VGP (VGP) H2 2024 earnings summary

Executive summary

• Net profit reached €287 million, up 229% year-over-year, with strong growth across rental, development, and renewable energy segments.

• Net asset value increased 8.4% to €2.4 billion; EPRA NTA rose 7%.

• Annualised committed leases rose 17.6% to €412.6 million, with a record €91.6 million in new and renewed leases signed.

• Portfolio is nearly fully let, with occupancy at 98–99% and a weighted average lease term of eight years.

• Ordinary dividend proposed at €3.30 per share, up 12% to €90 million total.

Financial highlights

• EBITDA increased 57% year-over-year, driven by rental (€204.3 million), development (€144.8 million), and renewables (€5.4 million).

• Net valuation gains on investment properties totaled €187.1 million, mainly from JV transactions and disposals.

• Share of net profit from JVs and associates was €92.7 million, a significant turnaround from a prior year loss.

• Cash position at year-end was €493 million, with €500 million in undrawn credit facilities.

• Gearing ratio reduced to 33.6% (from 40.3%); proportional LTV at 48.3% (from 53.4%).

Outlook and guidance

• Expects substantial net rental income growth in 2025, supported by €39 million in new lease agreements and indexation.

• Targeting at least 600,000 sqm of development starts in 2025, with high pre-let ratios.

• Plans to expand land bank and explore investments in battery storage and data centers.

• Multiple significant closings with joint ventures anticipated in 2025.

• Near-term refinancing needs are covered by available cash and cash recycling.