VIB Vermoegen AG

Earnings Release • Apr 2, 2009

News Details

Corporate | 2 April 2009 15:29

VIB Vermögen AG publishes preliminary figures for fiscal year 2008

VIB Vermögen AG / Preliminary Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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* Operating income from real estate up from EUR 26.7 million to EUR 42.5
million
- EBIT improves to EUR 23.7 million (previous year: EUR 20.1 million)
- Funds from operations of EUR 0.67 per share (previous year: EUR 0.60)
- Net asset value (NAV) of EUR 11.06 per share as of December 31, 2008
(previous year: EUR 11.17)
- Dividends of an unchanged EUR 0.20 per share

Neuburg/Danube, April 2, 2009 - VIB Vermögen AG, a company specializing in
managing commercial real estate, has recorded significant growth in its
operating business according to preliminary figures. In its core real
estate business, the company increased its operating income (IFRS) to EUR
42.5 million compared to EUR 26.7 in the previous year. This corresponds to
a 59.2% increase in real estate income.

In addition to the increase in its operating business, the first-time full
consolidation of BBI Bürgerliches Brauhaus Immobilien AG (BBI Immobilien
AG) contributed to the increase in operating income. At the same time, as
part of the consolidation, this company's wholly owned subsidiary Herrnbräu
GmbH & Co. KG, a long-standing brewery company located in Ingolstadt, was
included in VIB Vermögen AG's consolidated financial statements. As a
result, the VIB Group's operating income totaled around EUR 57.0 million.
At the same time a comparison with previous year's figures is only of
limited use due to the altered recording of the participation on the
balance sheet.

VIB Vermögen AG also recorded a further improvement in EBIT. If earnings
are adjusted for the Beverages segment, the core business of property
management recorded EBIT of EUR 28.1 million (previous year: EUR 20.1
million). This corresponds to growth of 39.8% in the real estate segment.
Including the figures from the Beverages segment, EBIT increased by 17.9%
at a group level to EUR 23.7 million. This includes extraordinary
depreciation of Herrnbräu GmbH & Co. KG's assets of around EUR 5 million.
These were due to the current difficult market for the beverages industry.

VIB Vermögen AG recorded write-downs of EUR 7.1 million on its real estate
portfolio. At the same time, the company recorded development results of
EUR 6.6 million from its own property development activities. This resulted
in a valuation loss of around EUR -0.5 million in the real estate segment.
The total valuation loss at a group level totaled EUR -6.5 million.

Total personnel expenses in the real estate sector totaled EUR 1.58
million, or 3.71% of operating income in this sector.

EBT after valuations in the real estate sector totaled EUR 11.2 million.
Despite the negative one-off factors in the valuation result, VIB Vermögen
AG thus recorded earnings for group shareholders of EUR 5.4 million
(previous year: EUR 12.4 million) after the deduction of the financial
result and income taxes. This corresponds to earnings per share of EUR 0.31
(previous year: EUR 0.73).

The Managing Board members Ludwig Schlosser and Peter Schropp were pleased
with fiscal year 2008: '2008 was a great success in our operating
activates. VIB Vermögen continues to have high income, as underscored by
our funds from operations (FFO) after effective income taxes of EUR 0.67
per share (previous year: EUR 0.60). That is why we want to allow our
shareholders to once again participate in our success and we are proposing
an unchanged dividend of EUR 0.20 per share to our General Meeting.

In view of the company's further growth, the Managing Board is confident -
despite the current economic slowdown: 'We increased our real estate
portfolio a lot last year, thus significantly growing our rental income.
Our investment properties totaled EUR 561.3 million on December 31, 2008.
We will be able increase our rental income in 2009 substantially thanks to
our investments.' In addition, the Managing Board also noted the
portfolio's stable tenant structure. This is coupled with an excellent
structure and weighting of the various types of use and various industries.
As a result, VIB Vermögen AG currently has a broadly diversified portfolio
in terms of risks, with a total rental area of 618,000 m². 'Our portfolio
has very low vacancy rates of less than 1% - and at the same time the
rental agreements have an average remaining term of 8.3 years.'

In financing its real estate portfolio, VIB Vermögen AG as primarily agreed
long-term annuity loans, which means that loan extensions or refinancing is
only required to a minor extent. 'In contrast to many other companies, our
credit agreements do not include covenant agreements - which means we do
not have any financing risks given the current market environment,'
commented Ludwig Schlosser. The fixed interest rate periods are also
long-term. Just about one quarter of the loans have a remaining fixed
interest period of less than one year. Two thirds of the liabilities have
fixed interest periods of five to ten years. This means that changes in the
interest rate would only have a marginal impact on the company's financial
result. The average interest rate for all of the loans is currently 4.8%.
In addition, the loan to value ratio of 65.6% clearly shows VIB Vermögen
AG's healthy financing structure.

The Managing Board believes that this financial solidity is a key
competitive advantage given the current environment: 'Our solid financing
is our tower of strength. In the current fiscal year, interest expenses of
around EUR 20 million are offset by anticipated rental income of EUR 43
million - this ratio clearly shows VIB Vermögen AG's earnings strength and
stability.'

The company will present its final figures for the year in its 2008 annual
report. This report can be downloaded from the company's Web site,
www.vib-ag.de from April 29, 2009.

Profile of VIB Vermögen AG (incl. BBI Immobilien AG)

VIB Vermögen AG is a medium-sized real estate holding company, whose
investments focus on commercial properties in Southern Germany. Founded as
a business partnership in 1993, VIB was converted into an
Aktiengesellschaft (German public limited company) in 2000. Since then, the
company has developed its core competences in the field of acquisition and
management of its own properties and of investment in companies with real
estate assets. The VIB Group pursues a 'buy and hold' strategy. This
entails developing real estate for its own portfolio and also acquiring
existing properties.

The real estate portfolio of the VIB Group comprises various logistics
properties and industrial facilities, shopping and specialist retail
centers as well as commercial and service centers. The VIB Group achieves
sustainable rental returns from a total lettable area of approximately
618,000 m².

Contact

Investor relations:

VIB Vermögen AG
Petra Riechert
Luitpoldstr. C70
86633 Neuburg/Donau
Phone: + 49 (0)8431 504-952
Fax: + 49 (0)8431 504-973
E-Mail: petra.riechert@vib-ag.de

cometis AG
Dirk Stauer
Unter den Eichen 7
65195 Wiesbaden
Phone: +49 (0)611 205855-22
Fax: +49 (0)611 205855-66
E-Mail: dirk.stauer@vib-ag.de

02.04.2009 Financial News transmitted by DGAP

Language: English
Issuer: VIB Vermögen AG
Luitpoldstraße C 70
86633 Neuburg/Donau
Deutschland
Phone: +49 (0)8431 / 504-952
Fax: +49 (0)8431 / 504-973
E-mail: petra.riechert@vib-ag.de
Internet: www.vib-ag.de
ISIN: DE0002457512
WKN: 245751

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