VALUES BUILT ON FORESIGHT · Average daily trading volume in 2019: approx. 34,800 shares Market...

VALUES BUILT

ON FORESIGHT

Company Presentation

1st Half Year 2020

August 7, 2020

Company | Real Estate Portfolio | Financials | Share | Annex

Sustainable financing strategy In-house portfolio managementDevelop-or-Buy-and-Hold strategy

► Long-term holding strategy

► Focus on economically strong

South of Germany

► Portfolio growth through

developments and acquisitions

► Sector focus on logistic/light industry

and retail

► Debt

► Annuity loans

► Bonded loans

► Equity

► Straight capital increase

► Mandatory convertible

bonds

► Close contact with our tenants

► Fast communication and prompt

reaction to changes

► Low vacancy rate

► High cost efficiency

Strong FFO

(2019: 1.77 EUR/share)

Continuous increase of the NAV

(December, 31 2019: 22.23 EUR/share)

Sustainable dividend policy

(for 2019: 0.70 EUR/share)

Company profile - strategy


Flexibility in real estate procurement

VALUES BUILT

ON FORESIGHT

Market environment


451 458478

493513 525

544

2013 2014 2015 2016 2017 2018 2019

230 235253 258

267 274 279

2013 2014 2015 2016 2017 2018 2019

Market Environment: Logistics and retail in Germany

► Strong sectors with constant growth rates

Sales trend logistics (EUR bn)

Source: Federal Statistical Office

Sales trend retail (EUR bn)

BIP EUR 3.440 bn

Logistics

EUR 279 bn

Retail

EUR 544 bn

Gross Domestic Product (GDP) 2019 (EUR bn)

CAGR: 3.3 %

CAGR: 3.2 %

VALUES BUILT

ON FORESIGHT

Real Estate Portfolio

Company | Real Estate Portfolio | Financials | Share | Appendix

Future map Germany Locations VIB Group

Source: Prognos AG

Number of Properties 112


Acquisition in 2019:

Seubtendorf/Tanna (19,500 sqm rental area)

Completion in 2019

Interpark Ingolstadt (27,500 sqm rental area)

Schwarzenbruck ( 9,700 sqm rental area)

Densification

Regensburg (3,700 sqm rental area)

Completion in 2020:

Ehningen ( 9,100 sqm rental area)

Göppingen (10,170 sqm rental area)

Gersthofen ( 7,500 sqm rental area)

Interpark Ingolstadt (87,000 sqm rental area)

Pipeline

is currently at ~ 130,000 m² rentable area for future

developments at various locations and ~40,000 m²

in the Joint Venture

Portfolio activities and pipeline for new developments


Schwarzenbruck I

2 tenants, fully let

31,000 sqm

Vaihingen/Enz

1 tenant, fully let

11,800 sqm

Interpark Ingolstadt

2 tenants, fully let

13,700 sqm

2018:

2019:

Capex:

EUR 41.3 million

Net rent p.a.

EUR 3.4 million

Capex:

EUR 41.0 million

Net rent p.a.:

EUR 3.2 million

Completion of own developments in 2018/2019 (Extract)

Regensburg

(Redensification)

4 tenant, fully let

3,700 sqm

Schwarzenbruck II

1 tenant, fully let

9,700 sqm

Interpark Ingolstadt

1 tenant, fully let

27,500 sqm

Site

Tenant

Rentable area

Site

Tenant

Rentable area


Sector split based on the annualized

net rental income

Real Estate KPI‘s

► Efficient portfolio management results in a low vacancy rate

1,183 Tm²

1,043 Tm²

1,163 Tm²

1,061 Tm²

(as of 30.06.2020)

EUR

million

81.5

1,123 Tm²

12.2016 12.2017 12.2018 12.2019 06.2020

Development of annualized net rental income, vacany rate

and rental area

66.6%12.1%

8.1%

7.3%

3.4% 2.5%


► Focus on logistics and retail leading to attractive rental yield of the portfolio

Real Estate KPI‘s

31.12.2019

Logistics / Light Industry 7.1 %

Local services/DIY superstore 6.7 %

Office 7.2 %

Commercial buildings & others 5.3 %

30.06.2020

Up to 1 year 4.7%

1 to 3 years 31.5%

3 to 5 years 16.0%

5 to 7 years 15.0%

7 to 10 years 18.5%

More than 10 years 14.3%

Net rental income by residual term of

rental contracts

Average term: 5 years, 7 month

Rental yield by sector(based on market values as of 31.12.2019)

Average rental yield: 6.92 %


Real Estate KPIs – Share of total net rental income TOP 10 tenants

Tenant Segment Share Locations

Gartenfachmarkt Dehner DIY Garden market 9.1 % 16

Geis Industrie-Service GmbH Logistics/Light Industry 6.8 % 3

Audi AG Logistics/Light Industry 6.5 % 2

Rudolph Gruppe Logistics/Light Industry 4.7 % 8

Imperial Automotive Logistics GmbH Logistics/Light Industry 3.3 % 1

Loxxess-Group Logistics/Light Industry 3.2 % 2

Continental Automotive GmbH Logistics/Light Industry 3.2 % 2

BayWa Bau- und Gartenmärkte DIY Garden market 3.0 % 3

Conti Temic microelectronic GmbH Logistics/Light Industry 3.0 % 1

Schwarz-Group Food 2.7 % 4

► Diversified tenant structure reduces sector and cluster risks

As of 30.06.2020

45 %

of total net rental

income with

42 locations

VALUES BUILT

ON FORESIGHT

Financials


► Increase in revenue by 21 % to EUR 91.0 million ► Increase of FFO by 50 % to EUR 48.9 million

► Increase in EBT by 48 % to EUR 78.3 million ► Increase in NAV by 48 % to EUR 613.0 million

5-years development - key figures

Revenues (in EUR million) FFO (in EUR million)

EBT (in EUR million) NAV (in EUR million)


► Continous positive trend of all KPIs

2015 – 2019:

► FFO per share increased by 50 %

► NAV per share increased by 42 %

► Dividende per share increased by 37 %

5-years development - key figures per share

FFO per share

NAV per share

Dividend per share


Consolidated Income Statement (IFRS)

In kEURHY/2020 HY/2019 ∆ 2019

Revenues 46,408 45,084 2.9% 90,995

Other operating income 984 267 268.5% 1,645

Total operating income 47,392 45,351 4.5% 92,640

Change in value of investment

properties 5,897 2,276 159.1% 22,319

Expenses for investment

properties -8,063 -7,251 11.2% -16,057

Personnel expenses -2,084 -1,942 7.3% -3,861

Other operating expenses -916 -802 14.2% -1,775

Depreciation and amortization -155 -153 1.3% -313

EBIT 42,071 37,479 12.3% 92,953

Other financial results -219 47 - 302

Interest expenses (net) -7,259 -7,573 -4.1% -14,968

EBT 34,593 29,953 15.5% 78,287

Taxes -5,543 -4,905 13.0% -12,876

Consolidated net income 29,050 25,048 16.0% 65,41101.0

1.

Adjusted EBT

increased by 3.7% from

27,677 kEUR

to 28,696 kEUR

Revenue increased by

2.9% due to new

investments and

indexation

FFO

increased by 4.1% from

24,081 kEUR

to 25,063 kEUR


Consolidated Balance sheet as of June 30, 2020

► Equity ratio: 43.3%

(31.12.2019: 42.5%)

► Loan-to-Value ratio: 50.6%

(31.12.2019: 51.0 %)

1,362

40

606

761

35

Assets Equity and

liabilitiesIn EUR million

Non-current assets

Equity

Non-current liabilities

Current assets Current liabilities

1,402 1,402

► Solid balance sheet with investment property of around 1.3 billion EUR


EPRA – Best Practice Reporting

HY/2020 HY/2019 D

EPRA-EarningsEUR

million23.1 22.2 3.9%

EPRA-Earnings per share EUR 0.84 0.81 3.7%

30.06.2020 31.12.2019

EPRA-NAVEUR

million644 613 5.0%

EPRA-NAV per share EUR 23.34 22.23 5.0%

EPRA-vacancy-rate In % 2.7 1.0 1.7 pt.

► VIB again awarded with „Gold Award“ for the Annual Report 2018


► Loan amount of EUR 723 million as of June 30, 2020.

► Average interest rate of 2.04 % as of June 30, 2020 (31.12.2019: 2.10%)

► Trend of declining average interest rates will continue due to the current low interest rate level

Loans split by expiration of the fixed-interest period

As of June 30, 2020


Guidance 2020 Actual 2019

Revenues EUR 91.0 – 97.0 million EUR 91.0 million

EBT (Earnings before taxes)EUR 55.0 – 59.0 million EUR 56.0 million

FFO EUR 48.0 – 52.0 million EUR 48.9 million

► Continuation of the sustainable and profitable growth path

Guidance for financial year 2020

w/o valuation effects and

non-recurring items

VALUES BUILT

ON FORESIGHT

Share


VIB Registered Share

Share price since January 1, 2020 (XETRA)

► WKN: A2YPDD ISIN: DE000A2YPDD0

► Current number of registered shares outstanding (as of December 31, 2019): 27,579,779

► Average daily trading volume in first half year 2020: approx. 52,000 shares

► Market capitalization as of July 31, 2020: EUR 763 million (Xetra closing price: EUR 27,65)

Shareholder structure (as of December 31, 2019)

16

18

20

22

24

26

28

30

32

Jan. 20 Feb. 20 Mrz. 20 Apr. 20 Mai. 20 Jun. 20 Jul. 20


40

60

80

100

120

140

160

180

Dez. 18 Feb. 19 Apr. 19 Jun. 19 Aug. 19 Okt. 19 Dez. 19 Feb. 20 Apr. 20 Jun. 20

%DAX SDAX EPRA Germany VIB

Comparison VIB / DAX / SDAX / EPRA-Germany

► The corona crisis affects all sectors in 2020

(as of July 31, 2020)

VALUES BUILT

ON FORESIGHT

If you have any questions

please do not hesitate

to contact us


Dividend / FFO

► Continuous dividend growth

► Dividend per share increased by 7.7%

in 2019

► Arround 40% of FFO payed out as

dividend for fiscal year 2019

► Eleventh dividend increase in a row

Pay-out ratio dividend/FFO (operating cash flow)

In EUR


25 years VIB – 11 years in a row dividend increase

► Dividend per share increased by 250 % since 2008


Consolidated balance sheet as of June 30, 2020 (assets)

In kEUR30.06.2020 31.12.2019 Change

Non-current assets

Intangible assets 8 2 300%

Property, plant and equipment 10,119 10,031 0.9%

Investment properties 1,338,251 1,296,352 3.2%

Interests in associated companies 13,975 11,941 17.0%

Total non-current assets 1,362,353 1,318,326 3.3%

Current assets

Receivables and other assets 4,754 3,555 33.7%

Bank balances and cash in hand 33,503 36,738 -8.8%

Prepaid expenses 1,329 1,112 19.5%

Total current assets 39,586 41,405 -4.4%

Total assets 1,401,939 1,359,731 3.1%


Consolidated balance sheet as of June 30, 2020 (equity & liabilities)

In kEUR 30.06.2020 31.12.2019 Change

Equity

Subscribed capital 27,580 27,580 -

Reserves and net retained profits 553,394 525,316 5.3%

Cash Flow Hedges/others -292 -929 -68.6%

Foreign currency translation 13 22 -40.9%

Non-controlling shareholders’ share of earnings 25,815 25,306 2.0%

Total equity 606,510 577,295 5.1%

Non-current liabilities

Financial liabilities 694,569 680,915 2.0%

Derivative financial instruments 396 1,161 -65.9%

Deferred tax 62,578 59,824 4.6%

Pension provisions 3,062 2,928 4.6%

Total non-current liabilities 760,605 744,828 2.1%

Current liabilities

Financial liabilities 28,423 27,687 2.7%

Other liabilities 6,401 9,921 -35.5%

Total current liabilities 34,824 37,608 -7.4%

Total equity and liabilities 1,401,939 1,359,731 3.1%

VALUES BUILT ON FORESIGHT · Average daily trading volume in 2019: approx. 34,800 shares Market...

Documents

Transcript of VALUES BUILT ON FORESIGHT · Average daily trading volume in 2019: approx. 34,800 shares Market...