VGP NV

Reports Results for First Half 2020

24 August 2020, 7:00am, Antwerp (Berchem), Belgium: VGP NV (‘VGP’ or ‘the Group’), the Antwerp-based European provider of high-quality logistics and semi-industrial real estate, today announces the results for half-year ended 30 June 2020: 

• Operating performance resulting in a net profit of € 196.9 million
  • Result positively affected by the entering into a new 50:50 joint venture with Allianz Real Estate in respect of VGP Park München
  • € 20.1 million worth of signed and renewed lease agreements during H1 2020, bringing total annualised rental income to € 165.2 million (+6.6% YTD)¹ 
  • Delivered 12 projects for a total of 190,000 m² of lettable area in first half of 2020
  • 33 projects under construction for a total of 795,000 m² of lettable area as of 30 June 2020
  • Total portfolio value increased to €3.23 billion (+16.6%YTD)¹
  • VGP invested in its future pipeline with 1.17 million m² of new land bought and a further 1.97 million m² committed subject to permits
• Impact of Covid-19 remains limited so far
  • All our construction activities have resumed in full
  • The impact on rental payments is very limited: nearly all due payments were received on time with very limited rental payment reprofiling
• Broadened partnership with Allianz through launch of third joint venture for VGP Park München
• Balance sheet further strengthened through €200.0 million capital raising reducing gearing to 35.0% as of 30 June 2020

VGP’s Chief Executive Officer, Jan Van Geet, said: “Despite the challenging market environment due to the various Covid-19 lockdowns, we have achieved many new milestones during the first half of 2020.  Demand for our buildings remained strong resulting in a broad-based and mostly pre-let construction pipeline.  Furthermore, our new joint venture with Allianz in our VGP Park München has taken our cooperation to a next level and made our balance sheet stronger than ever before.”

Jan Van Geet added: “We have acquired a couple of big trophy land plots during the period, despite fierce competition on the market, thanks to the agility of our team and our reputation. I expect these land plots to be the main driver of value creation going forward as we already register a lot of appetite for these new locations.”

Jan Van Geet concluded: “We permanently focus on opportunities to continue to expand our portfolio pipeline; besides, we are working hard to become a major supplier of renewable energy for our tenants.”