Slide 1: Building Tomorrow Today
BUILDING TOMORROW TODAY 23 February 2023 2
Slide 2: Slide 2
Slide 3: Key Messages
Key Messages ▪ Solid operating performance ▪ Strong rental activity with € 73.4 million of signed and renewed leases ▪ Annualised committed leases of € 303.2 million, a 18.4% YoY increase1 ▪ 44 projects delivered representing a record 1,141,000 m² ▪ 26 projects under construction representing 814,00
Slide 4: Key Financial Highlights
Key Financial Highlights ▪ 2022 CAPEX of € 858 million ▪ Record Joint Venture closings in 2022 ▪ € 887 million of GAV transactions closed ▪ € 347 million net cash recycled ▪ € 87 million realized gains ▪ Joint Ventures activity set to continue in 2023 ▪ Jan 2023: 10th closing with JV1: € 81 million
Slide 5: Excellent locations spread across Continental Europe
Excellent locations spread across Continental Europe DIVERSIFIED INVESTMENT PORTFOLIO (BREAKDOWN BY COUNTRY1) Hungary Austria €207mm – 3% €143mm – 2% Italy Romania €127mm – 2% €207mm – 3% Other Slovakia €204mm – 3% €251mm – 4% Netherlands €450mm – 7% Germany Spain €3,488mm €553mm – 9% 54% Czech Repu
Slide 6: Slide 6
Slide 7: Continued robust market fundamentals
Continued robust market fundamentals % 10 Decrease 9 8 Increase 7 Amsterdam 6 Stable 5 4 4.1 3 2 1.0 Rotterdam 1 0 Prague Paris 0.6 3.3 4.4 ▪ Continued robust market fundamentals but Bratislava demand increasingly impacted by limited Lyon 2.1 Budapest supply & economic headwinds 0.2 5.3 2.0 ▪ Below
Slide 8: Prime logistics rents at highest growth rate in over 20 years
Prime logistics rents at highest growth rate in over 20 years Munich Rotterdam Increase Berlin Warsaw Stable London Prague Düsseldorf Decrease Hamburg Bratislava Budapest Hamburg Oslo Rotterdam Birmingham 96 Berlin Frankfurt 100 Dublin 90 Stockholm 88 Manchester Leeds Paris Frankfurt 90 Antwerp Lyon
Slide 9: Slide 9
Slide 10: Committed annualised rental income
2022 committed rental income – including JVs at 100% – increased by 18.4% COMMITTED ANNUALISED RENTAL INCOME AND NUMBER OF TENANCY CONTRACTS Increase in rental income Rolling rental income Number of contracts 500 € 300 450 ▪ In total 481 tenant contracts 400 ▪ Committed annualised leases of € 250 €
Slide 11: Tenant portfolio breakdown by industry segment
Tenant portfolio breakdown – • Weighted average lease term of 8.3 years1 by industry segment1 • Top 10 tenants represents 35% of committed leases Other 4.1% E-commerce Light industrial Logistics 23.2% Logistics 44.0% E-commerce Other Light industrial 28.7% 11
Slide 12: The portfolio at-share has grown organically at an annual compounded growth rate of 30.2%
The portfolio at-share has grown organically at an annual compounded growth rate of 30.2% ▪ The portfolio at-share has shown resilient growth Total investment property (€mm) 4.605 ▪ Compounded annual growth rate of 30.2% at share since 2016 4.084 2.468 1.897 1.355 1.206 947 2016 2017 2018 2019 2020
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 has grown y-o-y with 51%
Net rental and renewable energy income has grown y-o-y with 51% Total net rental and renewable energy income at share ▪ Total net rental and renewable (’000 €) energy income at share increased y-o-y by 51% to 107.134 € 107.1 million in 2022 51% ▪ Similar growth rate expected in 70.718 2023 28% 18% 5
Slide 15: 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 Hungary Austria €207mm – 3% €143mm – 2% Italy Development land Romania €127mm – 2% € 779 mm €207mm – 3% 12% Other Slovakia €204mm
Slide 16: Delivery of new developments in 2022
Deliveries Delivery of new developments in 2022 Geographical breakdown1 Austria 1% Latvia Romania 4% Italy 4% 1% ▪ 44 buildings representing 1,141,000 m2 GLA Hungary 5% ▪ € 71.9 million rental income by 62 new contracts, 98.7% let Slovakia 5% Germany 49% ▪ 100% will be rated BREEAM ‘Very Good’ (or e
Slide 17: Largest share of new developments delivered for tenants active in light industrial
Deliveries Largest share of new developments delivered for Tenant segmentation1 tenants active in light industrial Other 2% E-commerce 15% Logistics 26% Light Industrial 57% VGP Park Nijmegen, The Netherlands VGP Park Laatzen, Germany VGP Park Olomouc, Czech Republic VGP Park Dos Hermanas (Sevilla),
Slide 18: Portfolio under construction represents € 51 million of new leases
The predominantly pre-let portfolio under construction represents € 51 million of new leases ▪ ▪ ▪ ▪ ▪ VGP Park Wiesloch-Walldorf , Germany VGP Park Nijmegen, The Netherlands VGP Park Graz, Austria 18
Slide 19: …and is well spread across our geographical footprint
…and is well spread across our geographical footprint Spain 3% Slovakia 3% The Netherlands 1% Latvia 3% Portugal 4% Austria 5% VGP Park Magdenburg, Germany Hungary 10% Germany 61% Romania 10% VGP Park Giessen Am Alten Flughafen, Germany 19
Slide 20: Owned and committed land bank expanded further to support future growth
Owned and committed land bank expanded further to support future growth 10,700 10,400 2,400 8,000 7,000 1,970 (970) Land owned Deployed Acquired Committed Letters of Dec 2021 2022 2022 intent Owned and committed land bank ▪ ▪ ▪ P site La Naval, ain - brownfield 20
Slide 21: Landbank geographically well diversified across countries of operations
Landbank geographically well diversified across countries of operations ▪ We remain vigilantly focused Other 12% Spain 17% on expanding our landbank Italy 5% ▪ Priority focus on Germany Hungary 6% and new countries France and Denmark Czech Republic 6% Germany 16% Romania 7% The Netherlands 8% Austri
Slide 22: Installed solar power increased YoY by 66%
Installed solar power increased YoY by 66% Achievements 2022 ▪ ▪ ▪ ▪ ▪ VGP Park München ▪ 11.55 MWp PV plant ▪ Finished in December 2022 62 operational PV installations ▪ Saving c. 9,000,000KWh grid-consumption p.a. Representing 56.6 MWp (15.1 MWp 3rd-party operated) +66% compared to Dec 2021 56.6 1
Slide 23: Slide 23
Slide 24: Summary financial results
Summary financial results 1 2 3 4 STEADY GROWTH OF CONTINUED STRONG OPERATING PROFIT BEFORE INTENTION TO PROPOSE TOTAL PORTFOLIO GROWTH IN COMMITTED UNREALISED VALUATION TO THE AGM VALUE1 ANNUALISED RENTAL ADJUSTMENTS INCREASED DISTRIBUTION OF GROSS INCOME1 SIGNIFICANTLY DUE TO RENTAL DIVIDEND OF €
Slide 25: Income statement
Income statement Income Statement (€mm) FY2022 FY 2021 • Gross rental income increases 158% to € 45.3 mm due to high number of delivered assets Revenue 84.8 44.3 • Gross renewable income of € 5.9 mm Gross rental and renewable energy income 51.2 18.3 Property operating expenses (8.2) (2.9) Net rental
Slide 26: Operating EBITDA – by segment
Operating EBITDA – by segment Investment Development Renewable Energy (€mm) FY22 FY21 (€mm) FY22 FY21 (€mm) FY22 FY21 Gross rental and renewable energy Gross rental and renewable energy Gross rental and renewable 45.3 17.6 – – 5.9 0.7 income income energy income Property operating expenses (0.8) (0.
Slide 27: Balance sheet - assets
Balance sheet - assets Consolidated Balance Sheet – Assets (€mm) • Completed portfolio € 1,482 mm (’21: €563mm) • Under Construction € 632 mm (’21 : €855mm) (€mm) 31 Dec ‘22 31 Dec '21 • Development land € 573 mm (’21 : €435mm) ASSETS Intangible assets 1.2 1.0 Investment properties 2,396 1,853 • JV1
Slide 28: Balance sheet – Shareholders' equity and liabilities
Balance sheet – Shareholders’ equity and liabilities Consolidated Balance Sheet – Shareholders equity and liability (€mm) • Following a rights issue of € 300 mm, VGP issued 5,458,262 new shares (€mm) 31 Dec ‘22 31 Dec '21 • IFRS NAV of 80.7 SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders’ equity 2
Slide 29: Update on 2022 financing activities: available liquidity more than doubled
Update on 2022 financing activities: available liquidity more than doubled 2,500 ▪ Issued €1 billion in euro bonds ▪ € 500 million 5-year tranche 1.625% ▪ € 500 million 8-year tranche 2.250% 2,000 2,000 ▪ € 300 million rights issue 1,500 ▪ € 200 million increase in RCF, total of €400 million untappe
Slide 30: Low average cost of debt and significant liquidity
Low average cost of debt and significant liquidity 3,40% ▪ € 2,374mm Total Debt ▪ 2.3% Average Cost of Debt 3,20% ▪ Significant liquidity 3,00% ▪ € 699mm Cash (+€ 6 mm in HFS) ▪ € 400mm Unutilised Credit Facility 2,80% ▪ Bond maturities in 2023 2,60% ▪ 2.75% for € 150 million Apr-23 ▪ 3.90% for € 22
Slide 31: Near term refinancing covered through available cash and cash recycling
Near term refinancing covered through available cash and cash recycling 600 500 502 375 214 78 80 2023 2024 2025 2026 2027 2028 2029 2030 4.48 years average debt maturity 31 Source: Company information as of Dec 2022
Slide 32: Significant headroom to key covenants
Significant headroom to key covenants Gearing ratio (%)1 Debt service cover ratio (x)2 80 Covenants: <65% 60 60 39,4 42,3 37,2 45 34,6 34,4 25,2 29,8 40 26,4 22,6 25,9 30 20,4 14,8 20 Covenants: ≥1.2 15 3,4 2,1 0 0 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 100% Unencumber
Slide 33: Slide 33
Slide 34: Joint Ventures update
Joint Ventures update First JV: VGP European Logistics Second JV: VGP European Logistics 2 Third JV: VGP Park München Fourth JV Germany Austria Germany Czech Republic Italy Czech Republic Hungary Netherlands Hungary Slovakia Portugal Slovakia Romania Spain Closing I GAV: c.€500mm Closing I GAV: c.€1
Slide 35: 35
35
Slide 36: ESG Strategy: Building Tomorrow Today Together
ESG Strategy: Building Tomorrow Today Together 36
Slide 37: ESG Achievements 2022
ESG Achievements 2022 ▪ 45% of portfolio on a Paris-aligned 1.5oc ▪ 100% certified pathway in 2050 Green Power for all VGP offices ▪ Science based targets submitted ▪ External CO2 assurance ▪ All VGP parks to be ▪ Working on reducing ▪ 55,000 tonnes of CO2-e equipped with EV embodied emissions p.a.
Slide 38: ESG Achievements 2022
ESG Achievements 2022 ▪ Improve eco- ▪ Biodiversity: ▪ Aiming for carbon efficiency: ▪ 4,201 trees improvements within ▪ Refurbishment planted in VGP supply chain program Parks ▪ 488,284 m2 of ▪ Supply chain ethics ▪ Portfolio EU biotopes in Taxonomy our parks compliance review ▪ €3 million UNHCR ▪
Slide 39: NEXT: VGP Park München
VGP Park Munchen
Slide 40: VGP München
vGP - Miinchen Wrel> Prime Location ~_ * Land Area: 674,248 m2 * Gross Lettable Area: 314,000 m? * At the Parsdorf junction on the A94 motorway (Munich to Passau); first junction after the Ring * Only 5 minutes to Munich Messe and 30 minutes to Munich Airport + Adjacent to the S-Bahn station (S2-Gru
Slide 41: Fully Leased to two iconic Bavarian production companies
Fully Leased to two iconic Bavarian production companies VGP Krauss Maffei * GLA: 211,500 m? * The new headquarters, a production facility, a tést:plant: 3production halls, amain administration building, 4 office and social buildings, a multi-store EV-equipped car park, a canteen, a cafeteria, and a
Slide 42: • • •
• • • 42
Slide 43: • • •
• • • 43
Slide 44: 44
44
Slide 45: Slide 45
Slide 46: Rotterdam Breda Tilburg
• • • • • • Rotterdam • Breda Tilburg
Slide 47: VGP Park Moerdijk
VGP Park Moerdijk VG P Project details + LPM JV-50:50 partnership between VGP and Roozen van Hoppe Groep Objective : development of Logistics Park Moerdijk together with the Port Authority Moerdijk on a 50:50 basis i.e. 50% (VGP Park Moerdijk) for account of the LPM JV and the other 50% directly for
Slide 48: Summary and Outlook
Summary and Outlook
Slide 49: Outlook
Outlook = Confidence in 2023 outlook = Continued healthy occupier demand = Construction costs coming down = Technical competence and ESG measures becoming increasingly important factors of distinction = On the look-out for new opportunities = Focused on profitable developments against attractive con
Slide 50: Slide 50
Slide 51: Slide 51
Slide 52: …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% 100,0% 100,0% 99,8% 99,4% 99,3% 99,3% 99,1% 98,5% 98,4% 99.3% 99.8% 99.3% 100.0% 100.0% 10
Slide 53: Joint Ventures with Allianz
Joint Ventures with Allianz¹ First JV: VGP European Logistics Second JV: VGP European Logistics 2 Austria Germany Italy Czech Republic Netherlands Hungary Portugal Slovakia Romania Spain ◼ GAV: € 2,248 mln ◼ GAV: € 697.7 mln ◼ Rent: € 103.3 mln p.a. ◼ Rent: € 37.7 mln p.a. ◼ # parks: 41 ◼ # parks: 1
Slide 54: Joint Ventures with Allianz
Joint Ventures with Allianz¹ Third JV: VGP Park München Fourth JV Germany Germany Czech Republic Hungary Slovakia ◼ Development joint venture ◼ Replacing the investment capacity of the First JV ◼ Rent: EUR 25.7 mln p.a. (+ EUR 4.0 mln p.a.) ◼ Rent target: € 126 mln p.a. ◼ # parks: 1 ◼ GAV target: €
Slide 55: Development Joint Ventures
Development Joint Ventures Other Development joint ventures VGP Park Moerdijk (LPM JV) Germany The Netherlands Spain ◼ LPM JV – 50:50 partnership between VGP and Roozen ◼ Objective : development of Logistics Park Moerdijk together with the Port ◼ VGP Park Belartza (Spain) Authority Moerdijk on a 50:
Slide 56: Summary of the Group's ESG performance indicators
Summary of the Group’s ESG performance indicators Target 2022 achievements Sustainable properties ▪ Based on risk assessment of long-term climate change risks, the Group will work on ▪ For all parks to perform a climate change risk plan adaptation plans for its standing assets ▪ 100% of projects to
Slide 57: Summary of the Group's ESG performance indicators
Summary of the Group’s ESG performance indicators Target 2022 achievements Protect and improve biodiversity ▪ 100% of development projects to implement an ecology plan ▪ 100% of development projects started up in 2022 have an ecology plan ▪ 100% of standing assets with high biodiversity stakes to ▪
Slide 58: 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