14 November 2019
VGP NV (‘VGP’ or ‘the Group’), a leading European provider of high-quality logistics and semi-industrial real estate, today published a trading update for the first ten months of 2019:
- Robust operating performance driven by record new leases
- Strong leasing growth across the portfolio resulting in record €39.3 million net increase signed and renewed lease agreements, bringing total annualized rental income to €143.6 million (+37.9% year-to-date) and increasing the average lease term of the portfolio to 8.8 years (vs. 7.8 at Dec-18)
- A record of 34 projects under construction, representing 705,000 m2 or €37.3 million in additional annual rent once fully built and let. The portfolio under construction, including projects to be started up in the next six months is 75% pre-let
- 16 projects delivered in 2019 year-to-date representing 255,000 m2 (100% occupancy)
- Replenished land bank to secure future growth
- Maintained pipeline through 2.50 million m2 of new land bought and a further 2.13 million m2 committed subject to permits
- Total land bank acquired and secured of 6.18 million m2 which supports 2.76 million m2 of future lettable area
- Continued cash recycling and strengthening of funding base
- Successful first closing with VGP European Logistics 2 joint venture on 31 July allowed recycling of €96 million of gross cash proceeds
- Expect sixth closing for VGP European Logistics joint venture at the end of November 2019, with anticipated gross cash proceeds of circa € 130 million
- Enhanced sustainability targets set for 2020 onwards with 100% of new developments to be BREEAM certified ‘Very Good’ or equivalent and emphasis on increasing renewable energy generation across the group