VIB Vermögen AG: VIB Group reports significant earnings growth and raises dividend

EBIT to 38.5 million EUR, Higher dividend, Forecast 2012

Neuburg/Donau (pta006/21.03.2012/07:30 UTC+1) March 21, 2012 - VIB Vermögen AG, a company specialising in commercial real estate portfolio management, grew its operating business in the past fiscal year, thereby reporting continuous growth for six consecutive years since its IPO, according to preliminary figures. Revenue reported on the basis of IFRS accounting grew by 1.1% to Eur 52.4 million due to higher rental income, reflecting targeted investments in the real estate portfolio (2010: Eur 51.8 million).

Other operating income was down by Eur 2.1 million to Eur 0.7 million. Valuation changes to investment properties stood at Eur 0.3 million (previous year: Eur -2.3 million). Expenses for investment properties declined slightly to Eur 10.9 million in the past fiscal year (previous year: Eur 11.0 million). After deducting personnel expenses of Eur 2.0 million (previous year: Eur 2.4 million), and other operating expenses of Eur 1.9 million (previous year: Eur 3.4 million), earnings before interest and tax amounted to Eur 38.5 million thanks to streamlined cost structures. This represents an 8.7% increase compared to 2010 (Eur 35.4 million). The resultant EBIT margin of almost 73% (2010: 65%) relative to operating income underscores the operating business's profitability. Interest expenses amounted to Eur 18.5 million, as a consequence of which VIB Vermögen AG generated earnings before tax (EBT) of Eur 19.0 million (+47.8%). The company incurred a positive tax amount of Eur 3.7 million in the previous year due to a special effect, while an income tax expense of Eur 3.7 million was reported in 2011. Consequently, the real estate company, which is based in Neuburg, Germany, reported consolidated net income of Eur 15.3 million, compared with Eur 16.9 million in the previous year. This represents earnings per share of Eur 0.76 (previous year: Eur 0.91).

Funds from operations (FFO), an important indicator for the VIB Group of operating cash inflows from its real estate business, amounted to Eur 0.95 per share in the financial year elapsed (previous year: Eur 0.97). The net asset value (NAV) of Eur 12.22 per share (previous year: Eur 12.36) reflects the portfolio's high level of asset backing. The decline compared with the previous year's reporting date represents a slight dilution effect due to the successfully completed capital increase in June 2011.

In view of this performance, Ludwig Schlosser, CEO of VIB Vermögen AG, was satisfied with the promising trend in the first quarter of 2011: "Despite a market environment that continues to be characterised by uncertainties, we fully invested the additional funds from the capital increase in new properties comprising a total volume of Eur 66.2 million. We thereby laid the foundation stone for further growth. We reported additional revenue and income growth in 2011. We would like our shareholders to participate in this success. We will propose to the AGM, which will be held on July 4, 2012 that a dividend of Eur 0.35 per share shall be paid, reflecting an Eur 0.05 increase per share compared to the previous year's dividend. This correlates to a growth of 16.7%."

Peter Schropp, Management Board member responsible for the real estate area of VIB Vermögen AG, is looking optimistically at the current fiscal year: "With the newly acquired properties, we have further expanded our position as the leading portfolio manager in the southern German region. Given this position, we anticipate at least 8% revenue growth in 2012 to approximately Eur 56.5 to 57.5 million. We expect earnings before interest and tax (EBIT) to rise by more than 6% to around Eur 41 to 42 million. We are also anticipating earnings before tax (EBT) to increase by at least 13% to approximately Eur 21.5 to 22.5 million - in each case before valuation effects."

The company will publish its final 2011 results on April 18, 2012, together with its annual report, on its website at www.vib-ag.de within the Investor Relations area.

Contact

Investor Relations:

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

cometis AG
Ulrich Wiehle / Patrick Ortner Tel: +49 (0)611 205855-16
Unter den Eichen 7 Fax: +49 (0)611 205855-66
65195 Wiesbaden E-Mail: ortner@cometis.de

Profile of VIB Vermögen AG (including BBI Immobilien AG)

VIB Vermögen AG (WKN 245751 / ISIN DE0002457512) is a medium-sized real estate holding company, whose investments focus on commercial properties in Southern Germany. Formed as a partnership in 1993, VIB Vermögen AG was transformed to become an Aktiengesellschaft (German public limited company) in 2000. Since then, the company has developed core competences in the acquisition and management of its own properties and participating interests in companies with real estate portfolios.

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Emitter:	VIB Vermögen AG Luitpoldstraße C 70 86633 Neuburg an der Donau Germany
Contact Person:	Petra Riechert
Phone:	+49 8431 504-952
E-Mail:	petra.riechert@vib-ag.de
Website:	www.vib-ag.de
ISIN(s):	DE0002457512 (Share)
Stock Exchange(s):	Free Market in Berlin, Dusseldorf, Frankfurt, Hamburg, Munich (m:access), Stuttgart