VGP Trading Update
13 May 2022, 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
2022:
- Continued strong operating performance
- € 20.7 million signed and renewed lease
agreements (versus € 12.5 million for 4M ‘21), bringing total
annualized rental income to € 273.8 million
- 1,402,000 m2 under construction (+34.7 y-o-y)
representing € 91.7 million in additional annual rent once fully
built and let (currently 83.1% pre-let)
- The completed portfolio grew with 182,000 m2 to 3.34
million m2 (99.6% let)
- 1.04 million m2 of new land positions bought
and a further 3.49 million m2 committed subject to
permits bringing the total land bank to 11.28 million
m2 (+3.1% year-to-date)
- A third closing with the Second Joint Venture with a
transaction value of € 364 million (and gross
proceeds of € 233 million) was realized in
March 2022
- Three more JV closings anticipated for 2022 representing more
than € 1.0 billion
- In January, VGP successfully issued € 1.0
billion in green bonds. Combined with cash proceeds from
JV closings this resulted in a liquidity position of over €
900 million and € 200 million of undrawn
committed credit facilities at the end of April 2022.
- Further upscaling of the cash generating model through our own
and jointly held portfolio
- € 81 million of committed lease agreements to
become effective in the next 12 months resulting in a total
aggregate indexed effective rent of € 266.8
million at the end of this period (compared to the current
committed leases of € 273.8 million)
- In order to support Ukrainian refugees VGP has made a €
3 million contribution to UNHCR
VGP’s Chief Executive Officer, Jan Van
Geet, said: “Year to date we have signed € 20.7 million of
new or renewed leases, bringing total signed and committed leases
to € 273.8 million and we remain optimistic on the demand side, at
least for the short term in all of our parks across Europe –with
occupation on a historic high in all markets where we are active.
At the same time we have seen new developments affected by the rise
of construction costs, however until now we have been able to
mitigate this effect through higher rental prices but we might
expect economic challenges ahead due to increased inflation, supply
chain issues and geopolitical challenges.”
Jan Van Geet continued: “The European energy
market is severely impacted by the crisis in Ukraine, with
unprecedented volatility and very high prices. In order to support
our tenants, VGP is working on diversifying available sources of
energy supply, through the roll-out of renewables across our parks
and exploring the possibility of installing geo thermic heating
systems in all our new developments. Furthermore we have also
decided to move away from gas sourced heating systems in our new
buildings”
Jan Van Geet concluded: “I remain confident that
our solid balance sheet, pre-let pipeline and upcoming closings
with our JV partner Allianz Real Estate provide us with strong
foundations for the future. I want to thank my team for their
dedication, whilst our hearts go out to the extreme suffering of
the Ukrainian people and to all of those affected by the war.”
OPERATING HIGHLIGHTS – 4M
2022
Lease operations
- Signed and renewed rental income of € 20.7 million (+65.6%
year-on-year) driven by € 15.3 million of new leases (€ 3.8 million
on behalf of the Joint Ventures1) and € 2.0 million of renewals
(all on behalf of the Joint Ventures) and € 3.4 million of
indexation (€3.2 million on behalf of the Joint Ventures). Lease
agreements in the amount of € 1.0 million were terminated
- Annualized committed leases as of April 2022 (including Joint
Ventures at 100%) of € 273.8 million (vs € 256.1 million at Dec-21)
of which € 169.4 million related to the Joint Ventures
- This on the back of a continuous strong demand in all of the
countries where VGP has a presence
Development activities
- Delivery of 9 projects during the first four months of 2022
adding 182,000 m2 of lettable area representing € 8.2 million of
annualized leases; these buildings are 98.3% let
- A total of 45 projects under construction which will create
1,402,000 m2 of future lettable area representing € 91.7 million of
annualised leases once fully built and let (83.1% pre-let)
- Construction costs have trended further upwards due to
geopolitical and economic challenges, this is partly offset through
higher rental prices and remains to be monitored closely
- Geographical split of parks under construction, based on square
meters: 50% are located in Germany, 9% in the Czech Republic, 7%
Spain, 7% the Netherlands, 5% Latvia, 6% Slovakia, 7%
Romania, 7% Hungary and 2% Austria
Land bank
- During the first four months of 2022 in total 1,040,000 m2 of
land was acquired representing a development potential of 380,000
m2 and a further 3,495,000 m2 of land plots were committed, pending
permits, which have a development potential of 1,577,000 m2 of
future lettable area, bringing the total owned and committed land
bank to 11,278,000 m2 (+3.1% year-to-date), supporting 4,573,000 m2
of future lettable area
- A further 1,512,000 m² of new land plots have been identified
and secured which are under due diligence and have a development
potential of 552,000 m² of future lettable area. This brings the
land bank of owned, committed and secured to 12,790,000 m2
supporting 5,125,000 m2 of future lettable area
ESG and sustainable energy initiatives
- A total solar power generation capacity of 100.1 MWp is
currently installed or under construction through 54 roof-projects.
This is being realised through a € 40.7 million investment to date.
In addition, the currently identified pipeline equates to an
additional power generation capacity of 57.1 MWp
- In order to ensure a more sustainable and robust energy supply
in our buildings, all new builds will be designed without gas
sourced heating where feasible going forward
- In order to support Ukrainian refugees VGP has made a €3
million contribution to be deployed in the three neighbouring
countries where VGP has a long standing presence (Slovakia, Hungary
and Romania). The donation is to be allocated in collaboration with
the UNHCR
Capital and liquidity position
- On January 10th VGP announced a senior unsecured green bond for
an aggregate amount of € 1 billion across two € 500 million
tranches of 5-years and 8-years. The 5-year tranche paying a coupon
of 1.625 % and maturing 17th of January 2027 and the 8-year tranche
paying a coupon of 2.250% and maturing the 17th of January 2030.
Demand exceeded just under 2.5 times the combined volume of the
offering
- The outstanding bank loan facility of € 19 m with Swedbank AS
in Latvia has been repaid in full at its maturity date at end of
March
- These actions have further solidified the balance sheet with a
cash position of over € 900 million and unused credit facilities of
€ 200 million at April 30th 2022
- VGP was included in the BEL20 as of the 18th of March 2022
- With regards to the Joint Ventures, the third closing in the
Second Joint Venture took place in March. The transaction value was
€ 364 million and the gross proceeds amounted to € 233 million. A
final closing in the First Joint Venture is anticipated during Q3
2022. The initial closing of the Fourth Joint Venture and a third
closing for the Third Joint Venture are anticipated to occur around
year end 2022. The remaining closings are expected to have a
combined Gross Asset Value of more than € 1.0 billion
- On the 13th of May, the Board of Directors will propose to the
Annual Shareholders Meeting the distribution of a gross dividend of
€ 6.85 per share corresponding to a total gross dividend amount of
€ 149.6 million. It is expected that the payment date will be
the 25th of May 2022 (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 |
Petra Vanclova (External Communications) |
Tel: +42 0 602 262 107 |
Anette NachbarBrunswick Group |
Tel: +49 152 288 10363 |
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 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 11.28 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 360 FTE’s today owns
and operates assets in 14 European countries directly and through
several 50:50 joint ventures. As of December 2021, the Gross Asset
Value of VGP, including the joint ventures at 100%, amounted to €
5.75 billion and the company had a Net Asset Value (EPRA NTA) of €
2.33 billion. VGP is listed on Euronext Brussels (ISIN:
BE0003878957).
For more information, please visit:
http://www.vgpparks.eu
1 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
- VGP - Trading update 13 May 2022 (EN)_Final_ENG_2
VGP NV (EU:VGP)
Historical Stock Chart
From Apr 2024 to May 2024
VGP NV (EU:VGP)
Historical Stock Chart
From May 2023 to May 2024