VIB Vermögen AG, a company specialising in the development, acquisition and portfolio management of commercial properties, closed the 2020 fiscal year with a further increase in earnings according to interim calculations. By virtue of additional rental income, revenue climbed by 3.5 per cent from EUR 91.0 million to EUR 94.2 million.
The annual valuation of the property portfolio, which is carried out by an external surveyor, resulted in total positive changes in value for investment properties of EUR 22.3 million (previous year: EUR 22.3 million). Expenses for investment properties climbed to EUR 17.4 million (previous year: EUR 16.1 million). Personnel expenses at the Group rose from EUR 3.9 million to EUR 4.2 million. Other operating expenses remained stable at EUR 1.8 million (previous year: EUR 1.8 million).
Further increase in earnings
On account of the ongoing favourable financing conditions, expenses for the financing of the portfolio fell to EUR 14.1 million (previous year: EUR 15.0 million). When adjusted for valuation effects, earnings before tax (EBT) climbed by 3.1 per cent to EUR 57.7 million (previous year: EUR 56.0 million). Consolidated net income therefore increased accordingly by 2.8 per cent to EUR 67.3 million in 2020 (previous year: EUR 65.4 million). Given the 27.6 million shares, it also corresponds to earnings per share of EUR 2.39 (previous year: EUR 2.29).
Equity increased by EUR 47.9 million to EUR 625.2 million in the period to December 31, 2020 (31/12/2019: EUR 577.3 million). As of the 2020 balance sheet date, the equity ratio stood at 43.0 per cent (31/12/2019: 42.5 per cent).
Further growth in the value of the property portfolio
As of year end, the portfolio of the VIB Group comprised 113 properties, with a balance sheet value of EUR 1.4 billion. The net asset value (NAV) of the company climbed to EUR 666.3 million as of December 31, 2020 (31/12/2019: EUR 613.0 million). Given the number of outstanding shares, it increased by 8.7 per cent to EUR 24.16 per share (31/12/2019: EUR 22.23 per share). Funds from operations (FFO), as an indicator of the company's operating cash inflow, improved in the year under review, rising by 3.4 per cent from EUR 1.77 per share to EUR 1.83 per share.
Twelfth dividend increase in a row planned
On account of the strong results, the Managing and Supervisory Boards of VIB Vermögen AG intend to propose the twelfth dividend increase in a row to the Annual General Meeting. For the year under review, it is planned to pay out a dividend of EUR 0.75 per share, which is EUR 0.05, or 7.1 per cent higher than in the previous year (previous year: EUR 0.70 per share).
'We are delighted that we have generated such a positive result despite the challenging economic environment associated with the coronavirus pandemic and that we can once again propose a dividend increase at this year's Annual General Meeting,' explains Holger Pilgenröther, Chief Financial Officer of VIB Vermögen AG.
'In particular, the successful rental contract renewals for our major logistics properties indicate the effectiveness of our business model, which seeks to generate sustainably profitable results through in-house developments and in-house administration,' adds Martin Pfandzelter, Chief Executive Officer of VIB Vermögen AG. 'As our site pipeline is healthy and given that the current development projects are progressing according to plan, we also anticipate further increases in earnings this year.'
Continuation of the growth strategy through in-house developments
In conjunction with the ongoing construction projects in the current fiscal year, the major in-house developments completed in the previous year will lead to an increase in rentable area and therefore rising rental incomes.
It is expected that revenue of between EUR 99 million and EUR 105 million will be achieved in the 2021 fiscal year. When adjusted for valuation effects and extraordinary items, EBT is expected to reach a level between EUR 61 million and EUR 65 million. FFO (funds from operating activities) is expected to rise to between EUR 54 million and EUR 58 million in the 2021 fiscal year.
Potential adverse effects due to the spread of coronavirus have been included in the planning at the level of the prior-year effects. It is not currently possible to anticipate effects above and beyond this level, which is why such effects do not form part of the forecast.
The company will publish its final results for the 2020 fiscal year together with the 2020 Annual Report on April 28, 2021. A company presentation with details of the 2020 interim results can be found at www.vib-ag.de.