VGP’s Half Year Results 2023
August 24 2023 - 1:00AM
VGP’s Half Year Results 2023
Regulated information - Inside
information
24 August 2023, 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 2023:
- € 36.2 million worth of
signed and renewed lease agreements during 1H'23, bringing total
committed annualised rental income to €
328.1 million (+8.2% YTD)1. On a
look through basis, net rental and renewable energy income
increased 60% to € 75.62 million year over year.
- Strong net cash recycling of € 267.9 million
as a result of two closings with Allianz Joint Ventures and further
recycling of + € 450 million
expected through seed portfolio closing with new Deka Joint Venture
in Q3 ‘23
- A pre-tax profit of € 48.6 million, reflecting
€ 33.5 million of net rental and renewable energy income (+96% YoY)
and € 45.5 net valuation gains on the portfolio
- As at 30 June 2023, a total of 732,000 m2
under construction through 24 projects representing € 50.6
million in additional annual rent once fully built and let
(90.7% pre-let, versus market average of cca 50%3)
- 236,000 m2 of projects started up in 1H’23
pre-let at 81.5%, representing € 17 million of rental income once
fully built and let
- Delivered 13 projects representing 317,000 m2
during 1H’23, 97.2% let and representing € 18.7 million of rental
income once fully let
- Total completed assets4 represent 4.621.000
m2 or 207 buildings, are 98.8% let and have an
average age of only 3.7 years
- Repaid € 150 million of bonds in April ’23. Additional bond
repayments of € 225 million in September ’23 will be covered by
further Joint Venture cash recycling
VGP’s Chief Executive Officer, Jan Van
Geet, said: “It has been an eventful and productive first
half of the year, marked by a considerable € 36.2 million of
annualized committed rental growth. We are pleased to have welcomed
numerous new tenants to our portfolio whilst successfully executing
multiple transactions with our existing Joint Venture partners.
Moreover, we are witnessing a decline in construction prices which
allows us to initiate new constructions at favourable margins.”
Jan Van Geet, continued: “I believe many have
been waiting for an update on the broadening of our Joint Venture
model and I am convinced that with Deka we have found comparable
DNA to sustain a long term 50:50 partnership. By the end of Q3 a
first closing comprising over € 700 million of gross asset value
will materialize and by Q3 ’24 the entire portfolio, totalling over
€ 1.1 billion, will have transferred into the joint venture
allowing VGP to recycle over € 700 million of cash. The joint
venture will be managed by VGP in a similar way to our existing
Joint Ventures and as I have been told, the transaction forms the
largest of Europe in its class year to date. In these times, I
believe I can proudly state that this is a testament to the
resilient quality of our portfolio.”
Jan Van Geet, concluded: “As expected, the real
estate industry’s recent shake-up on the back of rising interest
rates has revealed a multitude of opportunities, and we are ready
to capitalize on them. As such, VGP has signed exclusivity on a
number of iconic industrial sites on absolute top locations. In
this respect, our solid balance sheet and transactions with
existing and new Joint Ventures facilitates us to recycle cash to
sustain continuous growth. A prospect I am indeed very excited
about and look forward to report upon as we progress.”
KEY FINANCIAL METRICS
Operations and
results |
1H 2023 |
1H 2022 |
Change (%) |
Committed annualised rental income (€mm) |
328.1 |
281.1 |
16.72% |
IFRS Operating profit (€mm) |
56.7 |
190.5 |
(70.24%) |
IFRS net profit (€mm) |
34.7 |
153.1 |
(77.34%) |
IFRS earnings per share (€ per share) |
1.27 |
7.01 |
(81.88%) |
Portfolio and balance sheet |
30 Jun 23 |
31 Dec 22 |
Change (%) |
Portfolio value, including joint venture at 100% (€mm) |
6,759 |
6,443 |
4.90% |
Portfolio value, including joint venture at share (€mm) |
4,773 |
4,605 |
3.65% |
Occupancy ratio of standing portfolio (%) |
98.8 |
98.9 |
- |
EPRA NTA per share (€ per share)5 |
82.05 |
84.35 |
(2.72%) |
IFRS NAV per share (€ per share) |
79.21 |
80.69 |
(1.83%) |
Net financial debt (€mm) |
1,852 |
1,669 |
10.96% |
Gearing6(%) |
40.1% |
34.4 |
- |
WEBCAST FOR INVESTORS AND ANALYSTS
VGP will host a webcast at 10:30 (CET) on 24 August
2023
Webcast link:
- https://channel.royalcast.com/landingpage/vgp/20230824_1/
- Click on the link above to attend the presentation from your
laptop, tablet or mobile device. The webcast will stream through
your selected device.
- Please join the webcast 5-10 minutes prior to the start
time
A presentation will be available on VGP website:
https://www.vgpparks.eu/en/investors/publications/
CONTACT DETAILS FOR INVESTORS AND MEDIA
ENQUIRIES
Investor Relations |
Tel: +32 (0)3 289 1433 investor.relations@vgpparks.eu |
Karen Huybrechts (Head of Marketing) |
Tel: +32 (0)3 289 1432 |
ABOUT VGP
VGP is a pan-European developer, manager and
owner 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. The company has
a development land bank (owned or committed) of 11.31 million m²
and the strategic focus is on the development of business parks.
Founded in 1998 as a Belgian family-owned real estate developer in
the Czech Republic, VGP with a staff of circa 371 FTEs today and
operates in 17 European countries directly and through several
50:50 joint ventures. As of June 2023, the Gross Asset Value of
VGP, including the joint ventures at 100%, amounted to € 6.76
billion and the company had a Net Asset Value (EPRA NTA) of € 2.2
billion. VGP is listed on Euronext Brussels. (ISIN:
BE0003878957).
For more information, please visit:
http://www.vgpparks.eu
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.
1 Compared to 31 December 2022 and inclusive of Joint
Ventures at 100%
2 See note ‘income statement, proportionally
consolidated’
3 Based on Jones Lang Lasalle market analysis
4 Of which 3.174.000 m2, or 154 buildings in JVs and
1.447.000 m2 or 53 buildings in OWN portfolio
5 See note 9.2
6 Calculated as Net debt / Total equity and
liabilities
- VGP_Press_Release_H12023 ENG
VGP NV (EU:VGP)
Historical Stock Chart
From Jul 2024 to Aug 2024
VGP NV (EU:VGP)
Historical Stock Chart
From Aug 2023 to Aug 2024