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a Transformative Year and a Significantly Stronger Platform Provides Foundation for a Good 2021 Brussels Stock Exchange:VGP

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26 February 2021, 7:00am, Antwerp (Berchem), Belgium: VGP NV (‘VGP’ or ‘the Group’), a European supplier of high-quality logistics and semi-industrial actual property, as we speak proclaims the outcomes for the monetary 12 months ended 31 December 2020: 

  • Report web revenue of €370.9 million, an 80.4% YoY improve
  • Robust enterprise progress throughout the portfolio
    • Signed and renewed rental earnings of €45.2 million, bringing complete signed rental earnings to € 185.2 million, a 19.5% YoY improve
    • A document 33 buildings with 869,000 m² below development at year-end
    • Land financial institution expanded to 7.65 million m² – a 23.2% YoY improve
    • A document 27 initiatives delivered with 531,000 m² of lettable space, representing €29.1 million of annualised dedicated leases (whole accomplished portfolio is 98.5% let)
  • Restricted affect Covid-19: practically all due funds obtained on time and really restricted reprofiling
  • Launched third three way partnership for VGP Park München and accomplished 4 profitable three way partnership closings for a complete worth of €666 million leading to €405.6 million web money proceeds
    • First three way partnership expanded to a €2 billion web asset worth goal and discussions close to an extra growth by a brand new three way partnership are underway
  • 12 months-end gearing ratio lowered to 25.2%, supported by two profitable share placements
  • Intention to suggest to the Annual Assembly of Shareholders a distribution of a gross dividend of
    € 75 million which equates to € 3.65 per share – a 24.2% YoY improve

VGP’s Chief Government Officer, Jan Van Geet, stated: “The previous 12 months was transformative for VGP in some ways.  Regardless of unexpected challenges, we created an fairness base progress from €700 million final 12 months to €1.3 billion as we speak as we outpaced many tendencies and considerably elevated the variety of principally pre-let initiatives below development pushed by sturdy lease progress and enabled by money recycling with 4 three way partnership closings and two profitable share placements. Wanting forward at 2021, we’re seeing the identical sturdy working tendencies proceed, leaving us satisfied that this will also be an excellent 12 months.”

Jan Van Geet continued: “We now have kicked off a number of iconic initiatives up to now 12 months together with our new parks in Laatzen (Hanover) and Bratislava.  Moreover, now we have a number of milestone initiatives within the pipeline together with VGP Park Moerdijk – the most important improvement undertaking in The Netherlands – and increasingly more brownfield initiatives together with in Giessen the place we acquired a 32-hectare former US army airfield and in Wiesloch, Heidelberg, the place 13 hectares might be redeveloped on the historic web site of Heidelberger Druckmaschinen AG.”

Jan Van Geet concluded: “We now have strengthened our groups throughout the board, together with Final Mile logistics and renewable vitality experience, which is able to improve our product choices and deepen our engagement with our purchasers. We now have additionally continued to spend money on our communities – for instance, by our contribution to the primary 16 initiatives recognized by the VGP Basis. I wish to finish by thanking our colleagues and companions, who shortly tailored to the pandemic and safely helped our current tenants, the communities through which we function and by guaranteeing development initiatives had been delivered to our purchasers on time.”

FINANCIAL AND OPERATING HIGHLIGHTS

Robust new leasing exercise continued

  • Signed and renewed rental earnings of € 45.2 million pushed by 625,000 m² of recent lease agreements signed (similar to € 34.0 million of recent annualised rental earnings), mixed with 209,000 m² of lease agreements renewed (similar to € 11.3 million of annualised rental earnings)
  • The brand new leases signed are geographically effectively unfold: Germany € 13.3 million (39%), the Netherlands € 5.9 million (17%), Spain € 3.9 million (12%), Slovakia € 3.0 million (9%), Romania € 2.4 million (7%) and the rest in Italy, Czech Republic and Latvia (every 5%) and Hungary (1%)
  • Terminations represented a complete of € 3.7 million or 71,000 m2 (of which 65,000 m2 inside the Joint Ventures’ portfolio)
  • The full signed lease agreements signify € 185.2 million1 annualised dedicated rental earnings (equal to three.22 million m² of lettable space), a 19.5% improve since December 2019

Report degree of development exercise

  • Throughout 2020 we delivered a document 27 initiatives representing 531,000 m² of lettable space, which equates to €29.1 million of annualised dedicated rental earnings
  • At year-end we had a document 33 initiatives below development or 869,000 m² of future lettable space, which, as soon as delivered and totally let, will generate €55.2 million of annualised dedicated rental earnings; the portfolio below development at year-end was 79% pre-let2

Implications of Covid-19

  • The complete VGP workforce has been operational all through the disaster with full entry to central techniques. Not one of the VGP workforce has been furloughed and the Group has not taken any authorities assist
  • The lockdown measures applied by governments throughout Europe to fight the unfold of the virus resulted in widespread disruption throughout many sectors of the economic system. In some instances, this has impacted the operations and money flows of VGP’s clients, which has in some restricted instances affected the extent of lease we had been in a position to gather from such buyer. VGP has labored constructively to assist clients dealing with real money circulation challenges by providing to reschedule rental funds or reprofiling
  • Rental assortment has continued to progress effectively with lease assortment since begin of the Covid-19 pandemic at 99.7% of complete lease billed

Report land financial institution growth

  • Acquisition of two.57 million m² of improvement land and an extra 2.2 million m2 dedicated topic to permits which brings the whole land financial institution (owned and dedicated) to 7.65 million m² (a 23.2% web improve since December 2019), which helps 3.60 million m² of future lettable space
  • Included inside this land financial institution is greater than 450,000 m2 gross lettable space associated to VGP Park Moerdijk.  On 26 November 2020, VGP entered right into a partnership with Roozen Landgoederen Beheer so as to develop Logistics Park Moerdijk (“LPM”) along with the Port Authority Moerdijk on a 50:50-basis.  The full improvement land of LPM quantities to circa 140ha with a complete improvement potential of circa 900,000 m² of lettable space
  • Along with the land owned and dedicated, negotiations are underway for an extra 1.49 million m² of recent land plots which have a improvement potential of 0.66 million m² of lettable space
  • Greater than in prior years, now we have acquired a number of brownfield initiatives together with our new undertaking in Giessen the place we acquired a 32-hectare former US army airfield and in Heidelberg the place 13 hectares might be redeveloped on the web site of Heidelberger Druckmaschinen AG. Brownfield initiatives are being thought-about on account of their often-strategic location within the neighborhood of metropolitan areas and because it helps nature conservation.  We’re evaluating a number of different potential brownfield initiatives

Important strengthening of the workforce

  • The workforce expanded to >260 FTE equal as we employed 40 extra folks throughout the group
  • We now have strengthened our groups throughout the board, together with Final Mile logistics and renewable vitality specialists, which is able to improve our product choices and deepen our engagement with our purchasers

Steadiness sheet considerably strengthened

  • In June 2020, VGP and Allianz Actual Property entered into a brand new 50:50 three way partnership for the event of VGP Park München. That is the third three way partnership with Allianz Actual Property
  • The managerial and governance setup of the brand new partnership is just like the primary two joint ventures with VGP serving the brand new three way partnership as its sole asset, property and improvement supervisor. Opposite to the 2 current joint ventures which consider the acquisition of income-generating property developed by VGP, this new three way partnership will initially be focussed on the event of VGP Park München
  • Additionally, 4 profitable closings with the joint ventures had been accomplished for a complete gross asset worth of €666 million.  The primary three way partnership performed a closing in October 2020 for €166 million and the second three way partnership performed a closing in November 2020 for €258 million.  The third three way partnership efficiently accomplished its seed closing in June 2020 for €187 million and closed a primary transaction of €55 million in December 2020.  These 4 transactions mixed resulted in €405.6 million web money proceeds
  • On 21 April 2020 VGP efficiently accomplished an €200 million providing of recent shares (equal to 10.8% of shares excellent) at a reduction of 4.6% in comparison with the final traded value and on 3 September 2020 VGP efficiently accomplished an providing of 929,153 current shares (equal to €109 million or 4.5% of the shares excellent) at a reduction of 4.2% in comparison with the final traded value
  • These mixed proceeds and current unutilised long-term revolver services present VGP with vital headroom to reinvest in its improvement pipeline and proceed to develop the enterprise.  Gearing3 on the finish of 2020 stood at 25.2% offering vital leverage headroom

Important progress in renewable vitality energy era

  • VGP Renewable Power N.V. has been setup by the Group in 2020 to broaden the power of the Group to help our purchasers in making their companies extra sustainable in a cheap method by providing inexperienced vitality, good vitality administration and facilitate our purchasers of their transition in direction of a inexperienced truck and automobile fleet
  • A complete PV energy era capability of 42.5MWp is presently put in or below development by 36 initiatives. That is being realised by a €16.2 million funding to this point. As well as, the pipeline in the intervening time equates to a further energy era capability of 53.3 MWp

Progress in direction of our Sustainable Growth Objectives

  • We now have made vital progress in direction of our Sustainable Growth Objectives and have launched new targets for 2021 together with a goal to be web carbon impartial on our footprint for scope 1 and scope 2 emissions in compliance with PAS 2060 by 2025 and adjust to CDP local weather change disclosure

Outlook 2021

  • It’s with confidence that we take a look at 2021 and past. Growth actions ought to proceed to function at elevated ranges throughout 2021 supported by strong demand from potential tenants as we anticipate technological modifications and e-commerce to proceed to be an vital driver for demand throughout our platform. Our current land financial institution offers the muse for progress over the approaching years and VGP expects to have the ability to proceed increasing its rental earnings and property portfolio by the completion and start-up of recent constructing initiatives in 2021
  • Give attention to growth of service providing by VGP Renewable Power, by elevated manufacturing of inexperienced vitality and facilitating our purchasers of their transitioning in direction of inexperienced vitality
  • Lastly, we anticipate in the middle of 2021 to have the ability to announce the small print of an extra growth of our first three way partnership with Allianz Actual Property past the €2.0 billion expanded goal and we anticipate to have the ability to conduct a number of closings with the joint ventures in the middle of this 12 months

KEY FINANCIAL METRICS

Operations and outcomes 2020 2019 Change (%)
Dedicated annualised rental earnings (€mm) 185.2 155.0 19.5%
IFRS Working Revenue earlier than tax (€mm) 419.4 252.4 66.2%
IFRS web revenue (€mm) 370.9 205.6 80.4%
IFRS earnings per share (€ per share) 18.58 11.06 68.0%
Dividend per share (€ per share) 3.654 2.935 24.6%
Portfolio and stability sheet 2020 2019 Change (%)
Portfolio worth, together with Joint Ventures at 100% (€mm) 3,843 2,771 38.7%
Portfolio worth, together with Joint Ventures at share (€mm) 2,468 1,897 30.1%
Occupancy ratio of standing portfolio (%) 98.5 99.8
EPRA NTA6 per share (€ per share) 65.78 39.89 64.9%
IFRS NAV per share (€ per share) 63.44 37.66 68.5%
Web monetary debt (€mm) 560.9 604.2 (7.2)%
Gearing7 (%) 25.2 37.2

CONFERENCE CALL FOR INVESTORS AND ANALYSTS

VGP will host a convention name at 10:30 (CET) on 26 February 2021
The convention name might be accessible on:

  • Belgium: 0800 58228 (toll free) / +32 (0)2 404 0659
  • UK: 0800 358 6377 (toll free) / +44 (0)330 336 9105
  • US: 888 394 8218 (toll free) / +1 323 701 0225
  • Affirmation Code: 1934802

A presentation is out there below Monetary & Working Outcomes by VGP’s Investor Relations web site.:
www.vgpparks.eu/en/traders/publications/   

FINANCIAL CALENDAR

Annual Report 2020 13 April 2021
First quarter 2021 buying and selling replace 14 Might 2021
Common assembly of shareholders 14 Might 2021
Dividend ex-date 21 Might 2021
Dividend cost date 25 Might 2021
Half 12 months outcomes 2021 27 August 2021
Third quarter 2021 buying and selling replace 19 November 2021

CONTACT DETAILS FOR INVESTORS AND MEDIA ENQUIRIES

Martijn Vlutters
(VP – Enterprise Growth & Investor Relations)
Tel: +32 (0)3 289 1433
Petra Vanclova
(Exterior Communications)
Tel: +42 0 602 262 107
Anette Nachbar
Brunswick Group
Tel: +49 152 288 10363

ABOUT VGP

VGP is a pan-European developer, supervisor and proprietor of high-quality logistics and semi-industrial actual property. VGP operates a totally built-in enterprise mannequin with capabilities and longstanding experience throughout the worth chain. The corporate has a improvement land financial institution (owned or dedicated) of seven.65 million m² and the strategic focus is on the event of enterprise parks. Based in 1998 as a family-owned actual property developer within the Czech Republic, VGP with a employees of over 260 workers as we speak owns and operates property in 12 European international locations immediately and thru a number of 50:50 joint ventures. As of December 2020, the Gross Asset Worth of VGP, together with the joint ventures at 100%, amounted to € 3.84 billion and the corporate had a Web Asset Worth (EPRA NAV) of € 1.35 billion. VGP is listed on Euronext Brussels and on the Prague Inventory Change (ISIN: BE0003878957).

For extra info, please go to: http://www.vgpparks.eu  

Ahead-looking statements:  This press launch might include forward-looking statements. Such statements mirror the present views of administration relating to future occasions, and contain identified and unknown dangers, uncertainties and different components that will trigger precise outcomes to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. VGP is offering the knowledge on this press launch as of this date and doesn’t undertake any obligation to replace any forward-looking statements contained on this press launch contemplating new info, future occasions or in any other case. The knowledge on this announcement doesn’t represent a proposal to promote or an invite to purchase securities in VGP or an invite or inducement to have interaction in another funding actions.  VGP disclaims any legal responsibility for statements made or printed by third events and doesn’t undertake any obligation to right inaccurate information, info, conclusions or opinions printed by third events in relation to this or another press launch issued by VGP.


1 For Joint Ventures at 100%

2 Calculated based mostly on the contracted lease and estimated market lease for the vacant house.

3 Calculated as Web debt / Whole fairness and liabilities

4 Proposed dividend per share to be accredited by the Annual Common Assembly of Shareholders of 14 Might 2021.

5 Proposed dividend per share over FY2019 was €3.25 per share; based mostly on new shares issued this was adjusted to €2.93 per share

6 EPRA Web Tangible Property. Different metrics, EPRA Web Reinstatement Worth and Web Disposal Worth might be present in notice 12.2

7 Calculated as Web debt / Whole fairness and liabilities

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