VIB Vermoegen AG

Earnings Release • Aug 29, 2008

News Details

Corporate | 29 August 2008 08:11

Strong first six months for VIB Vermögen AG

VIB Vermögen AG / Half Year Results

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• Revenues more than double to € 19.6 million
• EBIT up 146.8% to € 16.4 million
• Pre-tax margin of 36.9% underscores the company’s sustained profitability
• Net income grows by 105.7% to € 6.7 million
• NAV rises to € 11.33 per share

Neuburg (on the Danube), August 29th, 2008 – VIB Vermögen AG, a company
specializing in commercial property holdings, again significantly boosted
its revenues and earnings at group level during the first six months of
2008. During the first six months of the current year it recorded revenues
of € 19.6 million, an increase of 108% compared with the prior-year period.
At thesame time, operating income increased to € 22.7 million following €
9.5million the prior year. Earnings before interest and taxes (EBIT) were €
16.4 million, thus up significantly on the prior-year figure of € 6.7
million (+146.8%). Compared with last year's figure (€ 4.5 million), VIB
Vermögen AG doubled its pre-tax earnings (EBT) to € 8.4 million and thus
recorded a pre-tax margin of 36.9%. After deducting income tax, the company
recorded a net income of € 6.7 million (+105.7%) and earnings per share of
€ 0.34 (prior year: € 0.21). The big increase in revenues and earnings was
mainly due to the higher rental income following the expansion of the
company’s property portfolio.

VIB Vermögen AG’s expansion course is also reflected in the balance sheet.
Compared with December 31, 2007, total assets increased from € 515.8
million to a current figure of € 564.4 million. Real estate held as
financial investments grew particularly well during the reporting period
from € 457.3 million to € 493.4 million. At the same time, net asset value
(NAV) increased from € 11.17 per share as of the end of 2007 to a current
figure of € 11.33 per share. This increase is primarily attributable to
acquiring new commercial properties. Despite the investments made in its
real estate assets, the company has an equity ratio of 33.7% (June 30,
2008) and retains a very strong equity capital basis. VIB Vermögen AG’s
financial solidity is also emphasized by the Loan-to-value Ratio, which
describes a company’s level of debt based on the portfolio’s market value.
With a current rate of 60.49%, VIB Group shows a sustained financing
structure in comparison to the real estate industry.

Ludwig Schlosser, Director of VIB Vermögen AG, is very satisfied with
business performance: 'We have got off to a great start in fiscal 2008. The
high growth rates for revenues and earnings are the result of our
consistent and ambitious growth strategy.' In the first half of 2008 alone,
the company already acquired real estate to a value of € 48 million. Ludwig
Schlosser sees the key to the success of the VIB Group in the company’s
solid financing structure. 'We unite profitability and growth. This is
based on VIB Vermögen AG’s excellent resources. This secures us the finance
we need at exceptionally favorable terms.' The Managing Board remains
optimistic for the second half of 2008. 'We are planning to invest more
than € 100 million in the second half of the year, which will further
strengthen our earnings potential.'

VIB Vermögen AG is thus reconfirming the forecasts it made at the beginning
of 2008. The company anticipates an increase in operating income to at
least € 42.5 million and a growth in rental income to around € 36.0 million
for the current fiscal year. Earnings before interest and taxes (EBIT) are
expected to lift to € 33.0 million, with pre-tax earnings at around € 17.0
million.

As of today, the complete half-yearly report of VIB Vermögen AG is
available on the company’s website (www.vib-ag.de) under ‘Investor
Relations’.

Profile of the VIB Vermögen AG (including BBI):

The VIB Vermögen AG is a medium-sized real estate holding company that
focuses its investments on commercial real estate in South Germany. Founded
in 1993 as a business partnership, the VIB was converted into a public
company in the year 2000. Since then the company has developed its core
competency in the fields of acquisition and asset management of its own
real estate and of investment in companies with real estate assets. The VIB
Vermögen AG operates 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
centres and also commercial and service centres. The company achieves
sustainable rental yields from a total lettable area of approximately
518,000 m².

Contact

Investor relations:

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

29.08.2008 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

End of News DGAP News-Service

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