainability certification. It is intended that the entire site will be heated using district heating. As such, we are avoiding the use of fossil fuels and highlighting our sustainability commitment. The demand for individual units within the "NEXT HORIZON" project is high and we are conducting rental negotiations with big-name tenants.