VGP’s Half Year Results 2024

Regulated information – Inside information

23 August 2024, 7:00am, Antwerp, Belgium: VGP NV (‘VGP’ or ‘the Group’), a European provider of high-quality logistics and semi-industrial real estate, today announces the results for half-year ended 30 June 2024:

• A pre-tax profit of € 154.6 million (increase of 218% versus H1 ’23), reflecting € 33 million of net rental and renewable energy income, joint venture management fee income of € 15.7 million and € 99.1 million net valuation gains on the portfolio
• € 45.6 million worth of signed and renewed lease agreements during H1 ’24, bringing total committed annualised rental income to € 384.7 million (+9.7% YTD)¹
  • A record of € 28.8 million of new lease agreements contracted, + 47% versus H1 ’23
  • On a look through basis, net rental and renewable energy income increased by 21% versus H1 ‘23 to € 91.6² million
• As at 30 June 2024, a total of 835,000 sqm under construction through 34 projects representing
  € 56.8 million in additional annual rent once fully built and let
  • 326,000 sqm of projects started up in H1 ’24, representing € 21.6 million of rental income once fully built and let
  • Pre-let ratio amounts to 70.1%, following the conclusion of several significant lease agreements to date. Assets which are longer than six months under construction are 74.2% pre-let
• Delivered 8 projects representing 264,000 sqm during H1 ’24, 100% let and representing € 17.2 million of rental income
  • Total completed assets³ represent 5.632.000 sqm or 229 buildings, are 99% let and have an average age of only 4.0 years
• The total landbank stands at 8.5 million sqm representing a development potential of 3.7 million sqm after the acquisition of 375,000 sqm of new development land and the sale of VGP’s stake in the Development Joint Venture LPM in H1 ’24
• Gross renewables income increased 31% YoY to € 3.8 million, despite significant fall in energy prices, driven by a photovoltaic (PV) capacity increase of 115% YoY with operational capacity at 143.3 MWp (vs. 66.6MWp in Jun-23). 29.7 MWp PV projects under development and a further 92.6 MWp being planned. A first 6.8MWh battery project is planned to enhance self-consumption and to alleviate grid capacity issues, more battery projects are anticipated
• Solid balance sheet with total cash at € 625 million and a € 400 million undrawn credit facilities availability. VGP drew € 135 million of the € 150 million credit facility of the European Investment Bank that was granted in February of this year
• Net cash recycling of € 662.1 million as a result of closings with the Deka and Areim Joint Ventures and the disposal of the Development Joint Venture LPM Moerdijk. A third closing with Deka effectuated in August ’24 provided for  € 68 million of additional gross proceeds
• After the balance sheet date VGP repaid the € 75 million bond that was due in July ’24, lowering the cost of debt from 2.25% per H1 ’24 to 2.21% following the repayment.

For the full press release please refer to the attachment.

¹   Compared to 31 December 2023 and inclusive of Joint Ventures at 100%

²    See note ‘income statement, proportionally consolidated’

³  Of which 4,410,000 m², or 190 buildings in JVs and 1,222,000 m² or 39 buildings in own portfolio

Attachment

• VGP_Press_Release_1H2024 ENG