Vgp Nv · EURONEXT:VGP
Vgp Nv — Investor Presentation (March 2024)
38 slides from Vgp Nv's investor presentation, March 2024
Slide 1: Company Presentation
Company Presentation March 2024
Slide 2: Fully integrated pure-play logistics real-estate company
Fully integrated pure-play logistics real-estate company • Aim for all new buildings: certified BREEAM Excellent or DGNB Gold level KPI’s as of 31 Dec ‘23 €7.19 bn2 111 Total GAV parks • Portfolio and pipeline: completed portfolio is 99% let and portfolio under construction is >77% pre-let1 • VGP we
Slide 3: Milestones
Milestones VGP founded in Czech Republic 1998 €200 Expansion through CEE & Baltics 2007 €225 Listing on Euronext Brussels 2009 €428 Expansion to Germany 2011 €106 Sale of Czech assets to Tristan Capital Partners 2013 €226 Expansion to Spain 2015 €677 GAV (€mm) Established partnership with Allianz Re
Slide 4: 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 5: 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% 5
Slide 6: 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 7: 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 8: 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 8
Slide 9: 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 10: Deliveries
Deliveries
Slide 11: 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 12: 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 12 1
Slide 13: 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 14: 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 15: Developments
Developments ee
Slide 16: 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 17: …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 17
Slide 18: 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 9,361 8,641 8,566 795 (720) 2% 7,956 1,933 (1,324) 11% 20% 6% Land owned Deployed Acquired Committed Sold in Dec 2022 FY23 FY23 FY23 24 7% 9% 1% 8% 11% 1% 5% 10% 9% 1% Works at VGP Park Laxenburg, Austria 1 Ge
Slide 19: Renewables
Renewables
Slide 20: 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 21: Q&A – Building Tomorrow Today
Q&A BUILDING TOMORROW TODAY
Slide 22: Appendix
Appendix
Slide 23: Update Joint Ventures
Update Joint Ventures 23
Slide 24: 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 25: Addition of new Joint Venture partners enhanced the solidity of the cash recycling model (Deka)
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 26: Addition of new Joint Venture partners enhanced the solidity of the cash recycling model (Areim)
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 27: ESG Update
ESG Update
Slide 28: 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 29: Financial Performance
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Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 36 Source: Company information as of December 2023
Slide 37: 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 38: 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