Solid Growth, Record Deliveries and

3 November 2022, 7:00 am, Antwerp, Belgium: VGP NV (‘VGP’ or ‘the Group’) as we speak printed its buying and selling replace for the primary ten months of 2022, by which, in opposition to a background of risky macro-economic and geopolitical uncertainties VGP recorded a sturdy working efficiency:

• €53.1 million of latest and renewed leases signed year-to-date (of which €21.3 million throughout the previous 4 months) bringing the annualised dedicated leases for the yr thus far to €291.0 million¹ (+ €34.9 million in comparison with 31 December 2021) (+13.6% YTD and +21.0% y-o-y)
• Property portfolio² just about totally let with occupancy at 99.6% as of 31 October 2022 (in comparison with 99.4 % as at 31 December 2021)
• Based on the present inflation, we anticipate our already earnings producing lease roll to develop by 7% (€17 million²) via indexation alone in 2023
• 37 initiatives underneath building representing 1,253,000 m² (of which 16 initiatives totalling 346,000 m² began up throughout the yr) and €82.8 million in extra annual lease as soon as totally constructed and let. These buildings underneath building are 93.7% pre-let
• 28 initiatives delivered throughout the yr representing 576,000 m², or € 31 million in extra annual lease (of which 11 initiatives totalling 240,000 m² delivered throughout the 2H 2022) and an extra 460,000 m² estimated for supply within the the rest of 2022
• Photovoltaic capability grew exponentially y-o-y to 120.9MWp operational or underneath building and with an extra 67.9MWp being deliberate. Once constructed, the numerous photovoltaic roll-out – which is already producing €3.7 million revenues YTD – will match our 2021 tenant electrical energy consumption. This contributed to the three star GRESB developer ranking and elevated the portfolio compliance on the Paris-aligned 1.5–diploma decarbonisation pathway till the yr 2045 which strikes us considerably nearer to a 1.5-degree prepared portfolio underneath CRREM
• Continuing robust relationship with Allianz Real Estate evidenced by:

            (i)      Second closing of VGP Park München three way partnership with Allianz Real Estate on monitor for December 2022 with proceeds of circa €70 million to be anticipated;

            (ii)     Including the upcoming closing for VGP Park München the whole JV closing in 2022 will quantity to an annual file of greater than €800 million;

            (iii)    Additional closing anticipated in Q1 2023 with the First Joint Venture for a complete GAV of greater than € 100 million. The transaction is at the moment underneath due diligence;

            (iv)    Profit distribution from the joint ventures gaining momentum with revenue distribution yr thus far totalling €28.2 million with an extra ca. €30 million revenue distribution to be acquired throughout November 2022

• 1,925,000 m² of latest growth land acquired throughout the yr (of which 378,000 m² throughout 2H 2022) and 696,000 m² of growth land deployed throughout the yr to help the brand new developments began up throughout the yr. Total secured growth land financial institution stand at 10,683,000 m² on the finish of October 2022 representing a growth potential of circa 5 million m²

VGP’s Chief Executive Officer, Jan Van Geet: “VGP is having a very solid year in terms of growth and cash generation and an absolute record year in terms of completions of long-let projects to our clients: now these rents turn effective this generates a significant boost in our recurring revenue.”

Jan Van Geet added: “These record deliveries have made evident once again that VGP’s DNA is of course closely linked to the constant development of new projects. As we look forward, we see a significant need for high quality new developments, driven by many factors, as the world of tomorrow is one of sustainability and efficiency driven by smart technologies and artificial intelligence. I believe that we have only seen a fraction of the efficiency potential yet, more innovations to optimise energy and operational efficiency are inevitably going to transform our industry in the years ahead of us. I do believe that our team is well set-up to deliver those highly complex, tailor-made, and sustainable solutions to the highest quality matching future customer needs, and above all that it is set-up to do that in all the countries we are active in in a consistent way. This is critical as our long-term development activities will always be driven by our ability to meet such client demand and our profitability looking forward.”

Jan Van Geet concluded: “It is equally important to point out to the fact that, as an economy does not develop in a linear way we have, besides the developer gains, always built different sources of recurring income – besides rental income and income from our renewable energy sources also facility and property management fees and asset management fees. These recurrent income streams, boosted by the record delivery of buildings over the past years are now becoming a substantial part of our income and give us ample room to pay out dividends in the future and strengthen substantially VGP’s balance sheet on a standalone basis. Indeed, we have always deliberately chosen to keep recurring income from our assets partly on our balance sheet ourselves, partly through JVs we manage. Furthermore as a result, combined with the existing cash on balance sheet, undrawn RCFs and planned Munich joint venture closing we have enough means available to cover our commitments well beyond 2023.”

OPERATING HIGHLIGHTS – 10M 2022

Lease actions and resilience

• Signed and renewed rental earnings of €53.1 million pushed by 721,000 m² of latest lease agreements signed (comparable to €40.3 million of latest annualised rental earnings³), mixed with 241,000 m² of lease agreements renewed (comparable to €12.7 million of annualised rental earnings⁴) and €3.7 million of indexation.
• Of the signed lease agreements in 2022 over half the dedicated lease comes from Logistics (53%) (of which 40% is basic logistics, 13% is non-food retail logistics and 1% is food-retail logistics), adopted by E-commerce (21%) and Light industrial (15%) (of which 4% is automotive associated trade) and 10% is outlined in one other class.
• Germany was the primary driver of the expansion in dedicated leases with €17.4 million (40%) of latest leases⁵ signed throughout the yr (of which € 5.8 million on behalf of the Joint Ventures⁶). The different nations additionally carried out very nicely: new leases being signed in Romania +€ 4.3 million (10%) (€0.3 million on behalf of JV portfolio), Spain +€4.0 million (9%) (€2.6 million on behalf of JV portfolio), Netherlands +€3.9 million (9%) (€3.4 million on behalf of the JV portfolio), Slovakia +€3.6 million (9 %) (€0.9 million on behalf of JV portfolio), Czech Republic +€ 3.4 million (8%) (€2.5 million on behalf of JV portfolio), Hungary +€2.8 million (6%) (€0.1 million on behalf of JV portfolio), Austria +€2.4 million (5%) (€0.1 million on behalf of JV portfolio), Latvia +€0.7 million (2%) (personal portfolio), Italy +€1.0 million (2%) (€0.4 million on behalf of JV portfolio) and Portugal +€0.6 million (1%) (personal portfolio).
• Terminations represented a complete of €9.1 million or 170,000 m² (of which 118,000 m² inside the Joint Ventures’ portfolio). VGP has been capable of launch premisses up to now at general increased rental costs. As an instance, in Germany, VGP’s largest market, VGP was capable of enhance as such its common rental worth per sq. meter by 15%.
• The whole signed lease agreements elevated to €291.0 million annualised dedicated rental earnings (equal to circa 5.0 million m² of lettable space) from €256.1 million as of 31 December 2021. A 13.6% enhance year-to-date.
• The signed dedicated lease agreements of the personal portfolio characterize a complete of two,038,000 m² of lettable space (€116.5 million of annualised dedicated leases) with the weighted common time period of the annualised dedicated leases standing at 9.8 years⁷ as on the finish of October 2022.
• The signed dedicated lease agreements of the Joint Ventures’ portfolio characterize a complete of two,971,000 m² of lettable space (€174.5 million of annualised dedicated leases) with the weighted common time period of the annualised dedicated leases standing at 7.3 years⁸ as on the finish of October 2022.
• The weighted common time period of the annualised leases of the mixed personal and Joint Ventures’ portfolio stood at 8.3 years⁹ on the finish of October 2022 in comparison with 8.6 years on the finish of December 2021.
• The Annualised Committed Leases are composed of €207.7 million lease agreements which have already develop into efficient as of 31 October 2022 and €83.3 million signed lease agreements which can develop into efficient sooner or later. The breakdown as to when the Annualised Committed Leases will develop into efficient is as follows:

• Virtually all lease agreements embrace indexation clauses, of which the bulk are uncapped, making the property portfolio nicely protected in opposition to inflation. Most of the present leases are listed within the first months of the yr with the year-to-date indexation totalling €3.7 million of lease equal. It is predicted that this quantity will quickly ramp up when the present excessive inflation ranges can be charged via to tenants throughout the first half of 2023.
• Based on the lease agreements changing into efficient in 2023, for each 5% of inflation 4% can be handed on as indexation via enhance of lease. Assuming a ten% inflation price, lease could be elevated by 7% throughout the identical yr (8% lease enhance in respect of the personal portfolio and 7% in respect of the Joint Ventures’ portfolio).

Development actions

• During the second half of 2022, VGP accomplished one other 11 buildings representing 240,000 m² of lettable space, i.e.: within the Czech Republic: one constructing of 29,500 m² in VGP Park Hradek nad Nisou, one constructing of 15,800 m² in VGP Park Kladno, and one constructing of 5,500 m² in VGP Park Chomutov; in Germany: one constructing of 67,200 m² in VGP Park Laatzen and one constructing of 20,400 m² in VGP Park Rostock; in Spain: one constructing of 29,600 m² in VGP Park Sevilla Dos Hermanas and two buildings totalling 34,800 m² in VGP Park Zaragoza; within the different nations, one constructing of 10,700 m² in VGP Park Budapest Aerozone (Hungary), one constructing of 18,300 m² in VGP Park Bratislava (Slovakia), and lastly one constructing of 8,200 m² in VGP Park Graz 2 (Austria).
• This brings the whole of delivered initiatives for the primary ten months of 2022 to twenty-eight initiatives, including 576,000 m² of lettable space representing €31.6 million of annualized leases and that are 99.3% let.
• 16 new initiatives have began up in the middle of 2022 which characterize 316,000 m² of future lettable space representing €23.3 million of annualised leases as soon as totally constructed and let.
• A complete of 39 initiatives underneath building on the finish of October 2022 which can add 1,253,000 m² of future lettable space representing €82.8 million of annualised leases as soon as totally constructed and let (93.7% pre-let).
• Geographical cut up of parks underneath building, based mostly on sq. meters: 57% are positioned in Germany (17% attributable to VGP Park München and 40% to different initiatives in Germany), 11% in Romania, 8% in Hungary, 6% within the Netherlands, 6% in Latvia, 5% within the Czech Republic, 2% in Spain, 2% in Slovakia, 2% in Portugal and 1% in Austria.
• VGP continues to give attention to sustaining its growth margins by reviewing any new and present developments in opposition to their respective² focused yield on prices¹⁰. Reflective of present market dynamics, the focused common yield on prices are nicely above 7% for Western Europe, above 7.5% for Southern Europe and above 8% for Central and East Europe¹¹.

Land financial institution

• During the second half of 2022, VGP expanded its land financial institution additional and as at 31 October 2022, the Group (together with the Joint Ventures at 100%) has a remaining growth land financial institution in full possession of 8,164,000 m² (of which 1,307,000 m² held by the Joint Ventures) which permits the Group to develop ca. 3,680,000 m² of future lettable space (of which 622,000 m² on behalf of the Joint Ventures). In addition, the Group has one other 2,519,000 m² of secured land plots that are anticipated to be bought throughout the subsequent 6 to 18 months, topic to acquiring the mandatory permits.
• This brings the remaining whole owned and dedicated land financial institution for growth as at 31 October 2022 to 10,683,000 m², which represents a remaining growth potential of ca. 4,812,000 m² of which 706,000 m² (15%) in Germany, 733,000 m² (15%) in Romania, 639,000 m² (13%) within the Netherlands, 464,000 m² (10%) within the Slovak Republic, 487,000 m² (10%) in Serbia, 422,000 m² (9%) in Spain, 323,000 m² (6%) in Hungary, 316,000 m² (7%) in Italy, 263,000 m² (5%) within the Czech Republic, 138,000 m² (3%) in Austria, 149,000 m² (3%) in France, 120,000 m² (2%) in Portugal, 38,000 m² (1%) in Croatia and the remaining stability of 14,000 m² in Latvia.
• From an asset worth perspective, the land financial institution is predominantly Western European-based however on the bases of sq. meters the land financial institution is nicely unfold throughout the nations by which we function.
• Due to the general market circumstances, we do anticipate extra, predominantly brownfield, alternatives to develop into out there within the coming 12 months – we stay vigilant and are ready for such alternatives to be seized on the proper time.

ESG initiatives and sustainable power

• 89 roof-solar installations with a complete capability of 120.9 MWp – of which personal operational photovoltaic capability doubled y-o-y to 40.4MWp, 15.1MWp third-party operated and 65.4MWp of personal installations are at the moment underneath building. This is being realised via a € 40.7 million funding thus far (and an extra €28.8 million dedicated). In addition, the recognized pipeline equates to a further energy technology capability of 67.9 MWp.
• The potential present annual power manufacturing, together with PV initiatives underneath building and within the pipeline is estimated at 168,318 MWh per yr, which is the same as the whole electrical energy consumption of all our tenants in VGP buildings in 2021.
• The GRESB rating for the Group has made important progress in 2022; the event portfolio acquired one extra star to 3 inexperienced stars.
• VGP carried out its second CRREM examine (Carbon Risk Real Estate Monitor) in 2022. The evaluation was executed on the whole portfolio (based mostly on GRESB submission; as of December 2021; together with JVs at 100%). The outcomes are encouraging because the portfolio stays compliant on a 1.5°C decarbonization pathway till 2037 which is a 10-year enchancment versus final yr’s outcomes. Taking additionally into consideration the anticipated annual power manufacturing of present photovoltaic techniques within the pipeline the portfolio compliance can be prolonged till 2045 and over 40% nonetheless compliant in 2050.
• The first certificates for EU Taxonomy compliance was acquired for a standing asset and going ahead VGP goals for all new developments to attain an EPC A power label, EU taxonomy compliance, a BREEAM Excellent or DGNB Gold certificates and will not use fuel heating the place that is possible.
• The Group’s earlier introduced carbon discount roadmap targets throughout scope 1-3 are set taking the science-based goal constraints into consideration (see Corporate Responsibility Report 2021 for additional particulars), the Group has now engaged on a proper SBTi validation path, suggestions is anticipated in 2023.

Allianz Real Estate and developments close to Joint Ventures

• Second closing of VGP Park München three way partnership with Allianz Real Estate on monitor for December 2022 with proceeds of ca. €70 million to be excepted. Additional fairness recycling anticipated throughout the first half of 2023 via the partial refinancing by already secured financial institution debt.
• Including the upcoming closing for VGP Park München, VGP and Allianz Real Estate can have accomplished 4 Joint Venture closings in 2022 leading to a switch of a file greater than €800 million in gross asset worth.

• Next closing anticipated in Q1 2023 with the First Joint Venture for a complete gross asset worth of greater than €100 million. The transaction is at the moment underneath due diligence.
• Profit distribution from joint ventures is gaining momentum with revenue distribution yr thus far totalling €28.2 million with an extra ca. €30 million revenue distribution to be acquired throughout November 2022.

Outlook

• Notwithstanding belongings being transferred to the joint ventures, the recurring money producing a part of VGP’s business is constant to develop to a substantial measurement with whole contracted annual rental and price earnings on a proportional look-through foundation resulting from rise considerably throughout the subsequent 12 months. Thus will considerably enhance the recurring money technology of the Group.
• At the second of publication of the FY2022 monetary outcomes, scheduled for launch on 23 February 2023, VGP will additional talk on the dividend proposal. The anticipated dividend distribution can be reviewed within the gentle of the present dividend coverage and taking the longer-term goal of dividend protection (by recurring internet rental and price earnings and dividend distributions acquired from the joint ventures minus recurring bills) into consideration.
• Due to the general market circumstances VGP anticipates extra, predominantly brownfield, alternatives to develop into out there throughout the subsequent 12 months. VGP stays vigilant and is ready for such alternatives to be seized on the proper time and worth.

CONTACT DETAILS FOR INVESTORS AND MEDIA ENQUIRIES

Forward-looking statements: This press launch could comprise forward-looking statements. Such statements replicate the present views of administration concerning future occasions, and contain recognized and unknown dangers, uncertainties and different components that will trigger precise outcomes to be materially completely different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. VGP is offering the data 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 data, future occasions or in any other case. The data on this announcement doesn’t represent a proposal to promote or an invite to purchase securities in VGP or an invite or inducement to interact 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 knowledge, data, conclusions or opinions printed by third events in relation to this or another press launch issued by VGP.

ABOUT VGP

VGP is a pan-European developer, supervisor and proprietor of high-quality logistics and semi-industrial actual property. VGP operates a completely built-in business mannequin with capabilities and longstanding experience throughout the worth chain. Founded in 1998 as a Belgian family-owned actual property developer within the Czech Republic, VGP with a employees of circa 380 FTEs as we speak and operates in 19 European nations straight and via a number of 50:50 joint ventures. As of June 2022, the Gross Asset Value of VGP, together with the joint ventures at 100%, amounted to € 6.53 billion and the corporate had a Net Asset Value (EPRA NTA) of € 2.34 billion. VGP is listed on Euronext Brussels. (ISIN: BE0003878957).

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

¹         Including Joint Ventures at 100%. As at 31 October 2022 the annualised dedicated leases of the Joint Ventures stood at €174.5 million (€151.1 million as at 31 December 2021).
²         Including Joint Ventures at 100%.
³         Of which 493,000 m² (€27.8 million) associated to the personal portfolio.
⁴         Of which 200,000 m² (€10.5 million) associated to the Joint Ventures’ portfolio.
⁵         Including lease indexation results.

⁶         Joint Ventures means both and every of (i) the First Joint Venture i.e. VGP European Logistics S.à.r.l., the 50:50 three way partnership between VGP and Allianz and (ii) the Second Joint Venture i.e. VGP European Logistics 2 S.à.r.l., the 50:50 three way partnership between VGP and Allianz, and (iii) the Third Joint Venture i.e. VGP Park München GmbH,     the 50:50 three way partnership between VGP and Allianz, and (iv) the Fourth Joint Venture i.e. VGP European Logistics 3 S.à.r.l., the 50:50 three way partnership between VGP and Allianz and (v) LPM Joint Venture, i.e. LPM Holding B.V., the 50:50 three way partnership between VGP and Roozen Landgoederen Beheer.
⁷         The weighted common time period of the dedicated leases as much as the primary break stands at 9.5 years as at 31 October 2022.
⁸         The weighted common time period of the dedicated leases as much as the primary break stands at 6.9 years as at 31 October 2022.
⁹         The weighted common time period of the dedicated leases as much as the primary break stands at 8.0 years as at 31 October 2022.

¹⁰       Yields on price are calculated as annualised lease divided by whole challenge price (together with land acquisition prices and challenge growth prices).
¹¹       Western Europe contains Netherlands, Germany, France. Southern Europe contains Portugal, Spain, Italy Central Europe contains Czech Republic, Austria, Hungary. East Europe embrace Serbia, Romania, Latvia  

• 2022.11.03_VGP – Trading replace November 2022 (EN)