VIB Vermögen AG
VIB Vermögen AG looks back on a strong first half of 2024 – numerous transactions in the year to date

VIB Vermögen AG looks back on a strong first half of 2024 – numerous transactions in the year to date

• Funds from operations increase by 7% to EUR 40 million
• Gross rental income down on previous year at EUR 41.1 million due to asset sales, as expected
• Vacancy rate of 2.7 % as proof of high real estate quality
• Numerous transaction activities consistently drive forward diversification strategy
• Raised forecast for 2024 confirmed: Gross rental income of EUR 85-89 million and funds from operations of EUR 74-78 million expected

Neuburg/Danube, 27 August 2024: VIB Vermögen AG (“VIB“), a company specializing in the development, acquisition and management of commercial real estate, had a successful first half of 2024 despite a persistently difficult market environment. The company has consistently pursued its diversification strategy and realized numerous transactions in the year to date to secure future profitable growth. In particular, the office asset class was strengthened as a second and diversifying source of income.

Key figures on track to achieve annual targets

Funds from operations (FFO) before taxes and minority interests increased by 7% year-on-year to EUR 40 million in the first half of the year (previous year: EUR 37.3 million), which corresponds to FFO per share of EUR 1.21 (previous year: EUR 1.13). Consolidated net income reached a value of EUR 22.6 million (previous year: EUR 63.4 million). The previous year’s figure included a gain of EUR 51.0 million from the sale of investment properties as a special effect.

As expected, gross rental income reduced to EUR 41.1 million (previous year: EUR 46.4 million) due to the real estate transactions carried out in 2023. However, this decline has already been partially offset by the acquisitions made to date. These will have an increasingly positive impact in the second half of the year.

High quality of the real estate portfolio with persistently low vacancy rate

At the end of the first half of the year, the real estate portfolio within VIB Group comprised 156 properties with a total usable space of 2.25 million m². Of these, 82 properties are part of VIB’s own portfolio. The remaining properties belong to the Institutional Business segment, which was newly established in 2022.

The vacancy rate was 2.7% as of 30 June 2024 and thus remained at a very low level compared to the industry as a whole (31 December 2023: 2.1%). In view of the challenging economic conditions, this figure confirms the high quality of the real estate portfolio and VIB’s proven strategy of managing it with its own employees.

The acquisitions made in the office asset class are also reflected in a more diversified portfolio structure. In terms of net basic rents, properties in the logistics & light Industrial asset class account for 78% of the proprietary portfolio and office properties for 18%. The remainder is divided between retail properties (3%) and commercial buildings or other properties (1%). The portfolio in the Institutional Business segment consists of 77% logistics & light industrial properties and 23% retail properties.

Despite the real estate transactions carried out, VIB continues to have a very solid financing structure. At 37.0% at the end of June 2024, the key debt ratio LTV (loan-to-value ratio) remains well below the level of previous years.

Forecast for financial year 2024 recently adjusted upwards – Numerous transactions have shaped the year to date

VIB carried out a large number of real estate transactions over the course of the year. In addition to property sales at attractive conditions, properties were also acquired that are mainly attributable to the office asset class. To date, the acquisitions have secured annualized rental income of around EUR 37 million.

Dirk Oehme, Speaker of the Board of VIB, comments: “We can look back on a successful and dynamic first half of the year. We have consistently driven forward the diversification of our portfolio by acquiring valuable commercial properties, primarily in the office asset class. We were also able to realize increases in value through successful sales. We have thus asserted ourselves as a recognized and successful market player in a challenging environment and further expanded our leading position as an expert in logistics and office properties.”

In the half-year report presented, the Management Board confirms the forecast for the year as a whole, which was adjusted upwards on August 7, 2024 due to the real estate transactions. It expects gross rental income of EUR 85-89 million (previously: EUR 72-78 million), FFO of EUR 74-78 million (previously: EUR 62-68 million) and a vacancy rate still in the low single-digit percentage range.

The half-year report 2024 is available for download at https://vib-ag.de/

Contact us

VIB Vermögen AG

Investor Relations:

Tilly Park 1

86633 Neuburg/Danube

Phone: + 49 (0)8431 9077-961

Fax: + 49 (0)8431 9077-1961

E-mail: anja.landes-schell@vib-ag.de

About VIB Vermögen AG

VIB Vermögen AG is a medium-sized company specializing in the development, acquisition and management of modern and sustainably profitable commercial real estate, which has been operating successfully on the market for more than 30 years. The focus is on real estate in the logistics, light industrial and office asset classes. VIB shares have been listed on the Munich (m:access) and Frankfurt (Open Market) stock exchanges since 2005.

In addition to direct acquisitions, VIB’s broad-based business model also includes the complete spectrum of in-house developments and redensification as part of a 360-degree approach: On the one hand, VIB Vermögen AG acquires properties that are already let, and on the other hand it develops new properties from scratch in order to incorporate them into its own portfolio on a permanent basis and generate rental income from them. At the same time, sales are part of the overall strategy. In addition, VIB offers comprehensive real estate management services and solutions for institutional investors and holds interests in companies with real estate assets.

More information at www.vib-ag.de