VGP NV: Trading Update
PRESS RELEASE Regulated Information
14 May 2021, 7:00am, Antwerp (Berchem),
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
2021:
- Continued
strong operating performance
- €12.5 million
signed and renewed lease agreements, bringing total annualized
rental income to €196.8 million (+6% year-to-date)
- A record
1,041,000 m2 under construction representing €64.8 million in
additional annual rent once fully built and let (currently 80.1%
pre-let)
- Completed
portfolio grown with 58k m2 to 2.50 million m2 which is 99.6%
let
- Expansion of
land bank to secure future growth
- Extended
pipeline through 471,000 m2 of new land bought and a further 3.1
million m2 committed subject to permits
- Total land bank
acquired and secured has grown to 8.54 million m2 (+11.6%
year-to-date) which supports 4.0 million m2 of future lettable
area
- Joint Venture
closing anticipated for end of May with expected net cash proceeds
of €52 million
- Advanced
discussions with Allianz regarding expansion of first Joint Venture
ongoing
VGP’s Chief Executive Officer, Jan Van
Geet, said: “The year 2021 has started on a strong footing
as demand for premium locations remains at elevated levels due to
changing consumer behaviour and technological advancements in
industry. Year-to-date we have signed €12.5 million of lease
agreements and we expect this number to grow in the coming weeks as
several signed prelim agreements representing >€10 million are
expected to be finalized.”
Jan Van Geet continued: "As a result, our
predominantly pre-let construction portfolio is topping for the
first time 1 million m2, of which over half is situated in Germany
(with 215k in VGP Park München) and the other projects well spread
across the other European markets. These strong market fundamentals
and our resilient delivery put us at pace for another very strong
year.”
Jan Van Geet concluded: “Our recent inaugural
€600 million international green bond offering has allowed us to
diversify our funding mix and provides enhanced flexibility for
future capital allocation decisions. Whilst maintaining a
disciplined and fortress balance sheet, we remain committed to
using our resources to drive inclusive and sustainable solutions
for the communities we serve as we support our customers in solving
their logistics needs or manufacturing real estate requirements.
This has enabled us, despite scarcity of permittable land, to
continue to make significant investments in the future pipeline, by
replenishing and growing our secured land bank with net 900,000 m2
year to date, including several trophy locations which will drive
leasing growth in the coming years.”
OPERATING HIGHLIGHTS – 4M
2021
Lease operations
- Signed and renewed rental income of
€ 12.5 million driven by €11.8 million of new leases (€2.6 million
on behalf of the Joint Ventures1) and €0.7 million of renewals (all
on behalf of the Joint Ventures). Lease agreements in the amount of
€ 0.2 million were terminated
- Annualized committed leases at
April 2021 (including Joint Ventures at 100%) of €196.8 million (vs
€185.2 million at Dec-20) of which €145.9 million related to the
Joint Ventures
- Several leasing contracts are in
the pipeline and expected to be signed in the coming weeks
- The impact of COVID-19 on leasing
operations and customer payment behaviour has been minimal with
virtually all rent payments received on time
Development activities
- Development of 39 projects under
construction totalling 1,041,000 m2 of future lettable area and
expected to generate € 64.8 million of new rent when fully built
and leased (80.1% pre-let)
- Geographical split of parks under
construction: 53% is located in Germany, 11% Spain, 7% in each
Czech Republic and Slovakia, 5% Romania, 4% in each Italy and
Netherlands, 3% in each Hungary and Portugal and 1% in Austria
- Delivery of 4 projects during the
first four months of 2021 of in total 58,000 m2 of lettable area
representing € 1.2 million of annualized committed leases; these
buildings are 100% let
- All construction activities
currently run on schedule whilst taking into account the applicable
Health and Safety guidance and regulations for all our operations
in relation to COVID-19
Land bank
- During the first four months of
2021 in total 0.47 million m2 of land was acquired representing a
development potential of 0.20 million m2
- A further 3.09 million m2 of land
plots are committed, pending permits, and have a development
potential of 1.31 million m2 of future lettable area, bringing the
total owned and secured land bank to 8.54 million m2 supporting
3.97 million m2 of future lettable area
- In addition 3.83 million m2 of land
has been identified and is under exclusive negotiation
(representing 1.58 million m2 of future lettable area)
Renewable Energy
- A total solar power generation
capacity of 48.8MWp is currently installed or under construction
through 45 roof-projects. This is being realised through a €21
million investment to date. In addition, the pipeline identified at
the moment equates to an additional power generation capacity of 64
MWp
Capital and liquidity position
- On 31 March 2021, VGP announced the
successful issue of a first benchmark international green bond for
an aggregate nominal amount of € 600 million, paying a coupon of
1.50 per cent. p.a. and maturing on 8 April 2029. Demand exceeded
2.7 times the volume of the issue. The proceeds from this issuance
are being used to fund the majority pre-let development pipeline,
the build out of renewable energy assets and the design and
development of new green logistics and semi-industrial parks
- Before the end
of May, we anticipate the eighth closing with VGP European
Logistics, the First Joint Venture with Allianz Real Estate. The
expected transaction value is €70 million and the expected net cash
proceeds amount to €52 million. As the First Joint Venture has
reached its expanded investment target, this will be the last
closing with the First Joint Venture to include new parks.
- Advanced discussion with Allianz
Real Estate with regards to the expansion of the First Joint
Venture are progressing well and expected to be finalized in the
coming weeks
- On 14 May 2021, the Board of
Directors will propose to the Annual Shareholders Meeting to
distribute a gross dividend of €3.65 per share corresponding to a
total gross dividend amount of €75.1 million, with payment date
proposed for 25 May 2021 (to be confirmed by shareholders at the
AGM)
CONTACT DETAILS FOR INVESTORS AND MEDIA
ENQUIRIES
Martijn Vlutters (VP – Business Development & Investor
Relations) |
Tel: +32 (0)3 289 1433 |
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 in light
of 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 8.54 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 c. 300 employees today owns
and operates assets in 11 European countries directly and through
several 50:50 joint ventures. As of December 2020, the Gross Asset
Value of VGP, including the joint ventures at 100%, amounted to €
3.84 billion and the company had a Net Asset Value (EPRA NAV) of €
1.35 billion. VGP is listed on Euronext Brussels and on the Prague
Stock Exchange (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) LPM Joint Venture, i.e. LPM Holding B.V.,
the 50:50 joint venture between VGP and Roozen Landgoederen
Beheer
- VGP - Trading update - 14 May 2021 (EN)
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