VGP Reports Strong Half-Year Performance with Record Growth
VGP's Strong Performance During Half-Year
VGP NV has shared impressive financial results for the half-year period ending June 30. The Group, a notable European provider of logistics and semi-industrial real estate, has reported a pre-tax profit reaching € 208.6 million. This marks a remarkable growth of 35% compared to the same period last year. The financial highlights are reflective of robust operational performance, including significant revenue derived from net rental, renewable energy, and valuation gains.
Impressive Rental and Income Growth
VGP has achieved a milestone with signed and renewed lease agreements amounting to a record of € 56.1 million or 822,000 sqm during the first half of the year. This surge has contributed to an annualised rental income of € 441.3 million, showcasing a year-to-date increase of 7% and an impressive 14.7% organic growth year-over-year. Additionally, when evaluated on a look-through basis, net rental income experienced a rise of 16.4% compared to the previous year.
Development Projects Underway
As of June 30, VGP has a total of 846,000 sqm under construction through 36 projects. These developments are expected to generate an additional € 72.8 million in annual rent upon completion and leasing. Notably, over 325,000 sqm of projects commenced during the first half of the year, projected to yield € 29.2 million in rental income once operational. Furthermore, VGP's pre-let ratio stands at an impressive 76% for assets under construction, with projects exceeding six months already achieving an 80% pre-let status.
Deliverables and Sustainability Initiatives
In the first half of the year, VGP successfully delivered 11 projects, totaling 264,000 sqm, achieving a remarkable 96.3% occupancy rate. These projects are projected to provide € 17.6 million in rental income. Of the delivered assets, 49% have been certified as BREEAM Outstanding, emphasizing the Group's commitment to sustainability. Overall, completed assets now cover an impressive 6,244,000 sqm across 255 buildings, maintaining a high occupancy rate of 98% with an average age of just 4.5 years.
Strategic Land Acquisitions
VGP has made strategic moves in land acquisition, securing 633,000 sqm across various locations, including its first project in the United Kingdom. The total available land bank is now 9.7 million sqm, translating to a potential development capacity exceeding 4 million sqm and an estimated rental value of over € 256 million. This expansion positions VGP well within the competitive European market.
Solid Financial Position and Future Outlook
VGP's financial position remains robust, with the total investment property at share increasing by 8.3% to reach € 5.4 billion. The company has also significantly bolstered its gross renewables income by 71.5% year-over-year, totaling € 6.5 million. The installed renewable energy capacity rose from 143 MW to 177.3 MW, reflecting a 20% increase, while projects in the pipeline continue to grow substantially.
Building for the Future
With total assets surpassing the € 5 billion mark, VGP has also improved its liquidity with € 0.9 billion available. This financial strength is underscored by the recent issuance of bonds totaling € 576 million and proactive management of existing debt. During the first half of the year, VGP executed successful disposals, recycling € 35.6 million and paving the way for further transactions, with positive expectations for the remainder of the year.
Frequently Asked Questions
What were VGP's half-year profits for 2025?
VGP reported a pre-tax profit of € 208.6 million for the half-year ending June 30, 2025.
How much annual rental income did VGP achieve?
VGP achieved a total annualised rental income of € 441.3 million, reflecting significant growth.
What is VGP's pre-let ratio for its construction projects?
The pre-let ratio for projects under construction is currently at 76%.
What sustainability certifications have VGP’s projects achieved?
49% of VGP’s delivered assets are certified as BREEAM Outstanding, showcasing their commitment to sustainability.
What is VGP's total investment property value?
The total investment property value for VGP increased to € 5.4 billion, indicating strong market performance.
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