Slide 1: FY 2023 Financial Results
22 February 2024 FY 2023 Financial Results
Slide 2: Highlights 2023
Highlights 2023
Slide 3: Highlights 2023
Highlights 2023 • Strong operational performance supported by dynamic leasing activity with significant share of light industrial segment (57%) • A net profit of € 87.3 million or € 3.20 per share • Evolution of Joint Venture strategy with two new joint venture partners and strong net cash recycling
Slide 4: Summary financial results
Summary financial results 1 2 3 4 STEADY GROWTH OF CONTINUED STRONG EBITDA INCREASED INTENTION TO PROPOSE TOTAL PORTFOLIO GROWTH IN COMMITTED SIGNIFICANTLY DUE TO TO THE AGM VALUE1 ANNUALISED RENTAL PROPERTY DEVELOPMENT DISTRIBUTION OF GROSS INCOME1 GAINS AND RENTAL INCOME DIVIDEND OF € 3.70 PER +15
Slide 5: Market update
Market update
Slide 6: Demand Drivers
Demand Drivers Safeguarding against supply New manufacturing Upgrading through new E-commerce expansion to chain disruption Growth of EV and battery production, built/retrofitted stock return in 2025 Implementing supplier diversification, renewable energy solutions, Meeting latest sustainability sta
Slide 7: Space under construction across Europe at the end of Q4 2023
Space under construction across Europe at the end of Q4 2023 A slowdown in speculative developments elevates BTS/pre-let share European space under construction end Q4 2023 Speculative space under construction at end of Q4 2023 25 Italy Poland Netherlands 20 34% UK 43% Spain 15 42% Sweden Million m2
Slide 8: Balanced market with vacancy below 5%
Balanced market with vacancy below 5% European Average Vacancy Rate Vacancy rate per 8 major market (%) 5,7 5,4 4,7 5 4,9 Decrease 4,5 4,4 3,6 3,2 Increase Stable 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Amsterdam • Higher vacancy rates put non-prime space at a disadvantage 9.3 1.0 • Suitab
Slide 9: Operational Performance
a Operational Performance- ~~ — —_—
Slide 10: Leasing activities
Leasing activities
Slide 11: Committed annualised rental income
FY 2023 committed rental income – including JVs at 100% – increased by 16% Y-o-Y Committed Annualised Rental Income And Number Of Tenancy Contracts • The group has 529 tenant contracts with 370 tenants Increase in rental income Rolling rental income Number of contracts 600 • Committed annualised lea
Slide 12: Majority share of new contracts signed within light industrial segment
Majority share of new contracts signed within light industrial segment New Lease Agreements (Based On Rent) Examples FY2023 Other E-commerce 2% 1% Logistics 40% Light industrial 57% 12
Slide 13: Portfolio leased to a diversified and blue-chip tenant base
Portfolio leased to a diversified and blue-chip tenant base Tenant Portfolio Breakdown – By Industry Segment1 • Weighted average lease term of 7.9 years1 • Top 10 tenants represents 32% of committed leases and have a combined WALT of Other 10.3 years 2.0% E-commerce Light industrial Logistics 20.0%
Slide 14: Active annualized rental income growth incl. JV's at 100%
Active annualized rental income growth incl. JV’s at 100% € 350.8 million €46.5 million €125.6 million € 304.3 million Own Portfolio €66.1 million €80.8 million € 240 million on a € 238.2 million Own Portfolio proportional basis €72.7 million Own Portfolio €223.5 million €225.1 million €165.6 millio
Slide 15: Net rental and renewable energy income at share has grown y-o-y with 45%
Net rental and renewable energy income at share has grown y-o-y with 45% 155,046 Net rental and renewable energy income ( ‘000 €) • Continuous growth expected as a result of deliveries in ‘23 and ‘24 107,134 70,718 55,256 46,666 43,417 33,490 23,934 2016 2017 2018 2019 2020 2021 2022 2023 15
Slide 16: Portfolio virtually fully let on a long-term basis
Portfolio virtually fully let on a long-term basis Occupancy evolution (%)1 Weighted average lease term (WALT) of the portfolio Combined 7.9 years 100.0% 100.0% 99.3% 99.4% 98.4% 99.8% 98.5% 99.1% 98.8% 99.0% 100.0% 99.3% JVs 7.3 years Own 8.9 years 2018 2019 2020 2021 2022 2023 0 2 4 6 8 10 12 14 O
Slide 17: Deliveries
Deliveries
Slide 18: Delivery of new developments in FY2023
Delivery of new developments in FY2023 Deliveries Geographical breakdown1 The Netherlands • 24 buildings representing 641,000 m2 GLA Slovakia Austria 2% 1% Portugal 3% 3% • € 42.3 million rental income by 51 new contracts, 100% let Spain 4% Latvia • 100% will be rated BREEAM ‘Very Good’ (or equivale
Slide 19: Largest share of new developments delivered for tenants active in logistics
Largest share of new developments delivered for tenants active in logistics Deliveries Tenant segmentation1 Other 1% E-commerce 24% Light industrial 12% Logistics 64% VGP Park Brasov, Romania VGP Park Bratislava, Slovakia 19 1
Slide 20: The portfolio at-share has grown organically at an annual compounded growth rate of 26.2%
The portfolio at-share has grown organically at an annual compounded growth rate of 26.2% • The portfolio at-share has shown resilient growth Total investment property (€mm) • Compounded annual growth rate of 26.2% at share since 2016 4.828 4.605 4.084 2.468 1.897 1.355 1.206 947 2016 2017 2018 2019
Slide 21: The portfolio is geographically well diversified and predominantly income generating
The portfolio is geographically well diversified and predominantly income generating Investment Portfolio Breakdown By Country1 Investment Portfolio Breakdown By Status1 Italy Other € 339mm – 5% Austria € 139 mm – 2% € 203mm – 3% Romania € 249mm – 3% Development land Hungary € 959 mm € 262mm – 4% 13
Slide 22: Developments
Developments ee
Slide 23: Portfolio under construction represents € 52 million of new leases
Portfolio under construction represents € 52 million of new leases • At YE2023, 26 buildings were under construction, representing 774,000 m2 • This equates to € 51.9 million of annualized leases1 • The portfolio under construction is 77.3% pre-let • Portfolio under construction longer than 6 months
Slide 24: …and is well spread across our geographical footprint
…and is well spread across our geographical footprint Developments – geographic breakdown (by rental value) Spain France 1% Portugal 4% 4% Italy 3% Slovakia Germany 6% 28% VGP Park Prostějov, Czech Republic Czechia 6% Romania 9% Austria Serbia 15% 11% Hungary 13% VGP Park Laxenburg, Austria 24
Slide 25: Owned and committed land bank expanded further to support future growth
Owned and committed land bank expanded further to support future growth 9,361 8,641 795 (720) 8,566 7,956 1,932 (1,324) Land owned Deployed Acquired Committed Sold in ‘24 Dec 2022 FY’23 FY’23 Owned and committed land bank • Land bank (owned and committed, post LPM sale) of 8.6 million m2 • Over 3.8
Slide 26: Landbank geographically well diversified across countries of operations
Landbank geographically well diversified across countries of operations • The acquisition of some very iconic land plots, on top of Land bank¹ – geographic breakdown already a prime land bank across the regions in which VGP operates, allows to offer attractive propositions to our clients Other 10% C
Slide 27: VGP Park Vejle
VGP PARK VEJLE Fredericia Land surface 23 km 175,256 m² Odense GLA of park 73 km 81,449 m² Arhus Buildings 80 km 5 Highway 300 m Port 7 km Airport 35 km Google maps → 27
Slide 28: VGP Park Leipzig - Flughafen
VGP PARK Leipzig - Flughafen Leipzig Land surface 20 km 495,076 m² Magdeburg GLA of park 100 km 225,758 m² Berlin Buildings 170 km 5 Highway 1 min Bus stop 5 minutes Airport 7 km Google maps → 28
Slide 29: VGP Park Rüsselsheim
VGP PARK Rüsselsheim Frankfurt Land surface 30 km 702,875 m² Mainz GLA of park 15 km 285,710 m² Stuttgart 190 km Highway 1 min Bus stop 1 minute Airport 15 km Google maps → 29
Slide 30: VGP Park Vélizy, France
VGP PARK Vélizy Paris Land surface 15 km 193,665 m² Versaille GLA of park 100 km 80,000 m² Brownfield Highway direct connection Bus stop 5 minutes Airport 14 min Google maps → VGP Park Vélizy, France 30
Slide 31: Renewables
Renewables
Slide 32: Installed solar power increased by 80% YoY
Installed solar power increased by 80% YoY • Gross renewables income over FY 2023 was € 4.36 million (vs €5.90 million over FY22) • Effective production sold in FY 2023 increased 70.6% to 44 GWh, at an effective energy price of €94/MWh (vs €230/MWh in 2022) • Operational roof solar capacity per Dec-
Slide 33: Update Joint Ventures
Update Joint Ventures 33
Slide 34: Record year of transactions, lead to € 676 million net cash recycled
Record year of transactions, lead to € 676 million net cash recycled Number of closings Net cash proceeds (€m) 2 1 1 3 4 1 3 3 235 122 290 339 409 50 347 676 4,482 1098 2016 2017 2018 2019 2020 2021 2022 2023 3,384 887 887 2,497 2,429 68 68 68 666 666 666 666 1,763 610 610 610 610 610 1,153 753 400
Slide 35: Addition of new Joint Venture partners enhanced the solidity of the cash recycling model
Addition of new Joint Venture partners enhanced the solidity of the cash recycling model Partnership with Deka: • Five strategically located parks in Germany: Gießen – Am alten Flughafen, Laatzen, Göttingen 2, Magdeburg and Berlin Oberkrämer • Portfolio of 20 buildings • Pricing agreed for the full
Slide 36: Addition of new Joint Venture partners enhanced the solidity of the cash recycling model
Addition of new Joint Venture partners enhanced the solidity of the cash recycling model Partnership with Areim • Targets assets earmarked in Germany, Czech Republic, France, Slovakia and Hungary • The Joint Venture targets € 1.5 billion gross asset value, with an LTV of 35% • The Joint Venture has
Slide 37: ESG Update
ESG Update
Slide 38: ESG Update: Progress on SDGs
ESG Update: Progress on SDGs Promote Green Energy Carbon Pricing, Supplier EU Taxonomy and Employee Development Recognition Adoption and Expansion Engagement and CRREM Enhanced Green Bonds Initiatives of Renewable Energy Pathway Allocation Initiatives • Utility status in Germany • Introduction of in
Slide 39: Financial Performance
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Slide 40: Income statement
Income statement Income Statement (€ thousands) • Gross rental income increases 43% to € 64.6 mm FY2023 FY2022 • Including VGP’s share of the joint ventures on a “look-through” basis net rental income Revenue 113,723 84,784 increased by € 52 mm, or 48% compared to full year 2022 • The gross renewabl
Slide 41: Income statement
Income statement Income Statement details (in thousand of €) FY2023 FY2022 • LTIP reversal of € 9.5 mm Joint venture management fee income 26,925 21,537 • 368 FTE, decrease of 17.5 FTE Net valuation gains on investment properties 87,958 (97,230) Administration expenses (48,864) (33,956) Share of net
Slide 42: Balance sheet - assets
Balance sheet - assets • Completed portfolio: € 1,154 mm (‘22: € 1,482 mm) Consolidated Balance Sheet – Assets (€ thousands) • Under construction: € 544 mm (‘22: € 855 mm) (€ - thousands) 13 Dec ‘23 31 Dec ‘22 • Development land: € 687 mm (‘22: € 435 mm) ASSETS • Total capex of € 715 mm Intangible a
Slide 43: Balance sheet – Shareholders' equity and liabilities
Balance sheet – Shareholders’ equity and liabilities Consolidated Balance Sheet – Shareholders equity and liability (€ thousand) (€ thousand) 31 Dec ‘23 31 Dec ‘22 • Following a net profit of € 87.3 million SHAREHOLDERS’ EQUITY AND LIABILITIES • And a dividend of € 75 million Shareholders’ equity 2,
Slide 44: Low average cost of debt and significant liquidity
Low average cost of debt and significant liquidity 3,40% ▪ € 1,997 mm Total Debt ▪ 2.1% Average Cost of Debt 3,20% ▪ Significant liquidity 3,00% ▪ € 209 mm Cash ▪ € 400 mm non-utilised Credit Facility 2,80% ▪ Bond maturities in 2024 2,60% ▪ € 75 mm bond coming to maturity in 2024 2,40% ▪ Extension o
Slide 45: Record proceeds from disposals to Joint Ventures in '23
Record proceeds from disposals to Joint Ventures in ‘23 In €-million Cash flow statement 31 Dec ‘23 31 Dec ‘22 (€ thousand) Cash at beginning of period 699,168 222,160 Net cash generated from operating activities (27,331) (70,638) Net cash used in investing activities (8,078) (566,150) Proceeds from
Slide 46: Near term refinancing covered through available cash and cash recycling
Near term refinancing covered through available cash and cash recycling 600 502 500 214 78 80 2024 2025 2026 2027 2028 2029 2030 4.23 years average debt maturity 46 Source: Company information as of December 2023
Slide 47: Significant headroom to key covenants
Significant headroom to key covenants . Covenants: <65% 80 60 60 45 39,4 42,3 37,2 34,6 40,9 25,2 29,8 34,4 40 26,4 25,9 30 20,4 22,6 14,8 20 15 Covenants: ≥1.2 1,7 3,4 2,1 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 40 30 Joint Venture LTV Convenant 16,5 Rhei
Slide 48: Summary and Outlook
Summary and Outlook
Slide 49: Outlook
Outlook • With the acquisition of some very iconic land plots, on top of already a prime land bank across the regions in which the Group operates, VGP believes to have set several milestones in 2023 that will enable solid growth in ’24 and beyond • VGP expects to activate another € 41.3 million of a
Slide 50: Q&A
Q&A
Slide 51: Building Tomorrow Today
BUILDING TOMORROW TODAY
Slide 52: Significant YoY improvement of operating EBITDA
Significant YoY improvement of operating EBITDA Investment Development Renewable Energy (€mm) FY23 FY22 (€mm) FY23 FY22 (€mm) FY23 FY22 Gross rental income 64.7 45.4 Gross rental income – – Gross renewable energy income 4.4 5.9 Property operating expenses (0.5) (0.8) Property operating expenses (4.2
Slide 53: Prime logistics rental growth remains above trend
Prime logistics rental growth remains above trend Major markets: YoY rental change - Q4 2023 v. Q4 2022 Logistics prime rents* Manchester Antwerp at the end of Q4 2023 Lyon Bucharest Decrease Dublin Stockholm Brussels Increase Berlin Helsinki Stable Rotterdam Frankfurt Lisbon Oslo Hamburg Munich Rot
Slide 54: We are where you need to be
We are where you need to be Germany Czech Republic Latvia Austria 1. Frankenthal 41. Ústí nad Labem 70. Kekava 100. Graz 2. Bobenheim-Roxheim 42. Český Újezd 71. Riga 101. Laxenburg 102. Ehrenfeld 3. Leipzig 43. Hrádek nad Nisou 72. Tiraines 4. Leipzig-Borna 44. Tuchoměřice 71 5. Berlin 45. Liberec
Slide 55: Disclaimer
Disclaimer ABOUT VGP VGP is a pan-European owner, manager and developer of high-quality logistics and semi-industrial properties as well as a provider of renewable energy solutions. VGP has a fully integrated business model with extensive expertise and many years of experience along the entire value