Earnings Release • May 13, 2011
Earnings Release
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UNDER EMBARGO UNTIL 13 MAY 2011 AT 17h00
Brussels 13 May 2011
In the first quarter of 2011 VGP achieved an increase of 19% of its gross rental income to EUR 6.9 million.
The increase is due to the continued impact of completed projects delivered during the financial year 2010 and the start up of new lease contracts for completed projects during the first quarter of 2011. VGP CZ I contributed € 4.6 million rent income during the quarter up until 16 March 2011 (compared to € 3.9 million for the same period in 2010).
| First quarter ending 31 March (In EUR million) | 2011 | 20101 | Variance |
|---|---|---|---|
| Gross rental income | 6.9 | 5.8 | +19% |
During the first quarter of 2011, the committed annualised rent income – including the 20% proportional VGP CZ I committed leases – increased to € 18.6 million (compared to € 18.4 million as at the end of 2010).
During the first quarter of 2011 the occupancy rate continued to improve reaching respectively 100% for the Czech portfolio (excluding VGP CZ I) and 98.2% for the whole Group (excluding VGP CZ I).
VGP recorded a strong demand for lettable space across all the mid-European markets in which VGP is active, especially fuelled by the car industry, medical and light assembly activities . The Group expects to be able to sign a number of important additional new lease contracts within the next few weeks.
1 The First Quarter Trading Update 2011 is the first quarter without the full consolidation of the VGP CZ I figures following the sale on 16 March 2011 of VGP CZ I to a 80/20 joint venture with AEW Europe. The comparative figures have been restated where relevant in order to ensure proper comparatives.
The signed lease agreements (excluding VGP CZ I) now represent a total of 258,611m² of lettable area.
The weighted average term of the committed leases as at 31 March 2011 stood at 6.15 years.
In the VGP CZ I joint venture the lease and development activities performed very well resulting in additional fee income and value creation for VGP.
VGP is actively working at further expanding its land bank in order to ensure that the development pipeline remains well filled.
VGP secured 2 additional plots of land (totalling 29,000m²) adjacent to the existing VGP Park Liberec on which a further 18,000m² of lettable area can be developed. Besides this a number of additional plots of land in different locations are under negotiation.
During the month of April 2011, 2 buildings representing in total 18,934m² of lettable area were delivered. One building in VGP Park Nyrany (13,014m²) and one building in VGP Park Liberec (5,920m²). Both buildings are 100% leased out and the lease agreements have an average lease term of 4.7 years.
Besides the completed buildings in April 2011, there are currently 6 projects under construction representing 60,250m² of lettable area. Most of these projects will be completed during the second and third quarter of 2011.
In addition to these buildings VGP will start up a number of additional buildings during the second quarter of 2011 totalling 53,400m² of future lettable area. These projects are located in the Czech Republic - 2 buildings of which one is the first building in our new VGP Park Tuchomerice (in total 13,500m²), Slovakia (9,900m²), Hungary (20,000m²) and the start up of the first building in Romania (10,000m²).
As advised by separate press releases, on 16 March 2011 European Property Investors Special Opportunities, L.P., a fund co-advised by AEW Europe and Tristan Capital Partners, entered into a 80:20 joint venture with VGP in respect of the VGP CZ I portfolio. This portfolio consists of 6 of 19 VGP parks i.e. Blue Park, Green Park, Green Tower, VGP Park Horní Počernice, VGP Park Turnov and VGP Park Příšovice.
The Extraordinary Shareholders' Meeting of 19 April 2011, approved to distribute part of the proceedings from the VGP CZ I transaction to its shareholders by means of a a capital reduction of € 39,953,557.50 in cash. This cash distribution corresponds to € 2.15 per share and will be paid in accordance with legal requirements at the beginning of July 2011.
E-mail: [email protected] E-mail: [email protected]
VGP (www.vgpparks.eu) constructs and develops high-end semi-industrial real estate and ancillary offices for its own account, which are subsequently rented out to reputable clients on long term lease contracts. VGP has an in-house team which manages all activities of the fully integrated business model: from identification and acquisition of land, to the conceptualisation and design of the project, the supervision of the construction works, contracts with potential tenants and the facility management of its own real estate portfolio.
VGP is quoted on Euronext Brussels and the Main Market of the Prague Stock Exchange. VGP owns a property portfolio of around EUR 187 million. The portfolio represents a total lettable area of over 230,000 m² as at 31 March 2011.
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