VIB Vermögen (VIH1) H1 2024 earnings summary

Executive summary

• Achieved a dynamic and successful first half of 2024, advancing diversification and strengthening the office property portfolio.

• Secured annualized rental income of around €37 million by the reporting date, with further acquisitions and sales to impact H2 results.

• Completed and notarized several property transactions, including acquisitions and disposals in logistics and retail segments.

• Annual General Meeting approved all agenda items, including a squeeze-out of minority shareholders in BBI Bürgerliches Brauhaus Immobilien AG.

Financial highlights

• Gross rental income fell by 11.3% to €41.1m compared to H1 2023 due to prior year property sales.

• Net income dropped 64.3% year-over-year to €22.6m, mainly due to lower one-off sales gains.

• Adjusted ordinary business result (excluding sales gains) rose 21.7% to €26.5m.

• Funds from Operations (FFO) increased 7.2% to €40.0m year-over-year.

• Net debt rose 24% to €855.4m as of June 30, 2024.

Outlook and guidance

• Upwardly revised 2024 guidance: gross rental income expected at €85–89m and FFO at €74–78m.

• Vacancy rate projected to remain in the low single-digit range by year-end.

• Management confident in continuing positive business development in H2 2024.