VGP Trading Update
PRESS RELEASE Regulated Information
9 May 2023, 7:00am, Antwerp,
Belgium: VGP NV (‘VGP’ or ‘the Group’), a European
provider of high-quality logistics and semi-industrial real estate,
today published a trading update for the first four months of
2023:
- Continued strong operating performance
- € 24.3 million signed and renewed lease
agreements (versus € 20.7 million for 4M ‘22), bringing total
annualized rental income to € 320.7 million1
- 23 projects, representing 664.000
m2 under construction and € 44.4 million in additional
annual rent once fully built and let (currently 93.4% pre-let), of
which 6 projects initiated construction in ’23, representing
114.000 m2 of fully let area
- 9 projects delivered during the first four months representing
264,000 m2 bringing the already income generating portfolio to 4.6
million¹ m2 lettable area (99% let)
- A total of 300,000 m2 of land acquired, bringing the total
landbank to 7,987,000 m2 representing a development potential of
circa 3.6 million m2
- Progress on joint ventures:
- Successful 10th closing with the first joint venture was
completed in January generating € 81 million of cash
- The group is in advanced negotiations to broadening its JV
Model with potential and existing partners. Further formalisations
are expected in the coming period
- Advancement of cash generating model through our own and
jointly held portfolio
- € 44 million of committed lease agreements to
become effective in the next 12 months resulting in a total
aggregate indexed effective rent of € 310.4
million at the end of this period (compared to the current
committed leases of € 320.7 million)
- Repaid € 150 million of bonds upon the
maturity in April. This is one of the two bonds coming to maturity
in 2023, the second one planned for repayment in September (€ 225
million at 3.90%)
VGP’s Chief Executive Officer, Jan Van
Geet, said: “2023 started off on a strong footing based on
resilient occupier demand across the portfolio despite economic
uncertainties. Furthermore, indications of a favorable change in
trend in construction prices is supporting our newly planned
developments. Our total committed leases grew to € 320.7 million¹,
whereby the rental growth is driven by incremental leases of € 11.8
million¹ as well as indexations of € 9.2 million¹.
Jan Van Geet continued: “Further progress has
also been made in the discussions with potential and existing joint
venture partners, where several transactions are in due diligence
phase and we continue to explore various alternatives.
Communication on the outcome of said discussions is anticipated in
the upcoming period.”
Jan Van Geet concluded: “We are optimistic in
our outlook for the upcoming months as we increasingly see
interesting opportunities with a lot of accretive development
potential arise in the market. At the same time we remain focused
on maintaining our high occupancy and pre-let ratios.”
OPERATING HIGHLIGHTS – 4M 2023
Lease operations
- Signed and renewed rental income of € 24.3 million driven by €
11.8 million of new leases (€ 3.6 million on behalf of the Joint
Ventures2), € 3.3 million of renewals (all on behalf of the Joint
Ventures) and € 9.2 million of indexation, or 5.8% like-for-like
growth (€ 5.4 million on behalf of the Joint Ventures). Lease
agreements in the amount of € 3.5 million were terminated.
- Annualized committed leases as of April 2023 (including Joint
Ventures at 100%) of € 320.7 million (vs € 303.2 million at Dec-22)
of which € 169.2 million related to the Joint Ventures. The
weighted average term of the leases stands at 8.1 years3 for the
entire portfolio.
- The Annualised Committed Leases are composed of € 266.0 million
lease agreements which have already become income generating as of
30 April 2023 and € 54.7 million signed lease agreements which will
become income generating in the future. The breakdown as to when
the Annualised Committed Leases will become income generating is as
follows:
In Million EUR |
Current annualised rental income |
To start within < 1 year |
To start between 1-5 years |
To start between 5-10 years |
Total Annualised Committed Leases as of 30 April
2023 |
Own |
99.3 |
42.0 |
8.4 |
1.9 |
151.5 |
JV’s |
166.7 |
2.4 |
0.0 |
0.0 |
169.2 |
Total |
266.0 |
44.5 |
8.4 |
1.9 |
320.7 |
Development activities
- Delivery of 9 projects during the first four months of 2023
adding 264,000 m2 of lettable area representing € 15.2 million of
annualized leases; these buildings are 98.7% let.
- Started 6 projects over the first four months of the year
representing 114,000 m2 and € 8 million of annualized leases; the
buildings are 100% pre-let.
- A total of 23 projects under construction which will create
664,000 m2 of future lettable area representing € 44.4 million of
annualised leases once fully built and let (93.4% pre-let).
- Geographical split of parks under construction, based on square
meters: 60% are located in Germany, 15% in Hungary, 6% in the Czech
Republic, 6% in Romania and 6% in Serbia, 3% in Portugal, 2% in
Austria and 1% in Slovakia.
Land bank
- During the first four months of 2023 a total of 300,000 m2 of
land has been acquired with land deployed for projects started
during the same period amounting to 269,000 m2. This brings the
total acquired landbank to 7,987,000 m2 representing a development
potential of circa 3.6 million m2.
- A further 2,094,000 m2 of land plots were committed, pending
permits, which have a development potential of at least 1 million
m2 of future lettable area, bringing the total owned and committed
land bank to 10,081,000 m2 (-2.7% year-to-date), supporting circa
4.6 million m2 of future lettable area.
Renewable energy
- Currently there is 151.2 MWp of total solar power generation
capacity installed or under construction through 101 roof-projects.
In addition, the currently identified pipeline equates to an
additional power generation capacity of 65.4 MWp through 58
roof-projects, bringing the production capacity including the
pipeline to 217 MWp.
Update on ESG initiatives
- CO2 emissions and 2030 target across Scope 1-3 have been
confirmed by the Science Based Target initiative.
- VGP was included in the BEL ESG index by Euronext as of the
20th of March 2023. This index was designed to meet sustainable
investment needs and tracks the Brussels-listed companies
demonstrating the best Environmental, Social and Governance (ESG)
practices. On the same date VGP was excluded from the BEL 20 index
on Euronext.
- VGP aims to have new developments certified with BREEAM
Excellent or DGNB Gold certification.
- The next steps for the EU Taxonomy review are well underway
following the eligibility review last year, with two buildings
having received an EU Taxonomy ‘certification’ and several further
EU Taxonomy building ‘certifications’ currently ongoing.
Capital and liquidity position
- With regards to the Joint Ventures, the tenth closing of the
first joint venture was completed in the course of January. The
transaction value exceeded € 110 million and the gross proceeds
amounted to € 81 million. Upon the closing of this transaction the
First Joint Venture has reached completion and has entered its
holding period.
- On the 3rd of April VGP repaid its € 150 million bond (2.75%)
as it came to maturity. This is one of the two bonds coming to
maturity in 2023, the second one planned for repayment in September
(€ 225 million at 3.90%).
- The group is in advanced negotiations to broadening its Joint
Venture Model with potential and existing partners. Several
transactions are in due diligence phase. Further formalisations are
expected in the coming period.
- On the 12th of May, the Board of Directors will propose to the
Annual Shareholders Meeting the distribution of a gross dividend of
€ 2.75 per share corresponding to a total gross dividend amount of
€ 75 million. It is expected that the payment date will be the 26th
of May 2023 (to be confirmed by a separate press release after the
AGM).
CONTACT DETAILS FOR INVESTORS AND MEDIA
ENQUIRIES
Investor Relations |
Tel: +32 (0)3 289 1433investor.relations@vgpparks.eu |
Karen Huybrechts (Head of Marketing) |
Tel: +32 (0)3 289 1432 |
Forward-looking statements:
This press release may contain forward-looking statements.
Such statements reflect the current views of management regarding
future events, and involve known and unknown risks, uncertainties
and other factors that may cause actual results to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. VGP is
providing the information in this press release as of this date and
does not undertake any obligation to update any forward-looking
statements contained in this press release considering new
information, future events or otherwise. The information in this
announcement does not constitute an offer to sell or an invitation
to buy securities in VGP or an invitation or inducement to engage
in any other investment activities. VGP disclaims any liability for
statements made or published by third parties and does not
undertake any obligation to correct inaccurate data, information,
conclusions or opinions published by third parties in relation to
this or any other press release issued by VGP.
ABOUT VGP
VGP is a pan-European owner, manager and
developer of high-quality logistics and semi-industrial real
estate. VGP operates a fully integrated business model with
capabilities and longstanding expertise across the value chain.
Founded in 1998 as a Belgian family-owned real estate developer in
the Czech Republic, VGP with a staff of circa 383 FTE’s today is
active in 17 European countries directly and through several 50:50
joint ventures. As of December 2022, the Gross Asset Value of VGP,
including the joint ventures at 100%, amounted to € 6.44 billion
and the company had a Net Asset Value (EPRA NTA) of € 2.30 billion.
VGP is listed on Euronext Brussels (ISIN: BE0003878957). For more
information please visit:
http://www.vgpparks.eu/en
1 Including JV’s @ 100%
2 Joint Ventures means either and each of (i)
the First Joint Venture i.e. VGP European Logistics S.à.r.l., the
50:50 joint venture between VGP and Allianz and (ii) the Second
Joint Venture i.e. VGP European Logistics 2 S.à.r.l., the 50:50
joint venture between VGP and Allianz, and (iii) the Third Joint
Venture i.e. VGP Park München GmbH, the 50:50 joint venture between
VGP and Allianz, and (iv) the Fourth Joint Venture i.e. VGP
European Logistics 3 S.à.r.l., the 50:50 joint venture between VGP
and Allianz and (v) LPM Joint Venture, i.e. LPM Holding B.V., the
50:50 joint venture between VGP and Roozen Landgoederen Beheer
3 7.05 years for the JV’s and 9.27 years on the own
portfolio
- VGP - Trading update 9 May 2023_ENG
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