VGP NV has announced results for the first half of 2024. Compared to the first half of 2023, profit before tax has increased by 218%. The company has also concluded a record volume of new rental contracts.
Profit before tax reached €154.6 million. This includes €33 million in net rental and renewable energy income, €15.7 million in joint venture management fee income, and €99.1 million in net portfolio valuation gains.
During the year's first half, leases worth €45.6 million were signed and renewed, bringing the total annual rental income to €384.7 million (a 9.7% year-on-year increase). New contracts reached a record €28.8 million, representing a year-on-year increase of 47% compared to H1 2023.
The 34 projects had 835,000 sqm under construction as of 30 June 2024, representing an additional annual rent of €56.8 million once fully built and leased. The share of pre-leases amounts to 70.1% following the conclusion of several significant lease agreements. Properties under construction for more than six months are 74.2% pre-leased.
During the first half of 2024, 8 projects with a total area of 264,000 sqm were handed over, which were 100% let and represented a rental income of €17.2 million. The completed properties represent 5,632,000 sqm, i.e. 229 buildings, and are 99% leased with an average age of just 4 years. Following the acquisition of 375,000 sqm of new development land and the sale of VGP's stake in Development Joint Venture LPM in 1H2024, the total land area is 8.5 million sqm with a development potential of 3.7 million sqm.
In February VGP drew €135 million from the European Investment Bank credit facility. VGP started the second half of 2024 with several new leases. The company is negotiating leases both for new projects and existing assets. VGP plans major steps in the leasing and development of its large brownfield projects, such as Rüsselsheim near Frankfurt and the acquisition of land within the VGP group in several countries. The company was founded in 1998 as a Belgian family real estate developer in the Czech Republic.
