VGP Trading Update

PRESS RELEASE

Regulated Information – inside information  

8 November 2024, 7:00 am, Antwerp, Belgium: VGP NV (‘VGP’ or ‘the Group’) today published its trading update for the first ten months of ‘24, reporting a record of new and renewed leases:

• € 64.9 million of new and renewed leases signed during the first ten months of ‘24 (a YTD record, of which € 19.2 million was signed during the past 4 months) bringing the annualised committed leases for the first ten months to € 394.3 million¹ (+ € 43.5 million compared to 31 December 2023, which is +12.4% YTD).
• In addition, VGP has formally agreed terms on multiple new leases since 31 October '24, amounting to over €16 million in rental income, thereby increasing the annualised committed leases to above €410 million to date (+16.8% YTD).
• 36 projects under construction representing 886,000 sqm (of which 27 projects totalling 558,000 sqm started up during the year) and € 65.4 million in additional annual rent once fully built and let. The pipeline under construction is 72.5% pre-let as of 31 October ’24, which will increase to 76.3% including recent agreed annualised income.
• 17 projects delivered during first ten months representing 446,000 sqm, or € 29.7 million in additional annual rent (of which 9 projects totalling 182,000 sqm delivered since the 1^st of July 2024), currently 100% let.
• 699,000 sqm of new development land acquired during the year (of which 324,000 sqm during 2H 2024) and 1,101,000 sqm of development land deployed to support the new developments started up during the year. Total secured development land bank stands at 8.2 million sqm at the end of October 2024 representing a development potential of more than 3.6 million sqm.
• Property portfolio² virtually fully let with occupancy at 99% as of 31 October 2024 (compared to 99% as at 30 June 2024). Of the € 394.3 million committed annualised rental income, € 347.3 has become cash generative, an increase of 14% versus December 2023. Another € 40.3 million of rental income is expected to start within the next twelve months.
• Solid treasury position as strengthened by:

1. Enlarged revolving credit facilities of VGP NV from € 400 million to € 475 million;
2. Distributions of Joint Ventures expected in excess of € 80 million in ’24;
3. Successful third closing in August ‘24 with Fifth Joint Venture (Deka) resulted in gross proceeds of € 68 million;
4. Second closing with Saga Joint Venture, exceeding € 110 million gross asset value, is targeted to close before year-end and is currently under due diligence;
5. Repaid € 75 million bond at maturity in July ’24 and € 3 million schuldschein in Q4 ‘24;
6. Drawdown available € 84.5 million credit facility in Ymir Joint Venture expected in Q4;
7. Reiteration of VGP’s investment grade rating by Fitch with stable outlook.

• As of October 2024, operational rooftop solar capacity increased to 150.6 MWp, marking a 48% year-to-date growth. With an additional 127.5 MWp in ongoing and planned developments, total solar capacity is expected to reach 278.1 MWp. Combined with over 40 MW in ongoing and planned battery storage developments, the Group will have over 318MW of solar and storage capacity exceeding its 300 MW target.
• VGP is currently exploring to develop data centers in its existing and new land bank in the medium term. A dedicated team is being set up and a first location in an existing park has been identified which may allow for the development of a medium to large hyperscale data center.

FOR FULL RELEASE PLEASE SEE ATTACHMENT

¹       Including Joint Ventures at 100%. As at 31 October 2024 the annualised committed leases of the Joint Ventures stood at €280.1 million.

²       Including Joint Ventures at 100%.

Attachment