VIB Vermögen AG has reported its financial results for the first half of 2026, with key metrics meeting expectations and significant strategic milestones achieved. The company's gross rental income declined to EUR 46.8 million from EUR 50.2 million in the prior-year period, primarily due to property sales in 2025 and 2026. Funds from operations (FFO) also decreased to EUR 24.1 million, down from EUR 47.8 million, reflecting the loss of interest income from the loan to Branicks Group AG. Despite these declines, the Management Board confirmed its full-year guidance for FFO between EUR 60 and 70 million.
Income from property management in the Institutional Business segment surged to EUR 19.1 million, up from EUR 3.3 million in the same period last year. This growth underscores the success of VIB's strategic expansion into managing properties for institutional investors. The company expects further increases in the second half of the year due to anticipated transactions, reinforcing the segment's contribution to overall profitability.
Dirk Oehme, Speaker of the Board, commented: "Despite ongoing market uncertainties, persistent geopolitical tensions and volatile interest rates, we are fully on track with the development of the first half of the year. Our current transaction pipeline will ensure further income over the course of the year. This, together with the joint venture in project development that we recently concluded, represents further milestones that point to a promising development of the VIB Group in the coming years."
Assets under management (AuM) stood at EUR 9.7 billion as of June 30, 2026, down from EUR 10.1 billion at the end of 2025. The decrease is attributed to disposals in both the Commercial Portfolio and the Institutional Business segment. The market value of the Commercial Portfolio remained stable at EUR 1.8 billion, with net rental income at EUR 40.9 million. The EPRA vacancy rate in the own portfolio rose to 11.5% from 6.3% at the end of 2025, reflecting the impact of property disposals.
In the Institutional Business, the market value of managed properties was EUR 7.9 billion. The rise in property management fees to EUR 19.1 million demonstrates the scalability of this business. The Management Board confirmed its expectation of property management income between EUR 53 and 63 million for the full year.
VIB maintains a solid financing structure with an average interest rate on bank loans of 2.5% per annum and a loan-to-value (LTV) ratio of 41.2%, down from 43.0%. The company also secured the refinancing of EUR 58 million promissory note loans due in September 2026 and March 2027, providing planning certainty.
Strategically, VIB is focusing on expanding its Institutional Business and scaling its project development activities. The appointment of Christian Fritzsche as Management Board member for the Institutional Business segment underscores this commitment. Additionally, a joint venture with Tristan Capital was concluded to intensify project development in the logistics sector, leveraging Tristan's financial capacity and VIB's expertise.
The half-year report is available for download at https://vib-ag.de/en/. VIB Vermögen AG remains optimistic about its future prospects, backed by a robust transaction pipeline and strategic initiatives.
