VGP NV (‘VGP’ or ‘the Group’), a European provider of high-quality logistics and semi-industrial real estate, announces the results for half-year ended 30 June 2022: • Strong operating performance resulting in a net profit of € 153.1 million • € 35.4 million worth of signed and renewed lease agreements during H1’22, bringing total annualised rental income to € 281.1 million (+9.7% YTD)1 • As at 30 June 2022, a total of 1,346,000 m2 under construction through 40 projects representing € 88.1 million in additional annual rent once fully built and let (87.4% pre-let) o 206,000 m2 of projects started up in H1’22 pre-let at 81.7%, representing € 11.1 million of rental income once fully built and let o Delivered 17 projects representing 334,000 m2 during H1’22, 99.3% let and representing € 17.1 million of rental income • Strong liquidity position of €730 millionsexpected to be further positively impacted through seed portfolio closing of Fourth JV and completion of works in VGP Park Munich in H2’22 o Cash balance supported by third closing with Second JV with net proceeds of € 215 million in Q1‘22 and includes gross proceeds of € 82 million of two additional JV transactions as per July 1st ‘22 o Expected minimum gross proceeds of € 73 million for completion of works in VGP Park Munich expected in Q4’22 o Fourth Joint Venture seed portfolio closing planned for Q4‘22 o Revolving credit facility increased by 50% to € 300 million (all remaining undrawn) • Gearing ratio of 35.2% (33.5% on a pro forma basis²)
VGP’s Chief Executive Officer, Jan Van Geet, said: “In the first half year we have seen robust growth with € 35 million of new or renewed lease agreements signed and supported by significant rental growth in most countries. This growth was realised despite a more prudent approach by e-commerce sector of which a number of major players have shifted their take-up focus towards 2024 and beyond.” Jan Van Geet continued: “The unstable energy markets have not only given a significant boost to our renewable energy revenue potential, it has also served as an accelerator in our tenants’ desire to switch to renewable energy consumption. Beyond the traditional stronghold countries of Germany and the Netherlands we are now initiating solar projects in almost all regions based on direct tenant demand.” Jan Van Geet added: “Although we have taken a more cautious approach to our land acquisitions during the first half of the year, an important side effect of these unstable energy markets is that it creates tremendous growth opportunities for us. After all, it accelerates the need for energy-inefficient industries to reinvent themselves and move to more sustainable and energy-efficient housing and operations. One of the side effects of this is that they are putting their old factories, mostly in prime locations, up for sale which consequently offers interesting brownfield redevelopment opportunities for VGP.” Jan Van Geet concluded: “A strong capital position is important, particularly as such highly attractive brownfield opportunities start to increasingly arise. The significant cash recycling through the completed and anticipated joint venture closings enhances our balance sheet and allows us the flexibility to best serve our customers whilst enabling us to create significant value for all stakeholders involved.”
1 Compared to 31 December 2021 and inclusive of Joint Ventures at 100%. 2 Includes €82 million cash received on 1-Jul-22 as part of two JV closings.
Source : Company