Industrial and logistics developer VGP recorded a net profit of €203.8 million in the first half of 2021. VGP announced its financial and operational results for H1 2021.
Key results
- As of 30 June 2021, a total of 1,127,000 sqm is under construction through 42 projects representing €69.4 million in additional annual rent once fully built and let (81.3% pre-let)
- 426,000 sqm of projects started up in 2021 and a further 386,000 sqm are expected to be started up in the coming months (total construction portfolio incl. to be started up 78% pre-let)
- 8.56 million sqm land bank-owned or committed (+11.9% YTD)
- Total portfolio value increased to €4.48 billion1 (+16.6%YTD)
- Total signed rental income grew with 21.9% over the first 8 months of 2021 to €225.7 million as of 31 August 20212
- Strong delivery pipeline of 550,000+ sqm expected for H1 2021
- Anticipated capex roll-forward is expected to be fully covered by net cash proceeds from joint venture closings
- Advanced discussions with Allianz regarding the expansion of partnership through the launch of fourth joint venture ongoing; first joint venture has reached investment target
- Strong cash position with €469 million available on the balance sheet and gearing ratio at 30.4% as of 30 June 2021 following successful €600 million green bond issue
VGP’s Chief Executive Officer, Jan Van Geet, said: “The breadth and depth of client engagement witnessed during the first 8 months of 2021 – stronger than any prior year, buoyed by strong market fundamentals on the foundation of our prime and ready-to-build land bank. This has resulted in several iconic very long-term new lease contracts getting signed. The conversion of the land bank into yielding assets for this period alone reflects a portfolio growth of well over €1 billion once completed.”
Jan Van Geet added: “We are continuing to expand our Corporate and Social Responsibility agenda, making each of our countries, assets and over 300 employees’ active contributors to our CSR objectives. Whilst our photovoltaic roll-out continues above plan – with 133MWp in solar panel installations underway we will soon produce sufficient solar energy to support 37,000 households. On our brownfield sites in Giessen and Wiesloch, Germany, we are now also planning our first large built-to-suit project earmarked to receive the DGNB KlimaPositiv (CO2 neutral) certification.”
Jan Van Geet concluded: “Whilst I am very proud of what has been achieved, at the same time we are looking forward to the ambitious journey that lies ahead. We have several more prestigious projects in our pipeline and we are working hard on potentially starting up new countries both in East and Western Europe. The VGP family keeps growing, aiming to be diverse and inclusive, yet adhering to our core house principles of trying hard to deliver exceptional client service in partnership with local authorities and communities, whilst acting with integrity and responsibility.”
