VGP Feedback from the Conference Call, Cautiously Aggressive Strategy
The cash flow generation from the JV structure is not fully understood or appreciated by the market. The JV's are a great structure to recycle capital and upstream cash after tax. However, the underlying cash flow streams are hard to reconcile. The CFO read out the full reporting from different angles, but it remains relatively complex. We compare the proportional Net Rental Renewable Income (last pages in the report). This came in at 189.4.6m vs. 174.4m expected, +22% yoy. VGP seems confident about the recurrent cash flows as evidenced by the 12% Dividend hike. There was some confusion on the pipeline pre-let level. We accept the 80% level as we believe that the pre-let contract on the 105k sqm Green Campus for Opel counts as part of the pipeline. Brownfields are a big opportunity for developers in Western Europe, but unfortunately add to the complexity of the accounting. KBCS organizes a webcast on Brownfields, incl. VGP Russelheim on 20/3.VGP NV is a Belgium-based real estate development company that constructs and develops industrial real estate and ancillary offices, which are rented out to clients on long term lease contracts. The Company operates in three business segments: the Development activities segment is focused on the identification and acquisition of the land and development of the infrastructure, the design of buildings, the coordination of architectural and engineering aspects, the administration to obtain the necessary permits, the tendering and coordination of the construction works, including site management, and the facility management of the real estate portfolio; the Property Management and Leasing services segment is responsible for managing the operation of the buildings, and the Facilities Management services segment is responsible for managing the operation of the buildings and performs all actions, such as maintenance services, waste management services and maintenance greenery, among others.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.