Exploring VGP's Stellar Financial Performance for 2024

VGP's Financial Achievements in 2024

VGP NV, a prominent European provider of logistics and semi-industrial real estate, has reported remarkable financial results for the fiscal year ending on December 31, 2024. The company has demonstrated significant growth across various metrics, highlighting its robust business strategy and commitment to excellence in real estate development.

Profit and Growth Metrics

VGP achieved a net profit of €287 million, representing a staggering increase of €200 million compared to the previous year, marking a remarkable growth of 229%. This surge in profitability underscores the company’s effective management and successful operational strategies. Additionally, VGP’s net asset value grew by 8.4%, reaching €2.4 billion, further solidifying its financial stability.

EBITDA Performance

EBITDA also witnessed significant growth, rising by 57% due to strong contributions from recurring rental activities and development projects. The recurring rental business generated €204.3 million, reflecting a 19% increase, while development activities skyrocketed by 178% to €144.8 million. Additionally, renewable energy initiatives contributed €5.4 million, a 236% increase from the previous year.

Leasing and Occupancy Highlights

VGP marked a historic year with €91.6 million in new and renewed leases, resulting in an annualised committed lease amounting to €412.6 million—a 17.6% increase. The company maintained a high occupancy rate of 98% across its portfolio, demonstrating strong demand for its premium properties.

Project Developments

The company had 34 projects under construction, covering a total area of 780,000 sqm. Specifically, 29 buildings were commenced during the year, with an expected additional €60.4 million in annual rent once fully operational. Impressively, 80% of these projects were pre-let before completion, demonstrating both confidence in VGP’s developments and the strong market interest.

Land Acquisition and Sustainability Efforts

In 2024, VGP acquired 702,000 sqm of new development land, which supports its ongoing and future developments. The total secured land bank at the end of the year stands at an impressive 8.7 million sqm, representing a developing potential of over 3.6 million sqm.

Sustainable Building Practices

VGP remains dedicated to sustainability with its property portfolio, which features an average building age of just 4.2 years and is nearly fully leased. The company is on track to achieve 100% sustainable certification across its portfolio, with numerous buildings already earning BREEAM Outstanding or DGNB Platinum status.

Financial Stability and Future Prospects

The company boasts a solid balance sheet, with a liquidity position of €493 million, a significant improvement from €210 million the previous year. With additional undrawn credit facilities of €500 million and a gearing ratio of 33.6%, VGP is well-positioned for future growth and opportunities in the commercial real estate market.

Dividend Proposal

The Board of Directors has proposed an ordinary dividend of €90 million, reflecting a 12% increase compared to the prior year. This dividend equates to €3.30 per share, illustrating VGP's commitment to returning capital to its shareholders while maintaining healthy growth trajectories.

Frequently Asked Questions

What was VGP's net profit for the fiscal year 2024?

VGP's net profit for fiscal year 2024 was €287 million, showing a remarkable increase.

How much new lease volume did VGP sign in 2024?

In 2024, VGP signed new and renewed leases amounting to €91.6 million.

What percentage growth did VGP see in its EBITDA?

VGP experienced a 57% growth in EBITDA for the fiscal year 2024.

How much land has VGP secured for future developments?

VGP secured a total of 8.7 million sqm of land for ongoing and future development projects.

What is VGP's proposed dividend for shareholders?

VGP proposed a dividend of €90 million or €3.30 per share for shareholders.

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