Slide 1: Company Presentation
Company Presentation September 2023 1
Slide 2: Fully integrated pure-play logistics real-estate company
Fully integrated pure-play logistics real-estate company Company at a glance Portfolio KPI’s • All new buildings required to be delivered at certified BREEAM as of 30 June ‘23 Very Good (aim Excellent) or DGNB Gold level 207 3.7 years • Fully let standing portfolio and significantly pre-let €6.76bn1
Slide 3: Well diversified portfolio across Continental Europe
Well diversified portfolio across Continental Europe INVESTMENT PORTFOLIO BREAKDOWN BY STATUS1 Development land € 783 mm Under 12% Construction € 688 mm 10% Standing assets € 5,228 mm 78% INVESTMENT PORTFOLIO BREAKDOWN BY OWNER1 Own assets € 2.6 bln 40% JV € 4.1 bln 60% As of 30 June 2023 1Including
Slide 4: Successful and long-standing track record of geographic expansion
VGP Successful and long-standing track record of geographic expansion and continued delivery across markets... 6.440 6.759 Corporate activity Compound Annual Growth Rate 5.746 4 Capital market activity (CAGR) '18-' FY22: 35.1% Acquisition / divestment @ vs 1.936 1.195 1.506 200 225 428 106 226 ‘ 3.8
Slide 5: Committed annualised rental income
1H 2023 committed rental income – including JVs at 100% – increased by 8.2% YTD COMMITTED ANNUALISED RENTAL INCOME AND NUMBER OF TENANCY CONTRACTS Increase in rental income Rolling rental income Number of contracts 600 € 350 ▪ In total 505 tenant contracts Committed annualised rental income 500 ▪ Co
Slide 6: Active annualized rental income growth incl. JV's at 100%
Active annualized rental income growth incl. JV’s at 100% € 328.1 million €42.7 million €136.7 million € 285.4 million Own Portfolio €47.2 million €95.1 million € 238.2 million Own Portfolio €72.7 million Own Portfolio €190.3 million €191.4 million €165.6 million Joint Ventures Joint Ventures Joint
Slide 7: Net rental and renewable energy income at share has grown y-o-y with 60%
Net rental and renewable energy income at share has grown y-o-y with 60% Net rental and renewable energy income ( ‘000 €) 107,134 ▪ Total net rental and renewable energy income at share on 51% track to match ‘22 growth rate 75,580 70,718 60% 28% 55,256 18% 7% 47,359 46,666 30% 43,417 40% 33,490 23,9
Slide 8: …fully let on a long-term basis
…fully let on a long-term basis Portfolio virtually fully-let on a long-term basis1 Occupancy evolution (%) Weighted average lease term (WALT) of the Own Portfolio Joint Ventures portfolio 100,0% 100,0% 100,0% 99,8% 99,4% 99,3% 99,3% 99,2% 99,1% 98,5% 98,4% 98,1% Combined 8.1 years 98.4% 99.2% 98.1%
Slide 9: Portfolio leased to a diversified and blue-chip tenant base
Portfolio leased to a diversified and blue-chip tenant base Tenant portfolio breakdown – • Weighted average lease term of 8.1 years1 by industry segment1 • Top 10 tenants represents 33% of committed leases Other 3.9% E-commerce Light industrial Logistics 22.2% Logistics 43.1% E-commerce Other Light
Slide 10: Deliveries
Deliveries
Slide 11: Delivery of new developments in 1H 2023
Deliveries Delivery of new developments in 1H 2023 Geographical breakdown1 The Netherlands 3% Portuga ▪ 13 buildings representing 317,000 m2 GLA Hungary 4% l 2% ▪ € 18.3 million rental income by 35 new contracts, 97.2% let Spain 9% Romania ▪ 100% will be rated BREEAM ‘Very Good’ (or equivalent) or L
Slide 12: Largest share of new developments delivered for tenants active in logistics
Deliveries Largest share of new developments Tenant segmentation1 delivered for tenants active in logistics Light Industrial Other 10% 19% Examples of deliveries 1H ‘23 Logistics 71% VGP Park San Fernando de Henares, Spain VGP Park Giessen am alten Flughafen, Germany VGP Park Roosendaal, Netherlands
Slide 13: Developments
Developments
Slide 14: > 90% pre-let portfolio under construction
> 90% pre-let portfolio under construction represents € 46 million of new leases ▪ At 1H 2023, 24 buildings were under construction, representing 732,000 m2 ▪ This equates to € 50.6 million of annualized leases1 ▪ The portfolio under construction is >90% pre-let today ▪ Western Europe represents 70.
Slide 15: …and is well spread across our geographical footprint
…and is well spread across our geographical footprint Developments – geographic breakdown (by rental value) Portugal 2% Romania 2% Slovakia 1% Czech Republic 7% Serbia 7% VGP Park Belgrade - Dobanovci, Serbia Austria 10% Germany 59% Hungary 12% VGP Park Laxenburg, Austria 15
Slide 16: VGP's owned and secured landbank – Embedded potential to double current standing portfolio
VGP’s owned and secured landbank – Embedded potential to double current standing portfolio Build-up of Land bank (‘000 m²) incl JV’s at 100% Land bank¹ – geographic breakdown 9,520 8,124 7,956 (533) 701 21% 19% Land Deployed Acquired Committed 4% owned 1H’23 1H’23 4% 8% Dec 2022 7% 4% Over 4.4 milli
Slide 17: Renewables
Renewables
Slide 18: Installed solar power increased by 46% YoY
Installed solar power increased by 46% YoY ▪ Operational roof solar capacity increased to 66.6MWp1 (+18% YTD; +46% YoY), whilst effective production in 1H 2023 doubled to 24GWh YoY ▪ 86.5 MWp under construction and further 65.2 MWp in the pipeline ▪ Gross renewable income over 1H23 was €2.9 million
Slide 19: Appendix
Appendix
Slide 20: Financial Performance
Financial Performance
Slide 21: Income statement
Income statement Net rental and renewable energy income is up by 96% YoY to € 33.5 mm • Gross rental income increases 84% to € 35 mm. This follows a steep increase of newly delivered Income Statement (€mm) assets in ’22 and ’23. Gross renewable income landed at € 2.9 mm and continues its exponential
Slide 22: Operating EBITDA grows 53% yoy – by segment
Operating EBITDA grows 53% yoy – by segment Investment Development Renewable Energy (€mm) 1H23 1H22 (€mm) 1H23 1H22 (€mm) 1H23 1H22 Gross rental income 35.2 19.0 Gross rental income – – Gross renewable energy income 2.9 1.4 Property operating expenses (0.4) (0.2) Property operating expenses (3.7) (3
Slide 23: Balance sheet - assets
Balance sheet - assets Investment Properties (own portfolio) incl. Disposal group held for sale total € 2,768 mm Consolidated Balance Sheet – Assets (€mm) • Total capex of € 347,6 mm • Reclassification of assets destined to Deka JV to Held for sale at agreed fair value (€mm) 30 June ‘23 31 Dec ‘22 I
Slide 24: Balance sheet – Shareholders' equity and liabilities
Balance sheet – Shareholders’ equity and liabilities Shareholders’ equity of € 2,162 mm Consolidated Balance Sheet – Shareholders equity and • Following an equity raise of € 300 mm in Q4 ‘22 liability (€mm) (€mm) 30 June ‘23 31 Dec ‘22 • A net profit of € 34.7 mm SHAREHOLDERS’ EQUITY AND LIABILITIES
Slide 25: Proceeds from disposals compensated bond and dividend payments
Proceeds from disposals compensated bond and dividend payments, additional € 500 million of gross proceeds expected in Q3 ‘23 Cash flow statement 30 June ‘23 30 June ‘22 Cash at beginning of period 699,168 222,160 Net cash generated from operating (22,780) (60,869) activities Net cash used in invest
Slide 26: Low average cost of debt and significant liquidity
Low average cost of debt and significant liquidity Average cost of debt 3,40% ▪ € 2,210 mm Total Debt ▪ 2.3% Average Cost of Debt 3,20% ▪ Significant liquidity 3,00% ▪ € 357.5 mm Cash1 ▪ € 400 mm non-utilised Credit 2,80% Facility 2,60% ▪ Bond maturities in 2023 ▪ 3.90% for € 225 million Sep-23 2,40
Slide 27: Near term refinancing covered through available cash and cash recycling
Near term refinancing covered through available cash and cash recycling Maturity profile financial debt (€mm) 1.50% 1.625% 2.25% 600 3.90% 3.50% 500 502 225 3.25% 3.35% 214 78 80 H2 2023 2024 2025 2026 2027 2028 2029 2030 4.27 years average debt maturity 27 Source: Company information as of June 202
Slide 28: Significant headroom to key covenants
Significant headroom to key covenants Gearing ratio (%)1 Debt service cover ratio (x)2 Covenants: <65% 80 60 60 39,4 42,3 37,2 40,1 * 34,6 25,2 29,8 34,4 40 45 22,6 26,4 25,9 30 20 20,4 Covenants: ≥1.2 14,8 15,4 15 0 3,4 2,1 0 2016 2017 2018 2019 2020 2021 2022 1H 2023 2016 2017 2018 2019 2020 2021
Slide 29: Update Joint Ventures
Update Joint Ventures
Slide 30: Strategic joint venture partnerships
Strategic joint venture partnerships ▪ VGP remains point contact partner for tenants and municipalities throughout the process and beyond ▪ Allianz Real Estate and Deka Immobilien are "silent partners“ ▪ The partnership structure provides additional stability and flexibility for our development acti
Slide 31: Closings with JV's at pace in 2023 with a record €660 million recycled YTD
Closings with JV’s at pace in 2023 with a record €660 million recycled YTD Gross Asset Value from closings per year with JV Partners (€m) Number of closings Net cash proceeds (€m) 2 1 1 3 4 1 3 3 235 122 290 339 409 50 347 660 4,213 2016 2017 2018 2019 2020 2021 2022 2023 829 3,384 887 887 2,497 2,4
Slide 32: VGP ESG Update
VGP ESG Update 32
Slide 33: Update on ESG Achievements and developments
Update on ESG Achievements and developments ▪ Standing portfolio carbon intensity (scope 3, category 13) reduced by c. 7.5% YoY; on-track for Group 2030 reduction target (confirmed by the Science Based Target initiative) ▪ Auditor limited assurance being obtained on scope 1+2 as well as portfolio em
Slide 34: Disclaimer
Disclaimer 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 strategic focus on the development