Vgp Nv · EURONEXT:VGP
Vgp Nv — H1 2023 Earnings Presentation
49 slides from Vgp Nv's earnings presentation, Aug 24, 2023
Slide 1: Highlights 1H '23
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Slide 2: Deliveries
Slide 3: Highlights 1H 2023
Highlights 1H 2023 • € 36.2 mm of signed and renewed lease agreements • Total committed annualized rental income to € 328.1 mm (+8.2% YTD) • Net rental and renewable energy income on a look through basis + 60% y-o-y to € 75.6 mm • Cash recycling: € 267.9 mm following two Allianz JV closings • + € 45
Slide 4: Developments
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Slide 5: Balanced market with vacancy below 5%
Balanced market with vacancy below 5% % 10 Decrease 9 8 Increase 7 6 Amsterdam 5 Stable 4 6.1 3 2 1 1.5 Rotterdam 0 Prague Paris 1.6 4.7 3.0 ▪ Slower take up brings temporary and minimal Bratislava relief to constrained supply during 1H Lyon 8.4 Budapest Marseille 0.9 5.9 ▪ Vacancy rates edge up but
Slide 6: Continued widespread rental growth but slowing to a more sustainable rate
Continued widespread rental growth but slowing to a more sustainable rate Munich Warsaw Increase Rotterdam Bratislava Stable Berlin Manchester Leeds Decrease Lyon Dublin Budapest Hamburg Helsinki Rotterdam Stockholm 99 Berlin Milan 100 90 Rome Hamburg 90 Paris Madrid Paris Frankfurt 90 Barcelona 67
Slide 7: Space under construction across Europe at the end of Q2 2023
Space under construction across Europe at the end of Q2 2023 Development activity edging down further due to declining speculative space development VGP’s assets under construction are +90% pre-let versus market development @ 46% speculative 1
Slide 8: Operational Performance
| Operational Performance | _ — =
Slide 9: Leasing activities
Leasing activities ‘ : Hi oo a nl
Slide 10: 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 € 300 500 ▪ Committed annualised leases of
Slide 11: Majority share of new contracts signed within light industrial segment
New contracts signed Majority share of new contracts signed Tenant segmentation1 within light industrial segment New lease agreements – (in €- million) Other E-commerce 4% 2% Logistics 28% Light industrial 66% 1 11
Slide 12: 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 13: Active annualized rental income growth incl. JV's at 100%
Active annualized rental income growth incl. JV’s at 100% 13
Slide 14: 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 51% energy income at share on track to match ‘22 growth rate 75,580 70,718 60% 28% 18% 55,256 7% 47,359 46,666 30% 43,417 40% 33,490 23,9
Slide 15: …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% 99.8% 100.0% 98.4% 99.2% 100.0% 100.
Slide 16: Deliveries
Slide 17: Delivery of new developments in 1H 2023
Deliveries Delivery of new developments in 1H 2023 Geographical breakdown1 The Netherlands 3% Portugal ▪ 13 buildings representing 317,000 m2 GLA Hungary 4% 2% Spain ▪ € 18.3 million rental income by 35 new contracts, 97.2% let 9% Romania ▪ 100% will be rated BREEAM ‘Very Good’ (or equivalent) or La
Slide 18: 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% Logistics 71% VGP Park San Fernando de Henares, Spain VGP Park Giessen am alten Flughafen, Germany VGP Park Roosendaal, Netherlands VGP Park Brasov, Romania 1 18
Slide 19: VGP Park Magdeburg - Sülzetal
VGP Park Magdeburg - Sülzetal Hanover Highway 150 km 3 km Dresden City center of Magdeburg 220 km 9 km Bus stop Leipzig 1.5 km 120 km Land surface 604.858 m2 GLA of Park 312.707 m2 # Buildings 5 GLA delivered buildings Building C2: 45.054 m2 Tenant type Logistics Light industrial Main tenants REWE C
Slide 20: Developments
Slide 21: > 90% pre-let portfolio under construction
> 90% pre-let portfolio under construction represents € 46 million of new leases ▪ ▪ ▪ ▪ ▪ VGP Park Magdeburg, Germany VGP Park Wiesloch-Walldorf, Germany VGP Park Brasov, Romania 21
Slide 22: …and is well spread across our geographical footprint
…and is well spread across our geographical footprint 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 22
Slide 23: VGP Park Belgrade
VGP Park Belgrade Novi Sad Highway 85 km 0m Nis Railway station 240 km 10 km Budapest Airport 375 km 4 km Land surface 1.154.743 m2 GLA of Park 471.168 m2 GLA under development Building D1: 41.805 m2 Started: Q1 Building D Link Google maps
Slide 24: VGP Park Brașov
VGP Park Brașov Bucharest Highway 166 km 100 m Bus stop Timisoara 100 m 400 km Bratislava Gas station 120 km 500 m Land surface 361.527 m2 GLA of Park 192.626 m2 GLA under development Building B1: 20.920 m2 Started: Q1 Building B Link Google maps
Slide 25: VGP Park Laxenburg
VGP Park Laxenburg Vienna Highway 25 km 500 m Bus stop Bratislava 1.5 km 90 km Linz Airport 195 km 20 minutes Land surface 120.247 m2 GLA of Park 49.447 m2 GLA under development Building A: 26.076 m2 Started: Q2 Building A Link Google maps
Slide 26: Owned and committed land bank expanded further to support future growth
Owned and committed land bank expanded further to support future growth 9,520 1,396 7,956 8,124 (533) 701 Land owned Deployed Acquired Committed Dec 2022 1H’23 1H’23 Owned and committed land bank ▪ ▪ VGP Park Brasov, Romania. 26
Slide 27: Landbank geographically well diversified across countries of operations
Landbank geographically well diversified across countries of operations Other 9% ▪ We remain vigilantly focused Czech The Netherlands 21% on expanding our landbank Republic 4% Italy 4% ▪ Priority focus on Germany Hungary 6% and new countries France and Denmark Romania 6% Germany 19% Austria 7% Slova
Slide 28: VGP Park Rouen
VGP Park Rouen Rouen Highway 10 km 2 km Le Havre Port 85 km 5 minutes Paris Airport 100 km 90 min Land surface 321.291 m2 GLA of Park 153.882 m2 Buildings 5 Link Google maps
Slide 29: VGP Park Leipzig – Flughafen
VGP Park Leipzig – Flughafen Leipzig Highway 20 km 1 min Bus stop Magdeburg 5 minutes 100 km Berlin Airport 170 km 7 km Land surface 495.076 m2 GLA of Park 225.758 m2 Buildings 5 Link Google maps
Slide 30: Renewables
Slide 31: Installed solar power increased by 46% YoY
Installed solar power increased by 46% YoY ▪ ▪ ▪ ▪ 71 operational PV installations VGP Park München Representing 66.6 MWp ▪ 11.55 MWp PV plant (15.1 MWp 3rd-party operated) ▪ Finished in December 2022 +18% compared to Dec 2022 ▪ Saving c. 9,000,000KWh grid-consumption p.a. 66.6 153.1 218.3 MWp MWp M
Slide 32: Update Joint Ventures
Slide 33: Closings with Allianz Real Estate JV's at pace in 2023 with €268 million recycled
Closings with Allianz Real Estate JV’s at pace in 2023 with €268 million recycled Number of closings Net cash proceeds (€m) 2 1 1 3 4 1 3 2 235 122 290 339 409 50 347 268 3,752 3,384 368 2016 2017 2018 2019 2020 2021 2022 2023 887 887 2,497 2,429 68 68 68 1,763 666 666 666 666 1,153 610 610 610 610
Slide 34: Joint Venture with Deka coming up – The Fifth Joint Venture
Joint Venture with Deka coming up – The Fifth Joint Venture – with net sales proceeds expected of over € 700 mm Fifth JV (Deka): Overview Fifth JV (Deka): Highlights Germany ◼ On 21 Jul ‘23, VGP has signed a new joint venture agreement with Deka ◼ Deka will acquire a 50% stake in five project compan
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Slide 36: 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 37: Financial Performance
Slide 38: Income statement
Income statement • 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 growth in ’23 1H2023 1H2022 Revenue 59.7 35.1 • On a look through ba
Slide 39: 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 40: Balance sheet - assets
Balance sheet - assets 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 ASSETS Intangible assets 1.1 1.2 • JV1: € 587 mm (DE,CZ,SK,HU) Investment properties 1,655
Slide 41: Balance sheet – Shareholders' equity and liabilities
Balance sheet – Shareholders’ equity and liabilities Consolidated Balance Sheet – Shareholders equity and • Following an equity raise of € 300 mm in Q4 ‘22 liability (€mm) • A net profit of € 34.7 mm (€mm) 30 June ‘23 31 Dec ‘22 SHAREHOLDERS’ EQUITY AND LIABILITIES • Dividend of € 75 mm Shareholders
Slide 42: 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 activities (22,780) (60,869) Net cash used in invest
Slide 43: Low average cost of debt and significant liquidity
Low average cost of debt and significant liquidity 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% ▪ The € 150 million
Slide 44: Near term refinancing covered through available cash and cash recycling
Near term refinancing covered through available cash and cash recycling 600 500 502 225 214 78 80 H2 2023 2024 2025 2026 2027 2028 2029 2030 4.27 years average debt maturity 44 Source: Company information as of June 2023
Slide 45: 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* 45 34,6 34,4 25,2 29,8 40 26,4 22,6 25,9 30 20,4 20 Covenants: ≥1.2 14,8 15,4 15 3,4 2,1 0 0 2016 2017 2018 2019 2020 2021 2022 1H 2023 2016 2017 2018 2019 2020 2021 2
Slide 46: Summary and Outlook
Slide 47: Outlook
Outlook ▪ ▪ Development activities at pace, but keeping an eye on pre-let ratio’s ▪ Construction prices in decline ▪ Upcoming JV with Deka will enhance cash position with € 700 mm ▪ Initial closing of >€ 700 mm GAV scheduled for Q3 '23 ▪ VGP continues, in various workstreams, to broaden its Joint Ve
Slide 48: Q&A
Slide 49: Disclaimer
Disclaimer ABOUT VGP VGP is a pan-European owner, manager and developer 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. Founded in 1998 as a Belgian family-owned real estate