Vgp Nv · EURONEXT:VGP
Vgp Nv — Investor Presentation (November 2022)
34 slides from Vgp Nv's investor presentation, Nov 15, 2022
Slide 1: Company Presentation
Company November 2022 Presentation 0
Slide 2: Introduction to VGP
Introduction to VGP 1
Slide 3: Fully integrated pure-play logistics real estate company
Fully integrated pure-play logistics real estate company As of As of Company at a glance 30-Jun-22 31-Oct-22 ◼ Pan-European operator, owner and developer of prime logistics and light 178 industrial parks €6.53bn1 Number of 104 99.6%2 8.3 years3 Total GAV completed Parks Occupancy WALT ◼ Fully integr
Slide 4: Successful and long-standing track record of geographic expansion and continued delivery across markets
Successful and long-standing track record of geographic expansion and continued delivery across markets 1998 2007 - 2009 2013 2016 2018 2020 H1 2022 ◼ VGP founded in ◼ Expansion through ◼ Expansion to ◼ Established partnership ◼ Further expansion ◼ Launch of two development ◼ Entry in the BEL20 inde
Slide 5: Market update
Market update 4
Slide 6: The structural forces driving the growth of logistics real estate
The structural forces driving the growth of logistics real estate... Worldwide Retail Ecommerce vs. Non-Ecommerce Sales E-Commerce penetration (%) Trillions, % change Internet sales as % of total retail sales Ecommerce % change Non-ecommerce % change 2021 2016 VGP Presence Ecommerce sales Non-ecomme
Slide 7: Strong rental growth outlook for European logistics real estate
…leading to a strong rental growth outlook for European logistics real estate Greenstreet European M-RevPAM growth1 ◼ European Logistics take-up Market rent growth Occupancy change increased 7.7% YoY during H122, although a slight slowdown due to +7% +5.8% lack of available units +5% +4% +4% +4.5%+4
Slide 8: Logistics land is becoming a scarce resource, with record high prices
Logistics land is becoming a scarce resource, with record high prices increasing barriers to entry for new developers Land prices (% growth over past 3 years – Q2 2019 – Q2 2022) Construction cost index – EU 27 Index 2015=100 €2,296 800 125 700 120 600 115 500 110 €/sqm 400 105 300 100 200 100 95 0
Slide 9: Business model
Business model 8
Slide 10: Highlights
Highlights Integrated 1 business model Fully integrated business model with expertise across the value chain Premium standardised logistics and semi-industrial real estate asset base 2 Premium assets offering high technical standards 3 Energy efficient Energy-efficient portfolio with significant inv
Slide 11: Fully integrated business model managed with in-house capabilities and competences
1 Fully integrated business model managed with in-house capabilities and competences… Land Concept & Design Construction Rent Portfolio ◼ Identification of top ◼ In-house design of ◼ High quality logistics ◼ Mainly long term lease ◼ Long term developer / locations directly buildings based on strict
Slide 12: Balanced develop to hold and develop to sell strategy
1 …based on a balanced develop to hold and develop to sell strategy Business model Highlights Develop ◼ Acquisition of strategic landbank ✓ Focused on the acquisition of strategically located landbank across Continental Europe ◼ Focus on business parks ◼ In-house team with capabilities ✓ Focuses on
Slide 13: Proven growth track record and ability to convert committed leases into fully let parks
1 Proven growth track record and ability to convert committed leases into fully let operational parks Committed annualised rental income and number of tenancy contracts GAV evolution (€m) – including 100% JV Increase in rental income Rolling rental income Number of contracts Own JV 1 €300m 450 6,534
Slide 14: Well diversified and strategically located asset base
2 Well diversified and strategically located asset base Investment portfolio breakdown (as of fair value)1 Geographic footprint of the portfolio1 Completed vs Under construction vs Geographic breakdown Development land Development land 3% 3% Other €0.7bn 11% 6% 4% Under construction 8% €1.5bn 24% 9%
Slide 15: Proven track record of developing unique and high quality properties
2 Proven track record of developing unique and high quality properties across strategic locations with blue chip tenants Overview of selected VGP assets VGP Park Frankenthal VGP Park Chomutov VGP Park Moerdijk VGP Park München Germany Czech Republic The Netherlands Germany Completed in 2018 Complete
Slide 16: Proven track record of developing high quality properties (cont'd)
2 Proven track record of developing unique and high quality properties across strategic locations with blue chip tenants (cont’d) Overview of selected VGP assets VGP Park San Fernando VGP Park Nijmegen VGP Park Rodgau VGP Park Malacky Spain The Netherlands Germany Slovakia Construction 2017-2020 Con
Slide 17: Proven track record of developing high quality properties (cont'd)
2 Proven track record of developing unique and high quality properties across strategic locations with blue chip tenants (cont’d) Overview of selected VGP assets VGP Park Valsamoggia VGP Park Timisoara VGP Park Berlin VGP Park Lliçà D’amunt Italy Romania Germany Spain Construction 2018-2020 Construc
Slide 18: Energy-efficient portfolio with significant investment in green power generation
3 Energy-efficient portfolio with significant investment in green power generation Key milestones Carbon footprint Carbon footprint Carbon footprint Green buildings certification Buildings life-cycle management scope 1 and 2 reduction scope 3 reduction scope 3 reduction 54.3% of portfolio green cert
Slide 19: Quality rental income from quasi fully occupied portfolio with long term indexed leases
4 Quality rental income from quasi fully occupied portfolio with typically long term triple net inflation indexed leases… Portfolio KPI’s as of 31-Oct-22 99.6% 8.3 years2 458 €291.0m3 Committed annualized rental Occupancy1 WAULT Tenants income Weighted average lease term of the portfolio Potential f
Slide 20: Portfolio leased to a diversified and blue-chip customer base
4 Portfolio leased to a diversified and blue-chip customer base Blue-chip top-10 tenants (committed rent based on €m, JVs at 100%)1 Tenant portfolio breakdown – by industry segment Credit ratings Market cap Fitch / Moody’s /S&P Other 9,6% 4,8% 5,4% €936bn AA- / A1 / AA E-commerce €6bn 24,1% Logistic
Slide 21: Prime owned and committed land bank expanded further to support future growth
5 Prime owned and committed land bank expanded further to support future growth Build-up of Land bank (m sqm) Land bank¹ – geographic breakdown Average Yield-On-Cost Other 35% Germany 15% 11,2 > 7,5% > 8,0% 2,5 0,5 > 7,0% The Netherlands 1,9 13% 7,0 Spain 9% (0,7) Austria 3% Romania 15% Slovakia 10%
Slide 22: Prudent development strategy with majority pre-let developments
5 Prudent development strategy with majority pre-let developments VGP’s approach to construction ◼ VGP in most developments acts as a general contractor and imposes strict pre-letting requirements VGP Park Magdeburg, Germany, Building C1, F ◼ Short construction periods of approximately 6 to 9 months
Slide 23: Rapid derisking and cash recycling through partnership with Allianz Real Estate
6 Rapid derisking and cash recycling through long term strategic partnership with Allianz Real Estate VGP European Logistics VGP European Logistics 2 3rd JV: VGP Park München 4th JV: Agreed with Allianz 50% 50% 50% 50% 50% 50% 50% 50% 100% Austria 10.1% 89.9% 100% Czech 5.1% 94.9% 100% Czech Republi
Slide 24: Strong and growing relationship with Allianz Real Estate
6 Strong and growing relationship with Allianz Real Estate, who remains as a committed buyer Gross Asset Value from closings per year with Allianz (€m) Number of closings Net cash proceeds (€m) 2 1 1 3 4 1 3 235 122 290 339 409 50 388 3,383 2016 2017 >800 2018 2,497 2019 2,429 68 68 2020 666 666 666
Slide 25: Experienced and highly committed management team with proven track record
7 Experienced and highly committed management team with proven track record Jan Van Geet Tomas Van Geet Piet Van Geet Dirk Stoop Chief Executive Chief Commercial Chief Financial Officer Company Secretary Officer Officer Miquel-David Martinez Matthias Sander Jonathan Watkins Martijn Vlutters Chief Te
Slide 26: VGP financial policy commensurate with Investment Grade Rating
8 VGP financial policy commensurate with Investment Grade Rating ◼ Objective to maintain financial policy consistent with Investment Grade Rating Financing policy ◼ Aim to operate the business with a gearing ratio1 in the range of between 30%–45% (as of H1’22 gearing ratio was 35.2%) ◼ Equity financ
Slide 27: Significant headroom to key covenants
8 Significant headroom to key covenants Overview as of H1 2022 Gearing ratio (%)1 €300m Covenants: <65% 80 €2,362m €730m4 42,3 60 Unutilised 39,4 34,6 37,2 35,2 Total Debt Cash 25,2 29,8 40 Credit Facility 20 0 2.29% 5.00 years 100% 2016 2017 2018 2019 2020 2021 H1 2022 Average Cost of Average Debt
Slide 28: Financial overview
Financial overview 27
Slide 29: Income statement
Income statement Operating profit €190.5m (1H 2021 €239.9m) (€m) FY20 FY21 1H22 • Higher net rental income mitigated by decrease in net valuation gain (€7.3m YoY) and Revenue 29.6 44.3 35.1 Joint-Venture contribution (down €53m) Gross rental income 12.1 17.6 19.1 On a “look-through” – basis 1 net re
Slide 30: Income statement – by segment
Income statement – by segment Rental income Developments Fee income (€m) FY20 FY21 1H ‘22 (€m) FY20 FY21 1H ‘22 (€m) FY20 FY21 1H ‘22 Gross rental income 12.1 17.6 19.1 Gross rental income – – – Gross rental income – – – Property operating Property operating (0.4) (0.2) (0.2) (3.4) (2.0) (1.8) Prope
Slide 31: Balance sheet - assets
Balance sheet - assets Commentary Consolidated Balance Sheet – Assets (€m) ◼ Investment Properties (own portfolio) incl. disposal group held for sale total €2,688m1 (€m) 31 Dec ‘20 31 Dec '21 30 Jun ‘22 ◼ Completed portfolio €1,078m (1H’21: €195m) ASSETS ◼ Under Construction €1,042m (1H’21 : €709m)
Slide 32: Income statement – proportionally consolidated
Income statement – proportionally consolidated H1 2022 2021 2020 Joint Joint Joint (thousands €) Group Ventures Total Group Ventures Total Group Ventures Total Gross rental income 19,129 34,080 53,209 17,618 62,435 80,053 12,078 52,095 64,173 Property operating expenses (2,028) (3,822) (5,850) (2,21
Slide 33: Closing remarks
Closing remarks 32
Slide 34: Closing remarks
Closing remarks Integrated 1 business model Fully integrated business model with expertise across the value chain Premium standardised logistics and semi-industrial real estate asset base 2 Premium assets offering high technical standards 3 Energy efficient Energy-efficient portfolio with significan