VGP NV

Reports Results for First Half 2020 - Seite 2

FINANCIAL AND OPERATING HIGHLIGHTS
New leases signed

• Signed and renewed rental income of € 20.1 million driven by 200,000 m² of new lease agreements signed, corresponding to € 11.4 million of new annualised rental income²
• During the period for a total of 164,000 m² of lease agreements were renewed corresponding to € 8.8 million of annualised rental income of which 30,000 m² (€ 1.7 million) related to the own portfolio and 134,000 m² (€ 7.1 million) related to the joint ventures³. Renewed contracts within the joint ventures portfolio included various prolongations by 1-5 years.
• Terminations represented a total of € 1.2 million or 25,000 m², all within the joint ventures’ portfolio
• The signed annualised committed leases represent € 165.2 million⁴ (equivalent to 2.84 million m² of lettable area), a 6.6% increase since December 2019.

Construction activity

• A total of 12 projects completed delivering 190,000 m² of lettable area, representing €9.9 million of annualised committed leases (as of 24^th of August 2020 this has increased to 311,000 m² of lettable area)
• Additional 33 projects under construction which will create 795,000 m² of future lettable area, representing €49.5 million of annualised leases once built and fully let – the portfolio under construction is 73.4% pre-let

Implications of Covid-19

• VGP’s business is progressing well in 2020 despite the Covid-19 pandemic. The entire VGP team has been operational throughout the crisis with full access to central systems. None of the VGP workforce has been furloughed and the Group has not taken any government support.
• The lockdown measures implemented by governments across Europe to combat the spread of the virus resulted in widespread disruption across many sectors of the economy. In some cases, this has impacted the operations and cash flows of VGP's customers, which has in some limited cases affected the level of rent we were able to collect from such customer.  VGP has worked constructively to support customers facing genuine cash flow challenges by offering to reschedule rental payments or reprofiling. None of our customers so far has requested to return their rented space.

Land bank has continued to expand