VGP NV: Trading Update – People, Landbank, Leases: Building Tomorrow Today
19 Novembro 2020 - 2:00PM
VGP NV: Trading Update – People, Landbank, Leases: Building
Tomorrow Today
PRESS RELEASE Regulated Information
19 November 2020, 6:00pm, Antwerp (Berchem),
Belgium: VGP NV (‘VGP’ or ‘the Group’), a pan-European
provider of high-quality logistics and semi-industrial real estate,
today published its trading update for the first 10 months of
2020:
- Robust operating performance
- Strong leasing growth across the portfolio resulting in €34.6
million new signed and renewed rental income, bringing total
annualized signed rental income up 13.5% year-to-date to €176.0
million (including joint ventures at 100%)
- 31 projects under construction, representing 743,000 m2 or
€48.1 million in annual rent once fully built and let. The
portfolio under construction is today 79.9% pre-let
- 23 projects delivered in 2020 year-to-date representing 472,000
m2, bringing the total completed portfolio (incl JVs) to 2,380,000
m2
- Land bank has continued to expand
- Acquisition of 1.58 million m2 of new land year-to-date and a
further 2.59 million m2 committed subject to permits
- Total land bank acquired and secured of 7.48 million m2 which
supports 3.57 million m2 of future lettable area (+28.4%
year-to-date)
- Strengthened capital and liquidity position
- Successful joint venture closings with VGP European Logistics
and VGP European Logistics 2 which generated in total €318 million
of gross cash proceeds
- Raised €109 million of gross cash proceeds through a placement
of 929,153 treasury shares on 3 September 2020
VGP’s Chief Executive Officer, Jan Van
Geet, said: “I believe that over the past months we have
considerably reinforced the fundamentals on which we are
constructing our future. Not only were we able to attract new
talented people to help us with our ambitious growth plans, I am
also particularly pleased with the growth and quality of our land
bank across the countries in which we are active.
For all our new trophy locations – such as for
instance our new park in Giessen, Germany, where we acquired 32 ha
earlier this year or Moerdijk, Netherlands, where, together with a
strong local partner, we will cooperate with Port of Moerdijk to
develop a 140 ha park which has been irrevocably permitted –
we already note a lot of tenant interest.”
Jan Van Geet concluded: “Furthermore, we expect
a strong last two months of the year based on our current pipeline
driven by robust and broad-based leasing activity across sectors,
reflecting an acceleration of structural trends, the adoption of
e-commerce and the need for higher levels of inventory. As we
delivered several projects over the last few months this strong
demand already allowed us to replenish our mostly pre-let
development pipeline with new projects, including the start of
works for a new iconic park in Bratislava and, amongst others, the
significant expansion of our parks in Göttingen, Laatzen and
Magdeburg in Germany, Nijmegen in The Netherlands, San Fernando de
Henares in Spain and Brašov in Romania.”
OPERATING HIGHLIGHTS
Lease operations
- Signed and renewed rental income of € 34.6 million year-to-date
mainly driven by 437,000 m² of new lease agreements signed,
corresponding to € 24.6 million of new annualised rental
income1
- During the period for a total of 187,000 m² of lease agreements
were renewed corresponding to € 10.1 million of annualised rental
income of which 149,000 m² (€ 8.0 million) related to the portfolio
of the joint ventures2. Renewed contracts included various
prolongations by 1-5 years
- Terminations represented a total of € 3.5 million or 68,000 m²,
of which 62,000 m² within the joint ventures’ portfolio which has
since largely been re-let (joint ventures’ portfolio is 99.4%
let)
- The signed annualised leases represent € 176.0 million3
(equivalent to 3.03 million m² of lettable area), a 13.5% increase
since December 2019
Implications of Covid-19
- VGP’s business is progressing well in 2020 despite the Covid-19
pandemic. The entire VGP team has been operational throughout the
crisis with full access to central systems. None of the VGP
workforce has been furloughed and the Group has not taken any
government support
- The lockdown measures implemented by governments across Europe
to combat the spread of the virus resulted in widespread disruption
across many sectors of the economy. In some cases, this has
impacted the operations and cash flows of VGP's customers, which
has in some limited cases affected the level of rent we were able
to collect from such customer. VGP has worked constructively
to support customers facing genuine cash flow challenges
- Rental collection has continued to progress well with rent
collection since start of the Covid-19 pandemic at 99.6% of total
rent billed
- All construction activities currently run on schedule
Development activities
- Strong leasing activity has helped us secure further pre-let
developments and, as a result, during H2 2020 the construction
works for 9 additional projects have been initiated, including the
start of works for the first building in VGP Park Bratislava
(23,000 m2 pre-let) and significant expansions of VGP Park
Göttingen (extra 30,000 m2 pre-let), VGP Park Laatzen (extra 71,000
m2 pre-let), VGP Park Magdeburg (extra 41,000 m2 partially
pre-let), VGP Park Nijmegen (43,000 m2 pre-let) and VGP Park San
Fernando de Henares (extra 11,000 m2 pre-let)
- In total the group has 31 projects under construction
representing 743,000 m2 of future lettable area and expected to
generate € 48.1 million of annual rent once fully built and leased
of which today 79.9% is pre-let (70.3% pre-let as of 31st Oct)
- Geographical split of projects under construction: 61% is
located in Germany, 9% Czech Republic, 8% in Spain, 8% in Romania,
6% in The Netherlands, 3% in Italy, 3% in Slovakia and 2% in
Hungary
- Delivery of 23 projects during the first ten months of in total
472,000 m2 of lettable area representing € 25.7 million of
annualized committed leases. These buildings are 93.7% let as of
31st October which we expect to be close to 100% by year-end taking
into consideration current lease negotiations
- Geographical split of the buildings delivered year to date: 45%
is located in Germany, 23% in The Netherlands, 14% in Spain, 8% in
Czech Republic, 5% in Romania, 4% in Slovakia and 1% in Italy
Land bank
- We have acquired 1.58 million m2 of land during the first ten
months of 2020 bringing the total owned and committed land bank to
7.48 million m2 supporting 3.57 million m2 of future lettable
area. This includes VGP Park Gießen Am alten Flughafen where
we acquired 317,000 m2 earlier this year and includes a commitment
to purchase 710,000 m2 of land in Moerdijk, Netherlands which we
will develop through a joint venture with a local partner, and
where we will cooperate with Port of Moerdijk to develop our park
as part of a 140 ha park which has been irrevocably permitted
- A further 1.17 million m2 of land plots identified which are
under exclusive negotiation and have a development potential of
0.52 million m2 of future lettable area
Renewable Energy
- First solar roof project delivered (4.8MWp) in VGP Park
Nijmegen and a further 20 projects under construction (22.8MWp)
representing a committed investment of €17 million
year-to-date
- A further 30 projects identified representing >50MWp are in
the pipeline which we expect to be able to develop within the
coming 2 years
Corporate Responsibility
- As we work towards an update of our Sustainable Development
Goals (SDGs) for 2021 onwards we have conducted a scope 1 and 2
emission analysis for FY2019 in compliance with PAS 2060 standard
and GHG protocol. Separately, we have completed CDP reporting
standards for FY2019
- In parallel we are preparing a strategy to be CO2-neutral as a
Group within 5 years
Capital and liquidity position
- On 16 November 2020, we announced two successful closings
between VGP and two of our 50:50 joint ventures with Allianz Real
Estate, VGP European Logistics and VGP European Logistics 2.
The two closings combined represent a value of € 424
million, generated gross cash proceeds of €318 million and
comprised 19 logistic buildings including 9 buildings in 5 new VGP
parks and another 10 newly completed logistic buildings which were
developed in parks previously transferred. The 19 buildings
are located in Germany (6), Spain (4), the Czech Republic (3),
Netherlands (2), Italy (2), Romania (1) and Slovakia (1). The
transaction with VGP European Logistics was its 7th closing and
amounts to a value of €166 million with gross cash proceeds
of €127 million. The closing with VGP European Logistics 2 was its
2nd closing and amounts to a value of €258 million4 with gross cash
proceeds of €191 million.
- On 3 September 2020 we announced the successful placement of
929,153 treasury shares (corresponding to 4.51% of the outstanding
share capital). The shares were placed at a price of €117.50 per
share, resulting in €109.18 million in gross cash proceeds.
The transaction saw significant demand, particularly from our
long-term institutional shareholders, resulting in an
oversubscription of nearly three times at the placement price. The
price represented a discount of 4.16% compared to the last traded
price
- The cash proceeds of these transactions are being applied
towards the further expansion of the development pipeline i.e.
acquisition of new development land and financing of existing
projects under construction and new projects which will be
started-up in the coming period
- The Group has long-term revolving credit facilities for a total
amount of €150 million, which as of today were undrawn
CONTACT DETAILS FOR INVESTORS AND MEDIA
ENQUIRIES
Martijn Vlutters (VP – Business Development & Investor
Relations) |
Tel: +32 (0)3 289 1433 |
Petra Vanclova (External Communications) |
Tel: +42 0 602 262 107 |
Anette NachbarBrunswick Group |
Tel: +49 152 288 10363 |
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking
statements. Such statements reflect the current views of management
regarding future events, and involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. VGP is providing the information in this press release
as of this date and does not undertake any obligation to update any
forward-looking statements contained in this press release in light
of new information, future events or otherwise. The information in
this announcement does not constitute an offer to sell or an
invitation to buy securities in VGP or an invitation or inducement
to engage in any other investment activities. VGP disclaims
any liability for statements made or published by third parties and
does not undertake any obligation to correct inaccurate data,
information, conclusions or opinions published by third parties in
relation to this or any other press release issued by VGP.
ABOUT VGP
VGP is a pan-European developer, manager and
owner of high-quality logistics and semi-industrial real estate.
VGP operates a fully integrated business model with capabilities
and longstanding expertise across the value chain. The company has
a development land bank (owned or committed) of 7.48 million m² and
the strategic focus is on the development of business parks.
Founded in 1998 as a family-owned real estate developer in the
Czech Republic, VGP with a staff of over 230 employees today owns
and operates assets in 12 European countries directly and through
its joint ventures VGP European Logistics, VGP European Logistics 2
and VGP Park München. As of June 2020, the Gross Asset Value of
VGP, including the joint ventures at 100%, amounted to €3.23
billion and the company had a Net Asset Value (EPRA NAV) of €1,079
million. VGP is listed on Euronext Brussels and on the Prague Stock
Exchange (ISIN: BE0003878957).
For more information, please visit:
http://www.vgpparks.eu
1 Of which 343,000 m² (€ 18.4 million)
related to the own portfolio
2 Joint ventures refers to VGP European
Logistics, VGP European Logistics 2 and VGP Park München, All
three 50:50 joint ventures with Allianz Real Estate
3 For joint venture at 100%
4 The transaction value is composed of the
purchase price for the completed income generating buildings and
the net book value of the development pipeline which is transferred
as part of a closing but not yet paid for by the Joint Venture.
- VGP - Trading update - November 2020 (EN)
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