23 February 2023, 7:00am, Antwerp, Belgium: VGP NV (‘VGP’ or ‘the Group’), today announces the results for the financial year ended 31 December 2022:
- Solid operating performance
- Strong rental activity with € 73.4 million of signed and renewed leases bringing the annualised committed leases to € 303.2 million[1], a 18.4% YoY increase
- 44 projects delivered representing a record 1,141,000 m² and € 9 million of annualised rental income.
- 26 projects under construction at year-end representing 814,000 m² and € 51.3 million of additional annual rent once fully built and let (>90% pre-let today[2])
- €5.9 million gross renewable energy income
- Operating profit of € 177.5 million before unrealized valuation losses of € 293 million[3], amongst others reflecting a like for like negative revaluation change of 7.33% on VGP’s portfolio[4] due to further increasing of market yields
- Cash recycled for € 347 million through disposals and closings with joint ventures, which have led to € 87.2 million realized gains on a record year of transactions with the joint ventures
- Progress on existing joint ventures:
- successfully executed the 10th closing as per January 17th with the First Joint Venture generating € 81 million in cash
- Advanced discussions on new JVs’ setup and closings in 2023 on various parts of the portfolio
- Year-end gearing ratio amounts to 34.4%, supported by € 1.1 billion of available liquidity
- Intention to propose to the AGM a distribution of a gross dividend of € 2.75 per share
Jan Van Geet, CEO of VGP, said: “I am proud of our performance in 2022, in terms of leasing activity it is one of our best years ever, and taking into account the economic and geopolitical challenges it is perhaps our best year thus far, having signed and renewed leases in amount of € 73.4 million. Whilst we have booked a devaluation of our portfolio in response to macroeconomic conditions, VGP realized € 87.2 million gains on all disposals to JV’s in ‘22, reflecting high double digit IRRs, in what was a record year of closings with our JV partners.”
Jan Van Geet continued: “Over the year we delivered a record number of >1.1 million square meters of high quality assets and, as a result, our net rent and renewable energy income increased with 51% at share to €107 million. With a total of € 303 million contracted rental income, our portfolio cash flow will continue to grow at a similar pace in 2023. Likewise, our efforts in building a renewable energy platform sees good momentum with +200 MWp of solar systems either already installed or under construction.”
Jan Van Geet concluded: “We approach 2023 with confidence as we see continued healthy occupier demand, start to see construction costs coming down, and our technical competence and ESG measures becoming increasingly important factors of distinction. We benefit from a strong cash position and are on the look-out for new opportunities which will become available in the present environment, yet, we remain vigilant due to prevailing uncertainties and are focused on profitable developments against attractive conditions. This was showcased during the delivery of VGP Park München last December, a project fitted to the highest technical standards and a plurality of sustainability measures, delivered significantly within budget. We count on the desirability of our locations and the agility of our teams to further strengthen our pipeline.”
[1] For Joint Ventures at 100%
[2] Calculated based on the contracted rent and estimated market rent for the vacant space
[3] € 394 million including JV’s at 100% and excluding realized gains of € 92.3 million
[4] Including Joint Ventures at 100%