VGP NV (“VGP” or the “Group”), a European provider of high-end logistics and semi-industrial real estate, today announces results for the first half of the year ended 30 June 2022:
• Strong operating performance led to a net profit of €153.1 million.
• EUR 35.4 million in signed and renewed leases for the first half of 2022 was achieved, resulting in a total annualized rental income of EUR 281.1 million (+9.7% year-to-date).
• As of June 30, 2022, there are 40 projects under construction with a total area of 1,346,000 m2, representing an additional €88.1 million in annual rents once the projects are completed and fully leased (87.4% pre-leased).
o A total of 206,000 m2 of the area of projects started in the first half of 2022 of which 81.7% has been pre-leased, representing EUR 11.1 million in rents after the projects are completed and fully leased
o For the first half of 2022, 17 projects with a total area of 334,000 m2 have been delivered, of which 99.3% is leased, representing an income of EUR 17.1 million in rents.
• A strong liquidity position of EUR 730 million is likely to be further positively impacted by the closing of the initial portfolio of the Fourth Joint Venture and the completion of works at VGP Park Munich in the second half of 2022.
o The cash position was supported by the third transaction with the Second Joint Venture with net proceeds of €215 million for the first quarter of 2022 and includes gross proceeds of €82 million from the other two transactions concluded with the joint venture as of July 1, 2022.
o Minimum gross receipts of EUR 73 million are expected for the completion of works at VGP Park Munich in the fourth quarter of 2022.
o Closing of the initial portfolio of the Fourth Joint Venture is scheduled for the fourth quarter of 2022.
o The revolving credit facility was increased by 50% to EUR 300 million (not yet fully drawn).
• The indebtedness rate was 35.2% (33.5% according to pro forma²).
“Together with the renewal of existing leases and the signing of new leases worth EUR 35 million, we saw strong growth in the first half of the year, resulting in significant rent increases in most countries. This growth has come despite a more restrained approach by the e-commerce sector, with a number of major players waiting to lease until 2024 and beyond,” says Jan Van Geet, CEO of VGP, and continues: “The volatile energy markets have not only significantly increased our revenue potential from renewable energy sources, but also increased the desire of our tenants to switch to energy consumption from renewable sources. In addition to established strongholds in Germany and the Netherlands, we are now launching solar projects in almost all regions based on direct tenant demand.
Photo: VGP Park Olomouc Building I
